Markets have been constantly evolving from pre-internet era of viscous state through fluid state over last decade with internet democratized access to information, reducing buyer-seller information asymmetry. Digital Revolutions with the advent of AI, Blockchain, Robotics, AR/VR, and hyper connected driven IoT technologies are forcing companies to functioning in a state of super fluidity in recent times.
Fortune 1000 organizations and VC backed startups are applying AI, ML, AR/VR, Blockchain and IoT to empower enterprises to make intelligent decisions, prioritizing and driving next-gen innovations improving the success rates. As an enthusiast envisioning the success of superfluid markets and with know-how of recent technology developments, I would like to summarize below the driving forces of Digital Revolutions
- Key characteristics of Digital Revolutions: As businesses are trying to become intelligent enterprises with real times responses, there is an increasing demand for dematerializing their physical assets with digital touchpoints. In these times, business operations, supply chain, supporting infrastructure and technology, and enormous volumes of data becomes software driven making enterprises become hyper connected seamlessly and derive proactive insights. This is leading to Digital Revolutions offering a rich user/consumer experiences.
- Blockchain and IoT are expediting the pace of Digital Revolutions: We have now entered the age of superfluid markets, which represents the convergence of multiple forces. While many transaction costs were reduced during the fluid market period, costs around contracting, trust and the policing and enforcing of contracts remained high. The maturation of blockchain technology as a transaction engine in which trust is “built in” will reduce even these costs. With the Internet of Things, physical goods are being sensed, tagged and linked to the Internet, with the promise to better match supply and demand. Intelligent agents will soon anticipate buyer preferences before buyers themselves. The intersection of blockchain and IoT will create autonomous markets that run themselves cheaply and efficiently. The gig economy implies increasingly superfluid labor markets. And these developments may just represent the tip of the iceberg. Examples include,
- Blockchain potentiality to offer intrinsic business value in integrated utilities management with a reliable, low-cost way for recording validating financial or operational transactions across a distributed network with no central point of authority. Peer-to-peer energy trading, Billing of AV charging stations, Power Ledger and Smart grid management systems are few use cases.
- 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.
- Robotics and Bots are first steps of organization in taking advantages of Digital Revolutions: 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.
- Artificial Intelligence and Machine Learning are big boost to Digital Revolutions: AI combine with machine learning is paving ways to new business models. AI technologies already pervade human lives progressing beyond simply building systems that are intelligent to building intelligent systems that are human-aware and trustworthy.
- AR/VR is becoming a driving force of Digital Revolutions. Let us take examples of retail industry transformation. 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
Digital Revolutions are leading to superfluid markets which will continue to evolve differently across different industries and companies. These transformations are what we continue to explore into future. There is a pressing need for companies to collaborate exchanging ideas, trend spotting, and tap innovations to succeed in future frictionless markets.