How Technology Creates Wealth

Dynamic markets create opportunity

Markets create energy because they are dynamic. They are constantly evolving in response to changes in the economic, political and technological environments. Understanding what causes a market to evolve helps you predict where opportunities will emerge; how fast they will develop, and when and whether mass adoption will occur. If you can capture this energy, you can use it to drive the sales process.

Dynamic systems create energy. If left unchecked, any systemic change tends to grow. A snowball rolling downhill gets bigger. Growth creates momentum. As the snowball grows bigger, it goes faster. Momentum creates energy. The faster the snowball rolls; the bigger it gets; the harder it hits the tree. Energy drives change. (Source The Fifth Discipline)

You can use the energy sources created by an evolving market to motivate prospects to buy your solution. Persuading people to try out a new technology is an uphill battle. You have to invest a lot of your precious energy – sales resources, capital, technical expertise, etc. – into convincing prospects they can benefit from using your technology to support their business. However, if you understand what is driving market change- an increasingly mobile workforce, higher need for personal security, faster access to global markets – then you use the energy created by the market to motivate prospects to buy. Thus, you need to invest less of your own resources and you can sell more productively and efficiently.

Technology markets create abundance.

There are two laws that explain why technology-enabled markets generate extraordinary amounts of energy.
1. Moore’s Law predicts that technology is going to improve in the future and cost less.
2 Metcalf’s Law states that technologies become more useful as more people use them.

The combination of these two laws creates an economy of abundance that is unique to technology markets. As Moore’s Law predicts an endless supply of ever-increasing resources and Metcalf’s Law promises that innovations will be quickly adopted, the nature of the economy changes.

Gordon Moore, the founder of Intel, said, “Every 18 months processing power doubles while the cost holds constant.” The implications of Moore’s Law are that every 18 months technology is going to cost half as much and be twice as powerful. Moore’s Law has held true for over 30 years. Previous economies were based on the laws of scarcity, where you have a limited amount of resources and value is based on how scarce they are – gold, oil, land, etc. The more you use up the resources the less energy you have.

A technology-based economy is based on the laws of abundance. According to Moore’s law, there will always be cheaper resources tomorrow. This ever-increasing pool of resources enables customers to implement new business strategies. If it isn’t possible today, it will be possible tomorrow. Improved technology is constantly fueling the market, creating energy.

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