15. The Economy & Social Institutions Respond
• 1999 to 2013 – Broadband and
Mobile Technologies continue
to invade our lives
• 2013 -David and Goliath must
dance
16. Consumerisation of Technology
Ariadne advised Skype on business development activity in 2003 and 2004
The consumer's adoption of services is driving everything, reversing how new
products and services used to come to market through the enterprise.
User
Client Developer
Supplier
17. Raymond Kurzweil
The Singularity is Near
• Technology operates exponentially while our
minds operate linearly
• It took 89 years for the fixed line telephone to
achieve an adoption of 150 million users, but
only 38 years for the television to get to the
same point. The mobile phone achieved this
in 14 years, the iPod in 7, and Facebook in 5.
• 20,000 years of progress this century.
• At a certain point, we have to leverage
technology or artificial intelligence to continue
to model or predict the future
18. The David / Goliath Grid Model
Network
Strategic
Effects
Value
When partnering with, When acquired,
Ecosystem
1)Brings new 1)Can become
“David” - Digital Enabler
EconomicsTM –
shifting digital revenues
industry 2)Can reinforce or
players 2)Brings lean operating gain a position as
system Industry Architect
Consumer –
Data sets
become
prevalent
Network –
Orientation at
heart of the
consumer
insight Renting Operating System
Not Licensing to the industry
Vulnerability “Goliath” - Distribution Financial Value
Copyright - Ariadne Capital 75
19. Examples of Corporates engaging with Digital Enablers
Large corporates which are partnering and/or acquiring digital technology firms
include:
26. and Ecosystem Economics
• Google says that they organise the world’s information
• They actually organise the economics of the world’s information
• I, as a consumer of their search, am not given any economic upside in the search
transaction.
• They have built a multi-billion pound business using – albeit anonymously – my personal
data – aggregated with that of others, but releasing none of the economic value to me
• Their biggest Achilles Heel is if someone in the search space were to cut a different set of
economics for the consumer
• Ariadne Capital found that entrepreneur – John Paleomylites – founder of
BeatThatQuote, and sold his business to Google on the 4th of March 2011 for a 122 EBITDA
multiple for these reasons
28. has created The Mobile Money Ecosystem over the past 9 years
Cards
Processor
Payments
• Domestic
• International
Mobile
TopUp
Enabler
3rd Party
Providers
• Sharedealing
• Insurance Mobile
Operators
National
Use of standard Interfaces
Services
• Transit
• Utility
Other eg
Core • CRM
Banking Wealth • Database
Shopping
&
Loyalty
Bank Platforms
32. In 2013, “Network Benefits” accrue to those Firms
who understand their role in their ecosystem and
organise the economics for it
This in turn leads to exceptional returns for their
shareholders
89
33.
34. Individual Capitalism is the Force for the 21st
Century
“Capitalism was about empowered
authority which didn’t necessarily activate
the citizenry; the Internet stands that on its
head, and shifts the power to the
Individual
– making Individual Capitalism the force of
the 21st Century”.
