Archive for 'Business'

Innovate or be Disrupted

I’ve never shopped around for thermostats, nor do I know anyone else who has. However it sure seems that if there was previously a “must-have” thermostat out there, it would have made news before Nest Labs launched their product, the Nest Learning Thermostat, a few months ago.

If you didn’t know, the Co-Founders of Nest Labs previously worked at Apple on the iPod and iPhone. They’ve stated that their experience has shown that every detail matters – physical design, user interface, usability, packaging and marketing.

Their product is elegant, functional and has a purpose to help people save money.

Over a week ago, I read that Honeywell International is suing Nest Labs for infringement of seven thermostat tech patents. I haven’t been able to stop thinking about it.

Now, of course, I think companies have a right to defend their patents. But all of the infringement lawsuits going on between big companies are just sad (Apple, Samsung, Microsoft, Google… the list goes on). It’s a patent arms race to see who can stockpile the most.

The situation between Honeywell and Nest Labs is slightly different. Honeywell International has been around since 1906 and Nest Labs is a startup. It’s probably very difficult to consider oneself an “inventor” these days, but that is kind of what startups are.

Invention today is often tackling new problems or re-inventing the products and industries that are stagnant. That is what Nest Labs has done. They identified a stale product and completely re-defined it. Except for the most discerning, I suspect homeowners could care less about thermostats, or in the least only think about how distracting they look on their walls.

Although the latest Honeywell model does have some modern technology, it just doesn’t have the elegance of the Nest Thermostat. Honeywell had plenty of time to innovate, but didn’t. They didn’t design from a fresh perspective, only an incremental one.

Nest Labs has provided an option to have an eye-catching piece of gadgetry that supports an “eco-friendy” lifestyle and just might save some cash on the energy bill. Even with the question of “Did we need a new thermostat?” the Nest Learning Thermostat is the type of product that the gadget-minded wants to have.

Similarly, the Apple iPod wasn’t the first portable digital music player when it was released in 2001. I had previously owned a Diamond Rio PMP300 MP3 player around 1998. It was a piece of plastic junk that held about 12 MP3s. It and every other portable music player was left behind after the iPod launch. Everyone just wanted one, including me, even if it had less features.

The catchy term in Silicon Valley for re-invention is “disruption“. Startups often aim to disrupt a product or service that is tired. Bonus points if the objective is to do one thing and do it well.

What Nest Labs has done should be seen as an inspiration – not just for independent inventors, but all companies and industries that are complacent with their products and services, those that take no risks. This is your wake up call to innovate.

Nest Lab’s position that Honeywell’s lawsuit is simply a strategy to stifle competition comes as no surprise and I hope that they prevail. I know I’ve been jonesing for their product since its introduction — now I just have to order one.

Foursquare opens up API to Explore and Leaderboard Data

Foursquare continues to expand as one of the leaders in the geo location social network space.  They’ve already done a tremendous job of getting consumers to check in everywhere with gaming elements including badge collecting, leaderboards and the notoriety of becoming a venue’s Mayor.  They have had great adoption by brands and brick-and-mortar venues to offer incentives and deals for check ins.

Foursquare has stated that in addition to dominating in the realtime check in space, they intend to lead in the area of “anticipating” where a consumer might like to go.  That’s where their latest areas of development came in a few months ago: Explore and Recommendations.

Today they announced that they are extending their API for developer access to Explore and new Leaderboard features.  This should be a major boost for Foursquare’s ecosystem, much like Twitter’s widely adopted API resulted in hundreds of Twitter-related apps.  It will be interesting to see what developers come up with.

What do you think?  Are you a Foursquare check in junkie?

Edison on the Pivot

“Just because something doesn’t do what you planned it to do doesn’t mean it’s useless.”

- Thomas Alva Edison

Looks like creative people have been thinking about the “pivot” for a long time!

What Trip Hawkins and Investors had to say at the AppNation Conference

I had a chance to attend Day 1 of the AppNation Conference in San Francisco yesterday.  This is the second year for AppNation and this year’s 2-Day event is subtitled “Show Me The Money Conference“.  AppNation Chairman Drew Ianni has done a tremendous job lining up an amazing breadth of speakers for the presentations, panels and sessions.
I was just in time to catch the end of the opening keynote by Trip Hawkins, CEO of game company Digital Chocolate, but most widely known as a founder of Electronic Arts and The 3DO Company.  Hawkins’ most notable point centered on the “browser beating the app store” and the biggest challenge of app developers being consumer discovery.  These points were echoed by other panels later in the day that including investors, developers and app store ecosystem companies.  Hawkins cited a few logical facts to back up his browser argument, including:

  • Most people are still discovering apps via regular web browsing, which is faster and driven by search
  • Tablets are browser friendly
  • Mobile and TV browsers are getting better
  • Specific devices will matter less in the long run

The next big panel was made up several investors; Ianni proclaimed “We’ve got the money in the room!”  There was various shades of sentiment on whether or not the technology sector is in a bubble or mini-bubbles or no bubble at all.  Very clear.  That aside, they did agree that investors are putting money in. The other point they agreed upon is that there are more different types of financing available than ever before.  One can’t help but to spot the headlines of 2-person companies to those that have been building for years getting funding from traditional VCs, Angels, Super Angels and even crowdsourced.

When asked for final remarks, a few of the panelist had a few wise (and interesting) things to share:

  • Aydin Senkut advised app developers to look for smaller categories that don’t have mobile leaders, such as health since games, news and social network already have leaders and an increasingly crowded landscape.
  • Steve Eskinazi stated that he still prefers investing in small nimble teams finding that they often outperform larger lumbering teams.
  • Raj Singh had a surprising statement – a feeling that the mobile [app] space has had a lot less disruption than the first internet revolution and that the opportunities are not quite as broad except for some specific categories like location.  A few of his co-panelist seemed perplexed.  Unfortunately, the panel ran out of time for further discussion.

Look out for my next post featuring App Rock Stars and the Platform Problem.

Entrepreneur School in a Box – Videos and Podcasts from Thought Leaders

Stanford ecornerIn my last blog, Iteration Improves Innovation – Simple Advice from 3 Technology Thought Leaders, I presented some tips shared by an amazing panel of speakers at the last MIT/Stanford VLAB talk. While my friend George and I were mingling with other attendees before the talk, one gentleman spoke of a regular series that takes place weekly during Stanford’s academic year – The Entrepreneurial Thought Leaders lecture series. He indicated that it is open to the public.

While we plan to look out for the schedule in the upcoming fall an winter sessions, We were very excited to learn that Stanford shares over 1,600 videos and podcasts online at their ecorner website: http://ecorner.stanford.edu/. There is an amazing lineup of superstar speakers in a broad range of fields including technology, finance, biotech, mobile, education and government.

I’ve already downloaded and begun listening to at least a dozen podcasts, including Marc Andreessen (Serial Entrepreneur/Ning/Loudcloud,Netscape), Randy Komisar (Author/KBCP), Steve Case (Revolution/AOL), David Heinemeier Hansson (37signals), Mark Pincus and Bing Gordon (Zynga), Mark Zuckerburg, Jim Breyer and Sheryl Sandberg (Facebook), Eric Ries (Lean Startup movement) and a bunch more…

Now to find the time!

Which videos or podcasts look interesting to you?