In short: they are lateral thinkers with big ideas, challengers of the established. They don't play the game, they reinvent it. They see markets full of unlimited possibilities, which they combine and redefine to their advantage.
The levers can be completely different: as a product innovation, as at Dyson, in a new system concept as at Nespresso, in the distribution approach as at direct pioneer Dell, an improved service as at Zalando with free shipping, an optimized user experience as at Apple or in a new price and business model as at easyjet.
Game Changers share the following six characteristics and values:
- Thinking differently: breaking with the status quo, changing the rules.
- Rebellious: They are courageous, dare to take on the big players, have staying power and passionately believe in their ideas.
- Act meaningfully: You have a value-creating vision that changes the entire business model and the competitive environment; you want to make something better possible.
- Make it better: Their ideas are relevant to people, they fundamentally improve an existing product, service or model or take a completely different approach.
- Eager to experiment: You like to try out product and service models and work according to the trial and error principle.
- Cooperative: You are well networked, enjoy working with partners and maintain a lively internal exchange.
The digital evolution - and the mobile revolution in particular - is currently bringing about lasting change in established industries. From finance to retail to gaming - game changers are reshuffling the cards in all sectors.
1) Finance - banking is important, banks are not
Bank customers today are much better informed, more mature and therefore more demanding. Flexibility, transparency, speed and customer proximity are therefore in demand - all attributes that tend not to be attributed to banks. This opens the door to game changers that offer customers attractive alternatives in the areas of payments, savings, investments and financing that are simpler, more transparent and cheaper. Many of these services come from start-ups that operate more dynamically on the market, free from rigid organizational structures. Mobile and social are often an integral part of this.
Moven is a purely mobile-based debit customer account. Every transaction that a customer makes with Moven is tracked, assigned to a category and can be accessed in real time via mobile. However, Moven is not a bank, but a service that is based on the customer's need to have better control over their income and expenditure. Moven uses the infrastructure of a traditional bank to process transactions. This highlights the potential danger for traditional banks: services such as Moven mean they lose direct access to customers and are reduced to the function of a supplier of banking services.
Further examples: Fidor Bank - transfers the fundamental values of friendship to the world of finance. Zopa - the world's first "peer-to-peer" credit service. M-Pesa - Safaricom from Kenya enables payment by SMS. Bitcoin - virtual cryptocurrency bypasses banks and financial authorities.
2) Retail - cutting out the middleman
Retail is not sleeping either! We encounter many game changers in the stores - both online and offline. The most exciting innovations fall into the following categories: new business model, new technology, new sales type (e-commerce, m-commerce or omnichannel), new philosophy or new service.
A frequently observed development is the elimination of the middleman: retailers produce and sell directly to the consumer via online distribution. This guarantees unbeatable prices. Warby Parker is a pioneer in this field and is celebrating great success with it: a concept that has now become a model for countless start-ups.
Alibaba is the largest e-commerce company in China - and according to some definitions even worldwide. Hundreds of millions of customers use the three main sites Taobao, Tmall and Alibaba.com, on which 7 million sellers advertise 800 million items - from kitchen utensils to spare parts for concrete mixers. Alibaba's turnover last year was an impressive 248 billion dollars, which is more than eBay and Amazon combined. The IPO of the Alibaba Group is currently pending. In the best-case scenario, the company will achieve a market capitalization of 250 billion dollars, which would significantly exceed that of Facebook, Samsung or IBM. The example of Alibaba shows that the Chinese are no longer just producing for the Western world: "copied in China" is becoming "invented in China".
Further examples: Hointer - sprucing up physical shopping digitally. Rent the Runway - renting out Cinderella moments.
3) Media - the expectation of free content on the Internet
The unrestricted and global flow of supposedly free content on the Internet is standard today. As a result, consumers decide for themselves what content they want to consume and when. In addition, everyone has the opportunity to publish their own content via platforms such as YouTube, WordPress or Twitter. Traditional TV stations, radio stations and newspapers are no longer the only mouthpieces for the population. Instead, independent players with new business and distribution models are finding their place in the media world and showing the top dogs how digital media works.
Netflix has revolutionized the distribution of film and TV content step by step. In 1997, Netflix put the offline DVD rental company Blockbuster under pressure with its online business model, which simplified the ordering process for customers and saved on rental costs for store locations. In 2007, Netflix switched from DVD distribution to online video streaming and was even ridiculed for this move at the time. Today, more than 48 million users consume over one billion hours of films, series and TV shows every month. Since 2011, Netflix has been producing its own series to meet the trend towards non-linear television, with all episodes available online at the same time.
Further examples: Vice - from dirty scene magazine to media company. Amazon Studios - user-generated Hollywood movies.
4) Advertising - Addressing customers instead of booking seats
Modern advertising must be efficient and have a maximum impact with a minimum of resources. However, the creative idea is still the necessary basis for this. But it is often in danger of being lost in the sheer volume of advertising impressions. To prevent this and to achieve the desired effect with a brilliant idea, the advertising must reach the right target group in the right place at the right time. In the field of online advertising, a growing ecosystem has emerged in recent years with the aim of targeting impressions to relevant users in real time instead of booking fixed placements in advance in relevant environments.
This paradigm shift is called real-time bidding. Enriched with big data, communicators can bid on individual advertising impressions via virtual exchanges. As soon as a user accesses a connected website, the impression is offered for auction. Along with website data, individual information such as the user's location and previous cookies are also made available to potential bidders. Data from additional sources is included in order to better assess the relevance of the impression. The entire process, from accessing a page, evaluating and placing a bid to displaying the advertisement, takes a maximum of 120 milliseconds. In this business, the company with the superior algorithm wins.
Rocket Fuel is a company founded in 2008 that specializes in programmatic targeting for display, video and mobile advertising. At its recent IPO, the company was valued at around one billion US dollars. Rocket Fuel combines big data with artificial intelligence to minimize wastage in online campaigns. The campaigns automatically learn which data points are relevant for the desired effect - from branding to sales promotion - and increase the return on investment.
Further examples: BlueKai - largest provider of targeting with 700 million profiles. Google - operator of one of the largest RTB exchanges in addition to AdWords.
5) Gaming - the origin of many innovations
The gaming industry is extremely dynamic, experimental and versatile. It often picks up on new technologies at an early stage of development and develops them further. The same applies to business models. Freemium and gamification are models and approaches that have been popularized by the gaming industry in particular and adopted by other industries (e.g. Spotify, Dropbox, LinkedIn). Gaming is the game changer within entertainment. This is also illustrated by the figures: According to PWC, the video gaming market is currently growing by 6.5% per year worldwide, almost twice as fast as the film industry, while the music industry is stagnating. The game "Grand Theft Auto V", on the other hand, broke all records. In the first 24 hours after its release, the game generated sales of 800 million dollars; that is more than any other piece of entertainment - music, film or game - in such a short time.
Oculus Rift is a head-mounted display that redefines the market for immersive gaming. Players can explore virtual worlds by translating their head movements into real time. The start-up was recently acquired by Facebook for 2.3 billion dollars. Mark Zuckerberg expects vision and virtual reality to become "the next big thing" after mobile. For him, the purchase of Oculus Rift represents a long-term bet on the future of information technology. Experts share this view and expect that Oculus Rift will not only permanently change the experience of gaming, but also of working, reading books, watching movies or face-to-face communication.
Further examples: Microsoft IllumiRoom - enhancing the gaming experience with peripheral illusions in the living room. PrioVR - transferring movements of the whole body into a virtual world.
6) Technology - home, smart home
Fully automated systems are finding their way into the home, making our everyday lives easier, safer and, above all, more energy-efficient. The systems are becoming increasingly sophisticated, learning independently and constantly evolving. Currently, they mainly control heating, electricity and infrastructure, such as windows and doors or media devices.
Nest Labs Inc. is a company that produces intelligent, self-learning room thermostats and smoke detectors. The solutions consist of simply designed hardware and a user-friendly smartphone app as a remote control. Nest was recently acquired by Google for 3.2 billion dollars. According to IDC, the Internet of Things is expected to consist of 212 billion networked components by 2020 and generate a turnover of 8.8 billion dollars. In addition to end devices and applications, the areas of software, security, systems and infrastructure in particular will benefit from a huge growth spurt.
Further examples: Philips Hue - individually adaptable lighting system, operable and programmable via smartphone. 3D Robotics - drones as an intelligent monitoring system for the home, from 750 dollars. Honda Walking Assistance Devices - enables elderly and disabled people to walk.
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