i3 - January/February 2016 - 83
Policy
What niches within the industry are
rife with opportunity for startups?
There are a suite of startups creating
companies from scratch to mine data. The
Internet of Things (IoT) is going to swamp
the Internet with raw data. These startups run analytics on data collected from
"things," like wearables for example. They
may license data from a fitness tracker
company. They look at this data and make
correlations, say between people who use
XYZ brand fitness trackers and people
who shop for Clif bars at Trader Joe's. Or
who buy Bluetooth headphones. The IoT
will provide endless data to mine, and
startups are finding ways to monetize it.
Brands want to know what other brands
or products their consumers are using.
Data mining is a new business model and
huge opportunity for both startups and
established companies.
Another opportunity is that the line
distinguishing products made for the mass
consumer market and those made for an
industry or enterprise market are blurring. With the right accessories, consumer
products can be repurposed for special
use in industry or military. Tablets are a
great example. This is good news and a
huge potential market for traditional CE
companies, accessories manufacturers, as
well as startups.
How will the startup-friendly
new economy impact mature CE
companies?
It will increase competition for sure. It
will also disrupt some businesses. For a
large, established company, traditionally
your competition has been the other big
guys with a similar brand. You may compete on price or features. Now because
the cost of entry is so low, you have to
consider two hungry students with a
Kickstarter campaign as your competition. Someone out there is working on a
big disruption to your business and you
don't even know it. What I'm cautioning is that you can't rest on your laurels
because, for established companies,
business as usual is no more. However,
there are two ways to look at this. One
is the disruption model. The other is
the exponentiation model. I prefer the
positive outlook. The latter says that the
rate of growth and innovation in the new
economy is exponential. Entire new markets like Uber and Airbnb are sprouting
up, reaching a critical mass very quickly,
and creating more opportunities for both
consumers and entrepreneurs than they
are disrupting.
http://tiffen.com
http://tiffen.com
i3 - January/February 2016
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