Abundance or constraints, which drives creativity
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Abundance or constraints, which drives creativity

OpenAI, NVidia and Deepseek, all have created inflection points in AI technologies in the recent past. But when OpenAI and NVidia created the buzz, the market valuation jumped (with no clarity on how long it will last?), when Deepseek created the buzz, it created jittered. Just about a week back, I wrote this post on the results of hardware companies and the downstream companies - https://www.dhirubhai.net/posts/jmadhanraj_nvidia-supplier-sk-hynix-posts-record-profit-activity-7288169888622223360-Q-TX?utm_source=share&utm_medium=member_desktop

It is a common understanding that, in the past 30-40 years that abundance of resources, have enabled creativity and building of great products, giving competitive advantage and further higher revenue, profits and market valuation.

Lack of access to the required (was thought as equal to abundant) resources, created entry barriers for lot of other companies to enter the space. As it is widely stated, "Necessity is the mother of all inventions", time and again it has been proven that products created under constraints starting in a very frugal manner have displaced the big animal. There are few examples,

  1. UPI & RuPay - Payment system in India, unique engineering with widely available technology and ease of use with everyday device (smart phone) reduced market share of Visa and Mastercard in the debit card market and now taking on the credit card market. (RuPay dominates India's debit card market but lags in credit cards, ET BFSI) There could be argument of government support (Every government supports like Inflation reduction act in US) but without frugal approach can Visa/ Master Card create a similar product, if just the level of support was offered?
  2. SpaceX - NASA had access to large budget and was building rockets, but SpaceX creates better rockets on much lower R&D budget and launch cost, again frugal mindset.

Building products based on abundant resources has been extremely damaging to the planet earth, like exploiting the natural resources of minerals, ore, oil & gas. Creators of products based on abundance of resources did not look at longevity of products but short-term profits, by encouraging over consumption. Generally, these products tend to create new markets starting with extravagance and push downwards towards necessity. [even it was needed or not]

Product created on constraints situation (are creating products for unmet essential needs mostly) has been extremely cautious of using any resource over the minimum required limit, and this gets embedded in the DNA of the product design and engineering teams. These products for necessity and so are used very judiciously by the consumers, avoiding excessive resource wastage.

Capitalist model built on abundance of resources, seems to be shaken. As those with frugal resources, in the interest of meeting their needs are creating products with lower resource usage with innovative engineering approaches. These products are economical to produce, better value for money for consumers and have less ecological footprint. This will direct consumers of these new products, putting the businesses of those built based on abundant resources at risk.

So is creativity best achieved under constraints or abundance and which of them will have long time sustained value creation across the spectrum. I tend to think being frugal is the right way.

Sagar Venkatesh

Cloud Solutions | DevOps | AiOps | Site Reliability Engineering | Platform Engineering

1 个月

Reminds me of that scene from Iron Man where they attempt to build the suit in a well funded lab and the scientists say it’s impossible to which Obadiah Stane retorts - “Tony Stark was able to build this in a cave with a box of scraps”!

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