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FABERNOVEL's New Study Explains How The New Disruptors Outperform Google And Amazon In The Network Economy
[November 05, 2015]

FABERNOVEL's New Study Explains How The New Disruptors Outperform Google And Amazon In The Network Economy


SAN FRANCISCO, Nov. 5, 2015 /PRNewswire/ -- The fastest growing superpowers in the Network Economy are not Google, Apple, Facebook, and Amazon, but rather Netflix, Airbnb, Tesla, and Uber. These 'unicorns' have built their massive success on the scaffolding of GAFA's infrastructures, according to a new study from FABERNOVEL. The study, which presents actionable lessons for companies looking to reshape their strategy for the new economy, finds that the fastest-growing superpowers in the Network Economy position themselves as Magnet, Intimate, Real Time, or Infinite Enterprises.

Photo - http://photos.prnewswire.com/prnh/20151105/284216

In 2014, FABERNOVEL released the report GAFAnomics: New Economy, New Rules, detailing how Google, Apple, Facebook, and Amazon – GAFA – were fundamentally reshaping business strategy for the 21st century. GAFA are driven by a common vision of borderless markets and a customer-centric culture which redefined their notions of value creation, core business, and talent management. With over $350B of cumulative turnover in 2014, a 10.7% increase over 2013, GAFA already had a comparable economic power to South Africa, the world's 32nd largest economy by GDP. GAFA's collective available cash of $118B in 2014 was enough to buy British Petroleum.

FABERNOVEL's 2015 study returns to look at GAFA as open network organizers and leaders of the Network Economy. The report, 4 Superpowers to Outperform in the Network Economy, analyzes the new generation of startups GAFA have spawned. It finds thatmore than half of 'Unicorn' startups valued at over $1B relied on GAFA to facilitate and accelerate their launch and their growth. Today's giants, disruptors, and their clones from all over the world have mastered GAFA's rules, and the homogenization of emerging models is gradually shaping a new economy.



These new players are increasingly showing phenomenal growth rates. Unicorns – a category that has more than doubled from 42 to 119 between January 2014 and July 2015 – commonly reach a valuation of $1B in just 18 to 24 months. By comparison, Google took 8 years to reach this valuation, and a classic Fortune 500 company once took 20.

The Internet and its networks have facilitated market access and shifted the location of both resources and value. Whereas in the industrial economy, company-controlled value creation led to centralized resources, the Network Economy's hyper-flow of information, opinions, and access to assets require new approaches. FABERNOVEL's report finds that GAFA and new disruptors like Uber and Netflix are mutating towards a Value Distributor model: organized by network, they identify value points and redistribute them.


FABERNOVEL's study finds that the fastest-growing companies understand and control this network organization, and with it the pool of connections and interactions that provide new performance levers:

  • Magnetic: the company exploits and monetizes micro points of value; 
  • Intimate: the company knows its clients and engages with them in such a way so as to give the impression they are conversing with a friend and not a retailer;
  • Real time: the business adapts its products, offerings, past experience, and future projects in real time;
  • Infinite: the company reaches a critical size through client acquisition at minimal cost.

By dissecting GAFA and their competitors, FABERNOVEL hopes to unveil strategic and operational possibilities to inspire traditional businesses to perform in the new economy.

About FABERNOVEL

FABERNOVEL is an international Innovation Consultancy with offices in Paris, Lisbon, Moscow, and San Francisco. Founded in Paris in 2003, FABERNOVEL works with government organizations and Fortune 500 companies to develop digital strategy, understand the impact of new technologies, and instill a culture of innovation. FABERNOVEL's highly regarded studies, drawn from the firm's hands-on experience guiding organizations through digital change, have been read by over 10 million people worldwide.

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FABERNOVEL // a new world needs new solutions

Transform feared disruptions into business opportunities. Craft impactful user experiences that benefit our clients and their customers. Build agile prototypes to test and develop strong strategic assets. Play a prominent role with a sustainable impact, in the best ecosystems.

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To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/fabernovels-new-study-explains-how-the-new-disruptors-outperform-google-and-amazon-in-the-network-economy-300173263.html

SOURCE FABERNOVEL


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