Evolution or Revolution

During a recent conversation with my son Sebastian, we pondered whether the future will be a continuation of the past or a break from it? Evolution or revolution?

It’s a thought provoking question. As we see the changes happening everywhere, I would say that the digital age is powering a gradual but steady revolution.

There are few better examples than that of two business visionaries: Elon Musk and Jeff Bezos.

They lead two of the world’s most valuable companies today.

And both have succeeded by turning the past into the future by revolutionizing it.

Elon Musk has turned the automotive industry upside down.

He has brought data management into the car industry, adding to and constantly evolving the user experience.

Teslas are basically a computer on wheels offering a future where even as the basic elements of the car remain the same, they could well be enhanced by software that can be programmed remotely and updated instantly. Like a computer, the car is linked to a data management system that allows it and the system to learn as it goes — when one Tesla meets a challenge or an obstacle it is reported to all others instantly, making the individual car a link in a data system that is global in scope.

The car is thus in a constant learning mode and many of the bells and whistles that are currently static and permanent options in most cars could be enhanced or changed remotely without changing the vehicle itself. 

Through Tesla, Musk is developing a new business model for a century old product and is thus revolutionizing the automobile industry. 

By incorporating technology to his vision, he is revolutionizing an existing industry. He could now choose to sell the basic car as one would sell a computer and then lease the digital content, much as Microsoft currently leases its Office products today. Thus, through services, a Tesla could become a constant revenue generating product rather than a one-time sale. People will own the physical car but would in effect lease the operating system, adding or removing attributes as they wish. 

Another visionary who has turned retailing on its head is Amazon founder Jeff Bezos.

Amazon has used technology to simplify and amplify shopping, bringing millions of products directly into homes everywhere. Five years ago, Amazon acquired Whole Foods, a major U.S. food retailer. Many people thought that Amazon’s main purpose was to add groceries to the long list of products that it currently offers clients.

However, since then, Amazon has developed technology that could eliminate both cashiers and line ups. It records the purchase of each article as the customer puts it into the shopping cart and then charges the client’s credit card automatically upon leaving the store. Time is saved, no transaction is required with staff while enabling clients to pick and choose items such as fresh produce personally and not leave this to a third party. Each store can then provide clients with a more rapid shopping experience and no lineups at the cash register.

Will this be the model for Whole Foods as well as for other brick and mortar retailers? 

Can it be extended to say energy companies who could bill clients automatically for gas with no need for cash or credit cards — through the car or cel phone which transmits the transaction and bills the client?

The possibilities are endless.

Both of these men are visionaries, and like the visionaries before them such as Bell, Marconi, Edison, Ford, Gates and Jobs, they are shaping the future. 

Their ability to think outside of the box, or simply to change its parameters, is resulting in many improvements to our economy. Their ability to attract the capital necessary to start their businesses coupled with their skill to sell their vision through years of operating losses created the base from which they could build their businesses. At the same time, their ownership of the company that they run gives them a distinct advantage over more traditional organizational models that require much longer lead times to initiate and implement radical change in order to respond to shifts in technology or in consumer preferences.

The fact that both Bezos and Musk are pioneers in private sector space travel is also no coincidence. The space race of the sixties radically accelerated technological changes, and both of these leaders are geniuses with the track record and financial clout necessary to leverage and apply technology to these capital-intensive projects.

Many competitive business models are also changing as a result of their success and the efforts of other entrepreneurs. These create new opportunities for people to earn a living through higher paying technology related jobs. The survival of many companies depends on their ability to create and harness an entrepreneurial vision throughout the organizations while adapting the mindset to better incorporate evolving technology needed to remain competitive.

This need for established businesses to change, adapt and incorporate the creative use of technology into corporate culture underscores our conclusion that we are living through a quiet revolution, even though many might not realize it.

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Edition: Estefanía Cardeña