The last time you bought a car, did you suddenly notice other cars of the same type on the road?
We did. We noticed it last year when we upgraded our car.
Suddenly, there were Porsche’s everywhere. Only kidding. We upgraded to a Subaru Forester. But it was the same effect. We now see Forester’s everywhere.
And since we launched a technology investment advisory service six months ago, we now look at the whole market in a completely different way…
We no longer see companies as mining companies, healthcare companies or car companies.
Instead, we see them as different parts of one big technology industry.
Take cars. Mercedes-Benz has just released its new S-Class model. It’s just a car right? Albeit a super-luxury car. Well, it’s more than that. It’s actually one big piece of technology.
And like any other piece of technology, the pace of innovation doesn’t hang around for anyone. It’s unstoppable. As the Age reported on the Aussie S-Class launch:
‘Mercedes-Benz admits the rapid pace of technological advances has meant it can no longer afford to hold them [innovations] back for each generation of S-Class, which, due to its relatively low volumes and high development costs, generally only comes around each decade.‘
You know the story. Mercedes-Benz used to launch new tech in its luxury brands. This tech would then trickle down to the lower end models. Not anymore. Technology moves too fast for that.
Disruptive Technology
Due to the fast pace of technology, Mercedes-Benz has to change its entire business plan.
That’s what you call ‘disruptive technology’.
It simply means that innovations have a lasting and altering impact on industries. We’re not talking about the destruction of one industry (such as typewriters) to be replaced by another (computers).
Here we’re talking about small or large changes that push an industry down a certain path.
The evolution of mobile phones into smartphones is a good example.
Innovations in mobile technology, graphics, processors and electronics didn’t destroy the concept of mobile phones; they just nudged it into a different orbit.
Mobile phones are no longer just a device you use to call a friend or to keep in contact with business associates. The mobile phone has evolved into a personal data centre and tracking device.
Just by turning on your phone you create a beacon by which someone could (and probably does) track your movements – even in real time. When you send a text or interact on a social media website you leave packets of data on your device and online detailing where you’ve been, what you’re doing and where you’re going.
It’s no wonder tech savvy folks have found ways to conceal their tracks online. Technology analyst Sam Volkering explored this topic a few weeks ago in a video for Revolutionary Tech Investor subscribers. You can find out how to access Sam’s video here.
No Technology Without Mining
Of course, it’s not just the communications and the car industry that you can call tech industries.
What about mining?
It seems odd when you first think about it. For most people mining is the polar opposite of technology and innovation.
That’s until you start learning about the industry. You’ll find out that technology exists in the mining sector at almost every step of the process. It’s in exploration, production, the finishing, and the application of the product.
Think of rare earths or lithium. It’s not just the drilling technology needed to find these minerals and metals. It’s not just the high-tech machinery used to refine the product. It’s also the fact that without rare earths and lithium tablet computers and smart phones wouldn’t exist.
It’s true. There’s lithium in the computer or phone battery. And you’ll find rare earths behind every high-resolution display screen.
The most modern and advanced technology you use today doesn’t appear from thin air; it needs raw materials. And for the most part those raw materials come from deep beneath the ground.
This is another reason why we laugh when we hear people say the mining industry is finished. They say the world economy is now so sophisticated. That’s junk. The fact is if you want progress and further advances in technology, you need the mining industry.
They are inseparable. You can’t have one without the other.
Cheers,
Kris+
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