Forbes: Why The Future of Innovation Is Simulation
Forbes.com contributing Author Greg Satell recently wrote Why The Future of Innovation is Simulation, and I couldn’t agree more. Imagine having access to the world’s data sets on any particular topic in quantifiable numbers, the base line for testing would already have more answers than the smartest team in the world. Consider Greg’s perspective:
“In business life, Mitt Romney was known for his acumen, strong work ethic and keen eye for talent. He carried over these practices to his political career and his campaign team was similarly bright and indefatigable They analyzed past trends, developed a theory of the case and executed their strategy efficiently. They had only one chance to get it right.
His opponent, the incumbent President Barack Obama had a different approach. He created an entire division of young, unkempt, over-caffeinated data junkies with little experience in business or politics. They had no set theory of the case, but instead ran 62,000 simulations per night and continuously updated their approach.
The result is now clear to just about everyone on the planet. The smartest guys in the room were no match for terabytes of data and smart algorithms. There is no one “theory of the case” anymore, but thousands of them, being run constantly. The point isn’t to be right, but to become less wrong over time.
That’s why the future of innovation is simulation. Whereas before, we would sit amongst ourselves, decide how the world might work and test our ideas in the market, now we can test them in a virtual environment built by real world data at much lower levels of cost and risk.”