When we look at the world, a lot of times we miss the aspect of context on how we look at things. This has importance in making business decisions of all sizes and shapes. This can show up a lot with people’s decisions and with how they look at their competitors and strategies.

I was reminded of this on reading Rasmus Arkersen’s recent post of the power of contextual intelligence. I have written about Rasmus before and his work continues to intrigue me. I first met him when he spoke at an EO regional conference in Bangalore, India, a few years ago. I wrote a blog about his work on human potential.

This recent discussion was on how Rasmus asked people which would be better to hire – an Apple or Microsoft sales person. He experienced most people would say Apple, because of all the hype on the products and Steve Jobs. But what if it was all that hype that made it easy for the Apple guy to sell more when the level of sales was not as high as Microsoft, but was due to a much better sales ability? This is the contextual intelligence that Rasmus is talking about when he says to look deeper and below the surface to learn how the numbers are achieved.

Anthony Robbins also talks about this in his discussions around metaprograms. He states that by understanding how people sort things, you can communicate better with them in the right context. According to Robbins, some people sort primarily by feelings or logical thoughts. Most of us know that, but did you know that some people can even sort by food? When their thoughts are focused around food, you may ask them directions, only for them to tell you to go down to the McDonald’s and turn there. Robbins says, “If you ask them about the movies, they will talk about the concessions stand. If you ask them about the wedding, they will discuss the cake.”

I also experienced this in my Investment days in what is called “survivorship bias.” This occurs when you look at performance over, let’s say, a group of mutual funds during an imaginable 20 years, and it looks good at an 8% return. What it doesn’t factor in are the funds that performed badly and were closed down or merged out of existence. If you added this in over that time period, you may have a percent or two lower rate of all those funds.

These all are examples of looking at the full context of a situation and getting a complete understanding of why something is what it is. This is what Rasmus says is contextual intelligence, and when all is fully factored, may help you make better decisions.

What type of decisions do you have ahead that may need a little contextual intelligence?

An analyst I used to follow in my investment days, Henry Blodget, is now an editor for Business Insider, and his own company has been on top of the internet space since the beginning. I like hearing what he has to say because he has had so many years watching the ups and downs of the firms in this space, and he offers good insight into where these companies are going.

Business Insider recently held its annual IGNITION conference with great speakers from LinkedIn, Google, Groupon, and Time Warner. With so many people in companies that are on the forefront, you have the opportunity to enjoy a great perspective at what is happening now and where things are going.

Here are some of the key observations that Blodget made from the conference:

With 1/3 of the world population now online, it leaves 2/3 of the market left to grow. However, since this 1/3 earns 85% of the world’s income, the growth and commercial opportunity may not be so strong. As I have discussed before, the smartphones and tablets are now outselling PCs. Mobile should be the focal point because that is where growth and activity are coming from.

Mobile devices have hit the half-way point in developed countries, which usually means growth slows down somewhat. Surprisingly, consumers are willing to pay for content. Blodget says digital content revenues are exploding! He points out that digital advertising is growing just behind TV advertising, with most of this growth is going to Google and Facebook.

Another observation is that Google is a better source of adverting than Facebook because Google is like advertising at a store and Facebook is like advertising at a party. He also notes that the internet has already taken out the newspaper business, so the question is: Will television be next?

Mary Meeker recently released her presentation on the state of the web, and she had similar observations. Internet growth is robust, and mobile adoption as many upsides. Global internet users are growing at 8% year over year, and the USA has 78% penetration, while China has 40%, and India holds 11%. Smartphones are interesting. She shows smartphones as a percentage of total subscribers, and China was at 24%, the USA at 48%, Japan at 65%, and India at 4%. Where do you think you’ll find the most opportunity?

All this data continues to support what we have been discussing for a while, that mobile and all the connectivity it will bring is the major wave we need to be riding right now. What are you doing to get on that wave?

Back in 1995, when Robert Loest and I were telling the world about our new mutual fund IPS Millennium, we told a story explaining that, historically, change within a civilization first occurs at an inflection point and is followed by big change and then a long plateau period.

We shared how civilization started with hunter-gathers, and people maintained that lifestyle for over 100,000 years. Then, we had an inflection point, learning to plant seeds and grow food. This was the Agricultural Revolution of the Neolithic Era, and it went on for a few thousand years. Then around 1439, Gutenberg invented the printing press, and the advent of real sustained knowledge accumulation and transfer took place.

Sharing information through books led to the invention of the Watt Steam Engine in the 1760s or 1770s, and this really kicked off the Industrial Revolution, which lasted about 100 years. The transistor was then invented around the 1940s, and the Information Age was born. This lasted for about 50 years.

Then in 1995, we entered the Wired Internet Age and dawn of connectivity in real time, all the time, which has lasted around 15 years. Now, we have kicked off the Mobile Era and the dawn of wireless connectivity.

As you can see, the timing of our mutual fund and the start of this new era lined up perfectly. Even though we proclaimed that investing in a connected world would create value, we were unaware of just how connected the Netscape browser was going to make us.

I am sure you noticed how each era has gotten shorter and shorter. Change progressively occurs faster, and some of the issues for business today center around this disruption which happens when we hit a new inflection point, and the game suddenly changes for everyone. However, this also creates massive opportunity for entrepreneurs! Anyone listening . . . especially with the new inflection point of mobile?

I was reminded of that story we told when I read a blog by David Meerman Scott on what he calls the 2^nd most important communication revolution in history. When you step way back and, as David says, take a “view from the moon,” you see that the first communication revolution was bolstered by Gutenberg’s invention of mechanical movable type. This allowed books to be mass produced and freed people to more easily share information around the world, so they could go out and invent things and build on one another’s ideas. This changed the world, a world that had not changed much since the beginning of time.

We are now in what David calls the 2^nd communication revolution, which started in 1995 with the invention of Netscape, allowing us to have easy web browsing capability. We are living through this time and the major changes that are occurring. We’ve gone from a few million online to billions in short time frame, and it continues to grow.

David explains how real time communication is vital in this new age and that “you are what you publish.” So, are you putting content out there on the web in real time? Check out his video.

Marketing and Leadership Speaker David Meerman Scott from David Meerman Scott on Vimeo.

I would like to thank David for inspiring me. When we met about 4 years ago, he was the one who told me to start writing a blog. It took a little while to sink in, but about 3 years ago, I started blogging sporadically, and shortly after I began posting a blog every week. We are living in the times of sharing content. Are you?

This week not only represents the start of the holiday season but also the coming together of family and friends. We all come together and sit in front of an amazing spread of food to celebrate how thankful we are for the sacrifices our forefathers made to journey so far and under such risky conditions in order to start a life in this new land, which was not so plentiful at times. They did this, so they could have a level of freedom that they were not experiencing in their home country.

They likely never envisioned how plentiful and varied the food in this new land would eventually become. Since it seems so natural for us to have all this food, we forget it wasn’t always this way. We sometimes lose sight of the potential for abundance all around us in all the areas of our lives. If we would just open up to the possibilities that other entrepreneurs and technology have harnessed, we could create vast abundance in our lives. We should be thankful for both what we currently have and also what we could potentially have. We have created this abundance, and we have so much more potential to do it over and over again.

I listened to Peter Diamandis speak at the EO Conference in Istanbul this September, and he shared stories of Abundance (also the name of his book and some of my blogs). His stories could make your jaw drop, especially when you consider their implications. We have the potential for abundant energy, food, water, education, computing, health care, and freedom. If you would like to know more about the potential of abundance, read Peter’s book or some of my blogs learn more about the abundance we have the capacity to be thankful for tomorrow.

I am thankful for the entrepreneur and that we live in a world filled with them. I am thankful they are passionate about something that drives them to put forth the effort to go out and create these new inventions. This allows us to live in abundance and gives us the potential for so much more.

Go make it happen, my entrepreneur friends, and show the world that a scarcity mindset is not necessary because we have the ability to live in a world that serves us all.

I have returned home from my EO adventure in Istanbul, Turkey. What an amazing time with 800 entrepreneurs from 91 EO chapters in 39 countries around the world! We heard many interesting speakers, including the Turkish Prime Minister Tayyip Erdogan, who sent a recorded message for us. He told us about their country’s openness to trade and commerce. They are the fastest growing G-20 nation at 8.5%.

In last week’s blog, we discussed how we are entering the Web 3.0 world. That world consists of mobile. We talked about creating real value for customers and real commerce for merchants. I recently came across some really great examples of this in an article called Web 3.0: The Mobile Era written by Jay Jamison, who has a venture company that invests in early stage mobile companies.

Mobile acts as a much tighter link connecting advertisers and users, which makes it easier to close a transaction. Jay says “Now technology services have the ability to leverage not just the social graph data from Facebook, but even more real-time / real-world information. Your current location, weather, traffic, local merchants other friends nearby, how often you’ve been to this specific store or location are available (or will be soon). And this in turn provides a whole new level of commerce opportunities for potential advertisers.”

Let’s look at a few companies that are already doing this, like Waze, ShopKick, and Foodspotting. Waze is a service for social mapping and GPS. It provides the fastest routes around congestion with real time traffic information. You can also get offers for the cheapest gas along your route from Waze. Do you think this will drive some people to do business through those offers?

Another mobile app called Shopkick is pretty neat in that it turns the shopping experience into a game. It rewards shoppers for tasks and quests that they complete, and Shopkick is showing that shoppers spend more money in stores while using their app.

How would you like to know the best dishes to buy at local restaurants? With the Foodspotting app, you can. It knows where you are and shows you the pictures of what others rate as the best food at nearby establishments. This is very cool for the merchants because they can offer promotions to those that are looking at the dishes they want to order, which will drive people to go there to eat. What’s to think about? You are looking at a yummy dish that you already are dying to try, and a promotion comes along with it. I am seeing the dollar signs, are you?

As I assume you are staring to guess, the world of mobile is going to be exciting for both the users and businesses out there. This is not a world of ads that will pop up on your screen. This is more about the creative interaction that can occur when you position all the technology that we have in our hands in a way that engages our customers to want to spend money with us. This will be a disruptive world and one in which the innovators will be the winners.

What are you doing to engage your customers with the mobile experience and make them more eager to spend with you?

cvs Zofran

Having a business and being an entrepreneur, you attempt to make a difference in your life, sometimes in the lives of others, and not so often, in the world. I see this on a daily basis because running a company is integral in the lives of many people around me.

You usually see the small things but not the larger impact that you might make someday in the future. For example, you may have created some great product that improves the lives of others in a meaningful way, or you may go public in an IPO and share stock with your early hard-working employees that one day generates more money than ever imagined.

Sometimes, your greatest impact to make the world better may not even show up until after you’re gone. This was the case for Rachel Beckwith, a little girl that forever changed the lives of 60,000 people after she was killed in a tragic accident. I will share the story briefly, and then you can watch the short video to see the effects of her dreams and actions. Warning to all viewers: if you are uncomfortable feeling the goodness of humans helping each other and fear a tear may build up around your eyes, don’t watch this video.

At 9 years of age, Rachel Beckwith had a big heart and wanted to solve many of the problems she saw in the world. When Scott Harrison from Charity Water (my favorite charity) visited her church and shared how his organization helps young kids in Africa get access to clean drinking water, she set out to help and created her own fundraising page. With her ninth birthday coming up, she asked those that normally gave her gifts to donate $9 instead, with a goal to raise $300.

She raised $220 and made a promise to try harder next year. However, a few weeks later, a tractor-trailer on I-90 near Seattle, WA jackknifed into a logging truck and smashed into Rachel’s car. She was the only one critically injured, and on July 23, 2011, she was taken off life support. The news of her story soon spread, and in the month that followed, approximately 30,000 people gave $1.2-million.

Watch as Rachel’s mom goes to Africa to witness the new wells flowing with clean water and the impact that her 9 year old daughter has left on the lives of so many.

What is the legacy that you are going to leave behind?

See VIDEO here.

Mary Meeker recently released her annual overview of internet trends, and I found it to be very insightful. You may remember that I have discussed Mary’s research and opinions on this topic in some of my previous blogs. She pushed forward as a leader in this space with different investment banking firms and is now a partner at one of the most prestigious venture capital firms, Kleiner Perkins.

Meeker’s overview includes more than one-hundred slides, so I have summarized some of what jumped out at me. The general theme is that internet growth is still significant and mobile adoption is still in the early stages. Many of the slides show examples of how this connected world is creating the Re-Imagination of everything.

The Smartphone has penetrated only 953 million users when compared to the 6.1 billion mobile phone subscriptions as shown on slide 11. This is a huge upside. Think about all the new businesses and people considering apps moving forward. Is your business prepared to benefit from this growth?

Next, on slide 10, compare the global penetration between the Android and iPhone shipments. Android has over 250 million compared to over 60 million with the iPhone. This is a four times difference, and it makes you think about for which one you would build an app. Looking at your demographic, area, and global reach will help to determine if you choose to create an app for one or both.

Slide 18 shows India’s usage of the internet on a desktop has decreased over time, and their usage of internet on mobile devices has increased over the period 12/08 to 5/12. Mobile usage has currently surpassed that of desktops, which should be considered for the monetization of sites. Most sites make more money from ads on the desktop than on mobile. This will changes things.

Mary also makes several points about how things are changing in the world with the internet. In 2010, after 305 years, newspaper ad revenue was surpassed by internet (slide 32). The trend lines for the newspaper ad revenue were declining much faster than the internet was sloping up.

From a technology investment perspective, be careful. Look at slide 108. Out of the 1,720 IPOs over the periods 1980 and 2002, only 2% of these companies accounted for 100% of net wealth creation.

Mary states that the “Magnitude of upcoming change will be stunning. We are still in spring training.” She gives a long list of reasons in slide 85. A few key elements include nearly ubiquitous high speed wireless access in developed countries, fearless and connected entrepreneurs, and inexpensive devices and services, including apps.

How are you benefiting from these major trends taking place right before our eyes?

Something exciting has happened in the entrepreneurial world, and I want to share it with everyone. The JOBS Act, passed by both houses of Congress in March and signed into law on April 5th, will generate big changes for the growth of small and mid-sized businesses. One of the major amendments in this bill would allow crowdfunding. I see this evolving into a significant means for companies to access increased funding, and it is a great way for small investors to find more opportunities to devote their money to companies with which they are more closely involved. Given how connected we are through social media and the internet, this is ripe for the times!

So what is crowdfunding? It is the opportunity for your business to use a website and social media to allow others with an interest and small sums of money to invest. Prior to this bill, the Securities and Exchange Commission (SEC) would only let a small number of people invest in one business, but once your business passed that limit, other investors were required to have a large income or net worth, or you would have to register as a security with the SEC. Crowdfunding will eliminate all this red tape and provide the opportunity to truly democratize the investment process.

This can be compared to a New York law which passed in 1811, changing the liability requirements for corporations and making it easier to establish one with minimal requirements. This allowed investors to hold a diversified portfolio of stocks without regard to the debts of the companies in which they invested. This freed up money to move in areas it was needed, which at the time included textile mills due to our challenges with Britain (War of 1812) reducing trade.

That timely law allowed money to flow where it was needed. Today, we have a similar environment where businesses can’t get the funding they need to grow because of all the bank problems. Banks withhold lending because they fear the bad economy, have experienced many losses already, and must hold more money in reserves due to increased government regulation. This starves the entrepreneur from the funding needed to take advantage of various opportunities.

Given my history with investments as well as the historical results when we democratize people, government, business, and investments, I see the start of a new era. Investing in a portfolio of startups will become as common as mutual fund investments! Does your business need capital to grow and could crowdfunding be the advantage you have been looking for to explore new opportunities?

Theophylline

Let’s continue our discussion from last week’s blog. How does Abundance solve the future problems that seem to loom before us like population growth, water needs, hunger, and power?

Abundance Thinking holds the understanding that we have the capability to solve our pains with the technologies we have already created. Those technologies are at such a level that the continued connectivity of each of them creates exponential opportunities for solving all the issues of the day and the problems out ahead of us.

Click Image below for TED Talk.

When I talk about technologies, I am referring to ubiquitous broadband networks, nanomaterials, digital manufacturing, synthetic biology, artificial intelligence, robotics, and infinite computing. These areas of exploration are a game changer for the world in which we live. For those skeptics out there, let’s look at a few examples.

Consider the issue of water needs, which is a major one. Dean Kamen was working to get sterilized water to dialysis patients, when he realized he could solve a problem of clean water for billions of people by creating the Slingshot. This device is the size of a dorm room refrigerator and has an intake hose and an outflow hose, so you could stick it into anything wet, and out would come pure pharmaceutical grade injectable water for dialysis. Great for drinking also! Anything wet includes salt water, arsenic-laden water, and even the latrine. Can you imagine that?

This ultimately translates into helping to solve the population explosion. How? Most people that have large families are rural farmers that need more people to work their farms. They have more children because they tend to have a higher mortality rate in rural areas without clean drinking water. Solve the water problem, and you take huge steps toward the over-population problem.

Next, let’s tackle food. Vertical farms will change the game here. This would consist of utilizing buildings that would be immune to weather changes, so crops could be grown year round. It would take ten to twenty soil-based acres to produce the same amount of crops as one acre of skyscraper or vertical farm. This also means no pesticides or herbicides to runoff and effect the environment.

Now, we will take a look at the power issue. An updated version of the stirling engine can burn almost anything, and it is being used to power things like cell phones and lights. This engine can also power the Slingshot. Guess what powered it during a six month trial in a Bangladesh village? Cow dung!

All these examples prove that we really can solve huge problems and realize how abundance will raise the living standards, save resources, and provide ecological benefit to all on the planet.

If you are wanting to explore this more or still not convinced check out the TED Talk by Peter Diamandis or read the book.