The end of insurance, transportation and retail

Extinct in 20 years: insurance, transportation and retail

According to Dave Jordan, global head, consulting and services integration at Tata Consultancy Services, these industries will be as good as gone by 2040. Insurance, according to Jordan, will be all but unnecessary with autonomous vehicles and will be absorbed into other transactions. Autonomous vehicles will eliminate car ownership altogether, and maker technologies — that is, the ability to print our own products will eliminate the need for retailers. TechRepublic

dis-rup-shun: While Jordan’s warnings of massive restructuring and redefinition of industries is good to contemplate, his predictions, with the exception of car ownership, are a bit extreme. There are many things in our lives to insure such as houses, so insurance for businesses and consumers will not go away but auto insurance will certainly constrict. Personal car ownership, except for hobbyists, does seem to be a necessary evil that we will be glad to eliminate. Retail, however, serves many purposes, including providing an important communal experience and for that reason, will not go away. Jordan, however, is certainly right to claim that these industries should brace for radical change.

Electric Hummer pickup truck coming in 2021

On the heels of the Tesla CyberTruck announcement comes news of an upcoming, all electric pickup branded Hummer, by General Motors. Release is expected in 2021. CNET

dis-rup-shun: Is it marketing irony that the beloved-by-some and hated-by-environmentalists Hummer is being reborn as an all electric vehicle? The giant gas guzzler was retired in 2010 at the time of GM’s bankruptcy. In an unexpected twist, electric vehicles became status symbols, thanks to Tesla and its CyberTruck announcement that has drawn mixed reactions, but plenty of reactions. The CyberTruck buzz has proved that buyers, including EV buyers, want original, exotic, edgy and even expensive models, and GM plans to deliver in an all new EV Hummer.

IBM’s Rometty follows Brin and Larry Page off the ship

Ginny Rometty has announced her departure from the CEO post at IBM. During Rometty’s eight years at the helm, the company’s value has dropped 24%, making it the worst performing large tech company. The next CEO, Arvind Krishna, comes from IBM’s cloud business. CNBC

dis-rup-shun: Rometty took a cue from Google founders Brin and Page and got out under cover of a strong economy and strong sector stock prices. IBM has been living on its strong brand and has been slow to change while Amazon, Google, the Big 4, Tata, Infosys and others have eaten its lunch. Rometty was slow to double down on cloud computing and shake up the old guard that makes up Big Blue, and the board never demanded fresh leadership. Now shareholders look to Krishna to pull off a miracle.

Apple updates its maps and Look Around

Apple has invested millions to upgrade its mapping data, relying less on partners and investing heavily on its own mapping data. These improvements will likely not be noticed by consumers, except that Apple’s Street View-like app, Look Around, that provides a person’s-eye-view of addresses, will be better. Google’s mapping technology has been, and likely will remain, well ahead of Apple, but the Cupertino company is striving to close the gap in hopes that iPhone users will not continue to favor Google Maps on their devices. Wired

dis-rup-shun: Online and interactive maps have become essential to life, whether tethered to an in-car navigation system, guiding an Uber or Lyft, or getting guidance on the streets. Advertisements, websites and weather services are inextricably linked to maps and autonomous vehicles will be critically dependent on mapping data. The company that owns the best maps will be to the rest of the online world what Amazon.com is to the online retail world…in control.

 

 

Android wins GM’s dashboards

Google’s Android is chosen for future GM dashboards

Google won an important battle to control in-car infotainment systems, when GM decided that Android will power its models starting in 2022. Android in car will mean seamless access to Google Maps and Google Assistant, beating Amazon’s Echo Auto out of that spot. GM will continue to offer Apple Car Play in models, accommodating both iOS and Android users behind the wheel. Wired

dis-rup-shun: Combining auto-makers’ in-car systems with smartphone interfaces makes for an awkward match up, especially if you frequently rent cars and try to learn every brand’s unique approach to important navigation, communications and music controls. Leveraging the ever improving smartphone interface is the preferred path, and making the car an extension of the smartphone (which needs to disappear while we drive) is the best, and safest, consumer experience. Expect the role of mobile operating systems to expand deeper into home controls, including music players, TVs, and kitchen appliances.

Must haves: a phone charger built into your walls

Debuting at the CEDIA Expo event is 4AMPS 4A-WCC2 charger with integrated cord . This is a DIY faceplate that anyone who has the courage to remove an electrical outlet face plate can slide into the exposed socket to retro-fit an existing socket. The result is an in-wall socket with added 3 foot retractable charging cord for charging both an Apple device (Lightning connector) and USB-C. The product sells for $35. CEPro

dis-rup-shun: Admit it — you have hid your charging cord from your roommates, your kids or your spouse, as it seems someone in the house always seems to be missing theirs and borrows yours. A built-in retractable cord that disappears when not in use is genius, and placed in a few strategic locations will improve the lives of more than a few people. Expect this kind of offering to be standard in homes and high-end hotels, alike.

Groupon’s offers on medical treatments a shock to doctors

ArsTechnica reports that doctors are aghast to learn that patients are using Groupon specials to shop for medical treatments such as mammograms, eye care and dental work.

dis-rup-shun: Memo to doctors: your services are becoming another consumer service that will be discounted, promoted and hawked, like carpet cleaning and brake inspections. The Internet has been slow to disrupt healthcare and bring the same conveniences and transparency that it has for travel, for book buying, and for restaurant reservations. But the open market, courtesy of the Internet and fueled by partnerships with consumer companies like CVS and Aetna and the entry of Amazon, has arrived. This will be great for consumers and insurers, but disruptive to doctors whose incomes will now be set by the market, not by the AMA.

Is $170M penalty a slap on Google’s wrist or historical?

Google agreed to pay fine of $170M to the FTC and the State of New York for violating COPPA rules designed to protect the identity of children. Google was targeting specific ads to children under 13, in violation of COPPA. The fine is the largest ever for violation of the privacy act, but has been criticized as “paltry” in relation to Google’s $137 billion in 2018 revenues. The company did agree, however, to use Artificial Intelligence to identify and protect children’s content going forward. CNN

dis-rup-shun: This penalty and controversy sounds very similar to Facebook’s $5 billion penalty in July for revealing personal information – also decried as being too lenient on a multi-billion dollar company. Here are the currents swirling around regulation of Big Tech firms: 1) Many government and business leaders are claiming that Big Tech is too powerful and anti-competitive and that their astronomical lobbying expenditures are buying leniency from the Feds. A series of investigations into Facebook, Google, Amazon and Apple are queued up for the remainder of this year, and the recent settlements set the tone for size of the penalties.  2) Apple has initiated a “good guy” campaign, building privacy protection features into its products at the public relations expense of Facebook and Google – increasing pressure on the industry to raise the privacy bar. 3) Google researchers have discovered a “zero day” hack of thousands of iPhones, creating a public relations embarrassment for the good guys at Apple. 4) Penalties levied against Facebook and Google are small relative to revenues, but some of the largest of their kind, leading one to believe that the Feds are firing a warning shot to test the pain points of both Big Tech and the public. Expect to see a series of relatively low penalties levied against Facebook, Google, Amazon, Apple and others in the next half dozen months.