[{"command":"settings","settings":{"basePath":"\/","pathPrefix":"","ajaxPageState":{"theme":"bvp_2015","theme_token":"nGFy2RJwFyIoTmJ8GRTtWpC3IFzViAC_7isSOAxrAak"}},"merge":true},{"command":"modal_display","title":"Industry Software","output":"\n\u003Cdiv class=\u0022field field-name-body field-type-text-with-summary field-label-hidden\u0022\u003E\n\n \n \u003Cdiv class=\u0022field-items\u0022\u003E\n\n \n \u003Cdiv class=\u0022field-item even\u0022 property=\u0022content:encoded\u0022\u003E\u003Ch3\u003E\u00a0\u003C\/h3\u003E\n\u003Ch3\u003EAN INDUSTRY SOFTWARE REVOLUTION\u003C\/h3\u003E\n\u003Cp\u003EWe think there are a few important drivers that make the opportunity to build industry-specific software larger than ever before:\u00a0\u003C\/p\u003E\n\u003Ch4\u003E\u003Cstrong\u003EA Changing Philosophy Among Buyers\u003C\/strong\u003E\u003C\/h4\u003E\n\u003Cp\u003EThe executives in charge of purchase decisions are a new generation of technology-savvy buyers. They understand that technology is a critical source of competitive advantage. This dynamic can fuel an industry arms race in which all companies in an industry are forced to adopt software as it quickly moves from a \u201cnice to have\u201d to \u201ctable stakes.\u201d\u00a0\u003C\/p\u003E\n\u003Ch4\u003E\u003Cstrong\u003EWinner-Takes-Most Dynamics\u003C\/strong\u003E\u003C\/h4\u003E\n\u003Cp\u003EThis creates a unique opportunity for those that do succeed. Industry insiders talk to each other. They attend the same conferences and run in the same circles. When it comes to software, they typically buy what their peers buy. This creates a virtuous cycle of adoption\u2014resulting in \u201cwinner takes most\u201d market share for leaders. And once established as the \u201cgold standard\u201d, the door is open for leaders to cross-sell additional applications.\u003C\/p\u003E\n\u003Ch4\u003E\u003Cstrong\u003ECloud\/Mobile Capabilities\u003C\/strong\u003E\u003C\/h4\u003E\n\u003Cp\u003ECloud and mobile have made software more useful than ever before. Software is now used in the field via mobile devices, in a collaborative web environment, in conjunction with other web services, in a consumer-like user experience, and in a way that doesn\u2019t require a dedicated IT support staff. This has dramatically increased the number and types of customers that can be served by industry software.\u003C\/p\u003E\n\u003Ch3\u003EPLAYBOOKS THAT EXCITE US\u003C\/h3\u003E\n\u003Cp\u003EWe don\u2019t always get it right, but we\u2019ve been fortunate to learn from many of the best teams in the industry and have picked up quite a bit from them over the years. Here are a few ways we think founders can build big businesses within specific industries:\u003C\/p\u003E\n\u003Ch4\u003E\u003Cstrong\u003EReplace Sleepy Incumbents\u003C\/strong\u003E\u003C\/h4\u003E\n\u003Cp\u003EThe most common and most successful playbook to date. While a handful of publicly-traded industry-specific companies that are native to the cloud have emerged, it is still early days. Hundreds of industries are still held captive by terrible software or have been neglected altogether and so are ripe for innovation.\u003C\/p\u003E\n\u003Ch4\u003E\u003Cstrong\u003EHelp Customers Find New Ways to Grow\u003C\/strong\u003E\u003C\/h4\u003E\n\u003Cp\u003ECloud software can not only help a business run more efficiently, it can also bring a business closer to its customers. Companies like OpenTable drive revenue with features for its end consumers. This was never possible with installed software.\u003C\/p\u003E\n\u003Ch4\u003E\u003Cstrong\u003EFocus on the Mobile User\u003C\/strong\u003E\u003C\/h4\u003E\n\u003Cp\u003EEnterprise software historically catered only to people at their desks. But today\u2019s mobile apps can make a field worker\u2019s day far more productive, freeing up hours that would otherwise be spent physically filling out forms and pushing paperwork. This slows down everything from real estate (broker updates of listings) to hotels (housekeeping) to transportation (repair logs) to restaurants (food inspections) to local governments (work orders to fix potholes). Data entry and workflow challenges are just the tip of the iceberg\u2014virtually every aspect of enterprise activity in the field will be reimagined thanks to mobile devices.\u003C\/p\u003E\n\u003Ch4\u003E\u003Cstrong\u003EAttack the SMB Market\u003C\/strong\u003E\u003C\/h4\u003E\n\u003Cp\u003ENot long ago, small businesses were off-limits. It was simply too expensive to hire sales teams to reach them. It was just as problematic to get software up and running. The world is very different today, thanks to the Internet. The key to making this playbook work is to build software with the simplicity of a consumer product.\u003C\/p\u003E\n\u003Ch4\u003E\u003Cstrong\u003EBuild a Platform\u003C\/strong\u003E\u003C\/h4\u003E\n\u003Cp\u003EWhen most people think of software, they imagine a stand-alone product. But cloud connectivity and APIs allow industry cloud software companies to become platforms with an ecosystem of applications around them. We love the platform model because it drives long-term customer lock-in. If your customers rely on you to act as the hub for other critical applications, it becomes extremely difficult for any new competitors to replace you.\u003C\/p\u003E\n\u003Ch4\u003E\u003Cstrong\u003ETap into Data at Cloud Scale\u003C\/strong\u003E\u003C\/h4\u003E\n\u003Cp\u003ECustomer data used to be siloed in a company\u0027s data center. The cloud now makes it possible to aggregate data and draw insights for a company\u2019s customers. Data enables software to do unprecedented things like benchmarking, predictive analytics, and connecting suppliers and buyers between organizations.\u003C\/p\u003E\n\u003Ch4\u003E\u003Cstrong\u003ELook to Emerging Hardware Platforms\u003C\/strong\u003E\u003C\/h4\u003E\n\u003Cp\u003EWe are in the midst of a hardware revolution. And software is powering it. New hardware platforms will prompt an era of profound opportunity to harness the power of software for industry. Some of the emerging platforms we are excited about include wearables, robots, drones, sensors, and satellites. These devices are becoming increasingly inexpensive, powerful, connected, and ubiquitous. We expect to see a new generation of software built to take advantage of these devices with industry-specific applications.\u003C\/p\u003E\n\u003Ch4\u003E\u003Cstrong\u003ETransform an Entire Industry\u003C\/strong\u003E\u003C\/h4\u003E\n\u003Cp\u003EOccasionally, technology is so revolutionary that it can transform the way an entire industry works. This is perhaps the most compelling opportunity\u2014an industry-focused startup that uses its software to reshape an industry rather than just selling tools to existing industry incumbents.\u003C\/p\u003E\n\u003Cp\u003EUber is perhaps the best example of this. Uber didn\u2019t build a software application to connect livery companies with passengers. Instead, it used technology to fundamentally change how we book cars. Amazon is using technology to reimagine retail. Airbnb is using software to transform the hospitality sector. And LendingClub is reinventing how the financial markets connect borrowers with capital. These companies don\u2019t feel like technology businesses or application vendors\u2014instead, they are using technology to fundamentally reshape the way a good or service is delivered.\u003C\/p\u003E\n\u003Cp\u003EA company that reimagines an industry is the most difficult type of company to build. But because it captures much more of the value chain, it also tends to have the biggest upside. Building a company that will see the world differently seems like a lofty goal, but it\u2019s been proven possible. And we think it is inevitable that visionary founders will continue to transform the way we consume industries like financial services, healthcare, education, and real estate.\u003C\/p\u003E\n\u003C\/div\u003E\n\n \n \u003C\/div\u003E\n\n\u003C\/div\u003E"}]