What does ignorance cost? If you think about it for a second and a half, you probably can come up with at least four to five situations where you can remember that if you had only knewn - you would have saved a lot of money. What is fascinating in this equation is not so much that we al easily can agree that not knowing can cost deerly - sometimes even human lifes. Not convinced? Think Titanic! Think all the deseases we were not able to cure only five years ago because we were ignorant about a certain drug. How often did you pay an overprice on your levis - seeing the same pair of trousers on sale in the shop next to it?
You can of course argue that this information assymetry - cause that is often what it is, nothing less, nothing more - is relative since it is difficult to know everything. And you're right. Point taken. But what if you approach what you know differently? What if you split it up in four categories:
What you know, you know
What you know, you don't know
What you don't know, you know
What you don't know, you don't know
The first three categories - you're home free. After all, only 50% of the equation is unknown and therefore you're able to work the area with training and education. If you can imagine it, you can think it. If you can think it, you can reason it. If you can reason it, you can build it. It's the 'what you don't know, you don't know' that is fascinating. Cause where's your imagination here?
There's some flawed thinking here since just because you can't imagine it, doesn't mean somebody else can't. After all, we're launching a car that can fly in China later this year and unless you're employed by Moller, I can safely assume neither you nor me can take credit for this. In other words, just because you and I have not heard about it, doesn't mean it is not out there. That piece of not knowing I can't put a price tag on. At least not one that will leave you with a credible mathematical definition that enables you to assess whether it is a good investment to probe in the area where you don't know what you don't know.
But I can say so much as that what is in the first three categories, is most likely in some way on your competitive radar. The fourth category - is most likely to produce a competitor that will blow you out of the market alltogether. Or it will bring us the answers to cure cancer, solve starvation, connect knowledge and religion and what have you. But it takes that we start taking knowledge more seriously - not only what we know, but also the dark side of knowledge: everything we're happily ignorant about.
Cheers,
Pat May