Next Headline? Google acquires General Motors! Software eats Hardware!

Is this the next Headline? Google acquires General Motors or General Motors acquires Google? Software eats Hardware! That’s clear!

SoftwareEatsHardware

Following my blog I put together a quick overall summary of slides to explain the fundamentals that are disrupting. The OEMs have the greatest disruptive opportunity to be the next “valleys”. The other way around is also the disruptive opportunity.

“THE NEXT “MOBILE” IS THE “AUTO-MOBILE” AND DETROIT THE NEXT VALLEY?”
The automobile OEMs are in the best position to disrupt Silicon Valley and become the next valley. And so are the industrial OEMs from GM and GE to Boeing, to Lockheed, John Deere and Philips. But why?

http://gerardjrego.com/2013/11/19/the-next-mobile-is-the-auto-mobile-detroit-the-next-valley/

1. Software as Algorithms in business models “Ecosystem APIs” eat “Pure Hardware” companies
2. (Software) Marketplaces disrupt Hardware companies (Laws of digital)
3. Culture triumphs “Things”

Screen Shot 2013-11-20 at 9.48.09 AM Screen Shot 2013-11-20 at 11.35.59 AM Screen Shot 2013-11-20 at 11.36.04 AM Screen Shot 2013-11-20 at 11.36.09 AM Screen Shot 2013-11-20 at 11.36.13 AM Screen Shot 2013-11-20 at 11.36.19 AM Screen Shot 2013-11-20 at 11.36.26 AM Screen Shot 2013-11-20 at 11.36.32 AM Screen Shot 2013-11-20 at 11.36.36 AM Screen Shot 2013-11-20 at 11.36.41 AM Screen Shot 2013-11-20 at 11.36.47 AM Screen Shot 2013-11-20 at 11.36.52 AM Screen Shot 2013-11-20 at 11.36.57 AM Screen Shot 2013-11-20 at 11.37.02 AM Screen Shot 2013-11-20 at 11.37.07 AM Screen Shot 2013-11-20 at 11.37.13 AM Screen Shot 2013-11-20 at 11.37.21 AM Screen Shot 2013-11-20 at 11.37.26 AM Screen Shot 2013-11-20 at 11.37.31 AM Screen Shot 2013-11-20 at 11.37.36 AM Screen Shot 2013-11-20 at 11.37.44 AM Screen Shot 2013-11-20 at 11.37.49 AM Screen Shot 2013-11-20 at 11.37.54 AM Screen Shot 2013-11-20 at 11.37.59 AM Screen Shot 2013-11-20 at 11.38.04 AM Screen Shot 2013-11-20 at 11.38.10 AMScreen Shot 2013-11-20 at 11.43.10 AM Screen Shot 2013-11-20 at 11.46.13 AM Screen Shot 2013-11-20 at 11.38.15 AM Screen Shot 2013-11-20 at 11.38.20 AM Screen Shot 2013-11-20 at 11.38.25 AM Screen Shot 2013-11-20 at 11.38.30 AM

Next Headline? Google acquires General Motors! Software eats Hardware! Not really, after all GM would love be the platform of choice as a marketplace and be the mCommerce company. Google or Apple or anyone else may look at the auto OEM as a supplier like a mobile phone.

The car becomes as a configurable platform with software APIs that enable ecosystem commerce. The other way around is also possible and this intersection is where the disruption is.

As John Deere CEO Sam Allen said in a Sep 2013
(http://money.cnn.com/2013/08/29/leadership/deere-sam-allen.pr.fortune/)

“Deere is becoming more of an infotech business. Does that change the way you manage it? Most people don’t realize that one of our 8000 Series tractors has more computing power on it than the first space shuttle. We have reorganized so we can have a group that does what we’ve traditionally done well, which is the hardware and the embedded software that goes with it, and another group, where I’ve brought in people from places likeMicrosoft to help us with the application side of this.”

Love to hear your thoughts, while this plan is WIP. It’s clear software (APIs) eat pure play hardware ecosystems. Who’s next?

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16 thoughts on “Next Headline? Google acquires General Motors! Software eats Hardware!

  1. Ford Says ‘Connected Car’ Success Rides on Tech Firm Efforts
    By Alan Ohnsman – Nov 20, 2013 3:41 AM GMT+0530

    “It’s important for us to acknowledge that the real value for customers with the connected car is outside of our auto industry,” Farley said today in a speech at the Los Angeles Auto Show. “For the car companies, it’s pretty clear the mobile digital economy is not in our hands.”

    http://www.bloomberg.com/news/2013-11-19/ford-says-connected-car-success-rides-on-tech-firm-flexibility.html

  2. “GM would love be the platform of choice as a marketplace and be the mCommerce company. Google or Apple or anyone else may look at the auto OEM as a supplier like a mobile phone”

    if they do they miss the key change in the market force–customer-centricity is the name of the game … and by that i mean the user on the wheel and or in front of the screen … winner take all market … success will come to the one who brings a bundle of parts as a whole to the customer … collaboration, not competition … it’s a the network is the business … technology is the easy part … look at the farmers in india .. it’s putting it together with the user in mind

  3. to execute properly requires a costumer-centric busines approach and leadership for alignment everyone towards the user … very different busines model … key is in building the right company … design thinking … open culture … strong values, etc. … and EXECUTION … right system in place … i’m going to get there ;)

  4. How big data is changing the cost of insurance

    This, he says, is the future of car insurance: being able to monitor individual drivers to give them lower prices but also to make them better drivers. “Now that we can observe directly how people drive, we think this will change the way insurance works,” says Mr Pratt, who adds that Progressive has more than a trillion seconds of driving data from 1.6 million customers.

    http://www.bbc.co.uk/news/business-24941415

  5. The Gigaom interview: Bill Ford on the new golden age of automotive innovation
    s Ford a tech company? It’s easier to tie Ford’s great age of innovation to the era of the industrial revolution than the internet revolution. But Ford Executive Chairman Bill Ford wants to convince both car buyers and the tech industry that one of the most iconic companies in American history is just getting started.

    http://gigaom.com/2013/12/09/the-gigaom-interview-bill-ford-on-the-new-golden-age-of-automotive-innovation/

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