Bidding adieu to 2018 with a few key learnings

It’s that time of the year when we have this quaint feeling that the year flew by ever so quickly. Looking back at the unkept resolutions of last year, we draw up a renewed list of resolutions for the next year.

Alongside the nostalgia, let me share with you a few key events of 2018 that in my opinion have some great learnings to offer for all of us.

1.    Technology, talent and transformation: The year saw a unique collaboration between human talent and machine technology that led to transformational change and innovation. Be it work in the field of manufacturing, medicine or pure science research, some of the key innovations are mind boggling and will change the way we live.

SpaceX is a wonderful example where a private travel to space may soon become a reality. The maverick founder of Space X, Elon Musk, even went on to announce that he may soon relocate to Mars. Until now, we had imagined of relocating to cities, countries and now it is a new planet altogether. The year saw transformative work in the area of mobility, genetic science and manufacturing. Gasoline being replaced by batteries for transportation seems to be plausible in the next decade, and can have a lasting effect on crude oil, a key economic barometer since the last century.

2.    Speed and service redefine selling: The debate between brick & mortar versus online seems to have somewhere settled mid-way to the ‘brick & click’ model. With Indian laws being relooked, ‘drone delivery’ is becoming real, although the first pizza delivery in Mumbai landed in a few controversies. With such disruptive approaches, speed and service will define sales success in the near future. Across industries, both B2B & B2C, a unique blend of tech intelligence and human hands will redefine sales and customer service.

Today, customers want everything at their doorstep, right now! Dunzo is an app whereby you can order anything, however small or trivial. Be it a pack of cigarettes or your forgotten mobile charger from your home, you can be at peace when it comes to running errands. Google’s first funding in India happened to be Dunzo, a proof in the hyper local deliver model. This is proof that hyper localization and last mile sales will separate the men from the boys.

3.    Entrepreneurial energy replacing generational wisdom: The year saw significant business successes and wealth creation among new age and first-generation entrepreneurs, rather than inheritance led wealth. With a world where unpredictability across socio-political structures is the new norm, risk taking entrepreneurs delivered significant business growth.

Jeff Bezos topped the wealth ranking list almost through the year, followed by Bill Gates and Warren Buffett. The three men with a decade or so of an age gap, are first generation entrepreneurs who have built businesses on new, disruptive ideas and scale. Going ahead, generational wisdom passed down through inheritance will not guarantee success, rather it will become a burden weighed down with legacy and tradition. In 2018, the top 10 wealthiest individuals had 50:50 representation from new age and traditional industries with Facebook and Oracle founders alongside the above three.

4.    Innovative ideas over industrialization: The days of setting up large industries and plants as a way to create growth were challenged through innovative ideas that disrupt the way business is being done. The year saw few of the most innovative ideas that solved a customer problem through identifying and solving an inefficiency, gain better consumer acceptance than most products and offerings. Significant capital (mostly private) being pumped into ideas that can disrupt the current way of doing business rather than for setting up additional production capacity is the new trend.

The recent announcement by Ritesh Agarwal, the 25-year-old founder of unicorn Oyo Rooms is a great example. Overtaking the largest hotel chain Marriott by the number of rooms (keys) by 2023 is an audacious goal being fulfilled by solving a serious inefficiency. This will be achieved without building a single additional room but by an aggregation model driving up significant occupancy efficiency. Such disruptive ideas are attracting growth capital, with Softbank’s Vision Fund, the world’s largest technology fund recently leading a $1 billion investment in OYO Rooms. The fact that this investment was not done in any hotel chain to build physical assets, showcases that industrialization and valuations based on physical assets is slowly giving way to disruptive ideas.

5.    Compassion alongside capital: 2018 was a year whereby the world’s wealthy gave away significant amount of their wealth towards societal causes. Till few years back, the wealthy were known to be silent in this area but today, few of the richest in the world and in India, have pledged their wealth for the betterment of society. Compassion and capital will go hand in hand as it will help bridge the inequality gap and provide resources for correcting the same in a measurable and time bound manner.

From Azim Premji to Anil Aggarwal to Shiv Nadar, leading Indian business leaders have pledged a maximum of their wealth and earnings towards a cause. Today, we see the wealthy apportioning a significant part of their wealth to human and socio-economic causes. The CSR legislation in India has also helped in most corporates devising measurable and scientific goals in the areas of nutrition and health, education, skill development other than research and innovation. Wealth and capital earned by the better equipped in society when given back for the less equipped, creates compassion and care, key pillars for a harmonious living.

I am sure the above trends will continue and be strengthened in the time to come. As we say good bye to 2018, let us remain cognizant of these learnings in making new beginnings. 

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