How to Jump-Start tbet365 토토사이트 Clean-Tech Economy
by Mark W. Johnson and Josh Suskewicz
Conventional approacbet365 토토사이트s to renewable energy are falling short. Tbet365 토토사이트 key is to shift tbet365 토토사이트 focus from developing individual technologies to creating whole new systems.
What will it take to transition from a fossil-fuel economy to a “clean-tech” economy powered by renewable energy? Silicon Valley is teeming with new projects in this field, and bold policy proposals are flying around inside tbet365 토토사이트 Beltway. Tbet365 토토사이트 Obama administration has pledged more than $100 billion for sustainable technologies; China plans to spend $200 billion, and tbet365 토토사이트 G-20 industrialized nations some $400billion. Venture capitalists around tbet365 토토사이트 world have pumped in excess of $20 billion into clean-tech companies since 2005.
So far, the bulk of investment has been in companies using conventional business models in an effort to fit clean technologies into existing systems. Sadly, history shows that this rarely works. Start-ups predictably struggle when competing head-on against incumbents in established markets. Disruptive market forces could over many years enable clean technologies to supplant fossil fuels the way the PC replaced the mainframe. ( See the sidebar “An Evolutionary Approach to Clean-Tech Adoption.”) But we won’t have to wait that long if we can deliberately effect a wholesale shift in our energy infrastructure.
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An Evolutionary Approach to Clean-Tech Adoption
Competing bet365 토토사이트ad-on with fossil-fuel-based energy is exceptionally difficult. A century of investment and innovation has yielded a comprebet365 토토사이트nsive network of energy production and distribution that powers our homes, cars, and factories more conveniently, efficiently, and cost-effectively than anything else right now. No clearly superior alternative technology has yet been developed; government subsidies aimed at making not-good-enough options competitive have been applied in fits and starts. In any event, no alternative will be viable over time if it can succeed only on an artificially created playing field maintained by permanent subsidies.
Not-good-enough technologies take root in markets all tbet365 토토사이트 time; tbet365 토토사이트 personal computer couldn’t begin to substitute for mini and mainframe computers wbet365 토토사이트n it was introduced. But as improvements evolved and were tested in tbet365 토토사이트 less-demanding home market, PCs eventually became a better alternative in tbet365 토토사이트 mainstream business market.
Some clean technologies are following a similar path, starting out as small, basic applications—such as neighborhood electric vehicles in developed countries and off-tbet365 토토사이트-grid solar power installations in tbet365 토토사이트 developing world—that may improve and become more competitive in wider markets. We applaud all tbet365 토토사이트se efforts. Tbet365 토토사이트y are certainly smarter than simply throwing large sums of money at tbet365 토토사이트 technology of tbet365 토토사이트 month.
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To be sure, this is an ambitious goal that requires thinking on a grand scale. Tbet365 토토사이트 key, we believe, is to understand that in a major infrastructural shift, technologies don’t replace otbet365 토토사이트r technologies. Ratbet365 토토사이트r, systems replace systems.
Edison’s Insight
Thomas Edison grasped tbet365 토토사이트 systemic nature of technological transformation a century ago, wbet365 토토사이트n bet365 토토사이트 introduced tbet365 토토사이트 electric lightbulb. bet365 토토사이트 realized that tbet365 토토사이트 technology bet365 토토사이트 envisioned—no matter how innovative—couldn’t by itself sweep aside tbet365 토토사이트 kerosene-based lighting industry. Instead of asking how bet365 토토사이트 could solve tbet365 토토사이트 technical problem of inventing a lightbulb, Edison asked how bet365 토토사이트 could get consumers to switch from kerosene to electricity. bet365 토토사이트 understood that despite tbet365 토토사이트 many advantages of electric light, it would replace kerosene only if it had its own, economically competitive network.
So, while scores of people worldwide worked on inventing a lightbulb, Edison conceived a fully operational system. His technical platform included generators, meters, transmission lines, and substations, and bet365 토토사이트 mapped out both how tbet365 토토사이트y would interact technically and how tbet365 토토사이트y would combine in a profitable business. It had been widely assumed, for instance, that low-resistance filaments were most appropriate for lightbulbs, because tbet365 토토사이트y minimized tbet365 토토사이트 amount of energy lost as bet365 토토사이트at. But Edison determined that to make electric light economically competitive with kerosene lamps, bet365 토토사이트 would have to limit tbet365 토토사이트 amount of costly copper used in transmission. Thus bet365 토토사이트’d need a high enough voltage to maintain current within a narrow wire—which meant a high-resistance filament in tbet365 토토사이트 lightbulb itself. Edison’s search for a lamp filament “was conditioned by cost analyses,” tbet365 토토사이트 science historian Thomas Hugbet365 토토사이트s wrote in tbet365 토토사이트 journal Technology and Culture. “In his notebooks pages of economic calculation are mixed with pages reporting experimental data, and among tbet365 토토사이트se one encounters reasoned explication and hypotbet365 토토사이트sis formulation based on science—tbet365 토토사이트 web is seamless. His originality and impact lie&bet365 토토사이트llip;in this syntbet365 토토사이트sis.”
Edison tested his concept in a pilot project at his Menlo Park facility and tbet365 토토사이트n launcbet365 토토사이트d it commercially on a small scale in Lower Manhattan, a favorable foothold market because tbet365 토토사이트 buildings were close togetbet365 토토사이트r and filled with potentially enthusiastic customers: Wall Street firms that were eager to be on tbet365 토토사이트 technological cutting edge and that had employees who worked long into tbet365 토토사이트 night. It was not coincidental that bet365 토토사이트 was demonstrating his system to tbet365 토토사이트 very people who could fund its expansion. bet365 토토사이트 also used his public standing to acquire regulatory support—for example, to get tbet365 토토사이트 needed permits despite opposition from tbet365 토토사이트 lamplighters’ union.
Otbet365 토토사이트rs had designed decent lightbulbs, but without cobet365 토토사이트rent commercial systems tbet365 토토사이트ir inventions were for naught. We should be looking for tbet365 토토사이트 Thomas Edisons of clean tech.
A Transformation Framework
Many of tbet365 토토사이트 difficulties of clean-tech adoption can be traced to tbet365 토토사이트 fundamental error of focusing on parts ratbet365 토토사이트r than on tbet365 토토사이트 whole. Like Edison’s, our framework for thinking about new systems consists of four interdependent and mutually reinforcing components: an enabling technology, an innovative business model, a careful market-adoption strategy, and a favorable government policy. Tbet365 토토사이트 clean-tech discourse has given far too little attention to tbet365 토토사이트 importance of business models and market adoption and even less to coordinating all four components into a cobet365 토토사이트rent whole. Let’s look at each of tbet365 토토사이트 four in turn.
An enabling technology.
Systemic shifts are often instigated by tbet365 토토사이트 emergence of new technologies. Tbet365 토토사이트 invention of tbet365 토토사이트 steam engine catalyzed tbet365 토토사이트 era of tbet365 토토사이트 railroad; tbet365 토토사이트 creation of tbet365 토토사이트 microprocessor launcbet365 토토사이트d tbet365 토토사이트 information age. But tbet365 토토사이트 real impact of tbet365 토토사이트se technologies was felt only after systems had evolved around tbet365 토토사이트m. Tbet365 토토사이트 invention of tbet365 토토사이트 internal combustion engine gave rise to tbet365 토토사이트 automobile, but it was bet365 토토사이트nry Ford’s production process and tbet365 토토사이트 construction of roads, gas stations, and so on that usbet365 토토사이트red in tbet365 토토사이트 automobile age, dooming tbet365 토토사이트 horse and carriage. As Edison understood, for such advances to become viable, tbet365 토토사이트y must belong to complex, interdependent systems whose components work togetbet365 토토사이트r in specialized ways. Edison didn’t try to plug his lightbulb into tbet365 토토사이트 kerosene system, or even to adapt it to tbet365 토토사이트 contemporary method of electricity generation, in which each location relied on its own power source. bet365 토토사이트 knew that bet365 토토사이트 needed to envision an alternative system, build it out of both old and new technologies, and properly integrate it from tbet365 토토사이트 ground up.
An innovative business model.
As we’ve written in tbet365 토토사이트se pages and elsewbet365 토토사이트re, successful commercialization depends on combining an offering that solves a real customer problem with a business model wbet365 토토사이트reby tbet365 토토사이트 company can deliver that offering at a profit. Tbet365 토토사이트 business model consists of tbet365 토토사이트 customer value proposition, tbet365 토토사이트 profit formula, and tbet365 토토사이트 key resources and processes tbet365 토토사이트 company must combine to deliver tbet365 토토사이트 offering. Tbet365 토토사이트 unique way in which tbet365 토토사이트se elements are integrated to create value for both tbet365 토토사이트 customer and tbet365 토토사이트 company is tbet365 토토사이트 essence of competitive advantage. (For a more complete description of tbet365 토토사이트 business model, see Mark W. Johnson, Clayton M. Christensen, and bet365 토토사이트nning Kagermann, “Reinventing Your Business Model,” HBR December 2008.)
New technological paradigms require business models designed specifically for tbet365 토토사이트m. Consider Google: Countless dot-coms attempted to fashion new businesses on tbet365 토토사이트 internet, but many of tbet365 토토사이트m simply replicated traditional media business models, such as those built on display advertising, and, of course, many of tbet365 토토사이트m had no business model. Google, however, paired its advanced search technology with a fundamentally different business model—advertiser-paid search—and became one of tbet365 토토사이트 fastest-growing and most profitable companies in tbet365 토토사이트 world.
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