[INFOGRAPHIC] The Sharing Economy

While the sharing economy has been widely used in the past 2 years, it’s an economic term that has existed since 2010. Many scholars and thinkers have tried to define it in different ways, from a socio-economic ecosystem to collaborative consumption, we found the most recurring ones to be: the recirculation of goods (e.g: eBay or Craigslist), the exchange of services – think TaskRabbit, the sharing of productive assets, and finally the utilization of underused assets: AirBnb, Couchsurfing and of course, Uber.

The Consumer P2P rental market is believed to be worth $26Billion today, and even more so, the revenue of sharing economy companies are expected to grow from a $15Billion in 2015 to $335Billion in 2025. And if the numbers are not characteristic enough, the sharing ‘concept’ has now become engrained in people’s psyche. Indeed 75% of people believe nowadays that they will increase their sharing of physical objects and spaces in the next 5 years. We have also seen a new trend and spike in the number of freelancers; those of who have started using sharing economy ‘platforms’ have seen their income rise from 10% in 2014 to 20% in 2015.

It’s impossible however to think of the Sharing Economy and not think of the unicorn companies that have made it, and whose model countless startups and entrepreneurs have tried to replicate. In the accommodation sector, we have  AirBnb who, as of 2015, had over 2 million listings, in 190 countries and was valued at $30 billion. In the Transporation sector, Uber, available in 76 countries valued at $68 billion at the end of 2015. In the Goods & Services department, we have companies like TaskRabbit, with 2million users in 19 cities. Finally, Workspaces have entered the sphere with companies of the likes of WeWork, valued at $16.9Billion. Needless to say the sharing economy is opening up a number of interesting possibilities across different economic activities and is actively redefining our daily live. The Sharing Economy is inherently changing the future of work, production, and collaboration and on a personal level changing our concept of ownership and our attachment to it.

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[INFOGRAPHIC] The Music Industry

Due to the growth of digital platforms the manner in which music is consumed has shifted drastically from analog sources such as CD to digital media players, downloads and streaming services.

Digital has surpassed physical (CD, tapes, vinyl) as the largest revenue segment in 2015 for the music industry (45% vs 39%). The US and the UK are the two biggest markets for digital music, with the US revenue amounting to 60% of total revenues and 12.5% for the UK.

While YouTube is not positioned as a music streaming service, it does have the largest number of music listeners (800M). Spotify has the largest following in terms of total music listeners within the streaming services segment, with 100 Million total listeners, and 40Million subscribers.

Spotify’s market value today is estimated at $10Billion dollars. Founded in 2008, the Swedish company introduced the concept of enabling listeners to access its catalogue of 30m+ songs on multiple platforms and devices. It has grown a substantial user base offering free access to its catalogue with advertisement, premium ad-free memberships, and developing brand partnership with companies such as Uber. Despite its popularity, you cannot listen to catchy Taylor Swift songs on the app. Some would argue it’s not that bad of a thing.

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[INFOGRAPHIC] The Gaming Industry

Recent innovations and advancements in technology have all contributed to the enhancement of video games experience. Sound cards, graphic cards, faster CPUs and 3D graphic accelerators are some of the notable improvements that we owe to the gaming industry for what we know today as our modern personal computers.

The gaming industry though growing silently is expected to drive revenues up to $90.07Bn in 2020. International video game revenue was estimated to be around $80Bn in 2014, which is more than double the revenue of the international film industry in 2013.

The market leading the race worldwide were China, the US and Japan. Their respective revenues from gaming in 2016 were $24.27Bn, $23.46Bn and $12.43Bn.

The gaming industry has come a long way from their 70s and 80s video arcade games. Today we speak of eSport Markets, Social Gaming, MMOGs, and Mobile Gaming.

The eSport Markets consists of professional players competing in a multiplayer video game. Some competitions such as The International, League of Legends, Dota etc.. all provide live broadcasts of the competition. Throughout his recorded eSport career, Peter Dager, 25yo gamer, earned $2.62Mn, making him one of the most paid players of all time.

The segment itself is still growing at a 40% annual rate, revenues for 2015 were $325Mn and projected to reach $1Bn by 2019. The number of eSports enthusiasts and occasional viewers is estimated to reach 230 Million a steep increase from the 71.5 million people in 2013. In terms of region, Asia is by far the biggest holder of market share in eSports, followed by the US and Europe.

Asia also dominates the social gaming segment, with $2.27Bn in revenues and 500Mn active monthly users while its US counterpart generates $1.8Bn. Zynga (Poker Game), King.com
(Candy Crush), Nexon and Supercell are only some of the most famous company in that area.

MMOG or massively multiplayer online game itself is expected to grow from $24.4Bn in 2014 to nearly $31Bn by 2017. Who isn’t familiar with Blizzard’s World of Warcraft? As an example, their subscription base grew almost a ten-fold: 1.5 million subscribers in 2005 to 12 million in 2010.

The importance of mobile gaming can’t be ignored. Going hand in hand with the smartphone revolution, and as of 2016, the mobile gaming revenue increased to reach 12.1Bn Euros, and taking on 17% of total gaming revenue worldwide.

2016 saw the introduction of upgraded accessories (Oculus Rift, HTC Vive, and PlayStation VR headsets etc…) and software, offering consumers more choice and diversity and more accessibility.

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[INFOGRAPHIC] Big Data - The Hype And The Reality

The rise of social media platforms, the internet of things and multimedia has led to a record rate of data creation. The concept of “big data” has only become widespread as of 2011, referring to the staggering amount of new data generated per minute accounting to the amount of 204 million emails sent, 1.8 million Facebook likes, 278 thousand tweets, and 200 thousand photos uploaded. Indeed, the worldwide business intelligence and analytics industry is valued today at US$16.9 billion in 2016.

While the definition of data analytics and big data might seem ubiquitous, several research papers and industry reports define big data by the different components that it encompasses. The four V’s has emerged as a common framework to describe big data.

Read more here via @Entrepreneur-ME

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[INFOGRAPHIC] Electricity and Energy: An Industry Outlook

In recent years, electricity and energy consumption has been a hot topic of discussion in terms of use and its impact on the environment. While electricity consumption in the United States and Europe represents about 40% of global demand, energy consumption in the rest of the world grew by 5.1% from 2007 to 2012.

Global CO2 emissions have more than doubled from 15. 6 thousand metric tons in 1973 to 31.7 thousand metric tons in 2012. Of this total, two thirds generate greenhouse gas emissions and 75% still depends on nonrenewable sources as coal, oil and natural gas.

Despite this, renewable energy has become a viable alternative: investments in solar and wind power totaled $7.6 billion between 2012 and 2015. Startups such as Sunrun and SolarCity represent the rise of non-traditional energy companies that can disrupt traditional utility business models.

The rise of the modern energy companies goes hand in hand with the rise of the digital energy grid and ‘smart utilities.’ Connected devices allow energy companies to optimize asset lifecycle management and optimize energy storage in order to better match supply-and demand without wastage.

 


[INFOGRAPHIC] The Tide Turns For Women In Tech

In studying women in the workplace, there is much to be said about a lack of sufficient representation. Within the tech world, it is an intuitive recognition that women have difficulty establishing themselves in technical and founding roles. Though there has been modest progress, a McKinsey study found that almost twice as many men are hired externally as directors and SVPs, when compared to women.

The underlying problem is two-dimensional. Indeed, while women make up half the workforce, only 24% pursue a STEM (science, technology, engineering and mathematics) degree. In developing countries, the number is even less. Moreover, when women do start working in tech companies, the lag in early stage promotion makes it even more difficult to ascend to more senior managerial roles. For example, 7% of partners at the top 100 VC firms are women; and only 12% of partner roles at corporate venture firms and incubators are held by females. According to the Sheffield study, the Middle East suffers a total income loss of 27% as a result of an unfavorable environment for women working and starting up companies.

Read more here via @Entrepreneur-ME

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[INFOGRAPHIC] Defense Spending and Arms Trade in Numbers

This week we look at the major players in defense spending and arms trade. It comes as no surprise that in terms of spending the USA dominates with $596 Billion U.S Dollars in 2015. This is more than double that of its counterparts in China, Saudi Arabia and Russia. Although it represents only 3.3% of its GDP compared to other countries like the UAE and Saudi Arabia, it holds the biggest market share in the export market. The largest arms-producing and military services companies in the world in 2014, measured by arms sales were Lockheed Martin and Boeing, both US companies, whose total sales were $60 Billion US Dollars. It is interesting to see however that in terms of market share of imports, India remains at the top with 14% of market share. This could be explained very simply by the fact that they do not have a defense system in place that enables them to manufacture the arms they need with the necessary technology they require. Indeed, and according to SIPRI (Stockholm International Peace Research Institute:Indian arms industry has so far largely failed to produce competitive indigenously-designed weapons".

On a general level however, US spending has decreased in the recent years but in the advent of the Trump era, we can assume that the figures could drastically change in the near future.

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[INFOGRAPHIC] The Impact of Technology on Consumer and Retail

The rise of cloud- and quantum computing means that the value chain for retail companies is becoming increasingly interconnected. The lines between factories, stores and homes are becoming blurred as retailers, brands and consumers will seamlessly interact with each other on a regular basis. With a changing demographic, companies have to adapt the new needs and wants and adapt their technologies to best serve millenials, ageing populations and the emerging middle-class.

An important component of all this change is the rise in the use of mobile (m-commerce) which has almost doubled since 2014. Total mobile sales are expected to reach $115.92Bn in 2016. Mobile has become an integral part of the consumer experience and whether shoppers use it as a means to purchase, they also invest a lot of time, in and out of stores to research prospective products. Indeed, 37% of mobile users, operate their smartphones to look for inspiration and make discovery online, 32% compare prices, 33% seek advice online and 25% research online to make offline purchase. Using online and mobile as their platforms, retailers invest their resources to create a more personalized experience for their customers.

The internet of things, which has become this year’s favorite buzzword, has found the importance of its place within the retail industry. Be it on the supply-side technologies or demand-side, the IoT market is projected to grow from $14Bn in 2015 to $36Bn in 2020 and with IoT, supply chain and logistics can achieve $2.6Tn in savings:

Smart Factory: Optimising Supply Chain Operations
The factory of the future will incorporate technologies that will allow for real-time adjustments to production, which will become essential in the face of higher frequency and uncertainty of demand. By implementing RFID chips for example, companies can track product inputs more precisely across their value chain (Gregory, 2015). A key benefit of this is that factories will be able to anticipate delays in delivery of materials and instantly include other suppliers in its delivery schedule.

Smart Stores: Personalised Shopping Experience
While the factory and the home of the consumer are becoming increasingly connected, the store will stay play an essential role in the retailing process. In-store Bluetooth beacons will instantly give sales associates information on frequent store visitors such as purchase history, and enable them to improve the in-store experience (Electronic points of sale will enable companies to instantly update their inventory and collect more customer data, which can be directly sent to factories and distribution centers. Suppliers will be able to monitor directly the quality of perishable items through sensors, and will be notified when stock needs to be replenished.

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[INFOGRAPHIC] Elon Musk: Profile Of A Prolific Entrepreneur

When you think of entrepreneurship today, the name Elon Musk almost certainly comes to mind. His name has become not only synonymous with serial entrepreneurship, but also a drive to make the world a better place through technological advancements.

But Musk’s journey to the top of the tech world has not been a smooth procession- it was rather a classic tale of overcoming hardships. Amidst the dot-com boom, Musk founded his first company Zip2 in 1995, a software company for online newspapers, together with his brother Kimbal. Zip2 was sold 4 years later to Compaq for US$307 million. Musk went on to co-found the company that ultimately became Paypal, which was sold to Ebay for $1.5 billlion in 2002. These early successes enabled Musk to start the ambitious space exploration company SpaceX in 2002, with the mission reducing the cost of space exploration and enabling the colonization of Mars. In 2003, Musk also founded the electric vehicle company Tesla. These companies have both been on the brink of bankruptcy in 2008 and 2013, but a swift turnaround of events enabled them to go on. Tesla’s revenue has grown from $15 million in 2008 to $4 billion in 2015, while SpaceX entered into a long-term transport contract with NASA. Besides running SpaceX and Tesla, Musk has also invested in the solar energy company Solar City and in the Hyperloop project, a high speed train that will allow people to travel from LA to San Francisco.

Read more here via @Entrepreneur-ME

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[INFOGRAPHIC] The Food & Beverage Industry: An Organic Attack

It is no secret that the food industry has experienced dramatic changes in the recent years with the rise of millennials whose mottos derive from "healthy eating, healthy living". Many companies and conglomerates have suffered from these transitions in order to come to the needs of this surging class of the population. Indeed, the top 25 F&B companies experienced a loss of $18 billion over the past five years. In order to recuperate, they have had to consolidate their business strategies by acquiring smaller companies, organic-focused companies:
General Mills and Annie's
Kellogg and Kashi
Hormel and Applegate
Campbell and Plum Organics/Bolthouse Farms
Mondelez and Enjoy Life

New sales and manufacturing strategies included switching nutritional wants and needs to include more healthy ingredients. New snacks for example were dubbed "mindful snacks" and included fiber and proteins. As for packaging, people expect new clean and transparent packaging vs. diet-friendly labels. In terms of the new technologies introduces, we can witness an increase in e-commerce platforms offering food and nutritional packages (e.g: Hello Fresh), indeed sales are expected to reach $12 billion by 2018.

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