As an engineer-in-progress it’s easy to observe some new technology and think “wow, this has great potential!”. The technological factors are overwhelming, so much that all other factors for success are disregarded as “details” to be solved along the way. Especially economic ones.
My favourite example is the moon. Certainly we could build a habitable station on the moon. If we can, and the technology is pioneering and awesome – then certainly we should! Right?
Enter the killjoys. The ones asking “and then what?”, “with what money?” and “why?”. I believe, to be successful as an engineer and entrepreneur I have to accept them as relevant. I must even be able to give answers – good and convincing answers. In other words, I must endulge myself in the languages of economics and marketing. Technology is not only about technology. Maybe even the least.
Examples are the thousands of shiny new webapps, services and communities sprouting the web. I dare say most of them are build before a functioning business model is figured out. “Users = money” has been proven not applicable, mainly due to the lack of money within advertising. Facebook, Twitter and many other services simply are not profitable. Why invest and build something, if not for profit?
Perhaps the starch truth is that for the vast majority the web can merely function as a complement – an accelerator – for the company’s core business. Just as The New York Times is now implementing paid online news, most of the other free services will have to actually start …selling something. Crazy I know – selling something to be profitable?!
But as a tech enthusiast, I sincerely hope that functional business models will emerge so that all those webapps remain free. Technology on its own is pretty awesome.
The development of the modern society isn’t based on profit, it’s based on shortage. Where there is more shortage there is more profit. If the economic system of the world was re-modelled to be based on spiritual growth we have the means and resources to create a wonderful environment.
But the condition is to work together and unite forces for constructive means, not war, competition and destruction.
You should watch Zeitgeist 2: Addendum by the way. :)
I wouldn’t put “competition” in the same category as war and destruction :P At least for me competition is the main cause for extracting the very best of businesses and ideas. Competition is the sole driver of excellence.
There are many possible, better (?) economic models, including Fresco’s Venus project. But they are just ideas and philosophies and thus quite uninteresting when it comes to real business. That said, I still think it’s very interesting to discuss over coffee, especially environment-based, sustainable economies. But they are separated from real economies.
As the world is built right now, it’s a free market. Competitive yes, but also quite intriguing and awesome. Above all, it’s what you make of it (since it’s free!)
-”Why invest and build something, if not for profit?”
For the betterment of humanity.
Of course I agree with you, for business advancement profit is a need. But one should not single out profit as the one and only cause for the existence of technology.
But as you say, all the shiny webapps will have to start selling something. And I’ve noticed that most actually are!
More and more apps are bringing in small reasonable payments for use of their app.
Imagine Facebook taking 5SEK a month for use of their app, would anyone complain? Don’t think so.
Would Facebook earn a hell of a lot of money? Yepp…
With the web as extensive as it currently is one can sell a product incredibly cheap because there are no overhead costs, no production costs or anything, you just have a shitload of users paying for access. It’s like running the freakshow at a circus. A “selling-stuff”-business model is getting more and more possible
The “betterment of humanity” can’t be the only reason, just as profit cannot either. Profit is needed to add value, and betterment of humanity is needed to add profit.
I fully agree profit can’t be the only driver for technology. Both because I’d say it results in inferior technology, but also for pure moral reasons. If you can contribute to bringing good into the world – then do it. But you will still need to profit as well.
Also, I’d totally pay for services that are good! But it has to stay within micro-payment sizes. I feel I can only pay intaginble sums of money for intangible products.