A technology luminary once postulated that software was eating the world: “software is eating the world.” I think we can all agree that indeed, modern tech firms have the world of commerce as a dinner table. . Across all domains, these companies are delivering financial results that most may think that they are not part of this planet: “Tech giants Apple, Amazon, Alphabet and Facebook have reported a combined quarterly net profit of $38 billion”. That happened when many companies were on their knees as a pandemic ravaged the architecture of markets and communities. Yes, global tech found ways to capture value.
Tech giants Apple, Amazon, Alphabet and Facebook have reported a combined quarterly net profit of $38 billion, showing their resilience against a backdrop of “economic malaise,” notes The New York Times. Pandemic-related demand for digital services and gadgets is driving many of the results: Amazon broke another record for sales, continuing its 2020 winning streak, while Apple set a sales record for September, even as it suffered from a delay in the release of the iPhone 12.
Social media giants Facebook and Twitter reported better-than-expected third quarter earnings, but both raised major warning signs about user growth.
Google parent Alphabet returned to growth in the third quarter, supported by digital advertising.
The most intriguing aspect of this redesign is that these companies are capturing values in orthogonal opportunities. Yes, while the hospitals are fiercely fighting the virus, most of them are under economic stress. But the tech firms which provide the necessary tools for the battle are smiling to the financial paradise. Simply, technology firms have found ways to improve productivity and capture value within many sectors, from healthcare to entertainment, and beyond.
And because of this capacity to “eat” the world, big tech has delivered huge value to the extent that Amazon can buy 15 pieces of poor IBM! But do not think that it is only in America; MTN Nigeria packed tons of naira over the last three quarters, hitting close to N1 trillion on revenue.
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Revenue grew by 13.9% to N975 billion over the 3rd quarter, up from N856.549 billion recorded in the corresponding period last year. You know one thing? MTN Nigeria will clearly surpass N1 trillion naira of revenue in 2020. I think MTN currently holds that record in Nigeria; in 2020, the party will surely continue. The CEO, Ferdi Moolman, sums it up: it is data, and nothing but data growth.
Watch this video for some of the ways these firms are deploying to capture value in markets.
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Perhaps we can upgrade the quote to “digital platform business owns the world”, that’s a better verdict, because it’s not really about software, but rather how the business architecture is modelled.
It’s about creating and controlling the narratives, all software run on hardware, but hardware makers have allowed software creators to tell the whole story, relegating them to the background.
The exciting thing about digital platform business model is that it’s applicable everywhere, across all sectors; but it requires being able to reimagine and recreate what you already know in the traditional space.
What could have concerned taxi services and tech? Digital platform made it possible. You see same in streaming movies and other services.
It’s all about storytelling, the better stories you tell, the higher you climb. Nothing grows in silence, you must be heard and seen; the impact must be palpable.