Emergic: Rajesh Jain's Blog

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Cold Tech

February 17th, 2003 · No Comments

Pip Coburn of UBS Warburg writes about “Cold Technologies” (as opposed to Hot Tech):

A cold technology issue is one that commands a major portion of the agenda while having neutral revenue or even anti revenue attributes. A hot technology has the potential to generate revs. So, in 1980, whether one was a fan of the PC or not, both would agree that if the PC took off the tech pie would expand

The PC was a hot technology. Linux is a cold technology. It will shrink the pie. Cold technologies often are issues that are not product related but gain a disproportionate share of the agenda. The migration of the food chain into China is a cold technology issue.

There is another interesting point made: “Ideas are cheap. Innovation is revenue generation. Innovation is implementation. There is little of that to be found today.”

I like the notion of “cold technologies” – this is what the emerging markets need. All the ideas that we are working on – the 5KPC with open-source software, an integrated ebusiness suite for SMEs – are cold technologies. In many ways, disruptive innovations are cold technologies – they are cheaper and simpler, even as they address new technologies.

Tags: Management

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