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    Fri, 23Apr04, 10:07 AM EDT Contributed by:MidasGuy Views: 2106

    Competition (Other)"Most players go where the puck is. I go where the puck will be." -- Wayne Gretzky

    [This quote, or variants, have been attributed to many athletes, but I've from ice hockey country, so I'll stick with this attribution.]

    There is much talk about innovation these days, at least in the US media, which mostly seems driven by a conviction/fear that innovation is all we have left once all the rest of the jobs go "off-shore".

    I do accept that innovation has been fostered and nurtured by some of the traditional cultural attitudes in the US and Western Europe, and inhibited by some of the traditional cultural attitudes in India and many Asian countries. On the other hand, I am not so sure that those traditional cultural values aren't changing against us today. Looking at Asia recently, particularly China and Japan, but certainly not exclusively, I see all sorts of signs that innovation is creeping in, and cultural values which inhibit creativity are slipping away. At the same time, the US seems to be getting a bit stodgy, and innovation seems to be slipping. (more ...)

    So, what is the answer? I could follow my brothers, one of whom is already living in Thailand, and another is following him. In other words, we could go where the puck is now, but that hardly seems to address the issue. Nah, we need to go where the puck will be, and that means less geographically then mentally. Take a look around. As Thomas Friedman wrote in the New York Times yesterday, the Intel Science Competition involves 50,000 US kids, and six million Chinese kids. He says this means we need a Manhattan Project for science, and perhaps the US does, but I think it misses the point for us individually and for IBM generally. Let's say for a moment that we can't catch up and stay the innovators of the world. Let's just suppose that China is going to "win". So, where will the puck be then?

    To answer that question, stop looking at the priorities of today, and look at the priorities as they are likely to be tomorrow. What would a couple of billion Chinese people need (yes, India will soon have more people, but seems less poised for taking over the innovative leadership than China)? What will their priorities be? Resource allocation and efficiency (imagine a billion middle class Chinese trying to live like Americans and you picture a world stripped to the bone) is one top priority - making do with less. Business process is another, as the economies of scale for such a large population will demand it. Collaboration is another, since the Chinese culture is more integrated and less individualistic than ours, and will require more structured ways of communication and integration than some western businesses. Of course, it will be a slightly different collabroation than we use, but still collaboration.

    Lucky for us, collaboration is something we do. Business process too. So, how can we tailor those for a growing Chinese business class? The Chinese can do all the innovation they want, but if they find existing applications, technologies and methods of doing business that meet their needs, the resource allocation and efficiency priorities will play in our favor. They'll move on to innovate in other areas, such as nanotechnology and energy production and business streamlining, and leave us (the bigger us in this case) with the collaboration and business process and workflow and a billion customers. That's where the puck will be.

    Of course, if we aren't ready, or our software and applications don't work with their culture or language or mindset, they'll just innovate around us, and we'll be stuck the way Americans are with crappy cell phones while the Europeans and Asians are using a whole generation more advanced technology.

    So, I suggest that we (the smaller we, not the larger US or EC who may have different priorities) shouldn't necessarily try to out-innovate, but rather should make sure we are positioned properly for the wave and our surfboards are up to the task, and we'll be carried along too. Are you ready to catch the wave?

             

    Going where the puck will be | 2 comments | Create New Account
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    Going where the puck will be
    Authored by: jmichael on Fri, 23Apr04, 08:09 PM EDT
    Interesting. I assume everybody is still processing this story and isn't quite ready to comment. Before I get some sleep, I have one question off the top of my mind.
    They'll move on to innovate in other areas, such as nanotechnology and energy production and business streamlining, and leave us (the bigger us in this case) with the collaboration and business process and workflow and a billion customers.
    But wouldn't China look to buy all those in India, where prices should be lower? Or get the design/brainwork from US (big, small, whatever ;-) and buy implementation and services in India?
    [ Reply to This ]
    Going where the puck will be
    Authored by: MidasGuy on Mon, 26Apr04, 08:06 AM EDT
    Depends on how ready we are. For all the appearance of outsourcing happening at breakneck speeds, it actually takes a while for the process to get into motion. It is not surprising that while all the same incentives were in place during the dot com boom, much less outsourcing took place. This was not because companies had money to burn, but because time was seen as more essential than money, or at least short term money. Once the dramatic slowdown (dot bomb) took place, there was a much greater emphasis on money than time, so companies worked through the long slow process of building up outsourcing situations that would work for them.

    Now, if you look at the Chinese situation, the growth is incredible, and likely to continue that way for some time to come. Time is more important than short term money for the Chinese now and for the foreseeable future, so if we are positioned correctly, they will buy from us and keep going rather than wait to build lower cost channels in India and other such places. Of course, there is nothing to stop those from India or elsewhere figuring this out, except their culture and the healthy business they already have riding the current boom.

    I guess my point in all this is that you can't stop the wave of the future, whatever it happens to be, but if you are out in front of it and ride it, there will be plenty of room, whereas if you wait until the middle of the wave, you will be competing on price with a whole lot of others. This doesn't always mean innovation - in the sense that some people seem to think we can simply wait until the middle of the wave and then out-innovate the rest of the world. It simply means being ready to be the convenient choice for those charging on.

    Imagine a street where there were people selling water bottles on the side of the road for $2 each, and others selling water bottles half a block away for $1 each. On a sunny day when everybody was wandering about, the $1 each people would do well. On the day of a foot race, the $2 people would do well, and the $1 people would be stuck selling to the spectators. China looks to be a race, whereas the IT economy in the US and Europe is more of a wander in the park.
    [ Reply to This ]
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