Software: the Future of the Tech Industry
As we have seen in Asian markets, particularly Japan and Korea, software has systematically been taking over areas that traditionally have been controlled by hardware manufacturers and developers. Software, in fact, has started to take over many other markets, from finance to entertainment. Today, more venture capitalists are looking for start-ups with innovative software opportunities, especially when the software they provide helps to eat into the profits or market of another industry.
This trend may also help Japan, the US and Western Europe return to the summit of manufacturing prowess. While manufacturing has shifted to other markets due to lower labor costs and direct access to energy, software helps keep labor costs down, which will have an important effect on these regions’ future manufacturing efforts.
How the rise of software affects venture capitalism and new tech businesses
While, traditionally, venture capitalists have focused on the people in a company, ideas and market share, today it is all about innovation. The rise of software has caused the tech sector to evolve rapidly. Breakthroughs are measured in days and hours and an innovative idea has the potential to penetrate completely untapped markets. Entrepreneurs today have many opportunities to use software for purposes that had never been thought of before!
Today, the tech industry is basically becoming the software industry, due to almost everything moving from hardware to software. From cloud storage to numerous devices becoming software services, and the increase in mobile apps, there is a clear trend – not even limited to technology. From entertainment to finance, software is becoming an important, systemic component of almost all major human endeavors. Simply integrating online functionality into industries traditionally handled offline has given entrepreneurs almost endless room for innovation, meaning more investment opportunities for savvy venture capitalists.
The evolving state of technology and how Japan paved the way
From network virtualization to mobile apps and innovative uses for social media, there is no question that the Asian market has been paving the way in technological breakthroughs. In particular, Japan’s technological infrastructure has made it an ideal playground for entrepreneurs with new ideas. However, there are several difficulties specific to the Japanese market that may make it more difficult than normal for start-ups:
- Tech start-ups in Japan may be surprised by the lack of venture capital, especially in comparison with environments like Silicon Valley, where venture capital is relatively plentiful for entrepreneurs with an innovative idea.
- The lack of a mentorship culture means that many start-ups may struggle initially to find ways to gain support from other companies in the field.
However, entrepreneurs with the capacity to overcome these two problems will find Japan an ideal market for new software ideas.
Fortunately for Japan, their tech market has much more in common with Europe and the United States than with China and Taiwan. The key to future technological growth in the Japanese market will be software innovation and the successful harnessing of renewable, cheaper energy sources. One possible breakthrough is the application of 3-D printing to manufacturing. The application of this innovative technology, already beginning in certain parts of Japan, combined with software developments that have been industry norms for years, may result in a dramatic resurgence of the Japanese tech and manufacturing market in the next decade.
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About the Guest Author:
Nida Rasheed is a freelance writer and owner of an outsourcing company, Nida often finds herself wanting to write about the subjects that are closest to her heart. She lives in Islamabad, Pakistan and can be found on Twitter @nidarasheed.
