See a need, fill a need
A visit to salon.com after quite a while got me this interesting article : The world in the iPod. The writer talks about how chip fabrication units in China are taking away business from American units. There is talk of a "Golden Triangle" : Architecture in the US, Coding/design in India, Fabrication/Assembly in China.
Unfortunately, the conclusion that he comes to seems wrong :
This shift has some people very worried -- and they are not just out-of-work engineers. They fear that advanced R&D follows the physical location of production. If you are a cutting-edge engineer interested in working with innovative new techniques for chip manufacturing, you will be drawn not to Silicon Valley but to the scores of brand new fabs being built in Asia.
The bit in bold (emphasis mine) is the core of the argument, and it is totally wrong. The correct version would be : Advanced R&D follows markets, not production. It's the old principle of "see a need, fill a need" that drives the creation of any successful businesses.
So, for example, the only sort-of successful products made in India are the myriad banking solutions which are deployed all over Indian banks : because those banks were in a position to buy the software and be immediately benefitted by its installation.
What does it mean for us, the Indian programmers? It gives us a vague timeline for when a successful product market can be created here. If we look over what kinds of products would do well here, we see that consumer electronics - especially mobile phones - is the one burgeoning field - far more than any software industry. Today if you write a little app that helps/entertains the Indian mobile phone user, you'll have a winner on your hands. Note the meteoric rise of the "SMS your entries to 8888" type money-making schemes. Note the dozens of ringtone sellers. Write a codec that'll show amazing video on a mobile phone and see the queue of serive providers at your doorstep.
The only part of the software industry that seems to be doing well in India is the Educational software area. Every large bookstore has a shelf full of these CDs now.
But try to make a high-performance Email Server or office suite here. See whether anyone at all is interested. Unless it's something dramatically suitable for the Indian market, it won't sell. The computer software industry in India lives off the US and European markets, not the Indian.
Even though so-called product companies are coming up in India, the software products they make are built for the US markets. Those companies can get wide-based support only if there is a local market - even if niche - for the products. This requires higher computer penetration, mainly.
The good part is that all this is already happening - more and more computers are being sold, and more and more industries are getting interested in computerized solutions for their business practices. It's a matter of time.
Unfortunately, the conclusion that he comes to seems wrong :
This shift has some people very worried -- and they are not just out-of-work engineers. They fear that advanced R&D follows the physical location of production. If you are a cutting-edge engineer interested in working with innovative new techniques for chip manufacturing, you will be drawn not to Silicon Valley but to the scores of brand new fabs being built in Asia.
The bit in bold (emphasis mine) is the core of the argument, and it is totally wrong. The correct version would be : Advanced R&D follows markets, not production. It's the old principle of "see a need, fill a need" that drives the creation of any successful businesses.
So, for example, the only sort-of successful products made in India are the myriad banking solutions which are deployed all over Indian banks : because those banks were in a position to buy the software and be immediately benefitted by its installation.
What does it mean for us, the Indian programmers? It gives us a vague timeline for when a successful product market can be created here. If we look over what kinds of products would do well here, we see that consumer electronics - especially mobile phones - is the one burgeoning field - far more than any software industry. Today if you write a little app that helps/entertains the Indian mobile phone user, you'll have a winner on your hands. Note the meteoric rise of the "SMS your entries to 8888" type money-making schemes. Note the dozens of ringtone sellers. Write a codec that'll show amazing video on a mobile phone and see the queue of serive providers at your doorstep.
The only part of the software industry that seems to be doing well in India is the Educational software area. Every large bookstore has a shelf full of these CDs now.
But try to make a high-performance Email Server or office suite here. See whether anyone at all is interested. Unless it's something dramatically suitable for the Indian market, it won't sell. The computer software industry in India lives off the US and European markets, not the Indian.
Even though so-called product companies are coming up in India, the software products they make are built for the US markets. Those companies can get wide-based support only if there is a local market - even if niche - for the products. This requires higher computer penetration, mainly.
The good part is that all this is already happening - more and more computers are being sold, and more and more industries are getting interested in computerized solutions for their business practices. It's a matter of time.
posted by Sudarshan | 7:37 AM
2 Comments:
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