Moore’s law Rich Karlgaard says, “rate of progression jumped off the tracks,” particularly in the enterprise software space.

Sample Solution

Rich Karlgaard's observation that Moore's Law has "jumped off the tracks" in the enterprise software space is a provocative one, and the interview offers several compelling examples to support his point:

• The rise of cloud-based software: The shift to cloud-based solutions has decoupled hardware and software advancements, making it harder to directly apply Moore's Law's exponential gains to enterprise software. As Karlgaard notes, "You can't just keep adding transistors to make software faster."
• The diminishing returns of marginal improvements: With ever-increasing processing power and storage capacities, further incremental gains in software performance offer diminishing returns. As Karlgaard puts it, "The big wins are all out there, and we're basically stuck with the crumbs."
• The focus on user experience and integration: The emphasis has shifted from raw processing power to user-friendliness, integration, and data-driven insights. These factors, while crucial for business success, are not directly tied to Moore's Law's exponential growth.

Comparable Cases in Other Industries:

Similar trends can be observed in other industries:

• Pharmaceuticals: Drug discovery and development no longer rely solely on brute-force computational power but increasingly leverage AI and machine learning for more targeted approaches, potentially shifting the focus from Moore's Law to data-driven innovation.
• Manufacturing: The rise of automation and robotics has decoupled production efficiency from Moore's Law limitations. While processing power plays a role in automation algorithms, other factors like sensor technology and material science are equally important for driving progress.

Technology as the Business Model: A New Paradigm

Bill McDermott's assertion that "technology is the business model" signifies a profound shift in how businesses operate. The interview provides several illuminating examples:

• SAP's transformation: SAP's move towards cloud-based subscription models and platform-based solutions demonstrates how technology is no longer just a support function but the core driver of their business model.
• Customer-centricity and data-driven insights: Technology enables businesses to collect and analyze vast amounts of customer data, allowing them to personalize their offerings, optimize operations, and adapt to market changes in real-time.
• The rise of platform ecosystems: Platforms like Amazon Web Services and Salesforce empower businesses to build and scale their own applications and services on top of existing technology infrastructure, fostering a collaborative and interdependent business landscape.

External Source for Context:

Scott Galloway, in his book "Four Forces," also emphasizes the shift towards technology-driven business models. He argues that the rise of the "Big Four" tech giants – Amazon, Apple, Facebook, and Google – has redefined the rules of competition, forcing traditional businesses to adapt or become obsolete.

The COVID Economy and the Imperative of "Getting It Right"

The pandemic has accelerated existing trends and forced businesses to rethink their operations in light of new realities:

• The rise of remote work and collaboration tools: Businesses need technology that facilitates effective communication and collaboration in a distributed environment.
• E-commerce and the omnichannel experience: The pandemic has boosted online shopping, and businesses need robust e-commerce platforms and integrated omnichannel strategies to cater to changing consumer behavior.
• Supply chain resilience and data-driven decision-making: The pandemic exposed vulnerabilities in global supply chains. Businesses need technology that provides real-time data insights and enables them to adapt to disruptions and optimize their supply chains.

Interview Example:

Karlgaard mentions how SAP helped businesses adapt to remote work during the pandemic by providing secure and reliable collaboration tools. This demonstrates how technology has become critical for business continuity and resilience in the COVID economy.

Other Sector Examples:

• Healthcare: Telemedicine and digital health platforms have become essential tools for providing care during the pandemic, showcasing the importance of technology in delivering accessible and efficient healthcare.
• Education: Online learning platforms and virtual classrooms have become indispensable for ensuring education continuity during lockdowns, demonstrating the transformative potential of technology in the education sector.

Conclusion:

Moore's Law's slowing pace in the enterprise software space signifies a shift towards a more nuanced understanding of technology's role in business. Technology is no longer just a tool but increasingly the driving force behind business models, customer experiences, and operational efficiency. The COVID economy has further amplified this trend, pushing businesses to embrace technology and "get it right" to survive and thrive in the ever-changing landscape. While specific examples and insights may differ across industries, the core message remains the same: technology is the new frontier, and businesses that leverage it effectively will be the ones that succeed in the post-pandemic world