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Beyond Michigan’s Automotive Legacy

Nov 15, 2017

While debate continues as to whether Michigan is an auto manufacturing state or an auto technology state, there is another storyline on the tech front. Michigan is home to numerous, and growing, “pure technology” companies and the number continues to rise.  Developers are thinking up and building everything from software to mobile apps, in order to create new user benefits.

Development companies across Michigan will help clients across a wide-range of industries, through custom-off-the-shelf (COTS) to custom build platforms.  These companies include Atomic Object in Grand Rapids, to Gravity Works Design and Development in Lansing, to DetroitLabs in Detroit, the stretch of innovation is wide.

Michigan is also home to some big-time software companies in the state, including:

  • BlueMedora – A specialty IT analytics company, currently has a nine-figure valuation
  • FarmLogs – A farming intelligence system
  • SkySpecs – A drone-based, human-less flying inspection company
  • MaxOne – Video training for high school sports
  • GasStationTV – The videos that play at gas stations
  • Michigan Health Council – A non-profit that developed two software products that address critical healthcare workforce needs 

Curiosity drove me to reach out to a legislative staffer turn tech star, Donald Wasserman. Donald is in the thick of things as President of Modest Ventures, LLC a software consultancy helping organizations of all sizes build great software products. He shared several insights worth passing along:

  • When analyzing this industry, it’s important to distinguish between technology companies and technology-enabled companies.
  • Why is this distinction important? As technology companies (such as Amazon and Netflix) deliver new technological fundamentals, the pillars on which many traditional companies have built their entire businesses are starting to erode. Brick and mortar stores nationwide are starting to struggle in the new marketplace.
  • Michigan isn’t in a great position to create industry defining technology companies, but we’re in a terrific position to capitalize on the technology-driven changes facing “old model” businesses for three reasons:

    • Manufacturing – Hardware is hard. Tier 3+ auto parts, and tool and die companies provide laboratories of innovation to respond to environmental changes in an agile way. We may not have invented the iPhone, but we can capitalize on embedded networks and self-driving cars. Atomic Object is an example of this. 
    • Universities with a commitment to diversity – You may have heard of Juciero, the "high tech" $700 juice dispenser, as a great example of disconnect between Silicon Valley and America. What's great about Michigan's public universities is their commitment to bringing in a diverse student body. There's a group funded by them called Michigan College Access Network, which does a lot of rural and inner-city outreach for students. A Michigan product like FarmLogs is unlikely to come out of Cal-Berkley.
    • Cheap space – One benefit of the economic downturn Michigan suffered is a plethora of cheap space. From housing, to offices, to labs, there is an abundance of reasonably priced space.
  • What does this mean for businesses and organizations? At a technology company, it’s essential to embrace speed and value learning over deliberation, debate, and PowerPoint. Embracing a lesson-learned outlook is the most important point to rapidly test your internal hypotheses about products, markets, and projects. 

At the end of the day, the technology may be new, but the purpose of a good or service remains the same; to meet the needs of the consumer, as diverse as they may be.  As Donald told me, “the real value of software isn't what's written in code, but in how the application meets the needs of its users.”

Michigan Legislative Consultants is a bipartisan lobbying firm based in Lansing, Michigan. Our team of lobbyists and procurement specialists provide a wide range of services for some of the most respected companies in America. For more on MLC, visit www.mlcmi.com or connect with us on LinkedIn and Twitter.

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