value is moving up the stack

why design is more important to the tech industry than it used to be

As happens in most industries, value creation is moving up the stack. That is, companies make money in new technology-driven arenas at first by differentiating on performance, engineering, cost, etc. As industries evolve, core infrastructure gets built and commoditized, and differentiation moves up the hierarchy of needs from basic functionality to non-basic functionality, to design, and even to fashion.

For example, there was a time when chief buying concerns included how well a watch might tell time and how durable a pair of jeans was. There is still plenty of core technology to be built for the Internet, but the fact that you can now be a fairly sizable Internet company without ever needing to own (or even look at) your server hardware means a much bigger proportion of what companies do is add value on top what’s here. And one of the most powerful ways to add value is through design.

Originally published on ZURB, in answer to the question: Why is it so tough to hire a designer?