"Our knowledge can only be finite, while our ignorance must necessarily be infinite." Karl Popper
Financial services industry has been at the forefront of automation and digital transformation. Innovative startups are changing the way we transact, hedge, borrow, and invest. Financial technology (FinTech) companies leverage AI, Big Data, Blockchain, and ML to create value for both borrowers and lenders. Legacy businesses like banks and NBFCs are digitalising their core operations to stay relevant. Incumbents want to protect their existing businesses while startups aspire to disrupt these business models. The battle has just begun and will get intense as both incumbents and upstarts fight to create value through digital business models.
Additive manufacturing has revolutionised the manufacturing sector. It has brought down manufacturing costs through efficiency gains. Companies are using nanomanufacturing to produce high-performance and innovative products. Most legacy manufacturing players are finding it difficult to adapt in this rapidly changing world, but a select few have successfully transformed themselves or are doing it. Their chances of surviving in this evolving landscape are higher than those of their peers. Automation is the next big wave in the manufacturing industry as more and more corporations are looking to save costs and create futuristic products.
Supply chain management
Supply chain management includes logistics, packaging, warehousing, and transportation. The industry has experienced a seismic shift, and global startups have changed the business model. Incumbents have found it difficult to survive, and several of them have shut shop. The smarter ones have incubated their own startups or acquired others to stay competitive. They are leveraging Big data, Cloud computing, and IoT to transform themselves and regain the lost ground. Supply chain management industry has the greatest potential to transform existing business models because technology can create value and save costs at multiple layers.
Advances in science have transformed the healthcare industry. While genome research and nanotechnology are giving us new insights every day, developments in AI, Big Data, IoT, and ML are changing how we avail healthcare services. Healthcare Technology (HealthTech) startups make it easier to book appointments, consult experts, and monitor health. The focus is on preventive healthcare. One important distinction between healthcare and other startups is unlike other startups who directly compete with incumbents for business, HealthTech startups collaborate with doctors and hospitals to bring value to consumers.
Digital business models are revolutionising the real estate industry. IoT is transforming old houses into smart homes. Buying and selling have become easier and more secure. Vertically integrated business models are under stress, and startups are operating in horizontally stacked ecosystems. Property Technology (PropTech) companies are solving the real estate needs of millennials through innovation. Online brokers have made property search easier and quicker. Ideas like co-working and co-living are changing industry dynamics. Existing players are either collaborating with startups or investing in them.
Travel and tourism
The travel industry was an early adopter of digitalisation. Although established players were quick to use the internet to seel tickets and hotel rooms, they didn't change their business models. Travel technology (TravelTech) startups have disrupted the ecosystem by transforming existing business models using AI, Big Data, and Cloud computing. Advanced analytics have helped them to create a market for tailored travel experiences. These agile startups are educating consumers through high-quality content. They are simultaneously giving consumers thousands of holiday options at reasonable prices through their alliances with hotel chains, airlines, cruises, and other travel operators.