Building Technology vs Solving Problems

 Who here is building technology? Who here is solving problems? Those are two very different questions, and definitely not synonymous.

I believe innovation occurs following four basic steps:

1. Identify Real Problem - real challenge that a group is facing
2. Define Practical Solution - simple way to fill that need
3. Find Appropriate Technology - appropriate technology based on users needs
4. Leads To Profit - since you are filling a real need you will find ways to profit

In practise, what order do you think most companies follow?

1. No Real Problem - most companies haven't asked what problem they are solving
2. No Practical Solution - you can't have a solution unless you have a problem
3. Build New Technology - building technology without knowing what they are trying to solve
4. Struggle To Profit - invent a market and try to find users that don't exist

If you are providing a practical solution to a real problem, users will come to you and be eager to pay. Instead most companies are focussed on building another social network, creating another photo sharing app, making another groupon clone but none of those are solving a problem.

Innovation happens at the intersect of disciplines. Software by itself isn't very interesting, but applying that technology is where real innovation happens.

Unfortunately, most software companies are not intersecting with other disciplines, and instead building software for an elusive consumer market. And as a result of not having a clearly defined problem, most of these companies are lacking in innovation and struggling to generate revenue.