The Jarvish smart helmet IOT Insurtech from Taiwan is another First the Rest then the West story The Jarvish smart helmet IOT Insurtech from Taiwan is another First the Rest then the West story

The Jarvish smart helmet IOT Insurtech from Taiwan is another First the Rest then the West story

They are solving a Catch 22 for motorbike insurance by using smart helmets that can monitor your driving.

 

Jarvish is a Taiwanese company that is doing a lot more than making it easier to buy insurance. They are using hard technology innovation to reduce accidents and therefore reduce the cost of insurance, using smart helmets that can monitor your driving.

We are seeing the same thing in the West with sensors embedded into cars. Jarvish is doing this in the Rest of the World where a motorbike is the first automated transport that a family can afford. Rather than selling into a motorbike market in the West with tens of millions of hobby bikers (they also have a car but just love to bike for fun), Jarvish is selling to the hundreds of millions of bikers in the Rest who use motorbikes as their primary means of transport.

Rather than having to negotiate with car manufacturers, Jarvish simply make the helmet and sell it to consumers.

That is why Jarvish illustrates a megatrend we have been tracking for a while that we call “first the Rest then the West”.

In doing so they are solving a Catch 22 for motorbike insurance. If driving a motorbike is so dangerous then claims will be high so premiums will be high, so the poor people who rely on motorbikes as their primary means of transport cannot afford insurance.

First the Rest then the West

This is one of the big stories of our time. It is the end of what historians have called the Great Divergence, when the Western economies rose to dominance.

For most of the 20th century, technology was limited to the West. Countries in the Rest (formerly known as developing, then emerging, then rapid growth economies) were “tech deserts” until those economies started to open up (first China, then India, then Africa). Then technology adoption started to flow from the West to the Rest; the last decade has been a boom time for Western tech firms selling to the Rest.

Now the flow is reversing as technology adoption starts in the Rest and then goes to the West. For example, look at Xiaomi to see the future of mobile phones and Alibaba for the future of e-commerce or Paytm for the future of mobile wallets.

This megatrend is not limited to Fintech. Within Fintech, mobile payments and mobile e-commerce is the big disruption and that is happening first in the Rest and then will flow to the West.

Technology adoption starting in the Rest rather than the West is one of the big 21st century megatrends.

Note that I am referring to technology adoption. Where something is invented matters a lot less than where and how it is adopted, as Steve Jobs taught us after wandering around Xerox Parc and seeing the first graphical user interface and using that to create a PC with a much better UX. What really matter is innovative customers and customer innovation is driven by blue ocean markets with big unmet needs and lack of legacy technology constraining innovation.

If you need a smart helmet to keep your family safe, you have a big and so far unmet need. That is why we think Jarvish is a company to watch.

The Asia Inurtech story 

We have already tracked Insurtech innovation coming from India, Korea, Singapore, China. This is the first we have seen from Taiwan. Asia has all the ingredients to become the locus of Insurtech innovation:

  • Big blue ocean markets with lots of unmet needs
  • Lack of legacy technology constraining innovation
  • Hard core technology skills linked to manufacturing expertise (so they can build physical products and are not limited to digital innovation).

Technology innovation not just UX layer digital innovation

The idea of a smart helmet is not new, but like so many Taiwanese companies, Jarvish competes through technology innovation. This is not just another digital UX layer startup. Jarvish has invested years and lots of Ph.D level resources to create a smart helmet that does not require Bluetooth. Even more critical from a safety POV, the Jarvish helmet does not use lithium batteries (which can overheat and explode) and they use “military-grade ceramic anti-explosive batteries”. First do no harm – the helmet has to be safe.

The best way to think about the Jarvish smart helmet is like the black box system that crash investigators extract from commercial aircraft, except that this black box is tiny, cheap and cloud-connected.

Like Apple, this is innovation from technology to consumer marketing and Jarvish is not shy about making the comparison:

“Much like smart phones, at first they were only cool high-tech gadgets, but quickly became an essential part of everyone’s daily life. In the near future, smart safety helmets will definitely be as common as smart phones.”

Illustrating the “first the Rest then the West” megatrend,  the Jarvish roadmap includes products we can envisage also getting traction in the West:

“all types of smart headgear, with such applications such as smart helmets for skiing, diving, firefighting, cycling, drones, extreme sports, and entertainment. All of which will include smart functions and module designs, as well as all the incorporated software needed. We also provide a cloud platform, and international-level third-party value adding services to users.”

The Art of the Chef – combining ingredients

You don’t need to look too hard to see a revenue model. Jarvish sell helmets to consumers with their smart helmet technology embedded. This is simple but powerful.  It illustrates what I call the Art of the Chef business model in my book Mindshare to Marketshare. The chapter entitled Turn Secret Sauce Into Unfair Advantage describes how Fast Moving Consumer Goods (FMCG) companies grew to dominance by avoiding commoditization by combining commodity ingredients into a differentiated package. The book uses companies like Coca Cola selling sugared water at high prices or Gillette charging a premium for razor blades that cost very little to illustrate how to combine commodity ingredients into a product that is highly differentiated. The book then goes on to show how companies such as Apple and Visa used this in technology. Jarvish is on the same path.

I liken this art of combining to cooking. You have lots of components that go into a dish. You might even have a secret ingredient that defines it. Yet the whole is obviously more than the parts.

It gets more interesting when you move from FMCG to technology driven businesses:

”Consider the greatest entrepreneur the tech world has ever seen – Steve Jobs. 

Steve Jobs innovated by combining multiple commodity ingredients into a very tasty dish. He was a technology chef.

At one level he combined multiple commodity ingredients to create unique devices such as the iPod, iPhone and iPad. He combined lots of commodity components sourced from all over the world into a uniquely beautiful and useful product by adding a touch of design magic. However, if he had only created “insanely great devices”, Apple’s business would be more vulnerable to competitors like Samsung and Xiaomi. The reason that Apple is so valuable is that Steve Jobs combined great physical devices with digital services like iTunes and AppStore into a combination that still mints money long after he died. That is why Apple has massive amounts of Unfair Advantage (aka moat, aka competitive advantage). 

You  also see this art of combining in payment network such as Visa, Mastercard and Amex. Yes, these payment networks have software at the core. Yes, they own the hardware servers that the software runs on. Yet they don’t license that as a SAAS product to banks. They wrap it into other services to deliver transactions to consumers via Banks. That is how Visa, Mastercard and Amex turn their secret sauce into Unfair Advantage. 

What Coca Cola, Apple, Visa, Mastecard and Amex have in common is the art of the chef – to combine commodity ingredients into value.”

I see this same art of combining in Jarvish. At one level they combine their proprietary smart helmet technology with the commodity components and manufacturing process of making helmets to create their own differentiated helmet. They combine their own yeast with water, flour and salt to make bread. The next step, akin to Apple moving from iPods/iPhones devices to device hooked to iTunes is to create a digital product that reduces accidents and thus reduces insurance costs.

 

Shared from: Daily Fintech

Leave a comment

Make sure you enter all the required information, indicated by an asterisk (*). HTML code is not allowed.

back to top

iScope

How RBC is using a blockchain to overhaul its loyalty program

“We see loyalty as a great use case for blockchain to allow us to provide customers more real-time access to rewards points to provide an almost Starbucks-like experience.”

Why finance brands are so hot on content marketing

Content is one way to make people return to their site to see new updates, buy new products and invest more money.

Reddit now allows users to upload videos

Videos are coming to Reddit, thanks to a new feature that allows users to upload video clips directly to the service.

Sharp sues Hisense over a foreign “gag order”

Sharp, a Japanese electronics manufacturer, has filed a lawsuit challenging a foreign gag order that company lawyers say prevents Sharp from talking about its own brand.

How A Police Body Camera Company Is Becoming An Artificial Intelligence Company

Like most technology companies today, Axon’s goal is to collect data; the free body camera trial is just another avenue to generate and collect more of it.

Mic Lays Off Dozens Just a Week After Promising Not To

A number of online outlets, including Mashable, Vice, and MTV News, have recently slashed their writing staffs to focus on producing visual content

Kit Kat accused of copying Atari game

Kit Kat's maker Nestle has been accused of copying Breakout, the 1970s computer game, in a marketing campaign.

YouTube TV expands to 14 new markets

YouTube is broadening access to live TV streaming as younger viewers increasingly watch shows online and traditional broadcast networks grapple with aging demographics among viewers.

Hyundai looks to build a >300-mile-range electric car

More carmakers are looking toward electric vehicles as fuel cell falters

Why Bancor Wants To Become The YouTube Of Cryptocurrency

If Bancor overcomes the initial scandals (it shortchanges its users' by rounding token values) Bancor could reshape the cryptocurrency marketplace as we know it.

The best of Siri: 11 funny responses from the iPhone's virtual assistant

Since its launch in 2011, Siri has become increasingly intelligent, and can now hold basic two-way conversations with users.

How Yogscast built a media empire

The newer generation doesn’t want to be told how to do things, they want to see it.

Skype’s new look arrives on the desktop in preview form

The chat-focused update comes with new features for messaging and calls.

Twitter investor helps develop blockchain-based social media platform

The proposed Twitter version will have no central authority and the users will be able to monetize their contributions.

Bitcoin's biggest software wallet blockchain adds ethereum

It's the latest sign bitcoin businesses are now adapting their business models to support multiple blockchains.

Uber slapped with FTC audits for next 20 years due to privacy lapses

According to the latter, Uber didn’t do enough to protect the privacy of its riders or drivers.

Google Home can now make calls and it won’t cost you a dime

Say “Hey Google, call *contact name*” and you’ll be on your way

E-sports platform to launch $100 million cryptocurrency sale

Unikrn embraced cryptocurrency as a way to bypass banking institutions.

Alibaba beats on earnings as e-commerce remains core revenue driver

Alibaba's stock is up more than 81 percent this year

Nokia 8 smartphone takes 'bothie' videos

The device can capture video from both its front and rear-facing cameras at the same time, and broadcast the images side-by-side to YouTube and other livestreaming services.

Chatbot helps students choose courses

Students can chat to the AI about the options available to them Leeds Beckett University has launched a chatbot to help prospective students find the right course. It follows the publication of A-level results in England, Wales and Northern Ireland. Using Facebook Messenger's...

EU-funded online privacy tool will protect your data – and help you sell it

“Privacy-for-Benefit” is still being developed but the plan is to create new business models which will allow users to partially trade their private data for “economic benefits” — which could be the first step towards personal data as currency.

Newton Mail finally comes to Windows for a cross-platform email experience

Newton Mail, a multi-platform email app that’s been available on Mac, iOS, and Android, is finally reaching the last major platform it had yet to be offered on: Windows 10. Aside from, you know, being offered on Windows, there’s not much...

Apple Watch to be sold alongside Aetna health insurance plans

Apple has already switched its marketing to focus on fitness and health. This is first move for insurance providers

How Ulta overhauled its business to edge out Sephora

Ulta has amassed the insights and data from 25 million people — it can share that information directly with its partner brands.

Samsung TVs now let you use Shazam to discover what songs are playing in movies and TV shows

Samsung is rolling out an update to its 2017 lineup of smart TVs that will allow anyone to find out what song is playing on a TV show or movie simply by tapping a button on their screen.

Unpatchable flaw lets attackers disable vehicle safety features

Instead of trying to inject a malicious message into a vehicle's controller area network, the attack overloads it with error messages.

Small businesses still forced into physical bank branches

It’s all about the customer experience, in the end.

Alipay connects with Yelp

'This expedites our goal towards a digital lifestyle'

Goldman tops banks betting on a new type of hedging

Goldman Sachs Group Inc. has taken to investing large sums of money into outside ventures in a bid to disrupt the financial industry.

Subscribe to the Business Brief Newsletter

Get our complimentary briefing, featuring news & analysis of the business trends and practices.
Terms and Conditions