Monday, March 5, 2012

Bigger than you think

The brave new world of tablets will change business. It will change not just business but the way that we do business.

Managers like to think that they make decisions that drive technology. And they do, to an extent. They buy technologies that make their businesses more efficient and more capable.

But the arrow points both ways. Not only does business drive technology, but technology drives business.

PCs changed the way we do business: In the "Mad Men" world of the 1950s business were run with typewriters, filing cabinets, secretaries; now we run businesses with desktop PCs, servers, and IT support teams.

Managers may like to think that they were in charge of that transition, but much of it was forced upon business managers. Typewriter manufacturers went out of business, filing cabinets became "old-fashioned", and secretaries became luxuries reserved for the uppermost managers. Businesses had to adopt PCs because other businesses were using them, and because previous technologies were expensive. Businesses had little choice in the matter.

The internet and the world wide web changed the way we do business: In the pre-web era companies communicated with customers by letter, phone, possibly e-mail, and in person. The web era allowed companies to communicate with web pages. Customers select their purchases without assistance from salespeople (or telephone order operators). Businesses had to adopt the web because other businesses adopted the web and customers expected it. Businesses had little choice in the matter.

Tablet computing and cloud computing will become big, for individuals and businesses. Businesses will adopt them, because they have little choice in the matter.

Individuals will stop buying desktops and start buying tablets (if they already have not done so). Most PC applications are poorly suited for the individual and home user: no one really needs an office suite with word processing and spreadsheets, and certainly not presentation software. Individuals want Facebook, Twitter, and yes, Angry Birds. They will want smartphone apps and tablet apps for banking and shopping. Businesses that provide these apps will thrive; businesses that don't will see sales suffer.

Businesses will stop buying desktops and start buying tablets because PC manufacturers will stop selling PCs. Or they will allow workers to bring tablets from home, reducing their outlays to zero. Changing to tablets will cause confusion and change for businesses, but it will not drive businesses out of existence.

The shift from desktop PCs to tablets will cause businesses and governments to change their organization. Commercial and government entities have organized their information around spreadsheets, documents, and presentations. But these organizations do not have to organize themselves that way. In the pre-PC era, they organized themselves around weekly and monthly reports from the mainframe. In the post-PC era, they will organize themselves around cloud-based services and tablet-based apps that present data in real-time.

Companies long ago outsourced non-core tasks such as payroll, the generation of electricity, and the production of paper. With tablets and cloud, they can focus their core processes and on continue to outsource non-core tasks. IT support is a likely candidate for outsourcing, as is Human Resource administration.

New companies will form to offer new forms of corporate support. (IT support and Human Resource administration are two areas that come to mind.) These new companies will offer services to other companies, much like web services offer services to other web applications.

Outsourcing is not the only change. Just as PCs allowed large companies to eliminate jobs (such as secretaries), tablets and cloud will allow companies to eliminate more jobs. I suspect that companies will keep the jobs that require creativity and outsource the jobs that consist of rote tasks. The remaining jobs will be closely tied to the performance of the company's core processes.

The brave new world of tablet computing will be different from the current world. I think it will be a better world, with clearer focus on core competencies and "value added". Some folks may find the transition uncomfortable; others will thrive.

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