The Great Debate is whether or not, “Looking for the Next Big Thing,” is a worthwhile strategic approach or not? The answer is that it is certainly one of many strategic approaches that a company or management team may choose to use to succeed in today’s business world. There are five main aspects to consider when looking into, “The Next Big Thing;” (1) How is it found?; (2) What is the best way to look for it?; (3) Is there a new one every week?; (4) Is the person managing it capable of doing so?; (5) How is the decision made to go forward with it? (Llopis 2-4). By answering the above questions a genuine strategy can be developed to looking for and finding, “The Next Big Thing.”
Today’s leaders are looking for things that have the least risk, the highest monetary profit, and speedy marketplace influence (Llopis 1). These leaders experience tremendous pressure to find the next big thing, but they really have no idea where to look for it, and they need to find it fast (1). Today individual consumers have much more control over businesses and what they provide than in the past. Consumers have an abundance of information, choices, and intelligence which means businesses have to win them over in new ways (2). With the new ways of doing business companies are forced to find a more efficient way of selling to consumers. They must:; (1) have a better tactical outlook for boosting relations; (2) understand the importance of working with available talents, (3) have knowledge of required aptitudes; (4) respect interaction requirements; (5) comprehend how these things effect their employees and potential consumers (2). There are five strategies that will guide a business toward an upward path to growth opportunities (2).
The five strategies for upward mobility in regards to the next big thing are: (1) the management model must go hand in hand with the company’s own business model; (2) products must center on improving civilization; (3) efforts are made to lessen mounting stress aspects; (4) offices are a groundbreaking test center; (5) companies become smarter about people (Llopis 2-4). First it is important to make sure that the leadership team is capable of achieving its mission and that it is in line with your company’s goals (2). It won’t work to find the next big thing if your leadership team is disengaged and has no vision. Second, it is becoming more and more important that companies consider what the people want (3). People are becoming more socially responsible and with so many options for consumers, companies need to focus on how the next big thing will improve and affect the future. Third, companies must eliminate the stress aspects of developing and presenting the next big thing to the world (3). If these issues are not dealt with from the beginning there can be internal and external problems that develop that will devastate the new launch. Fourth, it is important that each employee feel that they have a part in the next big thing (3). This builds an entrepreneurial attitude within employees. This new sense of feeling part of the project will make room for creative thought. Finally, the fifth strategy is to have leaders look around (4). The next big thing is not always something new, but is a remake of something from the past that works better and smarter (Llopis 2-4). Leaders need to look beyond what is just in their face and look around. So what is the best way to look for the next big thing?
Looking for great opportunities is about increasing your field of vision (DeGraff 1). Many people are looking for the next medical advancement or a new technology instead of thinking a little smaller and focusing on what is already out in the world. How can something that is currently in existence, be made faster, cheaper, better and more efficient? (1). There are three main ways to discover the next big thing out of something that is already here: (1) figure out a need and meet it; (2) discover inefficiencies and repair them; (3) locate things that are too complicated and streamline them (2). By scrutinizing communications between buyers and customers, one can figure out what crucial needs are not being met. When watching when and where services are inconvenient, one can determine a better system, and by looking closely at different operating systems a person can see when things are far too confusing and find ways to simplify them (DeGraff 2). It is imperative as leaders within a company to create an environment where employees feel free to be creative. Within this environment, new discoveries can be made that can catapult a company towards, “the next big thing.” In some industries it seems like there is something new and improved every week.
How do executives determine which next big thing to consider and which to throw out from the start? Thornton May stated in an opinion piece by Computerworld that CIO’s have way too many big technology decisions to make today. “Two decades ago, ‘next big things’ came along at a leisurely pace, today, they surround us” (Null 1). Executives making decisions are so afraid that if they don’t get on board with, the next big thing, they will be left in the dust by other companies. Zuggard, believes it is far more important that CIOs determine if a new technology will really be in the best interest of the vision and goals of their companies (2). According to Manfredi, CIO’s should be more concerned about reaching company goals than trying the next big thing. If a new product is in-line with corporate goals, then it is worth exploring (3). CIO’s should be more than qualified to do quick and accurate cost benefit analysis of new products. This is their job.
Joan Wrabetz of QualiSystems, says that CIO’s are looking for “changes to their systems that give them a three percent change in speed or margin, or $1 billion in savings over three years” (Null 3) This is known as the three percent rule. Analyzing new technologies and testing them is part of the job for CIOs. It may have been a small part in the past, but today it is a regular occurrence. Huberman believes that some companies make technology changes easier than others and this is due to the type of CIO in the company (3). He believes that CIOs make their decisions based on one of two ways; one makes the decision based on panic and the other based on a wish to add worth or usefulness to the company (5). CIO’s are not the only people within a company that can push to bring in a new product.
Huberman also believes that CEO’s often have a large say in what new technologies are implemented within a company. He comments that a CEO may read about a new product in a prominent journal or may hear that a competitor is using it and will push the issue to bring the new product on board within his company (Null 6). Manfredi realizes that the next big thing usually tends to be sequential. Just because you may not have got on board with the first one, doesn’t mean you can’t catch the next (7). Marc Andreessen is a partner in a venture capital fund and in an interview with Adi Ignatius he reveals his opinion about the search for the next big thing (Ignatius 1).
Andreessen believes that entrepreneurs face many challenges today and sometimes investment opportunities just get away. A key ingredient in investing in a start-up, or next big thing, is having knowledge of who is running the show. When Andreessen looks into a new investment, he looks for a person that has three significant attributes; (1) they are a person who understands the creation and introduction of a new product or service; (2) they have a desire to start a new company; (3) they have the energy or mental capacity and the training to obey the code of conduct and become a CEO (Ignatius 2). Andreessen and his partner believe that CEO’s can be taught if they are already innovators, but you can’t teach a CEO to be an innovator (2). What are the dangers in the next big thing?
Getting involved with a start-up, according to Andreessen, has pitfalls. There are always senseless opportunities for investment (Ignatius 3). However, if you never take the risk, you will never get the big winner. It is important to look for companies that are looking to go for the long hall. Those companies are fixated on the core of what they do. They are not easily sidetracked (3). It is important for a start-up to have two years of worth of cash in their balance sheet to help them get through tough times (4). It is also important that the leadership of a start-up with the next best thing be dedicated to sales and marketing. If they are afraid to get in the market, no one will ever know about them and therefore never buy their product (6).
When looking for next best thing in a tech start-up, Andreessen says, the new company has its value in the innovation it’s bringing. It’s not about the value of the product it’s building, but about the value of the future products it will build (Ignatius 6). Sometimes products are just not made at the right time. This happened to many companies during the dot-com era (7). Some of the products from this era need to be reconsidered as they may have pertinent value today. Today’s world is a buyer-driven market (8). Start-ups need to develop products that today’s consumers feel they need. The big dilemma in focusing on a strategy of looking for the next big thing is to focus on how a decision will be made to purchase and get on board with it.
Decision making is a complex process when it comes to big business. Leadership needs to be continually focused on the needs of the company, the desires of its customers, the acceptance of its employees, and the pulse of the marketplace. Executives need to be willing to take risks and make decisions to get involved with, the next big thing (Boss 1). There are five major things to consider when making a decision; (1) the reason for the decision; (2) remembering that incorrect is never a life-long situation; (3) timing can be everything; (4) there are things that one knows will be unknown, and things that one will not know are unknown; (5) are the resources available (1-3).
It is imperative when making a decision to know what the purpose or reason for the decision is. In an organizational chain, it is vital to remember that the corporate vision always comes first. Second is how the team, employees or staff will be effected, and third how the decision will affect individuals (Boss 2). An individual is the least to be considered in a major corporate decision especially if that individual is the decision maker. Executives should always consider the corporate goals and visions top priority. The second matter to consider when making a decision is that even a bad or wrong decision is generally not a forever one (2).
“Failure is only determined by where you choose to stop” (Boss 2). How bad a decision was is determined by how those in charge perceive it. It is vital to get the input of all leadership to decide how to proceed when things go awry (2). Most bad decisions can be fixed or minimalized over time. An executive at one level might find the bad decision astronomical while one at a higher level may perceive it as inconsequential. An important thing to remember is that timing can be everything.
There are internal and external influences that alter the execution of a decision for the positive or the negative (Boss 2). If a decision is made too late, it can greatly affect the success of the choice. You can, “miss the boat,” as the saying goes. It is also true that if a company makes a decision too early, they may not be ready for it. All decisions need careful timing to be the most effective. The fourth consideration is, knowing the unknowns, and the unknown unknowns. A known unknown is when there is an understanding that there are specific intangibles that exist, but you cannot quantify how much. An example of this would be traffic, you know there will be some, but you don’t know how much or for how long (3). Unknown unknowns are things that many refer to as things that happen with Murphy’s Law. If it can happen it will. An example of this is an accident on the freeway stopping traffic when you are in a hurry (3). When making a big decision about the next big thing it is paramount that executives consider all the possible influences or problems as well as any potential ones that may arise.
The last consideration when making a big decision is, are the resources available to make the decision (Boss 3)? It makes no sense to get involved with, the next big thing, if you do not have the manpower, money, time, or intelligence to make it work. Software is great, but if you have no computer, it is useless. If you have a “next big product”, but no people to manage or run it, it is a waste of funding. Decision-making can stop a company in its tracks if it is not prepared to handle the outcomes (3).
So the question again is, “Is looking for the next big thing a worthwhile strategic approach?” My answer again is yes because wise leadership will answer these five questions before jumping into, the next big thing: (1) How do you find it?; (2) What is the best way to look for it?; (3) Is there a new one every week?; (4) Is the person managing it capable of doing so?; (5) How do you make the decision to go forward with it? (Llopis 2-4). When companies choose to be innovative, take risks, make wise decisions, and be forward thinking they tend to be successful. By keeping in mind that consumers are smart, have way too many options, and have great influence in today’s market, companies can stay ahead of the competition by using the strategic approach of “Looking for the next big thing.”
Works Cited
Boss, Jeff. “5 Criteria to Consider When Making Your Next Big Decision.” Entrepreneur 6 February 2015. Web. 12 July 2016.
DeGraff, Jeff. “The Best Way to Look for the Next Big Thing.” Linkedin Pulse 6 April 2015. Web. 12 July 2016.
Ignatius, Adi. “In Search of the Next Big Thing.” Harvard Business Review May 2013. Web. 12 July 2016.
Llopis, Glenn. “5 Strategies For Discovering The Next Big Thing in Your Business.” Forbes 26 May 2014. Web. 12 July 2016.
Null, Christopher. “Making It Decisions when the “next big thing” arrives every week.” TechBeacon 6 October 2015. Web. 12 July 2016.
