The Cyclical Nature of the Hammer Industry

I love the hammer and nail analogy. Why? Because it’s so easy for people to understand what the purpose and role of a tool is. Sounds trivial, but I think it’s very hard for humans to separate the utility of the hammer, the carpenter and how these translate into the utility of the output of their work. It’s way too often we correlate the output of the tool simply with the features of the tool. The technology sector is rampart with this type of thinking. There are literrally millions billions of dollars spent every year on technology tools that we, as customers, believe are the sole reasons we either fail or achieve to “build our dream house”. Have we forgotten the importance and weight of the carpenter’s role?

Let’s say you decide one day you want to build a table. This table is going to be made using wood, nails and a hammer.  All things being equal, let’s say you build this table with hammer A that has a utility of 10. You build a second table with hammer B and it has a utility of 15. You, the carpenter, have now created two tables, table A and table B, respective to their hammers. The tables are identical, but the utility is different. Now let’s say your utility as a carpenter is 5 (we’ll call this carpenter ‘ME’). The value of the tables is now: Table A – 50 and Table B – 75. Now, my carpenter friend (we’ll call this carpenter ’FR’) has a utility of 4 and he builds the same tables using the same respective hammers. He now has two tables at the following values: Table A – 40 and Table B – 60. So we can build a simple comparative matrix now. Table B built by FR has a higher utility than Table A built by ME but it was built by a less skilled carpenter! We therefore logically assume the hammer is the key driver for the overall utility, not because it has a higher multiplier, but because we believe we have better ability over assessing what the utility of the hammer is. We then therefore place much more importance on it.

There is so much discussion about our tools being broken and I believe that statistically it’s the carpenter that is affecting the overall output. Unfortunately it’s much easier for us as humans to draw the simple conclusion – the tool is broken, update my tool.  Thus the hammer industry, or rather the technology tool industry, will continually go through cycles. New companies will be created year after year promising the dream house because you bought their shiny new hammer. I don’t doubt the necessity for these shiny new hammers, but I question how much weight we as humans put on them in order to create our dream house. Find a way for me to find a better carpenter, or fix the carpenter, and I’ll have my dream house…or maybe my dream table.