5 Categories of Software Value
Working theory - We can use 5 categories to break down how software creates value. They could probably applied to technologies as a whole, but this is a reflection of my experienced so far and interests at the moment (software & the web).
Productivity
Software increases automation, distribution, parallelization, systematization, network effects and more, which all increase the productivity of making or maintaining things.
It’s easier to _______ with software.
Certainty
We want to understand our current world and how we got here. Software assists this though systematization, recording, logging, data aggregation and storage.
We know what’s happened and what we have now.
Ambiguity
Making decisions about the future is difficult. Software helps us simulate and map out possible paths, risks and tradeoffs
We can make better informed decisions
Access
Shared understanding, opportunity, and optionality can all be positively impacted by software with increased distribution (mostly the internet).
It’s easier to learn, use, contribute and distribute with software
Connection
Related to access, software enables us to connect by making collaboration, community, and relationships more available.
We can work together and connect with others
So What?
I’m hoping categories like this will help to better understand of what “outstanding” software can mean. Both looking back on how things work today and identifying future opportunities.
Example - Music Synthesizer 🎹
As an example, let’s brainstorm a bit on the process of creating a synthesizer:
Productivity
- Circuit, PCB, CAD and other design software make creating the product much easier. We can think of these as providing tools, automation, libraries, templates, etc to the process
- Software accelerates manufacturing and translates designs between different systems to get the product built
- More things like parts supply, distribution, commerce have all been made easier with the use of software
Certainty
- Does the circuit work as intended? Software makes it easier to measure, compare options, validate and log results to answer this question.
- What’s the state of things? - Parts in stock, parts/products shipped, payments
Ambiguity
- We can simulate options with software
- What circuit design will meet the product requirements?
- If we change these values, what might happen?
- What should it look like?
- How should the components be arranged and connected on the circuit board?
- We can understand risks and tradeoffs
- How long are the parts likely to work under certain conditions?
Access
- Learning & Education - The internet provides easy, instant access to the right information we need to design and build the product
- Information & Resources - We can use shared + trusted component libraries in our designs
- Distribution - We can share a virtual version of our synth or open source the hardware designs to the world immediately
Connection
- Connect - Contribute to online communities, gather interest and develop connections around our synthesizer product
- Customers/Audience - we can find people across the world who are interested in the synthesizer
- Collaborate - We can work with others to develop and deliver the product, independent of time and location