Showing posts with label Motorola. Show all posts
Showing posts with label Motorola. Show all posts

Sunday, December 3, 2017

Adoption, Not Just A Game For Brangelina

By Chris at www.CapitalistExploits.at


Who would have guessed that US Patent No. 3,906,166, granted in 1975 to Martin Cooper of Motorola would completely change the world?


My kids tell me that was a long time ago, which I suppose it was....



Here"s global cell phone penetration over the last decade. Not bad...




With hindsight we can look at this adoption phase and marvel, but let"s not miss some key points.



Specifically, how radically phones have infiltrated so many aspects of our lives. And no, I"m not talking about Sally who"s addicted to the endorphin rush she gets from hitting refresh on Instagram to see how many "likes" her stupid photo of her chicken-avocado salad is getting. I"m talking about real isht. Life changing isht.


Like the millions of Africans who now receive anti-malaria texts from football hero Didier Drogba:








It’s 9pm, are you and your family safe under nets? This is Didier Drogba, sleep well.



Ah... the humble mobile phone — doing more to fight Malaria than the UN, the WHO, or any government ever has. Power distributed and decentralised.



Or...


The Indonesian midwives" mobile phone project, which has drastically reduced infant mortality rates as villagers place more trust with midwives who can now talk to obstetricians and gynaecologists in the cities and provide better care.



Or...



Farmers, who prior to the mobile phone used to walk in blazing heat for up to two weeks to get to market, where they"d sell their livestock.... and sometimes wouldn"t because demand wasn"t there.


Those same farmers now use mobiles to determine ahead of time market prices for their goods before deciding where best to trade their livestock or crops. Not only that, but receiving live pricing of livestock and crops allowing them to more accurately plan and run their farming practices. Power distributed and decentralised.


And speaking of farmers in the third, world it was back in 2003 or 2004 — I can"t remember exactly — when my lovely lass (before she succumbed to my charms and became Mrs. Chris) and I were traveling in Kashmir, and I vividly remember realising then just how powerful the mobile phone really was.


We were chatting to a peasant rice farmer, I"ll call him Ranjeet. Because his father had done it before him, and his fathers father before him, and he himself had been at it for over 30 years since, Ranjeet was doing the only thing he knew: He was growing rice.


And like his forefathers before him, Ranjeet simply took whatever price was offered by the Delhi traders when they turned up at harvest time. Together with his fellow rice farmers in the village Ranjeet had no way of knowing whether the price he got from the traders from Delhi was fair or not.



Enter the mobile phone.



He, together with fellow farmers, had all clubbed together and bought a WAP phone. Remember those?



It was man"s first crack and connecting a mobile phone to the internet.


Ranjeet and his buddies would huddle around the phone, getting live pricing from the rice market in Delhi. And whoo... boy, had it made them mad. Ignorance, they say, is bliss.



Try telling that to Ranjeet, and he"d have punched you in the face. So when those slimy rice traders from Delhi rolled into town to buy Ranjeet and his buddies" rice, these dirt poor peasant farmers could no longer be hoodwinked into selling it at deeply discounted, "kill my family, make me starve" prices any longer. Power distributed and decentralised.



For most of us, we"re lucky enough to live in a developed country where we don"t think about this stuff.



The mobile phone helps us do many of the things we were already doing, but now we just do it without getting off the sofa.


But for those in emerging and submerging markets mobile phones help people do things they could never do before. They are, in other words, not a luxury but a necessity.


Ask folks today, and I"ll bet they"d sooner leave home without their underpants on than leave home without their phone.



What else?



Education. The mobile phone has revolutionised that, too. I was reading that in Vietnam 75% of the kids use their phones for educational purposes. This is good news because it means that Brangelina and Brangelina wannabes won"t have to adopt starving illiterate Vietnamese orphans any longer.


It was Malcolm Gladwell, the author, journalist, and speaker, who said:








Poverty is not deprivation. It is isolation.



I"m going to put my neck out and say that the mobile phone has probably done more to break isolation and reduce poverty than almost anything else in the last 50 years.


So What?



Well, the mobile phone is similar to how to think about blockchain, and of course the most powerful (to date) blockchain is Bitcoin, which I spoke about last week. One changed the world. The other will change is changing our world.



Like the impact of the mobile phone before it, it"s going to be HUUUGE!



HUUUGE! I tell you!


Now, I"m going to suggest that Martin Cooper was an amateur, compared with Satoshi Nakamoto, whoever the hell she is. This is because blockchain technology has the potential to do what the mobile phone has already done but on steroids.


Applications are already being built in: Asset management (trade and processing settlement), insurance (claims processing), payments, title registry, deed registries, personal identification, distributed cloud storage, and an entire squadron of other applications far too long to mention here.


Many will scoff and laugh at it... and many do. This is how it must be, but I warn you. To ignore this is like ignoring the impact mobile phones were going to have on society when the first mobile handset went on sale in 1973. Completely revolutionary and disruptive technology would be neither revolutionary nor disruptive if it didn"t... how do I say this... disrupt.



And it"ll be fought hammer and tongs, especially by those who see it as a threat to their own business models. Hello Jamie :-)


But ultimately new technologies become overwhelming, and even those who poo poo it will be dragged kicking and screaming into its clutches because the utility function is too powerful.





And we should all be as happy about this as these guys.





Because power in the hands of many is always everywhere better than power in the hands of the few.


To the future... and a jolly fine weekend. Thanks as always for reading!



- Chris



"Disruption is a process, not an event, and innovations can only be disruptive relative to something else." — Clayton M. Christensen


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Liked this article? Then you"ll probably like my other missives on


this topic as well. Go here to access them (free, of course).


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Thursday, April 6, 2017

The Fortune 500's Fastest Growing (And Shrinking) Companies

Via Craft.co,


Since 1955, Fortune Magazine has released an annual list of the highest revenue generating companies in the US – the Fortune 500. In 2016, the US Fortune 500 companies generated $12 trillion in combined revenue, accounting for over two-thirds of US GDP, and employed 27 million people worldwide.


In today’s dynamic economy, we know some companies and sectors are growing rapidly and others are struggling. We wanted to see which of the Fortune 500 are growing and shrinking the fastest, and which sectors.


In the Craft company database, we looked up revenue for these 500 companies over 2014-16*, and calculated the average annual growth rate in that 3 year period.


We found that only 62%, 309 companies, had positive revenue growth and 38%, saw their revenues decline. Healthcare was the fastest growing sector, perhaps benefiting from the regulatory environment, and Technology came in second, driven by relentless innovation in Silicon Valley. The Energy sector declined the most, matching a steep drop in the global oil price.


Here are the 50 fastest revenue growth companies in the US Fortune 500.



XPO Logistics, providers of transport and logistic services was the fastest growing company, with a compound average growth rate (CAGR) of 230%. This growth was the result of numerous acquisitions in 2015, and 2016 was the company’s first year in the Fortune 500 list, recording $7.6 billion in revenue.


NGL Energy Partners, an energy conglomerate was the second fastest growing company, with 95% CAGR.


Overall, 83 companies grew revenue at an impressive 10% CAGR or higher during this period.


59 of the Fortune 500 saw their revenues decline by 10% or more. Here are the top 10 fastest shrinking revenue companies from the list. 



The company with the largest decline was Hess, oil and natural gas producers, whose revenue declined 58%. The next fastest shrinking company was Marathon Oil, which declined 38%. With the exception of SuperValu, a Minnesota-based food and drug retail chain, 9 of the 10 fastest shrinking revenue companies were in the energy sector.


Looking further into the fastest growing and shrinking sectors, we calculated average revenue growth weighted by the percentage of total revenue generated by each sector. The table below ranks sectors by growth rate, weighted by total revenue.



We also analyzed the list by geography to see if there were any patterns in terms of where growth was taking place across the United States. We grouped companies by State in which they have their HQ, and calculated average revenue growth weighted by the percentage of total revenue in each state.


The table below ranks the states by fastest revenue growth and decline. Note we only included states with 5 or more companies headquartered there.



California was the fastest growing state, with 51 of the companies headquartered there, growing at an average of 5% annually. 20 of these 51 companies are in the Technology sector, and include Facebook, Salesforce, Netflix, Apple and Alphabet.


The second fastest growing state was Washington. The 12 Washington-based companies grew at an average of 2%, with the fastest company being Amazon, which grew at 20%.


Unsurprisingly, given the dominance of Energy companies, Texas was the fastest declining state, with the 50 companies headquartered there, losing a weighted average of 17.5%. That was followed by New York, where 55 companies lost revenue at a weighted average of 3% annually.


The number of technology companies in the Fortune 500 has steadily increased since 1955, and this sector saw the second highest revenue growth during this period.


The following table shows the growth rates of the 47 companies in this sector.



In this sector, 72% of companies had positive revenue growth, Social networking giant Facebook was the fastest growing company in this sector, with 51% annual revenue growth. Micron Technology, providers of semiconductors came second, with 40% revenue growth.


Netflix, an online video streaming platform was a new entrant to the Fortune 500 List in 2016, had the 4th fastest revenue growth in this sector, at 24%.


The fastest shrinking company in this sector was data communications and telecoms provider Motorola Solutions, declining 19%.


There were more companies in the US Fortune 500 with positive growth than negative, and the fastest growing companies grew at a quicker rate than rates of decline in the shrinking companies. Overall, however, the entire group actually had slightly negative growth in the period. In 2014, the combined revenues of the 500 companies were $12.069 trillion. In 2016, that figure stood at $11.995 trillion, a decline of 0.31%. It’s relatively stable at the top, however, it’s clear that at scale it becomes harder and harder to drive growth. And in the flux of the modern economy, there are plenty of companies whose biggest revenue days are behind them.