When we were given the opportunity to review a book that related to our entrepreneurship class I had one goal in mind, I wanted to find an author that was not the typical writer. I did not want a sixty-five year old professor who would give me dry explanations about theories and business models that I had covered in class. Frans Johansson was raised in Sweden and received his bachelor’s in Environmental Science then earned his MBA. Johansson was just what I had been searching for, someone who was applying concepts in ways that would help me throughout my own career.
The book’s title The Medici Effect makes reference to one of the most innovative and creative families that have existed in ...view middle of the document...
The author makes a claim that companies should not just innovate for the sake of trying anything they think of. His counterargument is that new innovation has to create some kind of worth. If an organization thinks of a new idea that has been being used throughout the industry for the past ten year their “new” idea has zero worth. Value must be created from innovative ideas if a company wants to stay relevant. While the company can think they have valuable ideas the valuation ultimately falls upon the customer and their feelings, if the customer deems the new change unworthy then it is back to the drawing board.
One of the articles we read during class correlates with Johansson’s ideas on multiple perspectives. The procedure of convergent and divergent thinking and how they differ was a point in Gautam’s “Conceptual Blockbusters: Creative Idea Generation Techniques.” Divergent thinking is the methodology that we can think the usual solutions to find new and even better ideas. This is possible to come from a single mind but when groups of people come together the power of this increases exponentially. These new ideas tend to hold their value within the company and to the future consumers.
Johansson states that there are two categories of ideas, directional and intersectional. Directional ideas tend to follow anticipated steps and follow a defined feature. The method here is to take an already proven situation, recreate it, and slightly tweak it so to expect similar results. Directional ideas are the ideas we encounter most often, these are the fourteen editions of Apple’s iPod within two years. These directional ideas are a stark comparison to intersectional ideas. Intersectional ideas are the ideas that are fueled by innovation, these ideas are those that create new markets and change the world. While directional ideas need to be groomed by those with experience intersectional ideas can come from those with no prior experience, an added benefit.
The author continues the text by detailing different companies and how they changed their respective market. Pixar and Disney were able to completely reinvent the animated movie market after using old technology in a new way. This allowed them to take control and start a market few had thought of. The next setting was when the owner of a top-tier New York restaurant handed over his kitchen to a twenty-four year old chef. While these two companies decided to take huge risks in their individual futures they saw that they needed to make a drastic change in order to stay successful. These were also two very good examples of intersectional ideas in the text that helped to clarify a confusing topic.
The next few short stories focus on building the “Medici Effect,” also known as creating innovation. The first step involved breaking down the barriers that exist between different people, learning cultural backgrounds and education backgrounds before you overlooked a problem. Next came finding the...