Why Innovation is Crucial to a 5.0 World
From the Heartland Series based on the book – Industry 5.0
When Thomas Edison famously invented the lightbulb in 1879, it was truly a miracle of science. Up until then, to get light, we needed to burn something and create a flame, such as kerosene or wood. The invention was a fully self-contained light machine that you could hold in your hand. It was revolutionary! Not only was it a significant invention on its own, but the lightbulb also spurred the entire electrification and power generation industries. Lightbulbs are literally in use everywhere, and we could have stopped there, but our friend Maslow says, “not so fast”! As life-changing as incandescent electrified light was, there is also the downside of its terrible inefficiency.
The incandescent lightbulb is suffering its demise partly because of its broad adoption across the globe. Every year, over 7 billion bulbs are sold, and that’s a fraction of what is in use. They consume a lot of power, and much of that consumption is lost as heat—up to 98%. Here we see an innovation: the LED bulb. An LED light bulb is about 95% efficient, meaning that only 5% of the energy used is wasted as heat. Compared to the incandescent bulb’s 2% efficiency (remember that 98% lost as heat!), we can see that LEDs are exponentially better when it comes to energy efficiency. This innovation has interacted with a traditional innovative product to create an even larger marketplace, all driven by sustainability.
Industry 5.0: Fast and Far-Reaching
Industry 5.0 will move fast and far. Some innovations born at the beginning of the revolution will become obsolete and be replaced later down the line. Innovation will be a critical element of the next business revolution. While everyone agrees on its importance, there is less agreement on where that innovation will come from.
When you think of giant leaps forward, recognizable companies like Apple, Amazon, Google, and 3M might come to mind. It’s easy to connect innovative products with large, established companies. However, that might not always be the case. Sometimes we rewrite history in our minds!
Innovation and Commercialization
Consider the early days of Apple. Steve Jobs and Steve Wozniak envisioned that home computers would become more than just a specialty technology item limited to engineers, technicians, and computer hobbyists. They saw a world where everyone could partake in the digital revolution. In 1976, this was far from obvious. Most computer companies focused on the established markets of mainframes, targeting big companies. Digital Equipment Corporation (DEC), a major American computer company, had revenues of $14B in the 80s but went bankrupt in 1998 due to disruptive innovation.
Apple made computers friendly, useful, and beautiful. The Apple II, debuting in 1977, sold over 6 million units. The Macintosh, introduced in 1984, dominated home computing for nearly a decade. By 1997, Apple was floundering, but a small team of engineers developed the breakthrough iMac, and the company hasn’t looked back since. Apple, in essence, was a start-up twice.
Google launched in 1998 when established search players like Yahoo, Dogpile, AltaVista, and Excite dominated the web. Today, people often associate web search invention with Google, rewriting history in their minds to suit present-day reality. Similarly, Michael Jordan, drafted third in 1984, is now widely considered the best basketball player ever, though few recognized his potential at the time.
Much innovation comes from small, unheard-of companies or lone entrepreneurs ahead of their time. Large companies do innovate, but many of their innovations are product extensions or enhancements. Innovators often face rough beginnings without the name or resources to get their ideas into the public realm, experiencing a bumpy path to success.
The Zero to One Concept
Peter Thiel’s book, “Zero to One,” discusses the central element of real innovation: going from zero to one. Progress doesn’t happen on its own—someone must make it happen by thinking of a solution in a totally new way. Most things are simply iterations on something that’s already been done (one to n). Vertical progress, doing something no one has envisioned before, is where the next industrial revolution will take hold.
Examples of the Next Wave of Innovation
Electric Vehicles (EVs)
The world’s first electric car dates back to the 19th century. Thomas Parker, a British inventor, built the first practical production electric car in the late 1880s. Today’s EVs, mostly powered by Lithium-Ion batteries, need to improve significantly. Future vehicles might be powered by alternative sources like hydrogen, fission, or fusion.
Electric motors in EVs have tremendous power conversion capacity, but batteries are bulky, heavy, and take a long time to recharge. Future innovations might include bio-based batteries or technology that allows vehicles to charge almost instantly from renewable sources and travel thousands of miles on a single charge.
Recycling
Recycling, though established for decades, is nowhere near the level needed. The process is extremely complicated and labor-intensive. Innovations in sorting technologies, chemical recycling, sustainable packaging, closed-loop systems, consumer education, and advanced recycling infrastructure will greatly benefit recycling processes, especially for plastics.
Where Innovation is Going Next
Industry 5.0 will push people to become more sustainable, with recycling at the forefront of the conversation. The development of the plastic recycling ecosystem and infrastructure must continue to evolve to manage more of today’s packaging formats. Innovation is crucial to creating a 5.0 world, driving sustainability, and enabling progress in ways we have yet to envision.
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