Is this the next Headline? Google acquires General Motors or General Motors acquires Google? Software eats Hardware! That’s clear!
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?
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”
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
“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?
- General Motors CEO: 4G is Coming to GM Cars in 2014 (digitalmarketingcourses13.wordpress.com)
- AT&T, General Motors to sell 4G LTE-connected cars next year (reviews.cnet.com)
- John Deere tractors are getting smarter all the time http://money.cnn.com/2013/08/29/leadership/deere-sam-allen.pr.fortune/
- The next “mobile” is the “Auto-Mobile” & Detroit the next Valley? (gerardjrego.com)