These Companies Would Still Be Here In 5 Years

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Leaders tend to lose: This is how Richard N. Foster of management consultancy McKinsey summarized a generally observed phenomenon of technology change in 1986. And in reality: The economic history is full of ruins of great companies who believed their size alone protects them from the revolutions of vital innovations and technology changes. An American saying goes like this: "From rags to riches and back again in three generations." The grandfather establishes a company and leads it to success, thbe son held on to this achievement and the grandson ruined everything. In the IT and mainly the online world, it happens a lot faster - it doesn't take three generations any more till the top companies drive against the wall.

Description: These Companies Would Still Be Here In 5 Years (Part 1)

The IT sector is continuously revolutionizing. Only the companies that build their future based on their own survival will last

Only the one who takes over wins

Forecasting the development of technology companies is the most difficult. Many dignified institutions and experts of their subjects have failed miserably with their forecasts - because they estimated the underlying technologies falsely. The academy of sciences thought of crude oil as "a gluey liquid which stinks and cannot be put to any use". The computer science pioneer John von Neumann on whose fundamental computer architecture the PCs are based even today thought in 1949 that the limits of computer technology are reached long back. "There is no money for us in Internet" - this statement of Bill Gates from the year 1994 is infamous. In retrospect, this statement is considered as undesired visionary because it is applicable for Microsoft even today.

One can predict the future only by inventing it - a frequent statement of my college professor. In this sense, the IT enterprises are successful at least in the medium term which "undertake" on their own - they act and not just react. Thus it is necessary to face everyone who is driving the market. Amazon Is Amazon a commercial or IT company? Rather the latter. In spite of the excellent logistics, its success is based on its own core processors in the IT. Here one has managed to become a world wide turning platform for all types of goods and a variety of tradesman from an online bookseller who was erstwhile sneered at. It was understood that one cannot only depend on sales. Amazon primarily offers decision support for purchase which is provided largely even by the customers with the help of evaluations. Amazon is indifferent to the fact which book or which flatscreen monitor is sold. Important is that the customers find the right product for themselves. Now Amazon is also offering IT services and computer capacities - a fact largely unnoticed by the general public. Possibly the next revolution is emerging: If it works out, electronic reading devices can be brought intensively in the market and to standardize virtual - then many publishing houses must be dress warmly. Then the companies can divert the already digitally available book contents of the authors practically directly to the kindles of the customer. The production costs will be almost zero and Amazon could distribute a lot more profit share to the authors as the publisher. Only a chip card for the Amazon reading device is missing to locate the pirate copies to some extent. Amazon definitely has the marque power to set a standard here.

Apple - The recently deceased Steve Jobs had managed to create a brand aura which is unique. No other company has managed that the customers do not ask any cost-benefit question regarding its products which are very irritating for the manufacturer. Only the design and nimbus of Apple products is so alluring that the customers buy them without hesitation.

If you have observed the fans - the customers of the US manufacturer - in an Apple store, how they love to spend their time, how carefully and respectively - even lovingly - they carry the purchased products from the shop, you would know for sure that Apple would still be a success even after five years. Apple fans are not buying something new from Apple because the old one is not functioning. They are buying it because it is something new. There is no reason to assume that it would be change after the death of Steve Jobs.

Google - Critics accuse Google of being a "One Trick Pony". The company earns only from the clicks on the paid search advertisements and AdWords named. Anyone who sees the financial statements of Google would wonder why this would not be sufficient based on the exorbitant profits. The shar employee in Google amounts in six-digit range, in Nokia it is only in the four digit range. Google is moving stringently regardless of the alleged monoculture in the sales channel and linearly towards its initial goal especially lately: Providing information to the people which the need at present -respective of their output device. The word "search machine" does not appear in the mission statement of the company -which is often overlooked.

Google will create its own future: The mobile development is going very slowly for the company. What has been done? A freely available and open source operating system for smartphones is developing. Just after a brief time after its start, it is the most widely used and hence the most successful system. The advantages of the perfect integration and synchronization of stationary, mobile and local services are not only bringing a positive use experience to the users but they are also driving the usage numbers of the corresponding Google services upward. Google+, the new simple-to-operate social network of the company, shows that the spirits there are up again after a period of less appropriate decisions of the old innovations. The positive charged mix of the cleverest brains I also contributing to it which operates Google almost magically in spite of the expensive application procedure.

Huge thanks to the vast exhibition


Description: Samsung Galaxy

Samsung Many sellers recognize the brand name Samsung only from the electronic products on the shelf. However, many IT companies are dependent to a great extent on Samsung in the meantime. Memory chips, displays of all sizes, electronic set-ups and many more bear the character of the South-Korean company under the cap. The company has relied on convergence in the area of flat-screen televisions at a very early stage: It promotes the comfortable connection of devices to web and outdistanced the established manufacturer in shortest time period. Even in case of smartphones, Samsung practically caught up overnight and became one of the most important players in the current market. However, a high willingness of Samsung to invest is the critical point for a positive future evaluation. In the last year, an amount of over RM72 billion was invested for further development - more than IBM, Intel and Sony put together.

Cisco In case of the American gold miners of the yesteryears, there were only few true winners at the end despite the exhilaration. The situation appeared a lot different for the producers of tools. The sellers of pickaxe, sifters and blades raked in a lot of money. Cisco, the manufacturer of network infrastructure is in a similar situation today. Whether web users save their data in Cloud or use a simple online service -Cisco provides the network management behind the curtains and profits from the ever-increasing online boom. The company turned out to be innovative from the very start and is one of the technological drivers in the network technology. Cisco had diversified sufficiently at an early stage so that today the producer covers practically completely not only the necessary backend systems, but is also positioned well in the end-user market.

Poor vision of the losers


Description: Facebook Building

Why the famous names such as Facebook, Microsoft, eBay or Yahoo are not a part of this list? Answer: For all the great problems which make a stable future doubtful.

Facebook The social network is still the greatest online community of the world. But: A keen view tells that really sound business model is still not available. Facebook users do not use the offer in the "search mode" as in case of Google, but in the "entertainment mode". The fact that they respond quite well to the advertisement - proves that Facebook is so far responsible for it. The complete user profiles with the help of which advertisers would provide Facebook users with appropriately tailored advertisements do not generally deliver the required quality. Moreover, Facebook has been frequently criticized due to the lack of data protection. The timeline function retraces the life of the users from birth - that's a step too far even for many online addicts.

Microsoft The company does not have an impressive strategy of how it wants to shape the permanently dwindling meaning of operating system in conjunction with Cloud Computing and thus also the risk of office products. The departments for online products are still sparsely used in case of redmonders. In spite of this, resources were used for the preservation of the old IT world - a perilous strategy.

eBay On one hand, the web service is presently advertising offline very often as one may still believe that there is a fastselling item here. On the other hand, the company is changing intensively into an online market place from the original auction platform - an offer, where the competitor Amazon is excellently positioned. What if Amazon suddenly provides resources for auction sale?

Yahoo The web pioneer has done everything falsely since the internet boom in 2000. The growing market has kept the former giant still alive: high increasing rate on Internet is compensating for the management error so far. Yahoo turned down Sergey Brin and Larry Page with a smile at the end of 1990s as they were introducing a new search technology to the company. It was tersely stated as one cannot earn money with search machines. No one was interested. Brin and Page were practically forced to establish their own company. What an irony - and a lesson.

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