1994 to Now: How AI Returns Control to Businesses
It’s pronounced, S-A-P
I remember the sunrise. The software. The sounds. But not the coffee.
In 1994, I stood watching a sunrise on a construction site in Oregon, the sky dripping in purples and greys; I was taking a break from school to earn much-needed cash, putting up steel, as was my wont. The clang of metal and the bang-bang-bang-bang-bang of impact guns bringing inch-wide nuts to rest on their spindles and an occasional voice were at my back. Amidst the dawn hustle, whispers of new machinery began to circulate—not physical, but digital. Behind me, the company we built this manufacturing space for invested in something called S-A-P (never "sap," as I quickly learned). It was software designed to unify every facet of their operations, from supply chain logistics to billing systems. Curiosity, piqued.
The concept was revolutionary but natural. One software to rule them all, streamlining processes and enhancing efficiency. But the price tag? A staggering $65,000 per user. And a year of disruption to deploy. Even today, that's a hefty investment. Back then, it was astronomical. It made me think, “This is a successful company. If they're spending this much on software to replace processes they already perform well, we're not charging enough for our construction work.”
Business
What struck me more was the audacity—or perhaps the unearned confidence—of developers half a world away in Germany, dictating how an Oregon-based manufacturer should run its business. Plus the whole its S-A-P never sap thing. It felt like a one-size-fits-all suit: cramped, expensive, and ill-fitting, at risk of coming apart at the seams.
Fast forward to today. The world is abuzz with talks of Generative AI and Large Language Models (LLMs). I recently watched a compelling discussion between Kevin Dewalt of Prolego and global tech executive Tim Jones. Mastering LLMs: The Future of SaaS in an AI-Driven World. They delved into how AI is poised to disrupt the Software-as-a-Service (SaaS) model. But it was Jones's closing remarks that resonated deeply with me.
He envisioned a future where AI empowers companies to design their own software in mere weeks, not years. This future is happening now. A future where software isn't a rigid framework imposed upon a business but a fluid extension of its unique DNA. Companies can embed their knowledge, culture, and innovative practices into tailor-made solutions. No longer confined by the distant assumptions of external developers, businesses can explore new horizons, iterate rapidly, and adapt to change with unprecedented agility. Your competition is doing it now. If you don't see them yet in the murk, you will soon enough.
This shift doesn't just threaten the hefty margins of traditional SaaS companies; it revolutionizes the very ethos of software development. It places creativity and control back into the hands of those who know their business best.
Creativity
Reflecting on that construction site from thirty years ago, it's astounding how long this transformation has taken. We've seen Moore's Law propel hardware capabilities forward exponentially, yet software—especially the kind genuinely driven and reflecting a company's unique genius, intellect, and knowledge—has lagged. (That's not a great application of metaphor, but it makes the point.) It's as if we've been upgrading the machinery but ignoring the operators. (And ... I one-up the junk mixed metaphor.) It was a gorgeous sunrise that morning on the site. I don't remember the coffee, but I remember the daybreak.
Now, AI. It's democratizing software development, making it accessible, customizable, and inherently aligned with individual business models. It's not just about cutting costs or increasing efficiency; it's about fostering innovation from within.
Why This Matters
I believe in the power of transformation through technology and design. The convergence of AI and business isn't just a trend; it's a paradigm shift. Companies won't just consume software—they'll craft it. This empowers brands to be more authentic, responsive, and in tune with their customers and markets.
The Road Ahead
Blocks
As we embrace this new era, the possibilities are boundless. Imagine startups leveling the playing field with industry giants because they can iterate faster and precisely tailor solutions. A five-person custom machine shop next door to Intel running off custom ERP software. Picture established companies reinventing themselves overnight, finally unshackled from the constraints of off-the-shelf software and the stickiness of SaaS.
Final Thoughts
From the steel beams of Oregon to the cutting-edge AI platforms of today, the journey has been long but purposeful. We're witnessing the dawn of a new age where technology doesn't just get served to businesses—it returns home to them. Think of a blacksmith making the hammer they will use to forge you a ploughshare. It's a shift three decades in the making and only just beginning.
Citations
Prolego. (2024, September 27). Mastering LLMs: The Future of SaaS in an AI-Driven World [Video]. YouTube. https://www.youtube.com/live/I6ovkeFZKJE