Silicon Valley is not only a small area near San Francisco, but also a method of approaching business. It is a goal for many and a source of envy for even more as it keeps shaping the lives of billions. Its influence has been growing for decades and will continue to grow even more.
Google has taken over advertising, Facebook has taken over content, Tesla has taken over cars, Apple has taken over phones, Netflix has taken over television, Uber has taken over taxis, Dropbox has taken over file storage. When these businesses raise a standard, other businesses around the world must meet it.
Future Silicon Valley brands will have less and less to do with digital because every business will be digital. They will apply their formula even to the most non-digital businesses like manufacturing and construction. And they will win.
The beauty of the Silicon Valley formula is its simplicity: win by adding new and tested values to already existing products.
In the beginning, as software developers, they have learned that development always requires something else to automate. There is no value in development improving itself, but only in improving something else. So Silicon Valley improved accounting, productivity, games, music, phones, films, cars, food, travel. Software is an added value to an already existing need. Silicon Valley has gotten very good at taking something and adding software to it and making it better. Software development is not only about code, but about ease of use, customer care, accessibility, content, knowledge, and all the other added on things which we are now used to because Silicon Valley gave them to us.
Competing against this is incredibly hard or impossible for most businesses. An average business knows how to solve only one problem. Silicon Valley knows how to solve a problem of every business and every consumer. It is not that Silicon Valley seeks power, it is just that its formula is much more efficient than any other and customers want it. If we try Netflix once, it is hard to go back to regular television. If we try Google once it is hard to use whatever else we used before.
The goal for every business can only be: how to become Silicon Valley?
If all businesses do not copy Silicon Valley they will disappear, because Silicon Valley has figured out what values customers want. If businesses ignore them, they are ignoring their own customers, and they will not be competitive.