Moldboard PlowTraditional plows would become gunked-up with soil, forcing farmers to repeatedly stop and clear away soil. Moldboard plows repel soil, lowering the cost of farming. John Deere was an ordinary blacksmith, creating pitchforks and other common farm instruments. Farmers complained about the time wasted stopping and clearing their plows. Deere thought there must be a … Continue reading "Moldboard Plow"
Game TheoryGame theory serves as the foundation of systematized decisionmaking and modern economics. Indeed, Minimax game theory underlies modern economics and is responsible for countless economic insights, many of which won Nobel Prizes. Besides game theory, von Neumann eventually modeled the lenses behind the Los Alamos plutonium nuclear bomb. As a Jewish refugee from Europe whose … Continue reading "Game Theory"
PatentsPatents protect the invention of things but not works of art or trademarks, which have their own body of law. They give a limited monopoly for an inventor to produce or license their invention for a set amount of time. Throughout history, patent law has inspired and rewarded innovation but also stifled innovation when abused. … Continue reading "Patents"
Stepping SwitchStepping switches change the direction of a magnetic flow to one of multiple channels, stepping through them incrementally. Which sounds incredibly boring until we realize they enabled the modern phone system and powered the decryption machines which morphed into the modern computer. Stepping switches were literally a step from the industrial revolution to the modern … Continue reading "Stepping Switch"
InsuranceInsurance – paying to spread risk – is an ancient practice. Modern insurance, where businesses specifically focus on assuming the risk of loss for a third-party is a more modern practice. The Hamburger Feuerkasse (Hamburg Fire Office) opened in 1676. Fire insurance spread throughout Europe. Eventually, Lloyd’s of London popularized shipping insurance, where people willing … Continue reading "Insurance"
Hydraulic PressBefore the press, shaping metal was a slow, difficult, expensive, and laborious process. The hydraulic press allows metal to be easily and inexpensively shaped. Today, the same hydraulics power a lot of modern industrial equipment. Bramah, a farmer’s son, was an innovator who specialized in locks. He created and patented many types of locks. He … Continue reading "Hydraulic Press"
Oil DrillDrake’s oil drill is one of the stranger stories, in a collection of innovation origin stories where strange is common. The oil drill vastly lowered the cost and increased the efficiency of collecting oil. Before the drill, oil was usually collected in naturally formed pools at the ground surface. Most early oil was distilled into … Continue reading "Oil Drill"
Vaccines (Smallpox)Smallpox was a killer, affecting royalty and peasants alike. When it didn’t kill, it oftentimes left victims permanently maimed. Besides eventually eradicating smallpox, this vaccine led to the development of future ones. Background Jenner was born to a wealthy and well-educated family. Like many during his time, he was inoculated for smallpox, a process where … Continue reading "Vaccines (Smallpox)"
Vacuum CleanerVacuum cleaners lower the cost of cleaning and enables better hygiene. Booth saw demonstrations of machines that blew air to scatter dust. Reversing the airstream would allow air to be sucked through a filter. Collecting the dirt into a bag reduced the time needed for cleaning while increasing quality. Booth’s machines were full-sized trucks. Long … Continue reading "Vacuum Cleaner"
Coke Fueled Blast Furnace / Pig Iron1709 Abraham Darby used Coke instead of coal to fire blast furnaces, making the production of iron from pig iron (a weak iron), much more economical. Coke burns significantly hotter than coal which, combined with his new design to concentrate the heat, his factory was significantly more efficient than prior methods. He created the Bristol … Continue reading "Coke Fueled Blast Furnace / Pig Iron"
Credit CardMerchants have always issued credit in one form or another directly to customers. But the idea that a bank would issue credit to purchase anything then, eventually, collect from their customer is newer. In 1946, after WWII, John C. Biggins invented the first universal credit card, called “Charg-It.” However, the card only worked at participating … Continue reading "Credit Card"
Discount AirlineAs the airline market developed, the US found it necessary to regulate interstate air transport as a “public utility.” Significantly, the “Civil Aeronautics Board” (CAB) regulated fares, routes, and schedules. The benefit of regulation was predictability and widespread routes. For example, a carrier that wanted to fly from New York to Chicago might be required … Continue reading "Discount Airline"
- Blue Ocean Strategy Basics – Noncustomers
Blue Ocean noncustomers aren’t just new customers; they’re a new type of customer. It’s your first week of MBA school. You’re excited, psyched, and vaguely hungover. A professor walks to the front of the class and asks “should you focus on existing customers or new customers?” Every hand in the room shoots up. “Anyone knows … Continue reading "Blue Ocean Strategy Basics – Noncustomers"
EmailRay Tomlinson would likely have lived in anonymity but for Shiva Ayyadurai, the man who claimed to invent email as a 14-year-old child. Ayyadurai is certainly bright, a Fulbright scholar who holds four degrees from MIT. He ran against Sen. Elizabeth Warren in the 2018 Senate race, attracting 91,710 votes. Ayyadurai’s claim as the inventor … Continue reading "Email"
Personal Computer, Xerox Alto (the “interim Dynabook”)Dynabook was at the heart of Xerox PARC. Eventually realized as the Xerox Alto, it is essentially the first personal computer. Easy-to-use with a graphical interface, what-you-see-is-what-you-get (WYSISYG) programs, icons, the mouse, networking. Everything we take for granted today started as the Dynabook/Alto. Background The Dynabook dates to Kay’s doctoral thesis and the first interview … Continue reading "Personal Computer, Xerox Alto (the “interim Dynabook”)"