Software is eating the world. But isn’t the point of technology to increase the size of the pie not cannibalize it? In the era of the public cloud Productivity Growth is well below long-term average, Life Expectancy plateaued (before Covid) and broke it’s growth trend, and Real Wages have stagnated. We are creating more software than ever and fewer real world outcomes. The explosive, software fueled, growth has been largely confined to the consumer internet and the sellers of software themselves, but somehow not their end customers. What has gone wrong?
What are the essential shifts that need to happen in the mindset of software developers and corporate leaders to move from creating software that facilitates business operations to software that fundamentally enhances and defines business strategy and execution? This in itself seems more like a larger structural and mindset shift that needs to happen, but once the culture is set like concrete it may be painful to even get people to recognize this.
If you believe this is true, it's just a matter of time before the market realizes it and exploits the advantage. I hope it happens quickly not slowly but the sclerotic mindsets are hard to overcome and are set like concrete as you mention. There are also strong forces in the software industrial complex constantly reinforcing that concrete. Without facts on the ground forcing people to reckon with a new reality it's an argument not a revolution. But the facts are developing quickly.
As one example, convincing GM of this is a fool's errand. But, the technology advantage allows for the creation of Tesla and FSD as a platform to either render GM irrelevant or force them to eventually license the technology. The best leaders/most ambitious developers will realize this very quickly and drag the rest of the world along. Anduril is doing this in defense and just won contracts to build an AI fighter jet. We are trying to enable both new companies to achieve this quickly and old companies to transform. BP cut cost of production by 60%, Airbus increased production speed by 33% (and look at Boeing..), Ringier has scaled gross margin form 71% to 83% since they started with Palantir. At some point this becomes the standard and you have to get your head out of the sand or perish.
What are the essential shifts that need to happen in the mindset of software developers and corporate leaders to move from creating software that facilitates business operations to software that fundamentally enhances and defines business strategy and execution? This in itself seems more like a larger structural and mindset shift that needs to happen, but once the culture is set like concrete it may be painful to even get people to recognize this.
If you believe this is true, it's just a matter of time before the market realizes it and exploits the advantage. I hope it happens quickly not slowly but the sclerotic mindsets are hard to overcome and are set like concrete as you mention. There are also strong forces in the software industrial complex constantly reinforcing that concrete. Without facts on the ground forcing people to reckon with a new reality it's an argument not a revolution. But the facts are developing quickly.
As one example, convincing GM of this is a fool's errand. But, the technology advantage allows for the creation of Tesla and FSD as a platform to either render GM irrelevant or force them to eventually license the technology. The best leaders/most ambitious developers will realize this very quickly and drag the rest of the world along. Anduril is doing this in defense and just won contracts to build an AI fighter jet. We are trying to enable both new companies to achieve this quickly and old companies to transform. BP cut cost of production by 60%, Airbus increased production speed by 33% (and look at Boeing..), Ringier has scaled gross margin form 71% to 83% since they started with Palantir. At some point this becomes the standard and you have to get your head out of the sand or perish.
It seems like this is the best time in the world to build! Thank you Ted for publish this. Time to build!