Innovator's Dilemma - Intel's Andy Grove

Some important observations from Intel's former Chief Executive & Chairman, a man recognized as having a monumental role in the success of Intel and Silicon Valley. As summarized in the 1/12/09 issue of Business Week, he is credited with saving the U.S. chip industry and Intel in the 1980's. Currently an advisor to Intel, here are some of his tidbits of wisdom:

- Only the paranoid survive.
- The Valley's techies don't worry enough. He sees shortsightedness and shortage of ambition in Silicon Valley.
- What really infuriates him is the concept of the "exit strategy". That's when leaders of startup companies make plans to sell out to the highest bidder rather than trying to build important companies over a long period. "Intel never had an exit strategy."

The greed being bemoaned in our culture today isn't limited to the banking/brokerage industries. There's a pervasive mentality - human nature I suppose - to cash-in/get rich quick. The growing sophistication of the global economy (see Friedman's The World is Flat), and the global economic tsunami that became headline news beginning back in September 2008 all heighten the importance and value of Grove's observations and guidance.

Innovator's Dilemma - Hometown friend, inventive genius

A neighborhood friend from kindergarten days and a classmate through high school years, grew up to become one of the world's driving forces behind unleashing innovation that has and continues to impact lifestyles globally (i.e.: Palm Pilot, Handspring's Treo & more): http://en.wikipedia.org/wiki/Jeff_Hawkins

Now his current company is on a quest to create a break-through computer that thinks like a human brain (a concept some sci-fi'ers think has parallels to stories behind the blockbuster movie The Terminator or even The Matrix Trilogy).

Innovator's Dilemma - Innovation economics

(http://www.innovationeconomics.org/) “Innovation economics” recognizes the reality that a global, knowledge-based economy requires a new approach to national economic policy based less on capital accumulation, budget surpluses, or social spending and more on smart support for the building blocks of private sector growth and innovation.

When examining how the economy creates wealth, "innovation economics" is focused on a different set of questions:

Are entrepreneurs taking risks to start new ventures?
Are companies investing in technological breakthroughs and is government supporting the technology base (e.g., funding research and the training of scientists and engineers)?
Are regional clusters of firms and supporting institutions fostering innovation?
Are research institutions transferring knowledge to companies?
Are our trade policies working to ensure a level playing field for American companies?
Are workers getting skilled & r companies organizing production in ways that utilize those skills?
Are policymakers avoiding erecting protections for companies against more innovative competitors?
And perhaps most importantly, are policies supporting the ubiquitous adoption of advanced information technologies and the broader digital transformation of society and the economy?

Innovator's Dilemma - Quote of the Day

"The best way to predict the future is to invent it." - Alan Kay

Innovator's Dilemma - Quote of the Day

Mark Cuban quoting Warren Buffet concerning the current financial crisis: "First you have the innovators, then you have the imitators, then you have the idiots."

Innovator's Dilemma - Regulations?

Here we are in the middle of a historic chapter in the history of Wall Street. Some are saying that the US Financial System got into trouble due to innovation out-of-control. Thinking about that assessment, they may have a point.

There's lots of finger pointing all around, but think about this:
- Where were the Paul Revere's in the media, sounding the early-warnings? (other than Jim Cramer)
- Where were the Paul Revere's in the Congress, sounding the early-warnings?
- Where were the Federal and State Government Agencies responsible for monitoring this industry?

While human nature typically is more engaged and responsive to emergencies than to the status quo rhythm of the day-to-day, think about it ..... could all of the above missed this current crisis that is impacting every major institution in this sector - virtually all with successful track records that go back over 100 years .... by greed and corruption? Think about that. Maybe one or two firms may get poisoned by a corrupt regime, but virtually all the players in the industry at the same time? Again, think about that.

If alarm sounding was virtually non-existant, what does this suggest? Were laws broken? Not that I've heard thus far. What is different? From what I have heard, laws for this industry have been evolving over the last roughly 2 decades to accelerate home ownership. As some analysts are saying, a nobile cause, but operationalized by softening time-tested rules for qualifying borrowers. On the surface, what institution would loan money to the unqualified? Well, if the government can fine a loaning institution if it doesn't follow new laws that require these institutions to offer these riskier loans, plus a complex set of industry schemes (that get beyond my understanding) allow these loans to be packaged and resold, then a government sanctioned shell-game is unleashed ... that created a bubble (which has its roots with Freddie Mac and Fannie Mae) ... that is now bursting.

Talk about a whole different type of an innovator's dilemma ... an evolved industry, following evolving (but untested) new laws, in a capitalistic system where investors demand that business leaders seek the best possible returns.

I don't pretend to understand why the "policing" of this industry failed, but am becoming increasingly convinced from my ongoing consumption of reporting on the current crisis, that Congress is one of the main reasons for setting the stage for what has happened. If the US does not get a true understanding of 'why', then proper corrective action will not be identified.

Bad-innovation can be tragic. Knee-jerk rhetoric fixes nothing. I believe that passionate innovators appreciate this challange and are dedicated to do their diligence to ensure effective innovation.

Innovator's Dilemma - Inside or outside

Find your passion but get caught up in the storms of today's economic climate and/or enticed by packages to leave early? If you've found an innovative idea that ignites your passion, I'm here to testify that you can change horses and still achieve your goals. After years of working on creating and launching several innovative eCommerce/Digital Media initiatives from the inside, I then pursued virtually those same goals from the outside via suppliers into the sector. In recent months a deal was secured and launch planning began (it's just Phase 1). AT&T just made their official press release announcement about "ConnecTech". Here are several stories commenting on AT&T's entry into competing with BestBuy's GeekSquad (and Wal-Mart/Dell who beat them to market with a market trial):

CNET: http://news.cnet.com/8301-1023_3-10022183-93.html
PCWorld: http://blogs.pcworld.com/staffblog/archives/007525.html
USAToday: http://www.usatoday.com/tech/products/services/2008-08-21-att-connecttech_N.htm
Barron's: http://blogs.barrons.com/techtraderdaily/2008/08/21/att-offers-rival-to-best-buys-geek-squad-119-to-set-up-your-new-pc/?mod=googlenews_barrons
Bloomberg: http://www.bloomberg.com/apps/news?pid=20601103&sid=apuraJ5fZ6v8&refer=us
San Francisco Chronicle: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/08/21/BU9812GA1G.DTL&type=tech
TelephonyOnline: http://telephonyonline.com/broadband/news/att-geek-squad-082208/
TheIndustryStandard: http://www.thestandard.com/news/2008/08/21/t-launches-home-tech-service-connectech
DSLreports: http://www.dslreports.com/shownews/ATT-Will-Now-Install-Your-Home-Theater-97143
FierceTelecom: http://www.fiercetelecom.com/story/t-takes-geek-squad/2008-08-21

Innovator's Dilemma - When Tradition holds the trump card

Innovation. Are there exceptions? As Thomas Friedman wrote in The World is Flat, visit Florence, Italy and gain a better appreciation of the virtues of hanging on to the old and traditional. Is Florence the center of commerce any longer? Of course not. Is it still on the world's short list as a destination to visit? Sure is.

Now segway that notion to 2008. Major League Baseball just celebrated the annual All-Star Game at Yankee Stadium in The Bronx. A big celebration for The House That Ruth Built. There have been make-a-buck schemes going on for at least a year and as an article in the All Star Game program said, The Yankees will be cashing in on a memorabilia craze as they sell off everything from seats to dirt from Yankee Stadium (Hey, I get it. As a fan back in my high school years while living in suburban NY, I went to the last game at Yankee Stadium before the major renovation when the Yankees had to play 2 years at Shea Stadium. That winter I visited Yankee Stadium, bought a seat from the stadium with #7 on it (Mickey Mantle's number), a metal framed plastic number 7 that used to be manually placed on the scoreboard, and a few other goodies. That firesale back in 1973 tool stadium memorabilia to a new level. This 2008 version will take stadium memorabilia into the stratosphere.

So, the new Yankee Stadium (which Fox Sports cropped out of aereal shots of All Star Game) sits right next door, just beyond Left Field. Sitting in the Right Field Line seats, you can look out beyond the Left Field wall and see the massive structure with "Yankee Stadium" across the stop. A bit surreal.

However, this advocate and proponent of innovation will take a stance against the new stadium with the abundance of luxury boxes (and about 8,000 fewer seats). Gee, imagine what supply and demand will do to future ticket prices. That said, my stance isn't economic. As the folks from Florence recognized, some things are worth saving and protecting. Here in the USA we generally have a track record of bulldozing our heritage. One of the most recent monuments to fall was the old Boston Garden. I never went to a game there, but via TV, felt a reverence for this cathedral for basketball. Yankee Stadium, along with Wrigley Field in Chicago and Fenway Park in Boston are among the last of an era. My instinct is that Chicago and Boston fans will fight to protect their cathedrals.

Reflecting upon what I have seen and heard over the last few years in the NYC area, I do not recall one peep from traditionalists, from historians, from preservationists (etc.) who could have raised a hand and voice and said "no" to taking down Yankee Stadium. Years ago "The Boss" got everyone's eye off the ball by flirting with moving the Yankees to New Jersey. Yea right. Maybe keeping the Yanks in The Bronx became the distracted goal.

A few weeks ago I took family from Indiana to their first game at Yankee Stadium. Baseball junkies who have visited about every stadium in the country over the years, they saved the best for last - Yankee Stadium, The Mecca of all sport venues. Their reaction? "Why are they going to tear this place down/replace it? This is a beautiful stadium!" I told them they were right in my mind. Yankee Stadium is more that just fine in my book - it is the epitome of the baseball experience (and so is grass - which MLB has switched back to after the farce of astro-turf for decades; day games ... and thumbs down on the designated hitter). Baseball is a sport of tradition. Chicago and Boston get that. New York blinked. What a shame. Sometimes innovation can stand aside and respect the brilliance of tradition (which was once innovation in it's day).

Innovator's Dilemma - An important tip for LinkedIn users

Just read an important tip in "JibberJobber Blog" about a critical maintenance step to take to back up your contacts and profile in LinkedIn. Here's the essence of the story followed by a simple 'how-to' (it takes just seconds to back up your information ... so before you even walk the dog or peak at the news, I suggest taking this simple preventative step!!!):

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I (Jason Alba, the Jibber Jobber Blog owner) got an e-mail from Susan Ireland, at the Job Lounge. She asked me if I knew anything about LinkedIn deleting people’s accounts… I’ve heard a little about this, but mostly just hand-slapping for looking like spammers. Getting an account deleted can be a huge problem, especially as you use LinkedIn more.

She writes about it here (I can almost hear a tear drop on her keyboard as I read it… ouch!!!).

The two issues are (1) why she was deleted, and (2) what LinkedIn can/will do about it. I have no idea why she was deleted, and apparently she doesn’t either. As far as she knows, she wasn’t doing anything wrong with her LinkedIn account, or LinkedIn connections. As far as what LinkedIn can or will do, here is their response:

“At this time we do not have a recommended back up system for your account. Once something has been deleted there is not a back up at this time to recover any information. …One thing you can do is copy your profile information and save it as a word document so that you will always have it on your computer.”

Not very comforting, is it?

Here are two absolute must-do’s, right now, on LinkedIn - and they will take less time than it takes to read this blog post (so do it now!):

1. Export your contacts. Simply click on Contacts, scroll down to the bottom of the screen and click on Export Connections, and follow that process. Just leave everything at default and you’ll end up with your connections in a .csv file, which opens in Excel.
2. Export your profile. You’ve probably put a fair amount of thought into creating your profile, right? What about any references you have gotten? Simply click on Profile, then find the grayed-out icons above your name, and click on the adobe pdf icon. This exports your profile, including recommendations, into a very nice, presentable document (kudos to whoever at LinkedIn did that formatting, it is very well-done!).
   

Echoing Jason Alba's conclusion, these are the two most important things for me to grab, if I knew my LinkedIn account might go away. (1) Who I connected with, which includes e-mail addresses very every single contact, (2) my recommendations (I can always rethink and recreate a profile, but those recommendations are priceless!).

Hope this tip helps.

Innovator's Dilemma - Quote of the Day

All truths are easy to understand once they are discovered; the point is to discover them.
-- Galileo Galilei