Until the mid-20th Century, big technology was created, developed and marketed by big business backed by big financial firms. This all changed when people created new VCs, and became radical stimulants of innovation. These were executives and technologists from big business who struck out to make things happen. They did this by tapping on efficient markets (created in the 80s - rise of mass marketing and distribution), financial surplus (created in 1970s - financial reform) and the rise of the creative class (triggered during 1960s).
Much of today's technology and know-how actually started from big business. Companies such as Bell, AT&T, IBM and Xerox created technology such as the transistor, UNIX, hard drives and the graphical user interface. But they were either unable or unwilling to take these innovations to a greater market. It also has a lot to do with shareholders and stock brokers who did not want the value of existing products to be threatened unnecessarily by introducing new technology.
VCs had no such vested interests and were happy to take advantage of introducing new technology and create new markets. The role of VCs, the entrepreneurs and the technologies they bet on, has changed the rules of product and market development. In a few short decades these "Greeks" have taken on the Xerxes of business and technology and reshaped the world.
Premise of Innovation
Virtually all technology innovation in the past thirty years was enabled by two factors. One is rapid miniaturisation, otherwise known as Moore's law. The other is the development of user centric design popularised by Steve Jobs, as opposed to engineering centric design. Its profound effect on technology and business ranging from supercomputers, websites to mobiles continues to touch everyone in the world.
The standardised personal computer created by IBM and powered by Microsoft and Intel thirty years ago triggered a global technology slingshot that we are are all riding on today. By concentrating on services sector innovation during this era, America also created a financial slingshot that saved them from impending domination by the Japanese. They created a global powerhouse that won both the cold and gulf wars as well as consolidated greater economic dominance.
However, the American powerhourse fashioned in the 1970's has come to a head in late 2008. Last year, the global financial markets around the world have come to a realisation that America is not the only centre of wealth creation. The immense value created in the 70's, 80's and 90's has diminished. The world has to be re-wired.
Need for a New Slingshot
It is now apparent that the world is not flat. In fact it has several various gravity pools - at least three big economic centres and around six geopolitical hotspots, most of which is in the East. Globalisation has silently unleashed a new force in the East. And I'm not referring to New Jersey. I'm talking about the Middle East, East Europe, Far East, South East and the combination of the last two.
Now its not as scary or ominous as it sounds. People in these countries are not aliens or tyrannical people who want to eat your lunch. They want the same thing as anybody else - a decent shot at life and living.
These markets need new technology-based solutions. The design innovation used by VCs thirty years ago needs to be applied again, to a new level. We will need to turn Moore's law on its head in order to tap the unaddressed market at the bottom of the pyramid. We also need to re-define the meaning of user-centric design.
Today, developed economies produce the best solutions in Enterprise Resource Planning, Customer Relationship Management and Sales Force Automation. They also produce entertainment, news and education content needed by these new markets. But not at prices they can afford nor in the format that they can understand.
Micro enterprises and small and medium business in Asia cannot afford leading edge tools developed in Europe and USA. But they need them badly. Neither do they have college educated employees trained in business administration to use them.
One such golden opportunity is to embed best practices in software as a service for businesses in emerging markets, at the right price, in the right language and using the appropriate device. This is the innovation that VCs, entrepreneurs and technologies need to urgently look at. This will re-shape world and elevate everyone to the next level of development.
Well not unlike the American technology revolution, this Eastern Wave will take time and requires several ecosystem components to be in place before it flourishes. But, anything good is worth waiting for and working on, eh?
