Charity, proof scarcity doesn't always increase prices.

November 2, 2012 · Posted in abundance, economics, sharing · Comments Off on Charity, proof scarcity doesn't always increase prices. 

Sharing electricity with victims of Hurricane Sandy.Economic theory states that scarcity increases prices; but, exactly the opposite occurs. People share with their neighbors.

Widespread power outages is the definition of scarcity. The people people without electricity clearly have a need. Why didn’t it lead to massive profit taking? In a real free market there is another choice, it’s call charity.

The person sharing their electricity didn’t have a scarcity, they had an abundance, more than they needed. The value of helping people in need outweighed any monetary profit or the hassle involved in selling access to electricity. This situation shows that given the choice people gladly share. If there isn’t a significant cost involved sharing people will share.

Predicting the next Disruptive Innovation

November 6, 2009 · Posted in innovation, prediction, strategy ·  

In The Perils Of Extrapolation: Who Knows What The Next Disruptive Innovation Will Be Mike Masnick points out how important it is for an entrepreneur to be able to respond to changes. If you can accurately predict the next big innovation its easier for you to respond to change or even be first to market.

Traditionally forecasting doesn’t work well for innovation. Trend analysis isn’t very accurate for predicting the future because it’s looking at the past rather than what makes the future happen. That is why most people thing, “It’s always difficult to predict which innovation is actually going to hit”.

Predictive Innovation changes that and puts you in control, increasing profits, decreasing risks, and neutralizing competition.

Can You Innovate Without Craziness?

January 27, 2009 · Posted in innovation ·  

Crazy Google GlassesBizarre and weird behavior isn’t the source of innovation. Innovation is satisfying customers’ unmet desires. Unless your customers’ want to watch you act crazy then bizarre behavior is not innovative.

All you need to satisfy customers’ unmet desires is to understand your customers and have a system for creating products and services that do more of what customers want. That sounds remarkably sane.

So why all the hype about acting like a lunatic to be innovative?

Innovation by definition is change. Crazies love change, any change, the wilder the better. Sensible people naturally avoid most change because it also produces risk. But sane logical people change all the time. What they want to avoid is risky change that doesn’t provide value. Give a sane well adjusted person a low-risk high value improvement and they will gladly accept that change.

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