1st Edition

Technomics The Theory of Industrial Evolution

By H. Lee Martin Copyright 2007
    256 Pages 38 B/W Illustrations
    by CRC Press

    Have you ever wondered about the forces behind globalization, mass customization, just in time delivery, virtual companies, and perfect information? Providing a platform to understand and navigate our rapidly advancing world, Techonomics: The Theory of Industrial Evolution explains the relationship between technology, economy, and organizations. Successful entrepreneur and prolific inventor Dr. H. Lee Martin shares a technologist’s marketplace insights gained from a 15-year journey from the garage to the public market.

    Martin examines four foundations of healthy organizations: energy, communication, computation, and community. He then elucidates a method of tracking market progress, based on measuring both technology performance and economic cost, which provides a tool to consistently monitor advancement of any endeavor. The book looks at three contemporary trends based on electronic advancement, network expansion, and increasing productivity that are forcefully driving organizations in the 21st century. It explains examples of successful companies utilizing emerging operational business models.

    Adam Smith’s laws of supply and demand are challenged daily by a world productive capacity that can overproduce manufactured goods and create infinite supplies of information. Providing examples of the value of e-commerce to business operations, Technomics delineates how to measure, compare, and maximize trends in key processes. It demonstrates how, in the dawning Virtual Age, organizations that effectively use ALL resources will continually increase productivity, and those that don’t will fall behind.

    A Techonomic Primer

    Introduction to Techonomics

    Goal of this Book
    From Biology to Business
    Techonomics: The Definition
    Fundamental Assumptions
    A Leading Indicator: The Military

    Seeing the World through Transactions

    Story of Ronald Coase
    Transaction Cost Analysis: The Make-or-Buy Decision
    Hidden Transaction Costs
    The Importance of “Perfect Information”
    Defining Techonomic Metrics
    Techonomic Metric Process
    A Techonomic Perspective of History
    Organizational Evolution Resulting from Technological Advancement: A Timeline
    A Timeline of Technology
    The Four-Square Principle: Organisms/Individuals
    The Four-Square Principle: Organizations/Society

    Creating Techonomic Metrics

    The Techonomic Sweetspot
    An Example: Digital Photography Techonomic Metric
    Military: Technology Advance without Economic Constraint
    Energy: Side 1 of the Organizational Square
    Computation: Side 2 of the Organizational Square
    Communications: Side 3 of the Organizational Square
    Community: Side 4 of the Organizational Square
    Reflections on Interdependence
    Techonomics at the Turn of the Twenty-First Century
    The First Three Laws of Twenty-First-Century Techonomics
    Moore’s Law: Ubiquitous Computing
    Metcalfe’s Law: Ubiquitous Global Network
    Coase-Downes-Mui Law: Diminishing Organization Size
    The Franchise Effect: Growth through Replication
    Emerging Twenty-First-Century Techonomic Business Models
    Positive Cash-Flow Manufacturing: Dell
    Positive Cash-Flow Retail Distribution: Wal-Mart
    Debtless Facility Expansion: Walgreens
    Predictable Antiquation: Intel
    Business at the Speed of Light: Microsoft
    Virtual Retail: Amazon
    Virtual Reselling: eBay
    Virtual Media: Apple
    Emerging Techonomic Conclusions

    Emerging Techonomic Trends

    Energy: Journey to Renewable Energy Resources
    Computation: All Things Digital
    Communications: Expanding Control and Influence
    Community: Increasing Efficiency from Specialization Yields
    Post-Industrial Challenges and Techonomic Answers

    Techonomic Market Crises and Recommendations

    Techonomics Natural Selection Mechanism: Competition
    Energy: Economic Reason or Ruin
    Healthcare: Inverted Techonomics and Its Implications
    Education: Techonomics of Monopoly
    Government: Techonomic Effect in Macroeconomics
    The Techonomic Future
    Expanding the Boundaries
    Vanishing into the Virtual
    From Adam Smith to Techonomics
    The Techonomic Worldview
    Appendix 1: Terminology Related to Techonomics
    Appendix 2: Example of Process for Developing a Techonomic Metric Index


    H. Lee Martin

    “…For a competitive advantage, this book is a must read for any 21st century manager.”
    — John S. Hendricks, Founder and Chairman, Discovery Communications, Inc.
    “… an excellent job creating a framework to look at and understand this new world and predict the future that it holds.”
    — Patrick P. Gelsinger, Senior Vice President, Chief Technology Officer, Intel Corporation
    “… If you liked Thomas Friedman’s The World is Flat, you’ll love this book.”
    — William F. Ford, PhD., former CEO of the Federal Reserve Bank of Atlanta
    “A must read as you contemplate the future of technology development in a ‘Flat World’”.
    — Promod Haque, Silicon Valley Venture Capitalist
    "…a fresh new insight to the interplay between technology and competition in this revolution."
    — David Coffey, Owner, Security Services Network, Inc., 5-time Inc. 500 Award-Winning Entrepreneur
    “Lee Martin’s unique background which combines tremendous technology knowledge with a common sense business approach has allowed him to explain in everyday terms the significant relationship between business, technology and organizational structure.”
    — Jimmy Haslam, President, Pilot Travel Centers, USA
    “A must read for all managers from the first level to the CEO. A definite must read for all U.S. Representatives and Senators…”
    — Richard Davies, Vice President of North American Manufacturing (retired), Goodyear Tire & Rubber Company.
    “…the principles of Techonomics will give you and your company or organization a competitive advantage. …The wise reader will put them to use immediately.”
    — Bill Baxter, Chairman of the Board, Tennessee Valley Authority
    “… argues convincingly that technology is the driving force behind organizational change. …Entrepreneurs and others will do well to embrace the concept of Techonomics.”
    — Dr. Loren W. Crabtree, Chancellor, University of Tennessee
    “… helpful in understanding the increasing complexity and changing dynamics of today’s global economic playing field.”
    — Frederick H. Forster, Major General (retired), Tennessee Air National Guard
    “…thought-provoking analytical techniques and metrics to improve both our organizations and our futures.”
    — James D. Froula, Executive Director, Tau Beta Pi Association