Please enable JavaScript.
Coggle requires JavaScript to display documents.
Blockchain - Coggle Diagram
Blockchain
Finance: Peer to Peer lending in 1700s, no intermediary one person to another person...lender trusts the borrower
How does trust form? How did the person trust him enough to lend him money?
That's how financial intermediary started...
- This group has money to invest...this other group running a business but need money...
- So they act as a middle man as those group trust them
Trust based on Intermediaries = Centralised Financial System
-
Terms:
-
-
ABDCI - A - AI, B - Blockchain..., C - Cloud computing, D - Data, I - Internet of things
-
Market size is the circle, y axis - performance of product,
red dotted line - csr DD performance improvement, as time passes, DD doesnt increase, line is rather flat not steep
- How many years you replace your laptop/mobile phone 4-5years (it can last, you don't need so many features)
- How frequent as Apple have new models? yearly
Technology development line - is faster than csr DD for performance improvement (Apple new Iphones)
- They are trying to adopt sustaining innovation...for existing companies, leverage on technology to improve their pdt offerings
- At the beginning (early time)...tech always cant perform btr than csr DD (lower than red dotted line)
- Incumbent (existing n big market share) companies invest alot in R&D in early stages
New entrants (tiny start ups) - will start from neglected csr segment (not in inner circle... inner circle is from high end market, ppl who are willing to pay premium price, smaller size means smaller csr base)
- That's why they are on outer circle, bigger csr base, dont have higher purchasing power
2 red dotted lines...
- Lower part is from neglected csr segments (underserved)...have not much expectations for performance improvement
- Mainstream is the upper line....
Disruptive green line:
- If startups (fintech) tech can surpass mainstream/high end csr DD...they will capture the market share of incumbent companies (banks & financial institutions)
What kind of csr are underserved? neglected?
High net worth have enough services - from private banksHow abt individuals
- Who don't have financial records - for banks to use and assess credit, hence banks don't serve them
Disruptive Innovation...example computer industry
- 1970s computers were very heavy and giants - used to serve institutions and government...1980s startups wanted to make smaller and portable (Echo IV vs DEC)
- Manager of the start-up continue high end market (200k) profit margin 60% or move to larger circle neglected csr DD, profit margin 40%...few years reduced to 20% (sell price 2k), profit driven will choose high end - higher profit margin
So disruption doesn't happen overnight, it takes many decades (x-axis) to really cause disruption to the market, existing players
-
-
-
Disruptive Innovation (takes the longest time, hence lowest impact to profit margin)
-