I have already written about the importance of scarcity when we talk about innovations.
In today’s world, I frequently observe a pervasive mental haze induced by abundance, affecting both individuals and organizations. This phenomenon is ubiquitous, spanning from personal behaviors to corporate practices.
When resources are plentiful and wealth is abundant, there is a tendency to overlook the finer details, such as optimizing efficiency, mainly when financial constraints are minimal. With ample funds at one’s disposal, there is freedom to pay whatever is necessary—an approach often accompanied by the rationale: “If we don’t exhaust this year’s budget, next year’s allocation will be reduced, so spend whatever you can in these final weeks!”
However, is this the most effective way to allocate funds? Could we achieve more with the same resources? Consider Kai-fu Lee’s venture, 01.ai, or the outcomes of DeepSeek in the realm of artificial intelligence. Both initiatives have demonstrated that exceptional results can be achieved with modest financial input.