Buying Systems, Not Products

IT & Corporate Future

As the computer revolution progresses company’s are less dependent on the quality of their personal and more dependent on the quality of their systems. As we move toward automating information workers, this will become more apparent. Companies won’t be nearly as dependent on people doing mistake free, thoughtful work. A bank won’t make a bad loan because a loan officer wasn’t really paying attention and approved a loan they should’ve denied. Instead, the bank will rely on a system to make most decisions, if the system isn’t very good the company won’t be very competitive.

When we deal with a company we are not really dealing with a group of people and a product, but an IT system. Buying products and services also means you are buying an IT service, you just don’t realize it. When you buy something for Amazon you are also buying their entire IT system, from logistics to online storefront. Their value as a retailer is not just in the products they sell, and they don’t have any people that you interact with. The reason we buy from Amazon is because their IT systems are so good at letting us get what we want.

Machine learning and the automation it will create it the natural evolution of this. Automation really began in the Industrial Revolution, when you were buying a product you were also buying into their mechanical system for the production of that product, this sounds pretty Rule 11. Simply put, automation will simply accelerate what we have been seeing for hundreds of years.

Every old idea will be proposed again with a different name and
        a different presentation, regardless of whether it works.

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