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July18,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
Key Takeaways from Day One of Fortune Brainstorm TECH 2017
FungGlobalRetail&TechnologyisattendingFortuneBrainstormTECH2017inAspen,Coloradothisweek.Theeventseekstodiscussthemyriadofwaysthatcompaniesaretryingtoprepareforthefuture,includingproducts,processesand/orservices.ThepanelistsarecomprisedofFortune500leaders,emergingentrepreneursandfinanciers.
Topicsandspeakersofdayoneincludeddata,robotsandself-drivingcars,techgiantssuchasDellandQualcomm,Chinabicycle-sharingcompanyMobike,andInternetcompaniesPricelineandInstagram.
Belowareselectedtakeawaysfromdayoneoftheevent.
1) Astheinventionoftheinternal-combustionvehicleenabledtheautomobiletoreplacethehorseandbuggy,autonomousvehicleswillrequireanewtransportationparadigm.
2) Whileanuprisingofrobotsisunlikely,theywillbecreatedtoassisthumansintaskstheycannotperformwell,suchasheavyliftingandrepetitivetasks.
3) InternetcompaniessuchasInstagramandPricelinehaveevolvedbeyondtheirinitialmissionsthroughpersistence,luckandkeyacquisitions.
4) BicyclesharingisexplodinginChinaandaroundtheworld;InChina,MobikerentsthreetimesasmanybicyclesadayasUberprovidesrides.
5) Qualcommexpectstomovebeyondtoday’slawsuitstoprovidetheenablingofbasictechnologyfordriverlesscars,theInternetofThings(IoT)aswellasmanynewapplicationsrequiringmobility.
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July18,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
AboutFortuneBrainstormTECH2017FungGlobalRetail&TechnologyisattendingFortuneBrainstormTECH2017inAspen,Coloradothisweek.Theeventseekstodiscussthemyriadofwaysthatcompaniesaretryingtoprepareforthefuture,includingproducts,processesand/orservices.ThepanelistsarecomprisedofFortune500leaders,emergingentrepreneursandfinanciers.
Selectedtakeawaysfromdayoneoftheeventfollow.
1) AutonomousVehiclesRequireaNewTransportationParadigmAsautomobilesrequiredreinventingthetransportationecosystemtoreplacethehorseandbuggy,thesamewillbetruefordriverlesscars.Automobilescanbeconsideredpersonaltransportationdevices,however,therearesomestartupsthataredisruptingthatidea:robo-taxistartupZooxisdevelopingshared,on-demand,zero-emissionmobilityvehicles;andCruise,acquiredbyGeneralMotors,istestingdriverlesscarsandexpectstomoveuptheranksintermsofthehumaninterventionrequired(i.e.,humandisengagement).Therearenumerouspartnershipsandcooperationsunderway,andautonomousvehicleswillconstantlycollectdatainordertoimprove.Therearealsocertainregulatoryquestionsthatneedtobeanswered—i.e.,doesadriverlesscarneedadriver’slicense,canitcrossstatelinesandothers.Datasharingondriverlesscarswillalsobetricky.
2) RobotsAreUnlikelytoRiseAgainstUsfortheForeseeableFutureDespiteconcernsthatrobotsaregoingtotakeawayjobs,anexpertfromGoogle’sNestbelievesweshoulddesignthemtodojobsthathumanscannotperformwellsuchasperformingrepetitivetasksandliftingheavyloads.Robotsperformthefollowingactions:sensing,thinking,takingaction,eveniftheydonotmove(likeanintelligentthermostat).Whilenoteverycustomerisseriousaboutsavingenergy,Nestthermometershavealreadysavedenoughenergytopoweralargecity.Thetalkonrobotsconcludedwithadiscussionofthechallengesoftransitioningfromacademicresearchtodevelopingproductsforhumans.YokyMatsuoka,NestLabSource:FungGlobalRetail&Technology
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July18,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
3) DellIsBenefitingfromGoingPrivateinBeingAbletoInvestfortheLongTermCompaniesarefacingfourtransformations—digital,IT,workforceandsecurity—andthenewDellTechnologiesbelievesthatitisthebest-positionedcompanytofillthoseneeds.Inaddition,publiccompaniesfacefrequentmanagementchangesandthepressureofquarterlyearningsreporting,whichmakesitdifficulttoinvestforthelongterm.Dell,asaprivatecompany,isabletomaketheseinvestments.Goingprivateappearstohavepaidoff,asthecompanytookin$1billionmorerevenuethanplannedinthemostrecentearningsperiod.Companieslooktopurchasefromanumberofvendors,whileDellseekstoselltheentirepackage.ManyofthecompaniesattheconferenceareDellcustomers.ThenewDell—termedDell2.0—wasabletomakeariskyandgutsymovetocombinethetwocompanies(DellandEMC).
MichaelDell,CEOofDellTechnologiesSource:FungGlobalRetail&Technology
4) InstagramContinuestoEvolve,IncludingOpeningtoBusinessesInstagramCOOMarneLevineoutlinedInstagram’smission:tostrengthenrelationships.ShefurtherdiscussedmajorchangesthathavetakenplaceatInstagramsinceherarrival,includingchangestothefeed,Instagramstories,videoandlive(whichallowspeopletohangouttogether),andthedifficultyinmakingthesechanges.Shesharedherbeliefthatsuccessfulcompanieschangeeverytwoyears.Instagramnowhasmorethan700millioninitscommunity,80%ofwhichareoutsideoftheUS.Currently,250millionpeopleuseInstagramstoresonadailybasis,connectingpeopleandbusinesseswithsharedinterests.Some80%ofthecommunityconnectstoabusinessvoluntarily.SinceitwasacquiredbyFacebookin2012,Instagramhasgainedaccesstoitstalent,technologyandauserbaseof2billionusers,whichhasaccelerateditsgrowth.Thecompanynowhas1millionadvertisers,infeedandstories,usingthefullscreenandvideo.One-thirdofthemost-viewedstorescomefrombusinesses,indicatinguserinterest.OneinfiveminutesonamobilephoneintheUSisspentonFacebookorInstagram.LevinefurtherprovidedexamplesofInstagramusedbybusinessesaroundtheworld.
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July18,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
5) MobikeHasExperiencedExplosiveGrowth,ProvidingThreeTimestheNumberofDailyRidesProvidedbyUber
BikesharinghasexistedintheUSsince2005,however,AmericansareunlikelytobefamiliarwithbikesharinginChina,wherebike-sharingenterpriseshavesprunguplikemushroomsaftertherain,includingMobike.MobikeCEODavisWangprovidedthebackgroundofhiscompanywhichislookingtosolvetwosocialproblems:congestionandairquality,andthesolutionisbicycles.Mobikeisthefusionofmobileandbicycle.Inmanycities,dockshadbeenanimpedimenttobicyclerental.MobikewaslaunchedinShanghaionEarthDay2016andhas:100millionregisteredusers,6millionconnectedbikesand20millionridesaday,threetimesthenumberofridesprovidedbyUber.Mobiketransportsmorethan20millionpeopleaday,notonlyinChina,butinSingapore,ManchesterandseveralcitiesinJapan.Thecompanyaimstobein200citiesbytheendofthisyear.WangenvisionsMobikebeingmorelikeasmartphonethatcanbeusedanytime,anywhere,charging$0.15per30minutes,lessthanthecostofasubwayride.
DavisWang,CEOofMobikeSource:FungGlobalRetail&Technology
6) PricelineReinventedItselfthroughPersistenceandSuccessfulAcquisitionsItseemswehavenotheardmuchaboutPricelinesincetheWeb1.0andtheTVadsfeaturingWilliamShatner.Thecompanyhasinfactgoneglobalandbenefitedfrompureserendipity.SomecompetitorsmademistakesfromwhichPricelinehasbenefited.ThecompanyhasalsobenefitedfromtheacquisitionsofOpenTable,Kayak,Rentalcars.comandAgodainAsia.CEOGlennFogelleftMorganStanleytoworkfortheoriginalPriceline.“Nameyourownprice”isnowcalledExpressDeals;themajorityofcompanyrevenuesarefromBooking.com.Althoughnameyourownpricewassuccessful,itturnedoutthatconsumersliketobooktheirowntravel,and,whileBooking.comhasgrowntobecometheworld’slargestonlinetravelcompany,itisnotyetnumberoneintheUS,ChinaandJapan,whichFogelconsidersagrowthopportunity.Opportunitiesincludepeoplewhoprefertostayinhomesandapartments,ratherthanhotels,with7,000propertiesworldwide.FogelbelievesthatunlessonetravelstoChina,itishardtounderstandhowfastthingsarechangingandhowinnovativetheyarethere.Tothisend,
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July18,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
Pricelineisfollowingathree-prongedstrategyfortheChinamarket:1)provideChinesehotels;2)serveoutboundChinesetourists;and3)catertodomesticChinaforChina.
GlennFogel,CEOofPricelineSource:FungGlobalRetail&Technology
7) TheCurrentSpateofLawsuitsIsLikelytoBlowOver,EnablingIoTtoFlourishWhenaskedaboutthecurrentswirloflitigationwithApple,QualcommCEOSteveMollenkopfoutlinedthecurrentissuessurroundinghiscompanyandthesignificantinvestmentsithasmadetoprovidethemobilitywehavetoday.Inreality,hearguedthatQualcommcustomerswanttopaylessthanspecifiedbythecontractssigned.HecommentedthatQualcommtriedtoinventthecorefundamentaltechnologiesthatenabletheindustrytogrow,forexample,workingonalow-powerconnectedcomputerinthelate1990s,whichwasthoughttobenotimportantatthetime.Today,Qualcommisworkingtomaketechnologyprevalentformoreindustries,i.e.,theIoT.Qualcommclaimsthatitinventsthetechnology,sharesitwithpartnersandenablestheindustrytogrow.Thetypesofdisputesitisembroiledinhavehappenedinthepastandweresettled,whichislikelytohappenagain.Self-drivingcarsarelikelytoneedcommunicationchips,incontrasttoconnectedbicycles.FromQualcomm’sperspective,thedevelopingthetechnologyforself-drivingcarsistheeasypart,thedifficultpartishowtheyputthetechnologytogetherinawaythatiseasyfortheautoindustrytoselltotheconsumer.
SteveMollenkopf,CEOofQualcommSource:FungGlobalRetail&Technology
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July18,2017
DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.
DeborahWeinswig,CPAManagingDirectorFungGlobalRetail&TechnologyNewYork:917.655.6790HongKong:852.6119.1779China:[email protected],CFASeniorAnalyst
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