I was laughing reading the following article about the elderly feeling offended at many of the new products and services that people are developing that do not meet their needs or even interest them. People these days get caught up in the glitz and glamour of fancy technology or science and grandiose business plans that they perceive will be big market opportunities. To raise money you need to fit the existing paradigm of what investors feel are big market opportunities. Thrown into this mix are patent and regulatory issues in many medical products and services that increase the risk and cost of innovation. Lost in the translation of all of this are the actual wants and needs of the many of the customers. To lower costs of healthcare and solve many complex problems we have to start by fully examining all the complex reasons why we are not solving problems more effectively within our existing entrepreneurial and investment ecosystems. Only then can we figure out how best to organize a business and financial process that better aligns incentives to address these issues more effectively. It requires a more collaborative and flexible process than many of the existing and rigid institutional investment models will allow. By reworking this rigid process and working with broader and deeper interdisciplinary stakeholders, there is still a strong role for capitalism to play to address these issues and also for investors to make their required long-term returns. In fact, this is a much more effective and efficient way to operate that has the potential of lowering business and financial risk than today’s typical financial structures that are mostly organized to make money and not optimized for solving complex problems. There is more of an awareness of these issues now, which is essential. More and more groups are coming together to start to change the dialogue and trouble-shoot this situation. New science and technologies are primary enabling tools to address these challenges on multiple different levels.
I hope you enjoy the article. Sometimes a bit of simple wisdom is the most effective kind.