It is estimated that Apple iPhone has disrupted/killed at least 27 business models. This ranges from flashlights , Nokia style mobiles , CD players and so on.
Amazon has disrupted brick and mortar super markets and book stores heavily.
This list can go on for new few pages. The speed at which business are getting disrupted has increased rapidly. Buoyed by the success of digital models, Entrepreneurs across the world now have even bolder visions. Elon Musk, Jeff Bezos , Peter Thiel etc...
These business models have a core use case and don't try to do too many things and be everything for everybody. They have customer at the core of everything that they do and are built with latest gizmos of Digital ToolKit.
If we were to borrow political lingo, SpeedBoat business models are extreme right wing of the Digital world. Founders are typically audacious millennials , or slightly there of, who understand technology is business. For them strategy is not fancy power points and complex charts. For them strategy is about problem solving. They move at great speeds and decimate current sluggish models.
So what about regulation ?
Complying to regulation is much more easier to SB2M (SpeedBoat Business Model) because they do few things and do it much more transparently . Their business have consistent and often STPed business processes. Their data is spot clean.
Can't larger corporations and bigger banks become SpeedBoats ?
For a foreseeable future , unless something drastic happens, we believe Bigger companies will remain as Super Tankers. They may pick up speed , may become much more efficient in providing customer services as we are starting to see. However , running a Super Tanker means you may also have Speedboats but cannot become one overnight. It is very counter intuitive for a bigger corporation to become a SpeedBoat.
How will a SpeedBoat Business Model leverage Digital technologies ?
1. They will leverage Hybrid cloud for horizontal and vertical purposes - Lower cost of running
2. They will have data processing done by Big Data engines creating one or more Data lakes and employ Deep Machine learning techniques - They will be agile to take informed smarter decisions faster
3. They will not have business processes but Customer Journeys - Everything will be built around Customer
4. They will believe in Customer Centric, Mobile First , Social savvy, Kick ass UX that will bind customer to the brand - Seamless engaging intelligent experience
5. Their IT staff will be super productive and spend less than 10% time on operating / maintaining software compared to the time they will spend on adding new functions - DevOps , Gamification etc
From a business perspective , they will focus more on Profit multiplying techniques rather than a perennial fight that bigger corporations wage against cost.
Let's start a Retail Bank from Grounds up using the above 5.
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