Technology disruption: The revolution happened while we weren’t lookingPosted: October 6, 2015
Did you ever stop to think how the internet and the world-wide web changed our lives without our noticing it? If you’re a Millennial, you didn’t notice it because it was always there. Smartphones, texts, snapchat, all that. For older generations, an earthquake of technology happened in the late 1990s and 2000s. We love it and most of us wouldn’t give it up for anything. And that’s because as consumers, we love everything new and shiny.
But for businesses—of all kinds—the internet/web revolution came as some kind of surprise and upset many business models. Look at what happened to newspapers, book publishing, telecommunications, music, movies, television, retailing, real estate and other industries that weren’t paying attention until their business models imploded.
Newspapers still haven’t recovered from the revolution in their business model. Most of them ignored the web for the first few years, hoping it would be a novelty and go away. It’s really only in this decade that newspapers have figured out that they have to change the way they do business. Some newspapers and magazines are relatively successful, using a pay wall and retaining digital subscribers. Many are floundering, laying off staff, cutting back publishing frequency. Only the older generations read newspapers at all, so newspapers will die eventually.
The news revolution has affected TV and radio too, although not so drastically yet.
News outlets now are being advised on how to make money in other ways, through memberships, events and beating ad blockers.
Book publishing also is still floundering, figuring out how to manage and make money from e-books. Amazon, the giant that started this revolution, eventually will get so big that it will fail too and be replaced by something that a 10-year-old kid in Schenectady is dreaming up now. (I think I owe an HT to someone for that kid-in-Schenectady idea, but I don’t remember who.)
The music industry (and TV and films to a lesser extent) also are suffering from the internet notion that all content should be free and available on our terms. CDs aren’t selling much, even though vinyl is making a retro comeback. We want to listen to music on something we carry around, even if the sound quality is poor. And we want to watch TV and movies on our terms, not when the network or theater happens to schedule them.
Artists, writers and photographers are impacted by this content-should-be-free phenomenon. If no one wants to pay for content, then the publishers of content don’t want to pay for content creation. So, goodbye freelance businesses.
This internet/web revolution didn’t just happen overnight. Decades of technological development went into this phenomenon, but businesses were caught off guard. Even though most of them had some kind of computer or IT departments, the message of the coming revolution wasn’t acknowledged, or passed on. (Another factor in the revolution was the microchip, which enabled the miniaturization of our devices. It was introduced in 1959 but no one was paying attention to that either.)
The revolution happened while everyone was looking the other way.
- The modem was invented in 1958 at Bell Labs and the router (an Interface Message Processor) in 1967.
- In 1972, a guy named Ray Tomlinson invented email—a way to send messages across a network. It was his idea to use the “@” sign as the email standard address: user@host.
- In 1974, Elizabeth “Jake” Feinler led the team at SRI International’s Network Information Center. Among other things, they created the Host Naming Registry and the primary domain names we use today: .com, .gov, .edu, .org, .net, .mil.
- In 1974, Vint Cerf and Robert Kahn coined the term “internet.”
- Most importantly, In 1977, Lawrence Landweber created the Computer Science Network, a network for US university and industrial computer research groups. By 1984, more than 180 university, industry and government computer science departments were participating in CSNET.
In the middle 1980s, I was working on my first Mac at home but it wasn’t connected to anything. At work, no computer because the Wang word-processing machines were only for secretaries. My son was a graduate student finishing his PhD in economics and talked about getting “email” from his advisers. “Email,” I said. “What’s that?”
Then in 1989, when AOL started its first online service, I got email too. It was that pitifully slow telephone dialup access, but it was still a thrill to hear “You’ve got mail!”
- Finally (and skipping over many key technological advances), in 1989, Tim Berners-Lee created the World Wide Web and Robert Cailliau developed the first web browser for the Macintosh operating system. This is when business should have started paying attention and figuring out how their companies could take advantage of this new web thing.
- And all this happened years after the US Defense Department invented ARPA in 1958 and ASCii in 1963 so that machines from different makers could talk to each other. ARPAnet, the actual network, was initiated in 1966.
I owe my superficial surf of technology history to the Internet Hall of Fame’s internet timeline. Check it out here. http://www.internethalloffame.org/internet-history/timeline There’s also this http://www.pewinternet.org/2014/03/11/world-wide-web-timeline/ and this http://www.livescience.com/20727-internet-history.html
I decided to write this essay because I felt like venting. How could all these revolutions have happened to industries so important to me (newspapers, books, music, movies) without the industries being aware and preparing for the revolution? Big companies all have prestigious “strategy” officers and departments. What were they thinking about in the 1980s and 1990s? Not much, apparently. Or they were listening to big-name management consultants who probably were talking gobbledygook about customer intelligence, global advantage and supply chain management. I know whereof I speak on that one, because I used to work with those guys.
The theater review I’m working on now is about a fascinating play titled The (curious case of the) Watson Intelligence. It’s a time-tripping play full of ideas and technology. At one point, a character says, “we’re at this critical moment in our society when technology is developing more rapidly than our social and political infrastructures can keep up with.”
That is one of the problems.
All the photos above taken by Nancy Bishop in her own home, site of prerevolutionary media and all the other kind too.