On MIPs and Being a Smart Consumer
Andy Grove became one of the most successful businessmen of the 20th century by understanding the relationship between the exponential growth of computer processors and the need for software to grow in complexity. Specifically, he knew that processors would get orders of magnitude more powerful every year which in turn would require new software categorized as MIP or “Millions of Instructions per Minute”. Grove and Intel invested heavily in software that brought audio and video conferencing to the world before anyone ever thought consumers would need such technology. Something we take for granted on every cellphone in the world today was thought to be a reality reserved to military and corporate domains. The principle here is that businesses are relational and depend on the growth and success of other industries. Business understood properly is mutually interdependent across industries.
Business Consequences of MIP
Business within the world of technology dies if it stagnates. Technology means innovation or death; there is no tertium quid. Innovation is not a word for frantic change or gimmicky features that distract from the essence of a product. The word “innovate” comes from a Latin word meaning “to make new”. Innovation should renew again the reasons we use a product in the first place. Innovations should confirm our need for the tool at hand and improve upon the essence of the same. One of the problems killing businesses and consumers right now is the false expectation of “category creation”. Category creation — entirely new paradigm shifting products — are not the norm and strictly speaking are not innovations; they are inventions. They are more rare and should not be expected frequently as a matter of course. An example that comes to mind is Tesla. Tesla is an innovative company. They are taking something we have had and loved for a long time — cars — and made them dramatically better. If Tesla were to invent something like a “flying car” that would be an invention in the proper sense as it would change the category of car into something categorically not a car. However, battery powered super smart cars remain “cars” in the proper sense, just much, much better. To use another example, great innovation in the cellphone industry would be dramatically improved battery technology, Samsung’s new s8 screen form and technology, etc… Saving the R&D spent on thinking of new categories and making present categories better — namely innovating — is good business and companies shouldn’t be afraid of it.
Consumer Consequences of MIP
For consumers, temperance is the name of the game. Buying new technology because it is new doesn’t help the companies who put out products that are under-tested, and half baked; we just encourage them in their endless spew of half hearted attempts. We should ask ourselves if there is anything wanting in our current toolset or if there are genuine innovations that would help us in our day to day lives. When we buy products that innovate in true ways — say battery technology, screen technology, etc… — and bypass products that have stagnated and rested their laurels on gimmickry, we encourage a future of positive trajectory innovation.
Conclusion
Andy Grove’s business genius which he demonstrated in discerning the need for MIP software can have a mirror effect for consumers who in turn discern that their buying habits have a concrete impact on the future of innovation. Think about MIPs and what it means for you as a consumer. In a word, focus on your own passion and buy tools whose innovation assist you in the pursuit of your passion.
