Nassim Taleb wrote a book named The Black Swan: The Impact of the Highly Improbable. As you can tell from the title, a Black Swan is what Nassim calls a highly improbable event. He asserts that these events are highly improbable, not predictable and they drive much of what goes on around us.
Many successful companies and products are the results of Black Swan events. As much as we’d like to think that there are formulaic ways of building successful companies, there isn’t. The best formula is lots of experimentation. The successful companies are the one experiment that works out of many. We just never really see the many because they die off before we ever take notice.
Many successful companies get their innovation wrong after they’ve become successful. They try to innovate from the top down. That is, high level management sit around at HQ thinking it’s their jobs try to dream up the next big thing. They forget where they started. Continue reading