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In computer news this week July 21, 2005

 

History of the Microcomputer Revolution - Part 10 - The Killer Application

By 1979 there were lots of microcomputers and a fair number of software programs, including word processing and accounting programs. The industry was somewhat standardized on an operating system - CP/M - although there were notable exceptions like Radio Shack and Apple, and the Apple II had emerged as an industry star, with its sound, graphics, and sleek design. But these programs duplicated what was already existing on mainframe and minicomputers, and in a horse race - micros really were out of the running.

What the industry needed was a Killer application - a software program that would let a microcomputer do something the other bigger computers couldn't do, and a MIT graduate named Dan Bricklin - came up with an idea of creating a program designed for generic business applications that would let people work with numbers on a microcomputer; build financial models, and have the computer do all the calculating. What will our profit be if we sell 10,000 widgets at fifty cents each? What if our inventory expenses rise suddenly?

The concept was the traditional accounting worksheet with its rows and columns, except that everything would be magically hooked together - so that if a value in one row changed - any other values it effected would automatically be recalculated and changed. This would be a calculator program that would show you visibly onscreen the results - hence he named it Visicalc...

The market for it - was virtually every small business  in the world. Even though big corporations had big computers, there was a tremendous backlog in submitting jobs and getting work back - weeks, months, even years. Rather than depending on centralized data processing departments, across the country thousands of corporate midmanagers were doing it themselves - working with traditional paper spreadsheets to create reports such as forecasts and budgets.

In a few months Bricklin had a finished product designed specifically for Apple computers. The market response was incredible, because this was not just computer hardware and software - it was a complete business solution. Managers could buy an Apple II with Visicalc, bring it into their departments, and immediately increase their productivity. Budgets and forecasts that traditionally took weeks could now be done in hours.

Word spread so quickly and so many people recognized the productivity potential that people would walk into computer stores asking for a Visicalc system, as if it was all one thing. This was the true killer application that launched the pc  industry .

 

Visicalc was soon modified to run on other microcomputers; Radio Shack at first, then others, and of course it was sold with the original IBM PC . But the most significant point here is that people were buying a ready made solution and microcomputers were beginning to infiltrate American corporations by the thousands. This was a case of the tail wagging the dog - a hundred dollar piece of software was selling a two thousand dollar computer, and sales increased exponentially into the millions.

 

 

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