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Digital Revolution

What would be your reaction when faced with the estimated market values of Uber and Airbnb as US$ 51 and 26 billion respectively? Some people may say that it is another speculative bubble, as happened in the late 90's, and that these companies can' be worth more than traditional companies. Others will say that they are reflections of a new economy, capable of remodeling activity segments, completely transforming the rules of the game.

To help clarifying this issue, we at Cosin will evaluate the Uber market.

Many people are aware of the application to schedule passenger transportation. However, not everyone knows its potential as a full urban transportation solution, including home deliveries.

Between passenger rides, Uber drivers can make deliveries, according to their routes. In this model, the company will compete in the market dominated by companies such as UPS, FedEx, Post Office, with the advantage of ensuring greater capillarity without investment in assets.

It is a market of several billion dollars in the US alone. And if we consider the 43 countries where Uber operates, this amount becomes exponential. Unquestionably, the sky is the limit for the company that was born in 2009.

It is true that we are increasingly digital and solutions are undeniably increasingly smart. Whatsapp, Facebook and Linkedin are applications present in our daily routine for communication and relationships. Furthermore, people who drive in large urban centers know the value of Waze. Spotify and Music are once again reinventing the music industry.

We are certain that the digital revolution, which is already occurring now, is changing customer behavior, labor relations, processes, business models, and it will probably change your segment. All this justifies the creation of companies and business models so relevant in such a short time.

The market is used to the traditional concept of companies that have operating models, processes, systems and people, buy supplies and services from suppliers and sell products and services to customers. The logic for the digital world changes a little. The company will develop intelligence, from automated analysis of algorithms based on thousands of pieces of collected information.

Interactivity, result of this intelligence that is created, presented through mobile platforms, is one of the great secrets of this successful model. However, the community, likewise, has an important role, as it will produce services or new information that contribute to the creation of intelligence and experience - feeding the model continuously.

That is, the model encourages less defined borders, the company depends not only on itself to produce services, creating a differentiated, interactive experience, as it also depends on the community.

In addition to the areas we have already highlighted, for us at Cosin, it is essential that in this model there is a "win - win" relationship among all parties. The conceptual model, which we explain below, explores the vision of these interactions in this new Digital world.

revolucao digital

  • Intelligence: algorithms and analyzes produced by the company's intelligence area, based on processing of large volumes of information (big data) acquired by applications (internet of things). All in order to optimize, predict, direct decisions and customize.
  • Experience: mobility, social media, usability, brand and content that make the experience relevant to the audience, the moment and the platform.
  • Community: business model where the community becomes part and not just a consumer or provider. There is a "win - win" relationship, as mutual content is provided.

Digital concept is applied to disruptive innovations (new business development), evolution of business models (evolution of the current business to combine current platforms to digital ones) and even incremental innovations (optimization of existing processes using digital platforms).

Within disruptive innovations, new business models will be created for traditional industries. We will use the graduate school segment as an example.

A school sets a curriculum for a course, hires and develops faculty, attracts students and provides the corresponding service. In a digital world, it is possible to develop intelligence to set a curriculum customized for each student, all in accordance with his or her history of courses and grades, rankings, labor market information, professional career profile and compensation.

It is easy to imagine a different learning experience using mobility, tutoring, classroom courses, trips abroad and in-company training.

All this supported by an open community of independent teachers, businesses, schools, publishers and others.

It is undeniable that, as a product or service becomes relevant in the community, it ends up creating a successful business model, difficult to be copied by competitors. We can then draw an analogy of this model with several segments such as consulting, medical services, law offices, and many others.

Looking at the perspective of evolution models, using the same example of the education sector, schools are already providing models of blended courses between EAD, classroom courses, use of computing resources in the classroom, to boost student learning, combining traditional processes with an online process, using the best of both worlds.

In the case of the education sector, capturing new students can be done via internet, using social networks, combining school content, reviews of students, user behavior information on multiple platforms, optimized by intelligent algorithms and making these processes digital.

One of the key issues of the Digital model is how relevant you or your organization become in the community. Of course, who starts first and begins to create relevance faster, usually establishes an advantage over the others, or even an almost insurmountable barrier to entry. Moreover, in addition to Digital being a reality, it is already running at gigabit speed. You better speed up.

Count on our experience and professionalism to meet this new challenge.

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