(wow) Words Of Wonders Level 1768 Answers – I recently read two books that I would like to recommend, which got me thinking about how the IT industry has changed over the past 20 years. These books are The Great Convergence and Capitalism Without Capital.
First, I'll briefly describe these books, then look at some of the implications of their thesis for the global economy, and then turn to what it's meant for IT over the past 30 years. In particular, I was interested in why the DevRel position appeared and what it meant for IT in general.
(wow) Words Of Wonders Level 1768 Answers
The first industrial revolution (1820-1990) eliminated the need for physical proximity for the profitable exchange of goods (the “first chapter”). The result was a “great disparity” in wealth between nations as large manufacturing centers became the primary generators of wealth for countries that could benefit from “comparative advantage”. Baldwin also refers to this historic shift as the “globalization of local economies”: manufacturing microclusters (i.e. large factories) have grown significantly due to the ease of moving goods versus the difficulty of moving people and ideas. The big winners of this era were, for example, the steelmakers.
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Baldwin dates the “second version” of the cost of transferring ideas to 1990, and its importance rivals that of the original industrial revolution in terms of its impact on the world economy. The need for physical proximity for the flow of ideas and expertise has been removed due to massive changes in communication technologies. This is what Baldwin calls “globalized factories”. The big winners of this era are information hucksters like Google and Facebook.
To illustrate the significance of this shift, he cites some interesting facts I didn't know, as the share of rich nations' wealth in global wealth is now back to 1914 levels (and is declining), declining with the growth of the Internet.
The third industrial revolution in the cost of moving is yet to come. Relocating people to do their jobs is still expensive (think of a highly trained surgeon or a political leader, for example). huge limitation. because humans are conscious beings who need hotels, food and other guides to travel without inert materials. Baldwin suggests that change may be coming here and is already being felt in minor ways. He mentions telerobotics (e.g. remote surgery) or holographic conferences, which are currently too expensive (and possibly unreliable), but could become much cheaper than assistive technologies.
Between 1986 and 2007, global storage capacity grew by 23% per year, telecommunications by 28% and computing power by 58% per year
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This book is similar to the first book in that it looks at recent history and extrapolates its consequences. In this case, the intangible has become increasingly important to the economy in recent decades.
Understandably, this is relatively incontrovertible. While 100 years ago physical assets were crucial for any large company (e.g., steel giant, car plant, tool maker, oil company), today's largest companies include many that have primarily intangible assets. For example, in 2006, Microsoft's $250 billion market value consisted of just $10 billion in physical assets. And “only” $60 billion was in cash or financial instruments. The rest is intangible: brands, software, service capabilities, etc.
They also differ in another more specific way. Intangible assets are difficult to account for, which leads to some interesting accounting nuances. For example, if you are investing in a brand, it appears that the value of that investment cannot be converted to asset value in your corporate accounts. However, if you buy someone else's business and its value is partially intangible, it is written off as “goodwill” in the company's books. This has interesting consequences which will be discussed later.
GDP also has an ambiguous relationship with intangible assets. There are many types of intangibles that are not included in GDP calculations. If intangible investment and the manufacturing sector are increasingly becoming the norm, this may go some way to explaining why the G7 economies fare poorly compared to “developed” countries, which show strong year-on-year GDP growth.
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Some of the implications of these books are not surprising. Better communication has clearly increased the profitability of remote working and exacerbated existing trends to bypass significant parts of the value chain.
It is also clear that the most successful companies are increasingly trading their intangibles. The social network is an immaterial enterprise (and partly explains its fragility as an enterprise). The value of a car sharing company is almost entirely made up of intangible assets such as brands and software.
Even an old-fashioned heavy manufacturing company like Tesla has significant intangible value thanks to its branding and musky halo effect. This helps you trade well above raw production and sales figures and attracts the loyalty of key employees and customers.
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More clearly, these books suggest that these trends favor the easing of traditional work constraints. If you are not limited to working for a local factory owner due to your location, but can easily move your workforce anywhere in the world, then the power relationship between leader and leader has changed dramatically.
However, by the same token, your manager is no longer dependent on the physical location of the business than he is. Instead of actually owning a stationary factory and relying on local people to provide manpower, they can easily find work anywhere in the world, anywhere there is an internet connection.
The end result is an even more volatile employer-employee relationship than in the past. The success of this relationship will depend much more on leadership than on management, where management “tells people what to do”, where leadership “motivates people to achieve a goal”. In fact, the references to “leadership” instead of “management” in the Harvard Business Review show that the “leadership” discussion is moving much faster.
If ideas and skills are easily transferable, it will be more important to coordinate and use those skills. If skills are more mobile and in demand, companies will “tell people less and less what to do.” “Telling people what to do” is traditionally called “management”—think Taylor and his research on tempo and motion.
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If leadership (rather than management) is now at a premium, we would expect there are companies that would take this intangible and trade it for equity. And that's exactly what we see.
For example, small technical consultants are often used by larger companies because they have a focus on a specific area. This is despite the fact that these companies may not even make a profit or even promise to do so in the future. It is enough to have such credibility. In other words, its intangible value exceeds its book value.
Perhaps the most obvious example of this is virtualization giant VMWare which has bought various cloud companies in recent years. I will not comment on the specific profitability of any of these assets prior to the purchase, but suffice it to say that I have been advised that some of them have been offered offers which their owners have had a hard time turning down due to their book value…
All these things put together explain something that has fascinated me until recently: the expansion of the role of DevRel. I don't even know how to define it formally: “developer relations expert”, “developer relations manager” or what? This is usually called a “developer relations” role (hence “DevRel” for short) and is formally defined (via a quick Google search, natch) as “a marketing policy that prioritizes developer relations “. But it still doesn't make grammatical sense to say “I'm Developer Relations for X”.
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In any case, DevRel is a bridge between internal knowledge and external consumption of this value. In other words, this is the salesperson's role, albeit with a different orientation. DevRels often travel to demonstrate technical proficiency to potential clients (low level) or as traveling rock stars (high level) to demonstrate credibility or simply wow a client with star power.
This is similar to the old “pre-sales” role, but the twist is that the value DevRels brings is to demonstrate publicly validated credibility through conference speeches and social media followings, not to demonstrate that a business system can integrate your organization with . little effort in a few days as a proof of concept.
There are also some interesting parallels to traditional retailers. While the content was a semi-private Rolodex from an old vendor, DevRel has some value due to their profile's public validation status. Their public profile serves as a “proof of trust” system to determine their credibility (I have to mention the physical opposition to the “blockchain” here…).
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