Amit and Kratika talk about the new revenue streams and businesses that organisations need to survive and grow in the coming 5 years
Kratika : Hey everyone, Amit we have talked a lot about the future of e-commerce and we have talked about it from a customer perspective, what they can expect, what the brands should do.
Experts predict that 50% of the revenue by 2026 would come from revenue streams, which are not even existing yet. And this poses, a very big question that all the organisations and Brands, and companies need to venture into new businesses things that are not existing
Yet, from an outsider perspective, it seems like a very big problem statement because you don't even know what to do. Sometimes the trends are changing so fast and you don't know what will emerge from it in terms of customer behaviour in terms of tech also. So what are your thoughts on how to tackle this situation is new business, these new revenue streams that are coming in.
Amit : Yeah, let's start with the fact that the duration of any company even on something like the NASDAQ is shrinking over the years.
So you take the trends all the way from those types of numbers, all the way down to what you predicted. I think it was a McKinsey article that recently talked about businesses needing to have, you know, completely new revenue streams, fifty percent of their income should come from new businesses. Within the next four years.
Now that's a tall order, right? You said right, what most people can barely get one business going.
So the issue is what happens if you don't do it as in if you don't do anything. What happens, in four years time, what exactly happens when you don't have new revenue streams, what exactly does that situation mean?
The answer is in a lot of these new innovations and in disruptions and startups and platforms and whatever that's happening all the time has happened and you have not been able to keep up with that innovation or growth. So this is not so much that you should have fifty percent of your revenue coming from the new things. It really is that you should be prepared to be Innovative and disruptive alongside all the other people who are going to be innovative and disruptive and your industry and adjacent Industries or you're not going to be there because customers are going to move on to the next big thing.
So the question now becomes, how do I avoid this, right? And the answer is, obviously the big word innovation.
How do you get Innovation? And the answer is you can't get innovation but you can buy innovation. The way you buy innovation is by investing in Creative business, entrepreneurial
startupy people.
The way you do that is you create a corporate venture fund which allows you to do what you're doing without any distraction and all your executives can focus and there's no problems, and there's also options that you are now buying in, the burgeoning Innovation space out there through fun which is managed professionally but has corporate, long-term interests at heart, not so much about short-term capital.
They're not so much about returning the money as much as they are about making sure in four years time, they are the leading forefront of innovation in the industry.
Ultimately, you have to view your own business as a venture of ventures.
If your venture is a set of companies that are all equally responsible to survive and grow and they all interact together to achieve the greater goal of the whole of the Venture ecosystem, Now, there is never any lack of reason to innovate because you now have a thriving Marketplace within your Venture.
The marketplace is the rise of innovation because I can make money from it, this is the invisible hand that produces new things. Necessity is the mother of invention,
you found that mother, we found necessity, right? And necessity
comes when I can take advantage of the land that I perceive.I'm going to put in all my efforts to create something from nothing and participate in that not just for myself, but for everybody and that becomes the corporate culture.
You no longer think in terms of traditional hierarchies and rules. You're thinking in terms of about outcomes and thinking, in terms of Engagement and, the whole value co-creation process is laid
bare to everyone. And you can either be so-called inside or outside it. It no longer matters that's the internet.
Kratika : The fear of losing everything, of course, accelerates this entire thought process, because if you don't do it, you will fail. You will decline eventually because you're not keeping up with what is going on in the world and that gives a lot of opportunity for different types of organisations to come and work together. As you said, mergers, acquisitions and strategic Investments, which bring in different types of systems also into your Universe. It will also impact the culture at the core organisation and how one deal with such a variety of people.
Amit: It's by recognising the true variety in the natural universe and making a similar structure available to yourself at so-called work and play and life, and all the different aspects of what we do should be natural, right? It should be organic and natural. If it's unnatural, you will feel it.
Like diseases are unnatural and you'll feel ill at ease because it's not natural. So the natural system is the right system. It's already there. When we try to impose something else on it, that's unnatural.
The natural thing is a network, we're all part of many networks and, I like to build
a network you like to build. Everybody is part of networks. They build networks. That's the natural way of organising. Not hierarchies. There may be a role and there may be many things that a network does together to satisfy its existence, purpose of being but there is no notion of hierarchies. There is only the notion of function in the various nodes because every node is operating independently and it is interacting with other nodes by virtue of being in the network of nodes. So it is sovereignty and it has clearly defined boundaries based on exchange of data and value. If providing value, people are going to talk to you and gonna use you and if you're not
providing value, they'll go find it elsewhere.
Now why is this different inside versus outside? The so-called organisation is a flawed structure.
It should be the same inside or outside, right? If you don't find value in a service coming from inside the organisation, I should be totally free to find it outside which is what I end up doing anyways but so why impose the structure in the first place, why not build a new organisation structure that's built on the notion of networks? Where people are primary and they belong to a
function in many networks, and they get compensated based on the function they provide by the network with whom they're having that discussion.
So it's a so-called gig economy at global scale for everyone, including CEOs. Why can Jack Dorsey run multiple companies, why not make it so that it's normal for everyone to do that? because we are already part of multiple networks, and we are already doing all those things. So, it's just a question of how much you can manage in your portfolio, so to speak and that's about it. So, it's always a portfolio approach, which means it's always a network of ventures, or a venture of ventures that you're a part of.
Putting all your eggs in one basket will lead to failure in four years. So, how do I build a culture now that focuses on this dynamic nature of reality. What is that culture? It is the culture of innovation, honesty and integrity and clarity because we're just talking about value. I mean, we do think it has value, use it if not then you don't use it. It's a very perfect, transparent conversation and culture.
Kratika : Everybody has the option to go for the best available solution. They're not restricted to something, they see the value in anybody or any network, they can interact with that network.
And the culture is developed in such a way that people haveFreedom. Every node has their own decision-making Freedom.
Amit : So, absolutely, that's called self sovereign identity in the world of authorisation which is hey I'm going to hold on to my identity, I'm not defined by either Facebook nor am I defined by the employer, I worked there, but it's not some other relationship, it's a symbiotic relationship. They are happy to have me and I'm happy to have them because they satisfy some creative itch. I can work anywhere, but I will work with you because we're doing something cool together. There is an impact, there is meaning, there is a resonance with a broader idea and not just this narrow, old school money-making mindset. Money is important but how about we make it easy for everyone, that's the culture. Abundance, that's the culture, reality. Because it’s unnatural, constricted people that are just forced to do one thing because that's their place in the hierarchy.
Kratika : It's totally inverted and it's going to be more prevalent and in the coming three, four years there's going to be an inversion of all this across the globe, and should be applied everywhere.
Amit : A startup is one of the most useful value creation tools in the world and angel Investing is one of the best ways to make money, but both are not understood properly because there's so much risk involved and so much Voodoo and black magic involved. Why don't we make it so that it's a natural process of life, like business is a natural process of life, we're always buying and selling things. It's not something magical or corporate or capitalistic, It is the basis of civilisation so why not weave that civil culture into normal activities that capture value and share the value with people that co-created it.
So that's how I see it. I'm really excited to be a part of that transformation. I Certainly see in the next little over eight years to complete our mission of helping launch a million plus new companies and co-creating 100 million jobs. That was the original plan two and a half/ three
years ago. And I think we need to revise it upward as people need more help now as the world changes and the whole thing is just going to transform in the next three, four years you'll see how the American economy changes, significant changes.
Everything comes together in a perfect storm of hopefully good things, Good Innovation, everyone comes out better, that's the opportunity.
Kratika : Thanks so much and it's really exciting to be a part of such transition and transformation.
Watch the full video: https://vimeo.com/730935248
