Despite my reservations associated with reading books by non-practitioners, I read this, written by a Harvard business school professor. It had a few good concepts.
1) there are two types of innovations: a) sustaining predictable innovation eg fitting more transistors on a microprocessor for a 20% improvement
B) disruptive innovations eg quantum computing.
Big established players are good at former, bad at latter.
(Highlights and underlines are mostly not me. An idiot read this book before I did)
2. This is my favorite insight from the book. Big companies do not go into disruptive innovations because they are a) low margin at the outset b) low quality c) not desired by their current
customer base d) not large markets at the outset.
(Sorry about the images, I too am an idiot)
3. When a disruptive technology comes onto the scene don’t jam it into your existing use case or customer base. Let it decide what it wants to be.
4. If you operate a big sclerotic corporation, if you want to “solve the innovator’s dilemma” and not he broadsided by more nimble innovators leveraging disruptive innovations to wipe out your business you need to create independent organizations to pursue the disruptive tech
Two things struck me when reading this book:
1) I kept feeling like I was missing somehting. “Is this all there is?” - correct me if that’s the case
2) bezos definitely read this book and cared a lot about making sure his massive company could respond to disruptive innovation
So, yeah. Solid book with interesting concepts. I’d just read a summary and play with the material in your brain instead of reading it. Kind of overrated.
If you’re a startup founder, attack big companies, especially if not founder led or if private equity owned.
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The first place I started doing business in was China and I knew I was going to get screwed because it was “China”, a lane of fake products and scams. I had heard the horror stories.
I was right in I did get screwed.
A few years later I came back to the United States and I tried working with a US manufacturer for something that I was previously making in China after my Chinese supplier had screwed me.
Boy was it expensive!
And something very strange happened. I had paid a lot of money for a mold made by an American mold maker and the mold was not working as it should and I told my American supplier that.
- at the same time, they engage in some borderline dishonest activities when it comes to tax minimization (not evasion). For example, Amazon knew they should've been paying sales tax instead of 3rd party merchants, but they also knew that not doing so gave them a leg up against
brick and mortar retail. So they pointed their figure at the merchants and said "they should be collecting" until the Supreme Court ruled that they had to collect.
- Congress doesn't do enough about Amazon and e-commerce for a couple of reasons:
Can I get some constructive criticism on the following prediction of inflation?
The below graph is a popular way of showing that overall CPI has been muted (2.25% between 1991 and 2021), but certain categories of goods have seen big increases in prices.
1/n
I like to think about it in terms of the following categories:
- stuff that can be outsourced (toys, clothing)
- stuff that is made cheaper by tech (new cars, software, tvs)
- subsidized or interfered with by government (college textbooks/tuition & hospital/medical care)
2/n
If you look at the categories that have seen the biggest price increases, it's all stuff that gov't is involved in:
- housing (FHA loans)
- education (sallie mae
- healthcare (I don't know how this works admittedly).
3/n
Step 1: achieve success in any area
Step 2: leverage that to get media distribution (Netflix, podcast, social media following)
Step 3: create personal brand
Step 4: endorse new ventures in new but adjacent areas
This works because the hardest part of a new business is almost always getting customers.
When you have a firehose of social media distribution that problem is partially solved.
This strategy is most common in restaurants, but can work for anything.
1) cofounds Alinea, one of America’s most famous restaurants 2) parlays it into Netflix show appearances, podcasts, gets on Twitter 3) creates personal brand more than “the not chef alinea guy” 4) endorses tock app, cookwear, book
Everyone on Twitter is complaining about how few people the US has vaccinated as though we lack the logistics capacity to do so.
Others are blaming government for preventing large groups from being vaccinated.
Are we sure it’s not just a demand problem?
- a lot of people have already had the virus
- a lot of people think they’ve had the virus
- the vaccine is a pia to get and requires two doses
- a lot of people don’t have insurance or have bad insurance. Has our govt made it clear that this vaccine is free? I don’t know
- the vaccine has a list of scary side effects such as potential loss of fertility
- there are a ton more vaccines in the pipe and people may think “well I can get a better later one”
- people want to see how these vaccine candidates will turn out