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Sean Park

Digital Divide.

GigaOm writes today on the growing divide between the leading and lagging companies on the web:

The web is entering a period of intense creativity. Companies like Google and Apple are positioned to ride, if not generate, the momentum driving that creativity. The laggards are at risk of being stuck in perpetual catch-up mode. If that happens, the bluebirds will have flown for good — and the landscape of Internet companies will soon look dramatically different.

And yet this is nothing compared to the ‘creativity gulf’ that is emerging between leaders and laggards in other sectors of the economy, including in banking, insurance and finance generally. Only here, the leaders are still small and just starting to emerge. Further, GigaOm points out that even once this creativity divide is created and continues to grow, the deleterious effects of being on the wrong side of this divide can take many years to really start to bite:

Other Internet names seem mired even further in the past. Yahoo’s interest in a deal with Microsoft for “boatloads of money” is a headline that belongs in 2008. eBay keeps trying to recapture the magic it had five years ago. And MySpace is still trying to renew its lifeline to Google.

None of these laggards will see a quick end. They’ll be able to endure for years serving the people who haven’t taken to Facebook or maybe tried and then abandoned Twitter, people who are comfortable with a simpler, more familiar experience on the web. But it’s an ever-shrinking crowd. A decade ago, AOL chose a complacent path by maintaining its gated online community, shunning the migration of content and services to the web itself. And look where AOL is today.

Substitute ‘financial’ for ‘internet’ in the analysis above and the parallels are obvious. The big difference of course is that the analogs for Google, Facebook, Apple and Twitter in finance are not yet obvious and indeed probably don’t yet exist (or are at the very early stages of their development.) However, the environment supporting the emergence of new digital leaders in finance has never been more fertile. This is one of the main reasons I created Nauiokas Park with Amy: in order to discover, support and develop the next generation of leading companies delivering financial services and products from the right side of the digital divide. The next several years promise to be exceptional vintages in our opinion.

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  • Chuck Farley

    In that ever-risky vein of technology predictions, here are my "analogs for Google, Facebook, Apple and Twitter":

    Google (an acquiring behemoth resting on its laurels, expert propagandists and bureaucrats) is JPMorgan.
    Facebook (sprawling but totalitarian, bleeding hipness daily, not all that clever) is SAC, Citadel, Renaissance or Bridgewater.
    Apple (narcissistic, old, desirable, aggressive, cult-like) is clearly Goldman Sachs.
    Twitter (hip, desperate to make money, and blind to its role as an implementor standards and protocols) is the IntercontinentalExchange in Atlanta.

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