Great technology leads to innovative solutions that are possible, but not necessarily great businesses. Rube Goldberg illustrated this principle many years ago in cartoons, but I still find inventors that are creating solutions today looking for a problem. In addition, every solution has to fit into the current political, cultural and economic environment to make it a viable business.
For example, hydrogen-fueled engines were invented over a century ago, with a continuing promise of breathing air and exhaling pure water vapor and having over 200 companies active in the hydrogen sector today. Yet, due largely to non-technology business considerations, including pricing, safety concerns and support infrastructure, there are none that most people can name.
Every entrepreneur needs to keep a priority focus on these big-picture business issues, well before he commits his resources and his future to a technology that he loves. Here are some specifics that I recommend as a startup advisor for maintaining a properly balanced perspective.
Finally, remember that investors fund business people before technology. They look for expertise and experience in building a business as a higher value than expertise in building a solution. An even more fundable alternative is a pair of founders, one with business credibility and the other with the relevant technology expertise. It’s a clear example of how one plus one can equal three.
Successful entrepreneurs must understand and fit into the world today, and it’s getting more complex every day. In today’s world, social and environmental values often are more important success drivers than technology. The most important technology in business may be the business intelligence and big-data tools to curate the real needs in every business segment.
In fact, most customers no longer care about and many actively fear and avoid new technology. Thus technology is best hidden under better user interfaces, and simple yet powerful solutions to their problems. Can you imagine Facebook and the iPhone being sold as paradigm shifts in technology? Yet both are new technologies that have garnered huge business opportunities.