6A – Identifying Opportunities in Economic & Regulatory Trends
Economic Trend 1 - Cost of college outgrowing wages
Source
https://www.usatoday.com/story/money/personalfinance/columnist/2018/09/14/college-finances-economic-trend-shifting-wages-stagnant/1160472002/
Why an opportunity exists
Rising tuition fees have led to high debt for young adults. This is due to growing costs of degrees are outpacing first year wages. I believe there is a market out there to get good talent for companies but these individuals are those that struggle with their finances or do not agree with the traditional education system. There are times where individuals have decided what they want to learn and simply do not find a purpose in a general education / learning certain modules.
Hence, I feel there is an opportunity to work with both companies/businesses as well as students to create a mutually beneficial situation.
Prototypical customers
Young college students
Businesses
Difficult to exploit or not
The industry itself has high barriers to entry as it would be hard to create a education entity from the start as reputation is everything. Hence partnerships with good companies is very important.
Why did I see an opportunity
I always thought that part of the education system is flawed (looking at various education systems around the world) , where it was created to make "sheep" and taught generic knowledge to students which they might not ever use in the workforce. I always feel hands-on experiences and real work experience like internships/apprenticeships mattered the most. Even my mother who is a HR head told me that perhaps in future universities may be all online. Hence, I think there might be opportunities to not online bring down the costs of education , but to make education more targeted and applicable to the real world and real businesses
Economic Trend 2 - A-Commerce (Automated Commerce) - Users are getting accustomed to services that suggest them the best product or next best product and best deals
Source
Trend 1 - https://trendwatching.com/quarterly/2017-11/5-trends-2018/
Why an opportunity exists
As users are getting more tech savvy and reliant on digital services to bring them the goods and services they need , businesses must adapt and create the user experience they wish to have or will want to have. There is so much information on the web and users will feel overwhelmed with the amount of data and information they have to go through. Perhaps having a one-stop site that helps scan the internet for the best deals for a product and similar looking ones could be an opportunity. It can leverage on visual analytics of product pictures as well as make use of virtual assistants like a butler to make the experience a lot more personal
Prototypical customers
Heavy Online Shoppers
Bargain hunters
Difficult to exploit or not
It is probably very difficult to compete with big tech companies with lots of capital but when there are gaps left unfilled by existing solutions , the opportunity is ripe for the taking. Such technology might not be too hard to duplicate for new entrants but more sophisticated and refined services, like accuracy of a virtual assistant, might be hard to duplicate
Why did I see an opportunity
Regulatory Changes 1 - Leading technology companies such as Google, Facebook and Amazon are facing backlash around the world for various reason including privacy issues. New laws put in place to protect users
Source
https://www.bloomberg.com/news/articles/2018-07-27/facebook-says-eu-privacy-law-caused-user-drop-europe-disagrees
https://www.inc.com/marc-emmer/18-business-trends-that-will-shape-world-in-2018.html
https://www.cnn.com/2018/03/29/opinions/tech-backlash-facebook-google-opinion-baker/index.html
Why an opportunity exists
An opportunity exists to create a tech company that is more open to users and enable users more control of their lives via technology. A unique brand can be born to portray itself as a tech company that brings technology that brings freedom to its users and not take advantage of its users. For example , a social network that pays users a large portion of its advertising revenue , giving incentives to users as well as reducing the frustration of advertising. Giving users a transparent policy to sell their data in order to earn money/credits is a potential opportunity
Prototypical customers
Millennials - especially those trying every possible way to make some money to survive
Difficult to exploit or not
It is easy to replicate but gaining the "first advantage" and leveraging on network effect will give one the advantage.
Why did I see an opportunity
Having a background in technology and observing the "bad behavior" of big tech companies especially those I had looked up to had inspired me to think of something to combat the negativity built by tech companies. I believe the internet should be for the people and businesses have been taking advantage of the system.
Regulatory Changes 2 - Cryptocurrency and Blockchain being accepted more and more and becoming "legal" and being accepted by financial institutions
Source
https://bitsonline.com/bitcoin-etf-approval-new-sec-appointee/
https://www.newsbtc.com/2018/09/05/indian-regulatory-authorities-open-to-common-sense-cryptocurrency-regulation/
Why an opportunity exists
With cryptocurrencies being accepted more and more and governments allowing it legally, it would make life a lot easier in many forms. There have been future contracts already implemented and governments bodies like the US SEC are considering the approval of cryptocurrency Exchange Traded Funds(ETFs)
With such adoption, tourists can now own one currency and pay with it in every country they visit without ever having to deal with currency exchange which brings high fees charged by banks for credit cards or the buy-sell spread at money changers.
Hence, creating a system for both consumers and businesses to transition to the new digital money age and starting using it is a huge opportunity.
Prototypical customers
Tourists/Global travellers/Business travellers/Exchange students
Online shoppers
Businesses /Merchants
Anyone that uses digital banking/ digital payments
Difficult to exploit or not
Financial services are relatively easy to duplicate but it will be hard to survive if you do not have the demand and customers , so creating a network is important as the network effect will create higher barriers of entry to others. However, there are opportunities to disrupt the existing financial services due to incompetencies and unhappiness.
Why did I see an opportunity
As a web and mobile developer , this means such a new space in the technology world gives developers a chance to build the new big tech app that leverages on the benefits blockchain and cryptocurrencies can bring to the world which could essentially affect almost every industry and the world economy.
Source
https://www.usatoday.com/story/money/personalfinance/columnist/2018/09/14/college-finances-economic-trend-shifting-wages-stagnant/1160472002/
Why an opportunity exists
Rising tuition fees have led to high debt for young adults. This is due to growing costs of degrees are outpacing first year wages. I believe there is a market out there to get good talent for companies but these individuals are those that struggle with their finances or do not agree with the traditional education system. There are times where individuals have decided what they want to learn and simply do not find a purpose in a general education / learning certain modules.
Hence, I feel there is an opportunity to work with both companies/businesses as well as students to create a mutually beneficial situation.
Prototypical customers
Young college students
Businesses
Difficult to exploit or not
The industry itself has high barriers to entry as it would be hard to create a education entity from the start as reputation is everything. Hence partnerships with good companies is very important.
Why did I see an opportunity
I always thought that part of the education system is flawed (looking at various education systems around the world) , where it was created to make "sheep" and taught generic knowledge to students which they might not ever use in the workforce. I always feel hands-on experiences and real work experience like internships/apprenticeships mattered the most. Even my mother who is a HR head told me that perhaps in future universities may be all online. Hence, I think there might be opportunities to not online bring down the costs of education , but to make education more targeted and applicable to the real world and real businesses
Economic Trend 2 - A-Commerce (Automated Commerce) - Users are getting accustomed to services that suggest them the best product or next best product and best deals
Source
Trend 1 - https://trendwatching.com/quarterly/2017-11/5-trends-2018/
Why an opportunity exists
As users are getting more tech savvy and reliant on digital services to bring them the goods and services they need , businesses must adapt and create the user experience they wish to have or will want to have. There is so much information on the web and users will feel overwhelmed with the amount of data and information they have to go through. Perhaps having a one-stop site that helps scan the internet for the best deals for a product and similar looking ones could be an opportunity. It can leverage on visual analytics of product pictures as well as make use of virtual assistants like a butler to make the experience a lot more personal
Prototypical customers
Heavy Online Shoppers
Bargain hunters
Difficult to exploit or not
It is probably very difficult to compete with big tech companies with lots of capital but when there are gaps left unfilled by existing solutions , the opportunity is ripe for the taking. Such technology might not be too hard to duplicate for new entrants but more sophisticated and refined services, like accuracy of a virtual assistant, might be hard to duplicate
Why did I see an opportunity
Using my background in business and technology , it is the very reason why I got into both fields. Businesses will and have to leverage on technology as it creeps into every part of our lives. There will always be an advancement in our standard of living and the customer experience will get more and more personalized through such digital solutions
Regulatory Changes 1 - Leading technology companies such as Google, Facebook and Amazon are facing backlash around the world for various reason including privacy issues. New laws put in place to protect users
Source
https://www.bloomberg.com/news/articles/2018-07-27/facebook-says-eu-privacy-law-caused-user-drop-europe-disagrees
https://www.inc.com/marc-emmer/18-business-trends-that-will-shape-world-in-2018.html
https://www.cnn.com/2018/03/29/opinions/tech-backlash-facebook-google-opinion-baker/index.html
Why an opportunity exists
An opportunity exists to create a tech company that is more open to users and enable users more control of their lives via technology. A unique brand can be born to portray itself as a tech company that brings technology that brings freedom to its users and not take advantage of its users. For example , a social network that pays users a large portion of its advertising revenue , giving incentives to users as well as reducing the frustration of advertising. Giving users a transparent policy to sell their data in order to earn money/credits is a potential opportunity
Prototypical customers
Millennials - especially those trying every possible way to make some money to survive
Difficult to exploit or not
It is easy to replicate but gaining the "first advantage" and leveraging on network effect will give one the advantage.
Why did I see an opportunity
Having a background in technology and observing the "bad behavior" of big tech companies especially those I had looked up to had inspired me to think of something to combat the negativity built by tech companies. I believe the internet should be for the people and businesses have been taking advantage of the system.
Regulatory Changes 2 - Cryptocurrency and Blockchain being accepted more and more and becoming "legal" and being accepted by financial institutions
Source
https://bitsonline.com/bitcoin-etf-approval-new-sec-appointee/
https://www.newsbtc.com/2018/09/05/indian-regulatory-authorities-open-to-common-sense-cryptocurrency-regulation/
Why an opportunity exists
With cryptocurrencies being accepted more and more and governments allowing it legally, it would make life a lot easier in many forms. There have been future contracts already implemented and governments bodies like the US SEC are considering the approval of cryptocurrency Exchange Traded Funds(ETFs)
With such adoption, tourists can now own one currency and pay with it in every country they visit without ever having to deal with currency exchange which brings high fees charged by banks for credit cards or the buy-sell spread at money changers.
Hence, creating a system for both consumers and businesses to transition to the new digital money age and starting using it is a huge opportunity.
Prototypical customers
Tourists/Global travellers/Business travellers/Exchange students
Online shoppers
Businesses /Merchants
Anyone that uses digital banking/ digital payments
Difficult to exploit or not
Financial services are relatively easy to duplicate but it will be hard to survive if you do not have the demand and customers , so creating a network is important as the network effect will create higher barriers of entry to others. However, there are opportunities to disrupt the existing financial services due to incompetencies and unhappiness.
Why did I see an opportunity
As a web and mobile developer , this means such a new space in the technology world gives developers a chance to build the new big tech app that leverages on the benefits blockchain and cryptocurrencies can bring to the world which could essentially affect almost every industry and the world economy.
Hi Cory! I also have a background in technology, very cool and useful. What you stated in trend 1, I also get overwhelmed by the excess of information on the web. I've used a one-stop site to find deals on designer clothing before. Sites like these are the perfect middle man. It. makes the process way shorter and more user friendly. Visual analytics always heighten the user experience as well.
ReplyDeleteHi Cory! I really enjoyed your first economic trend as that is a problem we are all currently dealing with. I often feel that my classes aren't preparing me for my future jobs until I reach my junior and senior year of college. Many students face the issue that businesses are looking for students who have over achieved so much that it has become the norm. An opportunity certainly lies in the ability to teach students what they will be doing in a cheaper, more condensed fashion.
ReplyDeleteHi Cory,
ReplyDeleteI always look forward to reading you blog posts because they are so clear and detailed. I can relate to your first point the most as a college student. It would be really interesting and obviously beneficial to see that opportunity become exploited. I wish that college students did not have to spend so much money on some of the extra classes that wont really show us knowledge we need for our future careers.