1、Important disclosures appear at the back of this report GP Bullhound LLP is authorised and regulated by the Financial Conduct Authority GP Bullhound Inc is a member of FINRA Subscribe to receive GP Bullhound Research and News on 2019 TRENDS from the products we buy, to the films we watch and perhaps

2、 most influentially of all the way we work. Amid the cacophonous noise that often surrounds emerging trends in tech, it can be hard to achieve a sense of clarity about the future. Our aim is to make it clear what, who and how tech will transform our lives. Much is said of a supposed tech-lash, but w

3、e believe that technology has the potential to deliver far more positives than negatives, both in our lives and in businesses. Technology is at the heart of innovation in gaming, television, marketing and it will help businesses to change the world for the better. As we enter 2020 - a brand new deca

4、de its natural to reflect on what has gone by. Instead, we want to look at whats to come. The online streaming race has ramped up over the past year and it will only escalate further in 2020. The big players like Netflix and Amazon Prime will attempt to tighten their grip on the market by splashing

5、piles of cash on original content, while emerging services challenge their dominance. We look at how the disruptors will fair. We also spotlight another race for technological excellence amongst the big smartphone companies. The introduction of the A13-Bionic chip by Apple, the fastest-ever chip in

6、a smartphone, has pushed this race forward, and we expect to see responses by Apples main challengers. A bi-product of these parallel competitions will be a continuing drive forward in efficiency and innovation in smartphones and streaming, and another much-anticipated stride towards efficiency will

7、 be taken this year, as 5G is finally introduced at scale, following years of anticipation. But even at this late-stage, there is still much to fight over in terms of providing the infrastructure and cornering the patents for 5G. In 2020, we will see the unfolding of a battle between companies from

8、across the world to earn the status of premier 5G provider. We look at the impact this tech war could have on the commercial structure of this potentially revolutionary new network. It is clear that new technology will change the complexion of life and business, but so will the developing public und

9、erstanding of the applications of tech. New technologies will raise an array of opportunities for businesses in 2020, but executives will need to acquire the necessary knowledge to implement it effectively. We cover the changes that the improved tech education of business leaders will bring to the u

10、se of artificial intelligence (AI) in business. Many of these changes will be seen in the hyper- personalization of advertising and customer experience. Here, we observe the growing role of AI in marketing and how it will transform businesses ability to communicate with consumers. We assess how AI w

11、ill enable us to make sense of the huge amounts of data that companies store and its implications for tailoring customer experiences. Technology is not just changing the tools that we use to do business, it is also changing the way we think about business. We predict that the trend towards treating

12、products as-a-service will continue into 2020, as more organizations realize the flexibility of this approach. This shift towards subscription-based business models is amongst the innovations we see developing in the gaming sector. Other changes include the expansion of streaming and development pla

13、tforms across the gaming landscape. And finally, at a time when advances in technology are often met with suspicion, we focus on the ways that technology can push us to be better. AI has the capacity to power advances in Corporate Social Responsibility by giving companies access to more accurate rep

14、orting on their impact than ever before. We ask, how can businesses take advantage of these opportunities to boost their positive influence? The rapid pace at which technology changes means that new advances will often be met with anxiety and uncertainty. This mind-set can often obscure the array of

15、 exciting opportunities that new innovations in tech bring. The intention of this report is to shine a light on the new trends that will change the technological landscape in 2020 and beyond. We hope it provides some insight into the opportunities and challenges to come. The View FROM GP BULLHOUND T

16、HE VIEW FROM GP BULLHOUNDTHE VIEW FROM GP BULLHOUND ALEC DAFFERNER PARTNER PER ROMAN MANAGING PARTNER CONNOR SMITH ANALYST MATT YOUNG ANALYST JON CANTWELL EXECUTIVE DIRECTOR BRANDON OVERMYER VICE PRESIDENT PIERCE LEWIS-OAKES ASSOCIATE 54 Recap of GP Bullhounds 2019 PREDICTIONS THE PREDICTIONSTHE PRE

17、DICTIONS DIGITAL BANKING CONTINUES TO RISE 2019 was a repeat of the Boom in Digital Banking fundraising as the excitement around the space continues unabated. Early Neo-bank leaders continued to raise capital and valuations, especially in Europe led by N26s $470m raise at a reported $3.5B valuation

18、in June 2019 and Starling Banks 100m raised in 2019 alone. In the US, competition from incumbents like JP Morgan and Capital One continues to be fierce, limiting the proliferation of US focused Neobanks. However, early leaders continue to scale and add customers as highlighted by Chime and Dave, and

19、 others continue to expand their offering, as evidenced by Robinhoods highly publicized foray into checking accounts. APP DISTRIBUTION MOVING AWAY FROM APPLE AND GOOGLE Throughout 2019 app distribution shifted away from Apple and Google in terms of number of app management and distribution platforms

20、 that gained critical mass. Apple reported 0.2bn fewer downloads in H1 2019 compared to H1 2018 although global app revenues for Apple and Google combined reached $39.7bn in H1 2019 growing 15.4% from the same period in 20181. In 2019, Tinder joined Fortnite in sidestepping the Google Play Stores 15

21、%-30% cost of doing business by using its own payment platform and asking users to enter their credit card information directly in the app2. Many smartphone manufacturers are now generating revenue via paid apps and pre-installs. For instance, Baidu, Tencent, Xiaomi, and Huawei have each developed t

22、heir own app stores. Smaller app distribution and management platforms offer developers alternative go-to-market strategies and a wider variety of app libraries for consumers. EMPLOYEE ENGAGEMENT GOES HIGH TECH This trend showed no sign of slowing down in 2019, as companies of all sizes continued to

23、 invest in technology to manage their human capital. HCM software companies, such as Workday seeking to drive customer engagement and to deliver hyper-personalized consumer experiences. Zalando developed a shopping algorithm which creates an outfit each time a customer selects an item of clothing. S

24、peedo and MAC have allow consumers to virtually try on goggles and make-up, respectively. E-commerce is expected to influence over 50% of in-store purchases as the number of digital buyers in 2019 is predicted to reach 2bn3. Smaller start-ups are developing competitive solutions to augment physical

25、retail. Some start-ups focus on delivering a more personalized in-store experience such as ModiFace, Mystore-E, Scandit, and Zappar which help to identify better shoppers and their preferences. A BREAK-UP OF AN ADVERTISING DUOPOLY The break-up of the advertising duopoly continues as Amazons platform

26、 draws away advertising dollars from Google and Facebook. In 2019, advertisers spent $6.4bn on Amazon advertising accounting for 8.8% of total digital ad spend1. This is expected to rise to 10% by 20202. Amazons key edge over Google and Facebook is its access to customers and the data it collects en

27、abling advertisers to more efficiently target consumers this is of interest to consumer and D2C brands. It also continues to improve its DSP and offer greater flexibility with automated bidding. 50% of retail executives with $50m+ in annual sales are planning to increase ad spend on Amazon, shifting

28、 their budgets away from Facebook and Google. Other players such as Alibaba, Tencent, Snap, Twitter and Baidu are also emerging as competitive threats. Baidu is the most attractive China-based platform with 70%+ market share and 700m users3. LAST MILE DELIVERY GOING THE DISTANCE As retailers have sh

29、ifted their focus and efforts towards improving last mile delivery services, the same-day delivery market is estimated to reach $1bn for 20197 and is expected to show significant growth going forward. Amazon launched Amazon Day and Amazon Counter, and Walmart is taking home delivery one step further

30、 with store-to- fridge delivery services. DoorDash raised over $1bn in 20198 to accelerate growth and enhance its last-mile logistics platform capabilities. Narvar is addressing a different aspect of last mile delivery, helping retailers maximize the post-purchase experience by engaging customers be

31、tween purchase date and delivery date to deliver a complete customer journey. This popularization of tech- enabled last mile delivery services has led to a rise in delivery- oriented solutions. Darkstore is currently building plug-ins for Shopify, BitCommere and Magento. Sensors and IoT are also pla

32、ying a significant role in the real-time tracking of shipments; providing consumers with live SMS alerts and notifications. END OF THE BOYS CLUB This is a trend that is showing incremental gains particularly as it earns coverage in the media spotlight. The VC Diversity Index4 ranks 102 of the larges

33、t US-based VC firms with $250m in AUMs for gender and ethnicity diversity. For 2019, the top performing VCs for gender diversity included Forerunner, BlueRun, Costanoa, Floodgate, and Uncork. The percentage of women in VCs has risen in 2019; however, of the 720 VC firms in the US only c.30% have at

34、least one female partner5. In 2019, 10.4% of venture capitalists across the different fund sizes (micro to mega) were women; an improvement from 8.8% in 20186. Female partners in micro and small firms accounted for 45% of total female partners6. New fund formation accounted for the fastest growing s

35、egment of women in VC with 29% of US firms having at least one female partner and 7% with at least two female partners6. All that said, a more appropriate title for this trend would have been “The Beginning of the End of the Boys Club,” as were starting to see improvements but still have a long way

36、to go. CRYPTOCURRENCY WILL GROW UP Cryptocurrency continued to capture the worlds attention with the rebound in Bitcoin prices in May 2019. The Libra consortium, led by Facebook, generated conflicting reactions from the crypto community with supporters excited about the potential for rapid adoption

37、of any crypto currency, offset by concerns among the community about Facebooks involvement mitigating the many benefits espoused by the crypto community. US Regulators had a decidedly negative view on Libra, effectively causing the consortium to fall apart and resulting in Facebook pausing its US ro

38、llout for the foreseeable future. GPBs prediction that institutional money would flow to crypto assets remains unproven with many investors remaining on the sidelines as the various crypto storylines continue to play out. October 2019 reports that Bitcoin prices may be manipulated by holders of Teth

39、er continue to cast doubt on the markets transparency and ultimately its use as an investable asset class. ARTIFICIAL INTELLIGENCE IS THE END OF REPETITION, NOT THE END OF LIFE Much has been anticipated of artificial intelligence in this decade and it will continue to own the spotlight in the next d

40、ecade as well. However, it was apparent in 2019 that artificial intelligence still has a long way to go to replace jobs performed by humans. In 2019, we did not see autonomous cars flood the streets nor robots replace accountants. Various manifestations of AI, including machine learning, big data an

41、alysis and robotic process automation (RPA) will continue to augment everyday tools. Concur, one of the most popular corporate expense tools, continues to automate daily tasks by implementing image recognition, machine learning for expense categorization and data analysis for reporting. FairmarkIT r

42、aised $11m to leverage AI to automate procurement spend for the enterprises and reduce wasted human errors. The introduction of everyday tools, supported by AI, will continue to infiltrate every days tasks for the foreseeable future. CONSUMER SUBSCRIPTION SET TO ECLIPSE ADVERTISING The Consumer Subs

43、cription Software (“CSS”) ecosystem saw an explosion of activity in 2019. In addition to the obvious proliferation of Netflix clones in the streaming video wars (Disney, Apple TV), the use cases for the CSS business model continue to expand outside of entertainment. In 2019, companies focusing on of

44、fering consumers CSS products ranging from astrology, photo editing, credit management, to personal therapy all received funding from Tier 1 venture capitalists. Acquisitions by strategic buyers have continued with Boeings acquisition of ForeFlight, a tool for amateur pilots, and Vimeos acquisition

45、of Magisto are just the early examples of the interest in the space. 2020 will see the use cases continue to accelerate as entrepreneurs and consumers continue to discover the benefits of the CSS business model. Sources: (1) SensorTower, Global app revenue reached $39 billion in the first half of 20

46、19, up 15% year-over-year, July 22 2019. (2) Fortune, First Fortnite, Now Tinder: How Androids Biggest Apps Are Giving Googles Revenue Scheme the Runaround, July 22 2019. (3) Smallbizgenius, 40 eCommerce statistics every retailer should know in 2019, August 2 2019 Sources: (1) Marketing Land, Almost

47、 70% of digital ad spending going to Google, Facebook, Amazon, says analyst firm, June 17 2019. (2) Amazon Advertising: The 2019 Guide, July 22 2019. (3) Eggplant Digital, Why a way of storing all of a companys data in one location, often in its raw form. This however raises a new challenge in how t

48、o process and make sense of the gargantuan amount of data stored in these Data Lakes, particularly for more traditional brick and mortar enterprises. The main issue for these more traditional businesses is attracting the talent to process, understand and use their data at a time when the world is no

49、t producing enough new data engineers and data scientists to keep pace with the amount of data that we are generating. That is where Syntasa comes in. We ingest this disparate data from Data Lakes, stitch it together into a unified schema for each individual, automatically generate features for data science, and run models to deliver insight into consumer behaviors pulling exactly what compani