Louis Pasteur, the scientist famous for confirming the germ theory of disease said once said:
"Chance favors the prepared mind."
I’ve been thinking about this idea a lot lately, mostly because I’ve recently acknowledged that the only thing I’m lacking in my aspirations to run my own business is that great idea to base it around. I feel confident with the idea of running my own company, and would start doing so tomorrow, if I had an idea that I felt was worthy of that commitment. Knowing this, the next question is naturally: how do I find this great idea? Perhaps it is just chance, and great ideas are things that wake you at night with a start and force you to write them down before they slip down into the subconscious again. But I’m inclined to agree with Pasteur, and I think that there might be a method.
A few months back, I watched Ray Kurzweil’s TEDTalk. A few days ago, I read an article by Kurzweil in Inc Magazine, and I was reminded of his lecture. Kurzweils’ point that interested me was that certain things in the technology world are very predictable. You may not be able to predict what Google’s stock price will be in two years, but you can very accurately predict how expensive computer processing power is, or how cheap bandwith will be, or how much a gigabyte of storage will be. Furthermore, these trends increase not in a linear way, but in an exponential way.
The implication of this is that things that today seem impossible, prohibitively expensive, or too far ahead of the technology will be possible in the future – and the future is coming sooner than you think. In his words, "With the doubling of price performance each year in every kind of
information technology, you just need to wait a short while to find
that you can have your cake and eat it too."
OK, so what does this have to do with the next big thing? The way I figure it is that the secret to finding the next big thing is being able to recognize what is theoretically possible in today’s world but unfeasible due to financial or technological constraints. Take that idea, look down the road after 2-3 years of exponential growth, and try to see where the idea stands. Since data about bandwidth, processing power, and storage are so accurately predictable, the secret to the next big thing is being able to figure out what we can’t do today but can do three years from now – and then be the first one to do it, and do it well. I think this applies particularly to disruptive technologies – things that really change the rules of the game. In these cases, a certain market application is made possible when the growth of those predictable trends reaches a level that suddenly makes something possible that wasn’t before, in a critical point/threshold kind of model
Examples of this:
- Declining prices, increasing availability of broadband internet, digital camcorders, and consumer-level video editing lead to the YouTube explosion of user generated video content.
- Declining price of computer hard drives and digital video hardware allows the creation of a reasonably priced digital video recorder – say hello to TiVo!
- Decrease in bandwidth costs and increase in processing power make Vonage and other internet telephone services possible.
I’m not saying that coming up with a great idea is easy – the conceptual connection between recognizing the predictable trends and realizing what (successful) products those trends will make feasible in the future is no small feat. But it’s one step closer to a methodology for identifying these ideas. And I’m convinced that the time I invest in keeping current with tech trends and learning about the bleeding edge of technology is worth the effort for the insight it may give me into the future.
