Nowadays, IT-systems are replacing more and more segments of daily life. One of the recent examples is the mass closing of brick-and-mortar shops in the USA because of Amazon’s popularity. Social and economic progress now depends on digitalization. Max Polyakov, who is the managing partner of Noosphere Ventures, considers innovation the essential factor of increasing business profit in the 21st century.
In the digital business sphere, there are strong associations with the Silicon Valley concept in the context of innovation success. But what exactly has made Silicon Valley’s creativity that notable? In his study of Innovation clusters, Max Polyakov underlines three major features necessary for capitalization and economic tenability.
At the forefront, the author mentioned investments. It’s never been a secret that Silicon Valley projects attract billions in investments. But, every time someone agrees to invest in a project, someone agrees with a particular amount of risk. Also, the investor should never forget that even the biggest amount of invested resources doesn’t guarantee a success.
As a second point, Max Polyakov named innovation management. When a business creates an already existing product, it is forced to enter an established market. But an innovative product can create its own market and be the first among its competitors, or even have no competitors for some time.
The last thing is the practicality of the idea. The product or the service should definitely have a practical purpose. Even the most innovative product with all the necessary resources won’t bring any profit if it is useless. Inventions are made to be used, not just to exist.
Max Polyakov considers trial-and-error in business development as the most common for creating innovations. To stay competitive, businesses should apply the uniqueness approach in tasks solving. Even a crew of engineers, scientists and students from a younger generation with not that much experience can generate innovations and for a sustainable information economy with this approach.
Max Polyakov concludes that the Silicon Valley business model can be recreated in any business environment with the help of the uniqueness concept.