The Third Wave

For my second book review I have chosen The Third Wave by Steve Case.

Steve Case was most famously known for being the co-Founder and CEO of American Online (AOL). Since then Case has been remained active in the entrepreneurial scene by helping pass the JOBS Act and investing in startups through Revolution Ventures.

First off let me start by saying this book was written to be modern spinoff of Alvin Toffler’s, The Third Wave. Case starts the book of by addressing three major industries that he believes will have the biggest impact or potential to be most impactful in the future — Healthcare, Eduction, and Food.

Entrepreneurs of the Third Wave are going to challenge the biggest industries in the world.

Healthcare

We will start to see major advances in medicine. These advances will come from new and existing technologies. Trackers such as the Fitbit and Apple Watch actively monitor and upload our health informaiton. The more we are able to track and monitor our the health the more actionable the data becomes such predicting a heart attack. Wearables can also be used to notify us when to take our medicine or drink water to keep our bodies in optimal condition.

Education

Following the theme of using data to become more personalized and actionable, Case mentions the educational industry can greatly benefit from these technologies as well. Each student is unique and learn in their own ways, standardized testing does not work for all. Collecting data on students would allow for a more personal, individualized and data driven curriculum. Each subject would be tailored to to each student maximizing the efficiency and knowledge gained by each student.

Food

There are two main concerns about the food industry, food safety and food waste. Once again technology can play a huge role in making food much safer and drastically reducing the amount of food wasted. Using devices to pick food at the optimal time so they arrive at the supermarket or home fresh. Devices can also monitor if your food is safe to consume. Taking it a step further we can further analyze when is the best time to grow produce and what should be grown in what areas. Supermarkets chains should be able to provide this data.

Next, Case gives us a summary of the last two waves that have shaped the World in to what is today and how the Third Wave will shape the future.

The First Wave

The First Wave can be defined as “ The Building of the Internet.” This stage was all about laying down the foundation for the online world. During the First Wave the infrastructure and foundation were created. This ranges from companies building the first data centers and laying down the cable that would allow Americans to get access to the internet. If you were old enough to remember this would be considered the “Dial-Up Days.” Back in the day the only way to access the internet was to shut off your home phone, cell phones were no popular and almost non-existant at this time, to dial into the internet. At the time all you could really do was load text based web pages and check email. Webpages could take minutes to load.

The Second Wave

The Second Wave can be defined as “Mobile & Apps.” This stage was all about building on top of the internet. We now have features like Search, Social, and eCommerce. Following up on my previous metaphor, this would be considered the DSL stage of the internet. Internet speeds are much faster and allow for user to get much more out of the internet. Webpages are interactive and contain much more content. You can now play games, shop and share online. This is also the early stage of mobile devices being able to access the internet.

The Third Wave

The ThirdWave can be defined as “The Internet of Everything.” This stage is where the internet transforms from something we interact with to something that interacts with everything around us. In this stage the internet is a basic necessity like electricity. During the Third Wave there will also be a shift to “Profit with a Purpose Companies” — companies that have a memorable impact on the world. We already see this emerging today with where the consumer is becoming more powerful. No longer are consumers just buying the latest and greatest tech. With online reviews and forums people are looking to buy from companies they can trust and offer the best customer experience.

The Three P’s of the Third Wave

Partnerships, Policies, and Preserving

Partnership

Your product will only get you so far, success will hinge on the businesses ability to form constructive, supportive partnerships with organizations and individuals that can influence decision makers. Start with small partnerships to gain traction and build on those to gain more powerful partnerships. Once you have build up powerful partnerships you can start to attracting powerful people to join your team or board. These endorsements will build up the companies “attractiveness.”

Policy

If you really want to get ahead of your competition you will need to engage with governments. Be the first to set regulations. Navigate the rules. How do you think telecom companies have built up such a high barrier of entry, they set the rules.

Perseverance

Don’t give up! Entrepreneurs must be highly adaptable to become successful. Your first product or initial idea may not survive, that is fine and completely normal but if you do not pivot and continue learning from your customers you will not make it. You must continue when you hit road blocks, there will be plenty. Startups do not fail because of a bad idea, they fail because of the lack of perseverance, it is easier to give up and say this will never work.

How to Be Successful in the Third Wave

The world is changing, be optimistic!
Winners will have ideas with a big impact and a sense of urgency.
Many long-established, stable profitable corporations will be in jeopardy.

Successful Third Wave Companies will put the most focus on two things: their employees and their product.

Employees

Keep your organization small, it will help with making decisions quicker and easier. Make sure key players get a voice. When it comes to employee morale be sure to always lift their spirits, they are in it with you. Times will get tough, support your employees both emotionally and financially. Always provide guidance, show them around the bend. Remember communication is essential to ensure everyone is on the same page, take the time to explain things even if they seem obvious.

Product

The products of the Third Wave will be tech enabled not tech centric. The user will use apps, but apps wont be the product. these products will be build on technology that already exists. Startups are all about offering a better product at a better price, the only way to do that is to improve what already exists, not creating a whole new technology. New technologies can be created later. The economy is shifting towards Impact Investing — the bridge between traditional business and philanthropy and between financial return and social good.

In Summary, The Third Wave is a great read for anyone who is interested in what the future of the internet and startup business may bring / are bringing. I enjoyed this book because it made me think about how I would like to see the world in the future. The book help spark a lot of new ideas for businesses I have not thought about before.