What Unbundling really means
Every now and then reports and rankings like “Bloomberg’s Innovation Ranking” are published to show how companies and countries are competing or holding up.
U.S. out of top 10 for first time in the gauge's six years South Korea, Sweden repeat as 2018 leaders, Singapore is 3rd…www.bloomberg.com
If you look at the these reports over time, they follow the traditional industrial paradigm of industrial leaders. The countries at the top are heavily dominated by family owned/controlled industrial complexes.
If you overlay the overview of the most valuable companies in the world, you see a very interesting pattern.
The Chart of the Week is a weekly Visual Capitalist feature on Fridays. By definition, the largest companies by market…www.visualcapitalist.com
So countries that clime down the ladder of being the most innovative, seem to inreasingly be the home of the most valuable companies in the world?
Did Bloomberg get this whole thing wrong?
I do not think so. I think they are tracking the traditional industrial groups, the ones that thrived under the world where R&D and distribution post was so hard and expensive that startup companies could not compete.
As software has been eating the world (and lately AI is giving that rocket fuel), that has gradually changed.
This is what is so deceptive with the shift (or disruption) that is happening, which has become pretty apparent from the unbundling of the incumbents that have not figured out how to be in front of the wave of disruption.
Unbundling of a Bank
Traditional banks are under attack from a number of emerging specialist startups. Here are the FinTech startups…www.cbinsights.com
Banks are suffering death by a thousand cuts and being relegated to utilities as they fail to adapt to new tech trends…www.cbinsights.com
Unbundling of The Hotel
These are startups that are shaking up the hotel industry by peeling away offerings like concierge and event services…www.cbinsights.com
I think soon we will see the unbundling of companies like Atlas Copco, Ericson, General Electric and the Energy Industry (oil, gas etc).