Tuesday, October 8, 2013

ResearchGate and a repository for Intrapreneuring


As a result of an opportunity to talk to a historian's conference this next Friday--about how HP 'got into computers' and parenthetically, how Beckman failed to do so--I updated my ResaerchGate repository

The paper and the 'dataset' (which means the PowerPoint slides) are entered in my ResearchGate file at




If you don't know about ResearchGate, don't be surprised.  It is a fairly nice repository for papers and supporting documents (like PowerPoint Slides) 'over the years' for the 'bigger events;' like a conference or a publication.

With respect to Intrapreneuring, "HP--the Renewal Challenge" is a set of slides I used recently for a keynote address at the Stanford Graduate Business School for a largely HP audience of senior managers.  The key with respect to INTRAPRENEURING is the set of slides near the end that describe the three INTERNAL CHASMS that must be dealt with if you are an entrepreneur.

The repository also carries a small citation re the book, PERMISSION DENIED, for which I learned recently that we've virtually sold out the first 'print run' of 500... without advertising of any kind. What IF???

You might find some of this interesting.  Drop me a note of what matteres most to you

Wednesday, September 25, 2013

what makes a great company?

I had an opportunity for breakfast with Bill Sullivan, CEO of Agilent, this morning, a week after the announcement about Agilent's intention to split the company into two groups, one for Life Sciences and the other for Electronic Measurements.   I wrote a couple of days ago about the Market Capitalization issues here, but did not deal with the obviously key ingredients of why this makes sense for each of the groups after the split.

We spent a fair amount of time actually on the components of how you build value over time, which clearly has happened beautifully at Agilent over the past decade or so.

I used a slide (see below) that I have used in a number of talks about THE HP PHENOMENON.  Bill had some visceral reaction to it -- I have to say it felt a bit like talking to "the old Dave Packard" even though Bill is not nearly so tall as Dave was.  He espouses the very same values!


The point of this slide, especially when done as a PowerPoint "build" in a talk, where I move clockwise (can we still say 'clockwise' when no one remembers analog clock dials?) from the upper left corner:

1. REV, PROFITS, GROWTH are the metrics that every management team uses, faithfully

2. Share Price mostly, and ROI / ROE / ROA are Wall Street analysts metrics.  For some top managers, this is the manipulable set of numbers that drive their bonuses without creating any 'true value'.  This is where you see the "lay a bunch of folk off, outsource to some cheap locale, cut R and D, and drive your margins up' scenarios -- for awhile.

3. Ethics / Environment / Community role is the Reputation of the Company in YOUR TOWN.  Are you proud to say you work there?  Do the local community service groups look to your company for leadership in civic affairs?  Or does your company, like some, argue for years about whether their effluent is why the river caught on fire or killed all the fish.....  You've seen those "Best Company to Work For" surveys, right?  They're not just about the benefits and pay scales.

4. EMPLOYEES, which is what most managements say is "our best asset" -- what do they think about and worry about?  Most often, it is the quality of their job, the level of satisfaction, the challenge, and the learning that goes with it, plus the dignity with which they are treated that matters to them more than share price or corporate profits.  Now, this all folds together, as Packard used to say --- without profits, there are no jobs, and with no jobs it is hard to have job satisfaction.  But without high employee morale and loyalty and going that extra mile, there isn't much long-term satisfaction.

5. The CENTERPIECE here -- PRODUCTS and SERVICES -- is really what the CUSTOMER cares about.  Do they get value from buying your Products and Services?  If not, they won't be repeat buyers, and the whole thing goes to pot.  They could care less about your share price, ROA or revenue growth. Bill shared a wonderful story--he said he's multiple times had customers tell him that his competitors are all at the customer site when the sale is about to happen; but Agilent, and Bill specifically, are there afterward, making sure that it all works well.  That breeds long-term satisfaction.

6. INVENTING, REFINING, INNOVATING is what drives CONTRIBUTION in Products/Services, so this is the wellspring for all renewal efforts, and all long-term corporate survival tactics.  Shortchange INNOVATION, which seems to be the game at all too many large corporations, and the only thing left is to try to SAVE your way to SUCCESS, or try M&A, or a SALE.

The point is that each of these six perspectives are correct views to hold, and some fairly large constituency holds each of them to be TRUE.  HP historically, and AGILENT today believe strongly that these all need to be in BALANCE.  None of them are 'the long pole in the tent" -- they all are valid and they must all be done well.

Not exactly the way Wall Street views it, but Midwestern common sense would argue strongly for it

Comments?

Monday, September 23, 2013

Agilent "splitting"

The news late last week about Agilent didn't create much stir in the Valley.  Some said "who's Agilent?" but I wrote that off to short memories.

Agilent, for those of you who don't recall, is the "real HP"--the measurements company that made scads of money by producing really awesome Microwave test equipment for a communications hungry country (and world) back when radio and television were 'local' without national or international reach.

It also made a fair amount of money on all sorts of instrumentation for other engineers, scientists, and doctors, to mention just a few.  And because instruments have to measure things 'at the state of the art' they must be, in some respects, better than the state-of-the-art for whatever application they're on.  And that fuels INNOVATION to stay ahead of the curve.

That, more than any one thing, accounts in my view for why HP -- the 'real HP' -- was so innovative for so many years.  It HAD TO BE, to stay the leader in instruments, no choice.

I tried once to capture some of that with a personal memoir, one built around a decade of my life developing Logic Analyzers, which were tools that empowered the Computer Age as we know it.  The book includes some Take-Aways, for folk worried about 'large company innovation' today, and as such, it has gotten a modest reading.

It is Lulu Press available, just type "Permission Denied Lulu Press" into your browser, and you should see an order page with a bearded visage of me.

I mention this because it is interesting to compare the results in the stock market for Agilent, one of their competitors who play much like 'the old HP' today -- Danaher -- and today's HP.  Actually, it is fun to look at the "PC players" as well

Below, I show the chart for Market Capitalization (e.g. stock valuation) vs. Revenue for  seven companies.  Maybe these smaller innovative companies 'know womething'?  But maybe those investing in Intel and Microsoft (remember that they get 80%+ of their revenues from PCs) know something that says Dell and HP are underpriced.  Or is it the other way around?





Wednesday, September 18, 2013

The Music business at Apple

Faced with slow, flat sales of 'computers' and declining sales of peripherals, in 2000 Jobs noted the Napster attempts to 'free music' and he set Jon Rubenstein on a quest to look into 'what might we do?"

Napster, ruled illegal in summer 2001, gave Jobs an opening.  When the iPod launched at MacWorld in January 2002, Jobs confidently predicted that he'd sell 1 Million in a year.  Faced with a barrage of ciriticism, in fact only 339,000 machines sold.  Undaunted, and still in the aftermath of the dot.com meltdown, at MacWorld 2003 Jobs proclaimed this dismal sales record as a 'wild success' (never mind his prediction of the prior year), and he showed the next version, announcing that it would sell 2 million in 2003.

Alas, it did less than half of that, at 939,000 units.  Meanwhile, iMacs languished as well, and Apple continued with flat sales and virtually no profits.


At this point, Jobs intro'd yet a third iPod.  And voila, it worked, and when it hit, strangely, it gave a coat-tail ride to the iMac line, which was much higher priced, and profitable.  The corner was finally turning, circa Xmas 2004:



The stage was finaaly set -- in 2005, Jobs would find that the iPod lifted iMac sales, and it went viral itself.  They've never looked back.

But wow -- what tenacity, what perseverance, and what a gentle Board and shareholders to let him.

Two remarkable articles about Apple strategies from Haim Mendelson

I've been working with Haim Mendelson at Stanford's Graduate School of Business recently.  He shared two articles with me that should be of interest for our readers.

The first covers the iPod story, entitled "Apple and the Music Wars", published in August 2006.

The second covers the iPhone story, entitled, The iPhone: Apple's Third Act", published in February 2013.

Each support my contention that Steve Jobs would not have been able to 'exhibit his genius' at any other company because his track record was so ... spotty AFTER he returned to Apple, and after each of these imprimateur products launched and sold for two successive mediocre rounds

The mythology is that Jobs was perhaps the greatest genius of our age -- and I am not trying to dispel that fond belief.  But I would observe that the first SEVEN YEARS of his return to Apple in 1997 resulted in dramatically lower revenues (like, down by 40% and flat for 6 years) and profits that never recovered, and in fact for years 5, 6, and 7 were virtually non-existent.

Here's the revenue picture:



And here's the profits picture:



So, the question you might ask, is: "How did he keep his job?  Where were the activist shareholder dissidents?"

To request a copy or get permission to quote from Mendelson's two papers, email your request to Mendelson.Haim@gsb.stanford.edu

Thursday, September 12, 2013

Unscientific journalism

Remember the guy who blew the cover on the HP TouchPad, going to Best Buy expecting "lines of customers" only to find that the store personnel didn't know whether they even carried the device?

Well, 'front lines' sometimes tell the story.  If they do in the case reported yesterday in the Silicon Valley Business Journal as follows, "Houston, we have a problem" at Apple.  Maybe the pundits, and not the Wired observer, have it right?


Sep 11, 2013, 11:56am PDT

Apple's new iPhone doesn't impress in Beijing

Vincent Lara-Cinisomo, Web contributor
Apple's iPhone 5C and 5S were unveiled to much fanfare in the States. But what about in China, where the Cupertino company is hoping to make inroads? Eh.
Bloomberg reporter Christina Larson made the rounds in Beijing, asking a cross-section of folks what they thought of the new phones.
Larson said the 5C is mocked as "not attractive;" Zhang Ao, a cameraman for Beijing Television and iPhone 4S owner, told Larson that the bright-colored 5C looked "like a cartoon," said the Apple "wow factor" had long worn off.
A colleague of Zhang, Angel Kang, said Apple releasing the phones in the U.S. and China around the same time was a "nice friendship gesture," but doesn't plan to buy one.
It's hardly a scientific study, Larson admits. But at a time when Apple greatly desires to penetrate the market, China's lukewarm reaction to the new devices, plus the higher-than-expected price, could put a crimp into the plans.

Wednesday, September 11, 2013

The POINT of the last four posts

The previous four posts, noting the 'significant' enhancements embodied in Apple's new iPhones, illustrate in several ways the theme that I find difficult for many people to appreciate about corporate, as opposed to individual, innovation.  Corporate innovation, for all the reasons we discuss in this blog, struggles -- top managers stifle it, middle managers fear it, developers get frustrated and leave, etc.

And granted, these ideas were all spawned by individuals, most at tiny start-ups, some of which were researched and followed by Apple researchers, enough to get excited to buy the company.

But they couldn't result in a game-changer until a large company built 'the contribution' into a mainstream product.  Take the fingerprint recognition idea.  This has been around 'forever' along with retinal scan.  Microsoft's "Home of the Future" featured retinal scan more than a decade ago at the 'front door' (one small difficulty there, they mounted it high, by the doorbell, so a kid coming home from school would have to buy a pogo stick {know what that is?} to get high enough for the retinal scan to see their eye).

Fingerprints are pretty foolproof, a clever design if there ever was one, and they also are pretty simple--we never forget to carry them around, we cannot misplace them (unlike keys, or iPhones for that matter), they cannot be easily phished... wow, what a natural.  How come it has taken so long might be the right question, instead of snarky comments like, "Wow, BIG DEAL, what a gimmick" as I heard yesterday in too many Silicon Valley contexts.

So, too, the color and image appeal of the iPhone 5C.  Henry Ford stuck with black cars, GM trumped him by putting in a paint spray booth.  He was incensed, but he also was beaten.  GM introduced the annual model update, and color.  Wow, so innovative.  It worked.  It worked well enough for fifty years that they perennially beat Ford, once the largest car company by an order of magnitude.

So will the iPhone 5C work?  Remember the Swatch watch craze?  The purists are all sniffing, humff -- it lets the riff-raff in, meaning 'the kids'    Well, the kids are the market, let's face it.

Guess who made the Apple II and the Mac successful -- it was the kids.  What they learned in the process, especially with the Apple II, was how to be comfortable in a new gagdet age, and incidentally, how to put and keep America ahead in the SW-writing age (never mentioned in Walt Isaacson's book about Steve Jobs, becuase Walt didn't understand this HUGE contribution -- I know, I asked him).

We might ask, why couldn't HP have come up with all of these ideas in order to enter the phone business as CEO Meg addressed a year ago.  She said, "we're looking at how to do this without copying and we're having trouble."  Somehow, Apple was able to do it -- and while the pundits laugh, the changes are stunning in their insight, their potential contribution, and their inclusion.

Thank you, Apple


The Fourth (of 4) new ideas in the iPhones 'today'


The fourth of four ideas 'seen' in the new iPhone announcements, as reported  by Kyle Vanhemert at Wired:


Body and Context Aware

The iPhone 5S’ fingerprint sensor isn’t the only way the device more closely links itself to our meaty selves. In addition to the new A7 processor, Apple announced something called the M7–a “motion coprocessor” that taps into the phone’s accelerometer, gyroscope, and compass to give the device a better picture of what you’re actually doing from moment to moment. Instead of just knowing “moving” or “not moving,” developers will be able to tell if you’re standing, walking, running, or driving. Accessing this type of sensor data isn’t anything new, but with the M7, the iPhone 5S is going to be collecting it continuously, figuring out what it means, and serving it up for apps to integrate as they will–all without draining the battery.
On a basic level, those situational smarts will allow for more context-aware behavior throughout our devices. The new iPhone, for instance, will sense when you’re driving and won’t try to connect you to every Wi-Fi network you speed past. That’s just one annoyance smoothed out, but the M7 could let Apple fine-tune the iOS 7 user experience to an unprecedented degree.
The iPhone 5S will pass along that capability to third party apps, too. As Phil Schiller explained on stage, a new CoreMotion API will include some sort of standardized analysis of all your movements and what they mean in real world terms. So it won’t be up to the Nike app to figure out if you’re running, walking or biking–the app will be able to rely on Apple for that analysis and design around it accordingly.
That again might seem like a small thing, but looking forward to the future of wearable, context-aware devices, it’s an important foundation to establish. Companies like Nike and Jawbone hire people solely to do this type of analysis, figuring out algorithms that let their devices understand how, specifically, their users are being active. By standardizing it all, Apple’s paving the way for apps that have a more agreed-upon understanding of what’s going on around you, or with you, and opening up the potential for more nuanced and sophisticated responses to it. If your iPhone senses that you’re swiveling slightly side to side between the hours of 9 and 5, say, it could be able to tell that you’re probably at work, at your computer–maybe a situation where it makes more sense to route iMessages to your main screen.
It will be up to developers to come up with ways to make use of this sort of data–experiences beyond just more sophisticated fitness apps. But the M7 and new CoreMotion API are indeed forward looking. They’re the first small step toward a much richer body computing platform. And plus, peering ahead a product cycle or three, the M7 shows shows Apple dabbling in components that can continuously monitor sophisticated sensors on a tight battery budget. The type of budget you’d have to work with for something like an iWatch.
***
So here we are, living in a two iPhone world. Both the iPhone 5S and the 5C are just what we expected, but they hide within their designs some key insights to Apple’s future. The iPhone 5C is the iPhone for today, where growing segments of people might not care about the iPhone’s cachet or its processing power so much as the ability to own a new, different, funky, and thoroughly personalized gadget. The iPhone 5S is the iPhone for tomorrow, where, thanks to sophisticated sensors and smarter software, we won’t need to take our phones out of our pockets nearly as often in the first place.

Idea Number 3 in the new iPhones


The third of four ideas 'seen' in the new iPhone announcements, as reported  by Kyle Vanhemert at Wired:



A True Digital Self

Tim Cook called the iPhone 5S the company’s “most forward-thinking phone yet.” What else is he going to say? But moreso than the new 64-bit processor, the improved camera, or even iOS 7 itself, there’s one iPhone 5S feature that truly is forward-looking, in a potentially game-changing way. It’s the fingerprint sensor.
On the surface, it does seem a bit gimmicky. Just like those Android phones that unlocked themselves by scanning your face, there’s an element of a cheesy sci-fi that tags along with the idea of fingerprint scanning. But as Ive reminds us, “it’s not just rampant technology for technology’s sake.” Apple has a plan for Touch ID, and the fact that the idea of the fingerprint scan is such a familiar one gives it a head start.
The thumbprint is a psychologically powerful mode of authentication.
Your average person doesn’t know anything about RFID or PGP or how secure any of it all really is (perhaps as they’ve gleaned from the news lately, not very). But they do know that scanning into a building with a fingerprint is good enough for bank vaults and high-level government clearance, at least from what they’ve seen in the movies. Apple knows that in a world consumed with privacy concerns, the fingerprint has a decent chance of being accepted as the password of the future. In a clip dedicated to the feature, Apple’s Senior VP of Hardware Engineering, Dan Riccio, comes right out and says it: “The fingerprint is one of the best passwords in the world. It’s always with you, and there’s no two alike.”
The immediate plans for the technology are clear. The thumbprint will be your pass code into your phone. It will let you buy things from iTunes with the single mash of a thumb, no fingertip pecking required. In combination with iBeacon, the Bluetooth Low Energy protocol baked in to iOS 7, the tiny new finger-sensing home button could be the biggest, smallest step we’ve seen towards a future where we’re buying stuff with our phones, not our wallets.
But Touch ID has farther reaching implications than simply letting you walk out of Walgreens without stopping at the register. Right now, we’re at a delicate locus where privacy is a greater concern than ever and where our digital selves are fragmented across countless platforms, apps and services. The catch, though, is that the next generation of interactive, digital experiences could well depend on some sort of unified personal profile–a more portable digital identity, including your preferences, your apps, your content, your settings and the rest, that could be brought from device to device. The fingerprint could be the key to all that.
It doesn’t solve issues of privacy and security out of the gate–not by a long shot. Armchair critics responded to the news of the iPhone 5S sensor with a common refrain: one more thing for the NSA to collect. Still, though, the fingerprint is a psychologically powerful mode of authentication. As we’ve seen, our usernames and passwords are simple puzzles to be cracked; the rise of sophisticated phishing makes them as insecure as ever. Two-step authentication remains a slightly mystifying pain in the ass. A thumbprint is essential, and elemental. It’s convenient and, at least in theory, uncrackable. These are all things Apple’s evoking when they write, on the website for the new iPhone, that the Touch ID system is “inspired by a perfect design: your fingerprint.”
Those unique qualities give the fingerprint the power to usher in a totally new paradigm for mobile computing–one where your “digital” identity isn’t just a bunch of different sets of usernames and passwords and a scattered assortment of data profiles, but something that is actually, fundamentally, you–a digital version of your real, flesh-and-blood identity, as linked by your thumb.
As designers look to the future–one where real world experiences that seamlessly blend devices and services are privileged over discrete use cases and sandboxed apps–this type of centralized digital identity will be paramount. Services like IFTTT have showed us the power of linking up isolated services and features; how jerry rigging Twitter to talk to Dropbox to talk to your Photo Roll can come up with some novel workflows. In much the same way, the thumbprint is poised to be the connective tissue for the cross-platform experiences of tomorrow, where data profiles can be shared in vastly more flexible ways. Walk into a room, and all the devices inside it–not just the computers and TV screens but the lightbulbs and thermostat, too, potentially–will know it’s you. Apple wants to be at the center of all that. When Jonny Ive says “Touch ID defines the next step of how you use your iPhone,” he’s not just talking about how you unlock the thing. What he’s hinting at is use cases we’re just now starting to dream up.


IDEA Number 2

The second of four ideas 'seen' in the new iPhone announcements, as reported by Kyle Vanhemert at Wired:

A More Harmonious Gadget

The iPhone 5C is noteworthy for another reason: reconnecting the design language of Apple’s mobile hardware and software. The disconnect between the soul and body of the iPhone, up until this new, cheaper one, has been profound. Game Center’s ham-handed skeuomorphism was silly enough on its own, but viewed in the context of its space-age aluminum container, it was positively jarring. The iPhone 5C and iOS 7, on the other hand, are a perfect match. As Ive says in the product video, the new iPhone “dramatically blurs the boundary” between the hardware and the software. The phones even come pre-loaded with wallpaper matching the color of the device itself.

What it amounts to is the most harmonious marriage between Apple software and Apple hardware since the Bondi Blue iMac and the lickable baubles of OS X. And that’s totally by design–though it shouldn’t come as a surprise. Whereas before we had Jony Ive taking us to the moon and Scott Forstall taking us to the craps table, now Ive’s responsible for the user experience through and through. Apple’s always had a leg up on competitors thanks to the fact that they’ve made their hardware and software. The iPhone 5C is the first time in a while it’s actually looked like it.
This is the hallmark of the original MacIntosh.  Built famously around XeroxPARC's GUI (graphical User Interface) with the novel WYSIWYG (What You See is What You Get), it combined 'intutive' icons and their invoked actions, along with the 'amazing' ability to print just what you saw on screen.
It took Microsoft -- the leading SW company of its day, a mere six years to copy this, poorly.  And in the process, eventually we've all come to expect such behavior from our machines.
As Vanhemert points out, until Jove 'got control' of the SW and HW 'integration' this was not happening in the iPhone world.  Pity.  Thank goodness it is now addressed

GREAT EXAMPLE of TRUE INTRAPRENEURING INNOVATION

The hype, ballyhoo and disappointment with Apple's new phones yesterday was both predictable and in many ways discouraging to those of us who follow (and believe in) large company innovation.

First, check out this Wired columnist assessment -- which to my mind GETS IT RIGHT (because of the length, and the disparate ideas, I will break this into four posts


4 Big Ideas in the New iPhones That No One’s Talking About

Yesterday, Apple had its annual iPhone bonanza. On one hand, it was the biggest announcement since the original iPhone. Today, for the first time ever, there are two iPhones. At the same time, though, the event held few surprises. The colorful iPhone 5C had been unveiled prematurely by a flurry of leaks, and the iPhone 5S, with its gold flavor and fingerprint sensor, had been similarly sniffed out. Still, in the finer points and features of these new products, Apple is laying the groundwork for its future as a company–and, potentially, the future of mobile computing. Here’s what we’re reading in the tea leaves.

The Power to Personalize

The iPhone 5C, a phone which Jony Ive called “beautifully, unapologetically plastic,” was assumed to be a foray into cheaper territory–a defensive move against the lower priced Android handsets that have been gaining ground worldwide. But to understand the iPhone 5C purely as an cheap play, or one for the international market, is all wrong. What the device is, really, is a bold step by Apple into the world of fashion, customizability, and personal preference. For years, your decision when you picked an iPhone had been limited to black and white. Now, you’ve got five options to pick from.
But that’s just the start. The iPhone 5C’s weird swiss cheese case, with a grid of circles carved out on the back so you can see the candy-coated hardware underneath, is an even more unambiguous sign of how important Apple thinks personalization is at this point. Accounting for the five colors of the phones and the six cases, there are 30 color combinations you can pick for the 5C. Maybe not enough to guarantee your team’s colors, but certainly enough to go a few weeks without seeing anyone else on the subway with the exact same phone you have.
One of Android’s big draws, especially in the first few years of the smartphone era, was the customizability of its software. But kids don’t care about ROMs and launchers. They care about colors and expression. With the iPhone 5C, Apple’s tapping into the allure of outward, broadcasted preference–something that the Android ecosystem, though diverse in its SKUs, still doesn’t really offer. This time next year, the iPhone 5c is going to be the phone coveted by everyone age 13 to 23.

To see what a departure the case really is, it’s worth looking at it in the context of Apple’s past storage endeavors. The iPhone 4′s bumper was colorful, sure, but its design was informed purely by functionality–the insulating rubber ring was a direct response to concerns about signal loss when gripping the iPhone 4′s antenna band. The iPad’s ingenious magnetic cover added a dose of color and preference too–but more than spunk, the draw was again functionality: it kept your screen a little bit cleaner and safer and let you stand the iPad up in bed while you were watching Netflix.
The holes on the iPhone 5C’s case, on the other hand, have zero functional purpose. They’re purely aesthetic. And in that light, you can see them as a sort of admission on the part of Apple. Jony Ive’s fanatical attention to detail, in a way, painted the iPhone into a monochrome corner. Maybe the iPhone 5 did really represent some sort of end of the road for smartphone design–at least in the current understanding of those devices. Maybe it had reached an iterative dead end, leaving no outward surface left for Ive to work his magic. Maybe they’d chamfered all they could chamfer. There’s a chance that they’ll start over with the iPhone 6, chucking everything out the window and coming back with some wild curvaceous glass shoehorn, but in the meantime, the iPhone 5C is a clear signpost to the places where Apple thinks smartphones are still worth getting excited about: personality, color, and customization. In other words: fun.

Sunday, August 25, 2013

TEDx and resilience

I gave a talk last spring at TEDx Livermore (CA) that has been posted to YouTube

http://www.youtube.com/watch?v=a2oeSFkV7eE&feature=youtu.be

It was great fun, but it also has some pieces worth talking about in some depth.  Maybe we'll undertake that task soon.

Hong Kong Institute talk

Media X hosted two multi-day workshops this month, one with the Hong Kong Institute of Science and Tech, and the other with an industry group touring re Innovation and Entrepreneurism in Silicon Valley.

I got a chance to give a morning workshop for each, which in turn gave me a chance to practice my "new view" about the missing links in larger corporations.

I have been positively impressed by both Geoffrey Moore's "Dealing with Darwin" and Kevin Kennedy's "Going the Distance" -- especially by the process flow diagram that Kennedy uses to distinguish Entrepreneurs from Product Managers from Process Managers.   This chart does a great job of defining the jobs inside a company that pertain to Geoffrey Moore's "Crossing the Chasm" from a customer standpoint, as well as the company-inside dynamics around Everett Rogers' S-curve of adoption (The Diffusion of Innovation).

The first Missing Link is at the bottom of the chart, when resources are freed up by selling off "old successes".  How do they get re-applied to the right "new ideas"?   Steve Jobs could do this; Bill Hewlett and Dave Packard could do this; most CEOs are by contrast apparently incapable of this.  And it takes a C-level decision maker to connect the two -- the resource "seller" is a financial type, but not a product strategist or researcher; the latter has NO connection to the resource pool without a C-level sponsor.

The second Missing Link is between the Entrepreneurs who invent something new, and their colleagues who are busy with the Mission Critical products and services of the current company.  The new stuff is disruptive of their busy daily routine.  Thus the company is able to rebuff the new ideas long before the erstwhile customer gets a chance to vote.  This stops innovation in larger corporations much more than anything else.

The third Missing Link is for the Entrepreneurs themselves -- how do you decide to "think outside the box" when you are really good at what you do, but what you do (and know) is not the set of rules for the 'new world'.

I had two sets of examples, one around Apple's transformation from a computer vendor to the iPod music, then the iPhone communications company, and then the iPad tablet vendor, as compared to Motorola, Nokia, and RIM on the one hand, and HP and Dell on the other.    The second was re HP in the days of being a voltmeter company and 'going into computing' in a way that defied logic (if you were a proper computer company, or for that matter, a proper voltmeter company).

These are topics worth outlining in more detail.

Stay tuned

Tuesday, June 18, 2013

A NEW Engineering Management Curriculum?

Gosh, if I got excited about the last post (about a new model of engineering school) actually having possibility, I could get rhapsodic about the idea of teaching company managers about Intrapreneurs and the seven rules for managing them.   Why, one might even imagine that we could teach managers how to encourage innovation and innovators within companies rather than how to kill it.

Phil McKinney's powerful anecdote when he was HP's Chief Innovation Officer still rings in my ears:  "Take any group of kindergarten kids, and they're all creative.  It takes the public schools three or four years to beat it out of them.  Only a few survive that process.  They become scientists and engineers, and then industry hires them.  It takes us three or four more years to beat it out of those kids."

Sad, and too true.

It'd be fun to imagine having a core curriculum devoted to stimulating innovation support by top managers, but it'd be hard to imagine many top managers finding their way to such a program.  They'll be too busy with quarterly results, unhappy shareholders, and wet-between-the-ears analysts from HBS

The NEW Engineering Curriculum

Much discussion in recent weeks about how to take advantage of the MOOC opportunity for STEM.  For those of you not currently following the new buzzy acronyms, MOOC stands for Massive Open OnLine Courses (the craze sweeping the world and striking terror in the hearts of most college admins) and STEM stands for Science, Technology, Engineering, and Math.   Some few places urge STEAM, adding Arts to the mix.

At the ACM Annual Awards Banquet last Saturday night (see my posts in innovascapes.blogspot.com) a major award was granted to Zvi Kedem of the Courant Institute for his efforts to rebuild the taxonomy for computer science, as "a modern cognitive map of the computing field" with thirteen subject domains, and 134 experts building core curriculum.  This supplants a fifty-year old scaffold that has been seriously out of date for some time.

In engineering circles, the Stanford D'School, the Institute of Design, has broadened to twelve sharing institutions.  The Point of View" pages on their website are poignant -- (1) the job is to build innovators, not to do innovation; (2) their way of working is to combine Technology, Business, and Human Values (now there's a radical concept!); (3) work on Real-World Projects (this is experience based learning, not book learning); and (4) RADICAL collaboration, across multiple disciplines, not just token collaboration.

Hasso Plattner, founder of SAP in Germany, has underwritten the d'school at Stanford, along with a sister group at Potsdam Univ.

But I would submit that there is more to it than these attempts.  Curriculum-wise, there is the question about Big Data and Visual Displays, about Mathematics as seen and used at Google for example, about interactive collaboration at a distance ala the H.264 video technologies, about Social metrics and media, and about meaningful design, support, and use of Digital Media.  And virtually no one teaches exponential growth except Singularity Univesity, even though Einstein described its as "the eighth wonder of the world."

The other question that goes begging is how to couple curricula with jobs, as the For-Profit colleges are discovering (thanks to what they call 'onerous government intrusion' with Gainful Employment goals).  And in engineering, it would seem practical -- to me, at least -- that a consortium of companies could get together with some engineering colleges to certify what's needed, how to tell if it's mastered, etc.

For example, Cisco and its licensees have trained several million students in the past fifteen years to operate a communications network IST shop -- no university developed this, it was an industry need and initiative that drove it.  Likewise, Qualcomm has trained a half million on IT needs for wireless.

Companies like HP, Intel, and IBM have for years had "corporate universities" for 'on-the-job' skills enhancement, usually done as updates for fast-moving fields or 'rehab' for older employees.  My wife hired into HP to help develop a Computer Science curriculum for HP engineers in the mid-eighties; I am glad she came to HP to do so, for it gave me a chance to meet her and 'the rest is history'.

Odd as it may sound, corporate training groups spend way more on education than the universities.  Why?  What on? And how happy are they with the results?

The answers, when you seek them somewhat systematically, are troubling.  Costs of traditional education are increasingly prohibitive, and the courses are increasingly seen as mere prelude, not helpful in the employer context (some say this has ever been thus).  Newer fields are not handled well by most schools; corporate needs are different than research needs (which is what most faculty try to convey to their best students....).  The list becomes daunting.

The prospective students, on the other hand, are a bit dispirited as well.  Where are the jobs for what they're being taught?  And how much in debt will they be?  And why can't they apply the robotics MOOC course they just finished as partial credit toward their degree?

There has got to be room for, in fact a crying need for, a different approach.  Stay tuned?   Or, better yet, send your thoughts along.


Friday, May 24, 2013

Hijacking the Summit

I worked with Nathan Zeldes at Intel some years ago; he is one of the most electric, energetic, insightful engineers I've ever had the privilege to know.  He asked a question the other day about my Medal of Defiance -- the answer I sent him is the basis for the previous post.

He has posted it on his own blog, with some contextual description, on his site.  See:
http://www.nathanzeldes.com/blog/2013/05/intrapreneurship-and-the-hewlett-packard-medal-of-defiance/

What was more fun for me was to get Nathan's response to my brief essay.  Here it is -- unvarnished:

To be honest, I'm not at all surprised that you did all that insubordination (I remember well your "Let's highjack the summit" that led to the founding of our VCRT) - but the thought that a senior manager would reward Defiance instead of punishing it is what I found particularly intriguing and very worth sharing.

"Highjack the summit?"  Me?  Maybe this is a more fun story to recall...

Well, this was circa autumn or early winter 2000.  I had become a member of the Intel technical staff after they bought Dialogic.  I actually missed the 'recruiting season' due to an enforced medical absence (I was immobilized, bedridden for a few months with a sports injury), and I was not a chip designer, so the question was 'what do we do with this guy?'    Recently back on my feet, they invited me to a conference and workshop to talk about Information Technology (IT), or so I thought.

What it turned out to be was a group of IT managers whining about how hard their job was, how slow the network was, how many Intel 'users' beefed about their slow service, and etc.  In other words, it was the typical lament of the typical IT organization, NOT a workshop to talk about possibilities for new applications and capabilities of "information technology".

Somehow, and I don't actually remember how, I had met Nathan by phone (he worked at Intel Israel), and we'd already explored what we might do with better collaboration tools.   Intel hadn't yet given up on Intel ProShare or Team Station, but the writing was on the wall.  Those systems were the best thing available at the time, but in truth they were clumsy, expensive, prone to technical difficulty, and worst of all, guaranteed to generate mistrust since you could never look the other person in the eye, only the eyelid.  Nathan and I had 'chewed the rag' on the phone several times about what might be better.

But at this conference, to which several hundred folk had flown in for several days, we were disbarred from having a session, or even a speaking gig.  Protocol meant that 'the important people' had agenda time; the troops were to listen and salute.  We poked this beast several times, and got nowhere.

I was incensed, and so was Nathan.  We talked about what to do, and I suggested that he stand up just before lunch on the second day with a 'spot announcement' -- saying something like "Hey, I know a lot of you folk are interested in collaboration tools across remote sites, and we don't have that on the agenda.  We're (that guy in the back, Chuck House, who you probably haven't met, and me) hosting a Brown Bag workshop in the next room over lunch, if you'd like to attend, we'd welcome you."

He did it.  And we got seven people.  The group met, got excited, formed a volunteer project, named it the VCRT team, and started on our own time to build some things.  VCRT stood for VIRTUAL COLLABORATION RESEARCH TEAM.  It took us a couple of years, but we built some prototypes, filed some patent applications, GOT THEM!, got noticed by management (not just in IT, but at the Exec level), and got instantiated as the Colab research team for the company.

One paper still available is titled "3D Global Virtual Teaming Environment" which shows some of the environment.  See my Research gate postings: https://www.researchgate.net/publication/221338080_3D_Global_Virtual_Teaming_Environment?ev=prf_pub

Monday, May 20, 2013

Medal of Defiance

People keep asking ... what's the story on this wacko-sounding award.  So, here's a brief summary:


The HP Medal of Defiance



From the viewpoint of Dave Packard, founder
The Medal of Defiance was awarded only once in the history of Hewlett-Packard, by HP's founder , David Packard, to Chuck House in April 1982 when House began a new role as HP’s Corporate Engineering Director, sitting in an adjoining office to David Packard, chairman of the board.  Bill Hewlett, Dave’s co-founder, had the adjacent office on the other side. Packard had become concerned that the “new HP” in the computer business was becoming very bureaucratic. 
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New CEO John Young thought it key to shift resources from instrumentation to computing, and to co-ordinate all of the R&D efforts across ninety divisions into something much more efficient.  But the very appointment of a Corporate Engineering Director was evidence to Packard that a job to co-ordinate strategies, streamline development times, and strengthen productivity rather than emphasize creativity would be viewed as another “Headquarters” imposition.

House was one of those mavericks, though, from a remote division who exemplified local creativity.  He had pioneered several major programs, and helped launch a dozen divisions in his first twenty years at the company.  If anyone could meet Young’s goals, and persuade the bulk of HP engineers and managers that this was workable, it augured to be House.

Packard recalled one long-forgotten incident with House, and he concluded that an award to House at inception of this new corporate role could set a tone that emphasized innovation and creativity at EVERY level of the company.  Voilà, the Award of Defiance was conceived, created, and bestowed.
 
The history, by Chuck House (extracted from “Old Bribery”, Chapter 2 of Permission Denied: Odyssey of an Intrapreneur, InnovaScapes Institute Press, 2013)
Given a choice of several new projects, I hadn’t previously seen one that was on the list, an FAA (Federal Aviation Administration) control tower monitor.  I asked my boss, “What’s this one?”  His cryptic answer: “We don’t really know.  It’s a new request, not really an oscilloscope.  Milt Russell in our cathode ray tube (CRT) department has worked in this area; he might know something about it.”

The FAA wanted to see images of airplanes near an airport ― recall movie scenes where a control tower is tracking radar blips on CRTs (cathode ray tubes, or television tubes) that indicate planes. Our chief competitor, Tektronix, had voted ‘no,’ giving us an opening. Milt Russell, a short soft-spoken scientist, had come from General Electric, the company that built the display equipment extant at airports.  Russell was touting a new technology: an expansion mesh lens that he believed could shorten the picture tube length dramatically (from 54 inches to 18 inches).

For this project, however, there was a new requirement: the FAA wanted the CRT to show more than a radar blip. They wanted identifying flight letters next to each blip, a hard goal with an expansion mesh approach.  The prototype didn’t meet the FAA needs since it defocused the letters that identified the planes.  Russell fiddled with the focusing problem; I sought applications where focus wasn’t so important.  We probably should have gone back to our bosses and said, “Hey, this won’t work for the FAA requirement.  We should call FAA and say ‘we’re sorry’ and then cancel the project.”
The prototype was pretty intriguing.  Essentially it was a very high-speed television set.  The diagonal screen size was impressive for a ‘scope, 14 inches instead of 5 ― an 800 per cent larger display.  The joke was that we were building a much faster TV set so that you could watch the movie Gandhi in four minutes.  Other wags opined that it was a ‘scope for nearsighted long-armed engineers.

By the time that our bosses figured out that we couldn’t solve the FAA problem, I loved the pictures we could display.   Wanting to take the unit to some potential customers, I was strongly told ‘No.’ HP did not allow engineers to go alone to customers (a sales representative had to go); second, we couldn’t afford the extra travel expense; and third, HP didn’t allow prototypes to be shown to customers because that might tip our hand.

I proposed to take the box with me on a personal trip to California for the upcoming Christmas holidays, calling on customers where HP sales people set up the meeting.  This met two of the three objections ― the contacts and the travel cost.  For the third point, I argued that if we were going to cancel the project for lack of market, there was no real danger in ‘tipping our hand to competitors’.  They grudgingly acquiesced.

The box, though, was too big to put in my car.  I had to package the unit ― in an eight cubic foot box, two feet on every side ― take it to the airport, and fly it from place to place.   At each stop, I’d put my family in a motel, take the right front seat out of my vintage Volkswagen Beetle, go to the airport, get the box, bring it to the motel, unpack it, and then go to the customer. 

I met with twenty potential customers in two weeks.  It generated phenomenal excitement. Sadly, the findings weren’t persuasive back home.   At the annual division review, Packard asked us about the technology, and later, about the market.  The executives punted, saying they’d found few potential customers.   I wasn’t asked ― I was ‘just’ a designer, sans experience with marketing.  In a stentorian voice, Packard said: “When I come back next year, I don’t want to see this project in the lab.”

Told this verdict the next day, I was quite upset.  Our marketing manager, a talented, energetic voluble man, had said the sales forecast was thirty-one units, a number that enraged me.  I countered, saying that he’d missed by six percent, since he had not called my father, who wanted two units.

I argued for the applications; my R&D boss was courageous, granting an extra $60,000 for eight months to get to production.  When Packard returned a year later and saw it, he nearly had a stroke ― pounding the table, he bellowed : “I thought I said to kill this damn thing.”

I witlessly said, “No, sir.  You said when you came back, you didn’t want to see this in the lab.  It isn’t.  It’s in production.” 

The answer didn’t satisfy.

Results: Most paradigm shifts start slowly.  Three months after sales release, we had sold forty units, a pleasing if not rousing launch.  The new applications for this display box were compelling.  It became the first commercially available computer graphics CRT.  Beyond Alan Kay’s ‘personal computer’, Doug Engelbart bought one to experiment in the first demonstrated computer network in the famous “Mother of All Demos”.  It won a Hollywood Oscar for technical screen graphics, it was the surgery room display for Dr. Norman DeBakey’s first artificial heart transplant, and it was the basis for the TV space video of Neil Armstrong’s foot landing on the moon July 20, 1969.

These high-visibility successes were in the future – for the moment all we had were a few sales and a peeved CEO.

What did I learn?  Bring passion and dedication to your job, and never quit in the face of adversity.  Be willing to challenge ‘the rules’ – nothing good happens unless something happens first.