Point: While many wring their hands over seemingly insurmountable problems, entrepreneurs roll up their sleeves and work on solutions.

Story: Peter Diamondis, founder of the X PRIZE Foundation and Zero Gravity Corp., is particularly optimistic. Seeing what small teams can accomplish with today’s technologies, he sees limitless opportunities. “A Maasai tribesman in Kenya today has better mobile communications than President Reagan had 25 years ago. If they’re on a smartphone, they have access to more information than President Clinton did 15 years ago,” he says.

These achievements don’t get as much attention as bad news, because our brains are wired to hone in on anything that could threaten our survival. But above the din of disasters and terrorist attacks are the facts that more people have been lifted out of poverty in the last 50 years than the previous 500. The cost of food is 1/13th what it was in 1870. Even those living below the poverty line in many countries today have access to a telephone, toilet, television, air-conditioning and a car — things that Andrew Carnegie or John D. Rockefeller couldn’t have dreamed of a century ago.

Moore’s law — the doubling of computing power for the same price every 12-24 months — is now showing up in other areas that are linked to computing power, including sensors, 3D printing and biotechnology.  For example, 3D printers that cost $500,000 can now be bought for $1300, making them accessible to small companies and entrepreneurs.

Lower costs like that make it possible to offer much-needed but low-cost products to the “bottom billion” people in the lower rungs of the economic pyramid. For example, an estimated 1.1 billion people lack access to clean drinking water. But four billion of them are spending 30 cents a day for water, which makes clean water a $400 billion a year market, as inventor Dean Kamen points out. Kamen is in trials with a new water purifier that can turn any water (even polluted water, seawater or latrine water) into pure drinking water for less than .02 cents a liter.

Such innovations by entrepreneurs can solve the world’s biggest challenges.

“That’s my source of optimism. That and a realization I made early on that if there’s a problem, I’m going to solve it. Once you see the world that way, it’s a different place,” Diamondis said.

Action:

• Look at negative events as potential opportunities to create new products or services to prevent or mitigate the negative.
• Look past the sensationalized “bad news” to see the less-publicized march of positive trends in human development that create or expand markets for products and services.
• Consider how to leverage the rising spread of modern infrastructure (communications, utilities, and logistics) to access more suppliers, partners, and customers.

Sources and more information:

Peter Diamondis at the Innovation Summit at the Shell Technology Center Houston, January 9, 2013

Peter Diamondis’ book, Abundance: Why the Future Will Be Much Better Than You Think

Ted Greenwald, “X Prize Founder Peter Diamandis Has His Eyes on the Future,” Wired

Point: Create an internal venture fund to incubate revolutionary ideas.

Story: This week’s Innovation Summit at the Shell Technology Center Houston (STCH) highlighted the need for innovation and collaboration to solve society’s most pressing challenges. As the world’s problems become more complex, the best way to tackle them is with a cross-disciplinary approach.

What are some ways that companies can foster this multidisciplinary collaboration to achieve breakthrough innovation? One way is to create an open mechanism inside the company that solicits promising ideas regardless of where they come from — including outside the company — and offering seed funding that’s outside of the company’s traditional R&D programs to give them time to develop.

GameChanger

Shell is doing this with its GameChanger program, headed by Russ Conser.  GameChanger seeks out and invests in early-stage ideas that could potentially revolutionize the energy industry. GameChanger plays the role of an angel investor; a panel screens ideas and selects ones to fund. Idea submissions can come from any Shell employee as well as from outside the company.

Shell actively solicits ideas from academics and entrepreneurs alike through its web site www.shell.com/GameChanger.  Ideas that pass the initial screen receive seed money — $25,000 to develop a robust proposal and on up to $500,000- $1 million a year to actually test and develop ideas that graduate into projects.

Example

For example, Erik Cornelissen, a research scientist, was in a toy store looking for a gift for his nephews when we saw a science toy that many of us have seen before: a dinosaur that grows in size when placed in water. A nifty, fun gift. But Erik made a connection back to a perplexing problem that had plagued Shell and other oil companies for a long time. Specifically, oil wells contain water, not just oil. Over time, more and more water gets pumped up relative to oil.  Not only does that make the well less productive, but it pumps water that increasingly is becoming a scarce resource itself. The question is, how to detect that water and prevent it from mixing with the oil?

Erik realized that the same principle behind the dinosaur toy — a material that expands upon contact with water — could be applied at the oil well. Erik needed to identify a “swellable elastomer” that would seal off the pipe when water started to mix with the oil flowing through it. The idea was not difficult to articulate or explain, but finding this kind of material proved long and difficult. GameChanger provided Erik with the time and funding he needed to go through hundreds of experiments to find the elastomer that fit the demanding conditions at the oil well site.

Results

About 40% of Shell’s core Exploration & Development R&D portfolio has evolved from ideas submitted to GameChanger, and 70% of the GameChanger portfolio includes collaboration with people outside of Shell.

Since its inception in 1996, GameChanger has funded 3000 ideas, investing $350 million and resulting in 250 commercial projects, said Gerald Schotman, EVP, Innovation, R&D and Chief Technology Officer at Shell.

Action

• Publicize clear and explicit selection criteria, so external submitters know what you want and will fund.  For example, GameChanger uses 3 primary criteria:

1. Novelty: is the idea truly and fundamentally new and different? (There’s no point in funding ideas that would qualify as traditional R&D projects.)
2. Value: Could the idea create substantial new value if it works? (Wild ideas are welcome, but ultimately they need to deliver value if they come to fruition.)
3. Credible Plan: is there a plan to manage risks prudently? (New ideas are risky, but many risks can be identified up front and plans can be put in place to stay ahead of them.)

• Have an end game for how you’ll commercialize an idea that demonstrates feasibility. For example, GameChanger uses 3 commercialization strategies:

1. Move the idea into the company’s internal R&D portfolio.
2. License the idea externally.
3. Spin off a new company to bring the idea to market.

Point: Additive manufacturing (also called 3D printing) technologies enable new design methods and local manufacturing by entrepreneurs.

Story:  When designing a new part to be manufactured, designers traditionally had to define the shape they wanted and then pick the material that could support that shape (based on strength, flexibility, etc.). That is, they designed the piece separate from picking the materials. For more complex products, designers had to decompose the product into semi-independent parts that were designed and manufactured separately and then assembled with screws, welding, clips, glue, and so on.  This deconstructive process risked incompatibilities between the parts, added complexity, and increased costs due to a assembly labor.

But, nature does not design in this deconstructive way. A tree trunk, limbs and leaves aren’t built separately and assembled. Rather, nature designs and grows the entire tree in a progressive, additive fashion, and largely from one material. Nature starts with a material (e.g., cellulose is the material for trees) and deploys that material in various densities, shapes, thicknesses, and modified formulations to create an integrated object.  The same basic building-block material that makes the thick rigid truck of a tree also makes the broad, flat leaves of the tree, thin flexible twigs, and hard shells of the tree’s nuts.

Additive manufacturing mimics nature (unlike traditional reductive manufacturing that removes material to make a form).  Additive manufacturing can build almost any shape that can be drawn on a computer, including hollow and contorted forms impossible to make in other ways. Specialized machines (essentially 3D printers) lay down layer after layer of material or draw with a bead of molten material to grow the part the 3D shape that was downloaded from the computer. Virtually anything that someone can imagine, draw or compute in 3D can be made with additive manufacturing.

Several competing 3D printer technologies let designers and manufacturers choose between clear resins, colored opaque thermoplastics, powered metals, and even powered ceramics.  Companies can use the technology to create prototypes, customized shapes, spare parts, and intricate parts in low quantities.  For example, Boeing used metal hybrid additive manufacturing processes and powdered metal manufacturing to create parts that reduced the weight and fuel consumption of its aircraft.

Although industrial printers like Boeing’s cost upwards of $500,000, consumer-grade printers cost only $1300.  The low price point creates a vast new opportunity for entrepreneurs to provide 3D printing services.  For example, online service company Shapeways prints any design that its customers upload, from fashion and jewelry pieces to gadgets and art. Even better, Shapeways lets is members open virtual storefronts on the site to sell their products. Some of the most popular products for sale include a PirateBay ship model, a Dymaxion world map, and a customized metal branding iron that will brand any text you want when attached to a BIC lighter. In addition, open source communities (such as MakerBot Industries, RepRap, Thingiverse) are dedicated to creating ultra-low cost printers and sharing designs for cool additive manufactured parts.

Action

• Think about how in-house 3D printing (or in-home 3-D printing) might change your business.
• Design new additive manufactured products based on shapes that would be “impossible to build” with traditional manufacturing.
• Create new business models based on products or services that support additive manufacturing or that transcend the curse of economies of scale needed by traditional manufacturing