The impact of digitalisation

I was listening to a podcast by Marc Andreessen (Co-Founder of Netscape) in which he discusses the history of programming.

He's smiling because he made a hell of a lot of money...

It’s a bit of a geek out, but he makes some interesting points :

1. Programming tools are no longer made for machines, they’re made for programmers. this makes them really easy to learn how to use.
2. Servers are now a commodity, and the number of servers sold has increased incredibly over the last five years
3. Bandwidth prices are still plummeting
4. Open source tools mean that the barriers to entry have disappeared (from a cost point of view) when it comes to building web applications

What does this mean?

In a world where many businesses are now becoming digitalised to some extent, and almost everyone is trying to interact in a cheaper and smarter way with their customers (usually online in some shape or form), the next disruption to your business might not be from your competitor.

It might come from a self-taught kid in Brazil who has unintentionally designed something which is going to kill your business.

Think of the barriers which were around when Andreessen formed Netscape. Or when Shawn Fanning wrote the code for Naptser.

Now think of how many of those barriers has gone. And then think about your business.

“The interesting stuff happens on the edge” (in many sectors)

David Skilling, chief executive of The New Zealand Institute, is quoted in a Time Magazine article about the state of New Zealand as a country. Skilling is a very interesting person for a whole number of reasons, and very bright. In the article in makes some very topical points about the impact of geography on globalisation (which is outside the focus of this blog), but he also makes an interesting point about the fringes :

Just like in biology,
the interesting stuff
happens on the edge.