Small Ideas Bigger than Big Ideas
If you are wondering where the emerging markets lie, look no further than the one focused on small ideas -- nanotechnology.
'Nanotechnology' is the engineering of functional systems at the molecular scale.
It is a haven for clever marketing innovators. Business giants are looking at concepts that are built with atomic precision -- Procter & Gamble, Boeing, Merck, Kraft, Ford, the list is long and getting longer.
To gauge nanotech’s impact on global businesses and their readiness for change, Lux Research analyzed 1,331 of the world’s largest companies. These corporations put $3.2 billion into nanotech R&D in 2005 and earned $32 billion in revenues from nanotech-related products. So this is not science fiction. It is happening already and the leaders are making money.
Among Lux Research’s findings: Nanotechnology will impact different industries in radically different ways. In high-impact industries like pharmaceuticals, semiconductors, and aerospace, companies like Merck and Boeing will develop wholly new product lines, find cost reduction/performance improvements on the order of 20% or more, and need to develop new processes for innovations like drug-device hybrids and roll-to-roll printable electronic devices. Even in medium-impact sectors like automotive and food, companies like Ford and Kraft are seeing large incremental improvements that will be felt at the bottom line as nanotechnology makes hybrid vehicles run longer and functional foods deliver more nutrition.
It offers better built, longer lasting, cleaner, safer, and smarter products for the home, for communications, for medicine, for transportation, for agriculture, and defense. Nanotech offers not just better products, but a vastly improved means of production. The vision extends to nanofactories that make new nanofactories at the same low cost and at the same rapid speed as they make products -- a biological capability that brings with it exponential productivity.
Companies need to start today to develop new strategies for R&D, product development, manufacturing, intellectual property management, marketing, supplier relationships. Cincom Systems has been at work developing technologies to assist nanotech businesses. When it comes to big ideas, think small.