Important Lesson Learned from Zigbee Technology

I think the most important lesson learned from the Zigbee venture is what has already been found out about the proper way to start a new venture. According to the Effectuation Theory of Entrepreneurship, developed by Professor Saras Sarasvathy, University of Virginia, there are two types of thinking when starting a new venture; “effectual” and “causal” thinking. Casual or predictive reasoning or rationality involves having a pre-determined goal and using the resources available to find the most efficient way to achieve that goal as in the case of Zigbee.

Effectual reasoning is different, as it does not start with a specific goal in mind. It begins with a set of means (resources) and goals only emerge over time through the of interactions of the founders with the stakeholders. For example, effectual thinkers are like explorers who set out on voyages to unknown places.

In other words, effectuation principle holds the view that, contrary to causal reasoning that says you have to plan first and the execution comes second, effectual reasoning depends on execution. As already stated above, the reason is that most entrepreneurs use what they have got to start with. Plans are not static and many people with experience with start-ups will agree that predetermined plans are changeable and sometimes do not reflect the realities. I have heard many instances where business founders have said that they never used the plans because the realities on ground were entirely different form predictions to the extent that the plan became irrelevant.

Also effectuation Theory focuses on the cost, what is called “Affordable loss”. The process of evaluating any venture starts with the evaluation of the means or resources (cost) and from there, the goal is determined. Goals and risk (cost) have to go hand - in – hand.

I think when embarking on a new venture flexibility is required and surprises should be seen not as bad news but as potential clues to exploit new markets. Basically what this principle says is that entrepreneurs have to be open to change and be prepared to go in a different direction. Causal reasoning does the opposite by doing everything to minimise surprises or bad news as we have seen in this case.

Digital Leadership - The Three Questions!

How much do I know about digital technology? I think to know something is about gaining skills and mastery of a subject both theoretically and practically. I have used social media and have stored things on the cloud and have used mobile applications, but that is all. I think to have mastery of digital technology requires the ability to use it develop competences and strategies that enable digital leadership solutions to be implemented. So, the answer is I do not know a lot about digital leadership at the moment

Traditionally, anything about technology has been left exclusively for the people in the IT department and there are still some “old school” managers that are not interested in technology even in things as simple as email, not to talk about using other social media applications or platforms. I believe the bulk of managers in many organisations need retraining in digital technology to see technology as a friend instead of as a threat.

I think what makes a good digital leader is willingness to embrace and experiment with change and surprises, willingness to develop digital leadership capabilities and willingness to motivate his or her team to develop and adopt digital technology to transform their thinking and the business based on the business goals. For example, imagine what it would be like to have a company in which the CEO is fluent in digital technology. He or she would be interested in developing the digital competence of the workforce. The opposite effect would happen where the CEO does not have any interest in digital technology.