The Tech Strategy Podcast

This week’s podcast is about why intangible assets are so important in operations, competitive moats and valuation. They are central to digital businesses - but confusing.You can listen to this podcast here, which has the slides and graphics mentioned. Also available at iTunes and Google Podcasts.Here is the AI company Movio.laHere is the link to the China Tech Tour.McKinsey’s Framework for Intangible AssetsInnovation / Creative Assets. This is any time, effort or money spent developing intellectual property. This includes content creation, such as entertainment and artistic originals. And it includes other types of content such as mapping and user generated content. But it can also include R&D in new product development, improved customer interfaces and improved user experiences (whether digital or physical). The term “innovation capital” is a good description of these types of intangible assets, which we see frequently in digital businesses.Digital and Analytics Assets. This is any time, effort or money spent developing, maintaining, and advancing digital assets and capabilities. This includes software, data warehouses, digital infrastructure, and other digital and data capabilities. This includes pretty much everything in the digital operating basics. It also includes CRM software, ecommerce interfaces, data analytics models and algorithms and so on. I like that they separated this as a category from intellectual property and content assets. The title “digital and analytics capital” is great.Human and Relational Assets. This has two sub-types. This is any time, effort or money spent on:Building individual or organizational skills through training within an organization. So, this is your talent strategy – which includes specialist skills and capabilities but also social and emotional skills. This also includes relations and interactions within organizations, such as organizational and managerial capabilities. You can put adaptability and resilience here.Building ecosystems and networks external the organization is also important. This is relationships and partnerships with suppliers, complements and data partners. This is where Digital Operating Basics 4 as well as Consumption Ecosystems would go.Brand Assets. This is any time, effort or money spent to maintain or increase brand equity. This is an important category, but the name is not great. Relationships with current and potential customers is an important intangible asset (often called brand equity). This can include capabilities that build and maintain these relationships – such as loyalty programs, promotions, and fan clubs. Customer service and churn and retention initiatives are also very important.——---I write, speak and consult about how to win (and not lose) in digital strategy and transformation.I host Tech Strategy, a podcast and subscription newsletter detailing the strategies of the best digital businesses in the US, China and Asia.This content (articles, podcasts, website info) is not investment, legal or tax advice. The information and opinions from me and any guests may be incorrect. The numbers and information may be wrong. The views expressed may no longer be relevant or accurate. This is not investment advice. Investing is riskSupport the show

This week’s podcast is about how generative AI is disrupting content creation. This is a major tech shift and a lot of big incumbents (such as Netflix and Disney) are going to be impacted.You can listen to this podcast here, which has the slides and graphics mentioned. Also available at iTunes and Google Podcasts.Here is the link to the China Tech Tour.Generative AI companies to try:OpenAI / ChatGPTOpenAI / DALL-EMidjourneySynthesiaAIVALexicaWellsaidlabs5 Winners in Generative AISpecific, niche content creators, usually based on people. Such as sports content, game shows, and reality TV. Also, some creators with do very but will follow a power law.Content production tied to community or servicesAudience builder platforms Learning platformsCreator tools providers with standardization Network Effects, such as Adobe.2 Likely Losers in Generative AIContent publishers. These intermediaries (such as book publishers) don't have much of a role unless they unless they control demand or distribution.Stand alone content creators. Content can be created in house and purchased. They will struggle with coming wave of high-quality, free content. That’s Disney, Netflix, most tv studios. Basically, any business that has been relying on scale in content creation. Economies of scale in content production disappearing - especially in animation. Barriers to entry are going away. Companies like Disney and Netflix needs to become audience builder platforms ASAP. They need to expand from mass market to micro markets.——-Related articles:The Winners and Losers in ChatGPT (Tech Strategy – Daily Article)Why I Don't Like Netflix, Singapore Press and Most Digital Content Businesses (136)Why Netflix and Amazon Prime Don’t Have Long-Term Power. (2 of 2) (US-Asia Tech Strategy – Daily Article)———-I write, speak and consult about how to win (and not lose) in digital strategy and transformation.I am the founder of TechMoat Consulting, a boutique consulting firm that helps retailers, brands, and technology companies exploit digital change to grow faster, innovate better and build digital moats. Get in touch here.This content (articles, podcasts, website info) is not investment, legal or tax advice. The information and opinions from me and any guests may be incorrect. The numbers and information may be wrong. The views expressed may no longer be relevant or accurate. This is not investment advice. Investing is risky. Do your own research.Support the show

This week’s podcast is about how consumer packaged goods (CPG) companies can go digital. It's my 4 basic rules to get going.You can listen to this podcast here, which has the slides and graphics mentioned. Also available at iTunes and Google Podcasts.Here is the link to the China Tech Tour.My 4 Rules for CPG Brands going DigitalFocus on DOB3. You need to digitize the core. This is easier in CPG as it's mostly about marketing. The hard part is creating the connection with the consumer. AB InBev did this by creating its own app and delivery service. You can use services like Shopify and JD Logistics.Do DOB4 as early you can. You want to connect with other parties, such as complements and retailers. This is mostly about sharing data early on. Collaborations in product development, operations and R&D may come later.Commit to Ecosystem / Platform Participation as your SMILE marathon long-term. You have to become a master at engaging with the major ecommerce, social media and video platforms. Even Nike can’t do it all direct. This is usually about developing talent early on.Build moats and competitive advantages as you can. These will mostly be by consumer capture.——-Related articles:Zé Delivery’s “Wow” Experiences vs. Ant’s Sustained Innovation Imperative (1 of 2) (Tech Strategy – Daily Article)Why I Really Like Amazon’s Strategy, Despite the Crap Consumer Experience (US-Asia Tech Strategy – Daily Article)From the Concept Library, concepts for this article are:DOB3: Digital Core for Management and OperationsDOB4: Connectedness, Interoperability and Collaboration-Based Business Models.SMILE Marathon: Ecosystem / Platform Orchestration or ParticipationFrom the Company Library, companies for this article are:AB InBev / Ze DeliveryNikeCPG———-I write, speak and consult about how to win (and not lose) in digital strategy and transformation.I am the founder of TechMoat Consulting, a boutique consulting firm that helps retailers, brands, and technology companies exploit digital change to grow faster, innovate better and build digital moats. Get in touch here.I host Tech Strategy, a podcast and subscription newsletter detailing the strategies of the best digital businesses in the US, China and Asia.This content (articles, podcasts, website info) is not investment, legal or tax advice. The information and opinions from me and any guests may be incorrect. The numbers and information may be wrong. The views expressed may no longer be relevant or accurate. This is not investment advice. Investing is risky. Do your own research.Support the show

This week’s podcast is about Microsoft and how I approach its valuation.You can listen to this podcast here, which has the slides and graphics mentioned. Also available at iTunes and Google Podcasts.Here is the link to the Asia Tech Tour. ——----Related articles:An Intro to Growth and “Birds in the Bush” in Digital Valuation (Tech Strategy – Daily Lesson / Update)An Intro to Discount Rates and Cost of Capital for Digital Valuation (Tech Strategy – Daily Lesson / Update)Why DCF Sucks for Digital Valuation. (Tech Strategy – Podcast 101)An Intro to Digital Valuation (Tech Strategy – Daily Lesson / Update)Valuation Like Warren Buffett in 1 Slide (Asia Tech Strategy – Daily Lesson / Update)From the Concept Library, concepts for this article are:Valuation (Question 3): Digital ValuationValuation: Bird in Hand vs. BushValuation: Growth, ROIC/RONIC and ValueFrom the Company Library, companies for this article are:Microsoft-------I write, speak and consult about digital strategy and transformation.My book Moats and Marathons details how to measure competitive advantage in digital businesses.I also host Tech Strategy, a podcast and subscription newsletter on the strategies of the best digital companies in the US, China and Asia.Note: This content (articles, podcasts, website info) is not investment advice. The information and opinions from me and any guests may be incorrect. The numbers and information may be wrong. The views expressed may no longer be relevant or accurate. Investing is risky. Do your own research.Support the show

This week’s podcast is about the two leading and well-run ecommerce companies in Brazil: Magazine Luiza / Magalu and Mercado Libre. Both companies have compelling but different business models. It is an interesting strategy question.You can listen to this podcast here, which has the slides and graphics mentioned. Also available at iTunes and Google Podcasts.Here is the link to the Asia Tech Tour.--——Related articles:What is Elon Musk’s Plan to 10x Twitter? (2 of 2) (Tech Strategy – Daily Article)From the Concept Library, concepts for this article are:Marketplace platformsOnline-Merge-Offline (OMO) / New RetailFrom the Company Library, companies for this article are:Mercado LibreMagazine Luiza / Magalu———-I write, speak and consult about digital strategy and transformation.My book Moats and Marathons details how to measure competitive advantage in digital businesses.I also host Tech Strategy, a podcast and subscription newsletter on the strategies of the best digital companies in the US, China and Asia.This content (articles, podcasts, website info) is not investment, legal or tax advice. The information and opinions from me and any guests may be incorrect. The numbers and information may be wrong. The views expressed may no longer be relevant or accurate. This is not investment advice. Investing is risky. Do your own research.Support the show

This week’s podcast is about the arrival of ChatGPT, which is stunning people everywhere with its content generation.You can listen to this podcast here, which has the slides and graphics mentioned. Also available at iTunes and Google Podcasts.Here is the link to the Asia Tech Tour.Here is the link to ChatGPTHere is the past article on Conversation AI at JD:3 Lessons in Conversational AI from JD’s Head of the Deep Learning (1 of 2)--——What is Elon Musk’s Plan to 10x Twitter? (2 of 2) (Tech Strategy – Daily Article)From the Concept Library, concepts for this article are:AI as Cheap and Fast PredictionAI: NLPFrom the Company Library, companies for this article are:OpenAI———-Support the show

This week’s podcast is about Elon Musk's take-over and turn-around of Twitter. Lots of cool lessons in what he has done in the first 3 weeks.You can listen to this podcast here, which has the slides and graphics mentioned. Also available at iTunes and Google Podcasts.Here is the link to the Asia Tech Tour.——What is Elon Musk’s Plan to 10x Twitter? (2 of 2) (Tech Strategy – Daily Article)From the Concept Library, concepts for this article are:Audience-Builder Platform with Connected UsersDigital Operating BasicsSocial mediaFrom the Company Library, companies for this article are:Twitter———-I write, speak and consult about digital strategy and transformation.My book Moats and Marathons details how to measure competitive advantage in digital businesses.I also host Tech Strategy, a podcast and subscription newsletter on the strategies of the best digital companies in the US, China and Asia.This content (articles, podcasts, website info) is not investment, legal or tax advice. The information and opinions from me and any guests may be incorrect. The numbers and information may be wrong. The views expressed may no longer be relevant or accurate. This is not investment advice. Investing is risky. Do your own research.Support the show

This week’s podcast is Production and Consumption Ecosystems as digital business models. This thinking is mostly by Professor Mohan Subramaniam, who wrote the book The Future of Competitive Strategy: Unleashing the Power of Data and Digital Ecosystems.You can listen to this podcast here, which has the slides and graphics mentioned. Also available at iTunes and Google Podcasts.My 9 digital business models are:Linear business models (i.e., pipelines)Production EcosystemsConsumption EcosystemsCompany EcosystemsPlatformsPipeline plus Platform Business ModelProtocol networks (i.e., blockchains) as stand-alone businessesPlatform-protocol hybridsProtocol ecosystems (i.e., building blocks)---—-Related articles:9 Digital Business Models: An Intro to Consumption Ecosystems (2 of 2) (Tech Strategy – Daily Article)The Big Strategy Concepts for Web 3 (1 of 3) (Tech Strategy – Daily Article)Why I Really Like Amazon’s Strategy, Despite the Crap Consumer Experience (US-Asia Tech Strategy – Daily Article)3 Big Questions for GoTo (Gojek + Tokopedia) Going Forward (2 of 2)(Winning Tech Strategy – Daily Article)From the Concept Library, concepts for this article are:Production and Consumption EcosystemsDOB4: Connectedness Interoperability and Collaboration Based Business ModelsPlatform Types: Coordination, Collaboration and StandardizationFrom the Company Library, companies for this article are:Haier———-I write, speak and consult about digital strategy and transformation.I also host Tech Strategy, a podcast and subscription newsletter on the strategies of the best digital companies in the US, China and Asia.This content (articles, podcasts, website info) is not investment, legal or tax advice. The information and opinions from me and any guests may be incorrect. The numbers and information may be wrong. The views expressed may no longer be relevant or accurate. This is not investment advice. Investing is risky. Do your own research.Support the show

This week’s podcast is Grab's growth initiatives, which are critical for getting to operating profits. They also provide a case for talking about core vs. adjacency growth.You can listen to this podcast here, which has the slides and graphics mentioned. Also available at iTunes and Google Podcasts.Grab's compelling growth initiatives include:New Services for ConsumersGrabUnlimitedCross-SellingAdvertisingFinancial ServicesMost of this is a summary of work by Chris Zook at Bain’s strategy practice. I am citing the books:Profit from the CoreBeyond the CoreMost all sustainable growth is based on 1-2 strong cores.A profitable core is centered on the strongest position in terms of loyal customers, competitive advantage, unique skills, and ability to earn profits.My list for strong cores are growth / market, competitive advantage and attractive unit economics.Adapting the core can be:New products / servicesNew customers – microsegmentsNew geographiesNew businesses.Six growth adjacencies:New customer segments:New geographiesNew channelsNew productsNew BusinessesNew value chain stepsHow to assess an adjacency move:Factor 1: Adjacency is tightly tied to a strong core.Factor 2: An attractive adjacency market in terms of profit poolsFactor 3: The ability to capture economic leadership in that market.Digital adjacencies are moderate, relentless expansions versus big trees.——-Related articles:Grab’s Big Strategy and Cash Flow Question (1 of 4) (Tech Strategy – Daily Article)Lessons from Grab in Geographic Density and Other Tech Enabled Cost Efficiencies (3 of 4)(Tech Strategy – Daily Article)From the Concept Library, concepts for this article are:Growth: Core vs. AdjacencyGrowth: Explore vs. ExploitFrom the Company Library, companies for this article are:Grab———-I write, speak and consult about digital strategy and transformation.I also host Tech Strategy, a podcast and subscription newsletter on the strategies of the best digital companies in the US, China and Asia.This content (articles, podcasts, website info) is not investment, legal or tax advice. The information and opinions from me and any guests may be incorrect. The numbers and information may be wrong. The views expressed may no longer be relevant or accurate. This is not investment advice. InvesSupport the show

This week’s podcast is about economies of scale in purchasing power. I go through Walmart and Costco as traditional examples. And point to JD, Apple, and Pinduoduo as digital examples.You can listen to this podcast here, which has the slides and graphics mentioned. Also available at iTunes and Google Podcasts.Here are types of economies of scale.CA11: Fixed Operating and Capital CostsCA12: Purchasing Economies and Bargaining Power with SuppliersLarger companies can demand cheaper prices and/or better terms from suppliers than their smaller competitors. This is about bargaining power for important and/or sizeable inputsCA13: Geographic and Distribution DensityCA14: Geometry EffectCA15: Learning ScaleCases of purchasing economiesNewsfeed of offers plus C2M results in purchasing economies. Pinduoduo.Privileged technology access by ApplePurchasing economies. This was JD's biggest lever.Platform business models power over suppliers.——-Related articles:Why I Really Like Amazon’s Strategy, Despite the Crap Consumer Experience (US-Asia Tech Strategy – Daily Article)3 Big Questions for GoTo (Gojek + Tokopedia) Going Forward (2 of 2)(Winning Tech Strategy – Daily Article)Why Netflix and Amazon Prime Don’t Have Long-Term Power. (2 of 2) (US-Asia Tech Strategy – Daily Article)From the Concept Library, concepts for this article are:Competitive Advantage: Purchasing Economies and Bargaining Power with SuppliersFrom the Company Library, companies for this article are:JDPinduoduoWalmartCostco----------I write, speak and consult about digital strategy and transformation.This content (articles, podcasts, website info) is not investment, legal or tax advice. The information and opinions from me and any guests may be incorrect. The numbers and information may be wrong. The views expressed may no longer be relevant or accurate. This is not investment advice. Investing is risky. Do your own research.Support the show