In 2030 … Meat the future

BY JOANNA PATSALIS
I bought organic, lab-made burgers from my neighborhood's grocery store. It was cheaper, had less fat and more nutrients than any other alternative. It even tasted better!

If you think about the agriculture industry, we’ve come a long way… Here’s a quick summary:

Up until the end of the 18th century, the vast majority of people were farmers. The 18th and 19th centuries accelerated an ongoing revolution in agriculture – use of animal and human labor as a source of power. Physics, chemistry, and biology became tools to that revolutionized agricultural systems. Later, the adoption of new power sources, such as steam, increased the use of chemicals. Today, improved plant and livestock breeding through genetic engineering promise to improved shelf life and are resistant to disease, stress resistance, herbicide, pests and insects.

The revolution won’t change how food is delivered but rather how the food is produced, prepared and processed for one simple reason. People care about what we eat. There are several trends confirming this.

Healthier eating habits: Brands are investing more in healthier food. Health and wellness is now used as a positioning for corporations. Hershey and General Mills are among the companies planning to continue expanding their portfolios to younger consumers (millennials and Gen Z) who want healthier options.

Meat: Bloomberg last summer reported that plant-based meat alternatives totaled $670 million in sales — a 24% jump from last year.

Sustainability: shoppers have been willing to pay more to feel like they are helping the environment. As sustainable business practices become the norm not the exception across the food industry, sustainability is used to as competitive advantage and increase profits. Mars, PepsiCo, Coca-Cola, Unilever and Walmart have all announced sustainability plans.

Earth’s resources are scarce and population is increasing, which could put the human species in danger. Luckily, scientists have found another (out-of the box) solution to keep feeding us. A new production method for live-stock: the Lab! You no longer need the land for the animals to live, nor the machines to process their meat.. You don’t even need the animal.

Production of cell-cultured meat involves retrieving a live animal’s muscle stem cells from the tissue and setting them in a nutrient-rich liquid, multiply them dramatically and allow them to differentiate into primitive fibers that then bulk up to form muscle tissue.

“One tissue sample from a cow can yield enough muscle tissue to make 80,000 quarter-pounders.”

Mosa Meat

The lab-grown meat has caught attention in 2013 but was too expensive to commercialize. As the technology improves and the competition increases we are now at a point where FDA is beginning to think how to regulate. Key players include Mosa Meat, Memphis Meats, SuperMeat and Finless Foods who have already raised millions in funding. In 2017, for instance, Memphis Meats took in $17 million.

  • doesn’t involve livestock – and thus avoid slaughter and save endangered animals
  • could potentially be healthier – contain more protein and polyunsaturated fatty acids than traditional meat, eliminate saturated fat, potentially reducing the risk of chronic diseases. Minimizing animal-borne diseases. No need for growth hormones/pesticides/fungicides/aflatoxins/melamine,  used in the traditional meat industry
  • consume fewer natural resources- no environmental impacts and ethical issues
  • could be cheaper and more accessible – could increase access to meat in developing countries
  • sustainability – Researchers comparing the production of cultured and conventional meat found that producing 1,000 kilograms of cultured meat involves approximately 7%-45% lower energy use, 78%-96% lower greenhouse gas emissions, 99% lower land use and 82%- 96% lower water use

But will it sell?

The livestock sector is the fastest growing sub-sector of agriculture and employs 1.3 billion people. Many farmers have been vocal about their concerns on potential unemployment and push for strong regulations. Moreover, vegans and certain religious groups, feel any exploitation of animals is still unacceptable. On the other hand, Environmental groups, animal welfare advocates and some health-conscious consumers will most likely be the biggest fans.

Based on Food Literacy and Engagement Poll recent survey the results vary. 48% of people said they’d be unlikely to buy this product. People with higher income are more likely to switch from being undecided about cultured meat to being willing to try. As far as age, younger people are 5 times more likely to purchase cultured meat products. Attitudes related to this innovation will depend on how it gets labeled and how the person is influenced by values and experiences.

Currently we consume food without being 100% sure how livestock was treated and processed. We trust labels claiming ‘organic’ but the term is so vague. I see no reason not trusting science. Lab-cultivated food will at least give you peace of mind in terms of how it was produced and its neutrinos. If it tastes good, I would definitely try it! Would you?

In 2025… No more Apple

by Joanna Patsalis
Today I bought a new phone for $60 at my local supermarket and installed the most updated crowdsourcing interface. I will customize it to my own unique preferences. 

During one January intensive course, the class talked about how the Beijing-based electronics company Xiaomi grew so fast, so soon. In just eight years, Xiaomi went from a team of eight engineers to a publicly traded company with an implied valuation of $54 billion that could rival Apple. With Apple predicting lower revenue generation this year, eyes are on Xiaomi, whose differentiated product strategy and vision about global consumerism may prove to be more enduring.  

Many refer to Xiaomi as China’s Apple. While true that Xiaomi learned a lot from Apple in terms of strategy, the company has developed its own path to success. In 2010, Xiaomi entered the Chinese market selling almost all of its phones online at a low profit margin— saving on rent and sales commission costs. Only after when competitors Huawei and Oppo entered the market with a low-price strategy did the company open actual stores. 

The company started out in software, with a modified version of the Android mobile operating system that looked a lot like Apple’s iOS in design. There were further similarities: from the style of product launches to that of Xiaomi CEO Lei Jun, who donned a black top so culturally associated with Steve Jobs. More significantly, Xiaomi built on Apple’s success factors, including developing an ecosystem that kept users from easily switching to competitors.

Unlike domestic peers who were turning down higher-priced devices to compete directly with Apple’s smartphones, Xiaomi decided to take advantage of China’s economic conditions to offer high quality smartphones at a much lower price point. Their reliance on technology, management and logistics would keep the cost low.

Become “an innovation-driven internet company” rather than a hardware company.

– Lei Jun, Xiaomi founder

If Xiaomi started on a path laid by Apple, the company is now in control of its own destiny. Xiaomi is no longer a smartphone company. In fact, it is generally considered an appliance company with a wide variety of internet-connected products as well as internet services. Xiaomi’s ecosystem goes beyond a few hero products, managing 90 companies that create additional smart hardware and lifestyle technology. Together, there are over 100 million connected devices, making Xiaomi the largest IoT platform in the world.

The company was able to acquire and expand this knowledge by investing in or incubating over 200 tech start-ups. As a minority shareholder, Xiaomi gained critical access to new tech innovations and in turn, lent its supply chain and commercialization expertise to start-ups. This corporate strategy allowed Xiaomi to build a portfolio of some 5,700 patents.

Lei Jun, CEO
Photo Credit: Fortune

The company’s Mi phone user interface (called MIUI), the Android-based operating system that runs on Xiaomi smartphones, now has 300 million activated users who spend many hours a day on their phones. Crowdsourcing is another part of Xiaomi’s strategy; weekly, the company asks users to suggest new features and then vote to incorporate the winners into its operating system. Every Friday at 5pm, Xiaomi issues an update to the MIUI that includes the most popular features.

Future revenue growth will depend much more on online services—from payments to streaming to gaming—rather than just gadgets.  While there is some doubt whether Xiaomi will continue to growth at this rate, the strategy is very interesting to look at. 

One can argue that Xiaomi is going after a different type of smartphone customer compared to that of Apple; a user that is looking for good quality smartphone at an affordable price. This user may be more tech savvy and enjoys connectivity with multiple smart-products. Comparatively, Apple’s customer is willing to pay more for a perceived product quality, values security and is satisfied with minor upgrades on a user-friendly interface. With an average American household owning more than two Apple products, according to CNBC’s All-America Economic Survey, Xiaomi is more than aware of the difficulty in entering the US market. For now, the company is learning from its recent endeavors in India, UK and Spain. 

In more recent news, Apple’s market value collapsed by 30 percent since November, a sign that the iPhone business might be declining. Unfortunately, as consumers, we haven’t experienced significant innovation in the new iPhone X nor in any other Apple product. If this continues to be the case, people will experiment with new wearables and lifestyle products even if it’s outside Apple’s ecosystem. This can be the biggest opportunity for Xiaomi to enter the US market. Not by directly competing with Apple and Samsung in the smartphone industry, but by introducing other successful products first. Once the company builds its reputation in the US, it can then gain market share in the smartphone space. 

While Xiaomi’s US strategy is still not certain, the question of if Apple will be disrupted by a competitor still remains. Xiaomi already over-smarted Apple in China and has made a huge gain in wearables’ market share across the globe. As consumers need change and technology becomes essential to lifestyle, it will be interesting to see giants like Apple get defeated by startups who are willing to experiment.

Quick summary on what makes Xiaomi unique/successful:

  • Low-price phones
  • Different version of Android operating system
  • Crowdsourcing for phone’s updates
  • Range of ‘smart’ products
  • Investing in tech start-ups, access to innovation, fast to market
  • Pool of patents
  • Home stores to build loyalty and brand awareness
  • Rapid global expansion

In 2023 … Retail Shopping

by Joanna Patsalis
I went shopping with just my phone. When personalized, fast and seamless experience becomes a norm, not the exception.

Ever since Amazon bought Whole Foods to experiment with a seamless shopping experience, I can’t stop thinking of the possibilities of customer interaction with the store, the products, the check out and delivery. Amazon Go is now available in Chicago, Illinois, San Fransisco having a slow expansion compared to Hema, Alibaba’s new superstore.

AmazonGo commercial 

Amazon reported to open as many as 3,000 stores by 2021 but is now considering narrowing its focus even further to freshly prepared foods that would appeal to lunch-time crowds. While a more focused strategy of cashier-free stores might be wise, Chinese e-commerce giant Alibaba is reimagining the whole retail experience with 80 outlets in China by the end of this year.

By the time Amazon started testing AI-enabled stores, Alibaba had already been experimenting with the technology 2 years ago. This gives some validation to the hypothesis that Western world is following the steps of Asia technologies, and not vise versa like a few years ago. I will go deeper into this matter in a different post.

What innovations, other than no check-out can someone expect when visiting Hema?

  • Interactive, digital screens with product information.
  • Instead of paper tags, pricing is displayed on the digital screens
  • Self check-out kiosks use facial recognition to pull up a payment app leveraging Alipay technology.
  • You turn your head up and conveyor belts with bags select items for a 30 minute delivery.
  • Fresh produce can be prepared and delivered by robots in the in-store restaurant – no human interaction here either.
  • Personalization and recommendations through the app

Hema Supermarket tour

What should we expect next? Are stores going to become just showrooms and we are just going to walk around with our phones adding to our digital cart? Is Hema considering to expand to the rest of the world? Is human labor going to be excluded from the shopping experience once and for all? And finally, are stores going to disappear in the future? Why do we still spent the time to go shopping if we can find everything online and delivered in a few minutes?

In 2020 … VR tickets

by Joanna Patsalis
I bought VR 360 view tickets to Nicks game and invited my friends over to watch live. I booked "seats" in the front raw for 1/5 of the price! 
Sensorama, 1962

Virtual Reality (VR) is not a new invention, although it has been a buzz word the past couple of decades. Everything started back in 1962 when Morton Heilig developed the Sensorama, an arcade-style theatre cabinet that would stimulate all the senses, not just sight and sound (see here for VR history). Today when we picture VR as this headset that uses computer technology to places the user inside an experience and interact with 3D worlds. We have seen a huge increase of VR use in gaming, but that is not the only industry that will be revolutionized by the technology.

NBA Live, 2018

Medicine, surgery, design, education, military and space are just some areas where VR will become valuable. And although all these sound promising, a recent poll by the Consumer Technology Association found that consumers’ most popular suggestions for VR content were for concerts, sports and exercise. Yes, entertainment will be next! Last year, Live Nation teamed with Citi and NextVR to broadcast dozens of concerts in VR. Pro basketball is already broadcasting one game a week in VR, and professional hockey, racing, and baseball leagues will follow.

But does this mean no more Beyonce concerts? No more football matches?No… VR will not be a replacement of the typical entertainment tickets. It’s an alternative, not a substitute. Same happened with the rise E-commerce shopping – yet, retail stores are not closing down! “It will open the experience to people all over the world who might not have the chance to physically get to the venue. A win-win for the artist and fan.” Wilson Standish, director of innovation for media agency Hearts & Science.

NextVR is the leader in delivering sports, music and entertainment experiences in VR through world-class partnerships with industry leaders including the NBA, WWE, FOX Sports, Live Nation, International Champions Cup and Gotham Comedy. It will be interesting to see how competition will play in the next few years. Will the industry leader invest in more than just partnerships? Can they get a bigger piece of the pie with vertical integration? No one is stopping them from partnering with more than just NextVR (non-exclusivity). Will new companies enter the market for a cheaper/premium price? I believe so!

We’ve see Facebook (Oculus), Google, Microsoft and many many more are investing billions of dollars in both software and hardware (top 20 VR companies). Even though not all of them compete in the same areas I am sure they have big plans for direct to consumer market.

Another interesting area I want to touch is hardware. There is a variety of options when it comes to the headsets/devices – cheap ($79 Google) and expensive ($799 HTC Vive). Incremental innovation will make VR devices cheaper, accurate, and realistic. Reminds me of the TV and mobile evolution. Will there be limited number of software options compatible with various hardware? To throw some ideas:

  • We will see VR private label in airplanes, where the flight attendant gives you a headset instead of headphones
  • Freemium business model – offering simple and basic services for free for the user to try and more advanced or additional features at a premium
  • Razor and blades business model – where the headset can be given for free and complementary services are sold (pay-per-view)

That’s all for now… Any ideas how VR will play out in the future? Let me know!

Let the games begin.




Welcome to 20xx …

Take a futuristic journey with me!

Ever imagine what the world would be like in a few years from now?

I am a tech enthusiast. 
I am a creative thinker.

This blog was created to discuss how I imagine the world in the (near) future. I incorporate tech industry insights, professional discussions, books, start-ups and my own ideas to describe the areas I believe will be revolutionized by technology. As a MBA student at NYU specialized in Innovation and Tech management and as a working professional in New York, I believe the next couple of decades will be very interesting in terms of change.

  • Who are the key players in tech transformation?
  • Who will be the biggest losers?
  • Which industries will be disrupted first?
  • How should companies manage change?
  • Which countries will be the leaders in tech?

This is a discussion based blog and I would love to hear your thought on different tech subjects! Leave a comment or shoot me an email!

Enjoy!

Joanna Patsalis