“The vast majority of human beings dislike and even actually dread all notions with which they are not familiar... Hence it comes about that at their first appearance innovators have generally been persecuted, and always derided as fools and madmen.”― Aldous Huxley
In 1876 a young inventor in his late twenties approached one of the leading communications company in that era -Western Union- and offered them the opportunity to purchase the patents to his invention for $100,000 (equivalence of about $2 million today). Alexandra Graham Bell had just invented the telephone and was offering the invention to Western Union at a ridiculously cheap price. Western Union declined to purchase the innovation and the President (of Western Union), William Orton, famously said (regarding Graham Bell's invention)- "What use could this company make of an electrical toy".
Alexandra Bell and his partners launched the first telephone in 1878 and all it could do was provide communication for individuals within a couple of miles of each other. It was perfectly suited to short distance communication, a service that did not compete with Western Union -whose niche market was long distance communication via the telegram. Over a period of time the Bell company would improve on their technology and by 1910 purchased a controlling interest in Western Union - the same company whose president called Graham Bell's invention an electrical toy.
“In a world of change, the learners shall inherit the earth, while the learned shall find themselves perfectly suited for a world that no longer exists.” ― Eric Hoffer
As mentioned in an earlier blog, innovation is different from invention. Invention is the creation of a novel product, idea, service or process. Innovation does not stop at the creation of a better product, service or process but, includes the availability of the improved product, service or process to the community, market place, government.
With all the changes and complexities in today's world, there are five things (or more) we can learn from the Western Union story:
- never underestimate the power of little innovations; they are the seeds for tomorrow's big breakthroughs;
- don't be afraid to consider new ways of doing something even if the old way seems to be working and relevant today;
- it is dangerous to be guided (only) by short term results without thinking about the sustainability of the current business model in light of current and future customer needs and tastes;
- be wary of disruptive innovations that focus on customers who are currently not being served (or underserved) by your product or services;
- it's either we continuously innovate -as businesses, organizations, community, country, individuals- or be ready to die!
“If humans can live for 100 years, why do companies die so young.”― Sukant Ratnakar, Open the Windows
You Are Unique!
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