How does technology evolve?

Economist and Harvard Professor Joseph Schumpeter coined the oxymoron, “Creative Destruction”. It refers to the process by which new products and services replace old ones.

Some observations:

1. Big Gains: Hugely successful innovations– the Smartphone, electricity, the Internet, medicine led to superior standards of living, increased per capita income, and convenience. eg. Zoom has made work-from-home much easier.

2. Innovation drives markets: Long-term trends suggest that markets are largely driven by innovation. Therefore, change is the only constant.

3. Companies are (quickly) replaced: Research from Innosight suggests that the average tenure of firms on the S&P 500 will shrink to 14 years by 2026, from 20 years in 1990. Reliance Jio’s expansion strategy demonstrates the constant need to evolve.

4. There’s two sides to the story: Entrepreneurs innovate and create value for themselves and stakeholders. The old-guards bear the brunt. Jobs are lost or changed. Optimistically, in the long-run, this creates new jobs that benefit society.

What technology changes have you seen?

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