Gerber - Why Big Companies Can't Innovate
Hi Everyone,
After reading the entire article, I couldn't help but go back to the line, If venture capitalists think entrepreneurs have identified a big problem with an interesting solution, they'll fund the start-up." This is something that I lose sleep over at night when it comes to my innovation with designing a new solar panel. I had a conversation with a student in our class about this; how do you, ABSOLUTELY KNOW, that the problem you think is answering a big problem really is answering the big problem....?
I guess the answer comes down to the "fail quickly and cheaply" concept. I'm at the point know where I REALLY THINK my innovation can solve a big problem; make solar panels more efficient and more appealing as a cost effective investment. I think my only choice is to create a prototype and see what the real market response will be. Any thoughts...?
Another line that caught my attention, "Seasoned managers steer their employees from pursuing the art of discovery and towards engaging in the science of delivery." This is a tough one because in my opinion, the art of discovery is more often than not found in the failure of an innovation. Knowing how NOT to do things can be just as valuable in understanding how to do something correctly. I feel like the general managerial/executive power at be may not fully understand this concept of failures being a huge part of the final success.
SOLAR PANEL UPDATE:
I went to Florida, where the sun radiation levels are signifigantly higher than in Mass - makes PV system a lot more attractive, this past week. I spoke with a general contractor who is an associate with a very successful Realtor down there. They seemed to think the residential market would be much more accepting to the concept of solar panels because of how much higher the electric bills are down there from 24/7/365 AC units running. People in modest size homes reporting spending in the $6,000-$10,000/year electricity bills. That's about 10x higher than my electric bill in Mass, same for most everyone I know.
Targeting people with high electric bills is certainly going to be a focus for my entrepreneurship development because the ROI is substantially quicker in terms of time to pay back the system over total investment. The overwhelming response was that developing commercial applications would be a serious cash cow as there's a substantial amount of deserted land that is far outside the sight of communities.
Thoughts, ideas or any input is always appreciated! Thanks.
-Brendan
posted by BrendanG @ 2:32 PM
2 Comments
2 Comments:
Brendan, I think your innovation is one that is worth pursuing. Your target region is probably going to be your first test of success/failure because Florida has the sun levels needed, as well as higher populations of a target demographic. Have you looked into or do you already know, if there is any change on the temperature of the home with panels on top? Maybe the right panel would be able to pull in the sun's heat but also not allow a home's roof to heat up as quickly and trap heat (causing AC to be less efficient). Just some thoughts... Your pricing will have to be right, even with the right rebates/refunds, folks are going to need a way to finance the larger ticket item up front while they wait for these checks or monies to come through.
You can do some test and survey on the market to figure out whether your innovation can solve a big problem. You also can just talk with people about your business plan, just like what you do right now. The question they generate will be the problem you need to solve. I believe your product would bring convenience to customers after I heard your BMC presentation on class. But I think your product would have more demands in some warm places where have enough sunshine and people need to use air-condition and take shower frequently.
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