Emergence of 'Neo-Utilities' Blending Software and Infrastructure
Key takeaways
- Future valuable companies may emerge as "neo-utilities" combining software and infrastructure.
- Disrupting essential, often overlooked industries can yield significant value.
- Customer experience is a key differentiator in these emerging models.
Who benefits
Summary
The post highlights a new category of highly valuable companies, termed "neo-utilities," which seamlessly integrate software and infrastructure. These companies are disrupting essential, often unglamorous industries by prioritizing customer experience and innovation.
Why it matters
This perspective offers insights into future investment opportunities and strategic business models, particularly for those looking to innovate in foundational industries often resistant to change.
How to implement this in your domain
- 1Identify "boring" but essential industries within your sector that could benefit from a software-infrastructure hybrid approach.
- 2Evaluate existing business models for opportunities to integrate software-driven customer experience improvements into core infrastructure services.
- 3Research companies like Base, Meter, and Somos to understand their operational and value creation strategies.
- 4Consider how AI could enhance the "software layer" of such neo-utilities, improving efficiency or customer interaction.
Original post by @packyM
""Base and Meter and Somos aren't software companies dressed up as infrastructure, or infrastructure companies with a software veneer; they're both at once. We suspect that some of the most valuable companies of the coming decade will be neo-utilities of this kind – rebels who loo…"
View on XOriginally posted by @packyM on X · view source
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