How to Create Value from Nothing

How to Create Value from Nothing

Doing nothing fuels creativity and innovation, but that fuel is wasted if you don’t put it to use. Idleness clears the mind, allowing fresh ideas to emerge, but those ideas must be acted upon to create value.

Why is doing something with that fuel so difficult?

Don’t blame the status quo.

The moment we get thrown back into the topsy-turvy, deadline-driven, politics-navigating, schedule-juggling humdrum of everyday life, we slide back into old habits and routines.  The status quo is a well-known foe, so it’s tempting to blame it for our lack of action. 

But it’s not stopping us from taking the first step.

We’re stopping ourselves.

Blame one (or more) of these.

Last week, I stumbled upon this image from the Near Future Laboratory, based on a theory from psychologist Mihaly Csikszentmihalyi’s book Flow:

There’s a lot going on here, but four things jumped out at me:

  • When we don’t have the skills needed to do something challenging, we feel anxiety
  • When we don’t feel challenged because our skills exceed the task, we feel boredom
  • When we don’t feel challenged and we don’t have the skills, we feel apathy
  • When we have the skills and feel challenged, we are in flow

Four different states.  Only one of them is positive.

I don’t love those odds.

Yet we live them every day.

Every day, in every activity and interaction, we dance in and through these stages.  Anxiety when given a new project and doubt that we have what it takes. Boredom when asked to explain something for the 82nd time to a new colleague and nostalgia for when people stayed in jobs longer or spent time figuring things out for themselves.  Sometimes, we get lucky and find ourselves in a Flow State, where our skills perfectly match the challenge, and we lose track of space and time as we explore and create. Sometimes, we are mired in apathy.

Round and round we go. 

The same is true when we have a creative or innovative idea. We have creative thoughts, but the challenge seems too great, so we get nervous, doubt our abilities, and never speak up. We have an innovative idea, but we don’t think management will understand, let alone approve it, so we keep it to ourselves.

Anxiety.  Boredom.  Apathy.

One (or more) of these tells you that your creative thoughts are crazy and your innovative ideas are wild.  They tell you that none of them are ready to be presented to your boss with a multi-million-dollar funding request.  In fact, none of them should be shared with anyone, lest they think you, not your idea, is crazy.

Then overcome them

I’m not going to tell you not to feel anxiety, boredom, or apathy. I feel all three of those every day.

I am telling you not to get stuck there.

Yes, all the things anxiety, boredom, and apathy tell you about your crazy thoughts and innovative ideas may be true. AND it may also be true that there’s a spark of genius in your crazy thoughts and truly disruptive thinking in your innovative ideas. But you won’t know if you don’t act:

  • When you feel anxious, ask a friend, mentor, or trusted colleague if the challenge is as big as it seems or if you have the skills to take it on.
  • When you feel bored, find a new challenge
  • When you feel apathetic, change everything

Your thoughts and ideas are valuable.  Without them, nothing changes, and nothing gets better.

You have the fuel.  Now, need to be brave.

We need you to act.

Kodak.  Blockbuster.  Google?  Is Disruption Claiming a New Victim?

Kodak. Blockbuster. Google? Is Disruption Claiming a New Victim?

You know the stories.  Kodak developed a digital camera in the 1970s, but its images weren’t as good as film images, so it ended the project.  Decades later, that decision ended Kodak.  Blockbuster was given the chance to buy Netflix but declined due to its paltry library of titles (and the absence of late fees).  A few years later, that decision led to Blockbuster’s decline and demise.  Now, in the age of AI, disruption may be about to claim another victim – Google.

A very brief history of Google’s AI efforts

In 2017, Google Research invented Transformer, a neural network architecture that could be trained to read sentences and paragraphs, pay attention to how the words relate to each other, and predict the words that would come next. 

In 2020, Google developed LaMDA, or Language Model for Dialogue Applications, using Transformer-based models trained on dialogue and able to chat. 

Three years later, Google began developing its own conversational AI using its LaMDA system. The only wrinkle is that OpenAI launched ChatGPT in November 2022. 

Now to The Financial Times for the current state of things

“In early 2023, months after the launch of OpenAI’s groundbreaking ChatGPT, Google was gearing up to launch its competitor to the model that underpinned the chatbot.

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The search company had been testing generative AI software internally for several months by then.  But as the company rallied its resources, multiple competing models emerged from different divisions within Google, vying for internal attention.”

That last sentence is worrying.  Competition in the early days of innovation can be great because it pushes people to think differently, ask tough questions, and take risks. But, eventually, one solution should emerge as superior to the others so you can focus your scarce resources on refining, launching, and scaling it. Multiple models “vying for internal attention” so close to launch indicate that something isn’t right and about to go very wrong.

“None was considered good enough to launch as the singular competitor to OpenAI’s model, known as ChatGPT-4.  The company was forced to postpone its plans while it tried to sort through the scramble of research projects.  Meanwhile, it pushed out a chatbot, Bard, that was widely viewed to be far less sophisticated than ChatGPT.”

Nothing signals the threat of disruption more than “good enough.”  If Google, like most incumbent companies, defined “good enough” as “better than the best thing out there,” then it’s no surprise that they wouldn’t want to launch anything. 

What’s weird is that instead of launching one of the “not good enough” models, they launched Bard, an obviously inferior product. Either the other models were terrible (or non-functional), or different people were making different decisions to achieve different definitions of success.  Neither is a good sign.

When Google’s finished product, Gemini, was finally ready nearly a year later, it came with flaws in image generation that CEO Sundar Pichai called ‘completely unacceptable’ – a let-down for what was meant to be a demonstration of Google’s lead in a key new technology.”

“A let-down” is an understatement.  You don’t have to be first.  You don’t have to be the best.  But you also shouldn’t embarrass yourself.  And you definitely shouldn’t launch things that are “completely unacceptable.”

What happens next?

Disruption takes a long time and doesn’t always mean death.  Blackberry still exists, and integrated steel mills, one of Clayton Christensen’s original examples of disruption, still operate.

AI, LLMs, and LaMDAs are still in their infancy, so it’s too early to declare a winner.  Market creation and consumer behavior change take time, and Google certainly has the knowledge and resources to stage a comeback.

Except that that knowledge may be their undoing.  Companies aren’t disrupted because their executives are idiots. They’re disrupted because their executives focus on extending existing technologies and business models to better serve their best customers with higher-profit offerings.  In fact, Professor Christensen often warned that one of the first signs of disruption was a year of record profits.

In 2021, Google posted a profit of $76.033 billion. An 88.81% increase from the previous year.

2022 and 2023 profits have both been lower.