What Theoretical Physics Brings to Entrepreneurship

http://de.slideshare.net/coilpsu/klemmer-presentation, p.5

Quite by serendipity, having lunch with a theoretical physicist from Asia some days ago I learned that theoretical physics is not plain theory, but the science field trying to make sense of seen reality. In short an experimental physicist finds a new material, which has some "unexpected" properties (that is the practical part). However, as Kurt Lewin (1890-1947), the famous German-American experimental social psychologist, is quoted, "There is nothing more practical than a good theory" which underlies and explains that real-life phenomenon. For this very same reason theoretical physicists then work to figure out, with the help of computer simulations, perceived patters of reactions of the material due to change of particular parameters, and known knowledge, what the underlying root causes of the new material's properties, and how they can be used, and eventually made practical in future applications.

What has all this to do with entrepreneurship, and eventually innovation?

Let's have a look at innovation and how it comes (in various forms) into the world, and to practical use. Peter Drucker, "management guru" and "Renaissance Man" of the 20th century well respected in the global business community in some form laid out a "theory of innovation", namely the sources of innovations that lead eventually to their economical success. In "Innovation and Entrepreneurship" he lays out seven distinct sources, which range from "The Unexpected" to "New Knowledge". See Andre Kearns' Slideshare  presentation for a good overview of these (and a condensed overview of the book itself) here.

Quite often the public focuses on the innovation based on new knowledge, such as technology-based (generally on new knowledge), and wonders why innovation is not taking off shortly after discovery, and first prototypes of possible products or services based on it. Due to Drucker this kind of innovation is the one with the longest lead time (and quite a high loser rate, due to the shift of other relevant parameters that change over time, especially shifts that touch society as a whole, such as demographics, immigration, or world politics) this should "In the theory and practice of innovation and entrepreneurship, the bright-idea innovating belongs in the appendix" ("The Daily Drucker", 20 July, p. 220).

So making sense of how innovations diffuse into society (and not just on some edges due to price, or perceived value by a minority) is more challenging than it looks like at first sight. Prof. John D. Sterman, Jay W. Forrester Professor of Management, Director MIT System Dynamics Group, not only gave quite a thought-provoking presenting in early 2008 stating that "technological solutions are not enough to address the problem of creating a sustainable world" but has covered the issue of innovation diffusion in his book "Business Dynamics - Systems Thinking and Modeling for a Complex World" (chapter 9.3, Innovation Diffusion as Infection: Modeling New Ideas and New Products, p. 323-347).

So the question stays, "What does it need to bring innovations into the world?"

To close this post, and keep the question open that underlines Kurt Lewin's "There is nothing more practical than a good theory", perhaps it is time for what Jay W. Forrester envisioned in 2007 at the International System Dynamics Conference in Boston in his speech "System dynamics - the next fifty years" and his statement at the end of the speech, "We should be able to move sufficient understanding of the behavior of complex systems into the public sector."

Isn't a "school of thought" (even a quite independent department of an existing university), based on theory and practice alike, the "perfect" place to make this happen?

2012 - Innovation and Entrepreneurship

With the first day of the year 2012 coming slowly to an end here in Dresden (another five hours to go ;-)), my thoughts race back to late 2008 when I decided not to work for a consulting firm, rather venture out on my own. Coming from an engineering family (with roots in tailoring, and shoemaking), my mind seems to find new opportunities to create new business ideas, and ease the constraints in given business processes (almost unstoppable, as former bosses had to find out).

Copyright: http://antjelippold.com

So after a visit to a really strange business school with no teachers, only a head coach, and a couple of coaches, up in Finland it became clear to me that I am by far not the only "crazy one", and that it needs the appropriate environment to let geniuses shine their hidden capabilities.

Since those days, I read and write, reflect, and act more than in the decades before when I often was forced to be a "cog in the system" yet nothing could really stop my desire to make the world (around me) a better place, step by step (preferably small (!) ones, yet continuously).

"Innovation and entrepreneurship are thus needed in society as much as in the economy, in public-service institutions as much as in businesses. It is precisely because innovation and entrepreneurship are not "root and branch" but "one step at a time," a product here, a policy there, a public service yonder; because the are not planned but focused on this opportunity and that need; because they are tentative and will disappear if they do not produce the expected and needed results; because, in other words, they are pragmatic rather than dramatic and modest rather than grandiose - that they promise to keep any society, economy, industry, public service, or business flexible and self-renewing. They achieve what Jefferson hoped to achieve through revolution in every generation, and they do so without bloodshed, civil war, or concentration camps, without economic catastrophe, but with purpose, with direction, and under control."

Quoted from Peter F. Drucker, Innovation and Entrepreneurship, 1986, p. 254

Pulling the knowledge currents into action - sparked by John Hagel

How do we engage teams in ever increasing platforms that the new web age brings up?

Examples from my own work experience:

• creating a knowledge team around bringing a new tracking software (of containers) across several European countries on just a virtual collaboration
• being a major facilitator for making the new BMW Plant Leipzig a reality, again especially in dealing and mentoring team members spread across the BMW network
• envisioning the concept of a virtual lean consulting community, which eventually resulted in creating the concept of LockSchuppen - Unlocking Creative Minds
• ...

What are the sparking moments of your life time where similar happened?

Behavioral Economics - when clusters do not work

Today I learned - once again- from a local cluster manager that any event inviting experts (which of course cost a few Euros) is not feasible nor doable. The local hightech companies would not be in the position to do so. Especially as the Eastern German part of the country still is the "extended work bench" of Western Germany, or other global corporations.

What I have seen for the last 18 years (1993 I was working as an assistant in the archeological institute in Dresden for 8 weeks, pretty much entrenched into the Eastern German culture and history) there is potential in the locals and local companies to raise well on top of the corporate world. However something is in play in the economic "system" that hinders the uprise.

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May it be the state funding that is constantly being infused into the country? May it be "closed circles" of "men in grey flanell suits"? May it be a lack of money on the banks and VCs that almost are non-existent (compared with the Silicon Valley situation)?

Who knows. What I know is that there is something happening underneath the surface, nobody wants openly to talk about.

What is the unquestionable that hinders entrepreneurs, startups, and free-thinking people to get to their real potential in life and work?

A short glance in Edgar Schein's book about culture opens new worlds of understanding.

What do you think is reasoning the behavior?

Lightspeed thoughts on entrepreurship

Picture: Deutsche Werkstätten Hellerau

Vivek Wadhwa at Stanford (120 min (!)) - video
Who is the first politician to comment?
Wer ist der erste sächsische Politiker, der kommentiert?

Time for a shift in the world and SAXONY, as well.

Picture on left is the Silicon Valley of its day on the outskirts of Dresden:

DRESDEN-Hellerau

How to Do Cool Things to Change the World

Alex Lightman, organizer of Humanity+ at Harvard in June 2010 (which was actually livestreamed at CoOrpheum in Dresden), with some awesome ideas of changing your entrepreneurial attitude and action.

Thanks Alex! Inspiring to the bone!

A small group CAN make a CHANGE

The most positively disturbing article for quite some time on entrepreneurship and the "game change" by Vivek Wadhwa. Following the essential:


"There is nothing to prevent there being many Silicon Valleys and nothing to stop most regions in the world from innovating. The focus just has to change from investing in real estate to investing in people."

In Search of Meaning

IndyJohar, architect and community builder of the HUB Network,
just recently RT one of my tweets on ViktorFrankl.

In our search of excellence we have to always go the long way
going for a goal that we can't achieve today.

It can be rather uneasy to go that EXTRA MILE and yet as
SethGodin coins it, we are in an "Entrepreneurial Revolution"

What is it you're striving for?

Extrapreneurs - a new business design piece?

1. Entrepreneurs are setting up new ventures.
2. Intrapreneurs are doing similar within a corporate cocoon.
3. Team Entrepreneurs, similar to TeamAcademy, the "management school without teachers".
4. Extrapreneurs, not yet defined to my knowledge.

Extrapreneurs may come from within a corporate position, which enabled them to stabilize and find their true passion. Once the pull of passion is stronger than staying at the organization, they move out of the organization's orbit (on a very very" loose leash").

Extrapreneurs have two eyes into the future of business, one is focusing on their own passion they want to become reality, the other one is focusing back on where they have come from (the organization they are still mentally connected). In this context, they are the boundary spanners enabling organizations to see and explore the future with them together for positive impact.