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# System prepended metadata

title: 'CTO note #1: innovation preparedness crucial challenges'
tags: [reflections]

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# CTO note #1: innovation preparedness crucial challenges
It has been 3 weeks since our team reacted to the blockchain AI agent hype. The situation is mostly resolved by now, but it has left me with many lessons and thoughts.

AI hyped quickly in just few months. When business team confirmed market signals, we were late 2 months. In just a span of next few weeks, most of our tech team transitioned to AI. We managed to onboard senior AI engineers which helped speed up the transition.

There will be more innovation waves to come, and I need to prepare my team. The preparation comes in two phases: scout -> commit. This writing is my reflection on the challenges of each phase.
1. scout: with organizational and personal networks, the CTO must scout tech directions and external resources on this directions.
2. commit: once a direction is verified and external resources are connected, the CTO needs organizational resources to realize the preparation. To gather resources, the CTO must persuade other non - tech decision makers before even market hype.

## Scout

#### 1. direction scouting is a logical and mental challenge
Within blockchain landscape, it is very easy to justify following existing topics on cryptography and distributed systems. Why? because it's market potential is proven and analyzed by many. This falls into the line of sustaining innovations. I would argue that this is not a problem for most organizations.

For new innovation such as LLMs in AI landscape, the market potential in blockchain is not yet understood. This line of disruptive innovations caught me off guard because my attention was on blockchain innovations. Even for blockchain teams with well - funded researchers, they may not aware of how LLMs can be used in blockchain. Most thought of uninteresting use cases such as distributed training network. Disruptive innovations are off - radar until it hits hard. Simple math is why should you allocate focus time into sleeper technology, when you can reap known rewards with well understood ones?
    
To justify following disruptive innovations, you have to constantly answer the dilemma question above. It is also mentally difficult because you won't receive any immediate rewards, and would most likely face skepticism from peers. Because of this mental challenge, most would be unable to bring themselves to look into disruptive innovations.
    
Scouting disruptive innovations is both a logical and mental challenge that a CTO has to overcome and has a strong why thesis on.

#### 2. securing external resources is about trust building
Assume that a scouting direction is decided, next step would be to find resources to realize that directions. At each stage, different resources are required to ensure winning the innovation race.

For unrealized trends, a CTO needs to be up-to-date and discover the potential value. There would be experts that are up-to-date and already have some product ideas. Prospecting with these few key experts, preferably with diverse backgrounds, is crucial to brainstorm on a variety of value propositions. But, why should they brainstorm with someone they just talk with?

For established trends, the team would most likely want to build various products quickly. There would be fast - moving outsourcing teams already working on this. Most outsourcing teams are bullshit and unsupportive, with split attentions to many clients. Approach would be to verify thoroughly on execution efficiency, hiring speed, and technical know-hows, with test phases. If an outsourcing team is capable, they would likely have various clients already. Why should they prioritize a client that they just met?

Both of these depend a lot on having enough trust to brainstorm, or be prioritized for outsourcing. Name of the game is building enough relationship trust and potential long - term collaboration.

## Commit
Once scouting phase is done, resource commitment is needed to pursue the preparation. Most often time, there would be several decision makers on organizational resources. Persuading them is critical to the commit phase.

* Timing: preparation can realistically last few months before everyone goes crazy on wasting resources. Timing is of utmost important. A CTO should verify market signals with business team periodically.
* Preparation plan: given short time frame, and tight budget. The plan should best utilize resources for maximal outcomes.
* Tailored key metrics: there will be decision makers with various backgrounds. The preparation plan should be presented with understandable key metrics. A CTO should strive to understand what ticks each decision maker.

This process will require lots of time understanding others way of thinking. It can be extremely frustrating to both CTO and other decision makers if failed to persuade, or acted on misunderstanding, or avoiding the hard talks. This communication barriers must be cleared for successful organizational innovation preparedness.