When pharma companies look to create new molecules, tesla makes electric trucks, people create unconventional products and prototypes, the process is fraught with risk. Why bother?
Just in the last 10 years, new business categories got created ( Smart phones, Electric vehicles, App stores, Social Networks…) making trillion dollar companies in the process. None of these firms started these products with valuations in mind. All they had was passion and perseverance.
I remember when I bought my first iphone (3), I was ridiculed that the phone was useful only for playing games and not for any ‘serious’ work ( which was done ‘very well' by Blackberry). Social networks were time wasters, Video calls were a fad and app stores were ignored.
Looking back, its difficult to imagine the ridicule each of those product leaders went through , trying to justify them to the spreadsheet based analysts and decision makers!
Firms such as 3M had policies to get a certain % of their revenue from new products EVERY year. In one stroke, it addresses growth, de-risking and obsolescence. While 3M may be an exception, this thinking and behavior does not come naturally to many. Most would like to follow the herd, copy the competition, stick to the routine and wait for orders. Last decade has proved that ‘least risky’ approach to be the ‘most risky’.
Given the surplus capital in the world today, what are needed are those bright ideas that can potentially change ( even a small part of the ) world. With the benefit of learnings of the past decade, there is enough of a rule book to ensure the idea pursuit is done right.
The millennials are enterprising enough to try new ideas , fail, dust up and try harder or smarter. The multiple cases of maniacal customer obsession to build a great product resulting in growth are testament to Product led growth strategies. ( Zerodha, Amazon, Zoho,Zappos…). These have turned the traditional approach of market study/business plan on their head.
Next decade belongs to those brave enough to build great products ignoring the naysayers.
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