Bits vs Atom!!

Wednesday. October 10, 2018 - 2 mins

Our nuclear bases still use CD/floppy disk. Our new fighter can’t even fly in the rain. Instead of going to mars, we have invaded the Middle East. We wanted flying cars, we got 140 characters. — Peter Thiel

Energy consumption & speed of vehicle still stagnant. Automobiles still travel 80–100mph on our highways.
The Boeing 747 first flew in 1969, yet it still is the main jet carrying people across Pacific oceans.
Until Motorola & Nokia come up with mobile phone AT & T never do any innovation in its telephone & telegraph design.

Data is the new Oil

Above examples reflect, where we moving in the field of innovation & research. All the innovation in 20th mostly on Atoms & 21st century with Bits. Most of the companies in the world majorly categorized either bits or atoms companies & its part of one of the below 5 business models.

Bits: Company which builds on bits & bytes (0s & 1s) as a fundamental building block. most of the Internet/Software company survive with this principle. Innovation in this area is consistently accelerating in this area. there are too many bits companies right now (WhatsApp, Google, Facebook, Twitter)

Atoms: The smallest unit of matter. & The company which builds purely based on substances aka company having physical visible products. Innovation in this area is consistently slow down in this area. (Ford, Coca-Cola, YKK, Luxottica, GE)

Combined Bit & Atom : However, the above two sectors are not mutually exclusive. There is a 3rd group where the most successful companies are coming up with products and services that really do combine the best of both worlds i.e. bits and atoms. The most interesting start-ups seem to sit at the intersection of the two — they use bits to manipulate atoms. (Apple, Amazon, Uber) control over both bit (software) & atom (Hardware) market.

Converting Atoms to Bits : The new internet age was all about the overwhelming superiority of customer experience & transforming the atoms to bits across the information superhighway. * Conversion of the Books to kindle,
* Plastic CD/DVD, walkmans to iTunes,
* Money to PayPal/VISA,
* Blockbuster to Netflix,
* Camera roll to Digital Image,
* Print media (Newspaper) to FB/Twitter,
* College classes to Online classes (Udacity/Coursera) & many more atom contents converts into bit version, & become fabulously wealthy.

Converting bits to atom: There are hardly very few companies which transform the bits into atoms(Microprocessor, Biotech, Robotics, 3DPriniting ) In this model involves the highest Regulatory norms & Cost of conversion is high.

Here is the Complete story!!! 👇 👇

Here is the full story of bits vs Atom —