Ich bin ein Tech Company

In one of his most famous speeches President Kennedy said “All free men, wherever they may live, are citizens of Berlin….”

Reading this BusinessWeek story “Sorry, Nike you are a tech company now”, I think we can similarly pronounce “No matter what industry we compete in, we are now all technology companies”

When I started to write The New Technology Elite, I thought oh, maybe 15 industries were embedding technology in product – medical devices, autos etc.

But the count kept running up as my research progressed.

When it got to examples fron 50 industries, I asked an executive “Is there an industry which is NOT embedding technology in its products and services?”  This executive knows Warren Buffett well and said “Warren stays away from technology. Look in his portfolio. I am sure you will find some companies which are not that tech savvy”

So, I looked at companies in his portfolio which on surface do not look like tech innovators. I found Coca Cola with its high-tech Freestyle vending machines and sophisticated digital advertising.  Burlington Northern Santa Fe is using technology to lead the railroad industry, including a warning system that uses satellites to detect speed-limit violations, improperly aligned switches, and missed signals.  And Procter & Gamble, which is pioneering new forms of analytics and social media marketing. It is also extending its Tide franchise into the fragmented dry-cleaning business with stores that use email promotions, provide 24x7 secure locker access, “greener” cleaning options, and other technology innovations. Next there is GEICO, one of Buffett’s earliest and most lucrative investments. GEICO disrupted traditional car insurance by selling via mail rather than agents. Today, it is a technology marvel with elaborate call centers; many of its customers manage their GEICO interactions mostly by web or mobile device and its claim adjusters are equipped with Toshiba Toughbooks and digital cameras.

So much for tech laggards in Buffett’s portfolio!

In the end the book cataloged over 75 industries which are embedding technology – as simple as Bluetooth to highly sophisticated algorithms – in their products and services.

And I cataloged a number of executives who proudly showcase their tech chops. Scott Davis, the Chairman and CEO of UPS says they are “ about half a transportation company, half a technology company” . 3M proudly shows off on its site its “periodic table” with 46 “technology platforms”—Bi for Biotechnology, Op for Optical Communications etc. Jeff Bezos, CEO of Amazon is unafraid to include in his annual report to shareholders terms like RESTful services and data sharding. Mark Little, Senior Vice President of GE Global Research, uses terms like Biomimetics in presentations to financial analysts.

Yes, we are all technology companies now. Let’s celebrate that and prepare for all the joys and challenges that brings.  The excerpt from the book below lists some of them.

Download NewTechElite pg 3536