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Capital Lock up in Efficiency Innovation

Watch The Capitalist’s Dilemma – Prof. Clayton Christensen (HARVARD and OXFORD Universities)

Clayton Christensen on Religion and Capitalism

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August 7, 2014 · 11:55 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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