Software Ate The World, But Not Only In The Way We Assumed

Is software eating the world? To a degree, yes. Even more compelling, however, is what’s been happening behind the scenes, beyond simply transferring manual processes or physical assets to the digital realm. The Agile techniques used to build software have become the preferred way to get things done. The era of Agile Everything is upon us.

Agile was originally conceived as a process for building more responsive software — as first articulated within the Agile Manifesto, which emphasizes working collaboratively, and recognizing the humanity of everyone involved. One of the most outstanding principles of the manifesto is to “build projects around motivated individuals. Give them the environment and support they need, and trust them to get the job done.”

In recent years, the Agile revolution has delivered instant, intimate, and frictionless value on a large scale, says Steve Denning, author of Reinventing Capitalism in the Digital Age. Agile thinking has spread well beyond the software shop, and means not only reorganizing the way business is done, but also thinking of it whole new ways.

This has been especially evident over the past five years, Denning says. And is part of an acceleration of an evolution that has been taking place for more than a decade. Here are some of the ways Agile thinking has reshaped our environment, as expressed by Denning and other thought leaders:

• Agile means less management: Agile thinking “instilled confidence in the possibility of democratic ways of managing,” Denning says. “Self-organizing teams were possible. It has shown how self-organizing teams can not only be fun and exciting places to work. They can also be much more efficient and effective than bureaucratic ways of working when they are closely focused on meeting unmet customer needs.”
• Agile accelerates technology introduction: Agile thinking has led to the democratization of AI, something we’re just starting to experience. Consider the fact that just a few years ago, “artificial intelligence was an obscure technology that few could understand or see its potential,” Denning says. “Today, with more than 100 million enthusiastic users have signed up for ChatGPT.”
• Agile helps build new businesses: Let’s look back, when this all began, a couple years before Marc Andreessen made his seminal observation on “Why Software is Eating the World.” That’s when New York Times columnist Tom Friedman noted the rise of the "DIY economy,” suggesting that its participants create value by assembling and delivering products and services via online services and networks. Collaborative tools, software development planforms, analytics services, video platforms, all became available, at the stroke of a key, instantaneously. Many of these services and components were and still are low-cost to no-cost, meaning that innovation can be performed on a wider scale at less cost. Business can be built overnight to meet immediate customer demands with resources grabbed off the internet, from clouds, and through APIs. Just as quickly, they can be reorganized to meet the next need.
• Agile changes economic approaches: With the unprecedented levels of connectedness now seen between people and organizations, old business thinking has been turned upside down. Subscription models — pay per month or per usage — has replaced outright ownership or upfront payments for goods and services. Many product and service costs are being reduced to zero due to digitization, opening doors to new market entrants and innovation, said Jeremy Rifkin, social activist, policy advisor and author of The Zero Marginal Cost Society, in a talk at CeBIT not long after Friedman’s and Andreessen’s observations. Digitization across the economy is driving down many costs of doing business to virtually zero. "By constantly using analytics, algorithms, and apps, we can dramatically increase our productivity every day. Ultimately, the shift is toward empowered consumers, who are increasingly adopting the tools and technologies to guide their own economic destinies.
• Agile means totally virtual workplaces: We saw it accelerate during the Covid era; companies moving to all-remote workplaces — and some staying that way. Agile thinking has intervened, with many business leaders growing comfortable and impressed with the performance of their all-remote workforces. “There are a few organizations who have done this quite successfully for some time because it fits with their unique needs,” says Amy Freshman, senior director of global human resources at ADP. “Their entire business from workflows and business processes to employee onboarding have all been built, or have been transformed. to support this way of working from the top down. This arrangement is not a fit for all, but we can expect more companies to lean in this direction with hybrid models and more flexibility.” “With our cloud-based workflow installed and our staff outfitted with robust laptops, we were a highly effective team delivering great results for our clients,” relates Ashley Dunn, principal at Dyer Brown and Associates.

Agile thinking has opened up many new doors to change, across many parts of the business spectrum. The coming months and years will only continue to deliver instant, intimate, and frictionless value.