Re-imagination: the $36 Trillion addressable market

We are big fans of Mary Meeker, venture capitalist and former Wall Street securities analyst who is now a partner at Silicon Valley venture capital firm Kleiner Perkins Caufield & Byers. Her annual Internet Trends analysis was presented at D10 today. Usually devoured as one of the best compendium of global trends data, this time we found something else to be the star of the show, Internet statistics notwithstanding. The full deck is available here.

From slide 36 onwards, the idea of disruption itself is re-imagined, by demonstrating a series of ‘then’ and now’ montages. Life stories, news, note taking, drawing, photography, diaries, scrapbooking, magazines, books, music, sound, concerts, video, production, commercialisation of talent, home entertainment, TV, communication, navigation, sports, home improvement, taxis, cars, yellow pages, coupons, fast food, cash registers, window shopping, marketplaces, manufacturing, personal services, funding, lending, borrowing, business collaboration, recruiting, focus groups, data, signatures, healthcare, learning, engagement, education, satisfaction, subsidies, crime awareness, thermostats, pet care, feeds. Phew. We think the complete list is important to convey the enormity of re-imagination, and why it is more than disruption.

What does this mean for the ICT industry?

Mary’s analysis leading to the aggregated market capitalisation of £36 trillion (context: total GDP of 27 EU member states is c $17 trillion) provides a few pointers and our interpretation suggests risk/reward for the ICT industry:

  1. nearly ubiquitous high-speed wireless access – blessed are the network upgraders. Budgets will be found.
  2. ultra competitive markets for mobile operating systems and devices. Vendors without deep pockets need not apply.
  3. leading to inexpensive devices, access and services (Apps). Can your marketing and sales cope with volume for attention, engagement and transactions? Or have you successfully segmented so you can focus on aggregators?
  4. fearless consumers and entrepreneurs. Fortunately for the ‘establishment’ in the ICT industry who find it difficult to take risks, there are equally fearful customers. For a while longer, anyway.
  5. beautiful, relevant, personalized curated content – not just for consumers, but for the professional who has become accustomed to ether standards as a consumer. The industry as a whole has been slashing marketing budgets, but as cost of delivering coherent messages is also declining, the only barrier is consistent thinking within vendor companies.
  6. unprecedented combination of focus on technology AND design. We see design extending to experiences. The industry will face demand to step up its game and extend consistent thinking from strategy and marketing to customer service.

Image credit: Mary Meeker by All Things D

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Technology industry analyst focused on tracking consumption and purchase models. Managing Partner at Governance Reviews. Content Manager for the Canalys Channels Forum tour. Thought leadership coach for RainmakerFiles.

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