IS IT 1994 ALL OVER AGAIN?
(This post was originally published on April 29, 2021.)
You’ve likely come across an article on blockchain or NFTs (non-fungible tokens) that has left you intrigued, skeptical, and maybe even a bit envious (See: Beeple). It’s understandable. There is a lot to digest.
I had the good fortune to create a digital division for FCB, one of the world’s top communications consultancies, and then found and sell a successful consultancy in the dotcom era advising brands how to navigate the new web frontier. Many of today’s dynamics around NFTs/crypto bring me back to those early days so I wanted to share thought starters for those evaluating this exciting, new space for their brands and creations.
Will NFTs/crypto be as transformative to the fashion and creator spaces as the web browser was in the early 1990s?
You could start by applying the impact of the similarities to your business:
New, exciting ways for commerce, communication, and workflow to happen
Large, global and accessible markets
Sensational early outcomes driving gravity defying enthusiasm
Ripe for innovation and disruption
Full of risk, uncertainty and unknowns (i.e., opportunity)
If you conclude that transformational impact isn’t a question of “if” but “when”, consider, as back then, the operational implications and timing of:
Low Awareness, Understanding and Adoption by both businesses and consumers
Trust in Transactional Security
Need for UI/UX improvements
Limited, Frictionless Cross Platform Interoperability
Impact on IP, Contracts, Licensing, and Ownership
… and more.
Know the ecosystem…
We are seeing new B2C platforms, marketplaces, products, and services, native digital brands (some which might become real world brands) and real world brands moving to digital. On the B2B side, look for companies which support the facilitation of commerce and community between and among consumers, brands, creators, and influencers, and others that improve workflow, finance, and operations to the creative world. One notable difference is there is a deeper and wider set of existing companies that can add these capabilities compared to web 1.0 when so many category creators started. This might create a different set of ecosystem dynamics where large players could enter the game far sooner and more knowledgeable acting as competitor, partner, or funder.
Build a strategy…
That may seem obvious, but the speed and scale of innovation and transformation is incredibly exciting and simultaneously challenging to know where to invest your time and capital. A lesson from the early days of the web was that new technologies, tools, and experiences were initially exciting for brands and consumers. However, once the novelty wore off, time tested fundamentals such as brand differentiation, authenticity, and scarcity, coupled with business drivers like pricing strategy, gross profit, and lifetime value (to name a few) separated the winners from laggards.
Now could be a good time to pursue a clearly articulated strategy to operate in both virtual and real world environments and economies.
Please connect on Linkedin or mike@pebbleventures.com if you’d like to discuss further. Do the same if your company is working in the space. I’d welcome learning more about what you are doing and hearing your thoughts.
Onward,
Mike
