| Dynamic markets create opportunity | | | | were based on the laws of scarcity, where you have |
| Markets create energy because they are dynamic. | | | | a limited amount of resources and value is based on |
| They are constantly evolving in response to changes | | | | how scarce they are - gold, oil, land, etc. The more |
| in the economic, political and technological | | | | you use up the resources the less energy you have. |
| environments. Understanding what causes a market | | | | A technology-based economy is based on the laws |
| to evolve helps you predict where opportunities will | | | | of abundance. According to Moore's law, there will |
| emerge; how fast they will develop, and when and | | | | always be cheaper resources tomorrow. This |
| whether mass adoption will occur. If you can capture | | | | ever-increasing pool of resources enables customers |
| this energy, you can use it to drive the sales process. | | | | to implement new business strategies. If it isn't |
| Dynamic systems create energy. If left unchecked, | | | | possible today, it will be possible tomorrow. Improved |
| any systemic change tends to grow. A snowball | | | | technology is constantly fueling the market, creating |
| rolling downhill gets bigger. Growth creates | | | | energy. |
| momentum. As the snowball grows bigger, it goes | | | | Furthermore, thanks to this simple formula |
| faster. Momentum creates energy. The faster the | | | | technological obsolescence is only a few months |
| snowball rolls; the bigger it gets; the harder it hits the | | | | away. Customers can never afford to sit still for fear |
| tree. Energy drives change. (Source The Fifth | | | | that a competitor will be able to leapfrog ahead of |
| Discipline) | | | | them if they adopt the next generation of |
| You can use the energy sources created by an | | | | technology faster. This anxiety is another powerful |
| evolving market to motivate prospects to buy your | | | | source of energy that you can use to drive your |
| solution. Persuading people to try out a new | | | | sales. |
| technology is an uphill battle. You have to invest a lot | | | | Metcalf's Law also has a powerful effect on |
| of your precious energy - sales resources, capital, | | | | developing markets. Robert Metcalf, the founder of |
| technical expertise, etc. - into convincing prospects | | | | 3Com, said "New technologies are valuable only if |
| they can benefit from using your technology to | | | | many people use them... the utility of a network |
| support their business. However, if you understand | | | | equates the square of the number of users. " This |
| what is driving market change- an increasingly mobile | | | | means that the more people use a technology, the |
| workforce, higher need for personal security, faster | | | | more useful it becomes. If there was only one fax |
| access to global markets - then you use the energy | | | | machine in the world, it wouldn't be useful. With two |
| created by the market to motivate prospects to | | | | fax machines you can send mail back and forth |
| buy. Thus, you need to invest less of your own | | | | faster and cheaper than if you send it through the |
| resources and you can sell more productively and | | | | post office. With 2,000,000 fax machines, you never |
| efficiently. | | | | have to wait in line at the post office again. |
| Technology markets create abundance. | | | | According to Metcalf a technology's usefulness equals |
| There are two laws that explain why | | | | the number of users squared. If two people use a |
| technology-enabled markets generate extraordinary | | | | fax it is four times easier than using the postal |
| amounts of energy. | | | | system. If 20 people use the fax machine, it is 400 |
| 1. Moore's Law predicts that technology is going to | | | | times easier. This creates a geometric increase in the |
| improve in the future and cost less. | | | | technology's utility, which is just another way of |
| 2 Metcalf's Law states that technologies become | | | | saying why customers would want to buy it. So if 2 |
| more useful as more people use them. | | | | people want to buy a fax machine today; 4 people |
| The combination of these two laws creates an | | | | will want to buy it tomorrow; 16 people will want to |
| economy of abundance that is unique to technology | | | | buy it the day after tomorrow; 256 people will want |
| markets. As Moore's Law predicts an endless supply | | | | to buy it next week, and 2,147,483,648 will want to |
| of ever-increasing resources and Metcalf's Law | | | | buy it by the end of the month. That is a lot of |
| promises that innovations will be quickly adopted, the | | | | potential customers lining up to buy your product, |
| nature of the economy changes. | | | | which is what market energy is all about. |
| Gordon Moore, the founder of Intel, said, "Every 18 | | | | Abundance creates demand for your technology. |
| months processing power doubles while the cost | | | | Since technology markets create abundance they are |
| holds constant." The implications of Moore's Law are | | | | not subject to the constraints of scarcity. They have |
| that every 18 months technology is going to cost | | | | unlimited growth potential and consequently unlimited |
| half as much and be twice as powerful. Moore's Law | | | | potential to create wealth. |
| has held true for over 30 years. Previous economies | | | | |