If you presented an idea to invest $4.5 million with a 25X return, the clear majority of company executives would say yes—regardless of industry sector. This was precisely the case with the recently released movie, Get Out, directed by Jordan Peele from the duo of Key & Peele of Comedy Central fame. Similarly, oil and gas companies are experiencing dramatic returns on investments due to the economics and repeatable process of fracking. Instead of taking decades to bring oil and natural gas to market and then operating for decades, fracking is something that can be started up in a few months and which runs for a year or two only.
Let’s look at the success of SpaceX rocket ships, which are costing one-third less than what the cost is for NASA. A SpaceX launch costs approximately $440 million while NASA costs three times this amount. The secret sauce for SpaceX is their approach to designing reusable components of the rockets when they return to earth. As you can imagine, this represents massive savings and of course speed; SpaceX recently had successful launches in January and a month later in February of this year.
Speed, innovation and being unafraid to fail is the name of the game for global corporations, public sector, NGOs, and non-profits. Get Out was cast and shot in approximately six months and debuted in January 2017 has grossed $100 million already and still going strong. By contrast, Cat Woman cost $100 million to make and took in only $82 million. Elon Musk and the SpaceX program have had a few launch failures, to say the least, but more successes to be sure. Moreover, with fracking, it takes mere months to get a crew up and running rather than years compared to large exploration projects. The economics, investor patience, technology capabilities and human imagination have indeed changed the landscape for all industry sectors. The good ole days in business are gone—and for those who believe they will soon return, let us all know when they do. In the meantime, keep innovating, and continue to be bold and brave!