How Google and Japan’s top business school use ‘moonshot transformation’ to leap ahead

Every business wants to be sustainable, but sustainability is hard to come by. A study by the American Enterprise Institute revealed that only 12 percent of Fortune 500 companies listed in 1955 were still around in 2017. It predicted a similar demise for today’s business giants 60 years from now.

But how can massive corporations save themselves from becoming obsolete? For Google, the answer lies in “moonshot” thinking, which involves solving a huge issue with a radical idea that uses cutting-edge technologies.

Dr Jorge Calvo teaching moonshot transformation. / Photo credit: Globis University

Graduate School of Management, Globis University deputy dean Jorge Calvo explains that moonshot transformation requires radical solutions to solve global-scale problems.

This concept led Google to form its subsidiary X in 2010. X calls itself the “moonshot factory.” While the name may sound unfamiliar to most, X is behind the tech titan’s most radical inventions, such as Google Glass and self-driving cars.

By aiming for a tenfold exponential improvement instead of a 10 percent incremental boost over existing conditions, X isn’t just focused on creating the next big thing – it’s also involved in ensuring Google’s survival.

Moonshot thinking and the resulting transformation can be exciting, but it’s usually only successful examples like Gmail and Google Chrome that get the spotlight. However, moonshot transformations are entirely possible for any company to accomplish.

What is moonshot thinking?

For a company, going for an exponential goal that’s tangential to its original mission is the essence of moonshot thinking, says Calvo.

Calvo explains that the term “moonshot thinking” can trace its roots to a 1962 speech by John F. Kennedy. The former US president declared that America would “choose to go to the moon in this decade and do the other things, not because they are easy, but because they are hard.”

Photo credit: Pexels

According to Calvo, although the technology at that time “was far inferior to our current technology, the research that went into accomplishing the moon landing boosted computer development exponentially.”

However, Calvo believes that reaching the moon wasn’t the true benefit of Kennedy’s project. Instead, he says “the most important outcome of moonshot thinking is the exponential transformation generated by the journey.”

Structuring a moonshot transformation

While the specifics might differ between companies, most moonshot transformations share similar strategies.

In the case of X, Google recognized early on that it was important not only to work on products, but also to develop radical technologies that would have a huge impact on their mission.

As tech magazine Wired noted in 2013, Google is built upon a series of disruptive innovations – such as Gmail, Google Translate, and Google Books – that have changed not just the internet but also the way we do things.

But as Google continued to grow into a corporate behemoth, it became necessary to separate the optimization of its existing products from the need to continue dreaming up new innovations.

As Calvo explains, it is “necessary to keep [the moonshot thinkers] separated from the core activity of the group because they are long-term impact oriented, not profit-driven.”

This need explains why X was established. Because they don’t have to look at the bottom line, the people at X are free to explore potential future technologies that could exponentially transform Google’s mission.

Shooting for the moon at Globis University

But moonshot transformations aren’t just for large corporations. Smaller companies, such as Japan’s Globis University, are also capable of pulling it off.

Founded as a startup in 1992, Globis applied moonshot thinking with an aim for a better society by providing world-class business education.

With 800 students in 2017, Globis is Japan’s largest business school. But it is still working towards its original goal, now with the help of technology. For example, students have the option to choose whether to attend physical classes or plug in and participate in live online courses from anywhere around the world.

Another of Globis’ moonshot initiatives aims to revolutionize the education industry, by providing personalized business education through artificial intelligence.

“AI that can ask and answer questions in natural language could help foster critical thinking and reasoning in management decision-making,” explains Kenichi Suzuki, Director of Research at Globis University.

Rather than wait for other players, Globis is proactively working with Kentaro Inui, an AI researcher from Tohoku University, to develop the necessary tech.

Preparing for moonshot transformation

Businesses looking to kick-start their own moonshot transformations may find the necessary resources at Globis as well.

“It’s something you can learn,” says Globis University president Yoshito Hori. “It’s a paradigm change in the way of thinking – not continuous innovation, but rather a universal methodology which anyone can learn or apply.”

The university’s commitment to moonshot thinking is evident in the way it runs its programs.

Becoming fluent in the language of the future involves embracing technological integration into your business. To that end, Globis University has set up the Technovate initiative, which includes courses such as Leading Big Data Strategy and Industry 4.0, in addition to Calvo’s course on moonshot transformations.

A Globis MBA student taking an online Technovate course / Photo credit: Globis University

On top of having a future-oriented curriculum, Technovate also disrupts the way MBAs are usually done.

“Students can choose to study with us through live online classes and our digital learning platforms, using content which was developed in partnership with experts from the tech industry,” says Hori. This is in line with Technovate’s goal to craft courses that bridge technology and management, helping business leaders thrive in the tech era.

Find out more about Globis University here