Water and Economics

A long time ago (well, maybe a very long time ago) a high school teacher of mine argued that water was the most significant force on the planet. It carved valleys, eroded mountains, and the freeze-thaw cycle is practically unstoppable. Putting aside the arguments for nuclear and electrometric forces, I’ll argue that economics is actually the most significant force we face. Whether consciously or subconsciously, we make decisions every day based on our perception of value. Items that deliver value survive while items that do not disappear. How entrenched or “sticky” a product is may delay the inevitable, but in the long run the steady and unyielding pressure of economics shapes the products we buy and keep. Past technology decisions may not have followed the rules of economics, and we’ve all heard the phrase “no one ever got fired buying IBM” uttered as a thin excuse for an irrational decision made in favor of job security. But when was the last time you heard that phrase? What got me thinking about this was a conversation with a client who was evaluating CRM solutions. The obvious top player in the market was also the most expensive, and our client was not pleased with the cost when compared to the value provided by the alternatives. The economic decision was winning out over the “safe bet” decision. That’s great for the health of the technology industry, and in the long run, the strong products will survive while the new innovative products will have room to show their worth.