Chinese financial firm JD Group has put its Hong Kong insurance business, FTLife Insurance Co Ltd, up for sale and a deal could fetch between $2 billion and $2.5 billion, three people with knowledge of the matter said.
I have seen the future — in fact, I have worn it. It’s big and awkward kind of digs into the top of your head with little metal bars designed to hold it in place.
I was like 95 percent sure Wear Space was some viral bit of social commentary the first time it popped up online. And yet, here I am at a TechCrunch event in Tokyo and the horse blinder-style wearable was right there for all the world to see and try on. So try it on, I did.
The device is still very much in prototype mode, so the uncomfortable bit is something that will likely be resolved before the device starts shipping. The awkwardness of actually wearing the thing, on the other hand, is the sort of thing that takes time to dissipate.
The product is light weight — a good quality for something designed to be work on the head for hours at a time. It’s really just a wireframe with a cloth covering that blots out your peripheral vision, while still giving you plenty to look at in front of you. It somehow felt dystopian and weirdly comforting all at once. At very least, I feel like I have a new-found respect for horses.
Inside are a pair of on-ear headphones. They’re not noise canceling, so they won’t block out everything, but maybe having read on ambient noise is a net positive on something like this.
I will say this: having seen the bizarre things people will put on their heads for the 14 hour plane ride it took to get to Japan, nothing about the Wear Space feels out of the realm of possibility. I mean, if this can be a thing, why not, right?
Keep in mind, too, that we’ve done this to ourselves. Open offices were going to the be the great workplace revolution of the early 21st century, and all we got were these strange horse blinders for people.
This quick chicken noodle soup using rotisserie chicken is a winner if you’re cooking a family dinner. Kids love soup! You can make it quickly, freeze it, and even add a soft-boiled egg to take it up a notch.
Here’s something I didn’t expect to read today. The U.S. Justice Department and Securities and Exchange Commission has subpoenaed Snap for details on its IPO apparently in connection with a lawsuit from disgruntled shareholders who claim the company played down its rivalry with Instagram.
Reuters first reported on the subpoenas which Snap has confirmed. Precise details aren’t clear at this point but Snap told Reuters that the probe is likely “related to the previously disclosed allegations asserted in the class action about our IPO disclosures.”
Snap went public last March with sharing popping over 40 percent on its debut to give it a valuation of $30 billion. It’s market cap today is a more modest $8.9 billion due to numerous factors including, most prominently, the efforts of rival Facebook to compete with Instagram, which has rolled out a series of features that mimic Snap’s core user experience.
That cloning has taken its toll on Snap’s business.
Today, Instagram’s Stories — the feature that closely resembles Snap’s app — has some 400 million users, that’s more than double the users of Snap. But it is far-fetched to claim that Snap played down that threat when it went public, which is what the class action case claims.
The writing had been on the wall for some time as Snap noted in its S-1 filing ahead of the IPO:
We face significant competition in almost every aspect of our business both domestically and internationally. This includes larger, more established companies such as Apple, Facebook (including Instagram and WhatsApp), Google (including YouTube), Twitter, Kakao, LINE, Naver (including Snow), and Tencent, which provide their users with a variety of products, services, content, and online advertising offerings, and smaller companies that offer products and services that may compete with specific Snapchat features. For example, Instagram, a subsidiary of Facebook, recently introduced a “stories” feature that largely mimics our Stories feature and may be directly competitive. We may also lose users to small companies that offer products and services that compete with specific Snapchat features because of the low cost for our users to switch to a different product or service. Moreover, in emerging international markets, where mobile devices often lack large storage capabilities, we may compete with other applications for the limited space available on a user’s mobile device. We also face competition from traditional and online media businesses for advertising budgets. We compete broadly with the social media offerings of Apple, Facebook, Google, and Twitter, and with other, largely regional, social media platforms that have strong positions in particular countries.
But even if an investor something didn’t read that document or reports of it (not advised) there was ample press coverage of the growth of Instagram Stories, and Facebook’s general Snap cloning efforts, since its launch in August 2016.
In particular, TechCrunch covered the rivalry and cloning closely ahead of Snap’s IPO with reports that showed Instagram was “stealing” Snap users, that it was responsible for slowing user growth and more.
In short, it was fairly clear that Instagram was cloning Snap, which in turn was a key factor for Snap’s growth struggles.
Don’t get me wrong there’s certainly a lot to worry about over at Snap — those poor user numbers, a string of executive exits and a strange u-turn on a recent hire — but this lawsuit looks to be little more than sour grapes from investors who either didn’t fully understand the space they invested in, or simply made a poor decision to back Snap at whatever price they did.
On that note: anyone who invested at Snap’s peak valuation might have lost more money than betting on Bitcoin during this year’s January hype — that’s saying something — but ultimately they have no-one to blame but themselves.
New York City and Arlington, Virginia have reportedly won Amazon’s lengthy and highly-publicized pageant for the locations of its new headquarters, beating out 238 other contestants. According to the Wall Street Journal, which broke the news, an official announcement may come as early as Tuesday.
The offices will be located in Long Island City, across the East River from Manhattan, and Crystal City, a neighborhood in Arlington, which is a 15-20 minute drive from Washington D.C.
Last week, more than a year after the Seattle-based company began asking cities to submit proposals for its second headquarters, nicknamed HQ2, reports emerged that Amazon planned to open two new locations, instead of just one, catching candidates off guard. WSJ reported that the Amazon decided to split a total of 50,000 employees between two new offices because the company believes it can recruit better candidates that way, while also avoiding the traffic, housing, and other potential infrastructure headaches of adding tens of thousands of new employees to one area.
Nonetheless, when it became clear that New York City and Arlington, Virginia were among the top contenders, residents of both areas began to worry about Amazon’s impact on housing costs and commutes, with New Yorkers wondering if the beleaguered New York City subway can handle 25,000 potential new riders. Long Island City community groups have also called on Amazon to pay a “gentrification tax” to help keep local residents from being priced out of their neighborhood by its employees.
As for the other cities that were potential contenders (the 20 finalists included Indianapolis, Denver, Dallas, and Nashville), Steve Case, co-founder of AOL, said on Twitter that he believed the work they put into Amazon’s competitive bidding process can be repurposed to build new startup ecosystems.
— Steve Case (@SteveCase) November 13, 2018
TechCrunch has contacted Amazon for comment.
Ryan Smith of Qualtrics speaks onstage during TechCrunch Disrupt SF 2015
Enterprise software giant SAP announced today that it has agreed to acquire Qualtrics for $8 billion in cash, just before the survey and research software company was set to go public. The deal is expected to be completed in the first half of 2019. Qualtrics last round of venture capital funding in 2016 raised $180 million at a $2.5 billion valuation.
This is the second-largest ever acquisition of a SaaS company, after Oracle’s purchase of Netsuite for $9.3 billion in 2016.
In a conference call, SAP CEO Bill McDermott said Qualtrics’ IPO was already oversubscribed and that the two companies began discussions a few months ago. SAP claims its software touches 77 percent of the world’s transaction revenue, while Qualtrics’ products include survey software that enables its 9,000 enterprise users to gauge things like customer sentiment and employee engagement.
McDermott compared the potential impact of combining SAP’s operational data with Qualtrics’ customer and user data to Facebook’s acquisition of Instagram. “The legacy players who carried their ‘90s technology into the 21st century just got clobbered. We have made existing participants in the market extinct,” he said. (SAP’s competitors include Oracle, Salesforce.com, Microsoft, and IBM.)
SAP, whose global headquarters is in Walldorf, Germany, said it has secured financing of €7 billion (about $7.93 billion) to cover acquisition-related costs and the purchase price, which will include unvested employee bonuses and cash on the balance sheet at close.
Ryan Smith, who co-founded Qualtrics in 2002, will continue to serve as its CEO. After the acquisition is finalized, the company will become part of SAP’s Cloud Business Group, but retain its dual headquarters in Provo, Utah and Seattle, as well as its own branding and personnel.
According to Crunchbase, the company raised a total of $400 million in VC funding from investors including Accel, Sequoia, and Insight Ventures. It had intended to sell 20.5 million shares in its debut for $18 to $21, which could have potentially grossed up to about $495 million. This would have put its valuation between $3.9 billion to $4.5 billion, according to CrunchBase’s Alex Wilhelm.
This year, Qualtrics’ revenue grew 8.5 percent from $97.1 million in the second-quarter to $105.4 million in the third-quarter, according to its IPO filing. It reported third-quarter GAAP net income of $4.9 million. That represented an increase from the $975,000 it reported in the previous quarter, as well as its net profit in the same period a year ago of $4.7 million. Qualtrics grew its operating cash flow to $52.5 million in the first nine months of 2018, compared to $36.1 million during the same period in 2017.
In today’s announcement, Qualtrics said it expects its full-year 2018 revenue to exceed $400 million and forecasts a forward growth rate of more than 40 percent, not counting the potential synergies of its acquisition by SAP.
Qualtrics’ main competitors include SurveyMonkey, which went public in September.
Chinese e-commerce giant Alibaba Group Holding Ltd settled roughly 69 billion yuan ($9.92 billion) in the first hour of its annual Singles’ Day on Sunday, up roughly 21 percent from last year’s early haul of 57 billion yuan. Singles’ Day is the world’s biggest online sales event and last year netted Alibaba 168 billion yuan ($24.15 billion) in total sales.
We knew the Xbox One was set to get keyboard and mouse support eventually, but now we know exactly when: November 14th.
Don’t expect all Xbox One games to play friendly with the new keyboard/mouse functionality right out of the gate. It’s up to individual developers to figure out if/how it works with their games and patch things up accordingly, so only a handful will support it at first.
But one of the first titles picking up support is a big one: Fortnite, the free-to-play third person shooter that has taken over the world, will roll out support with an update later this week. As will Warframe, the free-to-play coop shooter.
Bomber Crew, Strange Brigade, Warhammer: Vermintide 2, War Thunder, X-Morph: Defense, and Deep Rock Galactic will get support later in November, while Children of Morta, Vigor, Warface, Wargroove, DayZ, Minion Masters, and Moonlighter have pledged to add support at some less specific point down the road.
Eight months after bringing in a $40 million Series D, Moogsoft‘s co-founder and chief executive officer Phil Tee confirmed to TechCrunch that the IT incident management startup had shed 18 percent of its workforce, or just over 30 employees.
The layoffs took place at the end of October; shortly after, Moogsoft announced two executive hires. Among the additions was Amer Deeba, who recently resigned from Qualys after the U.S. Securities and Exchange Commission charged him with insider trading.
Founded in 2012, San Francisco-based Moogsoft provides artificial intelligence for IT operations (AIOps) to help teams work more efficiently and avoid outages. The startup has raised $90 million in equity funding to date, garnering a $220 million valuation with its latest round, according to PitchBook. It’s backed by Goldman Sachs, Wing Venture Capital, Redpoint Ventures, Dell’s corporate venture capital arm, Singtel Innov8, Northgate Capital and others. Wing VC founder and long-time Accel managing partner Peter Wagner and Redpoint partner John Walecka are among the investors currently sitting on Moogsoft’s board of directors.
Tee, the founder of two public companies (Micromuse and Riversoft) admitted the layoffs affected several teams across the company. The cuts, however, are not a sign of a struggling business, he said, but rather a right of passage for a startup seeking venture scale.
“We are a classic VC-backed startup that has sort of grown up,” Tee told TechCrunch earlier today. “In pretty much every successful company, there is a point in time where there’s an adjustment in strategy … Unfortunately, when you do that, it becomes a question of do we have the right people?”
Moogsoft doubled revenue last year and added 50 Fortune 200 companies as customers, according to a statement announcing its latest capital infusion. Tee said he’s “extremely chipper” about the road ahead and the company’s recent C-suite hires.
Moogsoft’s newest hires, CFO Raman Kapur (left) and COO Amer Deeba (right).
Moogsoft announced its latest executive hires on November 2, only one week after completing the round of layoffs, a common strategy for companies looking to cast a shadow on less-than-stellar news, like major staff cuts. Those hires include former Splunk vice president of finance Raman Kapur as Moogsoft’s first-ever chief financial officer and Amer Deeba, a long-time Qualys executive, as its chief operating officer.
Deeba spent the last 17 years at Qualys, a publicly traded provider of cloud-based security and compliance solutions. In August, he resigned amid allegations of insider trading. The SEC announced its charges against Deeba on August 30, claiming he had notified his two brothers of Qualys’ missed revenue targets before the company publicly announced its financial results in the spring of 2015.
“Deeba informed his two brothers about the miss and contacted his brothers’ brokerage firm to coordinate the sale of all of his brothers’ Qualys stock,” the SEC wrote in a statement. “When Qualys publicly announced its financial results, it reported that it had missed its previously-announced first-quarter revenue guidance and that it was revising its full-year 2015 revenue guidance downward. On the same day, Deeba sent a message to one of his brothers saying, ‘We announced the bad news today.’ The next day, Qualys’s stock price dropped 25%. Although Deeba made no profits from his conduct, Deeba’s brothers collectively avoided losses of $581,170 by selling their Qualys stock.”
Under the terms of Deeba’s settlement, he is ineligible to serve as an officer or director of any SEC-reporting company for two years and has been ordered to pay a $581,170 penalty.
Tee, for his part, said there was never any admission of guilt from Deeba and that he’s already had a positive impact on Moogsoft.
“[Deeba] is a tremendously impressive individual and he has the full confidence of myself and the board,” Tee said.
The company is best known for developing quality Android phones at affordable prices and already it has launched devices in Spain, Italy and France. Now, that foray has touched the UK where Xiaomi launched its Mi 8 Pro device at an event yesterday and revealed that it will open a store at the Westfield mall in London on November 18.
That outlet will become Xiaomi’s first authorized Mi Store. Styled on Apple’s iconic stores, the Mi store will showcase a range of products, not all of which are available in the UK.
Still, Xiaomi has shown a taste of what it plans to offer in the UK by introducing a number of products alongside the Mi 8 Pro this week. Those include its budget tier Redmi 6A phone and, in its accessories range, the Xiaomi Band 3 fitness device and the £399 Mi Electric Scooter. The company said there are more to come.
That product selection will be available via Xiaomi’s own Mi.com store and a range of other outlets, including Amazon, Carphone Warehouse and Three, which will have exclusive distribution of Xiaomi’s smartphones among UK telecom operators.
It’s official, Xiaomi has finally arrived in the UK! We brought our flagship #Mi8Pro which had its global debut outside Greater China. Other products announced include Xiaomi Band 3, our wildly popular fitness band, as well as Mi Electric Scooter. pic.twitter.com/YlOBysFBgM
— Wang Xiang (@XiangW_) November 8, 2018
Xiaomi hasn’t branched out into the U.S. — it does sell a number of accessories — but the European launches mark a new phase of its international expansion to take it beyond Asia. While Xiaomi does claim to be present in “more than 70 countries and regions around the world,” it has recorded most of its success in China, India and pockets of Asia.
Still, even with its focus somewhat limited, Xiaomi claims it has shipped a record 100 million devices in 2018 to date. The firm also posted a $2.1 billion profit in its first quarter as a public company following its Hong Kong IPO. However, the IPO underwhelmed with Xiaomi going public at $50 billion, half of its reported target, while its shares have been valued at below their IPO price since the middle of September.
The doctored video of the interaction between CNN’s Jim Acosta and a White House intern, which was posted by the Trump administration and originated from Infowars, hardly pleased many of us, including Jimmy Kimmel.
“She should be forced to resign for that,” Kimmel said on Thursday. “She intentionally disseminated doctored video footage to discredit a reputable journalist … Sarah Huckabee Sanders should be fired and sent to live in a JOANN’s Fabrics store.”
Also in the line of fire was Kellyanne Conway, who also took the side of the intern. It’s “so ridiculous,” in fact, that Kimmel decided to take his qualms straight to Conway herself. Read more…
These Crispy Air Fryer Chickpeas are made for last-minute holiday guest appearances. They’re quick to make and are best served as soon as they’re made. Season them up however you like and in ten minutes you’ll have a crunchy, savory snack ready to go.
Anniversaries are considered as one of the most special occasions in the life of a couple. And if you are planning to celebrate the day when your mom and dad tied the knot, then you must be quite excited. They definitely deserve some fancy celebration on achieving such a big milestone in their life.
If your parents are a social couple, then it is important to include all their favorite people in their anniversary celebration to make it unforgettable for them. If you don’t have a plan yet, here’s what to do for your parents’ anniversary.
Imagine all your family members having fun at a pool party while enjoying exotic cocktails and scrumptious cuisines. Yes, just the thought of it sounds so exciting!
It’s best if you have a farmhouse of your own away from the hustle and bustle of the city. If not, then you can always rent one for your parent’s anniversary celebration.
Let all your dear ones witness the most important day of your parents’ lives. Your parents will be thrilled with the idea of a pool party. They will surely have a great time with all their favorite people at one place.
We all agree with Julia Child that a party without cake is just a meeting.
So, add some fun and flavor to your parents’ anniversary celebration with a lip-smacking cake of their favorite flavor. You can order a heart-shaped special cake for a wedding anniversary. You can also get a photo cake with a memorable picture of your parents’ wedding day.
Just the sight of the cake will make them smile. They will surely enjoy every bite along with the rest of the family.
Your parent’s marriage must be full of happy moments and wonderful memories. Turn them into a video they can watch on their anniversary.
If your parents are quite sporty and love to play fun games, then you should plan something that will get them moving for their anniversary celebration. You can plan a treasure hunt in your basement or backyard.
Everyone will surely have fun while hunting for treasures. It will give them an opportunity to work as a team, too.
Consider redesigning your parents’ old wedding attire. Remember, you don’t really have to make these trendy and up to date. You can just repair any tears and wash away any stains. Surely, your parents will be in tears after seeing that what they wore on their wedding day are now good as new. Everyone at the party will have their eyes fixed on how thrilled your parents are. Not to mention, on the remarkable restoration of their wedding attire.
The post 5 Unique Ways To Celebrate Your Parents’ Anniversary appeared first on Dumb Little Man.
Eddie Redmayne is truly a wizard, both onscreen and IRL.
Chatting to Jimmy Fallon on Wednesday about the new Fantastic Beasts film, The Crimes of Grindlewald, the subject naturally moved to magic.
The star, who plays protagonist Newt Scamander in the Harry Potter spinoff series, said he used to have magicians at his birthday parties as a kid, and has learned a few tricks since — one of which he performed on The Tonight Show.
Notably, Redmayne says he wore a rollneck sweater specifically for the show, “because I feel like only magicians can pull off rollnecks.” Read more…
Australia will offer Pacific countries up to A$3 billion ($2.18 billion) in grants and cheap loans to build infrastructure, Prime Minister Scott Morrison said on Thursday, as Canberra seeks to counter China’s rising influence in the region. Australia and China have been vying for influence in sparsely populated Pacific island countries that control vast swathes of resource-rich oceans.
Planning to get in early on the Portal phenomenon? Facebook announced today that it’s starting to ship the video chat device. The company’s first true piece of devoted hardware comes in two configurations: the Echo Show-like Portal and the larger Portal+ . Which run $199 and $349, respectively. There’s also a two-fer $298 bundle on the smaller unit.
The device raised some privacy red flags since it was announced early last month. The company attempted to nip some of the those issues in the bud ahead of launch — after all, 2018 hasn’t been a great year for Facebook privacy. The site also hasn’t done itself any favors by offering some murky comments around data tracking and ad targeting in subsequent weeks.
In the post, Facebook also promises to treat conversations on Portal the way it does all Messenger experience. That means while it won’t view the calls, it does indeed track data usage, which it may later use to serve up cross platform ads.
“When you make a Portal video call, we process the same device usage information as other Messenger-enabled devices,” Facebook writes. “This can include volume level, number of bytes received, and frame resolution — it can also include the frequency and length of your calls. Some of this information may be used for advertising purposes. For example, we may use the fact that you make lots of video calls to inform some of the ads you see. This information does not include the contents of your Portal video calls.”
In other words, it’s not collecting personally identifying data, but it tracking information. And honestly, if you have a Facebook account, you’ve already signed up for that. The question is whether you’re comfortable introducing an extra level and bringing it into your living room or kitchen.
Spice up your holiday table with these Honey Chipotle Brussels Sprouts. They’re roasted in the oven, then tossed with honey-chipotle sauce in the last few minutes of cooking for a spicy spin on a classic.
The 115 accounts Facebook took down yesterday for inauthentic behavior ahead of the mid-term elections may indeed have been linked to the Russia-based Internet Research Agency, according to a new statement from the company. It says that a site claiming association with the IRA today posted a list of Instagram accounts it had made which included many Facebook had taken down yesterday, and it also has since removed the rest. The IRA was previously llabeled as responsible for using Facebook to interfere with US politics and the 2016 Presidential election.
Facebook’s head of cyber security policy Nathaniel Gleicher issued this statement to TechCrunch:
“Last night, following a tip off from law enforcement, we blocked over 100 Facebook and Instagram accounts due to concerns that they were linked to the Russia-based Internet Research Agency (IRA) and engaged in coordinated inauthentic behavior, which is banned from our services. This evening a website claiming to be associated with the IRA published a list of Instagram accounts they claim to have created. We had already blocked most of these accounts yesterday, and have now blocked the rest. This is a timely reminder that these bad actors won’t give up — and why it’s so important we work with the US government and other technology companies to stay ahead.”
Yesterday, Facebook had published that it would provide an update on whether the removed accounts were connected to Russia, as some were in Russian languages:
“On Sunday evening, US law enforcement contacted us about online activity that they recently discovered and which they believe may be linked to foreign entities . . . Almost all the Facebook Pages associated with these accounts appear to be in the French or Russian languages, while the Instagram accounts seem to have mostly been in English — some were focused on celebrities, others political debate . . . Typically, we would be further along with our analysis before announcing anything publicly. But given that we are only one day away from important elections in the US, we wanted to let people know about the action we’ve taken and the facts as we know them today. Once we know more — including whether these accounts are linked to the Russia-based Internet Research Agency or other foreign entities — we will update this post.”
Attribution of foreign interference into politics via social media can be difficult to accurately attribute, however. Facebook could have provided stronger wording in this update regarding its own evidence about the connection between Russia and the 80 Facebook accounts and 35 Instagram accounts it removed yesterday. Now with the mid-term results being counted, we’ll see if politicians or researchers suggest election interference could have influenced any of the results.
The airline’s latest edition is dubbed “It’s Kiwi,” a remake of Run-DMC’s classic track “It’s Tricky” featuring Deadpool 2 actor Julian Dennison, local musicians, as well as talent from 30 community groups.
It’s the 18th safety video the airline has ever produced, and aims to celebrate Kiwi culture and the country’s diversity. Read more…
Nikola Motor has started taking reservations for Tre, the startup’s first hydrogen-electric truck built for the European market.
Nikola Motor, which less than a year ago announced plans to build a $1 billion hydrogen-electric semi truck factory in a suburb of Phoenix, said it’s in the preliminary planning stages to identify the proper location for its European manufacturing facility.
European testing is projected to begin in Norway around 2020, the company said.
The Tre — it means three in Norwegian — is still years away from production. CEO Trevor Milton said production will begin around the same time as its U.S. version between 2022 and 2023.
But it illustrates Nikola’s global aspirations.
The U.S. and Europe have different trucking regulations. Nikola had to design a different model to meet those regulations before it consider trying to break into Europe.
The Tre will be built with redundant braking, redundant steering, redundant 800V dc batteries and a redundant 120 kW hydrogen fuel cell, all necessary for true level 5 autonomy, Milton said in a statement. Level 5 is the highest level autonomy, a designation in which the vehicle handles all driving under all conditions.
The Nikola TRE will come will come in 500 to 1,000 horsepower versions. The truck will be able to travel 500 to 1,200 kilometers, depending on options a customer chooses.
Nikola plans to have more than 700 hydrogen fueling stations across the U.S. and Canada by 2028. The company said Monday it’s working Nel Hydrogen of Oslo to provide hydrogen stations for the U.S. market.
Nel will be used to secure resources for Nikola’s European growth strategy, according to Nikola CFO Kim Brady.
By 2028, Nikola plans to have a network of more than 700 hydrogen stations across the USA and Canada. Each station will be capable of 2,000 to 8,000 kgs of daily hydrogen production. Nikola’s European stations are planned to come online around 2022 and are projected to cover most of the European market by 2030.
The company will display a prototype display of the Nikola TRE during the Nikola World event April 16 and April 17 in Phoenix.
In our modern, fast-paced world, there is hardly any time to spare. Businesses need results and they need them quickly, encouraging the development of new technologies that can keep up. Yet 95% of companies still use RFPs when they need to get the job done – why is this outdated practice still treated like a business staple?
Smart businesses today understand the value of diversifying away from the risk of relying on single one-stop-shop vendors. If the massive change in Forbes Global 2000 companies that outsource IT projects to single vendors is any indication, this shift is a massive trend. In 2008, 42% of these businesses worked with a single vendor for their IT or application needs; in 2018 that number is just 15%.
And yet, for lack of a better method, many businesses find themselves at a loss for reaching new vendors. Whether their project scope is too wide for in-house work, or they just need some extra guidance from creative professionals, it’s easy to turn to Requests for Proposals to scout out the talent. But there’s a glaring problem with using RFPs to do this – the results very rarely elicit the most innovative solution. Companies that use RFPs may ignore innovative startups in favor of “established” vendors, rewarding longevity over skill and flexibility.
When we look at startup funding trends, we are met with stats of explosive growth. In 2017 alone, the global venture capital investments for startups hit over $140 billion, and in the years between 2015 and 2017, the total global startup economy value creation was $2.3 trillion. Any way you spin it, there is some serious firepower behind startups and for good reason. Unfortunately, these talents can go ignored and even outright rejected when forced to participate in requests for proposals.
As a result, RFPs are actually a roadblock to reaching effective new vendors, placing incumbent vendors ahead of other bidders. For new vendors participating in RFPs, they may only have a week to respond, yet incumbent vendors are notified several weeks beforehand. Even then, many startup level vendors find it challenging to work within the confines of typical RFP guidelines and are unable to let their talents show.
It’ll take more than a simple update to overhaul this antiquated process. Real solutions will come from a total mindset change, improved flexibility, and real ROI projection. The best way to try out a new vendor is by using Proof of Value, or PoV. This process ensures the best value projects are done for the right price and by the right people. Based on information measurement theory, Proof of Value considers the predictability of success or error using measurable, factual information. This replaces the RFP with scalable options using information and performance-based solutions as a new standard.
Accounting for lost time, wasted money, and piles of busy work, RFPs, or requests for proposals just don’t work anymore. A LexisNexis survey revealed nearly 17% of businesses deal with up to 10 RFPs per month, and 15% of businesses have a load of 21 or more. Organizations are relying more on RFPs, but it doesn’t necessarily benefit their firm. Smart businesses can use more nimble vendors and methods to outperform instead.
Though many organizations are still using RFPs for solutions, when has following the status quo ever done business any favors? Is your company still using RFPs? Take a look at this infographic for more on how RFPs hurt innovation, stunt professional growth, and ignore real talent, and what you can do to break this cycle by developing better solutions that fit with your business’ needs.
The post How To Modernize Your Business By Ditching The RFP appeared first on Dumb Little Man.