| The Time is Ripe for Innovation. |
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| Tuesday, 02 March 2010 00:00 | |
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In our book,The Big Gamble, Are You Investing or Speculating? you'll find much more than a simple discussion about the differences between investing and speculating. While we do give numerous examples of how so-called investments are frequently nothing more than speculation, we were not casting aspersions against the idea of speculating. In fact, we devote several chapters to highlighting the accomplishments of some of the world's greatest speculators. People like Howard Hughes, Bill Gates, Steve Jobs, Sir Richard Branson, the Google guys, and others have created entire industries and have advanced job opportunities for millions through their personal risk taking. If not for these men and their vision, we may have missed the opportunity to experience some of the technological advances and conveniences we take for granted today. What did these speculators all have in common—besides a high tolerance for risk? They understood that innovation was the key. Today the news is all about the grim economy, failure on Wall Street, polarizing politics, global recession, and the jobless market. It's clear that the shelf life on certain business models has long since expired. We need some fresh thinking, some new innovative ideas, and in today's shrinking world, those ideas have to be cross-border and global. We're not the only ones that think this way. When you look past the glaring headlines of doom and gloom, you'll notice something more promising underway—a growing movement toward business collaboration and innovation. For instance, a couple months ago we read about a conference being presented by The Wharton School of the University of Pennsylvania. It was called Borderless Innovation: Management Practices, Promises and Pitfalls. I travel constantly in my work and I've witnessed how globalization and collaboration are transforming the way innovation is managed. In the digital age of social media, most of the geographic barriers have already dropped away. And now, by sheer necessity and a struggle to survive, it appears that some of the barriers between businesses are also fading. At the innovation conference, nearly 100 managers from a wide gamut of industries came together in a kind of mind meld, looking for ways to share best practices and cross-pollinate ideas for their mutual benefit. I predict that this activity must become the norm for the future if we are going to advance our way into prosperity. Michael Mandel of Business Week magazine and the conference keynote speaker, noted that most companies—particularly in the U.S.—suffer from an "innovation shortfall." After our book had sung such high praises about some of the greatest innovators the world has known, Mandel's comment was hard to swallow. But the truth hurts, and in this case I believe the more savvy business leaders take this as a wake up call, the more it's going to foster a more open playing field, new business collaborations, and future opportunities to create the next big thing. Make no mistake, there will always be the next big thing, and it always comes pre-packaged with opportunities to speculate. . . and opportunities to get in over your head by getting swept up in the euphoria of herd mentality. For now, we're going to keep an open mind, stay positive, and watch as things evolve. And we'll keep reminding you to be optimistic—cautiously optimistic. |
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