Disruptive Technologies 2014 - Cloud 9 Summit

• 1. Disruptive TechnologiesCatch the Wavepresented byGregory L. LaFollette, CPA.CITP, CGMAStrategic Advisor, CPA.com (a subsidiary of the AICPA)

2. Gregory L. LaFollette, CPA, CITP, CGMASemi-retired Vice President of product strategy CPA.comNow Strategic AdvisorAuthor, Speaker, Thought-leader,Accounting Technology Hall of Fame MemberPrior Eide Bailly, LLP Senior Manager, Tax and Technology Consulting LaFollette Consulting, LLP -- Consultant to the industry The CPA Practice Advisor -- Executive Editor Thomson Reuters (Creative Solutions) VP - Product Strategy LaFollette, Jansa, Brandt & Co. , LLP -- Tax & Technology partner AICPA Committees CITP Credential Committee Chair (7 years; Member 4, Chair 3) Journal of Accountancy Technology Advisory Board Journal of Accountancy Whats Your App-titude? TECH+/Practitioners Conference -- Planning Committee (6 years) National Accreditation Commission ad hoc (3 years) National Tax Education Program (AICPA/UI) -- Graduate and former StaffLecturer (12 years) Top 10 Technology Initiatives -- Review Committee (5 years) Microcomputer Advisory Services Committee (3 years) 3. AgendaWho We AreDisruption & CPAsSignificant Areas of Change 4. Who We Are 5. About CPA.com AICPA subsidiary, Formed in 2001 Markets all AICPA products and services, manages AICPA affinity programs,manages AICPA web properties and leads key AICPA technology initiatives AICPA Store (www.cpa.com) is ranked by Internet Retailer as one of the Top500 e-commerce sites in the US. Built one of the leading distribution channels to the profession through itsTrusted Business Advisor Solutions programa portfolio of web-basedsolutions, training, resources, and alliance programs transforming the CPA-clientrelationship. Headquartered in New York, NY with technology and engineering offices inSanta Clara, CA, sales office in Dexter, MI, and service and support offices inDurham, NC. 6. Overarching PrincipleWe are the leader in guiding the professionsmigration to the cloud through changemanagement, business process education andproduct and service curation. 7. Templosiontemplosion [tem-sploh-zhuhn] noun 8. Its a TEMPLOSIONIts a VUCA world Volatile, Uncertain, Complex, and Ambiguous the answer to rapid changes and hyper-competition is a bold visionand core values; maintaining values that dont change while constantlyre-inventing the shorter term strategy.Tom Hood, CPA.CITPEx. Dir Maryland CPA SocietyI like Tom Hoods VUCA term to define the paradox. Rapid, short-termchange and long-term leadership ideas and goals simply dontmesh well.Hubert GloverAuthor: The Making of the Twenty-First-Century Leader 9. A Note on PredictionsIt's tough to make predictions, especiallyabout the future. Yogi Berra 10. Our near termview is alwaysunclear. Inside theTornado Tipping Point, Crossing theChasm 11. Disintermediation 12. DisintermediationRemoving the middleman -- a popularbuzzword used to describe how Internet-basedbusinesses are using cloud and mobiletechnologies to reach customers.These companies provide products andservices cheaper and faster.These technologies are revolutionizing the wayproducts and services are bought and sold,and disintermediation is the driving forcebehind this revolution. 13. The Latest in Disintermediation 14. Trends to Discuss 15. Some Trends to Discuss1. Cloud Storage2. The Internet of Things3. 3D Printing4. Peer-to-peer lending5. Restaurants6. Hotels / lodging7. Cars 16. Cloud Storage 17. DropboxWhat It Is:Online document, image, andvideo storageWhat It Does:Lets you bring your photos, docs,and videos --- any digital file ---anywhere and share them easily. 18. Dropbox 19. DropboxSD OfficeDesktopDropboxWebsiteMacBookAirHomeOfficeMacBookProGalaxy 4NY OfficeDesktopiPadAllFilesSomeFiles 20. DropboxLearn more: www.dropbox.comPlatforms: iPhone, iPad ,Android, Blackberry, KindleFire 21. The Internet of Things 22. What is ..IoT (aka IoE) 23. Explosive Growth 24. IFTTT RecipesChannelsTriggersActionsIngredients 25. Channels Hundreds!! 26. Triggers if this .based on the channel 27. IngredientsPieces of data from a Trigger are calledIngredients.For example, the Ingredients of an EmailTrigger could be: subject body attachment received date sender 28. Actions if this thenThis recipe uses the geo-location function ofmy smart phone to record every visit to thegym. 29. 10 Interesting Uses .1. Monitor your or your competitors TripAdvisor (or Yelp, etc) reviews2. Mute your phone when you have a meeting on your calendar3. Your phone switches to vibrate when you walk into your officebuilding4. Record on your calendar or spreadsheet when you get to and leavework5. Text your wife/husband when you leave work6. Get an alert when your (or your clients) website goes down7. Receive a text when someone comments on your website8. Get an alert when a certain person or certain people email you9. Flash your lights when it rains10.Wish customers/colleagues a Happy Birthday on Facebook 30. 3D Printing First in was all fun and games Then it started to get serious Graphene will take it to the next level Already printing houses -- Contour Craftings prints2,500 Square-Foot-Homes in 20 hours And some airplane parts! 31. Graphene Graphene is amazing! Made from a layer of carbon one-atom thick Strongest material in the world Completely flexible More conductive than copper Desalinizes sea water WHILE generating electricity! Will eventually replace silicon 32. MakerBotReplicator Mini -- $1,375$949 33. XYZprintingDavinci 1 -- $499Forecast World wide sales >2.2M 34. Projections for 3D Printing Significant patent expirations in mid-2014 Chinese manufacturers involved Technology has reached tipping point Compare to laser printers HP 2 sold for $3,995 in 1985 Now available for >$100 (overpriced ink) 3D printers sold for $14,000 only 5 years ago Now available for >$400 (overpriced material @ ~$25 per pound) Explosive growth from here on out How does this impact YOUR clients? 35. Peer LendingTechnology is the easy part Kiva (non-profit) > 1 million lenders > $500,000,000 in loans / 99.01% Repayment rate KickStarter (friends and family) Regulation and litigation Prosper (Wells Fargo execs) >$1 billion in loan originations to date LendingClub (technology execs) Loans being funded @ > $250M / month Interest paid to investors: ~$500M to date Kabbage (technology & banking) Direct ties to cloud-based accounting platforms Quarterspot (investment bankers) True crowd-sourced loan funding 36. Crowdfunding Grows Up 2012s JOBS Act, allows companies to raise up to $1 million in a12-month period From accredited investors Income over $200,000 (single) or $300,000 (joint) per year or net worth over $1 million An executive or director of the company Under $100,000 requires two years of financial statements, certifiedby the principal executive, and its most recent tax return. From $100,000 to $500,000 the statements must be reviewed by aCPA. Over $500,000 must have audited statements 37. What it means Role of banks? Role of CPAs as creditadvisors? Financial statements? Benchmarking andanalysis? Personalinvestments? 38. DisruptiveTechnologies 39. TransparencyProviderTechnology Customer 40. 8 Strong Indicators1. Ratio of expenditures -- Legal to Tech2. Governmental involvement3. Excessive resistance --- mockery4. Generational differentiation5. Huge efficiencies6. Protectionism7. First or early mover(s) soon copied by others8. Who benefits? 41. Disruptive Technologies 42. GrubHub /SeamlessWhat It Is:Food delivery serviceWhat It Does:Aggregates menus of restaurantsthat provide delivery service toyour specific location. Automatesordering and payment functions. 43. GrubHub /SeamlessHow You Might Use It: Order food delivery at yourhome, office, or hotel. See each restaurants menuand customer ratings. Limits errors in ordering,address, etc. Centralizes credit cardpayment so theres no morefumbling at delivery time. 44. Learn more: www.seamless.comPlatforms: iPhone, iPad,Windows, Android , Web appCost: FreeGrubHub /Seamless25,000 participating restaurants130,000 meals per day3% rake 45. GrubHub /SeamlessDISRUPTION:Sit-down restaurantsOPPORTUNITY:Del-co food outletsServices for nesters 46. AirBnBWhat It Is:Short term room rental founded in2008 as couch surfingWhat It Does:Provides intermediary servicebetween hosted apartments,rooms, B & Bs, etc. and patronswishing to rent them. 47. AirBnBCurrent VC value! 48. AirBnBHow You Might Use It: Host extra space, vacationhome, apartments, etc. Rent space almost anywherein the world. See each propertys photosand customer ratings. Limits errors in reservationsdates, address, etc. Centralizes credit cardpayment so theres no morefumbling at arrival time. 49. AirBnBLearn more: www.airbnb.comPlatforms: iPhone, iPad,Blackberry, Windows,Android , Web appCost: Free 50. AirBnBDISRUPTION:Traditional hoteliersMunicipal tax collectorsOPPORTUNITY:Micro-landlordsTravelers 51. Cars 52. So what changes? First rental cars Started with ZipCar sold to Avis/Budget Then GroundLink for limos Now the taxi and limo business Next autonomous cars 53. UberWhat It Is:Car and taxi serviceWhat It Does:Provides intermediaryservice between car andtaxi owners / operatorsand patrons wishing toutilize them. 54. UberWhy Use It: Almost-on-demand black car ortaxi service. Cheaper than traditional blackcar service. See each cars exact locationdescription and customer rating. Limits errors in timing, address,etc. Centralizes credit card paymentso theres no more fumbling atdrop-off time. 55. And here comes the competition! 56. UberDISRUPTION:Existing taxi / limo companiesMunicipal tax collectorsOPPORTUNITY:Part time drivers (Google financed)TravelersDelivery servicesLONG-TERM IMPACTNumber of cars requiredParking lotsAutonomous cars? 57. Enter Google 58. Driverless Cars We already have assisted driving Auto parking Lane monitoring Adaptive cruise Emergency braking Autonomous cars in our lifetime? BMW Audi GM Ford Mercedes Benz Volvo Nissan Ford Chrysler Hyundai 59. Driverless Cars Nevada, California, Florida, Michigan and WashingtonDC now allow licensing and operating autonomousvehicles on public roads. Google Ventures just make its largest investment ever --$285M in Uber (valuing Uber at $3.75B) Google says its designing Its own self-driving car for useas a Robo Taxi Technology is the easy part Legislation and litigation are challenges 60. Late breaking news . 61. So what changes?1. Technology enablesmassive competition2. Centralized regulationdisappears3. Fewer cars?4. Fewer parking lots5. Less congestion6. Better safety7. More productive time8. Cost of trucking falls logistics become cheaper9. Fewer hotels?10.Fewer full time jobs / morepart time?11.On demand deliverybecomes standard fewerbicycle messengers12.Surge availability 62. Thank You!!!