How To Improve The Pace Of Emerging Technology
By Greg Kahn
Emerging Tech Exchange
Founder & CEO
Published on February 13, 2023 - FORBES (Source)
The calamitous holiday travel experience illustrates how stunted I believe emerging technology is in the U.S.
Over Christmas, all airlines faced numerous cancellations due to harsh weather conditions. But for Southwest, which canceled tens of thousands of flights, the debacle was “further exacerbated by staff shortages and the company’s outdated scheduling software,” according to Forbes. The airline’s scheduling system was overwhelmed by attempts to match flights with pilots and flight attendants, and eventually, all scheduling had to be done manually, the Wall Street Journal reported.
I expect Southwest will likely rush to update its technology. That’s the textbook response following a challenge like this.
Yet, this is not simply one airline’s or even one industry’s story. As an investor and strategic advisor to technology companies, I’ve observed a larger issue: a general lack of breakthrough digital transformation over the past three years. From my perspective, the pace is slow in areas such as transportation, the connected home, cities and workplaces. There is a causal link here.
A Bullet That Moves Like A Snail
The supply chain bottlenecks that, in part, led to rising inflation in 2022 weren’t just due to the global shocks following the depths of the pandemic. I would argue that tech, or the lack of it, played a key role as well. Systems managing the movement of goods throughout the supply chain are often outdated.
And it’s not just the movement of goods that faces roadblocks. For example, Californians have waited nearly 15 years for the nation’s first “bullet train.” When the Golden State’s project to connect the distance between Los Angeles and San Francisco was first approved by voters in 2008, completion was promised by 2020. Work finally began in 2022 on a 171-mile starter line. Even with that lowered expectation, the goal is to now finish the job by 2030.
These anecdotes aren’t merely symbolic of the way the U.S. approaches emerging tech. I believe the difficulties presented by these situations are symptomatic of the problem stifling the greater realization of a range of technologies. What’s wrong? From my perspective, there’s been a lack of a coordinated approach among science, the public sector and business.
The current administration seems to be trying to address this with both the $1 trillion infrastructure bill and the $50 billion CHIPS Act, which aims to strengthen domestic semiconductor manufacturing, design and research. Yet, any misstep on either effort could set back the progress we need.
Accelerating The New Silicon Valleys
Most Silicon Valley myths begin with tales of technological wizards tinkering with homemade computers in a garage. It’s not far from reality. But part of what helped Silicon Valley become the birthplace of modern tech that it is today is its proximity to research universities like Stanford. As companies were being built, a community devoted to pushing technological advances further sprang up. This public and private marriage of research and development created the magic that we recognize and celebrate today.
Right now, I believe government support for reforming infrastructure and expanding semiconductor production at home has led the southeast to evolve as a production hub for electric vehicles. Arun Kumar, a managing director at AlixPartners, told ABC News that “46% of vehicle production in the U.S. currently happens in the South.”
I predict that the expansion of EV production in the south will alter the image of these cars. The stereotype of electric car owners as “coastal elites” will give way to a more mainstream profile. The growth of those facilities now producing EVs could attract other tech companies. It’s not hard to imagine new “Silicon Valleys” spreading throughout the south.
Time For A Gut Check
I’m finding that many VCs are looking in new directions for investments today. Generative AI, for example, has become the “shiny new object.” The appeal of supporting companies that promote advances in learning the natural features of a dataset is clear. But it’s also time for a true gut check.
The investment community should focus not only on moonshots but also on solving shorter-term, real-world problems. It seems to me that many have lost sight of the range of the good technology is capable of showing us. For example, picture someone who is hearing impaired being able to access information in visual formats that open up new areas of work and play. From my perspective, focusing on small questions such as, “What’s the right ad load for a streaming series?” can detract from the bigger dreams needed to nurture ventures that lead to breakthroughs.
The investment community can encourage all parties—from hardware and software makers to media and communications platforms—to embrace a new era of collaboration. Interoperability is the key. I believe walled gardens have prevented consumers’ devices from offering more immersive environments. As a result, consumer tech’s ability to deliver real, practical improvements to people’s lives remains limited.
It’s not an insurmountable problem. It takes the collective will of the entire tech and media ecosystem, starting with the venture capital community. Perhaps VCs could play a bigger role in industry consortiums that are developing standards and new business models. I also think VCs can help facilitate more industry-specific approaches to solutions. In other words, as opposed to crafting connections among device makers, content owners, etc., they could help bring the telecommunications industry, consumer packaged goods industry or real estate industry, for example, together for a half-day confab that allows portfolio companies to hear about industry-specific challenges and opportunities.
Without a more robust focus on advancing emerging tech, we could all remain stranded and will be waiting for the next unicorn that fails to take off—or the next flight.
Greg Kahn
Emerging Tech Exchange
Founder & CEO
