Silicon Valley's Buzzword Problem: The "Puck at Your Feet"

Silicon Valley is infamous for its ever-changing technology landscape, where buzzwords emerge seemingly out of thin air to dominate conversations and influence everything from product development to investor pitches.

These buzzwords often represent the current state of the industry, rather than its future direction. This means that by the time you launch a product built on a popular buzzword, everyone else will have already caught on, leaving your offering undifferentiated.

Successful entrepreneurs and investors must look beyond the hype and anticipate where the industry is heading, not just where it is today.

Identifying Buzzwords: "Game Mechanics," "Badges," and More

The author uses the example of "game mechanics" to illustrate how prevalent buzzwords can become. Many startups are incorporating these mechanics into their offerings, but it's essential for investors to understand if this is a true innovation or simply a trend.

While game mechanics can be effective in driving behavior, they shouldn't be the primary focus of a pitch to investors. Instead, they should be presented as a supporting point for genuine innovation.

Other recent buzzwords include geo-location, geo-fencing, local deals, flash sales, group sales, and augmented reality.

Even badges, a once-novel concept, have become so commonplace that they've lost their novelty and are considered a "puck at your feet."

Beyond the Hype: Investing in True Innovation

The author argues that "social," "social media," and "social games" are now passé terms, as social aspects are assumed in most digital products.

Investors should be wary of pitches that simply combine two buzzwords. For example, "check-ins for TV" or "check-ins for food" are unlikely to be innovative enough to warrant investment.

Rather than following current trends, aspiring entrepreneurs should focus on developing their own unique ideas. This requires looking beyond the hype and considering non-conventional approaches.

Investors should similarly invest in companies that are pushing the boundaries of technology and offering truly novel solutions.

The Importance of Differentiation: Avoid "Puck at Your Feet" Investments

The author emphasizes that true innovation requires more than just replicating existing ideas in a new way. It's about finding novel approaches and solutions that differentiate your product or service.

Even seemingly derivative ideas, like Quora's take on Q&A, can be innovative if they bring a fresh perspective and improve upon existing solutions.

Google's success with PageRank demonstrates that even within established industries like search, innovation can lead to significant breakthroughs.

Investing in the Future: Looking Beyond Today's Trends

By investing in companies that are shaping the future, not simply replicating the present, investors can achieve greater returns. This requires a willingness to consider ideas that may seem unconventional or challenging to understand at first.

Investors should be willing to back companies that are pushing boundaries, even if those ideas don't fit neatly into current industry trends.

Looking at the future trajectory of the industry, rather than just the current state, will help investors identify the "pucks" that are worth investing in.

Product Leadership: Becoming the Next Buzzword

The author suggests that truly novel products have the potential to become the buzzwords of tomorrow. This requires product leadership, which is the ability to anticipate future trends and create products that define them.

Companies that achieve product leadership are able to shape the industry and influence the direction of the market.