Investment – Lorne Mitchell's Thursday Thoughts

09/08/201809/08/2018

Inventors are from Uranus. Investors are from Venus.

Sometimes you trip over a word and it takes on a shape. It bugs you until you look at that shape and see something different. Something unusual.

That happened to me this morning. I received a note from a friend of mine who was talking about Elon Musk and his investor dilemma. Whilst typing back a reply, I said: “it’s the difference between an inventor and an investor”. And the shape of these two words hit me! They were so similar – and yet poles apart.

So, as is my wont (an old English word meaning habit or custom that spellcheckers highlight as a mistake, but it isn’t), I set to with the idea that an inveNtor and an inveStor are two opposing forces under tension in any business.

And whilst deciding that this was, indeed, a good analogy, it struck me that so many letters are shared between these two words. In fact, seven out of eight letters are not just the same – BUT THEY ARE IN EXACTLY THE SAME POSITION IN THE WORD! The only difference is the fifth letter – where one is an “N” and the other an “S”. How can two such similar words have such contrasting shapes positions in business, yet share so much at the same time?

To use the old analogy “Men are from Mars, Women are from Venus”, it got me thinking about which planets would inveNtors and inveStors inhabit? I looked up this idea on an astrology website and found that Venus is the bringer of love, beauty and money. So that will do for the inveStor community (though I sometimes find it hard to see how those three words fit nicely into one sentence.

As for Mars – well that is a non-starter. We needed another planet. And so I typed-in “innovation” to find that Uranus represents technology, rebellion and innovation! That will do nicely!

So, inveStors are from Venus and inveNtors are from Uranus. There you go!

Yet that wasn’t enough. I further studied the two words to find that the only difference were the two letters: N and S – and suddenly it hit me! They are also polar opposites on the dial of a compass! I was so encouraged to find even more elegance down this particular rabbit-hole!

Further to discovering this chance pairing, I thought again. Whilst looking at the meanings behind the planets, I came across Mercury, the Messenger God who is know for communication, day-to-day expression and coordination. A vital and often missing ingredient when inveNtors and inveStors cannot see each other’s point of view. What other letter (in the same place as the N and S) could be a catalyst for change? What could be the Mercury that goes between Venus and Uranus (though I know full-well that is impossible in our particular solar system – but work with me on this!)

And so I came across the letter “R”. One of the few that makes sense and is a word. An inveRtor. It has a medical meaning, but I preferred the one used in electricity – which converts AC to DC current and back again. An inveRtor is a converter of energy from invention to investment. Perfect!

So, in summary, we need more inveRtors in business to go between the impossible stances that inveNtors and inveStors take when they stand-off in their own worlds of creativity and resolution. A few more inveRtors that will be comfortable in the space between what is impossible and what is possible. A few more inverRtors that will help inveNtors like Elon Musk save the planet with his fantastic ideas to make the world’s transportation system run on electricity without making all the inveStors run a mile!

As it was such a great rabbit hole to go down (and it is Thursday and I have not written Thursday Thoughts for a while), I thought I would write-up the story. More to follow soon!

Please do leave a comment below if you see any other strange or fantastic happenings on the road from invention to investment.

28/01/201628/01/2016

The Best Source of Innovation

The news this week that the upwards-ever-upwards iPhone sales are finally stalling was a stark reminder that even the greatest companies struggle to keep the juices of innovation flowing year-on-year. The Apple Watch couldn’t replace the iPhone and the iCar (if it ever arrives) is still a few years out.

Most companies that I study or consult to are in an innovation crisis. They know they must innovate in order to remain competitive and keep growing (or simply to stand still). Yet how often does the innovation agenda become demoted to “novel” efficiency drives and cost-cutting initiatives?

It begs the question: where is the best place to source innovation? Many of my clients in the telecoms world look to technology suppliers. They continue to develop new features on top of their already bloated stack of products and services that were offered last year. The latest gizmo. The latest bell or whistle. Yet I already have an iPhone 6s. Why do I want a Plus? I upgraded from an iPhone 4s to wait for the 6. I think I’ll hang on until I see something really new and different from Apple.

Innovation can come from suppliers – but you can’t really differentiate your company if that is all you rely on. Such is the fate of many telecoms companies: they continue to develop new features on top of their already bloated stack of product features that were offered last year. The latest gizmo. The latest bell or whistle. A price war starts and the cost cutting initiatives cut even deeper. No, suppliers, are not the best answer.

What about the young folk who have just joined the organisation? Straight out of University or School, they bring a fresh set of thinking. They are the next generation! Surely they hold the answer? Give them a difficult problem and let them brainstorm their ideas to create something truly whacky. Too risky, I say! They will not understand the product and how it is used, yet. They might come up with some good ideas., but Good ideas are not the same as innovation. The newbees are not the best source of innovation either!

So where should we go next? To customers, of course! Customers that use (and misuse) your existing products and services! Customers who suffer day-to-day from trying to work the processes that you have under-designed and waste your customers time and effort. They are loyal customers until they suddenly vanish. And if no one contacts them to see where they have gone, then innovation dies on the vine!

Customers are an incredibly cheap this source of innovation, too. Not just cheap, but very valuable! By asking a few simple questions of customers every time you interact with them, you can increase your profitability, customer loyalty AND innovation in one fell swoop!

And what are those questions? Well, you will have to read the next few Thursday Thoughts to find out my thoughts on this. In the meantime, try and work out what you think they might be and comment below!

Oh, and thank you so much for reading this far. I hope, at least, it has made you think a bit more about one of the most important aspects of business and human life!

01/08/201203/08/2012

The Lords’ Verdict

For those who have followed this blog for a while, you will know I presented evidence at the House of Lords’ inquiry on the present UK’s government’s policy on Next Generation Broadband. So it was at midnight on Tuesday, the Lords published their report which can be found <HERE> entitled “Broadband for all – an alternative vision”.

Lord Inglewood was interviewed in a video:

“Our communications network must be regarded as a strategic, national asset. The Government’s strategy lacks just that – strategy.

The complex issues involved were not thought through from first principle and it is far from clear that the Government’s policy will deliver the broadband infrastructure that we need – for profound social and economic reasons – for the decades to come.”

The report has had a mixed response. Supporters of a truly open-access fit-for-purpose National internet Infrastructure applauded.

Other analysts were eless complimentary:

Matthew Howett, lead analyst of Ovum’s regulatory practice, said many aspects of the inquiry’s report are “simply odd”.

“With nearly 50 recommendations and no indication of costs or how they should be met, it’s likely to be dismissed as nothing more than a pipe dream,” he said.

Odd it was for me that so many Peers took the time out to learn about the industry and the pros and cons of various options for technology and business models. It was a piece of work that involved many hours of their time to see the problem from different perspectives. It challenged the status-quo and came up with an alternative vision for what the UK’s national internet access infrastructure might look like. It was bound to be unpopular in certain quarters as it threatened the status-quo.

Sure, the government and BT’s in-house analysts might dismiss the ideas as pipe-dreams, but one wonders where the whole BDUK process is heading. It might be the Games in London – but this particular game will go one well into the Autumn after all the athletes have left London.

It is definitely time for the status-quo to be challenged. BDUK is at best a strange construction and at worst a totally bonkers policy for a government set on Localism and Community Engagement. The Lords’ report went to the heart of this matter and has suggested a framework for a truly revolutionary approach to fixing the monopoly of BT’s infrastructure – particularly in the middle-mile.

At times, I think of giving up banging this drum and doing something more conventional and toe-the-line. Yet at one minute past midnight on Tuesday, I had a new surge of enthusiasm that the ideas that we have been working on for several years now are getting some traction and that a body of revered and highly intelligent Peers actually understood what many on the fringes of the industry have been saying for a while.

If only the Government could stand back and listen to some of the concerns about the current vision and understand that they have alternatives that are better, faster and cheaper that will help the UK’s international competitiveness, we might actually come up with something that really does get the economy back on its feet in a fairer way, based on an infrastructure that no single part is too big to fail. Surely there is a lesson here from the banking system that is staring us in the face?

Come on, Jeremy. Put the bell head back on the stick, put the bell down and start listening again. Unless, of course, you get reshuffled – in which case it is round-and-round we go!

Source of quote and more on this story at:

http://www.cbronline.com/news/lords-uk-broadband-strategy-heading-in-the-wrong-direction-010812

http://www.totaltele.com/view.aspx?ID=475352&G=1&C=4&page=3