We’ve established our own proprietary Golden Cog Strategy to unearth dominating forces that underpin nascent, fragmented, and emerging markets in order to capture unrealized opportunities and value pools.
Golden Cogs are solutions with a dominant position in the landscape. These solutions oftentimes are required to form a complete tech stack, difficult to build, and are in-market as enablers for larger platform players. Their market position provides a strong economic moat and incentives structure, but may lead to price compression overtime.
Golden Cog opportunities can also be fleeting. As with many nascent, fragmented, and emerging markets, unique solutions are targeted quickly and the supply increases, reducing the long-term economic incentives.
With our proprietary methodology, we are able to help our clients identify demand-driven use cases, establish the technologies available, pinpoint where investments are flowing, and discover the spaces. Like a jigsaw puzzle , the Golden Cog Framework demonstrates how multiple digital identity market segments come together to address the “how might we” use cases that are driving demand in this space.
Assess all solutions that exist in and industry individually by looking at product and service offerings, customer or client base and roadmaps
For each segment, identify if it is a platform offering a suite of solutions, or if it’s an enabler, offering a single solution that can be used within a platform
One of the biggest market forces in identity is data. So we categorize solution segments under one or more of the following:
Individual (usually consumer) created data that provides the user with increased control and autonomy of verifiable credentials
Predictive insights that are inferred from behavioral events across a wider range of data sets. Statistical modeling is generally used to assess the probability that the data matches a specific person
First party data that is trusted and true. Deterministic data relies upon identity attributes that act as unique identifiers to create a match between one or several pieces of personally identifiable information (PII)