Four big ideas are driving our perspective. First of all is the continuous and accelerated reduction of transaction costs in the market. This reduction enables the development of more granular and dynamic market for any type of services and goods. It also enables an even faster spread of competitive business models and therefore create increased and accelerating global competition. Finally, in order to succeed in a more efficient global market place, the development of ecosystems is paramount for long-term success.
Reduction of transactions costs
Firms exists because of transaction costs, which limit the efficiency of markets (Ronald Coase 1937; Nobel prize winner). Technology and in particular digitalization is reducing transaction costs and allows more efficient markets, which in turn has disruptive impact on whole industries. Amazon, Alibaba, Uber, and many others are just examples of a larger fundamental trend.
More granular and dynamic markets
Diminishing costs of creating, transferring and analyzing data allows the creation of more granular and dynamic market structures. Micro and specific use transactions (e.g. locational, time-of-use) are now possible to analyze and can be efficiently transacted. This enables new business model and the need for sophisticated data analytics. Decisions are getting quantified.
More granular and dynamic markets
Diminishing costs of creating, transferring and analyzing data allows the creation of more granular and dynamic market structures. Micro and specific use transactions (e.g. locational, time-of-use) are now possible to analyze and can be efficiently transacted. This enables new business model and the need for sophisticated data analytics. Decisions are getting quantified.
Global and accelerating competition
Successful business models are spreading faster and developments in logistics and connectivity increase global competition. As locational barriers diminish, there are increasingly few global winners in certain sectors. Only the most competitive and innovative companies will succeed increasing stress on less efficient companies but also open high growth opportunities for others.
Power of ecosystems
Speed and complexity requires firm to develop complex ecosystems between customers and suppliers (or supply customers). Technology acceleration creates the need but also enables the opportunity for efficient partnerships.
Power of ecosystems
Speed and complexity requires firm to develop complex ecosystems between customers and suppliers (or supply customers). Technology acceleration creates the need but also enables the opportunity for efficient partnerships.