Guest post written by Robert Levitan
Robert Levitan is CEO of Pando Networks. Prior to founding Pando, he co-founded iVillage, Flooz.com and YearLook Enterprises.
After many years using a Research In Motion Blackberry, I recently switched to using an Apple iPhone. Now I am using my phone in many ways I did not previously do so. I am also using my laptop computer less. I doubt I am the only one with this behavior pattern.
While many friends and colleagues have been using the iPhone for years, I feel like I just stepped into the future – and it reminds me of the past. Specifically, it reminds me of the big changes that happen when new technologies dramatically alter our lives.
Mobile devices are definitely the current disruptor in the tech world, redefining our usage of the Internet, computers, video games, digital photos and much more. As someone who’s lived through some technology disruptions in the past, it’s easy to see the parallels from previous cycles. I remember when cable television gave birth to brand-new networks such as ESPN, CNN, and HBO, all of which grew to rival the previously unshakeable commercial television triumvirate: NBC, ABC, and CBS.
The Internet changed the landscape as well. I first went online in January 1995. Two days later, I went to a meeting at AOL, then located in Vienna, Virginia – and only six months after that, I co-founded iVillage, a company with an entirely online-focused business model. I remember the day that same summer, when Netscape went public with a valuation of nearly $3 billion at the end of its first day of trading. Everybody in our nascent industry knew then that online technology would indeed change the world. Subsequently, an amazing lineup of new companies came into existence, including Amazon, Yahoo, eBay, Google and Facebook.
Whether your business is large or small, there is no room to be complacent. You could be relevant today, but some young innovator in Silicon Valley (or Silicon Alley, or a college dorm room) is passionately working on the next disruption which might bring your entire business model crashing down. Even Facebook, a young company with tremendous momentum and a possible $100 billion valuation, felt it needed to stay relevant in mobile and recently spent $1 billion on Instagram “to enhance our photos product offerings and to enable users to increase their levels of mobile engagement and photo sharing.” Some may say that investing 1% of your projected value is a small insurance policy to stay relevant.
Many businesses do understand the “evolve or die” mantra, and you can see it in the ways they’re staying relevant in the mobile world. Barnes & Noble released the Nook e-Reader and grew its online sales in a valiant effort to avoid meeting the same fate as ex-competitor Borders. The recent news that Microsoft will invest heavily into the Barnes and Noble digital business is a significant win for B&N, and also says a lot about how committed Microsoft is to staying ahead of the disruption curve.
The world is changing (again) with mobile technology being the latest disruptive platform. Such times of change are filled with exciting possibilities. New businesses will emerge that are built specifically for a mobile world. They will grow to challenge existing players across many different industries. Such times are also fraught with dangers for many existing businesses which will become less relevant unless they can evolve. Which side of this change will your business be on?
