The surprising way to come up with your next business idea — Hal Gregersen

Hal Gregersen, Executive Director of the MIT Leadership Center

Hal Gregersen, Executive Director of the MIT Leadership Center

From Fortune

Scott Cook, founder and CEO of Intuit INTU -0.43% , didn’t come up with his concept for the popular Quicken money management software sitting behind the desk or spit-balling ideas in a brainstorming session. He first conceived of it while watching his wife grow increasingly frustrated preparing the family’s finances. From a single observation, combined with Cook’s understanding of computers, one of the world’s most successful financial software companies was born.

Consider all of the times you’ve asked yourself: “Why didn’t I think of that?” Indeed, the world’s next pioneering innovation could be sitting in plain view for anyone to discover. But what is it that inspires some people to take the next step on something overlooked by others?

Our research of high-impact leaders shows about one-third of them fall into the camp of observers –carefully observing the world around them with all of their senses, and identifying common threads across often unconnected data to provoke unique business ideas. Observation has transformative power. Yet, in today’s 24/7 culture, many of us operate on autopilot, starving our brain’s creative capacity. Here are three ways to tune this critical discovery skill and increase the odds that your next observation adds up to great innovation.

Schedule It

The most obvious way to become a great observer is to actively observe. Take a page from Cook’s book and watch your spouse or child perform a task. Schedule observation excursions; pick a company to follow, or set aside 10 minutes to observe something intensely. Following observation periods, think about how that might lead to a new strategy, product service or production process.

Read the full post at Fortune.

Hal Gregersen is Executive Director of the MIT Leadership Center and a Senior Lecturer in Leadership and Innovation at the MIT Sloan School of Management.

Startup Resolution 2017: Embrace Believers, Bounce Skeptics & Keep Moving – Bill Aulet

MIT Sloan Senior Lecturer Bill Aulet

MIT Sloan Senior Lecturer Bill Aulet

From Xconomy

The holiday period is a great time for reflection and then behavior modification – often referred to as resolutions. While a bit artificial to the logical engineer, this opportunity can be helpful. This year, my favorite insight came from a former student and employee, Elliot Cohen, co-founder of PillPack.

While thinking about the major aspirational goals for the upcoming year that motivate me to get out of bed every morning with high energy and purpose – such as getting my second book out in March, significantly raising the endowment of the Martin Trust Center for MIT Entrepreneurship, developing the concept of “Inclusive Entrepreneurship” to battle the deep societal alienation we have seen in 2016, and, of course, just becoming a better entrepreneurship educator to my students – there is one underlying enabling resolution that can help me achieve all of them more efficiently and effectively.

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Why entrepreneurs in the developing world need new funding models – Fiona Murray

MIT Sloan Associate Dean for Innovation Fiona Murray

MIT Sloan Associate Dean for Innovation Fiona Murray

From City A.M.

Increasingly, it is innovation-driven entrepreneurs who are providing effective and scalable solutions rather than aid agencies or governments.

Traditionally, the focus of entrepreneurship in the developing world has been on creating small- and medium-sized enterprises serving local markets. However, that emphasis must shift from small firms to what MIT calls innovation-driven enterprises: start-ups that can scale for significant impact.

Building an innovation-driven enterprise is full of challenges for any entrepreneurial team. They must find an appropriate beachhead market, prototype and pilot, and recruit and retain top talent. They also require specialised entrepreneurial finance at each stage.

For development entrepreneurs, access to appropriate types of capital is a significant constraint.

Their challenges are not just about the limited availability of institutionalised venture capital, but to the full range of “risk capital” options, from initial financing by friends and family and angel investors to VCs, private equity and commercial banking. The creation of a pipeline of financial instruments is a critical bottleneck.

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Cuba and entrepreneurship: An MIT MBA’s reflections — Alanna Hughes

MIT Sloan MBA Student Alanna Hughes

MIT Sloan MBA Student Alanna Hughes

Soñar no cuesta nada. Dreaming doesn’t cost anything.

As I conclude a study trip to Cuba, I am reminded of this expression that a Dominican colleague frequently used. Whenever I would “think big” – first as a Peace Corps Volunteer, and later as a social enterprise director in the Dominican Republic and Haiti – my friend Hector Romero had the ability to both encourage my idealism and remind me of the challenging reality with this simple phrase.

As someone who came to business school directly from entrepreneurship work in other parts of the Caribbean, I want to dream for Cuba. I want to hope that it is on the brink of something groundbreaking for all those in the island nation with an entrepreneurial bent. However, after having studied it more in-depth, and after having spent time in Havana, my optimism is tainted by some of the skepticism I’d perceive in Romero’s voice years ago. While Cubans as a society should dream big, the prospect of larger-scale innovation driven entrepreneurship, still feels like…well, a dream.

If Cuba truly wishes to become more entrepreneurial, it will need more than its bright minds’ aspirations. It will need to financially invest and politically change – both of which undoubtedly generate significant costs.

Like many dreams, increasing entrepreneurship in Cuba is grounded in some reality. When conducting behavioral science research to prepare for our time in Havana, I stumbled upon several examples of Cuban “hacks” to provide solutions to problems resulting from scarcity, isolation, and censorship. One common example is the paquete semanal – a collection of illegal classifieds, music, and TV series, among others – that is distributed on Cuba’s black market as a substitute for broadband internet. Other examples include metal meal trays repurposed as antennas and chargers built from non-rechargeable hearing aid batteries.

Beyond grassroots creative capacity, Cuba also possesses a highly educated populace that includes thousands of trained STEM graduates well suited to contribute to high tech businesses. Only about 200 miles separate Havana’s inventive and technical minds from Miami’s growing start-up scene and its gateway into other American innovation hubs. From a talent perspective, Cuba appears to hold a lot of untapped potential.

But will this human capital really be so easy to engage? Although our flight from MIA to HAV only lasted 45 minutes, it was clear as soon as we stepped out of Havana’s small airport onto its antique car trafficked streets that we had landed a world away. In spite of the hype we had heard in the American press about Cuba’s ability to “open up,” a lot of the gates currently remain under lock and key.  So few Cubans have regular access to the internet; they have only been allowed to own personal computers and cell phones since 2008, and wifi is only available in a handful of CyberPoints and hotel lobbies – at $5 per hour through pre-purchased cards.

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The best training for entrepreneurship? Hint: She doesn’t sleep through the night — Trond Undheim

MIT Sloan Sr. Lecturer Trond Undheim

MIT Sloan Sr. Lecturer Trond Undheim

From WBUR Cognoscenti

My best ideas come to me between the hours of 2 and 4 a.m. This is not by design — in fact, I wish it weren’t the case — but, as an entrepreneur, I roll with it. My third child is a terrible sleeper. In her two years, she hasn’t slept through the night once. When she wakes up in the wee hours, and it’s my turn to comfort her, sometimes I can’t fall back asleep. I tiptoe out of the room, flip on my iPad, and work on my new startup.

It’s counterintuitive, but of all the experiences I’ve had over the course of my life — including starting a business incubator, stints in government and at big corporations, and teaching in MBA programs — perhaps the thing that’s prepared me most for entrepreneurship is parenting.

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