Why Humans Are So Successful

Have you ever seen or heard about that experiment this scientist did with chimps, a jar with a screw-on lid, and bananas?

This guy wanted to see if chimpanzees, considered the second most intelligent species on Earth, had the capacity to learn from each other’s experiences. He put a banana inside a jar and screwed on the lid. Then he let the one chimp out of its cage. It grabbed the jar, shook it, pounded it, until it finally figured out how to unscrew the lid and get the treat inside.

Then came the test, and the resulting big surprise…

When the other chimps, who had been watching the first chimp solve the mystery of the jar, had a chance to get that banana out, they went through similar experiments and tactics. They didn’t learn to just unscrew the lid. They had to walk their own path to discovery (and banana). They couldn’t imitate social behaviors!

That is one of the great distinctions between humans and chimpanzees. When a useful new innovation emerges, we humans learn from the experiences of those before us. We adopt the resulting innovations on a predictable S-Curve.

Now, the S-Curve is simple in principle…

Many students of evolution would say it is our creative capacity for innovation that distinguishes humans from the rest of the animal world. But most of us are not entrepreneurs, pioneers or radical innovators. Only a very small percentage (about 1%) of people actually are.

Over time, that 1% gains control of between 30% and 50% of the wealth in developed countries like the U.S. It is that small group of people that question, experiment and ultimately come up with new solutions or innovations. They are the starters of the S-Curve.

Then come the early adopters, those 10% of people who, either through their natural interests, their access to information or their above-average intelligence, tend to discover and adopt the solutions or innovations the 1% created.

This group tests the new trend to see if it’s something that can move mainstream. Once such a trend is proven in niche markets, it then becomes commonplace.

Of course, many innovations never make it to, or through, those early adopters. But what’s important here is that once the ten-percenters offer their stamp of approval, the innovation or solution takes off like a rocket.

It takes the same time to go from 10% adoption to 90% adoption as it does to go from 0.1% to 10%.

Once new innovations are successfully tested and proven in niche markets, they move mainstream rapidly and in surprisingly predictable ways.

Aha!

Predictable.

You can make money with predictable.

It just amazes me that most business people miss these S-Curve accelerations.

Some analysts say that the development and mainstream acceptance of new innovations are difficult to predict. Are these guys on crack? They are very easy to predict once they have reached 10% adoption.

It’s like doctors today who can measure your kid’s height at age two and tell you how tall they’ll be at age 18 or 19.

That’s not to say that all S-Curves are created equal. Some move more slowly from creation to mass adoption than others. Typically, the more radical an innovation, the more difficult it is to adopt, the longer it takes to go viral. There’s just simply more resistance.

It took a couple hundred years for people to understand that the Earth revolved around the sun. People resisted this notion (regardless of its truth) because it challenged some of their core religious beliefs.

Regardless, the pattern and progression of the S-Curve is the same.

Track Trends to Make Money

I first experienced the S-Curve in business forecasting at Bain and Company when I consulted for Firestone Tire. Radial tires took seven years to penetrate 10% of the market, and then just seven more years for the remaining 90%.

It took automobiles 14 years to go from commercialization to 10% of urban households. That number exploded to 90% between 1914 and 1928… another 14 years.

The Internet followed the same progression 80 years later, going from 10% to 90% of households between 1994 and 2008.

Facebook already has 50% of all Internet users. That number will be at 90% in no time.

So do your investments and business a favor. Learn to notice and track new social, business or technological trends.

Are they progressing towards 10% in niche markets?

How long has it taken to get to 10%?

From there you can project the acceleration and growth to 90% and position yourself to make a fortune… regardless of market antics or economic conditions.


Harry

 

Ahead of the Curve with Adam O’Dell

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While Facebook’s tally of users may jump from 50% to 90% in short order, there’s no guarantee that the company’s profits, or share price, will get the same boost.

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Considering his near-perfect track record of predicting economic events long before they occur, you need to take action to protect yourself now. Get the full details…

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Categories: Economy

About Author

Harry studied economics in college in the ’70s, but found it vague and inconclusive. He became so disillusioned by the state of the profession that he turned his back on it. Instead, he threw himself into the burgeoning New Science of Finance, which married economic research and market research and encompassed identifying and studying demographic trends, business cycles, consumers’ purchasing power and many, many other trends that empowered him to forecast economic and market changes.