Ben Kepes – iStart leading the way to smarter technology investment.

Digital disruption: a millennial’s perspective

Jennene Kelly — Mon, 15 Jun 2015 21:55:08 +0000

I spend a lot of time thinking about, and consulting with organisations about digital transformation and what it means to them. I’m mindful, however, that as a member of generation X, I see digital transformation as a disruption to the status quo, as opposed to being a natural part of the digital life I live.

As a father, I’m also aware that it is the millennials, the so-called digital natives, who will effect and live with the changes to come. As such I was keen to hear from this rising generation about their view of digital disruption.

Having spent a couple of days recently chairing a conference in Melbourne focused on digital disruption, and having taken the opportunity to have my 15-year-old son, Yonni, attend the event, I thought it opportune to get his perspective. I asked Yonni if he would like to write about his thoughts on digital disruption. What follows is his viewpoint about the move to digital – the perspective of a member of the generation who will create the next wave of change:

“As the world goes through a digital transformation and disruption, we must remember what will actually be changing. For me digital transformation means changing from an old manual way of doing things to a new system that uses technology to do business in new ways. Jobs will be replaced by new, different applications of technology and it will be my generation that will be filling many of these posts.

“I think the biggest challenge for us will be understanding the extent of the transformation. For example, we weren’t around when taxis were one of the main types of transport for hire, so we never saw the industry fully function with no Uber to challenge it. And although we are in this transformation we will never see the end result – it is part of an unprecedented, continual and rapid change. I believe that makes it a lot harder for my generation to understand the changes and to know where they should look for and find good jobs which are secure. A good company attracts good employees to enjoyable jobs. Employees who are flexible and like learning new skills, and employers that support them are what make a good place to work. If my generation wants to still be employed in jobs like these, then we need to learn these new technology-based skills and use them as best we can. It is also important that customers get to have a say when looking at business. Since my generation is the future consumer, we can offer great advice that will help shape the future of businesses.

“I also believe that as we slowly transition in to a digital world of some sort we will have our lives changed a lot by digital innovation. People now have too many “devices” in their homes, with the average number per person at nearly five. It’s a worry that more household items will be swapped for more devices with some sort of transmitter in them. The reason for my concern is because the devices will ‘take over’ people’s lives. Although having more devices per person is, in my opinion, a bad thing, they do have their benefits. These devices can now stay in contact with their owners and tell them, for example, when dinner is ready, what’s happening with the washing, or the temperature of the bath; little things in isolation, but with the potential to completely change our lives when combined. If this is happening now, then what will be happening in 20 years’ time?

“I think the biggest challenge for us will be understanding the extent of the transformation.”
Yonni Kepes, 15-year-old millennial

“It’s interesting that my generation is so fixated on what sort of phone we have but we don’t even stop to consider what digital disruption is doing to some businesses and what this could mean in terms of the way we live our lives. I believe that when my generation does see what digital disruption is doing they will simply pull a weird face, as they don’t understand it or what it is doing to the world since we will be viewing it from inside the middle of the transition. Then again, digital disruption will offer opportunities for us to look at companies and say ‘I think I can do better than them’. From there we will be able to build businesses taking advantage of other people’s lack of technological understanding. This will help to build a better system for future business.

“I believe that once my generation actually sees what is transforming then this world could turn in to a place where lots of different concepts will be used to make our life a lot easier.

“I’m very excited as this will offer many new opportunities which weren’t afforded to the generation before. I believe that with a good mindset my generation can use digital disruption to our advantage and make the world a much better place.”

ABOUT BEN KEPES//

Ben Kepes is a technology evangelist, an investor, a commentator and a business adviser. Ben covers the convergence of technology, mobile, ubiquity and agility, all enabled by the cloud. His areas of interest extend to enterprise software, software integration, financial/accounting software, platforms and infrastructure. Yonni Kepes Ben’s son and a Year 10 student at St Andrew’s College, Christchurch.

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On the subject of IPOs…

Jennene Kelly — Tue, 19 Aug 2014 00:55:35 +0000

Over the past few years I’ve been amazed and ecstatic at the growth of the technology start-up ecosystem in New Zealand. When I first started covering the space, the thought of having multiple technology IPO candidates, a pipeline of early and mid-stage companies and a general awareness of the technology industry as an enabler of GDP growth in New Zealand was dismissed as crazy. Flip to today when we have a company gunning for the number one slot on the NZX based on market capitalisation, where every day we read of another tech IPO and where my inbox gets hit with (very welcome) pitches from companies looking for advice and investment.

But as the industry has grown, we’ve also perhaps got a little ahead of ourselves. I was reminded of this fact when I recently spent the day in board meetings for two companies I’m involved with as an investor and director. This article isn’t about those companies in particular, but Mindscape and Common Ledger are good examples of what we should be striving for in New Zealand.

Take the latter company: recently emerged from Wellington’s excellent Lightning Lab programme, Common Ledger is doing a fantastic job of executing far beyond its age. The founders have brought together a team of highly skilled individuals that cover off the primary needs of a tech business: technology skills, general management, financial acumen and legal/business development. In terms of having every ‘t’ crossed and ‘i’ dotted in the journey thus far, COO Carlos Chambers is an exemplar of how to do things right. A former solicitor with a large New Zealand law firm, the guy works all hours of the day, wears tee shirts instead of a suit and walks around the office in bare feet. If there is a better example of function over form, I don’t know it.

I’m not saying that bare feet are an indicator of start-up success, but I’ll always be bullish about a company that lets its work do the talking. There’s no pretense, flash suits or marketing fluff with these guys – it’s about focusing with laser attention on what needs to be done both behind the scenes and within the market.

Mindscape, on the other hand, is a far more developed business. They’ve been going for several years, have existing products and good revenue streams. But when it came time to go to market to raise some capital to scale their new product, Raygun.io, founders JD Trask and Jeremy Boyd didn’t do a fancy road show or try and get a highprofile talking-head on board to give them added credibility. No, they quietly talked to investors about the opportunity, put together a term sheet and continued to focus on their business. They raised a significant, but appropriate, amount of money and got back to work. Execute, execute, execute.

Let’s contrast that with some Silicon Valley examples. A couple of years ago a start-up called Color got significant attention when it raised over $40 million for a pre-revenue (hell, it was actually pre-product even) start-up. Many claimed it was the quintessential demonstration of the hype surrounding the Silicon Valley tech ecosystem. Needless to say Color had a couple of ill-fated product introductions and then the team sloped off to greener pastures.

Then there is the mobile application Yo which after being suggested earlier in the year as an April Fools joke, actually launched and gained $1 million in funding just a few months ago. The application, believe it or not, simply allows users to send the word ‘yo’ to each other. It’s saving the world, two characters at a time. If there is a starker opposite to what my first two examples are doing in terms of real business, I’d be keen to see one.

Which leads me to ask what we should be doing here in New Zealand to get a more vibrant and sustainable ecosystem going? Frankly, it comes down to moving away from the typical New Zealand approach of jumping on bandwagons, and moving instead to a culture of building viable businesses that are in context with our culture, our situation and our opportunities. That’s not to say that there’s not a place for billion-dollar businesses to be built in this country, but in rushing headfirst to identify and invest in the next big thing, we might just lose sight of the business fundamentals – build a product that people want, sell it at a price that is greater than it cost to build, then rinse and repeat. Simple, really, so let’s get back to business.

ABOUT BEN KEPES//

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Frankly speaking… honesty’s the best online policy

Jennene Kelly — Tue, 10 Jun 2014 02:41:03 +0000

Many readers will recall a few years ago when the “social media guru” video hit the interwebs – it’s worth a quick watch (scan the QR code opposite) but for those who haven’t seen it, suffice it to say it was all about a fictional social media consultant who went into an established organisation to show them how to “do social”. Chaos ensued and the organisation was left paying a lot of money for very little of value. While a fictional tale, it is, alas, one that is played out far and wide within large organisations that feel threatened by all the cool kids gaining mindshare through social media and want a piece of the action.

Now, I never have been, wouldn’t profess to be, and hope someone would push me off a bridge if I’m ever tempted to become, a “social media guru” but, at the same time, I am someone who spends a lot of time on social media, have managed to build something of a following, and have leveraged social tools to build a presence – all from a lifestyle block in rural North Canterbury. In so much as that gives me a credible platform to espouse from, I thought I’d share my views on social media for business. Here it is: it’s just communication. Frankly, that’s about it.

Perhaps our most well known tech success story, Xero, built its early reputation through the regular blogging of its co-founder and CEO, Rod Drury. Back when Xero was a completely unknown business, and Drury was only known by a small, close-knit group of tech people, the company built a strong presence via the insightful, sometimes opinionated, and regular blogging (and later tweeting) of Drury. There were no social media strategy, PowerPoint presentations (at least I strongly assume not) and no PR firm handled the Xero or Drury social media accounts. It was simply a collection of off-the-cuff, honest and engaged missives from someone intimately aware of the business and the environment it worked within.

Having been on the receiving end of some of the more brutally honest comments from Drury, I can confirm that sometimes genuine social media is bruising. But no more bruising than the raw conversations that happen over a good old Kiwi BBQ or beer with the lads.

And this really gets to the crux of the matter. If we look at the fictional, but realistic example of the social media guru video, we have a situation where a large business thinks it can outsource its social media involvement in the same way it can outsource its PR functions. Alas, it cannot. Having a consultant tweet or blog on your behalf is akin to having a handler answer all your questions at a family BBQ – it makes the conversation stilted, inauthentic and unnatural. It does nothing to make you or your organisation feel like someone at the center of the conversation and it harms the brand you’re trying to portray.

Really, social media is pretty easy to master. Be open. Be Honest. Take criticism with good humour. And make the people at the end of the line feel like they’re having a conversation, not being talked at. Your social media presence is an extension of yourself and your company. It’s a tool to articulate your culture, your values and your humanity. Don’t try and turn it into a machine, and don’t think you can come out of the blocks and succeed from day one – like all good things it takes care and nurturing. And if you ever want a chat, hit me up on Twitter. Just don’t expect my stream to be polished or on-message, that’s not the idea….

ABOUT BEN KEPES//

Ben Kepes is a technology evangelist, an investor, a commentator and a business adviser. Ben covers the convergence of technology, mobile, ubiquity and agility, all enabled by the cloud. His areas of interest extend to enterprise software, software integration, financial/accounting software, platforms and infrastructure.

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Goodbye status quo

Jennene Kelly — Thu, 10 Apr 2014 22:07:57 +0000

It’s easy for us here in the antipodes to feel a little insulated from the broader trends affecting business and, by extension, to think that the status quo will always exist. But we only need to look at local examples of existing businesses being disrupted to see that there are no ‘solid grounds’ any more. From the telcos being affected by the widespread use of applications, which are replacing voice communications, to TradeMe shaking up the way people buy and sell goods, we have a tendency that misses revolutions when they occur over a period of time.

Today there are a number of macro trends that I think make increasing disruption likely. We live in a society that is ever more comfortable doing things online, where technology is becoming more accessible every day, and both internet connectivity and devices that can be connected to the internet are pervasive. Together these factors mean the time is ripe for yet more traditional businesses to be threatened by as-yet unknown players.

We’re fortunate here in Australia and New Zealand because our technology uptake tends to lag a little behind other countries, so we can observe changes overseas, and intuit what it will mean for us in the short term. Below are a few notable examples of disruption that may make waves on our shores in the near future.

Uber is a service that allows consumers to order a cab quickly and easily from their smartphone. Billing is integrated so there is no more fumbling with credit cards when you have an important meeting to go to. But Uber is also disrupting the supply-side and enabling anyone with a car and some free time to set themselves up as an independent taxi company. By combining smart technology (online payments, location-based services and mobile messaging) and new business models, Uber is disrupting the taxi industry.

A plethora of companies are offering streaming music services. Services like Spotify, Pandora and iTunes radio combine a user’s social circle and offer her up music that is likely to be a good match given her previous listening habits and the listening preferences of her friends. Apple already disrupted the status quo of buying music by the album and these services are going even further, reinventing the entire listening process.

A big area of attention in the US is the so-called ‘quantified self’. Individuals are using a myriad of hardware devices (FitBit, FuelBand, Jawbone) alongside different internet services in order to better understand the way their bodies work. Many see the rise of this self-analysis as a short step to custom-designed fitness and medical services, and the rise of individual genomic testing services such as 23andme makes this even more feasible.

3D printing, once seen as simply an opportunity to print crappy little trinkets, is now breaking out into much more important areas and researchers have already ‘printed’ working human organs and replacement joints.

All of these examples would have seemed like science fiction a few years ago and the majority of them are yet to have much impact on us here, but as examples of how broader technology is having an impact on some traditional areas, they are worth thinking about.

While it’s easy to think that we can hide from these sorts of changes, the challenge for all of us as we head into 2014 is to re-evaluate our businesses and how they work and try and intuit what these broader changes in society, in the commercial landscape and in technology mean for us. One thing is certain however, and that is that change is the new constant.

ABOUT BEN KEPES//

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