Innovation for the Next Generation with 500 Startups’ George Kellerman

This post is based on presentations given at Rakuten’s annual SOY (“Shop of the Year”) Trip. The event celebrates the top 100 online shops (representing 0.3% of all shops) on Rakuten, which is the dominant ecommerce platform in Japan.

In this three part series, we’ll share the insights from these three tech superstars on how to create innovation worthy of the next generation, starting with George Kellerman, an Investment Partner and mentor at 500 Startups. Miss the second part? Check out the talk by btrax’s CEO Brandon Hill.

“Just give it a shot.”

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We’ve all seen a photo like this before, proof of the proliferation of mobile devices in the last 8 years. In addition to a lifestyle change, the needs of the market have shifted. Businesses always need to be innovating to respond to the market.

When was the touch panel invented?

1965! It was originally created for flight control radars, and then developed and improved upon several times in consumer products, like Newton made by a company called Palm. We’ve had the cutting edge technology for quite some time but no one was able to turn it into a hit product.

When Apple released its own Newton, complete with touch panel, it didn’t take off. Only after repeated trial and error in the era of the internet and mobile technologies were they able to turn our daily lives upside down with their smartphones, tablets and soon-to-be watches.

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Create something the user can’t imagine

Remember that innovation comes from places people can’t imagine. Apple doesn’t create products based on customer feedback. They just give it a shot! There is never a guarantee that a product will be successful when its announced.

Sales and Profit are not the end-all be-all

I’d like to say something to the top merchants who’ve obtained a customer base and achieved stable growth. You’re probably thinking, as you look at your beloved profit and loss statements, how best to expand and improve based on customer feedback. However, if your goal is innovation, the best thing you can do right now is to ignore your customers.

Return once more to that uncertain period when you started your business. When you released products that no one was expecting. That is how Apple came to be where it is today, by repeatedly experiencing success and failure.

I am often asked, “How can I succeed?” and the answer I’d like to give is “Just give it a shot!” If you don’t try you’ll never know. Please keep that in mind and pursue innovation because the future of Japan rests on your shoulders.