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Three Ways CEOs Can Safeguard A Company Against Obsolescence

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Summary

In this article, Ophir Tanz, founder and CEO of Pearl, examines how CEOs can safeguard their companies against becoming obsolete due to technological advancements. He discusses the law of accelerating returns, which states that the pace of change in most evolutionary systems tends to increase exponentially. Tanz outlines three strategies for CEOs to combat this trend: actively shunning cognitive bias, diversifying by developing new products and multiplying potential applications for existing products, and allocating resources to planning for the future three years from now.

Q&As

What is the "law of accelerating returns" and how is it applied to technology?
The law of accelerating returns is the idea that the pace of change in most evolutionary systems tends to increase exponentially. It is applied to technology's evolution by suggesting that the next century will bring change equivalent to the previous 20 millennia.

What are the three ways CEOs can safeguard a company against obsolescence?
The three ways CEOs can safeguard a company against obsolescence are to actively shun cognitive bias, diversify by developing new products and multiplying potential applications for existing products, and allocate significant resources to planning for the future.

How can cognitive bias prevent CEOs from properly preparing for the future?
Cognitive bias can prevent CEOs from properly preparing for the future by blinding them to how fast the future will come. It causes them to fall back on familiar narratives about how the world works, which can be dangerous in a world where the pace of change is increasing.

What is the timeframe that CEOs should focus on when planning for the future?
CEOs should focus on a three-year timeframe when planning for the future. This is close enough to be relevant and about as far off as we're able to predict with reasonably high accuracy.

How can investing in new technologies help a company stay ahead of the competition?
Investing in new technologies can help a company stay ahead of the competition by giving them the chance to be experts poised to lead in the field when a new technology matures. This can help them capitalize on the technology before the window of opportunity closes.

AI Comments

👍 This article provides an insightful and comprehensive approach to safeguarding a company against obsolescence. Ophir Tanz provides an interesting perspective on the impact of technological progress, and his advice for CEOs is invaluable.

👎 This article contains a lot of abstract concepts that don't provide much practical advice for CEOs. It can be difficult to comprehend the implications of rapid technological change, and this article doesn't offer much direction on how to prepare for it.

AI Discussion

Me: It's about the implications of technological progress and how CEOs can safeguard their companies from becoming obsolete. It outlines three strategies for CEOs to follow to stay ahead of the curve.

Friend: Wow, that's interesting. What are the three strategies?

Me: The first is to actively shun cognitive bias and be impartial and honest with yourself whenever you encounter a new idea or challenge. The second is to diversify by developing new products and multiplying potential applications for existing products. The third is to allocate resources to planning for the future, three years from now.

Friend: That's a lot of pressure for CEOs. It seems like they have to constantly be looking ahead and innovating to stay ahead of the competition.

Me: Yeah, it definitely is a lot of pressure. But if they don't do it, their companies could quickly become obsolete. So it's important to be aware of the trends and be proactive in planning for the future.

Action items

Develop a plan to actively identify and assess new technologies, business models, and strategies that could impact your business.
Invest resources into diversifying your business and developing new products and applications for existing products.
Allocate resources to planning for the future, with a focus on a three-year window.

Technical terms

Artificial Intelligence (AI): Artificial intelligence (AI) is a type of computer technology that is designed to simulate human intelligence and behavior. AI systems are able to learn from their environment and make decisions based on the data they receive.
Nanotechnology: Nanotechnology is the manipulation of matter on an atomic, molecular, and supramolecular scale. It is a field of science and engineering that deals with the design, synthesis, characterization, and application of materials and devices on the nanometer scale.
Cognitive Bias: Cognitive bias is a systematic pattern of deviation from norm or rationality in judgment. Individuals create their own “subjective social reality” from their perception of the input. Cognitive biases are tendencies to think in certain ways that can lead to systematic deviations from a standard of rationality or good judgment, and are often studied in psychology and behavioral economics.