Cover of Beyond Entrepreneurship by James Charles Collins, William C. Lazier - Business and Economics Book

From "Beyond Entrepreneurship"

Author: James Charles Collins, William C. Lazier
Publisher: Business & Professional Division
Year: 1992
Category: Business & Economics

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Chapter 8: Innovation
Key Insight 3 from this chapter

Experimentation and Mistakes

Key Insight

Innovation inherently involves uncertainty, making continuous experimentation the most effective method for validating ideas. This process invariably generates mistakes, which are not failures but indispensable learning opportunities. Thomas Edison famously demonstrated this by enduring over 9,000 iterations to invent the light bulb, stating, '9,000 times I’ve learned what doesn’t work.' This iterative cycle of trying, learning, and correcting is fundamental to innovation, akin to a guided missile constantly adjusting its path through numerous small errors to reach its ultimate target.

Many breakthroughs arise from a simple 'Just Do It' mindset—a willingness to try things and observe outcomes, even if conventional wisdom advises against it. Examples include Reebok’s 'crinkle' shoe leather, which resulted from a production error, and the accidental popcorn experiment that revealed the potential of microwave cooking. Brian Maxwell, an Olympic marathoner, developed Powerbars by solving his own problem of 'hitting the wall' during races, engaging in extensive kitchen experimentation despite rejection from larger companies. Fostering this culture means empowering individuals to act without excessive approval, often finding that it's easier to ask for forgiveness than permission.

Successful experimentation demands 'easy endings,' allowing projects to be kept small and quickly terminated if unsuccessful, preventing sunk costs from dictating continuation. Novellus Systems, for instance, uses a 'less is more' approach, starting with a few engineers and scaling up only when viability is clear. While market failures are costly, highly innovative companies embrace them as learning experiences. Apple's early product failures, the Apple III and Lisa, directly informed the successful Macintosh, and Henry Ford's earlier models paved the way for the Model T. Distinguishing between 'good mistakes' (diligent efforts) and 'bad mistakes' (sloppy execution) is crucial, as the value lies in the lessons learned, promoting a 'popcorn image' of numerous, rapidly executed experiments across the organization, often supported by internal venture funds and a culture of persistence.

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