Although the ancients could feel the wind in their face as they paddled their small boats and later rowed larger vessels, it took millennia to develop the technology of the sail. Even though they witnessed steam coming from water held over fire, the technology to harness that power took many centuries to develop. Each advance created a radically new world.
There have been five major technological events in the last 250 years that have totally changed the way we live. Each destroyed old business models and created vast opportunities for those willing to change. What can we learn from the past and what new opportunities await you?
Carlota Perez, author of “Technological Revolutions and Financial Capital,” says each major technological event greatly enhanced the quality of life for all by making the delivery of information and products or services faster and cheaper.
Perez, a visiting scholar at the London School of Economics and research associate at Cambridge Finance, states that our most recent technological revolution began in 1971 as Intel announced the microprocessor. That birthed the age of information and telecommunications. It has already produced new industries, including microelectronics, computer software and digitized telecommunications. Everything from satellite tracking of packages and trucks to digital products like text messaging and e-books are bringing new ways to capture and communicate information and drive down costs ”“ all because of Intel”™s microprocessor.
Although new opportunities and industries are born, many others are threatened or perish. The traditional publishing industry and postal service as well as the music and television industries continue to struggle to maintain market share.
What Perez calls “the big bang” of the industrial revolution began in 1771, when Arkwright”™s mill opened in Cromford, England: “The industrial revolution, by creating much cheaper goods, led to a growth in trade, which fostered rapid development of roads, bridges, ports and canals.” But usage of water wheels to power the new machinery began to diminish in 1829 when “The Rocket” steam engine won the Liverpool-Manchester contest. That ignited the age of steam and railways. New companies were born to build railways and utilize steam power by many industries, including textiles. Telegraph lines crossed continents by following railroads and shipping ports were developed to accommodate larger and faster steamships.
When Carnegie opened his Bessemer steel plant in 1875, the age of steel, electricity and heavy engineering began. Cheap steel allowed for the construction and deployment of steel steamships, taller buildings, more efficient and reliable steam engines and stronger rails on which the trains could travel. Commerce increased as canals, bridges and tunnels were built to speed up shipping.
In 1908, when the first car rolled off the assembly line, the age of mass production and oil began. This led to cars that the masses could afford and the development of far more efficient internal combustion engines that powered trucks, tractors, ships and airplanes. New highways, ports and airports followed. Factories produced everything from food to clothing at prices that everyone could afford.
Where will the technology that started with Intel”™s microprocessor of 1971 ultimately lead us? Perez says, “It always leads to the massive replacement of one set of technologies by another, either by substitution or through modernization of the existing equipment, processes and ways of operation.” Seize the opportunities that always exist as technology continues to create new and better worlds.
Questions for discussion:
- How will you replace or modernize your existing operation?
- What will you do to prepare for future revolutions sure to follow?
Joe Murtagh, The DreamSpeaker, is an international motivational speaker, meeting facilitator and business trainer. For questions or comments email Joe@TheDreamSpeaker.com, visit TheDreamSpeaker.com or call 1-800-239-0058.
