Feb
20
Should you innovate?
Filed Under economics, innovation, strategy | Leave a Comment
It seems like everyone should be running around innovating. It’s a good thing, right?
However, there’s really not much incentive. Let’s say you take a lot of money and you spend it on R&D. You do a bunch of market research, talk to some existing customers, and start developing some prototypes. Then, after a few years, the idea fails.
The ROI on your investment? Zero. Zip. Zilch.
Or, let’s consider another path. You take a lot of money and you spend it on R&D. You do a bunch of market research, talk to some existing customers, and start developing some prototypes. Then, after a few years, you become a huge success.
Then what? People start copying your idea.
The ROI on your investment? Small at first and then smaller. Why does it get smaller? Because people start copying your idea and cutting into your market share and profits.
Heads I win, tails you lose.
One solution to the situation is not to innovate. I’m going to ignore that because it’s the wrong answer.
Another solution is enforcement of intellectual property. By either using copyright, patents, or trademarks, you can protect a part or all of your invention for a period of time. Then, ideally, you could recoup some money for the length of the legal document. This only works for large companies with deep pockets. Small companies don’t have the money to enforce the patent issue.
Eli Whitney, the inventor and patent holder of the cotton gin, was eventually forced out of business due to filing lawsuits against knock-offs and competitors. This is a perfect example of how a revolutionary invention forced the inventor out of business. Doesn’t seem right, does it?
Why innovate then? Because it should be your goal to change the world. Don’t settle for mediocre. It’s rewarding to participate in something bigger than yourself. When you reach retirement age, you want to look back and say that you’ve contributed to changing the world.
Of course, there are economic and strategic reasons to innovate. I’ll talk about those next.
But I can tell you this, it’s not as exciting as changing the world.
Feb
9
Kindle news
Filed Under Uncategorized | Leave a Comment
Amazon Raises an E-Book Specter
Kindle sparks excitement for e-books
E-Books Take Center Stage
Feb
8
Inc. article on business luck
Filed Under innovation, leadership, strategy | Leave a Comment
Great read.
Lucky or Smart
Feb
5
Some posts on VC
Filed Under Uncategorized | Leave a Comment
Links:
Venture Capital Returns Dip Below Zero
VC performance dipped … back in Q3 2008
How To Write A Misleading Headline
Feb
5
Google’s Android
Filed Under technology | Leave a Comment
Seems like Android is moving into new devices:
Android: One Multitasking Operating System
Feb
4
Cell phone sales down
Filed Under technology | Leave a Comment
Interesting article. It seems that cell phone users are becoming more segregated. If you think of a traditional standard distribution curve, the users are splitting up into the tails.
Link:
Mobile phone sales fall as users put handsets on hold
Feb
4
Example of using the web
Filed Under leadership, technology | Leave a Comment
For any aspiring company looking to build a community and rally their base, you should use the EFF as a model. They are continually using the web to bring together citizens. The latest instance is the Fair Use issue related to YouTube.
Link:
YouTube’s January Fair Use Massacre
EFF Gears Up To Fight Back Against Bogus YouTube Takedowns
Feb
4
New Singularity University
Filed Under innovation, leadership | Leave a Comment
Google has announced a new program called Singularity University. The goal is to help prepare business leaders for the upcoming technology big trends – nanotechnology, biotech, a.i., among others. I like the idea, especially since the latest tech trends are often the most misunderstood by the leaders of business.
Technology development and business leadership create quirky catch-22 situations. It’s often the brightest tech guys that move up into leadership roles, causing them to focus more on business issues than tech. As the years roll on, the underlying technology foundations change without the business leaders paying attention. Soon, the leaders are completely out of the loop.
This seems like a perfect way to quickly and completely educate the business leaders about these new trends.
Links:
New Singularity University may overpromise the infinite
Google, NASA, Kurzweil take tech into the future with new university
Feb
4
Amazon’s new digs
Filed Under innovation, leadership, technology | Leave a Comment
Amazon is now serving game downloads. The number of available titles is around 600, with the range of pricing between $6 and $9 each. The titles seem on the lower end of the demand curve, but the service is still only in beta.
I think it’s another great move by Amazon. They are one of the companies I admire for continually bringing out new ideas.
Links:
Amazon now flogging game downloads
Amazon Launches Online Game Download Store
Feb
2
Flash and the iPhone
Filed Under Uncategorized | Leave a Comment
It’s been a while since I’ve dug into the technical details of Flash, but I’ve noticed that there are fewer people using it. Certainly the sites that use Flash fall into 2 categories: Brilliant and Bullsh$t. However, my thought on this article isn’t about Flash, but about competition.
It seems odd (and slightly ironic) that a great company like Adobe is being pushed out of the market by a tiny device like the iPhone. Evolution happens in the strangest places.
Link:
False Hopes: Adobe Desperate to Install Flash on the iPhone?
