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One of the most influential books of my career is The Innovator’s Dilemma by Clay Christensen. I cannot recommend it enough for people in the technology or media sectors. It should affect how you think if you are an incumbent but also if you’re a startup. Let’s start with the incumbents position in a market.
For years, the prevailing narrative for innovation in supply chain has focused on the disruptors: Upstarts that enter the industry with new technologies and business models to displace incumbents. For these industries, digital enablers, rather than disruptors, constitute the next wave of supply chain innovation.
Incumbent human processes were cumbersome, laborious, costly, slow and demoralizing. We started with the easiest problem that technology could attempt to solve. LESSON: Technology solves silicon-intensive problems and humans solve judgment-intensive ones. Ultimately, a little bit of fear breeds innovation.
In the decade since the Great Recession, we have seen digital upstarts – taking advantage of disruptive technologies from AI to IoT – reshape the economy and the corporate pecking order. Conventional wisdom dictated that incumbents should focus their innovation efforts on R&D and growing their cash cows while investing in a few startups.
Innovator’s Dilemma – In his seminal book, “The Innovator’s Dilemma,&# Clay Christensen talks about why industry leaders almost always fail to act when “disruptive change&# enters their business. Incumbents can’t react. So why on Earth should Netflix split into two businesses?
Fintech startup Parafin innovatively tackles this challenge through its embedded finance infrastructure used by partners such as DoorDash, Amazon, and others. The technology-driven financing decisions benefit women and minorities who have experienced discrimination in the past when borrowing.
And let’s say this – they use zero technology today and I have yet to meet a single person who loves their self-storage provider. Innovation. Most customers won’t drive more than a few miles to a self storage unit making the incumbents essentially local retail businesses. And they have. Of course they are.
Others may call this dichotomy digital versus physical, the disruptor mindset versus the incumbent mindset, start-up world versus Fortune 500, or tech culture versus industrial culture. Amid the insistent drumbeat of digital transformation, those traditional, old-fashioned competencies are easily overlooked and underappreciated.
As I’ve explored web3 I’ve been forming a mental model of the major innovations powering this enormous wave of innovation. ” Internet hegemons have decimated entire spaces: social networks, advertising technology, video streaming and rental, paid email, infrastructure. Paying customers in “equity.”
Incumbents have lept onto advances in generative machine learning more aggressively than any trend in recent technology history. But generative ML differs because incumbents are pushing the envelope. Over the past decade, the most advanced machine learning systems have often been built inside the largest technology companies.
” If no major incumbent can acquire a smaller company for fear of antitrust, all the incumbents can breathe : they can decide to build an a competing product with less risk of being outmaneuvered. The other major technology companies are just as hamstrung.
They point out perceived market risks, they might question the management team’s experience, they might worry about regulatory risk or incumbent competitive powers. One such theme was “water conservation” and we morphed it into a broader theme of agriculture technology or “ag tech” for short.
The money fountain is sputtering just as the first real innovation in a decade roars into view. After half a generation of overhyped trivialities, Large Language Models have reminded us what real technological breakthroughs look like. Will selling AI tools to incumbents prove more valuable than “full-stack” competitive attacks?
Jake Jolis is a partner at Matrix Partners and invests in seed and Series A technology companies including marketplaces and software. We believed then, as we do now, that fintech represents one of the most exciting major innovation cycles of this decade. Jake Jolis. Contributor. Share on Twitter. More posts by this contributor.
(January 3, 2025) The New Jersey Commission on Science, Innovation and Technology (CSIT) awarded over $2.7 The funding will support pilot demonstration projects from startup companies creating technologies that mitigate the emission of greenhouse gases and other pollutants. In 2023, the NJEDA awarded more than $3.6
Enterprise Sales | Are health systems engaging with innovation right now? Enterprise Sales | Are health systems engaging with innovation right now? They are putting investments on innovation on hold to prioritize patient and workforce survival and stabilization. In short, health systems are very distracted right now.
Rebag , which buys, sells and trades luxury items like handbags and accessories, raised a $33 million Series E round following a year of technology development and category expansion. Gorra cites the company’s ability to triple its sourcing capabilities after launching its Clair AI and Clair Trade technology in 2020.
The key purpose of being end-to-end is to deliver an even better value proposition to consumers relative to incumbent alternatives. Incumbents in these industries are very large and entrenched, but they are legacy players, making them slow to adopt new technology.
“Challenger” startups in banking and insurance have upended their industries, and picked up significant business, by building more customer-friendly tools and services — more personalized, easier to access and usually competitively priced — than those typically provided by their bigger, incumbent rivals.
At GLC, he will address the rapid pace of change, innovation and disruption facing us all?and It’s not about technology and it’s not about business models, but it’s about us,” Brody continues. We’ll explore how organizations can harness the uncertainty they’re faced with and turn it into excitement, innovation and success.
The company’s aim is to enable space access at greatly reduced risk, cost, and environmental impact compared to incumbent solutions. The rocket will provide low-cost space access for science experiments, technology demonstrators, and academic payloads. The post SG’s Equatorial Space bags $1.5m
As generative AI captivates Startupland, startups will do what they have always done: integrate new technology to build transformative businesses. Incumbents have seized the moment with Microsoft, Adobe, & others integrating generative AI into their products quickest. What are these moats? More users means a better product.
Of course the VC is looking to have specificity in how you plan to spend the money you’re going to raise and plans that show a pie chart that says, “25% on marketing, 30% on technology and R&D, 20% on infrastructure, 25% on G&A” do not get funded. So it’s incumbent on you to know what a smart business plan and use of cash looks like.
Yet, technology adoption within the real estate community as a means to fundamentally disrupt how physical assets behave and how transactions occur was lagging up until the last couple of years. quickly making real estate technology one of the fastest growing venture asset classes. The connective thread here is the use of technology.
Hundreds of startups dot the landscape, and the amount of money being raised and spent on innovating around the country’s industrial heft is mind-boggling. His first startup was a successful casual, mostly mobile gaming outfit known as ELEX Technology. Innovations such as return insurance have also sped up customer adoption.
The technology industry is often thought of as being the domain of the young and the new. We see an emphasis on young founders (“40 Under 40”), innovative ideas and disruptive challenges to legacy brands, incumbent companies and “old” ways of thinking.
While many lament government regulation as an infringement on innovation, I believe increased scrutiny is a net positive for the future of the software industry. anti-competitive practices that stifled innovation, as was the case with AT&T, IBM, Microsoft and today’s tech titans) rather than how their software operated.
The company was founded in 2018 by Shamir Karkal, Angela Angelovska, Isaac Hines and Alex Lipton to simplify digital payments and storage in a regulatory compliant way and build on blockchain technology. We are here to ‘arm the rebels’ and help those innovators build applications to give all end users a much better financial experience.”.
When it comes to growing that proportion, however, m obile money — based on simpler technology and with an easier onboarding process — wins out, and it is set to capture more market share faster than traditional banking in the region. Neobanking, based on mobile technology too, falls somewhere in the middle of the two). .
For new entrants looking to take advantage of the advent of LLMs and disrupt the status quo by going upstream of these incumbents, we’ve done a deep dive into Bloomberg, Morningstar, and Verisk’s stories. In doing so, each built the beginnings of what are now category-defining businesses.
But it pivoted within the last several years to general-purpose computing as well as generative AI technologies, like text-generating AI models. ” It’s tough for any cloud provider to compete with the incumbents in the space — i.e., Google, Amazon and Microsoft. . For perspective, AWS made $80.1 billion and $26.28
Fintech startup Parafin innovatively tackles this challenge through its embedded finance infrastructure used by partners such as DoorDash, Amazon, and others. The technology-driven financing decisions benefit women and minorities who have experienced discrimination in the past when borrowing.
With massive annual technology budgets and scaled distribution, the largest FIs are the ideal end-buyers. This is because FIs have long relied on painstaking manual operational processes to accomplish their goals, eschewing technology for human labor.
This time it’s $35 million with new investors, including Citi Ventures and MUFG Innovation Partners, bringing the company’s total raised so far to $95 million. Co-founder and chairman Samuel Rhee told TechCrunch that Endowus is now “multiple times the size of the next player and now competing with large banks and incumbent players.”
What separates successful entrepreneurs from the failing masses is the use of innovation to reduce risk and decrease the odds of failure. Innovation is how new ideas, solutions, methods and products make it into the world; and innovation is most successful when it solves existing customer problems.
Larger banks and other financial service providers are getting a lot more serious when it comes to competing with upstarts that are disrupting their businesses with fresher approaches and newer technologies. The funds — coming from a single investor, Motive Partners — values Backbase at €2.5 billion ($2.6 billion).
And that really provided us with this advantage to quickly innovate and drive a ton of product velocity.”. For his part, Valar Ventures’ Andrew McCormack said that financial services companies can “leverage whatever technologies they want to provide better customer experiences.”. “At
This requires more sophisticated technology. We look forward to supporting new exciting protocols and projects, empowering innovative corporate use cases, and adding additional (decentralized) financial products and services to our platform.”. Institutions need to keep their crypto assets somewhere.
The Israeli startup provides software-based internet routing solutions to service providers to run them as virtualized services over “ white box ” generic architecture, and today it is announcing $262 million in equity funding to continue expanding its technology, its geographical footprint, and its business development.
For an industry that constantly innovates, evolves and adapts, the reticence to embrace automation is frustrating, but ultimately, unsurprising. As incumbent banks embraced startups, investors leaned into novel ways to reduce friction and improve accuracy, increasing annual mortgage origination by nearly 40% compared to the last decade.
Positioning the product (with the enterprise buyer in mind) Frame the problem you’re trying to solve In a recent conversation with Daniel Barchi, CIO of CommonSpirit Health, he compared AI software purchasing to buying a car with lane assist technology. In other words, buyers aren’t seeking AI for AI’s sake.
Incumbent client/server technologies have lost their market dominance to new incumbents. As the number of new startups ebbs, and major forces in the industry reshape it, I suspect we’re going to see a massive amount of innovation in SaaS, a reinvention after the perfection of a 20 year old playbook.
In another example of how startups in the region are working to boost inclusion as much as innovation, Open Co , a São Paulo-based consumer credit company, announced today that it has raised $115 million in a round led by SoftBank Latin America Fund. Existing backers Raiz Investimentos, IFC and LTS also put money in the round. .
Challenger banks continue to make significant waves in the world of finance, with smaller outfits luring customers away from incumbents by providing an easier way for them to not only engage with basic banking services, but to tap into a wave of technology that brings more personalization and often better deals into the equation.
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