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Chasing Unknown Unknown, The Spirit Of Silicon Valley

A framework that I use to think about problems disruptive technology could help solve is based on what Donald Rumsfeld wrote in his memoir, Known and Unknown : Reports that say that something hasn't happened are always interesting to me, because as we know, there are known knowns; there are things we know we know. We also know there are known unknowns; that is to say we know there are some things we do not know. But there are also unknown unknowns -- the ones we don't know we don't know. And if one looks throughout the history of our country and other free countries, it is the latter category that tend to be the difficult ones. A couple of decades ago technology was seen as means to automate manual processes and bring efficiency. While largely automation is a prerequisite in the modern economy the role of technology has significantly changed to create unique differentiation and competitive advantage against peers in an industry. Many people are working on making things bett...

Fixing Software Patents, One Hack At Time

Software patents are broken and patent trolls are seriously hurting innovation. Companies are spending more money on buying patents to launch offensive strikes against other companies instead of competing by building great products. There are numerous patent horror stories I could outline where they are being used for all purposes except to innovate. In fact the software patent system as it stands today has nothing to do with innovation at all. This is the sad side of the Silicon Valley. While most people are whining about how software patent trolls are killing innovation some are trying to find creative ways to fix the problems. This is why it was refreshing to see Twitter announcing their policy on patents , Innovator's Patent Agreement, informally called IPA. As per IPA, patents can only be used in an offensive litigation if the employees who were granted the patents consent to it. I have no legal expertise to comment on how well IPA itself might hold up in a patent litigation ...

Bangalore Embodies The Silicon Valley

I spent a few days in Bangalore this month. This place amazes me every single time I visit it. Many people ask me whether I think Bangalore has potential to be the next Silicon Valley. I believe, it's a wrong question. There's some seriously awesome talent in India, especially in Bangalore. Don't copy the Silicon Valley. There are so many intangibles that Bangalore won't get it right. And there's no need to copy. Create a new Silicon Valley that is the best of both worlds. If you want some good reading on what makes silicon valley the Silicon Valley, read the essay " How to be Silicon Valley " by Paul Graham. Bangalore does have some of these elements - diversity, clusters, a large number of expats etc. It's quickly becoming a true cosmopolitan city in India. You don't need to know the local language (Kannada) to live there. It does have a few good colleges such as IIM and IISC, but no IIT. The real  estate boom in Bangalore is a clear indicator of...

Plotting for serendipity

I rarely eat lunch at my desk. Eating lunch in a cafeteria is such a precious opportunity to waste. I plot for serendipity. That's right. Some of the best conversations that I have had with people — on my way to a cafetaria or in the cafeteria — are purely serendipitous, but they're not purely accidental. I even pick a cafeteria that requires me to walk a little more. I believe you can always create opportunities for good things to happen to you. When people say "It's a small world", they are so wrong. The world isn't small but they're at the right place at the right time to think it's a coincidence. The coincidences do happen but there's a larger force behind orchestrating the possibilities for such coincidences to occur. The same applies to creativity. You can design an epiphany. I have heard people say that they had an epiphany while they were in shower. It's not the shower but it's illumination followed by a prolonged incubation , two p...

Taking The Quotes Out Of "Design Thinking"

Bruce Nussbaum, a design thinking thought leader and a professor of Innovation and Design at Parsons The New School of Design, recently wrote that Design Thinking Is A Failed Experiment . He claims that: "Design Thinking has given the design profession and society at large all the benefits it has to offer and is beginning to ossify and actually do harm." Rubbish. I would argue otherwise. Design thinking is not a catchphrase anymore, and that perhaps is an issue for someone like Bruce who wants to invent a new catchphrase to sell his book. When I tweeted his post, Enric Gili - a friend, co-worker, and a design thinker whom I respect - had to say this: I couldn't agree anymore. I have learned, practiced, and taught design thinking, for living. I have worked with folks from IDEO , closely, very closely. I have mentored students at Stanford d.school and I live and breathe design thinking. I don't think of it as a method that goes out of fashion. For me, it's a relig...

10 Business Books In 2010

These are the 10 business books published in 2010, that I would recommend you to read. Originally, I wrote this on Quora, in response to " What are must read business books of 2010? ". Yes, I have read all of them, and no, they are not in any specific order. 1) What the Dog Saw by Malcolm Gladwell I am a big fan of Malcolm Gladwell and his style. This is a compilation of his "The New Yorker" stories. Even though the articles are available on his website, this book makes it a great read. 2) Cognitive Surplus by Clay Shirky The next time someone asks you how come people have so much time to blog, answer questions on Quora, or contribute to Wikipedia, ask them to read this book. 3) The Big Short by Michael Lewis Want to know all about CDO and subprime mortgage and still be entertained? This is the book. Michael Lewis has great storytelling skills that makes serious and complex topics fun to read. I like this book as much as I liked Moneyball - http://amzn.to/b9YP...

Disruptive Cloud Computing Startups At Under The Radar - NoSQL - Aspirin, Vicodin, and Vitamin

It was great to be back at Under The Radar this year. I wrote about disruptive cloud computing start-ups that I saw at Under The Radar last year. Since then the cloud computing has gained significant momentum. This was evident from talking to the entrepreneurs who pitched their start-ups this year. At the conference there was no discussion on what is cloud computing and why anyone should use it. It was all about how and not why. We have crossed the chasm. The companies who presented want to solve the “cloud scale” problems as it relates to database, infrastructure, development, management etc. This year, I have decided to break down my impressions into more than one post. NoSQL has seen staggering innovation in the last year. Here are the two companies in the NoSQL category that I liked at Under The Radar: Northscale was in stealth mode for a while and officially launched four weeks back. Their product is essentially a commercial version of memcached that sits in front of an RDBMS ...

Silicon Valley Is An Innovation Dagger

It was a routine trip back home from work one of these days. As soon as I boarded the bus the driver asked me: "So, what do you think about Google's announcement regarding China? Will Yahoo follow the suit?". The same bus driver had asked me about my views on NexusOne on the day it was announced. He even has a strong point of view on net neutrality. The other day the librarian showed me a Firefox plug-in that hides your identity from Google. Everyday it's a constant reminder of the demographics that we live in the Silicon Valley. It's an innovation dagger. One edge keeps people to stay on top of cutting edge technology and the other keeps them away from the vast majority of the users that don't live in the valley. I cannot overemphasize the importance of being surrounded by the smartest of the smart people in the valley. However for entrepreneurs it is equally important to stay grounded in the reality. As cool as iPod was and iPhone is and iPad/iSlate will be ...

India Needs Public Policy And Service Innovation And Not Web 2.0 Companies

The second most populous country with the fourth largest spending power, India, saw a surprising 7.9% YOY GDP growth well above the expectations of 6.3%. The Indian stock market recovered much quicker since the US financial meltdown. In fact one of my friends who oversees sales of a European earthmoving equipments company in India complained that the European manufacturers have not increased their production to meet the increased demand in India due to the faster economic recovery, especially in the infrastructure sector. When I switch on a news channel in India I hear all about incentivizing manufacturing companies to increase indigenous production that will fuel the growth of the industrial sector. I also see commercials ranging from baked potato chips to a service to transfer money using virtual currency on a mobile phone targeted to the fast growing middleclass. The marketers have no problem understanding the rich and the middle-class of India and designing the products for them. ...

Google Does Not Have Innovator's Dilemma

I asked a question to myself: "Why has Google been incredibly successful in defending and growing its core as well as introducing non-core disruptive innovations?". To answer my own question I ran down Google's innovation strategy through Clayton Christensen's concepts and framework as described in his book " Seeing What's Next ". Here is the analysis: Google's latest disruptive innovation is the introduction of free GPS on the Android phone. This has grave implications for Garmin. To put this innovation in the context it is a "sword and shield" style entrant strategy to beat an incumbent by serving the "overshot customers". The overshot customers are the ones who would stop paying for further improvements in performance that historically had merited attractive price premium. Google used its asymmetric skills and motivation - Android OS, mapping data, and no direct revenue expectations - as a shield to enter into the "GPS M...

True Entrepreneurial Spirit Is Believing In A BHAG

GigaOM has a post " How Start-ups can win big with VCs " that muddies their point of view of having a clear value proposition with not doing something because no one may want this or someone else has already done it. I added the following comments to that post: I agree with the viewpoint about honing the pitch. However I have a different take on some of the start-ups. It’s one thing not to know what the value proposition is but it is other thing to believe in a BHAG . Many start-ups had huge success when people initially thought that they could live without that. Twitter is one of those examples. Also, there is nothing wrong in duplicating what someone else is doing. Presence of similar companies signal that there is a market. It is now up to the new entrant to beat the competition by solving the problem well. When Google announced Gmail it was one of the last (as of now) web-based email that was introduced. Google would not have released Gmail or even the sear...

Designing An Innovation Incubator To Prevail Over Innovator's Dilemma

The large scale software companies often deal with the tension between incremental and revolutionary innovation. They know that if they only keep listening to their customers' requests the very same customers will put them out of the business. Clayton Christensen has captured this phenomenon in The Innovator's Dilemma . Over a period of time these companies have managed to execute the incremental innovation really well to deliver the same software release after release and occasionally introduce new products. However most of these companies struggle to incubate revolutionary innovation inside the company since it is fundamentally a different beast. The executives are often torn between funding the revolutionary initiatives to ride the next big wave and funding the incremental innovation that the current customers and the market expects. It is absolutely imperative for the executive management to differentiate between these two equally important but very different types of inno...

Creating, Nurturing, and Sustaining Innovation Clusters

McKinsey has partnered with the World Economic Forum to create an “Innovation Heat Map" to identify innovation clusters based on the analysis of the variables that drive innovation. The clusters are plotted on a classic McKinsey 2x2 that measures the size of a cluster on momentum versus diversity. I would encourage you to read the detailed analysis and look at the innovation heat map . The clusters are classified as: Dynamic oceans: Large and vibrant innovation ecosystems with continuous creation and destruction of new businesses. Leading innovators and primary sectors change organically as the hub frequently reinvents itself through significant breakthrough innovations. Silent lakes: Slow-growing innovation ecosystems backed by a narrow range of very large established companies that operate in a handful of sectors. These clusters are frequently the source of a steady stream of “evolutionary” innovations and step-wise improvements. Shrinking pools: Innovation hubs that ar...

Nokia Is The New Blackberry Of The Emerging Countries

Nokia announced mobile email service, Mail on Ovi, currently targeting the emerging markets . Nokia has had great success in selling reliable and inexpensive handsets in the emerging markets. In the countries such as India the consumers never used the voice mail on their landlines and went through the mobile revolution to use SMS as a primary asynchronous communication medium. Many of these users are not active email users, not at least on their mobile devices. If Nokia manages to provide ubiquitous user experience using Ovi to bridge email and SMS on not-so-advanced-data-networks it can cause disruption by satisfying asynchronous communication needs of hundreds of thousands of users. The smartphones would certainly benefit out of this offering and give Blackberry a good run for their money. Nokia completed the Symbian acquisition that makes them a company whose OS powers 50% of all the smartphones in the world. Symbian is still a powerful operating system powering more than 200 milli...

Microsoft Cloud Computing Blogger Roundtable

Today Microsoft announced the cloud offering for Exchange and SharePoint . I was invited to participate into the Microsoft Blogger round table that took place after the announcement as an initiative by Microsoft to establish relationship with the bloggers and thought leaders in the cloud computing area. The launch event, attended by select customers, partners, bloggers, and the press, included a demo that articulated the seamless ubiquity of the solution – from the cloud to on-premise and vice versa reiterating the client-server-service strategy. Microsoft also iterated their commitment to continue investing massively into the data centers and also emphasized commitment to sustainability. When asked about the SLA the answer was that the SLA is based on availability, security and privacy, and recovery time in the event of a disaster based on the geography. The SLA is three 9. Stephen Elop, president of the Microsoft Business Division at Microsoft dismissed the possibility of slow online...

First Click Free - Opportunity For The Publishers To Promote Previously Undiscoverable Content

Nick has posted his analysis on Google's First Click Free . This free service allows the content providers to participate into it and promote their content by making the first click free when users discover the content via Google and subsequently enforce registration or subscription for the rest of the content. I think this is a great idea! I am personally against the walled garden approach and do not believe in registrations and subscriptions just because content providers haven't managed to convince me so far to register or subscribe to for their content. This is a great opportunity for the publishers to showcase their content by making the first link free, demonstrate the value proposition, and drive traffic towards the paid content. The discussion on the service has so far centered around: Google making other search engine's users second-class citizens and not sticking to an unmediated role. Users' ability to trick the content providers to get access to all t...