Ever notice how much your car is a black box? Here’s this sophisticated machine with tons of computing power, hundreds of sensors, millions of parts, and a variety of displays and interfaces. But it mostly keeps its data, and the smarts that might be derived from it, to itself. If it has a problem, all you see is a “Check Engine” light.
The idea of the black box has, for me, always inspired a mix of awe and frustration. On one hand, it’s kind of cool to think that an entity exists with the answer to any question. On the other, it’s maddeningly inaccessible and impenetrable. The black box doesn’t make you smarter, and it doesn’t offer explanations. It keeps its intelligence and process totally opaque.
Mark Weiser, Chief Technologist at Xerox PARC in the 1990s, articulated a far more powerful role for technology when he said, “The most profound technologies are those that disappear. They weave themselves into the fabric of everyday life until they are indistinguishable from it.” His quote speaks to technology’s ultimate purpose – to be an invisible extension of oneself and, even, to create calm. Technology can and should extend beyond the black box to become something far more powerful – an advocate that empowers you to be smarter, better, more capable, more accomplished.
The Internet of Everything does away with the black box experience. When everyday devices collect pertinent data and communicate with each other, the opportunity arises to use that information to answer your questions, predict your needs, and act in your best interest. The relationship between service provider and consumer is altered forever – from reactive to proactive, from transactional to advisory, from obfuscating to empowering – when technology becomes an extension of oneself.
Connected startups disrupt markets by creating products and services that respond to the unique needs of people, becoming virtually invisible threads in the fabric of their lives. It’s arguably the only way startups can break into mature, inertia-bound industries such as insurance and healthcare. And the potential is huge – networking giant Cisco estimates$19 trillion in global Internet-of-Everything opportunities over the next decade.
The conditions are ideal for connected startups to transform industries and overhaul categories that haven’t really changed in years. Computing costs are plummeting. Smart gadgets and broadband access are virtually universal. Cloud computing and machine learning tools efficiently capture and make use of massive data sets. And there is a wave of design and engineering talent from top companies in the Silicon Valley with a deeply held, customer-centric mindset.
In the era of big data, the big advances have mostly been about making the gathering, indexing and retrieval of information more efficient. The consumer, for the most part, still has the burden of interpreting the data and deciding the next best course of action. In the Internet of Everything era, technology takes the same data, connects the dots and suggests ideal and appropriate actions. With our permission, it can even do the job on our behalf.
Take the Climate Corporation, for example. It aggregates data and connects the dots to enable farmers to optimize their crops, then offers insurance against weather risk with just a few clicks. It’s Ben Franklin’s Farmer’s Almanac taken to its fullest potential. Nest Labs developed a learning thermostat that heats and cools your home based on your activity and preferences. You get a home that responds to your needs and reduces your energy bills. These are just two great examples of connected startups that have upended industries with technology that acts in the best interests of the customer. Best of all, the customer doesn’t need to lift a finger. Well, maybe just to swipe a screen every now and then.
Successful connected startups don’t stop at building a product or service that fills a functional need. They offer something of far greater value – empowerment. For example, at Metromile, we use technology to deliver a new, pay-per-mile insurance option, as well as provide consumers with data to make smarter decisions about how they use their cars. According to a White House report, the potential impact of better data to help drivers reduce fuel consumption is staggering: roughly $50 billion in fuel savings is immediately achievable simply by changing driving and maintenance habits.
It’s a natural phenomenon: with growing consumer expectations around how personal technology should make lives better, smart companies in the most timeworn of industries are stepping away from yesterday’s way of conducting business and stepping up to meet the demands of today’s connected consumer. It’s a key opportunity for entrepreneurs looking to break into the marketplace. Introducing a connected solution to a traditional industry with long-established pricing and regulatory practices was a real challenge. To succeed, you must stay nimble and focused on using data to empower consumers, rather than just enhance a commodity like insurance. Starting now, urban car ownership, including buying insurance,should be less of a hassle, thanks to the unleashing of the car’s black box. Look for connected startups to transform more industries with the same approach.
