How Technology Creates Wealth

Dynamic markets create chance

Markets create energy since they’re dynamic. They’re constantly evolving as a result of alterations in the economical, political and technological environments. Being aware of what leads to a sell to evolve can help you predict where possibilities will emerge how quickly they’ll develop, so when and whether mass adoption will occur. If you’re able to capture this energy, technology-not only they are driving the sales process.

Dynamic systems create energy. If left unchecked, any systemic change has a tendency to grow. A snowball moving downhill will get bigger. Growth creates momentum. Because the snowball grows bigger, it is going faster. Momentum creates energy. The faster the snowball rolls the larger it will get greater it hits the tree. Energy drives change. (Source The 5th Discipline)

You should use the power sources produced by an evolving sell to motivate prospects to purchase your solution. Persuading people to test a brand new technologies are a constant fight. You need to invest lots of your precious energy – sales sources, capital, technical expertise, etc. – into convincing prospects they can usually benefit from making use of your technology to aid their business. However, should you know very well what is driving market change- an more and more mobile workforce, greater requirement for personal security, faster use of global markets – then you apply the energy produced through the sell to motivate prospects to purchase. Thus, you have to invest less of your sources and you may sell more productively and efficiently.

Technology markets create abundance.

There’s two laws and regulations that specify why technology-enabled markets generate remarkable levels of energy.

1. Moore’s Law predicts that technology will improve later on and price less.

2 Metcalf’s Law claims that technologies be helpful as increasing numbers of people rely on them.

The mixture of the laws and regulations creates an economy of abundance that’s unique to technology markets. As Moore’s Law predicts a never-ending way to obtain ever-growing sources and Metcalf’s Law promises that innovations is going to be rapidly adopted, the character from the economy changes.

Gordon Moore, the founding father of Apple, stated, “Every 18 several weeks processing power doubles as the cost holds constant.” The implications of Moore’s Law are that each 18 several weeks technology will cost half just as much and become two times as effective. Moore’s Law has held true for more than 3 decades. Previous economies were in line with the laws and regulations of scarcity, where you’ve got a limited quantity of sources and cost is dependant on how scarce they’re – gold, oil, land, etc. The greater you utilize in the sources the less energy you’ve.

A technology-based economy is dependant on the laws and regulations of abundance. Based on Moore’s law, there’ll always be cheaper sources tomorrow. This ever-growing pool of sources enables people to implement new business strategies. Whether it is not possible today, you’ll be able tomorrow. Improved technologies are constantly fueling the marketplace, creating energy.

In addition, because of this straightforward formula technological obsolescence is just a couple of several weeks away. Customers can’t ever manage to sit still for fear that the competitor can leapfrog in front of them when they adopt generation x of technology faster. This anxiety is yet another effective energy source which you can use they are driving profits.

Metcalf’s Law also offers a effective impact on developing markets. Robert Metcalf, the founding father of 3Com, stated “Technology are valuable only when lots of people rely on them… the utility of the network equates the square of the amount of users. ” Which means that the greater people make use of a technology, the greater helpful it might be. When there was just one fax machine on the planet, it can’t be helpful. With two fax machines and copiers you are able to send mail backwards and forwards faster and less expensive than should you send it with the publish office. With 2,000,000 fax machines and copiers, you never need to wait in the publish office again.

Based on Metcalf a technology’s effectiveness equals the amount of users squared. If a couple make use of a fax it’s four occasions simpler than while using postal system. If 20 people make use of the fax machine, it’s 400 occasions simpler. This results in a geometric rise in the technology’s utility, that is just a way of saying why customers may wish to purchase it. Therefore if 2 people are interested a fax machine today 4 people may wish to purchase it tomorrow 16 people may wish to purchase it the next day tomorrow 256 people may wish to purchase it in a few days, and a pair of,147,483,648 may wish to purchase it through the finish from the month. That quite a bit of prospective customers arranging to purchase your product, that is what market energy is about.

Abundance creates interest in your technology. Since technology markets create abundance they aren’t susceptible to the restrictions of scarcity. They’ve limitless growth potential and therefore limitless possibility to build a fortune.