5 Categories of Software Value

Working theory - We can use 5 categories to look at how software creates value. This is a reflection of my experienced and interests so far (software, hardware & the web) and am curious to see how far these apply, and where they might fall short.

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 can understand 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 informed decisions about the future

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 this will help to better understand what “outstanding” software can be. Both looking back on how things work today and identifying future opportunities.

Example 🎹

As an example, let’s brainstorm a bit on the process of building a musical instrument (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

  • Customers/Audience - we can find people across the world who are interested in the products
  • Collaborate - We can work with others to develop and deliver the product, independent of time and location
  • Connect - Contribute to online communities, gather interest and develop connections around our synthesizer product