Tag Archives: Spotify

Insurtech’s Act 2: About to Start

How long did it take to sell 240,000 insurance policies online in 2017? Most insurance leaders across Asia guess “at least a few weeks.” The reality is that, in the age of digital, it only took one second. The record was set on Alibaba’s Tmall.com website on Nov. 11, 2017, by Zhong An, Chinese digital-first insurer and the most successful global insurtech so far. The total for that day was a staggering 860 million insurance policies sold online. The pace of Zhong An’s growth has given the much-needed wake-up call for the insurance industry.

Opening Act of Insurtech

Insurtech had emerged in 2012, and over the last six years the insurance industry has started to embrace it. While there’s been a lot of excitement about insurtech, most of the digital efforts so far have been largely incremental—insurance products are becoming slightly cheaper, their distribution becoming a little bit more digitally enabled and the back-office becoming marginally more efficient. The “opening act” focused on the low hanging opportunities that kickstarted the insurtech wave globally.

Now as opportunities susceptible to incremental tech solutions quickly dry up, many insurance managers are concluding that insurtech might have run its course, and, going forward, it will be back to business as usual for insurance. They will be in for a surprise!

The perfect analogy for the current stage of the insurance industry is a record label in the age before digital music. Record labels erroneously believed they were in the business of CDs, which drove them to focus on pushing pre-packaged products with a single feature that consumers wanted, delivered to customers via expensive and inefficient distribution music store networks.

See also: Digital Insurance 2.0: Benefits  

The valuable lesson being that the full force of disruption did not come when records started selling CDs online but when Napster hacked through the oligopoly of record labels and force-unbundled their products. While Napster ultimately didn’t survive, it disrupted the status quo by pushing record labels to finally unbundle their products and make them available to digital-music distribution platforms such as iTunes and Spotify.

The latest trends coming out of China are pointing to an early shift in insurance fundamentals. So the current slowdown in insurtech is not an end, but the beginning of the ecosystem transition toward the “Spotify moment” for the insurance industry.

Main Act of Insurtech

The “Spotify moment” happens when a discretionary spending item, like music, gets transformed from an occasional luxury into a utility that millions of customers rely on as their trusted daily tool. The key trigger for a “Spotify moment” is a combination of frictionless customer experience, mass-customization that closely matches consumer’s needs, perceived value for money and access to wide variety of choices.

The “Spotify moment” will see insurance products simplified down to their core coverages and then embedded frictionlessly into digital ecosystem. This moment is now fast approaching, and it will bring with it the “main act” of insurtech.

In the main act, insurance will move closer to becoming a risk transfer utility and a seamless part of consumers’ day to day digital service consumption. Digital businesses will start to dynamically pick the coverages that are relevant to the specific “worry profile” of their users and allow users to add those alongside their core services.

Insurers have a narrowing window of opportunity to prepare or risk being sidelined into niche segments. Key strategic activities should include the following:

Product Sprints. Cross-functional teams will need to start executing rapid product unbundling and creation of digital-oriented stand-alone coverages. Currently, it takes insurers on average six to 12 months to launch a consumer insurance product. In the future, product design will need to happen in five-day sprints and become iterative, to identify best product-market fits within the digital ecosystem.

See also: Stretching the Bounds of Digital Insurance  

Opportunity Management. Evaluating digital opportunities by the same metrics as legacy business is a sure way to destroy any sign of innovation. Digital requires a strategic “VC” approach to opportunity selection and management. Placing many strategic bets will let organization learn and iterate quickly from both mistakes and successes.

Dedicating investment pool and digital P&L will keep accountability and ownership clear. Lastly, providing the best support for digital opportunities will maximize the probability of success. After all, would you rather lose your best resources to your self-disrupting digital team or to Amazon?

Startup Collaboration. Working with startups and approaching them as high-potential partners will give the organization the right cultural compass and position it well for the dynamic digital insurance ecosystem.

The future of insurance is digital; resistance is futile!

The World Is Flat; Insurance Is Round

Why Lemonade is Going Global

It’s a curious thing: Most insurance companies stop at the water’s edge. Europe’s largest insurance companies operate in dozens of countries, but most don’t offer insurance to consumers in the U.S. Same is true for those operating out of Asia Pacific and Africa.

And it cuts both ways: American consumers buy insurance from American firms, most of which don’t have any operations to speak of outside of the Land of the Free. It’s odd. The Atlantic and Pacific oceans are vast, but they can be crossed. And bits and bytes can cross them in milliseconds.

As a tech company doing insurance, we see no reason that a body of water should be an obstacle to reaching new markets and expanding beyond the 50 states. In fact, within the U.S., we’re finding that being digital has allowed us to cross the country without enlarging our physical footprint.

Consider this: California is our largest market at the moment, but our nearest employee to the Golden State is 3,000 miles away in the Empire State.

Our announcement of a $120 million Series C funding round led by SoftBank sets the stage for our global expansion.

See also: Lemonade’s Latest Chronicle  

See, to bring AI-powered insurance to Mumbai, London, Rio de Janeiro or Sydney, there’s no need to invest in thousands of people in towering skyscrapers. Like Airbnb or Spotify, our services require little more than a mobile phone and a credit card. In our largest markets, we have zero employees.

Sure, we’ll need to invest time with regulatory bodies and learn to adapt to local culture, customs and languages. But our mission is a global one, and our means to go global lie in our being a digital pure-play.

When Tom Friedman wrote about the waves of globalization and the “flattening” benefits of it in the 21st century, he declared that the world went from being small to tiny. He dubbed the change Globalization 3.0, following the previous rounds of globalization, in the 15th century and later when multinational companies emerged.

At the turn of this century, Globalization 3.0 moved the needle in such an enormous way that it’s not only a difference in size, it’s a difference in kind.

Fast forward almost two decades, and insurance powered by bots and data-driven algorithms means we can reach endless people in all corners of the globe and provide them with a similar yet customized experience, without the heavy bureaucracy and costs that discourage the traditional insurance carriers of venturing across the ocean.

Digitally enabled folks have a common denominator: They tap to get a ride, order a meal, get groceries delivered, find a soulmate… and they’d readily do the same to get insurance. We may be divided by international borders, but our connectivity is so intertwined that it has become the natural fabric that weaves us together.

It’s not only the technology that makes international prospects so enticing. We believe our mission of trust and transparency is universal, too.

Through his behavioral economics research, our Chief Behavioral Officer Dan Ariely reminds us that the way the insurance system is designed brings out the worst in us humans. Whether you’re in New York or Paris or Tokyo, that inherent conflict between insurance company and its customers brings out bad behavior from all sides. Bad behavior is rooted in the same human nature all over the world.

See also: Lemonade Really Does Have a Big Heart  

So we’re not stopping at the water’s edge. We believe that being built on AI and behavioral economics means that, at a profound level, we’re building something with universal appeal. The world is flat; it’s time insurance was, too.

Lemonade Really Does Have a Big Heart

Twelve months ago, Lemonade opened for business. For me, it marked the start of a new chapter in the history of the insurance industry. To coincide with their launch, I posted this article after speaking with CEO and co-founder Daniel Schreiber. The headline was “insurance will never be the same again!”

Of course, it was easy for me to make such a grand pronouncement 12 months ago, on the day that Lemonade hit the street. At that time, they had no customers, had not written any insurance and had certainly never paid a claim.

One year on, and Lemonade is up and running. Was I right to say insurance would never be the same again? I caught up with Daniel again to find out!

Disruptive Innovation

First things first, let me set some context. A question I get asked a lot by insurers and industry folk is, “why should we be interested in what Lemonade are doing?” It’s a great question and exactly what they should be asking. (I also point out that they need to be really interested in what ZhongAn is doing, as well).

To massively over-simplify and paraphrase Clayton Christensen, Lemonade has brought simplicity, convenience and affordability to a marketplace where the existing offering is complicated, expensive and inaccessible.

This is why the incumbent insurers need to take note when Lemonade pays a claim in three seconds. Otherwise, they could end up like DEC. Once the market leaders in minicomputers, DEC dismissed the rise of PCs, only to watch helplessly as IBM and Apple ate their lunch with personal computers.

Or Kodak, the inventor of digital photography. The company was too wedded to an outdated business model that relied on people printing their photos. That was until it was too late, and Kodak went from being the world’s fourth largest brand to bankrupt in less than two decades!

Now, it might have taken about 15 years for the demise of Kodak and about 10 for DEC to wake up and smell the coffee. The point being that disruptive innovations don’t take hold overnight; they need time to gain traction and build momentum.

But in this digital age, this speed of change is increasing. This is the key characteristic in the World Economic Forum’s definition of the 4th Industrial Revolution. It took Google just five years to hit a $1 billion in revenues. And Amazon only four!

Just think about this for a second. A decade ago, we didn’t have the iPhone, the iPad, Kindle, Uber, AirBnB, Android, Spotify, Instagram, WhatsApp, 4G. Could you imagine life without these now? Could you conceive that insurance is going to change and for the better?

You trust me, and I will trust you

There is another reason why incumbent insurers should be watching Lemonade very closely. It has addressed the fundamental issue with insurance and customer perception, which is trust, behavior and the conflict of interest.

There’s a ton of research and data that shows customers don’t trust insurers. And for good reason.

Insurers make the product complicated by using fancy jargon that Joe and Josephine Bloggs can’t understand. Insurers get paid up front and then create hurdles and barriers when the customer rightfully asks the insurer to do what they’ve already paid them to do.

And worse, the customer has to prove they are not a liar to the insurer’s satisfaction before a penny is paid out.

“Insurance fraud has become a self-fulfilling prophecy for incumbent insurers,” Daniel said. “They don’t trust customers to be fair and honest. This drives their behavior toward customers. And guess what, customers respond accordingly. Which justifies the insurer’s behavior in the first place. It’s a vicious circle that neither side can break.”

See also: Lemonade’s New Push: Zero Everything  

Lemonade’s virtuous circle

This conflict of interest doesn’t exist in the Lemonade business model. By operating as a tech platform that is also an insurance carrier, Lemonade has separated cost of operations from the pool of risk capital. It has also raised the bar when it comes to total cost of operations at 20% GWP.

Lemonade don’t profit from non-payment of a claim (in the way an incumbent insurer does). The company starts by trusting customers to make honest claims. Which is why Lemonade pays out straight away, with around a third of claim payouts fully automated. No human intervention at all.

Lemonade accepts that there are a few bad apples but works on the premise that most of us are fundamentally decent people.

It is usually at this point that the diehards and old laggards of the insurance industry start throwing fraud and loss data at me. Citing decades of data that proves Lemonade will eventually crash and burn under the weight of inflated and illegal claims.

My response is always the same “hands up everyone who is a bad person.” Of course, no hands go up because the vast majority of us are decent, respectful, honest people.

Which is why Lemonade has now had six, yes ,SIX, customers who have handed claims payouts back.

Just think about this for a moment.

A customer makes a claim (in seconds), gets paid (immediately), finds the situation has changed (later), realizes he got paid too much (oops!), then gives the payment back (you kidding me?).

Could the customer’s behavior be directly related to Lemonade’s behavior?

Yes, certainly! You only have to look at customer behavior at Grameen Bank in Bangladesh to see that trust can be relied  upon. Here, unsecured personal loans are repaid on time without the need for credit scores and debt collection agencies.

You don’t have to take my word for it, either. Hot out of the oven is this video of Lemonade customers in New York.

So, what’s the story, one year on?

Lemonade has been true to its word on the subject of transparency.

Throughout the year, the company has published its numbers, warts and all, for everyone to see. Building and maintaining trust is fundamental to Lemonade’s business model, and this starts with being open and honest.

Daniel has shared with me the latest numbers, and they are very impressive. I won’t repeat them here, because I know the team will be posting them all shortly in the latest Transparency Chronicles. They’re proud of the numbers, and rightly so.

See also: Lemonade: World’s First Live Policy  

All I will say is that Daniel and the team have steered a considered and thoughtful course in their first year. They could have chased the numbers, as many first year startups would do, only to regret the quality of business they end up with.

But Lemonade’s team has stuck to their knitting, have impressive growth numbers, a quality customer base completely aligned to the brand and are now licensed in 18 states (with more to follow).

Our job has only just started,” Daniel said. “Over the next year, we will continue to make insurance easier and better for our customers. One area we’ve started to look at now is the underlying insurance language and the products that form the heart of all insurance.”

Are you surprised?

You shouldn’t be! Lemonade is a highly professional startup and will no doubt become the definitive case study for exactly how “it” should be done.

But has this surprised Daniel?

“There are two things that have surprised us this year,” Daniel told me. “First, the extent of the warm reception we’ve received across the industry and from customers. We hoped customers would like us, but we never took for it granted.

“After all, you can’t beta test a new insurance company. The MVP (minimally viable product) approach simply doesn’t apply to insurance. It’s regulated and has to be the real deal from the get-go, right first time. So, for us, having customers put their faith in Lemonade from Day One has been very satisfying.

“The second is that our faith in humanity and behavioral economics has been affirmed. There will always be people who want to game the system, but on the whole, all our expectations about customer behavior have been exceeded.

“Who would have thought we would have six customers who gave their claim payouts back. That is very gratifying and also humbling for us. And gives us encouragement to continue doing what we are doing.”

Lemonade is live; insurance will never be the same again!

For me, I’m convinced. Historians will look back to Sept. 21, 2016, the day that Lemonade opened for business, as a watershed for the insurance industry.

Which means, of course, that the key question now is, who among the incumbent insurers will provide the Kodak moment? The one who simply missed that the world had changed until it was too late.

Why Customer Experience Is Key

Disruption is inevitable, and no organization is immune. Findings from McKinsey suggest that the current pace of disruption is happening 10 times faster than the Industrial Revolution, at 300 times the scale, and with 3,000 times the impact. This is an unprecedented opportunity for businesses to thrive, but at the same time an unprecedented threat to slower-moving organizations, which may end up allowing themselves – or their industry – to be disrupted.

“We are at the precipice of unbelievably powerful advancements driven by technology. We no longer have to ask if we can do it, but if we should do it, and, if we do, how do we do it responsibly,” says Eric Boyum, managing director, technology and communications industry, at Aon.

Embracing disruption – both managing it and anticipating it – is crucial for businesses to thrive during this change. But what constitutes disruption, and how does it differ from innovation? Putting the customer experience first and truly understanding audience needs is critical. From agility to forward-thinking industry trends, established organizations can learn from newcomers and help their teams innovate on behalf of customers – key to thriving amid change.

In Depth

Today, innovation and disruption confront many industries, driven by a host of entrepreneurial firms looking for opportunities to beat incumbents at their own game. The situation becomes even more interesting, however, when entrepreneurs are a leading force in creating a new game.

Boyum, who works with some of the world’s leading technology companies, offers a key distinction between innovation and disruption: “All those that participate in disruptive movements can be considered innovators – however, not all those that innovate are necessarily disruptors.”

Randy Nornes, executive vice president, Aon Risk Solutions, elaborates: “Disruption does not come from typical competitors,” where most companies traditionally focus their defensive efforts. Instead, disruptors often originate from outside the industry being disrupted – which means established players don’t recognize what’s happening until too late. The disruptor then captures and develops a market, eventually unseating incumbents.

See also: Key to Digitizing Customer Experience  

When Apple released its first smartphone in 2007, it probably wasn’t looking to transform the transportation industry. But it turned out that putting a GPS unit in the pockets of billions of people across the world would crack open a whole universe of commercial applications inconceivable to the original inventors. Uber, the paradigmatic “disruptor,” was quick to see the opportunity.

Smartphone technology was available to everyone. Uber’s ability to capitalize on Apple’s innovation and aggressively outpace incumbents in the taxi industry through offering cheaper, more flexible rides, marked it out as a true disruptor. It is now the most valuable private company in the world.

Apple itself was, of course, also a disruptor. It jumped on the then-new technology of file-sharing with iTunes and disrupted (many would say fatally) the physical music retail industry. Spotify, in turn, disrupted iTunes by putting subscription streaming ahead of paid downloads.

It’s not just about innovating and making products better – it’s about anticipating consumer needs. This type of disruption often comes from new players, as opposed to traditional competitors. “The company that provides the most taxi rides does not own any taxis; the company that rents the most rooms does not own any rooms, and the company that distributes the most media does not generate any content,” Boyum says. “These companies are, of course, Uber, Airbnb and Facebook.” They got there not by being the best in their field at providing a certain product but by providing a completely new one.

Data for the People

“We’ve seen entire industries emerge because they promise something to the end-user: a better customer experience,” Nornes says. Uber could have made bigger, plusher taxis. Instead, it correctly saw that what travelers wanted out of their experience wasn’t necessarily luxury but affordability and convenience of a kind that traditional taxis had yet to provide.

Through a data-driven understanding of audience or a market, disruptors seek to prioritize customer experience and work to improve the status quo – often creating a new one. “A lot of sharing economy companies focused on technology and new ways of capturing data,” Nornes says. “In the transportation world, disruptors leveraged the GPS technology that’s inside a smartphone to create a superior service.” In turn, this data has been used in other ways to improve the ridesharing services. An Uber passenger can feed back data via ratings, which the company can then leverage to further optimize user experiences and create a model that is, to an extent, self-regulating.

This data-led process of transformation is set to intensify. By 2020, there could be 20 billion internet-of-things devices worldwide. Understanding the emergent narratives of consumer behavior that this enormous mine of data produces will be the first order of business for tomorrow’s would-be disruptors.

The Ripple Effects of Disruptive Innovation

“The most important lesson to learn is that disruption can happen to everyone – no one is immune,” Boyum says. This disruption can come in many forms, other than direct competition.

Nornes asks: “How do you deal with independent contractors? How will regulations evolve? What are the talent implications – do companies have the necessary disruptive talent to keep ahead of competitors?” Some of the more wide-reaching implications of disruption could include:

Insurance & Regulations: Businesses don’t operate in a vacuum – from insurance to regulations, they are governed by a complex network of secondary services, which will also have to adapt to disruption. Current insurance policies are built on certain assumptions about how customers engage with products or services. Initially, Uber struggled with getting its drivers insurance coverage, as providers had no products that accommodated the unique risks of non-employee drivers – of course, disruption here also means an opening of markets for new products.

There must also be responses to the shifting nature of work in the gig economy. Is an Uber driver a freelancer using an app, or should he be treated – and compensated – as a full employee?

Employment & Talent: Headlines proclaiming an unemployment doomsday at the hands of automation are abundant. Don MacPherson, partner, Global Engagement Practice at Aon Hewitt, frames this as a hiring and retention issue: “Are we still going to be able to bring people into this organization as we’re seen to be shedding jobs that are now obsolete?”

But, he explains, organizations should relish the opportunity to transform their talent and training strategies. Incumbents should look at what innovators are doing: What types of talent are they bringing on? How flexible is that talent? And, perhaps most importantly, are they fostering functions like R&D, which will allow them to leverage their disruptive capabilities in a competitive environment?

Societal Impact: Models that disrupt multiple industries, like the sharing economy, also have widespread societal implications. A firm like Airbnb disrupts far more than just hospitality incumbents. Homesharing can create incentives for more buy-to-rent activity, which causes distortions in rental markets as prices rise. This, in turn, can provoke regulatory responses from local governments – which affect the whole housing landscape, rather than just the operations of one company. And so they have, in Paris, San Francisco and New York.

The onus is on the disruptors to communicate the benefits they bring for all stakeholders. For instance, customers enjoy ridesharing because it’s more affordable and convenient, but reducing the number of cars on the road also helps fight pollution. Similarly, flat-sharing could emphasize the tourism revenue it generates.

See also: Smart Things and the Customer Experience  

Disrupting for Tomorrow

If companies can perform this balancing act – from embracing new technologies, models and services around consumer needs, to preparing for the unknowns that disruption can bring – then they can find huge success in the coming years.

“Disruption is the result of dramatic innovation. And whether business models rise and fall on this is not the point,” Nornes says. Disruption is a bigger trend than the fortunes of an individual company – it’s the rise of new ways, perhaps better ways – of doing things. By recognizing evolving customer needs and forcing new ways of thinking within an organization, companies and their leaders can make sure they are on the right side of history.

 

How Tech Created a New Industrial Model

With a connected device for every acre of inhabitable land, we are starting to remake design, manufacturing, sales. Really, everything.

With little fanfare, something amazing happened: Wherever you go, you are close to an unimaginable amount of computing power. Tech writers use the line “this changes everything” too much, so let’s just say that it’s hard to say what this won’t change.

It happened fast. According to Cisco Systems, in 2016 there were 16.3 billion connections to the internet around the globe. That number, a near doubling in just four years, works out to 650 connections for every square mile of Earth’s inhabitable land, or roughly one every acre, everywhere. Cisco figures the connections will grow another 60% by 2020.

Instead of touching a relatively simple computer, a connected smartphone, laptop, car or sensor in some way touches a big cloud computing system. These include Amazon Web Services, Microsoft Azure or my employer, Google (which I joined from the New York Times earlier this year to write about cloud computing).

Over the decade since they started coming online, these big public clouds have moved from selling storage, network and computing at commodity prices to also offering higher-value applications. They host artificial intelligence software for companies that could never build their own and enable large-scale software development and management systems, such as Docker and Kubernetes. From anywhere, it’s also possible to reach and maintain the software on millions of devices at once.

For consumers, the new model isn’t too visible. They see an app update or a real-time map that shows traffic congestion based on reports from other phones. They might see a change in the way a thermostat heats a house, or a new layout on an auto dashboard. The new model doesn’t upend life.

For companies, though, there is an entirely new information loop, gathering and analyzing data and deploying its learning at increasing scale and sophistication.

Sometimes the information flows in one direction, from a sensor in the Internet of Things. More often, there is an interactive exchange: Connected devices at the edge of the system send information upstream, where it is merged in clouds with more data and analyzed. The results may be used for over-the-air software upgrades that substantially change the edge device. The process repeats, with businesses adjusting based on insights.

See also: ‘Core in the Cloud’ Reaches Tipping Point  

This cloud-based loop amounts to a new industrial model, according to Andrew McAfee, a professor at M.I.T. and, with Eric Brynjolfsson, the coauthor of “Machine, Platform, Crowd,” a new book on the rise of artificial intelligence. AI is an increasingly important part of the analysis. Seeing the dynamic as simply more computers in the world, McAfee says, is making the same kind of mistake that industrialists made with the first electric motors.

“They thought an electric engine was more efficient but basically like a steam engine,” he says. “Then they put smaller engines around and created conveyor belts, overhead cranes — they rethought what a factory was about, what the new routines were. Eventually, it didn’t matter what other strengths you had, you couldn’t compete if you didn’t figure that out.”

The new model is already changing how new companies operate. Startups like Snap, Spotify or Uber create business models that assume high levels of connectivity, data ingestion and analysis — a combination of tools at hand from a single source, rather than discrete functions. They assume their product will change rapidly in look, feel and function, based on new data.

The same dynamic is happening in industrial businesses that previously didn’t need lots of software.

Take Carbon, a Redwood City, CA maker of industrial 3D printers. More than 100 of its cloud-connected products are with customers, making resin-based items for sneakers, helmets and cloud computing parts, among other things.

Rather than sell machines, Carbon offers them like subscriptions. That way, it can observe what all of its machines are doing under different uses, derive conclusions from all of them on a continuous basis and upgrade the printers with monthly software downloads. A screen in the company’s front lobby shows total consumption of resins being collected on AWS, the basis for Carbon’s collective learning.

“The same way Google gets information to make searches better, we get millions of data points a day from what our machines are doing,” says Joe DeSimone, Carbon’s founder and CEO. “We can see what one industry does with the machine and share that with another.”

One recent improvement involved changing the mix of oxygen in a Carbon printer’s manufacturing chamber. That improved drying time by 20%. Building sneakers for Adidas, Carbon was able to design and manufacture 50 prototype shoes faster than it used to take to do half a dozen test models. It manufactures novel designs that were previously theoretical.

The cloud-based business dynamic raises a number of novel questions. If using a product is now also a form of programming a producer’s system, should a company’s avid data contributions be rewarded?

For Wall Street, which is the more interesting number: the revenue from sales of a product, or how much data is the company deriving from the product a month later?

Which matters more to a company, a data point about someone’s location, or its context with things like time and surroundings? Which is better: more data everywhere, or high-quality and reliable information on just a few things?

Moreover, products are now designed to create not just a type of experience but a type of data-gathering interaction. A Tesla’s door handles emerge as you approach it carrying a key. An iPhone or a Pixel phone comes out of its box fully charged. Google’s search page is a box awaiting your query. In every case, the object is yearning for you to learn from it immediately, welcoming its owner to interact, so it can begin to gather data and personalize itself. “Design for interaction” may become a new specialization.

 The cloud-based industrial model puts information-seeking responsive software closer to the center of general business processes. In this regard, the tradition of creating workflows is likely to change again.

See also: Strategist’s Guide to Artificial Intelligence  

A traditional organizational chart resembled a factory, assembling tasks into higher functions. Twenty-five years ago, client-server networks enabled easier information sharing, eliminating layers of middle management and encouraging open-plan offices. As naming data domains and rapidly interacting with new insights move to the center of corporate life, new management theories will doubtless arise as well.

“Clouds already interpenetrate everything,” says Tim O’Reilly, a noted technology publisher and author. “We’ll take for granted computation all around us, and our things talking with us. There is a coming generation of the workforce that is going to learn how we apply it.”