In the late 1990s, Jack Ma was sitting in a coffee shop in San Francisco when he pondered the story of Ali Baba and the Forty Thieves. And boom! He had the idea that would transform e-commerce in China and the world -- forever.
Alibaba's scalable and profitable business model has turned it from a scrappy startup to one of the world's largest retailers without any of its own inventory. Where many saw a big problem for small and medium-sized merchants, Ma saw a big opportunity.
With 2016 upon us, we're all wondering who the next Alibaba, Uber, or Zomato will be. Looking at which big markets are primed for transformation can give us some insights.
Online Education
High-pressure school environments have drastically increased family spending on education. In South Korea, for instance, the college entrance exam represents a make-or-break moment for young people, and is a big reason why private tuition spending in the country has been consistently among the highest in OECD nations.
Online learning is a way to make education faster and cheaper and perhaps less stressful. Massive open online courses (MOOCs) and mobile apps have made great progress, however, a lot of room for innovation in this space still exists. We now have the opportunity to make education more efficient and accessible to the broader population.
In the realm of professional continuing education, the old ways are changing. Mobile apps like SmartUp, a learning platform which delivers customized content and insights to entrepreneurs, will see increased usage as more on-the-go professionals seek quick and effective learning.
Even the arts are being redefined by online education platforms like Skillshare. Skillshare charges a monthly rate for unlimited classes taught by professionals, ranging from creative writing classes to tutorials on brewing the perfect cup of coffee.
Banking
The news that Myanmar aims to skip the use of credit cards and go straight to mobile payments is certainly intriguing. It's probably wise for other countries to follow suit and simply leapfrog outdated forms of banking.
Advanced financial technology and the enhanced digital banking experience are rapidly making banking easier and less expensive for ordinary people. From the rise of peer-to-peer lending to software-based investment advisors, tons of transformation is already taking place.
And more transformation is inevitably coming in 2016. Innovative ideas will be born out of the need to better serve customers, simplify processes, and scale.
Healthcare
Healthcare issues become more pressing as elderly population surge. China has the fastest ageing population in the history of mankind, and the elderly population already numbers 220 million.
Disruption is needed in healthcare, or else governments, economies and people around the globe will feel the hurt. The end goal should be a better, faster and cheaper healthcare system.
The good news is, help is on the way. Apps like Simplee simplify management of healthcare expenses and healthcare bank accounts can lessen the financial stress for patients. Health care providers like Oscar offers unlimited calls, 24 hours a day, to medical professionals (even going as far as to let you upload pictures of your ailments to share with them).
Real Estate
The real estate industry is bracing for transformation. Niche websites catering to specific markets are the current trend and should continue to gain traction in 2016. Rukamen, an Indonesian company focused solely on providing users with a highly detailed apartment search, is just one of many examples of up-and-coming niche sites.
Additionally, commission fees for brokers can undoubtedly be trimmed significantly, or even eliminated in some cases. Applying for a mortgage with a bank can be sped up as well. We live in the age of information. And the fees and length of the buying process is frankly unnecessary and inefficient.
Waste Management
The waste problem in Asia and around the world is growing, literally, each and every year. The management of hazardous industrial wastes, air pollutants and ocean plastic leakage in Southeast Asia is reaching critical levels.
Unfortunately, waste management itself can be wasteful. In Europe and North America, recycling is still inefficient at best, and in Asia recycling is still a developing industry. There is also much more waste to manage. That's why innovative startups are looking at ways to improve waste collection and use waste as a renewable energy resource.
Some folks are already taking that lead. Enevo, a Finnish startup, collects and analyzes data from refuse containers, and then uses that data to optimize waste collection. That's a promising start, but there is more cleaning up in store for this industry. The hope is that as the need to save our environment becomes more urgent, we will step up to the plate and deliver.
In 2016, these five markets are ripe for disruption because they have nagging issues, but also because simple and innovative solutions are within our reach.
Where else do you think groundbreaking transformation can occur this year?
-----------------------
Alvin Chia is the Innovation Program Lead of DBS Bank. He was previously Innovation Strategist at ?What If! Innovation Partners and began his career as a Correspondent at Xinhua News Agency. Outside of work, Alvin lectures as an Adjunct Faculty and is completing his doctoral dissertation with Delft University of Technology.
Follow Alvin on LinkedIn.
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Alibaba's scalable and profitable business model has turned it from a scrappy startup to one of the world's largest retailers without any of its own inventory. Where many saw a big problem for small and medium-sized merchants, Ma saw a big opportunity.
With 2016 upon us, we're all wondering who the next Alibaba, Uber, or Zomato will be. Looking at which big markets are primed for transformation can give us some insights.
Online Education
High-pressure school environments have drastically increased family spending on education. In South Korea, for instance, the college entrance exam represents a make-or-break moment for young people, and is a big reason why private tuition spending in the country has been consistently among the highest in OECD nations.
Online learning is a way to make education faster and cheaper and perhaps less stressful. Massive open online courses (MOOCs) and mobile apps have made great progress, however, a lot of room for innovation in this space still exists. We now have the opportunity to make education more efficient and accessible to the broader population.
In the realm of professional continuing education, the old ways are changing. Mobile apps like SmartUp, a learning platform which delivers customized content and insights to entrepreneurs, will see increased usage as more on-the-go professionals seek quick and effective learning.
Even the arts are being redefined by online education platforms like Skillshare. Skillshare charges a monthly rate for unlimited classes taught by professionals, ranging from creative writing classes to tutorials on brewing the perfect cup of coffee.
Banking
The news that Myanmar aims to skip the use of credit cards and go straight to mobile payments is certainly intriguing. It's probably wise for other countries to follow suit and simply leapfrog outdated forms of banking.
Advanced financial technology and the enhanced digital banking experience are rapidly making banking easier and less expensive for ordinary people. From the rise of peer-to-peer lending to software-based investment advisors, tons of transformation is already taking place.
And more transformation is inevitably coming in 2016. Innovative ideas will be born out of the need to better serve customers, simplify processes, and scale.
Healthcare
Healthcare issues become more pressing as elderly population surge. China has the fastest ageing population in the history of mankind, and the elderly population already numbers 220 million.
Disruption is needed in healthcare, or else governments, economies and people around the globe will feel the hurt. The end goal should be a better, faster and cheaper healthcare system.
The good news is, help is on the way. Apps like Simplee simplify management of healthcare expenses and healthcare bank accounts can lessen the financial stress for patients. Health care providers like Oscar offers unlimited calls, 24 hours a day, to medical professionals (even going as far as to let you upload pictures of your ailments to share with them).
Real Estate
The real estate industry is bracing for transformation. Niche websites catering to specific markets are the current trend and should continue to gain traction in 2016. Rukamen, an Indonesian company focused solely on providing users with a highly detailed apartment search, is just one of many examples of up-and-coming niche sites.
Additionally, commission fees for brokers can undoubtedly be trimmed significantly, or even eliminated in some cases. Applying for a mortgage with a bank can be sped up as well. We live in the age of information. And the fees and length of the buying process is frankly unnecessary and inefficient.
Waste Management
The waste problem in Asia and around the world is growing, literally, each and every year. The management of hazardous industrial wastes, air pollutants and ocean plastic leakage in Southeast Asia is reaching critical levels.
Unfortunately, waste management itself can be wasteful. In Europe and North America, recycling is still inefficient at best, and in Asia recycling is still a developing industry. There is also much more waste to manage. That's why innovative startups are looking at ways to improve waste collection and use waste as a renewable energy resource.
Some folks are already taking that lead. Enevo, a Finnish startup, collects and analyzes data from refuse containers, and then uses that data to optimize waste collection. That's a promising start, but there is more cleaning up in store for this industry. The hope is that as the need to save our environment becomes more urgent, we will step up to the plate and deliver.
In 2016, these five markets are ripe for disruption because they have nagging issues, but also because simple and innovative solutions are within our reach.
Where else do you think groundbreaking transformation can occur this year?
-----------------------
Alvin Chia is the Innovation Program Lead of DBS Bank. He was previously Innovation Strategist at ?What If! Innovation Partners and began his career as a Correspondent at Xinhua News Agency. Outside of work, Alvin lectures as an Adjunct Faculty and is completing his doctoral dissertation with Delft University of Technology.
Follow Alvin on LinkedIn.
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