presented byGregory L. LaFollette, CPA.CITP, CGMAStrategic Advisor
Disruptive Technologies Catch the Wave
Gregory L. LaFollette, CPA, CITP, CGMA
Semi-retired Vice President of product strategy – CPA2BizNow “Strategic Advisor”
Author, Speaker, Thought-leader, Accounting Technology Hall of Fame MemberPrior
• Eide Bailly, LLP – Senior Manager, Tax and Technology Consulting • LaFollette Consulting, LLP -- Consultant to the industry
• The CPA Practice Advisor -- Executive Editor• Thomson Reuters (Creative Solutions) – VP - Product Strategy • LaFollette, Jansa, Brandt & Co. , LLP -- Tax & Technology partner
• AICPA Committees• CITP Credential Committee – Chair (7 years; Member 4, Chair 3)• Journal of Accountancy – Technology Advisory Board• TECH+/Practitioners Conference -- Planning Committee (6 years)• National Accreditation Commission – ad hoc (3 years)• National Tax Education Program (AICPA/UI) -- Graduate and former Staff
Lecturer (12 years)• Top 10 Technology Initiatives -- Review Committee (5 years)• Microcomputer Advisory Services Committee (3 years)
Who We Are
Disruption & CPA’s
Significant Areas of Change
Agenda
Who we Are
About CPA2Biz
AICPA subsidiary, Formed in 2001
Markets all AICPA products and services, manages AICPA affinity programs,
manages AICPA web properties and leads key AICPA technology initiatives
AICPA Store (www.cpa2biz.com) is ranked by Internet Retailer as one of the
Top 500 e-commerce sites in the US.
Built one of the leading distribution channels to the profession through its
Trusted Business Advisor Solutions program—a portfolio of web-based
solutions, training, resources, and alliance programs transforming the CPA-
client relationship.
Headquartered in New York, NY with technology and engineering offices in
Santa Clara, CA, sales office in Dexter, MI, and service and support offices in
Durham, NC.
Overarching Principle
We are the leader in guiding the profession’s migration to the cloud through change management, business process education and product and service curation.
Templosion
“the implosion of everything into compressed time”
tem·plo·sion [tem-sploh-zhuhn] noun
It’s a TEMPLOSION
“It’s a VUCA world – Volatile, Uncertain, Complex, and Ambiguous … the answer to rapid changes and hyper-competition is a bold vision and core values; maintaining values that don’t change while constantly re-inventing the shorter term strategy.”
Tom Hood, CPA.CITP
Ex. Dir – Maryland CPA Society
“I like Tom Hood’s VUCA to define the paradox. Rapid, short-term change and long-term leadership ideas and goals simply don’t mesh well.”
Hubert Glover
Author: The Making of the Twenty-First-Century Leader
It’s a TEMPLOSION
“It’s a VUCA world – Volatile, Uncertain, Complex, and Ambiguous … the answer to rapid changes and hyper-competition is a bold vision and core values; maintaining values that don’t change while constantly re-inventing the shorter term strategy.”
Tom Hood, CPA.CITP
Ex. Dir – Maryland CPA Society
“I like Tom Hood’s VUCA term to define the paradox. Rapid, short-term change and long-term leadership ideas and goals simply don’t mesh well.”
Hubert Glover
Author: The Making of the Twenty-First-Century Leader
A Note on Predictions
“It's tough to make predictions, especially about the future.” ― Yogi Berra
Current Vantage Point
Our near term view is
always unclear.
• “Inside the Tornado”
• “Tipping Point”,
• “Crossing the Chasm”
My overlay from 1993
Disintermediation
Disintermediation
Removing the middleman -- a popular buzzword used to describe how Internet-based businesses are using cloud and mobile technologies to reach customers. These companies provide products and services cheaper and faster. These technologies are revolutionizing the way products and services are bought and sold, and disintermediation is the driving force behind this revolution.
Trends to Discuss
Some Trends to Discuss
1. Cloud Storage
2. Broadcast TV / Cable TV
3. 3D Printing
4. Peer-to-peer lending
5. Restaurants
6. Hotels / lodging
7. Cars
Cloud Storage
Dropbox™What It Is: Online document, image, and video storage
What It Does:Lets you bring your photos, docs, and videos anywhere and share them easily.
Dropbox™How You Might Use It: • Store important documents
online for easy access.• Collaborate with others for
edits and updates.• Share private documents.• Store and view property
photos.
Dropbox
Dropbox
All Files
Some Files
Dropbox™Learn more: www.dropbox.com
Platforms: iPhone®, iPad ®,
Android™, Blackberry®, Kindle Fire®
A Note on Multi-factor Authentication and Passwords
Multi-factor authentication
Who you are (biometrics)
What you know (user ID, passwords)
What you have (dongle / phone)
To enable Dropbox two-step verification
1. Click Settings > Security tab
2. Account > Two-step verification > Enable
3. Enable two-step verification
4. For security reasons, you'll be asked to re-enter your password. Then you'll be given the choice to receive your security code by text message or to use a mobile app.
5. After enabling the feature, consider adding a second phone number as well. If you ever lose your primary phone, you'll be able to receive a backup security code to that number instead.
Password Technique
• Select and memorize an 8 character nonsense string including upper and lower case letters, numerals, and symbols.• Example: qh^64Tp%
• Select 2 “spots” within that string (example: # 3 and #7)• Example: qhX^64XTp%
• Select 2 “spots” within the name of the website or service you’re registering (example: # 1 and # 3)• Example 1: wellsfargo.com = wellsFargo• Example 2: cchgroup.com = cchgroup
• Insert the website characters into your password• Example 1: qhw^64lTp%• Example 2: qhc^64hTp%
One password that’s the SAME for you, yet different for every site
/ service you use!
Result
Password Management Tools
• Keeper• Dashlane• LastPass• oneSafe• SplashID Safe• Norton Identity Safe• Password Genie• Roboform• Ilium eWallet
Television
Say Good-bye to Cable TV
Barry Diller’s Aereo TV
Barry Diller’s Aereo TV
$8 / month for CBS, NBC, ABC, FOX, PBS>150,000 subscribers in NYC
Sold out in AtlantaDirectly to Supreme Court on April 22
• First in was all fun and games• Then it started to get serious• Graphene will take it to the next level• Already printing houses -- Contour Craftings prints
2,500 Square-Foot-Homes in 20 hours• And some airplane parts!
3D Printing
Graphene
• Graphene is amazing!• Made from a layer of carbon one-atom thick• Strongest material in the world• Completely flexible • More conductive than copper• Desalinizes sea water WHILE generating electricity!• Will eventually replace silicon
MakerBot
Replicator Mini -- $1,375 $949
XYZprinting
Davinci 1 -- $499
Forecast World wide sales > 2.2M
Projections for 3D Printing
• Significant patent expirations in mid-2014• Chinese manufacturers involved• Technology has reached “tipping point”• Compare to laser printers • HP 2 sold for $3,995 in 1985
• Now available for >$100 (overpriced ink)
• 3D printers sold for $14,000 only 5 years ago• Now available for >$400 (overpriced material @ ~$25 per pound)
• Explosive growth from here on out• How does this impact YOUR clients?
Peer Lending Technology is the easy part
• Kiva (non-profit)• > 1 million lenders• > $500,000,000 in loans• 99.01% Repayment rate
• KickStarter (friends and family)• Regulation and litigation
• Prosper (Wells Fargo execs)• >$1 billion in loan originations to date
• LendingClub (technology execs)• Loans being funded @ > $250M / month• Interest paid to investors: ~$500M to date
• Kabbage (technology & banking)• Direct ties to cloud-based accounting platforms
Crowdfunding Grows Up
• 2012’s JOBS Act, allows companies to raise up to $1 million in a 12-month period
• From “accredited investors” • Income over $200,000 (single) or $300,000 (joint) per year • or net worth over $1 million• An executive or director of the company
• Under $100,000 requires two years of financial statements, certified by the principal executive, and its most recent tax return.
• From $100,000 to $500,000 the statements must be reviewed by a CPA.
• Over $500,000 must have audited statements
What it means
• Role of banks?• Role of CPA’s as credit advisors?• Financial statements?• Benchmarking and analysis?• Personal investments?
Disruptive Technologies
Transparency
Provider
CustomerTechnology
Disruptive Technologies
GrubHub / Seamless®
What It Is: Food delivery service
What It Does:Aggregates menus of restaurants that provide delivery service to your specific location. Automates ordering and payment functions.
How You Might Use It: • Order food delivery at your
home, office, or hotel.• See each restaurants’ menu
and customer ratings.• Limits errors in ordering,
address, etc.• Centralizes credit card
payment so there’s no more fumbling at delivery time.
GrubHub / Seamless®
Learn more: www.seamless.com
Platforms: iPhone®, iPad®, Windows®, Android ™, Web app
Cost: Free
GrubHub / Seamless®
25,000 participating restaurants130,000 meals per day3% rake
DISRUPTION:
Sit-down restaurants
OPPORTUNITY:
Del-co food outletsServices for “nesters”
GrubHub / Seamless®
AirBnB®
What It Is: Short term room rental founded in 2008 as “couch surfing”
What It Does:Provides intermediary service between “hosted” apartments, rooms, B & B’s, etc. and patrons wishing to rent them.
AirBnB®
Current VC value!
How You Might Use It: • Host extra space, vacation
home, apartments, etc.• Rent space almost anywhere
in the world.• See each property’s photos
and customer ratings.• Limits errors in reservations
dates, address, etc.• Centralizes credit card
payment so there’s no more fumbling at arrival time.
AirBnB®
Learn more: www.airbnb.com
Platforms: iPhone®, iPad®, Blackberry®, Windows®, Android ™, Web app
Cost: Free
AirBnB®
AirBnB®
DISRUPTION:
Traditional hoteliersMunicipal tax collectors
OPPORTUNITY:
Micro-landlordsTravelers
Cars
So what changes?
• First – rental cars• Started with ZipCar – sold to Avis/Budget• Then GroundLink for limos• Now the taxi and limo business• Next – autonomous cars
Uber®
What It Is: Car and taxi service
What It Does:Provides intermediary service between car and taxi owners / operators and patrons wishing to utilize them.
Why Use It: • Almost-on-demand black car or
taxi service.• Cheaper than traditional black
car service.• See each car’s exact location
description and customer rating.• Limits errors in timing, address,
etc.• Centralizes credit card payment
so there’s no more fumbling at drop-off time.
Uber®
Learn more: www.uber.com
Platforms: iPhone®, iPad®, Blackberry®, Windows®, Android ™
Cost: Free
Uber®
And here comes the competition!
Uber®
DISRUPTION:Existing taxi / limo companiesMunicipal tax collectors
OPPORTUNITY:Part time drivers (Google financed)
TravelersDelivery services
LONG-TERM IMPACTNumber of cars requiredParking lotsAutonomous cars?
Enter Google
Driverless Cars
• We already have “assisted” driving• Auto parking• Lane monitoring• Adaptive cruise• Emergency braking
• Autonomous cars in our lifetime?
• BMW• Audi• GM• Ford• Mercedes Benz
• Volvo• Nissan• Ford• Chrysler• Hyundai
• Nevada, California, Florida, Michigan and Washington DC now allow licensing and operating autonomous vehicles on public roads.
• Google Ventures just make its largest investment ever -- $285M in Uber (valuing Uber at $3.75B)
• Google says its designing Its own self-driving car for use as a ‘Robo Taxi’
• Technology is the easy part• Legislation and litigation are challenges
Driverless Cars
1. Technology enables massive competition
2. Centralized regulation disappears
3. Fewer cars?
4. Fewer parking lots
5. Less congestion
6. Better safety
7. More productive time
So what changes?
8. Cost of trucking falls – logistics become cheaper
9. Fewer hotels?
10.Fewer full time jobs / more part time?
11.On demand delivery becomes standard – fewer bicycle messengers
12.Surge availability
Thank You!!!