Reported today on City AM For the full article visit:
The most successful company strategies over the last few years all have one thing in common – a data-driven operating platform. Companies such as Facebook, Amazon, Netflix and Google (the so-called FANG stocks) are able to create a significant informational advantage when they use data collected from their platforms. The quantity and quality of this information allows them to better understand the shopping habits of their customers like never before.Crucially, the more data they collect the better their insights. For instance, Amazon is in a position whereby it knows what we want to buy before we do. For the FANGs, more data means more value.Cities utilise human capital and innovationWe believe that the most successful global cities operate in exactly the same way as the FANGs. Modern economies are now driven by innovation rather than heavy industry and manufacturing. The most successful global cities are those that draw in the most talented workers and monetise ideas which drives economic growth.A global city that constantly evolves, grows and innovates could be an even more valuable platform than those owned by the FANGs.Cities are the most efficient way for humans to live and this efficiency creates wealthSimilar to tech companies, cities become more efficient as they become bigger. For most things, including organisations, the larger they become, the less efficient they become.Since the earliest days of the industrial revolution people have been moving to cities to seek employment and this process is accelerating as technological innovation creates new opportunities, which attracts more people and further investment into a city. More people living and working in a city results in more talent, more talent means more innovation, more innovation creates more jobs, whi
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