Transformation Through Application

Innovations consist of net new technologies, methods, or frameworks. Examples include artificial intelligence, machine learning, or cloud computing. Transformations are the advancement of an existing system via the integration of innovations.

Fundamental industries are industries whose functions are fundamental for a global economy to operate. While their application layers may look different today, their fundamental purpose has always existed in modern civilization in some form.
‍
For example, communication infrastructure is necessary for a global economy to operate. While the application of that industry may have transitioned from railroads to telephone lines to satellites, it remains a fundamental industry. The same applies for manufacturing, transport, commerce, etc.

Fundamental industries are too interconnected, too immense in scale, and too critical to the global economy to simply be built anew. Instead, they are transformed and refactored internally via their core processes.
‍‍
For example, replacing the global supply chain network in one fell swoop is highly impractical, but transforming its underlying processes - from the installation of smart loading docks to the enablement of on-demand storage - can be fundamentally transformative. The same applies to manufacturing, commerce infrastructure, or any other foundational industry.