While doing our Saturday routine this morning, two colleagues of mine started a discussion which at first, I wasn't interested in but then, as they progressed, I became fully both interested in and part of the discussion.
While none of them are Techies rather fullstack Nkwo Nnewi business men, they so much understood the power of innovation and disruption.
In the heat of the discussion, one asked, "Pascal, do you think there be more rich or poor people in the future?"
I gave him a very sharp answer but decided to extend it just in case it might interest you.
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About five thousand years ago, people noticed that smelting copper with tin produces bronze.
Bronze was harder and more durable than all other metals of the time. This quickly became a significant technological advantage over stone weapons.
This started the #BronzeAge.
For 2,000 years, Empires that had access to bronze weapons ruled the world... until the next technological revolution happened.
This started the #IronAge.
Iron is harder, stronger than bronze, plus it’s a bendable metal.
This discovery changed humanity... again.
Soon, civilizations that possessed iron dominated the earth, and the manufacturing secrets to making iron represented a significant competitive advantage.
For the first time in history, #knowledge became a critical factor in achieving global domination.
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So I told them, Sadly, there will be more poor people.
Why?
Because of the growing technological divide.
The internet has changed everything.
Today we have a new economy. It’s the #InformationAge — an economy based on data and knowledge. Everything has changed, well, except people and our educational system.
In view of the mentioned, there are plenty lessons to keep in mind:
1. Technological progress always leads to disruption.
Disruption causes massive shifts in the competitive advantage people have over others.
2. Technology is continually advancing, so, these competitive advantages are always temporary!
3. As knowledge spreads, technologies are not a competitive advantage anymore. Technologies become democratized.
The democratization of technology brings huge improvements to the masses, raising the quality of life of millions of people.
When something is available to millions, it becomes a commodity. Commodities ONLY differentiate by price.
When we compete by price, the competitive focus turns to efficiencies. It becomes a race to “the bottom.” This is happening today... Automations replacing people in the search for most efficient.
Those who rely on work are losing quickly the efficiency battle.
Leverage is needed! Leverage is ONLY found in business systems and processes.
Result?
People at the top 0.1% level are making over 188 times the income of the bottom 90 percent. This won't stop. In fact it will accelerate as technology advances. People must learn to change the way they work using leverage to maximize their time, money and effort.
It's time to #BeBusinessAndStreetSmart.