Nice article.  Anything that gives some structure out of what's happening
now is helpful.


On Mon, Feb 11, 2013 at 10:05 AM, Dr. Ernie Prabhakar <
[email protected]> wrote:

> Nice bit of futurism; matches what I'm seeing.
>
>
> http://cdixon.org/2013/02/10/the-computing-deployment-phase/?utm_campaign=website&utm_source=sendgrid.com&utm_medium=email
>
> The computing deployment phase - Chris Dixon
>
> Technological revolutions happen in two main phases: the installation
> phase and the deployment phase. Here’s a chart (from 
> this<http://www.amazon.com/Technological-Revolutions-Financial-Capital-Dynamics/dp/1843763311>
>  excellent
> book by Carlota Perez 
> via<http://www.avc.com/a_vc/2011/05/technological-revolutions-and-financial-capital.html>Fred
>  Wilson) showing the four previous technological revolutions and the
> first part of the current one:
>
> [image: url]
>
>
>
> Each revolution begins with a financial bubble that propels the
> (irrationally) rapid “installation” of the new technology.  Then there’s a
> crash, followed by a recovery and then a long period of productive growth
> as the new technology is “deployed” throughout other industries as well as
> society more broadly. Eventually the revolution runs its course and a new
> technological revolution begins.
>
> In the transition from installation to deployment, the bulk of the
> entrepreneurial activity moves “up the stack”. For example, in the
> installation phase of the automobile revolution, the action was in building
> cars. In the deployment phase, the action shifted to the app layer: the
> highway system, shipping, suburbanization, big box retail, etc.
>
> This pattern is repeating itself in the computing/internet revolution.
> Most of the successful startups in the 90s built core infrastructure (e.g.
> optical switching) whereas most of the successful startups since then built
> applications on top of that infrastructure (e.g. search). The next phase
> should see startups higher in the stack. According to historical patterns,
> these would be ones that require deeper cultural change or deeper
> integration into existing industries.
>
> Some questions to consider:
>
> - What industries are the best candidates for the next phase of
> deployment? The likely candidates are the information-intensive
> mega-industries that have been only superficially affected by the internet
> thus far: education, healthcare, and finance. Note that deployment doesn’t
> just mean creating, say, a healthcare or education app. It means
> refactoring an industry into its “optimal structure” – what the industry
> would look like if rebuilt from scratch using the new technology.
>
> - How long will this deployment period last? Most people – at least in the
> tech industry – think it’s just getting started. From the inside, it looks
> like one big revolution with lots of smaller, internal revolutions (PC,
> internet, mobile, etc). Each smaller revolution extends the duration and
> impact of the core revolution.
>
> - Where will this innovation take place? The historical pattern suggests
> it will become more geographically diffuse over time. Detroit was the main
> beneficiary of the first part of the automobile revolution. Lots of other
> places benefited from the second part. This is the main reason to be
> bullish on ”application layer” cities like New York and LA. It is also
> suggests that entrepreneurs will increasingly have multi-disciplinary
> expertise.
>
>  --
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-- 
Ryan Tanaka
Ph.D, Historical Musicology at USC

http://ryangtanaka.com - Scholarship, music, entrepreneurship.

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