When I worked for IBM, I had the pleasure of working with some of the smartest, most reliable people in the world. At the top of that list was a visionary leader named Jim Hile. Jim has a unique gift for seeing opportunities, and he is fearless in doing the work required to seize the day.
After his retirement from IBM, Jim invested in a struggling technology company in the virtual reality space (VR). Through his tireless work, great leadership and a healthy dose of capital, the firm was turned around and sold. Jim saw the opportunity and seized it.
While Jim was running the firm, I got a tour, and a demonstration of how virtual reality systems work. For those not familiar with VR, the most advanced systems are room-sized 3D immersion systems. You can create any environment or simulated physical reality that you want. For those of you familiar with Star Trek, this is the closest we have come, so far, to a “holodeck.”
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The process of automobile design has been transformed by this VR technology. For nearly 100 years, it was standard practice for automotive companies to use craftsmen to build a clay model of a new car. Every time something in the design changed, the craftsmen had to rebuild the model. Using VR, round headlights can be replaced with rectangular headlights with the click of a mouse. Imagine the time savings and freedom this brings to designers.
By now, you are likely asking yourself, “OK, but what does increased efficiency in automobile design have to do with risk reduction?” A fair question, deserving of an answer. By being able to show and adjust a design before producing a product, companies can reduce the market risk of launching a new product.
I may have mentioned this in the past once or twice: we humans perceive best through our visual sense. We see the answer, we see a problem, we see.
Any exercise in risk reduction that does not allow the stakeholders to see the issues at hand will be limited in its effectiveness. Visualization is the key to better understanding and better solutions.