Name: Arrow Electronics CEO: This Is the Future of Technology
Uploaded: 2016-05-16
Duration: 3 min 49 s
Description: And these are the companies he thinks will lead the way

Mike, you just reported record revenues, record earnings, and your stock this year is also up substantially. What's driving all this growth? We've been very fortunate. Five years ago we started several programs around the cloud, around digital, and around the internet of things. And, these programs are starting to culminate into some real sales for us today. If we know the economy's not that great. So it's really helpful to have that at your back. You sell electronic components to a lot of big companies like IBM, General Electric's a big, car companies. What areas do you see where there are gonna be the strongest growth prospects? Well we have seen automotive being very strong over the last couple of years. And whether you think of the electric car, the self driving car, the new cars with computer systems in them, this will continue to expand and I think that will be good into the future. You have a tagline at Aero, " five years out ." What does that mean? Well, for us, we believe five years out is a tangible future. And so we believe the changes that are starting today will start to really become embedded five years from now. So we're constantly looking to make sure we're doing the right things today. So we can capture new markets that will be here five years from now. Alright, so what are you seeing as the big innovations, the big new markets five years from now, that all of us will be using in one way or another. Well, with connected society, the cloud is just emerging. So that will be huge in the future. You'll be storing data in the cloud. You'll be getting you information from the cloud. Homemakers will be getting recipes out of the cloud. And virtually, every company in the world will be connected to each other through the cloud. So, that is an exciting area. The next one is the Internet of things. And that's where there are measurement systems on products. And then that information, that comes out of those products will go into the cloud. And then you can get things like maintenance schedules, or if there is something wrong with a product you can service it over the internet. And, really, take care of your customers much better. It all sounds very exciting. But with innovation, and you're doing a lot of it. Some things work and some things don't work. What is your tolerance for trial and error, and for failure? At Arrow, we have a very high tolerance for fail, but we call it a fast fail. If we're gonna fail, let's fail fast, and if we're gonna get involved with something, let's get involved, let's go deep, And then if it doesn't work out, let's exit quickly and gracefully. Mhm. So with your ability to spot trends, who do you see are gonna be the companies or the industries that are gonna be the disruptors and who could be the victims of disruption? I believe you're gonna see the things like the Googles and the Amazons They will continue into the near future for sure. It depends how fast people can pivot their businesses that support the new technologies that are out there. So the strong executors, people that have always been good companies that could do that, will still be around. So what happens to those big, established companies? They continue doing business or are you gonna be servicing more The start ups, the new entrepreneurs that may not even exist today. Well, at Arrow we have done over 35 acquisitions in the last few years. And most of that has been to pivot to the new economy. So we can service customers Customers that we never talked to before. And even if you take big established companies, IBM, Oracle, you see them doing acquisitions to pivot their companies. That's what's going on right now, there's a fast trend for supporting the cloud, there's a fast trend towards supporting IoT. And these are gonna be the two biggest things that ever hit electronics. [ BLANK_AUDIO ]

Arrow Electronics CEO: This Is the Future of Technology

And these are the companies he thinks will lead the way