Thought Starters provides me with a chance to review the research and opinions that I’ve read over the last week or so. This edition looks at the evolving worlds of mobile messaging and television, the increasing pace of innovation and profiles of network effects, intergenerational equity, Israel, Denmark and Brazil among other things.
Tomaž Štolfa reports on the evolution of the messaging formats, from IRC through to the movement to richer model we have today which goes well beyond acting as a means of basic peer to peer communication:
Each message has the potential to be a mini application. It might be just an application that displays text, a photo, or alternatively presents an interface for something more complex in the constrained environment of a message cell. There is an unlimited set of opportunities to create bite size applications like a photo carousel, media players, mini games, inventory items, in-messaging payments, and many others.
Snapchat has emerged as one of the break out winners in the mobile messaging space although monetisation has definitely trailed far behind user growth. Mark Suster argues that Snapchat’s reach, immediacy, authenticity, engagement, geography, brand recall and monetisation point to it being a channel you’ll see a whole lot more of in months and years to come.
Matthew Ball and Tal Shachar do some crystal ball gazing for the television and online video sector and positing three different business models (scale feed; social feed; and identity feeds) that are likely to provide significant business models in the future:
The end of traditional television has begun. That much is clear. And even if authentication is figured out, TV Everywhere isn’t the answer. The future of video will look, behave, be valued and interacted with very differently than it has in the past. It won’t just be a digital adaption of linear, and it won’t just be more Netflixes.
CB Insights’ Corporate Innovation Trends provides a window into why there’s so much incessant talk about disruption. Various technologies and business strategies are making it much easier to launch a startup:
At the other end of the scale, companies are finding their moment in the spotlight shrinking with firms on average spending less time in the S&P 500 Index:
Before you put all your life savings behind a high growth startup, it’s worth repeating that 92% of tech startups fail. There’s no secret ingredient for successful startups but a recent presentation from Andreessen Horowitz focuses on the role of network effects, contrasting it with economies of scale and virality which it is sometimes confused with:
Ross Baird and Lenny Mendonca call for business models that address the financial and geographical concentrations of wealth typically associated with the startup economy:
We need to figure out how to make the system work for everyone in the face of technological changes. We need policymakers to incentivize regional and industry diversity in our innovation, and entrepreneurs to focus on the larger, thornier questions related to building businesses that share the wealth better among those who create them — not design a system to spread the crumbs a little better.
Sure, apps offer a nice experience. But the Web is about links that constantly reach out, connecting us without end. For lives and ideas, completion is death. Choose life.
The globalisation of the world economy can be clearly seen in a recently released report from McKinsey with growth in interregional data. Among the causes and effects are that startups are finding it easier to tap global markets whilst consumers are increasingly looking to interact with communities of interest rather than proximity:
Certainly, design should follow some basic paradigms to make whatever we’re designing easy to use. All scissors look fundamentally the same because that’s what works.
But digital design—whether it’s for desktop, mobile, VR, games, whatever—is still relatively young. We simply do not know what the best solutions are. At best, we’ve reached a local maximum. And so long as we reward predictable designs, we will never move past this local maximum.
In January, more than 60,000 refugees arrived in Europe, a thirty-five-fold increase from the same month last year; but in Denmark, according to Politiken, the number of asylum-seekers has steadily declined since the start of the year, with only 1,400 seeking to enter the country. In limiting the kind of social turmoil now playing out in Germany, Sweden, and France, the Danes may yet come through the current crisis a more stable, united, and open society than any of their neighbors. But they may also have shown that this openness extends no farther than the Danish frontier.
Corruption among Brazil’s political class — including the top levels of the PT — is real and substantial. But Brazil’s plutocrats, their media, and the upper and middle classes are glaringly exploiting this corruption scandal to achieve what they have failed for years to accomplish democratically: the removal of PT from power.