Monday, June 12, 2006

Blog Archived

Now that I've graduated from MIT, I'm going to archive this blog. I'll keep it up for posterity sake, but I won't update it moving forward.

I've received and continue to receive a lot of positive feedback regarding the things I've written about here. I'm glad I started this blog not only to serve as a future reminder to myself of the various people, places, and events I experienced at MIT, but also for anyone else that is interested. Thanks to Yoav, Matti, Ilana, and Sam for also blogging while at SDM. It has been fun comparing notes!

Sunday, June 11, 2006

It's official!

I've graduated from the Massachusetts Institute of Technology with two Master's degrees. Commencement ceremonies were last Friday (June 9th). The weather was horrible (of the Boston variety) on Wednesday and Thursday, but amazingly held out for us on Friday. There were just a few sprinkles, but the commencement gods took it easy on us. While I won't look back on Boston weather with fond memories, at least I can't say that my graduation day was ruined. It ended up being rather cool and comfortable!

Here I am in full graduation regalia:



It was great seeing my classmates again and reminiscing about old times. As my wife will attest, I rarely take time to appreciate my achievements, but it was hard not to this time around as I walked down the ramp after having my name called out and receiving two diplomas from MIT. It was the culmination of a lot of hard work and personal sacrifice to attend a university I've held in the highest regard. I owe my wife a debt of gratitude for being so supportive through the whole thing. She's amazing!

What's next? Who knows. I wrapped up my 10th computer book last week so now I find myself with a lot of spare cycles. I'm exploring a few things and I'm sure by the end of the summer I'll be at full capacity again. That's the way it always has been with me. It is nice to have a little break, but I can already feel my ambitionitis starting to flare up!

Sunday, March 19, 2006

Joel Moses, Institute Professor, MIT

Professor Moses gave the Thursday keynote for our SDM business trip. He is one of only a handful of Institute Professors at MIT. Here is a description of what it means to be an Institute Professor:

"There are only 15 Institute Professors, and they are regarded as the very best among an already impressive crowd. The highest honor awarded to MIT faculty, appointment as an Institute Professor is at once an acknowledgment of extraordinary leadership, accomplishment, and service and an invitation to follow intellectual pursuits without the hindrances of departmental responsibilities. Institute Professors report directly to the provost, rather than to a department head, and they have no obligation to teach, which opens the door to projects and political appointments that would otherwise not be feasible." (read more)

Professor Moses was involved in the initial creation of the SDM program. He didn't have much in the way of a prepared talk, he just answered questions.

Professor Moses bio

Notes:
  • Talked about the founding of the SDM program
  • Recent Visiting Committee that evaluated MIT programs said that SDM was the "best program" and the "Sloan of yester year"
  • Q: Why aren't other institutions implementing programs like SDM? A: Primarily because engineering and business schools aren't that close
  • Q: What was the feedback from industry when you started SDM? A: Speed up the process of training an engineer to run a large organization
  • Q: Do you think we have enough classes on finance? A: We don't teach you everything you need to know. We teach you a process for how to learn.
  • Recommends a book by a MIT Political Science professor: How We Compete
  • They didn't want to have a second degree for SDM to be a MBA because of the stigma around MBAs
  • Everyone talks about courses, courses, courses, we are teaching people how to learn

  • Randall Pinkett, Entrepreneur, Apprentice Season 4 Winner

    I heard that Randal Pinkett was going to be at MIT Thursday afternoon to speak to LFM. They had a few spots open for students of SDM so I signed up. I watched Season 4 of the Apprentice and knew all about Randal. He has 5 degrees including 2 MIT graduate degrees as part of the LFM program and a Ph.D from the Media Lab.

    I've listened to over 50 talks since I've been at MIT and Randal ranks near the top in terms of presentation skills. He is extremely personable and a very dynamic speaker. I guess this should come as no surprise considering one of his early companies did corporate training for presentations skills and the like.

    Randal's talk covered the 5 main lessons he's learned over his career and an update on what he is doing and what he has planned for the future. There was plenty of time for Q/A at the end and Randall answered several questions about the Apprentice (including the Rebecca controversy). I took ample notes.

    Randal's bio

    Notes:
  • Admitted "Aprenti" is not a word, but "when you have 5 degrees, you can make up words"
  • Started the talk by giving several "shout outs" to some acquaintances in the audience
  • He found it a little odd to be speaking at MIT when he was sitting in the same seats as us just a few years ago
  • Most people talk about starting a business as a "venture", but he thinks of it as an "adventure"

    Five lessons learned:
    #1. Know your position and play your position
  • He's started all of his company with the same 3 guys
  • He had 5 degrees and earned $25,000 his first year after completing his Ph.D at MIT
  • Required a lot of sweat equity and persistence to get his bootstrapped ventures off the ground
  • Before the Apprentice, he met with his executive team to figure out how to brand himself on the show
  • He decided to position himself as a strategist and he thinks that paid off
    #2. Take risks but accept uncertainty
  • At his company, he encourages risk taking
  • If you take risks, you will fail a lot
  • He was concerned going on the Apprentice about how he might be portrayed. Going on the Apprentice was a big risk. Jennifer W. was an event planner and she got fired on the show because she did a poor job of event planning. That can't be good for her event planning career.
    #3. Don't be afraid to make mistakes, but be sure to learn from your mistakes
  • Every month he does debriefs at his company. They aren't the easiest things to do, but they learn a lot.
    #4. It's not what you know, it's what you can learn
  • Important to be able to take what you learn and apply it in different fields
  • At MIT, he learned skills on how to learn new things
  • The adaptability he learned from MIT helped him on the Apprentice
  • Working in the entertainment industry now with Trump, but he doesn't know anything about the entertainment industry (yet)
    #5. It's not who you know, it's who knows you
  • He knows who Bill Clinton is, but Bill Clinton doesn't know him
  • If no one knows what you bring to the table, there is no way to make your network work for you.

    What is Randal doing now?
  • A month ago he started his assignment with the Trump organization
  • From January to mid-February it was a media whirlwind for him
  • He has 3 projects with Trump: 1) Overseeing a renovation of Trump properties in Atlantic City. 2) Upgrade Trump Entertainment's IT systems (they are currently running Lotus and will probably move to MS solutions). 3) Helping Trump with some developments in Philly (Randall's hometown).
  • He has two books in the works: "Campus CEO" in Feb 2007 about how to start businesses from college and "Black Faces in White Places" which hasn't been signed yet
  • He is doing a national commercial with Outback Steakhouse sometime this year
  • He has become a national spokesman for Autism Speaks (the charity he worked for during his final assignment on the Apprentice)
  • He has been doing a lot of speaking engagements
  • Maintains his connection with BCT Partners
  • Anticipates returning to BCT in a full-time capacity after his Trump assignment (he said this is publicly known) at which point he wants to turn BCT into a multi-billion dollar org like Trump.

    Q/A
  • Started 5 companies, but 2 crashed and burned
  • Regarding the final episode and the Rebecca controversy, there was a bit of confusion as to whether Trump was asking Randal if Rebecca should be a co-Apprentice or if she should have a job with Trump. Randal thought Trump was asking if she should be a co-Apprentice. Randall said Trump later confirmed this to be correct in interviews. Randal was glad with his decision because he didn't believe Rebecca deserved to be co-Apprentice.
  • Randal's experience with Trump so far: Trump is tough, but Randall doesn't mind asking questions and Trump has been very understanding
  • The boardroom scenes on Apprentice take 2 hours to film, but you only see 15-20 minutes on TV
  • They did some creative editing on Apprentice like when Trump said Randal might be in trouble during a boardroom and they cut to Randall swallowing hard and looking concerned. Randal said that was at another point in the boardroom and not related to Trump's comment at all.
  • Before going on Apprentice, the producers asked him if he would feel comfortable being the "black guy". Randall said he is used to it. Now he has a platform to communicate his message.
  • Q: How do you decide to take on something new? A: He's overly ambitious. He's learning about setting priorities and learning a lot from Trump on this. Trump is real particular about his time. Randall doesn't think he is foregoing his health, faith, friends, or family at this point.
  • When you are new to an organization, you need a dense network and over time you need a broader entrepreneurial network
  • Q: What did he learn on the Apprentice? A: Didn't learn much. It was more about applying what he knew. Team dynamics was interesting to deal with.
  • He wants to get a role similar to Bill Rancic (as a fill in when George can't make it) for Trump Season 6 in LA this spring.

  • Wednesday, March 15, 2006

    Something I don't miss

    Is the weather in Boston. It was sunny and chilly (~40 degrees) this morning. At lunch, I watched a snow storm (yes a snow storm), roll over the Charles River with a fury. The winds had to be at least 40 MPH if not more. It was crazy. Then as quickly as it came in, it was gone. That's Boston!

    Negotiation and Conflict Management, Tom Kochan

    Professor Tom Kochan compressed a full length negotiation and conflict management course down to a couple of hours. I took a few notes, but had to leave three quarters of the way through to attend another meeting.

    Notes:
  • Most people make the mistake going into a negotiation, thinking they don't have the power or think they are at a disadvantage. This is a fatal flaw.
  • If you don't have power, you shouldn't be in a negotiation - you should be in avoidance mode.
  • Classic way to make a distributive situation into an integrative (or mixed) situation is to find something that is important to one person but not as much to the other
  • No negotiation will be successful unless you prepare
  • Have to know your BATNA - best alternative to negotiated agreement
  • You need to understand the difference between mediation and arbitration
  • Separate the person from the problem (if possible)

  • Scott Stevens, Vice President, Systems Engineering, Juniper Networks

    Scott was invited to speak to SDM on the topic of leadership. Scott's company is an archrival to my current employer (Cisco), but I tried not to hold that against him ;-) As Scott freely says, he isn't "politically correct" and his talk was very candid. It was actually refreshing to hear a VP of a major company be as frank and as open as Scott was. Overall, it was an excellent talk.

    Notes:
  • Mostly manages remote people
  • Juniper has had 14 consecutive quarters of growth (would have been more if it wasn't for that nasty bubble bursting)
  • Downturn was good because it got rid of a lot of the "bullshit"
  • Juniper makes $2B in revenue a year and have about 4000 employees
  • He thinks Juniper is at a fun size right now
  • Expecting approx. 30% growth per year
  • Not too worried about open source because their customers require a lot more than router code
  • Air Force was a great experience. At 24, he was in the Air Force and had 200 people reporting to him. Took him until age 38 to have that many reports again.
  • Leadership to him is very domain specific (leading people vs leading innovation)
  • Interesting transition to go from knowing everyone on his team when it was sub-100 to not knowing everyone
  • How do I lead? I hire smart people
  • Smart people are typically a pain in the butt. They are motivated differently and are very concerned about their career
  • The most fun thing he gets to do when leading the org is figuring out what his staff cares about and what motivates them
  • One of his rules: no politics within his org
  • Engineers like to know where the boundaries are
  • He still has some military in him when it comes to leading
  • "I" don't have to be right. "We" (as an organization) have to be right.
  • Seduction (ability to influence) is a big part of his job
  • He likes to do stupid/fun things such as trying to convince a flight attendant to give him a bottle of win before he gets off a plane (requires influencing other peoples moods)
  • They get 3000 feature requires per year but can only implement a couple hundred
  • Was your MBA help? "My MBA was interesting and that’s about all I'll say"
  • He spent 6 years after his MBA (at Oklahoma City University) studying leadership
  • Has thought about the difference between him and a front line individual contributor that has been at Juniper just as long as him
  • He thinks he has been successful because he has tried to think differently than everyone else and tried to do his job better than anyone else
  • Authority is just in the air waiting for someone to grab it
  • He had a list of 20 leadership techniques (I could only get down a few of them:
    - Call people on their agendas
    - Everyone is different
    - Have them be accountable for their role
    - Remain approachable but have a bite
  • As a low level leader, his job was to solve problems. As a high level leader, his job is to help other people solve problems
  • Career development is one of the biggest frustrations at a startup (it tends to not be a focus)
  • One of the most critical things about him as a leader is what other people are saying about him (his "identity")
  • He was "put in a corner" after Juniper bought his company so he decided to work on his identity and eventually he got his old job back
  • His leadership style changes as the situation demands. In the Air Force, he could send people to jail ;-)
  • Leadership is about seduction. Seduction is about relevance.
  • Consistent in his message both publicly and privately
  • Spends a lot of time thinking about what he can offer his team so they'll want to keep him around
  • Talked about trust as a big issue in leadership

  • Monday, March 13, 2006

    At MIT this week

    I'm at MIT this week for the SDM business trip festivities. I've already attended a couple of talks and will blog my notes soon. I'm going to attend several talks this week so I'll blog considerably more than usual for the next few days.

    Saturday, March 11, 2006

    Thesis topic redefined

    I've settled on a title for my thesis: The Dynamics of Internet Publishing. In it I cover the different forms of internet publishing including blog networks, ebooks, online books, online magazines, and other forms of online content. I analyze the disruptive force of internet publishing to traditional publishing, new opportunities internet publishing offers, and challenges internet publishers face.

    Originally, I had a completely different topic for my thesis. Since I was going to write something that was close to book length, I thought I'd try to turn my thesis into a book. This way I could get paid for writing my thesis. I had come up with a topic I felt was publishable and got a well-known publisher to sign it. They were going to give me a nice advance and we were all set.

    However, as I started to write, I lost interest. Yes, I was going to be paid for it, but I didn't want my MIT thesis to be on a topic that I wasn't passionate about (anymore). So I scraped the original book project in favor of a new topic that I am passionate about, namely internet publishing. I'm not going to approach a publisher about publishing this as a book. Instead, I'm going to self-publish it after I'm done (probably this summer). I figure this is a great way to cap off a thesis on internet publishing: i.e., self-publish it via the internet.

    Many of my friends and colleagues know I've been involved with the publishing industry since the late 1990s, but by the end of this year it should be apparent why I'm doing a thesis on internet publishing.

    Tuesday, February 14, 2006

    Disrupting my notions

    Disruptive Technologies was fascinating today. Professor Utterback traced back over the history of light bulbs and made many salient points along the way.

    A student had asked about "first mover advantage" in the previous class. He promised to address it later and did so at the beginning of class today. There are a couple of papers he spoke about (I don't have the references on hand) that covered the issue in some detail. The net result after looking at the "first mover advantage" for more than 10 years is that if anything, first mover advantage ends up being a slight disadvantage in aggregate. I look forward to reading the papers.

    Another point Utterback made concerns the fact that large companies have consistently shown to create significant advances in technology when challenged by a competitor, but can only improve 3-5% when not challenged. What does that say about what people are doing at large companies that aren't facing direct technological competition? It furthers my suspicion that large companies are filled with inefficient workers that add little to the bottom line. I estimate that in companies with tens of thousands of employees that you could cut 10% easy and potentially more of the workforce with little impact to the bottom line or the long-term results of the company. I don't have empirical data, it is just a guestimate based on all the inefficiencies I've seen in big companies. But I digress…

    Lastly, Utterback pointed out that companies tend to focus on improving only their own technologies as opposed to trying new technologies and improving them. For example, when Edison was making advances with electric-based lighting, the gas companies were scrambling to figure out how to make lighting efficient with gas. Companies would rather eek out performance in a long-standing technology than get ahead of the performance curve by adopting a new, promising technology.

    Interesting stuff.

    15.840 - Innovation in the Marketplace

    Here is the course description for my Innovation in the Marketplace class:

    The relationship between manufacturers and the customers they serve is changing very rapidly. Firms are increasingly outsourcing their product development. At the same time customers – both industrial buyers and end consumers – are rapidly becoming much more active as innovators. We examine this “Internet Age” change and explore its implications for the business models of both new and traditional manufacturers.
    von Hippel

    15.365J - Disruptive Technologies: Predator or Prey?

    Here is the course description for my Disruptive Technologies class:

    Focuses on the management of product and process innovation and on economic, management, and technological influences on innovation. Both sustaining and disruptive innovations in products and manufacturing processes covered in lectures and cases presented by the leaders of change in different industries. Emphasis on emerging and disruptive technologies as seen from the points of view of entering firms (predators) and incumbent firms (prey) are covered in a class exercise, and project (preferably done in small groups).
    J. M. Utterback

    15.905 - Technology Strategy

    Here is the course description for my Technology Strategy class:

    Provides a series of strategic frameworks for managing high-technology businesses. Emphasis on the development and application of conceptual models which clarify the interactions between competition, patterns of technological and market change, and the structure and development of internal firm capabilities.

    Final semester

    My final semester at MIT has started and I'm taking just a few classes remotely from NC. I also have a thesis to finish (which I've yet to start!) I plan to graduate in June assuming all goes well.

    Since I'm not on campus this term and not in the thick of things, I don't expect to post much to this blog. I will post occasionally as interesting things come up. After I graduate in June, I'll officially retire this blog to the blogosphere graveyard.

    Friday, January 20, 2006

    Story: New MBAs finding education pays off big time

    This is good news for those working on an MBA or those that have just completed one.

    Monday, January 16, 2006

    Part-time versus Full-time MBA, Which One is Right for You?

    I was contacted in December to participate in the inaugural podcast for a new site called MBA Podcaster. The topic was part-time versus full-time MBA programs and I was supposed to give a student's perspective. Mark Rice, Dean of the Graduate School of Business at Babson and Dr. John Mather, Executive Director of Masters Programs at Carnegie-Mellon also participated. It was an interesting experience and overall I think the discussion was good. You can download the podcast here. They've recorded a few other podcasts now too.

    Sunday, January 08, 2006

    More Design Challenge advice

    I just read Sam's latest entry and I couldn't resist adding my $.02. He says the new SDM'ers in the January program shouldn't burnout on the design challenges (DC) because they are more about team building and having fun than competition. Yeah, that's what the DC losers say! :-) Speaking as a member of the winning DC1 team last year, I can say that while all that stuff is important, it sure feels nice to win if for no other reason than you can rub it in your classmates face for the duration of the SDM program. Kinda like I'm doing right now.

    Seriously, I had a great DC1 team and I deserve little if any credit for our success. I was "project manager" which amounted to making sure we were making progress (which we always were) and staying out of the way. Interestingly enough, in over 10 years of work experience, my DC1 team was one of the best teams I've EVER worked with. I got lucky. I've also been on teams at MIT that would rank as the worst I ever worked with.

    New SDM'ers: my one piece of advice for you (which doesn't really apply to DC1) is if you are allowed to pick your team for a class project, PICK YOUR TEAM. Don't get assigned to a random team. A couple of times last year I thought I'd be adventurous and let my team form through osmosis and perhaps I'd meet some new people along the way. Sometimes you'll get lucky like I did with DC1, but other times it will be a disaster. In fact, when teams are picked at random you are more likely to end up on a disaster or end up on one that no one else wanted to join because everyone else picked their teams ahead of time.

    One more to go

    Another semester has come and gone. I'm back in NC now. It will be nice to get settled at home again, but I'll miss my friends at MIT and the campus atmosphere. I do enjoy the college environment. It was my last semester as an on-campus student. I have only one more semester to go before I graduate. I have two half term classes and one full term class to go. Oh, plus my thesis ;-) While I don't think it will be as busy as last semester (in which I took 6 classes), I still have some work to do.

    Last semester was a productive one. After spending much of the last 3 months trying to figure out what I'm going to do when I grow up, I now have a much better idea. I attended several networking events and met several new friends and potential business partners along the way. I also got to play basketball regularly with Yoav, Ilana, Paul, Sam, Deming, and others which was always fun.

    All in all and despite the weather ;-) I couldn't have asked for a better experience in Boston. It was hard on the family life, but it was short-term and I took full advantage of it (as is evident from the 19 classes I've taken to date and 45 speakers I saw while on campus).

    I wouldn't expect much out of this blog moving forward. Now that I'm back home and reintegrated fully with my day job, I won't be as involved with what's going on at MIT and therefore won't have much to blog about.

    Wednesday, November 30, 2005

    Russ Siegelman, Partner, Kleiner, Perkins, Caufield & Byers

    Russ led an open and informative discussion about the current state of the VC world. Much of what he discussed follows what I've been reading in various VC blogs, but it was good to hear it directly from a Partner at one of the premier VC firms.

    Russ Siegelman's bio

    Notes:
  • KPCB has 10 professional investors
  • Focuses on seed and A rounds
  • Looking for companies that want to do something big
  • Proactive in seeking out certain areas (have to be proactive with the increased competition)
  • We are having a second smaller bubble; a lot of enthusiasm; lot of activity in Web 2.0, mobile, and China/India
  • It is a good time to be a entrepreneur in the Valley and a good time to be an investor
  • However, there are some ominous signs because some VCs are raising huge funds ($2B)
  • Starting to see some really good teams
  • He's not particularly interested in traditional enterprise software requiring big purchases ($250K+). Sales cost is too high. Friction within companies to do these purchases is high
  • Not excited with companies selling big equipment to carriers
  • They are investing in some companies selling equipment to corporations for things like data center consolidation

    What is he interested in?
  • Likes the whole consumer Web 2.0 space
  • It is confounding because they go from no users to a lot in a very short period of time
  • Cheap to start
  • A lot of questions on the business models
  • Not a lot of seasoned teams
  • Competitive risk with Google, MS, Yahoo
  • It is a little bit like rolling the dice

  • Really likes the ASP model (now dubbed software-as-a-service)
  • salesforce.com is just scratching the surface
  • ASP is attractive because you don't need a huge sales force
  • Downside is it requires a lot of upfront capital
  • A lot of other VCs are looking at this area too

  • Security writ large
  • Probably the 1 area companies are willing to write big checks
  • Great area

  • Dabbled in Energy
  • Better batteries
  • Distributed power generation

  • BioTech and Medical Devices is obviously a hot area

  • Dabbling in Open Software
  • The proprietary software models are breaking down
  • May not know for a few years how this will work out

  • Very bullish on the whole mobile area
  • Cell phone is a computing platform

    Q/A
  • From Ken Morse: Is New England an afterthought to Valley VCs? Response: Honestly, you aren't at the top of mind. China however is top of mind.
  • What's different with the ASP model now than in 1999? Response: ASPs have to add value above just making the software available online. Some quasi successful ASP companies ran into the recession and ran out of cash. WebEx doesn't get a lot of press, but they had a great model and are doing very well now
  • Are hardware deals going away? Response: Hardware investments make up about 25-30% of the total. SW is so attractive because it is so cheap to start
  • Will you only do large deals? Response: Recently invested $200,000 in a $800,000 round for a Web 2.0 company
  • Does location play a role in your decision to invest? Response: It is a stretch to invest outside of CA, but will do it if the deal/team is good.
  • Outside US, it is a real stretch. Outside of China/India, extremely difficult
  • What does he like in a business plan? Response: Simple, concise, on point, what problem are you trying to solve, why is it economically interesting. Not as interested in distribution channels, etc.
  • After 15 minutes into many presos he listens to, he doesn't have an idea what problem they are trying to solve
  • Should your numbers be conservative or error on the high side? Response: Doesn't really matter as long as the rest of the business plan is consistent with those numbers
  • What does KPCB do after it invests in a company? Response: He views KPCB as a service company. When you get funded they become trusted advisor, make introductions, help with recruiting, will contact customers, get experts for product reviews, help picking lawyers, accounting firms, etc.

  • Tim Rowe, Founder and CEO, Cambridge Innovation Center

    Tim started the Cambridge Innovation Center (CIC) in 1999, which is across the street from the MIT Sloan buildings. I've been over there a few times to meet with Dharmesh. It is a nice place. One of the biggest pains with starting a company is plunking down big bucks on an extended office lease. At CIC, you pay monthly and most of the services you'd expect are included.

    Notes:
  • He ran a radio station when he was at Amherst College.
  • He graduated from MIT Sloan in '95
  • After that he "crafted" his first job (and recommends everyone do the same)
  • craft = figure out what you want to do and then convince someone to hire you to do it
  • Suggested working in management consulting for a few years to get experience in a lot of areas
  • Needed to find office space for his wife's startup. It was easily the largest expense for the company
  • In response to this issue, he created CIC
  • A VC asked if they could incubate small companies, so they spent $18M in VC money.
  • Then the bubble burst and they were in trouble.
  • CIC is somewhere between an executive suite and traditional office space. It is targeted at startup CEOs
  • Has been growing like crazy - 110 startups and there is a waitlist
  • They don't negotiate anything with the contract
  • Includes space, furniture, receptionist, IT people, food, drinks
  • Pay monthly, give 30 day notice
  • Prices start at $500 per person/month ($200 for space and $300 for services). The most expensive private offices go for around $2000/month.
  • He estimates 20,000 sq ft is space for ~100 people
  • Before he started, he flew around the world and spoke to everyone that was doing something similar. Suggests everyone should do the same before starting a company.
  • He takes security very seriously; uses cameras to resolve disputes every few months
  • He used $15M from VC to start CIC
  • He recommends using as little capital as possible to start a company
  • With office space, you have to start small
  • He views his business more like a hotel than traditional real estate
  • Hard to compete in the same locality
  • Most people in real estate don't like what he does because they want to lock tenants in on long leases
  • Most incubators subsidize the cost of space which encourages mediocre companies to hang around which is the wrong way to do it. Give the CEOs money, but force them to pay rent.
  • He's currently looking at expanding the CIC concept to 6 or 7 other locations
  • There is no better job than being the CEO of your own company

  • Thursday, November 17, 2005

    Revisiting The Road Not Taken

    "Two roads diverged in a wood, and I — I took the one less traveled by"

    This famous line from a Robert Frost poem has reached cliche-like status because it is so often quoted. I stumbled upon the full poem today and was energized by it. You don't get the true effect of the quote without reading the poem in its entirety. It has been a good three or four years since I last read the poem, but I'm going to add it to my periodic reading list. Mr. Frost had true command of the English language. His poem says so much more than just the sum of the words.

    The Road Not Taken, Robert Frost

    Two roads diverged in a yellow wood,
    And sorry I could not travel both
    And be one traveler, long I stood
    And looked down one as far as I could
    To where it bent in the undergrowth;

    Then took the other, as just as fair,
    And having perhaps the better claim,
    Because it was grassy and wanted wear;
    Though as for that the passing there
    Had worn them really about the same,

    And both that morning equally lay
    In leaves no step had trodden black.
    Oh, I kept the first for another day!
    Yet knowing how way leads on to way,
    I doubted if I should ever come back.

    I shall be telling this with a sigh
    Somewhere ages and ages hence:
    Two roads diverged in a wood, and I—
    I took the one less traveled by,
    And that has made all the difference.

    The two faces of Ambition

    By most measures, I'm considered an ambitious person. My definition of ambition is: an innate and often unstoppable desire to achieve. The current edition of Times magazine has an article on ambition and how it often dictates a person's level of success. I agree that ambition has played a significant role in the things I've accomplished (however modest).

    But there is another side of ambition that isn't often discussed.
    After the dot-com collapse in 2001, the high-flying, take chances, innovate-innovate-innovate days most high tech companies were used to were over (at least for the next couple of years). Things changed at work for me. It wasn't so easy to achieve anymore (for a variety of reasons). If a highly ambitious person is not in a position to feed the ambition monster, the monster can bite back. This can make for some difficult times. Unfortunately, ambition doesn't give way to the current market happenings or fluctuations in society. At times I've thought of ambition as a disease that gone untreated can result in depression. Even so, if I could zap that characteristic from my make-up, I wouldn't do it. It is who I am. I'd be a completely different person without it.

    Here is a quote included in the Times article that sums up ambition nicely:

    "Ambition is so powerful a passion in the human breast that however high we reach, we are never satisfied." -Machiavelli

    Thursday, November 10, 2005

    Jerrold Grochow, Vice President for Information Services and Technology, MIT

    I had a great meeting with Jerrold Grochow, MIT's CIO. He's one of the first people I targeted for a career interview. I went in with a list of questions and he answered openly and honestly.

    Here is a subset of my notes from the meeting:

  • Discussed his career path: changed jobs every 3-4 years to take on new challenges
  • It is important to understand the motives of the people you are working with
  • Being a CIO, you have to deal with a range of issues: people, technical, legal, etc.
  • It requires a combo of strategy and tactical focus
  • A big part of his job deals with making tradeoffs or helping people make tradeoffs
  • I asked his thoughts about Nicholas Carr: IT shops are not even close to having the same capabilities, so there is still a myriad of places for competitive advantage.
  • To be a CIO you need a broad background in tech and mgmt skills including financial and marketing
  • Spot sourcing works, but not full outsourcing of IT

  • Monday, November 07, 2005

    News @ MIT Sloan

    In the Nov 7th edition of News @ MIT Sloan, this blog along with fellow SDM bloggers Ilana and Yoav are mentioned in the front page story on "B-School Blogging".

    The newsletter is also available in pdf.

    Sunday, October 30, 2005

    Lucky or Smart

    A couple of weeks ago, I wrote that I've heard many entrepreneurs attribute a big part of their success to luck. I just stumbled on a book from Bo Peabody titled Lucky or Smart where he talks specifically about this. It is a short book and I plan on getting the Audible.com version this month. Here is an article from Bo that summarizes the content of the book. It is a good read.

    Saturday, October 29, 2005

    Michael Hammer, Author, President - Hammer and Company

    Michael Hammer was brought in for the SDM Alumni Conference and I was looking forward to it. He is well-known for having authored several popular management books including The Reengineering Revolution and most recently The Agenda. He was very animated and his talk was interactive. He said he'll send out his preso so we didn't need to write down everything on his slides. He quoted Immanuel Kant: a lecture is when the professor's notes become the students' notes without passing through the heads of either. He said he didn't want his talk to be a lecture.

    Michael Hammer's bio

    Notes:
  • He's a big fan of the SDM program
  • Spends his time with large organizations discussing structure, process and organizational change, which is kind of funny because he has no training in these areas
  • He has 3 degrees from MIT and was on the Course 6 faculty for 12 yrs
  • He's giving us 2 days worth of material in 1.5 hours
  • There is a lot of opportunity to apply engineering thinking to non-engineering domains (which have no laws, equations, theorems, etc.)
  • An engineering mindset is exactly what is needed to address large ambiguous systems (like organizations)
  • He doesn't know much about product or technological innovation, but he does know about operational innovation
  • What one surprising thing does Dell, Southwest, Toyota, and Wal-Mart have in common? Operational innovation; no product innovation
  • They aren't innovative in what they sell, but instead how they sell it. This is operational innovation.
  • He calls himself an Industrial Engineer - a designer of "work"
  • Doesn't consider himself a management guru
  • Peter Drucker once told him that they only call people gurus because it is shorter than charlatan
  • Most people tend to think about enterprises in terms of organizations or finances
  • Most people use the word "process" in the wrong way
  • Process means end-to-end work
  • There are a half dozen or so major processes in all organizations even if you don't know it
  • Many processes are invisible/implicit and were never "designed"
  • When you define them, you can design them
  • Likes to tell people he is reversing the industrial revolution
  • Specialization of work was good in the 1800s, but is a really bad idea now
  • Instead of a lot of small jobs, have a few big jobs that fit together nicely
  • Moving to this isn't easy because "nobody likes change except wet babies"
  • The Process Approach to Performance Improvement (see slides)
  • Real "assets" of a company are intangible: brand, knowledge, processes, etc. It is not people because they go home everyday and may not come back.
  • When Wal-Mart goes to Germany, they don't take patents or even brand, they take their processes
  • Process has a bad name because most are way over controlled

  • Peter H. Diamandis, Chairman & CEO of X Prize Foundation

    I watched the X Prize competition unfold last year on the Discovery channel which chronicled Paul Allen's team led by Burt Rutain as they won the $10 million prize. The man that started it all spoke at Sloan on Thursday as part of the Dean's Innovative Leader Series. This was perhaps the most inspirational talk I've seen in the last year (which is saying a lot).

    Peter Diamandis' bio

    Notes:
  • Attended MIT from 1980-1989 (aero/astro)
  • Two of his favorite quotes:
    " Never doubt that a small group of thoughtful, committed citizens can change the world. Indeed, it is the only thing that ever has." -Margaret Mead
    "The best way to predict the future is to create it yourself."
  • It is a moral imperative to move out into the cosmos
  • A group of 20 people can now build a spaceship
  • Why Explore?
    - Curiosity. But this is a weak motivation. He believes we'll find life on Mars eventually and thinks life is abundant in space.
    - Wealth. The first trillionaires will be made in space.
    - Fear. "Back up the biosphere"
  • Nothing is impossible. JFK said we were going to the moon and we hadn't even put someone in orbit yet. It only took 8 years to do it.
  • Average age of people that worked on Apollo: 26
  • They were still too young to think they couldn't do it
  • 20,000 people and $1 billion to launch the Shuttle each time
  • It costs $20 million for a private individual to go to space
  • The "energy" cost is about $100 to put someone in space. That means there is lot of opportunity to go from $20M to $100
  • Suboribtal vehicle will drop to $20,000 in next 8 yrs
  • With the X Prize, they'd only pay if someone succeeded
  • "Offer a prize and they will come"
  • 26 teams from 7 nations entered
  • Most people in class raised hand when asked if they think they'll be able to go to space in their lifetime
  • Prize modeled after the prize Lindberg won crossing the Atlantic
  • Several new prizes will be announced soon
  • X Prize Cup
  • Timeline:
    Zero gravity flights: Now
    Suborbital flights: 2008
    Orbital flights: 2010
    Moon and beyond: 1018
  • Future prizes: create radical breakthroughs in space and other technologies
  • Space, energy, automobile (should easily have 300-500 miles per gallon), environmental, nano, genetics, medicine, education, poverty
  • Cost of going to space has gone up over the last 40 yrs with safety staying the same or decreasing - this is a broken system
  • Prizes are about changing the world, creating heroes, launching new industries, taking risks
  • We are killing ourselves in this country by our unwillingness to take risks
  • "The most critical tool for solving humanities grand challenges is the committed, passionate human mind."
  • One of his goals is to be the first private citizen to step on the moon
  • Got a "hole in one" policy to help fund the X Prize
  • X Prize died a thousand deaths but ultimately succeeded
  • You will encounter failure over and over and over again
  • How you handle failure will determine your success
  • You have to be passionate about what you are working on or you won't accept the failures

  • First SITE meeting

    On Wednesday, I attended the first Sloan Information Technology Entrepreneurs (SITE) event hosted by former Sloan Fellow Brian Halligan and current Sloan Fellow Dharmesh Shah. I met Brian and Dharmesh in my Software Business class. Both guys are extremely nice and have a lot of experience starting companies.

    SITE is going to be a monthly informal networking event for entrepreneurs, students, and investors. I met several interesting people on Wednesday night and walked away with some business cards.

    Ed Roberts, Author, Entrepreneur, Professor - MIT Sloan

    Ed Roberts hosted a SIP session called "Founding and Growing the Technology-Based Enterprise". This was right up my alley. Ed has been researching technology-based startups for 40 years and has a lot of insights on creating successful startups.

    Ed Roberts bio

    Notes:
  • Started at MIT in 1957 in the EE dept
  • Joined Sloan in 1958 as an assistant to Jay Forrester (created System Dynamics)
  • Got a Masters and then a PhD in Economics in 1962
  • In '62, his doctoral dissertation was the only work on technology in the Sloan School
  • 25 years of studying technology-based firms (up to 1985): 769 total companies
  • Created a 11-page questionnaire they used to collect data
  • Started as research on people who left MIT labs to start new companies
  • Iceberg phenomena: companies aren't aware of how many people leave to start companies
  • At one company, the VP of R&D thought there were only 5 spinoffs from his company, but after research they found 45 and the best did 50% of the original company's revenues
  • Found that entrepreneurs are more productive than the average worker in terms of published papers, patents, etc.
  • Published a book in 1991: Entrepreneurs in High Technology (now out of print but available on Amazon)
  • Who becomes technology-based entrepreneurs? ("becomes" not necessarily who are successful)
    - Disproportionate share came from families where the father was self-employed
    - Women were extraordinarily exceptional - very few
    - Entrepreneurs have a moderate need for achievement, moderate need for power, but a high need for independence
    - Development-oriented work background (not research)
  • 50% of companies in his study were founded on a part-time basis despite this probably violating employee and IP agreements
  • Quick movement of advanced technology from source. If you delay for 3 yrs or more, the amount of tech transfer decays to 0
  • Part-time founders transfer more tech than full-time founders
  • What makes technology-based firms succeed?
    As measured 5-7 years post founding:
    High performers 15% - high profit growth and profitability, low variability
    Succeeding 15% - positive profit growth and profitability
    Merely Surviving 54% - growth and profitability is 0
    Failures 16% - closed shop
  • Average entrepreneur has less than a high school diploma, but their data showed avg tech entrepreneur has a college diploma
  • SBA says 80-90% of companies fail within 18 months, but their data showed only 16% failed after 5-7 years
  • Didn't find a distinction based on where entrepreneur went to college
  • 83% of entrepreneurs were highly satisfied with their performance 5-7 years post-founding and 17% were not satisfied. The entrepreneurs that were not satisfied did not correlate to those that failed
  • Found no correlation measures between personal satisfaction and economic success of the company
  • Successful founders' characteristics:
    - Made, not born (found no birth characteristics that predict success)
    - High need for achievement and optimally with moderate need for power
    - If you have a high need for power you limit other people from stepping up
    - Data is clear, individuals don't succeed. The larger the founding team, the higher the chance of success
    - Solo entrepreneurs seldom succeed, 2 are more likely to succeed, 3 are even more likely, 4 are even more likely, and 5 are even more likely (don't have enough data after 5)
    - Solo entrepreneurs are more likely to have a high need for power
  • Characteristics of successful startups
    - High degree of advanced tech transfer
    - Product orientation, not consulting or research. Very few firms transition from one to another successful
    - Marketing orientation and practices
    - Focused growth strategy - focused on 1 idea
  • Performed a new study in 2003 of MIT entrepreneurs based on alumni questionnaire
  • The average MIT alumni entrepreneurs founded 1.8 companies. The range goes from 1 to 17!
  • Have a hypothesis that the more startups you found, the more successful they become
  • Age distribution at first founding: gradual shifting to younger and older entrepreneurs (the middle is being vacated)
  • Median age of founding first company is constantly decreasing: 1950s: 40.5, 1960s: 39, 1970s: 35, 1980s: 32, 1990s: 28
  • Will continue to analyze the data over the next couple of years. Some papers are forthcoming.

  • Stephen Wolfram, Author, Scientist, CEO and Founder of Wolfram Research

    This is the second time I'd seen Wolfram in a month. The first was just a couple of weeks ago at Startup School. The first time I didn't quite "get it" partly because he jammed a 2 hour talk into about 40 minutes and second because it was my first introduction to cellular automation. This time around it made a lot more sense. In fact, now that I know more about it, I'm really interested in Wolfram's Science. I don't have the time at the moment to take on his book, but I will continue to read up on it on the web.

    Stephen Wolfram's bio

    Notes:
  • He became interested in how structure emerges from the galaxy on down; how complex stuff gets created
  • Traditional view is that everything in nature should be represented by mathematics
  • He spent some fraction of his life designing software systems and programming languages
  • He spent a lot of time showing diagrams that represent rules of cellular automata
  • Rule 30 has been used as the random number generator in Mathematic for the last 17 yrs
  • Created Mathematica to help him look into the computation universe
  • Simple programs plucked from the computation universe can generate seemingly random complexity
  • Cellular automata in nature: Mollusks and leaf shapes
  • His Science could lead to "Predictive Biology"
  • It could be that a simple set of rules generate everything in the universe
  • If our universe is one of the simpler ones in the universe of universes, which we don't know a priori, but if it is then we should be able to find our rules
  • To do so we have to automate the work of a physicist, which is still a very difficult thing to do because of all of the theorem proving, etc.
  • He thinks there are signs to suggest our universe is made of simple rules
  • Rule 110 is simple but can do very sophisticated computation
  • Can find all sorts of things when mining the computational universe: e.g., optimal algorithms, architectural forms, etc.
  • Gave a demo of Wolfram Tones which is based on rules pulled from the computational universe

  • Shaygan Kheradpir, CIO, Verizon

    Shaygan kicked off the SDM Business Trip week. It was good to hear from a CIO at a major company for a change instead of the CEO or other executive. Shaygan is a smart guy and seems to be leading Verizon's IT organization the right way. It would be interesting to talk to one of my SDM classmates in IT at Verizon to see if Shaygan's message matches up with what's going on in practice. I've found that often executives can tell a good story, but one that doesn't actually match reality.

    Notes:
  • He is in a race against time; so many companies are trying to be in the same business: communications
  • The company that wins will have a lot of riches and the ones that fail will be out of a job
  • In 1981-82, thousands of people connected to the Internet at 300 baud
  • In 2005, 700M-1B unique users connected at up to 100 megabits
  • He'll be shocked if in 25 yrs, all brains in the world aren't connected.
  • The main advantage of the 10 top companies in the world is how they process information: Wal-mart, GE, Dell, IBM, etc.
  • His top 4 drivers:
    1. work at the speed of need
    2. Flatten the organization (use IM to help attach need with the expert in real time)
    3. Frictionless Ecosystem
    4. Creativity
  • Verizon IT's 9 keys to Innovation:
    1. Defining a compelling goal
    2. Empower people to pursue that goal
    3. Measure progress
    4. Encourage nonlinear thinking. He throws anyone that says "continuous improvement" out of his office.
    5. Execute in a linear way
    6. Think Flat (startup mode). Take baby steps. No fat documents. No bureaucracy. When he says "Program Managers" being hired, he starts to get concerned.
    7. Be hands on. Managers need to be as good as anyone below them because if not, someone across the globe will replace you. He's been to India already 4 times this year.
    8. Hire top talent
    9. Remove barriers
  • Average workers are 10x better than bad workers. Good workers are 10x better than average workers. Truly exceptional workers are considerably more productive than good workers.
  • Don't punish for failure; he punishes for not trying
  • Nicholas Carr is right but drew the wrong conclusion. It is becoming a commodity, but that just allows IT to use its imagination

  • Busy week

    This was a busy week to say the least. Besides my wife being in town, it was the Sloan Innovation Period (SIP), SDM Business Trip week, and SDM Alumni Conference. I was able to attend several interesting talks and will blog my notes shortly.

    Steve Ballmer, CEO, Microsoft

    I saw Steve for the first time at the MVP Summit last month. That's when I got my first taste of the most outwardly passionate and boisterous CEO I've ever seen. This time he was no different. I sat just two rows back from the front and warned Ilana and Yoav that we might be too close ;-) Steve gave an entertaining and inspiring talk. Listening to him is a nice change of pace from the typical straight-laced CEO that says everything by the book. Steve seems like the kind of guy that would toss, no throw, the book out the window.

    Steve Ballmer's bio

    Notes:
  • Joined MS in 1980 when MS was already 5 yrs old
  • Talked about how Microsoft got started
  • Business had grown a lot in the 5 yrs before he started - they already had 30 employees
  • They moved from Albuquerque to Seattle for all the reasons you might expect: because the founders wanted to live there
  • Stayed at Harvard and graduated so he is the poster child for staying in school
  • Went to P&G (wonderful experience)
  • Lots of interesting people were there at the same time: Scott Cook (Intuit), Meg Whitman (eBay), Jeff Immelt (GE)
  • Went to business school at Stanford for 1 yr and dropped out
  • He wasn't sure why he joined MS other than Bill was the smartest guy he knew. He always thought he'd work at a big company
  • After a month at MS, he thought he made a mistake (he didn't want to be an accountant for a 30 person company)
  • Went to dinner with Bill and Bill's dad. Bill convinced him of the vision: a computer in every home
  • All great software companies are born with a technical and business vision
  • Cisco, Google, etc had a strong business vision to go along with a strong technical vision - he thinks both are required to be successful
  • 25 years later, he has the same passion and optimism
  • MS has about 61,000 employees now - people think he should always know the exact number of employees but it is hard with so many folks coming and going.
  • He thinks next 10 yrs will have as much impact as the last 10
  • 10 yrs ago we didn't have PCs, cell phones, Internet, etc.
  • In 10 yrs, we'll have ubiquitous wireless networking, storage will be essentially free
  • In 10 yrs, we'll be able to capture everything
  • Moore's Law is still alive and well
  • Hardware is in good shape, but Intel is having a hard time keeping chips cool
  • Software will be where the action is
  • All lectures will be recorded, notes will be captured
  • 50% of people that do a search today don't get a useful result
  • Next 12 months are very exciting because of all the new product role outs
  • Bill and Steve are probably the only CEOs that have run a company of 30 people and 60,000 people
  • Considers himself a "glass is half full" kinda guy
  • Send him an email if you are interested in working at MS

    Q/A
    How did you lose control of the Windows group? (question from Cusumano)
  • Doesn't think he lost control
  • Software de-evolution doesn't happen
  • People don't want a bunch of small components – they want it combined
  • From XP to Vista took 5 yrs
  • Primary customer of Windows is developers, not really users
  • Learned how to handle innovations and co-dependence

    What can you control in MS as CEO?
  • Four big things and the rest he has to delegate. When MS was smaller, he was all over every detail
    1) Culture - non-delegable, CEO has to do it
    2) People - getting people right is important
    3) Overall vision of what will be important and make sure company invests in tomorrow, not just today
    4) External image starts with leadership

    How big of a threat is open source?
  • Open source isn't going anywhere so MS has to fight it head on
  • Writing a custom version of Windows to compete with Linux in high-end scientific computing market
  • Software as a service (adverts, subscription) is a big deal for them

    How will you compete with Google?
  • He'd turn it around and ask how will Google compete with them?
  • Can say Bravo to Google for building a strong advertising business
  • Wouldn't be an easy conversation for him, but 50% of people don't find useful results from search
  • MS has #1 blogging site (MSN Spaces) and #1 email (Hotmail)
  • Healthcare is least automated even though it is one of the largest segments

    Why hasn't the market realized Microsoft's value?
  • MS has a big stock buyback so they think the stock is a good value right now

    How do you keep abreast of new market advances?
  • Internet helps a lot
  • More than any other company, people approach MS about new advances

    What job would you do if you changed careers?
  • If he was more athletic and 30 yrs younger, he'd choose basketball or the pro tour (golf)
  • He's going to be at MS another 10 yrs or so
  • After that he might teach at business school

  • Thursday, October 20, 2005

    Steven Sinofsky, Senior VP, Office, Microsoft

    Steven came in to talk about Office 12, the new version of Office set to be released the end of next year. He started off by talking about the development process at Microsoft, then the evolution of Office, and finally a demo of Office 12.

    I have been skeptical of Office 12 (and Vista for that matter). Office 2003 isn't perfect by any means, but even for a power user like me, I don't find much lacking. I could tell Steven is concerned about this as well even though he didn't openly say it. He started off his talk by asking if anyone thought Office was perfect and had no room to improve. Of course no one raised their hand, including me. But that misses the point. It isn't that Office 2003 is perfect, but is it "good enough." I'm sure Microsoft can continue to innovate on Office -- it is in their business interest to do so. But that doesn't mean at some point the product will be good enough to meet the majority of users' needs. I think they are getting very close.

    However, after the demo, I was pretty impressed with the new UI. They are getting rid of menus in place of "ribbons." They've also added a few neat features in Excel and Word that he showed us. Maybe they can convince me that Office 12 will be worth the upgrade (especially since I get the software for free), but this will be the first time that I've actively thought about not bothering.

    Steven's bio

    Steven's blog

    Notes:
  • Making Office is like ordering pizza for 400 million people
  • 1/3 of their energy is focused on talking to customers
  • 50 million people visit Office's website (20 languages). Based on that he could IPO the site
  • 30 million lines of code in Office Pro
  • 100 spoken languages
  • $11 billion in revenue and 400 million customers
  • 700 programmers, 2500 total people
  • Showed screenshots of various old Word versions
  • Talked about the evolution of the Word UI
  • For some features they did lots of research and user testing which came back positive, but found after extended use they didn't work well
  • Office 2003 UI has been stretched to the limit
  • Analyzed 1.2 billion user data sessions and created a "heat map" of most common commands
  • Want to get rid of "auto" features to make the software more predictable

  • My wife will be in Boston during the business trip week

    My wife is coming in town this weekend. We planned it so she'll be here during the business trip week so hopefully I can introduce her to some of my classmates. I'm looking forward to it because I can only take about 2 weeks of living in my Boston apartment before I start to go a little stir crazy. When you go from living with someone everyday for six years to living by yourself for weeks at a time, it can have odd effects on your mood, motivation, eating habits, sleeping habits, etc. She's noticed the same effects too.

    Wednesday, October 19, 2005

    Less is more

    A theme I've been seeing consistently of late is that less is more when it comes to startups, especially startups that are building web-based products. I've been reading a lot of blogs lately about how the price to start a company is continuing to go down. Instead of needing at least $2-3 million dollars to start a company, you can potentially do it at nights and on weekends while maintaining a full-time job (at least when getting started). Bloglines, upcoming.org, and several other recently acquired companies started this way. As a result, much of what I hear from Venture Capitalists these days is not very relevant: you need a very experienced team, you need an idea that can support $2-5 million series A funding, etc.

    Here are some good articles I've come across on this topic:
    It'’s a great time to be an entrepreneur
    ETech - Bloglines
    Less as a competitive advantage
    Startup School - An Inspiring Room Full of Hackers
    The Amazing Rise of the Do-It-Yourself Economy
    The New Instant Companies
    Small is the new big

    Monday, October 17, 2005

    Startup Ideas

    At Startup School, Paul Graham read his latest essay entitled "Ideas for Startups" (which is now available on his site.) The essay is filled with interesting insights and entertaining viewpoints and is written in the classic Paul Graham style. Here is another blog entry that I recently read that talks about a similar issue but from a different angle.

    Both pieces cover one of the fundamental problems I've been struggling with: what idea can I come up with that is significant enough that I wouldn't lose interest after 1 or 2 years, that users would find compelling enough to use (and customers willing to pay for), and that would be lucrative enough so that quitting my nice secure day job wouldn't mean financial suicide. I've fallen into the classic trap of analysis paralysis. Imagine if I had just started working on a new idea a year ago how much further I'd be with its evolution instead of being stuck where I'm at today still pondering a "big" idea. When I hear stories like the one about upcoming.org, where its creators worked on the site in their spare time because they found it interesting and Yahoo eventually acquired them, I tend to think Paul is right: "the best way to get a "million dollar idea" is just to do what hackers enjoy doing anyway."

    Phillip Greenspun has an alternative view. Maybe the people that have worked at a big company for 10+ years that have seen the same customer problems go unsolved and break off to create a startup to solve those problems do the best. I fall into this category too so I guess I have no excuses.

    Thursday, October 13, 2005

    Sunday Startup Social

    I'm going to Startup School on Saturday. On Sunday, the Startup School organizers are having a Social beginning at 2pm in West Newton. Anyone with an entrepreneurial spirit and interest in info tech is invited. Since I'm going to be busy all day Saturday, I probably have to catch up on some homework on Sunday which means I won't go to the Social. The organizers asked that we let others know about it so that's what I'm doing ;-)

    Why software sucks

    If you missed Scott Berkun's talk on "why software sucks," you can read his essay. BTW, Scott has several essays that are excellent reads.

    Wednesday, October 12, 2005

    How big of a role does luck play in success?

    Here is an interesting quote from Sergey Brin (co-founder of Google) at the Web 2.0 conference:

    "The #1 factor that contributed to our success is luck. We followed our hearts, and worked on search because it was useful and an interesting problem."

    I've heard this a lot from successful entrepreneurs and I hate it. It means that hard work and doing smart things don't necessarily guarantee success. Being the logical person I am, it sucks to think there is this amorphous thing out there called "luck" that may ultimately dictate whether a business is successful or not. While I believe to a certain degree that you can "make your own luck," I've definitely seen a lot of people become very successful because they were at the right place at the right time with the right idea and if you changed any of those variables it wouldn't have happened.