The Internet & Business Models
This is a short write-up based entirely on this TED talk. All credits to the speaker who brought fancy concepts in Business Models down to Earth. He broke all its complexity and delivered an idealist path for innovation — being a Now-ist. So, here goes my understanding.
Well, the Speaker highlights that prior the internet era, people who wanted to create business such as tech services, which cost substantially millions of dollars to stack the Hardware layer, Software layer and all the networking etc., they normally save the idea for the future and meanwhile go out, get an MBA degree, write a plan, raise funding from VC’s, or established companies or other lenders and finally hire Engineers/Designers who build the thing. This is Before Internet (B.I) Model.
P.I or Post Internet, the cost of collaboration, distribution and most importantly development of the product, especially softwares have gone down literally to zero. At present, Software manufacturing can be started with zero investment. All it requires is the right skill set to develop and build the product that you want to put in the market. Essentially cost of trying a new thing have become nearly zero, even for hard products with open sourced simulators and advancements in automation. So the P.I model works like this, people with the right skill set, build the product, then think about raising money and figure out a business plan and finally hire some MBA’s if need be OR sell/merge with big companies like Google Inc., Apple, Microsoft Corporation etc.,
Internet changed the innovation model from being an MBA driven innovation model to an Engineer/Designer driven innovation model, at least in the Software spectrum. This has pushed the innovation to edges, to the dorm rooms, to garages, to startups away from big companies that earlier had the money, power and authority to innovate for the World. The Speaker also explains that this model of innovation is expanding out of Software industry to other Engineering fields and even Medicine, of course with the help of softwares which has significantly reduced the cost of production of models, their testing, deployment and distribution.
This had got me into thinking the general hierarchy of Engineering & Technology in the same Pyramid fashion.
Essentially it’s all Abstraction. Yes, abstraction. Big companies like Google, Apple ventured into the mobile industry (by adopting mobile technology from its inventor) and build their products on top of it with softwares (which were created using earlier adopted technologies as the base). They also release tools for general Developers in the public who can make use of their skill & creativity to build their thing. Using these tools, they make it available open-wide to the outside world through application stores of these big companies — favoring both the parties. It is always a give and take in a deal. Sweet!
“Publish or Perish → Demo or Die → Deploy or Die!”
“A Demo has to work only once!”
“Education is what others do to you. Learning is something you do to yourself.”
Agile development methodology → Idea of ‘Compass over Maps’ for learning.