Academic journal article ABA Banking Journal

Death, Taxes and Moore's Law

Academic journal article ABA Banking Journal

Death, Taxes and Moore's Law

Article excerpt

There comes a time when it is appropriate to update an old adage. It used to be true there were only two things we could be certain of in life, Death and Taxes. But it's the 21st century and because of Moore's Law, which states "Computing power doubles every 18 months", it's long past the time to upgrade this old saying to "Death, Taxes and Moore's Law".

Moore's Law dictates that computer and telecommunication technology will continually get more powerful, faster, cheaper, more reliable, more accessible, smaller, cooler (in more ways than one), better and more convenient.

"So what?" the jaded cynic responds, "This is all old news. It doesn't really affect my business." When you hear those words gentle reader, congratulations, you've finally found a way to speak with the walking dead.

Technological progress does many things, but at the heart of everything it does this; Technological progress collapses constraints.

This collapse of constraints has two immediate implications for all organizations.

1) What technologies would you like to implement in your organization today, but can't because of some limitation? i.e. cost, speed, size, capacity. Chances are very good that within the next five years, the natural advance of technology will collapse those constraints.

2) Solutions implemented in the past are no longer the best solutions possible. Technological progress turns another saying, "If it ain't broke don't fix it!" into a trap of inertial complacency. Old solutions become anchors weighing down levels of productivity and efficiency.

Turning these implications into opportunities depends on our ability to distill and describe, as succinctly as possible, the collapsed constraints, and then to identify where in our organization, or business processes, we can exploit these new found abilities.

As a useful example, consider the Internet. From this perspective of collapsed constraints, what does the Internet offer?

i) The cost of transmitting information is collapsed to almost zero.

ii) The time it takes to transmit information is collapsed to almost zero. …

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