Excerpts from the book “the Third wave of the Internet. What are the qualities of the entrepreneur of the future”. Publishing house “Eksmo” issued the book “the Third wave of the Internet.
What are the qualities of the entrepreneur of the future”. The author is co — founder and former CEO of AOL, Stephen Case. For example, successful it projects, he explains how to act in the new economy. It may seem that the lessons of history the first wave of the Internet is already obsolete.
Of course, it is not too excites the minds of modern business, moreover, they are not too interested in her. Nevertheless, I still believe that technology has made great breakthrough since then as the Internet went on a simple PC Apple II with extremely slow modems at 300 baud. But even with the most modern technologies to the attention of the users of the network of the third wave will focus not on the technique itself. They will need a new strategy (which we have always done) and new infrastructure.
If initially we were concerned about the issue of connecting to the network itself, the new generation will take over the tasks over a broad spectrum, and in this sense, the search for solutions will be more coincide with the first wave than the second. The second wave was characterized by a sharp increase in the number of Internet users combined with the rapid adoption of smartphones and applications. The most successful companies, such as Snapchat and Twitter, came on the market without partners, with a small number of technical specialists.
However, their perseverance has defined an entire era. Currently, much speaks in favor of the fact that the current model is ready to exhaust itself. There are more facts proving the fundamental difference of the second wave from the third and the third similarity to the first.
For the third wave will be characterized by global connectedness of society. We are entering a new stage of technological evolution, when the network will be integrated into all aspects of modern life. Education, health, and finances, and how we get up in the morning, and how we work, and even what we eat. Gaining momentum the third wave puts in jeopardy all the leading sectors of the global economy.
I think the same thing is happening in Silicon valley. For the first time in several decades, this process got there. Imagine a culture and the scale of innovation in any sector of our economy. And this third wave is not just have somewhere hypothetically, it exists here and now.
“Healthy” health system. If you are a technical professional looking for the most effective application, what could be better than to put their knowledge to work in the health care system. This area is huge, it is about one-sixth of the entire U.S. economy, but the use of the latest technologies is very low.
It can confirm each of us. I came to the clinic, we feel that we made the time step ago. In the vast majority of cases there are used paper carriers and faxes. In many hospitals you wont even be able to say exactly how much it will cost for certain services.
Mostly medical development aimed at the creation of new medical devices and drugs to use new computer technologies to improve the work with very little focus. The lack of internal coordination in medical practice leads to the fact that the healthcare system is riddled with errors. Often, patients have to repeatedly go to the doctors in search of a second opinion, which also costs money. And this happens not because both want the insurance companies. This is a result of setting incorrect diagnoses, and the initial errors are not isolated and disconcertingly mass character.
In September 2011 analysts Oncology center. Anderson came to the conclusion that the secondary diagnosis took them almost 25% of the time.
For many decades, we could only contemplate this situation, but complacency in this matter is no longer working. Maybe you wondered why the American healthcare system is much more expensive compared to systems in other countries, but nevertheless the high cost is not a guarantee of its effectiveness. Ready to answer why. Our clinics are stuck in their “completely free” world, and suffer from the first of all patients.
Fortunately, already taken the first steps to correct the situation. In 2014, the sum of the costs of using Internet-technologies in medicine was four times higher than in 2010. The same “smart bracelet”, or as they are called, fitness trackers that measure steps, speed, and heart rate, are already receiving their new hardware and software embodiment that enables users to send and save all vital information and inform the patients and their physicians if you experience any problems.
Daily tracking of vital signs will turn into the same ordinary procedure as brushing your teeth. In its simplicity, but it will have a strong influence both on individual patients and the entire healthcare system as a whole. Now, carrying out diagnostics and getting aggregate data about your health condition, doctors use methods that lack precision.
Too often, doctors ask questions. “When you start something on your mind?”, “If you notice these or other symptoms?” — and just as often dont get the exact answer. Of course, in most cases this “lack of precision” is not critical in nature, but sometimes it may depend on the patients life. Online information will allow the doctor to determine whether your headache is a simple headache or a life-threatening aneurysm, before you go for medical help.
In other words, the phone will warn you right at home, that you are at risk of a stroke or heart attack. In this situation, your mobile device will be the most intelligent and important assistant. This technology will help to reduce the number of diseases coming from “disorder” patients, but they account for over 30% of total expenditures. With connected monitoring devices, doctors will be able to track people at high risk of the disease, the condition of their vital organs and in a timely manner to schedule of certain drugs.
Innovations of this kind will help to annually save tens of thousands of lives, and the level of total costs on the health system nevertheless will decrease. Of course, the third wave involves not just the work of doctors who analyze the state of your health. It will be primarily the third-party software applications, designed to keep you health.
Imagine the possibilities of Express-diagnostics, which holds not a doctor, and the supercomputer Watson from IBM. And similar changes will occur in the whole structure of health. According to the Center for control and prevention of diseases of the United States, annually up to 200 thousand deaths caused by chronic diseases could be prevented. Cost to take people to the clinic for a day or even an hour earlier and it would have saved his life.
According to studies by consulting firm McKinsey, the cost of such monitoring by the year 2025 could reach $1 trillion a year. Researchers have access to anonymous data will allow to obtain results, which could not and dream. This applies both to the track epidemics and to analyze the nature of the diseases themselves. These technologies will allow you to make a real revolution in medicine in General.
A revolution in the education system. Move on to more personal and individualized issue, which also applies to information collection and management.
Speaking about the third wave, I mean it in General, not just the future of healthcare. This fully applies to other large and important area — the system of American education. Organizations working in this area, both private and nonprofit, within the framework of the third wave will use the new technologies to revolutionize the ways our learning.
During the first and second waves of such technology is not much different. Students sitting at computers, doing PowerPoint presentations, browsed web pages and communicate with virtual friends around the world. Of course, that each of these and other methods have the best recommendations, but only a few of them were specifically designed as an educational. The third wave will begin to change.
Now there is a technique by which teachers interact with parents in forms impossible even 20 years ago. Many schools use virtual control panel on which teachers can place everything you need ranging from homework assignments and tests, and ending with a video in which your child reads a report in front of the class. Technologies of this kind will play the role of a new and important tool attracting parents to the process of education in those species that did not exist before.
These new technologies are not just for students and their parents, they are also useful for students and professors. For example, in 2015, I invested in a web app Pear Deck, developed in Iowa. It allowed teachers to conduct interactive presentations in real time and then carry out error correction of the speakers. There is another online products in this area.
In 2015, the New York Times wrote about the company Teachers Pay Teachers service through which teachers can buy or sell educational lesson plans. One of the school teachers said that for the year earned about $100 thousand, selling their books on grammar, vocabulary and literature. “What started as a hobby turned into a business,” she said told the newspaper.
CEO of Teachers Pay Teachers Alan freed, the Times also reported that the 12 teachers who use their service, become millionaires. “If you have a child, a student, explained freed, — you can always use the paid content from our website”. Some companies use technologies, practicing individual approach to the learning process.
They contribute to the fact that learning occurred as efficiently as possible. In the not too distant future, students will be able to obtain the equivalent of a virtual tutor that will not just provide the educational information, but also to control the absorption and to adjust the program to achieve the best result. “Virtual textbooks” will be smart, and students will gain the opportunity to gain knowledge in the mode of “one on one”.
Short focused tasks created by the teachers, will allow the trainee to move in that direction, where they can Express themselves most efficiently. To replace the “culture of standardization” will come “culture of personalization”. All we learn is not the same and the material is not digested the same pace, and therefore, and teach all of us need different.
Under the third technological wave itself the training program will vary depending on the progress of students. What may be good in the annual standardized tests. New technology will allow teachers and parents receive detailed reports on a wide range of indicators, as well as give the possibility to compare learning outcomes between students in a particular class and other schools. Thus, the individual of the individual student will make the level of education is higher because a single test is not able to accurately assess the quality of training.
Over time may be revised and the role of the teacher. For example, a non-profit organization Khan Academy gives students the opportunity to watch a course of lectures on the tablets, and cool to spend time on what used to be called “homework”. Instead of reading one “General” lecture to 30 students of different levels, teachers can only be in the classroom to help students to solve the individual problem.
In the future we will not assess the size class by number of pupils, instead, we will count the number of minutes that the teacher spends with a student one-on-one and tailored to the actual successes. This approach will focus on meeting the educational needs of each individual child. The question is, will such a model the best results is still open, but in any case, this approach will allow you to collect and process personal data.
We will get the opportunity to run a series of cheap educational experiments and find out the effectiveness of training programs in real-time. You can easily spend approbation of such programs on students of different classes and compare results. The data obtained will be processed very quickly, and schools will not have to wait long to introduce a new expensive system of knowledge assessment and to decide on helping or hurting a particular model of education. Teachers easily adapt the most successful programs and teaching methods to school level.
And failed educational endeavors, you can always opt out before they cause harm. This is the transforming power of the third wave with its integration into the education system. To date, the barriers to innovation in this field is still quite high.
And the point is not in ignorance of an educational policy. Just look at any public or private school in the country and you will see a structure that was little changed since the nineteenth century. Talk to the reformers in this area and they will tell you that one of the main problems of the education system lies in extreme caution in making decisions. The risk to try something new scares teachers is greater than the risk to maintain the outdated status quo.
And the second option wins out too often. The third wave will not solve the problem completely, but it can significantly help. At the expense of the third wave will be able to remove from the agenda the questions, the answers to which did not exist before. She explains not previously visible to us laws and will highlight the problems whose existence we had never suspected.
Ultimately, the restructuring of the education system requires a multidimensional approach. Of course, the basis of any teaching lies in the study material or, if you like, content. But already at an early stage in beginning work AOL, we saw that it is impossible to focus only on the content that is the error.
While still only in the first wave, we realized. Context and community are equally important. In my company the word “context” we understand a set consisting of “outer packaging” and further curation, helping people to go through an infinite number of variants of cooperation with the media companies having a sufficiently strong brand, attracting a wide audience of consumers. Under the “community” in AOL understood the process of creating ways for user groups to communicate and share information.
It resembled the business model of 3 Cs, only its components, which rendered AOL on the crest of success of the first wave was “content”, “context” and “community”. I think that they will be the main energy components of the revolution and the third wave. We need teachers who envision trends in the development of content in the right direction, but we cannot stop. We must create a new respected brands on a national scale (for example, leading universities in the country), offering the kind of credentials that guarantee the highest quality of service.
Communities formed around content, will allow students to learn from each other and make a long-term relationship. Thus you slowly build up a lasting network that will exist after the end of the learning process. In education, the first wave is too heavily focused on the development of technologies, the second on content.
Advocates of the third wave will focus not only on the development of technology and content, but also the importance of combining both “context” and “community”. And only a comprehensive approach, consisting in first place in the General partnership, will produce a revolutionary leap in the educational process, about which they say for several decades, but further conversations business is not has gone. Than we will eat in the future.
Food industry is a sector of the market is $5 trillion. If you deal with agriculture and run your own business, then definitely you will become an active user of new Internet technologies. Every entrepreneur is faced with the third wave and working in this sector, will not abandon the statistical data to assess their capabilities.
Innovation the third wave will give him the chance to change modern ways of food production, distribution and consumption. Of course, this means that in the future we will start to eat microchips. Nobody eat your Apple, it will remain with your wireless connections through an iPhone or MacBook.
In addition, it does not mean that we should expect a mass transition to alternative food in the form of soybeans and instant powders, which are popular with the elite of Silicon valley. The third wave will affect the other. It will fundamentally change the principles of production, cultivation, storage, safe transportation and delivery of food products to consumers.
Agricultural production has long been covered by technical innovation as they are needed in this industry. For example, for many years on farms across America use sensors that monitor the temperature, chemical composition of water for irrigation, as well as other important parameters that provide high productivity.
However, the third wave will bring agriculture to a completely different level. In particular, as told to the journalist from the Guardian Nicole Kobie, the third wave will be able to save the bee population that within a few years began to die most mysteriously, which created a real threat to the process of pollination in the fields. The main cause of loss of bee families lose their special form of clamp. These mites are sensitive to elevated temperatures, but the use of additional heating of the hives would rastoplenny honeycomb wax. The option was considered and the temporary relocation of bees from an infected hive.
A group of researchers proposed to solve this problem by using internal heating of specific local points inside the hive and not heating the whole construction. The increase in temperature at these points was carried out in a specific pattern. In the same way bees have built their colony, and managing the entire system was carried out via the Internet.
In an interview for Kobe, one of the leading developers of this system, will McHugh, told. “Our electronics does two main things. First, it monitors the temperature, and secondly, produces the actual heat”. When the sensors detect the localization of bee larvae, susceptible to damage by mites, they heat the area around, killing parasites, but not damaging neither the larvae nor the design of the hive. “By the bees that there was no danger, — said McHugh, but mites, a significantly smaller burst like popcorn.”.
Another example. Meat products produced in the United States is the system of ensuring food safety, created a century ago, during the reign of Theodore Roosevelt. Since then, this system has not changed much.
Most meat processing plants the inspectors are able to assess quality not more than 1% of production, and this is done in what is called “the eye”. Even when conducting tests for the presence of pathogenic microorganisms is not always achieved reliable results, because the Salmonella may not be identifiable. It is fraught with great danger. From the point of view of public health safety control of food products need technological improvements.
The third wave of entrepreneurs ready to change the process. For example, there are companies that develop equipment for the irradiation of meat products. Their technology destroys pathogenic microorganisms without heating and ensures a safe treatment. Others are working to create “smart” packages with RFID tags RFID technology contactless high frequency wireless communication NFC or Bluetooth.
They allow you to constantly monitor production in real time from factories to refrigerators. The transition to a new stage of technological development is not long to wait. Imagine a refrigerator that determines not whether your meat parasamgate, or an oven that refuses to cook it, if it had been in questionable storage conditions.
And were not talking about science fiction, and derivatives of the third wave. The introduction of such technologies will occur against the background of demographic change, change of the way of life and the emergence of new trends shaping the direction of development of the entire food industry. Todays youth are more numerous than the generation of children of the baby boom 1940-1950-ies.
She pays more attention to food culture and diversity. Todays youth, unlike their predecessors, tended to eat out and tend to choose the most healthy products. For example, according to the New York Times, in the period 1998-2015 years the volume of sales per capita of soda has decreased by 25%, the current generation has moved to the use of clean water.
The increase in demand for healthy food you can see, if you pay attention to the growth of the fast food chain Sweetgreen, which was invested my venture company Revolution. Unlike McDonalds, Sweetgreen does not focus on the questions of cooking; she pays maximum attention to the logistics of linking farmers with a work Desk chef. This contributed to the revival of farmers as entrepreneurs, can not only create, but also to sell fresh produce at more competitive prices. Nothing like this would happen, they stick to the usual sales through the distribution network. This trend did not deter investors, it allows them to soon join the culture of the food industry and to derive maximum benefit from the revolutionary processes taking place in the industry.
Catch the wave.
As I grew up in Hawaii, she would often run off to the coast to ride on the Board. I once watched a guy-a surfer who glided through the waves with surprising ease. He succeeded much better than me. While he waited for the next wave, I paddled up to him and asked him for advice.
You only need to know one. When you gush wave, or you are in a water pipe, or throws you onto the sand. The third wave is a kind of overlap. No matter whether you are an entrepreneur wishing to catch this wave, or work as part of a Corporation, preparing to do the same.
In both cases, the third wave is not something that can be ignored. Start-up and economic development of any project sometimes is a very confusing and complicated process. This is the conclusion I came early on working for AOL.
Elon Musk immediately identified that our business is “looking death in the face”. Such a formulation it is possible to calculate a gloomy or exciting, but this state of Affairs is a litmus test, giving the understanding that you have everything for a successful entry into business-the era of the third wave. From a historical point of view, AOL could become the backbone for the bold and ambitious thinkers who subsequently undertook the formulation of strategic goals for the pillars of American entrepreneurship, for those who confidently chooses ways to make a specific decision.
The essence of leaders of the third wave would be not only bold visions but also the ability to bring them to life. Of course, AOL was not the only company that believed in the future of the Internet, but we managed to overtake and push competitors off the pedestal providing. Huge corporations such as IBM and GE, had all the chances to become leaders, but this didnt happen.
Inactivity in the field of online business, lack of participation in the culture of the Internet service slowed down their. When I talk to beginners in business about the third wave, see how much they care about this issue. They ask that you now need to do differently.
I tell them that it all comes down to the business model of the “three Ps”: partnership, policy and consistency. Partnership.
Theres an old African proverb that I appreciated. “If you want to go fast go alone, if you want to go far go with a friend.”. No matter how just sounded this advice, I believe he is one of the most important when doing business. It is particularly relevant in the context of the third wave, when the success will largely depend on a partnership between leading companies, even if some of the issues and their views do not match.
During the second wave the most successful companies have focused on figuring out how the marketing organization off and used them in his work. They focused on two aspects of its activities — producing, and the consumer audience. In the presence of a multi-million dollar demand on monetization it was possible not to worry.
The third wave, as they say in the proverb, to “go far”. You can create a great product, but as a rule you will not be able to get their share of the market. In the third wave just to create a store of their services and passively wait for the result, even if the number of users will grow.
These indicators and will carry only quantitative in nature. For example, there are key figures in taking decisions in school education. Depends on them, whether or not to approve any services associated with training. The situation is similar in other areas — healthcare, leasing, Finance, food industry and t.
For the most part, the success of an entrepreneur would depend on his ability to form meaningful partnerships with organizations or individuals who, in turn, will influence the making of business decisions key executives.
In this regard, revealing Apple in creating the iPod. In the early 1990s, seeing huge opportunities in the field of portable MP3 players, Steve jobs was quite surprised how poorly they are used, in terms of commercial activities. As said Vice-President Greg Joswick in an interview with Newsweek, “there was a real swamp”. On this basis, jobs created a new team. “Like Picasso said, good artists copy, great — steal.
But we always were ashamed to steal great ideas,” said Steve jobs, according to his biographer Walter Isaacson. In this sense, the emerging tandem of MP-3 players and the online music industry is no exception. A year before the creation of the iPod, Steve and I discussed the issue of combining this device with the music business.
We sat in a dark corner of the sushi bar in San Francisco, hoping that no one we know and we can talk quietly. At that time the idea of the iPod was in its infancy, Steve was excited about it, and I also encouraged her. I thought this is a great direction, and declared their willingness to stay on it. After a while AOL offered to be an online music store for iPod. Jobs refused, opting to create its own iTunes.
Later Tony Fadell, who led the project, put forward three basic requirements of the iPod. It needs to be simple in essence, beautiful in appearance, and to create it you need fairly quickly. Meant that it had to be done by Christmas.
Fadell worked with great minds in the Apple — Phil Schiller and johnny Ivom. The project was completed just in time. Newsweek dedicated an enthusiastic article, calling the tandem “fused crystal in the polymerization of Antarctica, raskrutim in bright colors grayness crowded subway”. But no matter how wonderful a new product, launched together with iTunes, no matter how great his software, Apple would never have been able to go with him to the market alone. Licensing of music content immediately assumed a partnership with companies that could compete with Apple.
Jobs and his team coped with this dilemma is clever and cunning way. They turned to licensed distributors of musical material, and said not to worry. ITunes was working just for PC, Macintosh, constituting only 2% of consumer market.
Created represented a kind of “risk-free” laboratory in which to analyze consumer demand, and it was much more profitable than endless litigation over piracy. And this approach worked. It is not known how jobs was candid in my ambition, but I think that if he then confessed that aiming for a market of a billion users, it is likely that the license he had not received. In this case, before it opened would be a sad path that passed William von Meister with his failed project Home Music Store.
Directly for Apple, this step was like a tightrope. However, for any other firm that would be even harder. When working with record companies, Apple laid out on the table its trump card in the form of a famous and respected global brand.
Her ideas, resources, and strategy rule out the risk of the investment. If the new young firm appeared on the market, what were her chances to compete with famous brands. Would someone sit with her at the negotiation table and to spend time. The biggest problem of the new projects of the third wave is to distrust each other. To overcome it, you need more partners, and in various fields.
But at the same time themselves new partners should contribute to the emergence in society of the sense of inevitability of the occurrence of a conversion. Something like that and we felt, especially in the first stage of the establishment of AOL. To build a sense of trust, creating a sense of future possibilities, not only regarding our company and other companies going in the same direction, became our primary task.
We had to convince our potential partners, first, that the Internet has become an integral part of everyday life, and, secondly, the ability to bet on developments in this area, despite the presence of large companies already going the same way. To conduct this work alone was impossible, so we started small. The first transaction our company signed up with Commodore, the second, somewhat later, Tandy. With these two contracts, we were able to go to Apple, the partnership which allowed to conclude a contract with IBM.
The deals gave us the authority increased its capital and helped to increase the market turnover. Could we get a decent investment, if I said. “Were going to create a new company, let alone promote it in the market.
Only we have no money, but we earn in the future”. This road went our main competitor — the Prodigy. Initial investments this company was about $1 billion. To counter this block alone was unreal. Our only chance was to create an Alliance capable enough in order to cause the consumer understanding of our capabilities.
We hoped that this will inevitably happen. Often establishing external partnerships depends on what is the relationship within the team. Lets take an example from the field of medicine.
Brilliant head, coming up with new directions designed to track the health status of their patients, can hardly expect to increase the number of customers, relying solely on the reputation of its own brand. Dynamics of power triggered instantaneously, as can be seen in the experience of the head of the Board of the Cleveland clinic. Currently, she freely opens any door, stating his desire to join the partnership, while relying on a self-replicating cycle of trust to each other. This style attracts and reassures potential investors. Their trust reinforces the credibility of the clinic and creating a snowball effect that opens new perspectives.
Building partnerships is a difficult process. In 2005 I created a company Revolution Health, which (as you may have guessed by the title) had to make a revolution in the entire health care system. Creating a team of investors and forming a part of the Board, I went to the market and announcing our plans and ambitions, began full-scale work on attraction of new partners.
AOL invested in RH, suggesting that the company will create a new information tool for remote control of the health of employees of retail trade enterprises. We have hired software developers, allowing both large corporations and small businesses to form their own plans for health. Some of them are not working, but some exist to this day.
So, we sold the international consulting company Towers Watson software product for $435 million, in addition, our buyer was the company-developer of web sites Everyday Health. However, most of our efforts gradually eroding. Part of the problem was unavailable at the time some of the technologies that we wanted to promote. Our company tried to do too much too quickly, so they dont necessarily have the level of partnership.
For example, we are closer to a collaboration with the Mayo clinics and the largest retail chain Walmart, but in the final stage of negotiations and could not come with them to an agreement. Both companies have decided that its too early and risky to make a technological leap of this level. A business partnership in the framework of the third wave is the key to success.
This creates a known effect of “catch-22” when a company needs partnership before will be able to obtain financing, but this partnership is not available because the company can not prove its financial viability (or at least its viability in the market). Working in such conditions requires persistence and patience. For those who were not connected with the sphere of promotion of new technologies, the partnership may seem simple and obvious thing. Those who are faced with this business, know how difficult is to implement it.
In the technological world, there are special style and a culture where money is the equivalent merits, where there is a kind of triumph of impudence. During the second wave, this approach often worked for the benefit of the company, because not always building partnerships was key to the success of. In the context of the third wave no partnership can deprive the company of prospects and prove to be disastrous.
Cooperation with other organizations and businesses adopt a fundamentally strategic importance and ultimately determines your success or failure. In this regard the development of massive open online courses (mooc). Their original idea was to create an e-learning platform, in which any participant can play the role of teacher and student.
But this situation could not persist for a long time, and the developers quickly realized that they will have to turn from direct consumers towards the corporate model. In order to be credible, they had to partner with Harvard, mit and other leading universities, possessing reliable brands and non-students questions about the quality of education. The problem with MOOCS was the fact that they are relatively quickly entered the market using the technology of distance learning, and has caused a wide public resonance.
The developers claimed that now the universities have lost their relevance, and promised to expel them from the educational sector. After a while the developers realized that those whom they recently called irrelevant, are actually their most important strategic partners. One of the leading educational platforms such as Coursera, even invited to his work as President of the former rector of Yale University. His authority was seen as a decisive factor in the success of the future project.
Policy. The third industrial wave is a highly regulated process in the entire country, and rightly so.
We dont want the pharmaceutical manufacturers to sell us drugs that are not approved by Management on sanitary inspection behind quality of foodstuff and medicines (FDA), or for our children to consume low-quality food. We dont like it if the cars will control drivers without a license, and will rise into the sky without pilots licenses. In reality, the company can not just with the same ease as in the virtual world, build at your discretion wind or solar power. No matter whether you consider that good or bad.
It always. Sometimes we fight for completely unnecessary reasons — so was, is and will be, but in this case, certain changes will be insignificant compared to spent on their efforts. In terms of the third wave of government regulation of any sector of the economy is essential, so do young entrepreneurs should be free to navigate in those political questions with which they might have to face.
New lending platforms require more direct regulation by the government Commission on securities and exchange Commission (US SEC); when conducting individual genetic testing requires the approval from Management on sanitary inspection (US FDA); logistics issues related to the use of air transport, can not be solved without Government aviation administration (US FAA), and the list could go on and on.
Businessmen of the third wave must interact with many government organizations at the Federal level. The problem is, without a doubt, is that very few entrepreneurs eager to face with government officials and even fewer who have the time (and desire) to work with experts in state regulation. However, to invite experts on these issues will have, or at least need to know from the beginning that they have to deal. Most companies simply can not rely on venture capital funding, without explaining to investors the strategy plan development.
And this strategy must consider including the issues of interaction with government regulatory agencies. In the third wave it does not matter how good one or the other idea in itself. If you do not have a clear policy of cooperation with government authorities, investors feel that they offer a dangerous adventure. Expect in such a situation success is impossible.
At least your chances will be very small. We watched what risk factors are crucial in each wave. In the first wave it was a technological factor, or in other words, youre just more interested in the question, will you be able to build a business at all. In the second wave of paramount importance was the factor of market risk, when you more worried about, will perceive whether the consumer audience for your product.
In the third wave the main attention should be paid to political risk, that is, to understand whether you will be able to correctly Orient in the existing rules and regulations to successfully bring to market a product or service. Consistency.
In our case, by “consistently” I mean the inexhaustible persistence and patience in the work, as it is a pledge of success of any single company. But the third wave requires the constancy of a special kind. Many bright ideas of the third wave will rise dozens of obstacles that determine their further operation.
And the point here is not merely to the production of hardware or software. You will inevitably have to deal with issues of logistics, building supply chains, finding partnerships, and address issues of state regulation. It is easy to see that each of the above obstacles can play a fatal role. The lack of partners, regulatory issues, start-up company development “upstream” in the rapidly changing environment of the third wave — all this leads to the collapse.
In 2014, a private biotechnology company 23andMe has not received FDA approval for their products, and many analysts believed that she was dead. But less than a year FDA approval yet been received, and there was a restart of sales. If 23andMe had not decided the issue, the company would cease to exist.
Dozens of years, AOL was in search of certain successful solutions, and sometimes stood on the verge of collapse. Before to achieve what we have now, we had to look hard and exhausting work. The same thing will happen with other companies developing their business in the third wave. It would seem that some external factors appear from nowhere, so to overcome them, new entrepreneurs also need to be prepared for a long and tedious labor.
Success will be a high degree of adaptability to new changes. Your first product may not survive their initial contact with the market and state regulators. You may have to adjust partner relations. In other words, you need to change some settings, to bring them to mind and be ready to change initial course.
The winners of the third wave will not be those who are chasing a big impact in a short time, and people who are able to methodically and without the involvement of diplomacy to achieve our goals. They need to learn to find the perfect balance between the two competing ideas. On the one hand, a rapid onset of dubious success in part comes from ignorance.
Requires fresh perspectives, revaluation of certain common designs and neugodnosti outdated dogmas. For example, the founders of PayPal have noticed that initially behaved rather cautiously when working with Bank cards, they were scared to enter this new market sector. In this sense such a position of leadership and carried the disadvantages. On the other hand, the understanding of the dynamics of the industry, a clear understanding of the capabilities of potential partners, the right vision of strategic issues creates more prerequisites for success or at least helps to avoid any major failures.
Entrepreneurs of the third wave have to learn to balance. Not worth to get in a defensive position, but we should not foolishly rush into the attack.