Digital forces like AI, Machine Learning, IoT, Robotics, VR/AR, Blockchain etc. are reimagining business models transforming goods, services and labor markets at unprecedented pace enabling the superfluidity of the markets. Two fundamental characteristics of superfluid markets are shrinking lead times making the interactions seamless and near realtime, and second is extreme focus on cost-to-value ratio. I will discuss the evolving nature of markets with few use cases below.
1) Goods and Services in Superfluid Markets:
i) Artificial Intelligence and Machine Learning: AI combine with machine learning is paving ways to new business models for example, changing the landscape of online ads by connecting shoppers to goods using images. Take a look at an AI platform called The Discover Machine, created by the startup Z Advanced Computing (ZAC). This new machine learning backed platform is changing the landscape of online ads. ZAC claims to offer something unique by producing online ads generated through images, not text. The machine-learning platform can be applied to searches from shoppers that will lead to the product on a merchant’s website, or to serve merchants by generating targeted visual ads based on a customer’s browsing history. The intended users of the platform include shoppers, merchants, and bloggers or other publishers.
ii) Internet of Things (IoT): As the Internet of Things (IoT) continues to grow and drive a more connected world, it is changing the way we live, shop and pay by moving data and the point-of-sale to wherever the consumer wants it to be. Take a peek at Visa’s IoT platform designed to bring the point-of-sale everywhere by allowing businesses to introduce secure payment experiences quickly to any device connected to the IoT. Visa’s vision and belief is to securely embed payments and commerce into any device—from a watch to a ring to an appliance or a car. Experts estimate there will be 380 million connected cars by 2021. Visa is working with a number of car manufacturers (and other companies from across the car ecosystem) to build and test prototypes for car-based payments. By connecting the car ecosystem to the Watson IoT Platform and enabling the car with secure payment functionality, imagining the many possibilities becomes easy. Drivers could be alerted when their smog certification is about to expire or if a specific car part needs replacing, responding by either scheduling a service appointment or ordering the part that has the combined lowest cost and fastest shipping time. The range of other options is virtually limitless, extending to insurance offerings, paying for gas without a physical card or zipping through the drive-thru that much faster because the payment part of the transaction no longer exists.
iii) Robotics are emerging to pick up precision heavy activities and “bots” leveraging AI is taking customer service and experience to the next level. Take a look at inVia that is introducing “robotics-as-a-service” to the new economy with first “goods-to-box” warehouse packing system. This new robotics system that put goods directly into shipping boxes. Instead of investing in a fleet of robots, customers pay a monthly service fee.
iv) AR/VR in a classic example driving superfluidity is transforming the retail industry. Virtual reality (VR), along with its sister technology augmented reality (AR), offers retailers the opportunity to transform how people shop. One customer might try on shirts without having to travel to the store. Another might order furniture on the spot, confident that it’s right for the house. Applications using either technology stand to eliminate customer pain points, elevate customer service, and create a differentiated, personalized customer experience. The successful incorporation of VR and AR into retail models also has the potential to vastly change the way retailers are thinking about stores of the future
2) Labor Markets:
“On-demand and online talent platform” is a new labor model in the connected digital age. As per multiple surveys 1B+ people are unemployed in Developed & BRIC nations. According to McKinsey, online talent platforms serve as clearinghouses that can inject new momentum into job markets. By 2025, they could add $2.7 trillion, or 2.0 percent, to global GDP and increase employment by 72 million full-time-equivalent positions. Global companies are rethinking their talent strategies to tap Connected Transparent Talent Pool.