The Best of Killer Innovations: How to Survive Changing Cycles and Accurately Forecast
Summary: Looking at our Best of Killer Innovations Series, we examine the dynamic nature of innovation and how to manage changing cycles best so that you and your ventures can succeed.<br> <br> Today's latest innovation can quickly be replaced with the next best thing tomorrow. Whether you're a newcomer to innovation or a seasoned innovator, there's something every innovator should know. How to forecast and survive <a href="https://www.philmckinney.com/understanding-law-patience-innovation-cycle/">cycles of innovation</a>. This week Ray Zinn, longest serving CEO of a publicly traded company in Silicon Valley, shares his insights—Ray's astute ability to <a href="https://killerinnovations.com/listening-skill-and-rules-of-future-forecasting/">forecast</a> what was coming enabled his company to survive the innovation cycles.<br> Sage Advice: Don't Work for Someone Else<br> In 1974, Ray's boss conveyed a bit of advice. Don't work for someone else. This advice set Ray on the entrepreneurial path. He started his own company. With $300,000 of self-funding, he started doing test services. It was challenging to start a company that was profitable from day one. Ray and his business partner managed it. By 1985, their company, Micrel Inc., hired engineers and started designing their products. Eventually, Samsung selected Micrel technology for their first cell phones. With blue chip clients, numerous inventions, and patents in wireless radio and other areas, Micrel went public in 1994. Micrel was profitable every year through 2001. Although Ray had to rebuild the whole company, it remained profitable.<br> Forecasting Innovation Cycles<br> How do you lead companies through the high rate of innovation change? Ray was able to accomplish this. Ray learned the cycles of innovation so he could forecast them. You have to know the cycles to<a href="https://killerinnovations.com/technology-megatrends/"> predict </a>them for your company. How do you do this? Your <a href="https://www.philmckinney.com/are-customers-a-source-of-ideas-for-innovation/">customers</a> are your best lead. The key to surviving these cycles is understanding them. <a href="https://philmckinney.com/innovation-adoption/">Cycles </a>last at the most five years. You must anticipate what is going to be the following <a href="https://killerinnovations.com/how-to-ask-questions-to-find-new-ideas/">winning product</a>.<br> Getting Your Board Right<br> What were the insights Ray wished he had early on? Be careful about your Board. He elaborated on his biggest mistake – not being more selective about his <a href="https://killerinnovations.com/innovation-leadership-the-role-of-the-ceo-board-and-the-innovation-advisory-board/">Board of Director</a> participation. Having a viable, helpful, and contributable Board is critical. You want members who roll up their sleeves and add value where needed. You don't need board members to pick you apart and create tension. Ray believes that Boards must focus less on what investors or shareholders want. They must emphasize what is best for the company and adds sustainable value. Boards should not be too independent. Independence leads to disconnect and a lack of understanding of a company's intricacies and operations.<br> With his wealth of experience in the heart of the world's startup capital, Ray wanted to give back. He created the Zinn Starter, a seed investment firm akin to Shark Tank for universities. Almost every university in this country has an entrepreneur program. The Zinn Starter consists of students taking their business ideas before a Board. If the Board approves the concept, the student can start a company while still a student. Zinn Starter is limited to fully enrolled university students. It is part of the entrepreneur program for six universities. The program has been running for two years, with over five thousand students participating.<br> Ray has also written a book called Tough Things First.
