Jeremy 'Just a guy' Whyte
Great question. I think that’s also the criticism with triple bottom line type models, that they can only be applied so far before you have to pick one corner of the triangle. In LEGO’s case, their next biggest move is digital. They attempted digital way back when processing power was still not quite commoditized. However, thanks to Moore’s Law, I think they’ll have a way easier time this time around actually creating an environment with the complexity that mimicks the physical LEGO catalog. They should still be aligned with their original mission if they can do it properly.
This is a really interesting model. To me, it seems they are in the business of being the go-to option for outsourcing highly specialized R&D. As chips and other pieces of hardware get more and more powerful more and more quickly, I wonder if the same will eventually extend beyond hardware to the design of architecture embedded. At some point, will marginal gains in energy efficiency be worth the investment on the design side and put pressure on ARM’s model?
Bankole, great piece on GTBank. You mention competitive headwinds from Global Banks coming into Africa, which makes complete sense. I wonder, however, if there might be greater headwinds from mobile banks that have no actual physical infrastructure? From what I can tell, these non-traditional competitors are taking share in Africa, so I’d be curious to know your thoughts on what the impact might be.
Great case, Mike. Over the course of TOM and RC year in general, one of the processes I found most powerful was going back to basics and defining what a product actually is. This is a classic case of a business founder understanding that, at the end of the day, a product is a way to deliver value, and productizing something that hadn’t been thought as a way to deliver value before. As you alluded to with the revenue/ops model, this business model of flipping the value proposition of a Gas Station on it’s head would not be easy to replicate by competitors who operate differently. With that said, what do you think it would take for this value proposition to be eroded by competition? Where do you think the next area of innovation is for the company?