1. WHY YOUR COMPANY MUST BECOME
A TECH COMPANY -
APPLE, AMAZON, FACEBOOK, INSTAG
RAM LESSONS
Anneli R.

2.  Article by Adam Hartung
 Link to:
http://www.forbes.com/sites/adamhartu
ng/2012/04/14/why-your-company-
must-become-a-tech-company-apple-
amazon-facebook-instagram-lessons/3/

3.  We now must realize that value is not created by
what accountants have long called “hard assets” –
land, buildings and equipment.
 In fact, the 2 great U.S. recessions since 2000 have
demonstrated to everyone that there is no security
in these.
 Land, building and other “hard asset” values can
decline, decline fast, and decline far. They can
easily be worth less than they cost to make – or
own.

4.  Successful competition in 2012 (and going forward)
requires businesses know about customers, products
and have the ability to supply solutions fast with
great reach.
 Winning is about what you know, knowing it
early, acting upon the information and then being
able to disseminate that solution fast to those who
have emerging needs.

5. From agrarian through the industrial to
the new information economy
 Three hundred years ago the world’s wealthiest people
owned land. In an agrarian economy, where most
human resources.
 But then some 120 years ago along came the industrial
revolution. Suddenly, productivity rose dramatically by
applying new machines to jobs formerly performed by
humans.
 Sometime in the 1990s the world shifted
again. Companies that can drive new levels of
productivity via the creation, management, use and sale
of information can create enormous value

6. Going forward...
 No company can plan to survive with an industrial
strategy. That approach, and those rules, simply
don’t create growth – or high returns.
 Every business must shift, or die.

7. To be successful you MUST become a
tech company...
 You must be expert in understanding the information
needs of customers, and how to supply information
solutions that have high value. And while this may
not feel comfortable, it is reality.

8. Retail is no longer about location or
inventory.
 There has been some incredible shift that has happened
in retail. One of Americans largest retail Sears has still
enormous amounts of land and buildings but value of
Sears is only $6B (1% the Apple value) despite all that
real estate!
 Yet, Amazon – which has no land, and almost no
buildings – has used the last 20 years to go from start
up to an $86B valuation – doing much better for
shareholders than its traditional, industrial thinking
competitors. In the last 5 years, Amazon’s value has
roughly quadrupled!

9. Apple
 Apple is telling everyone – globally – that
there has been a tectonic shift in markets.
 Recently Apple’s value peaked at $600B
 This astounding valuation causes many investors
to be reticent about owning Apple shares, for it
seems impossible that any one company –
especially a tech company with so few
employees – could be worth so much.

10. Facebook and instagram
 Lately Facebook bought Instagram, an application
what was almost same useless as it was worth. But
after attaching that application with Facebook, it
has more than 780 million users.
 Kudos to Mark Zuckerberg as CEO, and his
team, for making this acquisition so quickly. Before
Instagram had a chance to hire bankers, market
itself and probably raise its value 10x.

11. To sum up...
 Investors are telling business (and government)
leaders is that in a globalized, fast paced world
value is based upon what you know, when you know
it – in other words information. Not land, buildings
or the ability to make things.

12. THANK YOU!