Software is Eating the World: Embracing Abundance and the Importance of Attention

Software is Eating the World: Embracing Abundance and the Importance of Attention

In a world that thrives on scarcity, technology has revolutionized our lives by increasing access to limited resources. With the help of software, we can now accomplish more with less, allowing a larger population to enjoy various commodities at a fraction of the cost. However, this abundance has given rise to new forms of emerging scarcity, which are often difficult to predict in advance. While supply constraints were once paramount, the advent of the internet has shifted the focus towards demand, making attention and loyalty the scarcest resources.

Ben Thompson's concept of aggregation theory perfectly encapsulates this transition. Before the internet, capturing profits relied on controlling supply. However, in the post-internet era, the key to profitability lies in aggregating demand. This has led to the unbundling and rebuilding of industries across the board, as software continues to influence and reshape traditional sectors. We have witnessed the unbundling of songs from CDs, only to see them being rebundled into curated playlists. Similarly, articles have been unbundled from newspapers and rebundled into social media feeds, highlighting the importance of curation in the digital age.

While the impact of software can be felt in various industries, it is particularly transformative in sectors such as education, housing, and healthcare. These areas, among others, are ripe for disruption, and technology will undoubtedly play a pivotal role in shaping their future. In a world of bits, barriers to communication, product discovery, and work are significantly reduced, making demand the fundamental variable. Capital and production are no longer the scarce resources; attention and loyalty take center stage.

However, as we embrace the digital revolution, it is crucial to acknowledge the nuances and challenges that come with it. Recent research suggests that people read news differently on mobile devices compared to desktops, with desktop usage often resulting in better attention and comprehension. While mobile devices increase access to news, they do not necessarily enhance attention to news. Reading on a desktop offers a faster and more efficient experience, allowing for a deeper understanding and retention of information. This insight highlights the importance of prioritizing desktop optimization when it comes to news consumption.

The rush to monetize mobile news delivery may inadvertently undermine its democratic value. As economic value is built into mobile news, the costs of information processing on these devices may increase, potentially hindering accessibility for certain demographics. It is crucial for news organizations to strike a balance between monetization and maintaining the democratic value of news. While mobile devices provide convenience and accessibility, it is essential to ensure that the quality of information is not compromised.

In light of these observations, here are three actionable pieces of advice to navigate the evolving landscape of software-driven abundance:

1. Prioritize desktop optimization: While mobile devices are prevalent, desktop usage still offers a superior reading experience. Focus on optimizing content for desktop consumption to enhance attention and comprehension.

2. Embrace curation: As industries continue to unbundle and rebuild, curation becomes increasingly important. Curate content to cater to the demands of your target audience, ensuring that they receive the most relevant and engaging information.

3. Balance monetization and democratic value: While monetization is crucial for sustainability, it should not come at the expense of democratic values. Strive to find a balance that allows for economic viability while ensuring accessibility and quality of information.

In conclusion, software's influence on the world cannot be understated. It has disrupted traditional industries, ushering in a new era of abundance. As we navigate this landscape, it is essential to recognize the shifting dynamics of supply and demand. Attention and loyalty have become the scarcest resources, and optimizing for desktop consumption, embracing curation, and finding the delicate balance between monetization and democratic value are vital steps in harnessing the power of software-driven abundance.