Monthly Archives: December 2013

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Disruptive Innovation Growth

Clayton Christensen (Oxford and Harvard Universities)

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December 1, 2013 · 1:07 pm

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Nine business lessons from Bob Metcalfe, Ethernet inventor who spoke at Gig Tank

By C. Morrison, August 7th 2013 Bill Wallace with US Ignite interviewed inventor of the Ethernet Bob Metcalfe at Tuesday's Demo Day. He wore Asics trail running shoes, but noted via Twitter that he doesn't run. Inventor of Ethernet Bob Metcalfe headlined Tuesday's Gig Tank and received a warm welcome as he professed "startup-ery" and shared his expertise on innovation and business. US Ignite official Bill Wallace interviewed Metcalfe, whose invention allowed computers to connect and communicate with one another, laying the foundation for the modern-day Internet. He's currently a professor of innovation at the University of Texas at Austin, and he received his Ph.D. from Harvard. In 1979, the Internet pioneer founded 3Com Corporation, which is now part of HP. He has also spent time as a venture capitalist and is a self-described “publisher-pundit.” "I'm here from the Chattanooga of Texas—Austin," Metcalfe said. He entertained and informed an enthusiastic tech-centric crowd Tuesday. Here are nine lessons from Bob Metcalfe. "Invention is a flower, and innovation is a weed." Chattanooga has the tools and resources for innovation, he said. But the public often resists innovation and change. "If you’re an innovator, you have to be a weed and grow—despite the status quo," he said. Be competitive. He attributed part of his success to being competitive. "Ethernet competition is fierce," he said. "From that competition comes great progress." MOOCs are good. MOOC stands for massive open online courses. Metcalfe just learned Python coding language via an MIT MOOC. He and his son both took classes and competed against each other for better grades. A lot of people don't like the idea of MOOCs because they don't allow for personal interaction with the professor. But Metcalfe doesn't agree. Disruption can be good. When speaking on the potential of what could be done with 1-gig infrastructure, Metcalfe said that it has the potential to disrupt industries that need a jolt, such as education, energy and health care. "The Internet disrupted the U.S. Postal Service with electronic mail, and we disrupted music with iTunes," he said. "We've done serious disruption to retail with companies like Amazon." Now, MOOCs and other Internet applications are disrupting and improving education. "The Internet is going to disrupt education in a positive way," he said. Now, someone just needs to create an app that solves the unsolved problem of MOOCs—how to create a learning community with peer-to-peer and professor interaction under the MOOC model, he said. Metcalfe's Law. In addition to inventing Ethernet, Metcalfe also developed an idea that's now named for him. Metcalfe's Law states that the value of a telecommunications network is proportional to the square of the number of connected users of the system. For example, a single fax machine doesn't have much use, but the value increases when more people get fax machines. Or a social network is more valuable the more users it has. And eventually, value passes the cost. Metcalfe said that it's important for Chattanooga to team up with the other gig city, Kansas City, and it's important to develop critical mass and connect to other networks for the gig to reach its greatest potential. Everyone makes mistakes. Metcalfe once wrote a column predicting the total demise of the Internet by 1996. He listed about a dozen reasons for his prediction, which obviously didn't come true. When the prediction didn't come to fruition, he kept his word that he would literally eat his words and ate his column, he said. "I'm more famous for having been wrong about the prediction and eating my column than I am for Ethernet," he said Tuesday. Engage students, schools. At least on first impression, Metcalfe said he didn't get the impression that the area's colleges, such as UTC and Covenant, were engrained enough in the community's innovation. In successful startup communities, such as Silicon Valley, universities are key to success, he said. Nerds and suits needed. Good startups have two kinds of people—nerds and suits, he said. The suits are the salespeople. They play golf, wear ties and drink too much, Metcalfe joked. The nerds sleep late, don't dress well and probably avoid most contact with the public. And those personalities sometimes clash, he said. "Natural animosity develops," he said. But the city can’t let that happen because it will hurt business, he said. Learn to sell. In "startup-ery," you have to be able to sell. First, sell the idea to yourself, then to your co-founder, because no one can start a business alone, he said. Then, you sell to customers and investors. "The most important thing is to learn to sell in startups," he said. http://nooga.com/162843/nine-business-lessons-from-bob-metcalfe-ethernet-inventor-who-spoke-at-gig-tank/
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You Don't Become a Social Business by Just Building Social Networks Businesses are starting to realize that implementing social is an economic necessity rather than just a marketing strategy. Sandy Carter, Vice President of Social Business, IBM Jul 29, 2013 Shopping online used to seem novel. But then traditional commerce and e-commerce merged, until there wasn't any more “online business.” Only business. A similar shift is unfolding right now with social and mobile technology. The companies that see opportunity in this shift are moving fast, weaving social technologies throughout their operations. Their customers, partners, and employees are demanding a digital experience that is consistent across mobile devices to help them find the information, products and services they need. These companies realize that in order to be more efficient, innovative and sustainable, their businesses have to become social by design. Here are a few ideas on how your business can become more social: Use social technology to connect with customers: Social technology is about more than likes or tweets. It’s about helping customers create the communities and experiences they need to get the most out of the world. Some 60 percent of customers use social media to discover new brands and products, 46 percent of customers use it to strongly influence purchase decisions, and 40 percent check social media before making purchase decisions, according to a recent study. Your customers are already talking about your brand on their social networks. Connect with them socially, and they can become brand advocates. ibm_injector_why Italian poultry leader Amadori Group has been using social technologies to interpret the web as an infinite focus group. By creating different sites for different audiences and listening to and engaging with those communities, the company is picking up insights and using them to respond to customers’ changing tastes, and turning customers into advocates. Provide social tools so community members can share with one another – and keep coming back: Social networks need to be useful. Smart organizations aren’t just tailoring their social media offerings to their audience, they’re making sure they’re connected to other kinds of information and services that their customers, partners and employees need. Become a social business by doing more than simply building a social network: You must be committed to constantly collecting and making sense of the vast amount of big data that social networks and the people within them create. About 81 percent of purchasers get product purchase advice from social networks. Who is saying what and why, and how you tap into that particular conversation, is critical to your success. Being a social business isn’t a marketing push. It’s an economic reality. During the next five years, 95 percent of standout organizations will focus on getting closer to the customer and 57 percent are more likely to let people use social and collaborative tools, according to an IBM study. Going forward, social business will be the only way to do business. About The Author Of This Post Sandy Carter, Vice President of Social Business, IBM Sandy Carter is Vice President of Social Business at IBM. She holds an MBA from Harvard and a Bachelor of Science degree in math and computer science from Duke University. Follow her updates on Twitter @sandy_carter. Sponsored Content Presented By Read more: http://www.theatlantic.com/sponsored/ibm-social-business/2013/07/you-dont-become-social-business-just-building-social-networks/4/#ixzz2bOqI3hG3
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