Category: Entrepreneurship

Private Nav Canada More Innovative than Government FAA

(p. D1) Ottawa
Flying over the U.S.-Canadian border is like time travel for pilots. Going north to south, you leave a modern air-traffic control system run by a company and enter one run by the government struggling to catch up.
Airlines, the air-traffic controllers’ union and key congressional leaders all support turning over U.S. air-traffic control services to a newly created nonprofit company and leaving the Federal Aviation Administration as a safety regulator. It’s an idea that still faces strong opposition in Congress, but has gained traction this year.
The model is Nav Canada, the world’s second-largest air-traffic control agency, after the U.S.
. . .
The key, Nav Canada says, is its nongovernmental structure. Technology, critical to efficient airspace use these days, gets developed faster than if a government agency were trying to do it, officials say. Critics say slow technology development has been the FAA’s Achilles’ heel.
“We can fly optimal routes because of the technology they have. It makes a big difference,” American Airlines vice president Lorne Cass says. “These are things customers don’t see except they shave off minutes.”
Mr. Cass, who has worked for several airlines and the FAA, first visited Nav Canada in 2004 to see new technology. “They’ve always been pretty good at continuous modernization,” he says. “They just have more flexibility than the FAA has.”
. . .
(p. D2) In government, you often need giant programs with huge promises to get funding. But Nav Canada opted for small projects, often with no idea what the outcome should look like. The company hired a corps of techies that the federal agency had never had and involved controllers in development.
“We’re convinced you’re better off doing things incrementally than a big bang approach,” Mr. Koslow says.
Data linkage between cockpits and control centers is one example. Text messages with cockpits have been in use across oceans, in parts of Europe and across all of Canada for several years. Controllers in Montreal who handle planes to and from North America and both Europe and Asia say the texting system virtually eliminates problems of mishearing instructions and readbacks over the radio because of foreign accents.
Another innovation adopted around the world is electronic flight strips–critical information about each flight that gets changed on touch screens and passed from one controller to another electronically. Nav Canada has used them for more than 13 years. Many U.S. air controllers still use paper printouts placed in plastic carriers about the size of a 6-inch ruler that controllers scribble on.
. . .
Jerome Gagnon, a shift manager in Montreal’s control tower, says the electronic system has reduced workload, errors and noise. “We don’t want controllers to just be heads down. There’s a lot of stuff that happens out the window,” he says.
Rarely do controllers have to call each other to coordinate flights anymore, but making changes with the FAA on cross-border flights can’t be done electronically.
As he explains the process in the Montreal tower, other controllers start laughing. One blurts out incredulously: “You still have to call the FAA by phone!””

For the full story, see:
SCOTT MCCARTNEY. “THE MIDDLE SEAT; The Air-Traffic System U.S. Airlines Wish They Had.” The Wall Street Journal (Thurs., April 28, 2016): D1-D2.
(Note: ellipses added.)
(Note: the online version of the story has the date April 27, 2016. The online version has a couple of extra sentences that are included in the passages quoted above.)

The Internet Favors Creators in the Long Tail of Distribution

(p. A13) Does the internet pose a threat to established entertainment companies? Michael D. Smith and Rahul Telang lead a class at Carnegie Mellon University in which a student recently put that question to a visiting executive. He pooh-poohed the idea: “The original players in this industry have been around for the last 100 years, and there’s a reason for that.” As co-heads of CMU’s Initiative for Digital Entertainment Analytics, Messrs. Smith and Telang aim to counter this line of thought, and in “Streaming, Sharing, Stealing” they do just that, explaining gently yet firmly exactly how the internet threatens established ways and what can and cannot be done about it. Their book should be required for anyone who wishes to believe that nothing much has changed.
. . .
Then there’s the question of blockbusters vs. the long tail. In her book “Blockbusters” (2013), Anita Elberse, a Harvard Business School professor, contended that digital markets, far from favoring the “long tail” of products that were mostly unavailable in physical stores or theaters, actually concentrate sales at the top even further. Messrs. Smith and Telang quietly but effectively demolish this argument, noting numerous instances in which the opposite happened. In the case of one large chain, the top 100 titles accounted for 85% of the DVDs rented in-store–but when stores closed and customers were shifted to the Web, the most popular titles made up only 35% of the DVDs rented online.
The authors also note that, by making it easy for writers, musicians, and directors to work independently, digital technology has vastly increased the number of works available. Between 2000 and 2010, an explosion in self-publishing raised the number of new books issued per year to 3.1 million from 122,000.

For the full review, see:
FRANK ROSE. “BOOKSHELF; We’re All Cord Cutters Now; At one chain, the top 100 movie titles accounted for 85% of the DVDs rented in-store. But online, the top titles make up only 35% of rentals.” The Wall Street Journal (Weds., Sept. 7, 2016): A13.
(Note: ellipsis added.)
(Note: the online version of the review has the date Sept. 6, 2016.)

The book under review, is:
Smith, Michael D., and Rahul Telang. Streaming, Sharing, Stealing: Big Data and the Future of Entertainment. Cambridge, MA: The MIT Press, 2016.

Mobile Game Helps When Work Is Absurd Drudgery

(p. A1) SEOUL–When Lee Jin-po was laid off last year for the third time in as many years, the 29-year-old mobile-game programmer expressed his frustration in his own instinctive way: He made a mobile game about it.
In Mr. Lee’s “Don’t Get Fired!,” the object is to rise through the ranks at a nameless corporation by performing an endless string of mind-numbing tasks, while avoiding a long list of fireable offenses.
“It’s just like real life,” he says.
In South Korea, where youth unemployment has hit an all-time high amid sluggish economic growth, “Don’t Get Fired!” has become a certified hit–one in a small raft of mobile games that has found success by embracing the drudgery and absurdity of work.
. . .
(p. A10) Mr. Lee later found volunteers to translate it into 12 languages, helping the international version attract another million downloads. Griffin Crowley, a 20-year-old high-school graduate in a Cleveland suburb, couldn’t stop playing after stumbling on it while fiddling with his cellphone. “Sometimes, you just have to laugh at the futility of life,” says Mr. Crowley, who recently worked a stint at a telemarketing company.

For the full story, see:
Cheng, Jonathan. “Congratulations Player One, Your Zombie Boss Didn’t Fire You; South Korean unemployment inspires games about work; laugh at chief’s jokes.” The Wall Street Journal (Mon., August 6, 2016): A1 & A10.
(Note: ellipsis added.)
(Note: the online version of the story has the date August 8 [sic], 2016.)

Japan Counting on Innovative Entrepreneurs for Economic Growth

(p. B3) TOKYO–Stacks of cardboard boxes serve as makeshift partitions at Mistletoe Inc.’s new office in Tokyo’s posh Aoyama district, where startups gather to work on their latest projects.
The do-it-yourself vibe–a far cry from the stuffiness typical of Japanese corporate offices–is something founder Taizo Son, serial entrepreneur and youngest brother of SoftBank Group Corp. founder Masayoshi Son, wants to see more of.
“Japan has the talent and funds but lacks the necessary ecosystem to create its own Silicon Valley, so that’s what we’re trying to provide,” said Mr. Son, 43, who describes Mistletoe as a program to cofound new businesses.
The nation that created the Walkman and the bullet train before China even had a tech industry now lags behind as Chinese Internet startups like Alibaba Group Holding Ltd. become global powerhouses. With its once-dominant technology industry struggling, Japan is counting on entrepreneurs to rekindle its hobbling economy.
The government is pledging to fund startups, top universities have launched incubators and venture funds to transform their wealth of knowledge into innovation and even Japan’s oldest and largest conglomerates, such as the Mitsubishi and Mitsui groups, are looking to nurture entrepreneurs..

For the full story, see:
ALEXANDER MARTIN. “Japan Looks to Rekindle Its Technology Innovation.” The Wall Street Journal (Mon., April 11, 2016): B3.
(Note: the online version of the story has the date April 10, 2016, and has the title “Japan Tech Hunts for Restart Button.”)

Presence of Biomarkers Predicts Whether Checkpoint Inhibitor Works

(p. D1) A collaboration between an immunologist helping his stepmother fight cancer and the oncologist who treated her led to a discovery that could help many more patients benefit from a transformative new therapy.
A new class of drugs called checkpoint inhibitors works by releasing a molecular brake that stops the immune system from attacking tumors. So-called immunotherapy has been approved for several types of cancers and found to extend lives of patients with advanced disease for many years. The problem is that for most patients immunotherapy doesn’t work.
The researchers, from University of California, San Francisco, said they identified a unique type of immune-system cell that “robustly” predicts whether patients will respond to one of the medicines–an achievement has the potential to significantly expand the number of cancer patients who benefit from checkpoint inhibitors.
The new discovery is based on a high-tech analysis of melanoma tissue from 40 patients treated with a checkpoint inhibitor from Merck & Co. called Keytruda, which targets an immune-system brake called PD-1. Although researchers say it will take further research to determine its value in treating patients, the finding offers fresh insight into the complex relationship between the immune system and tumor cells.
. . .
(p. D3) The researchers analyzed results of a study involving Keytruda before it was approved. They looked at the CD8 cells that had infiltrated the melanoma tumors of 20 patients treated with the drug and found that if at least 30% of those cells were marked by PD-1 and CTLA-4, the patient responded to treatment. When fewer than 20% of the infiltrated cells had those markers, not one patient responded.

For the full story, see:
RON WINSLOW. “Road to a Cancer Advance.” The Wall Street Journal (Tues., Aug. 16, 2016): D1 & D3.
(Note: ellipsis added.)
(Note: the online version of the story has the date Aug. 15, 2016, and has the title “Chance Collaboration Yields an Advance in Cancer Treatment.”)

Fracking Entrepreneur Aubrey McClendon Was Pressured by Antitrust Indictment on the Day Before Fatal Car Crash

(p. C2) Mr. McClendon, who co-founded Chesapeake Energy Corp. in 1989 and was a key figure in the shale boom that has upended global energy markets, was ousted from the energy company in 2013 over corporate-governance issues. He spent the three years after leaving Chesapeake building a new energy empire, raising more than $15 billion from investors, including major financial firms, to finance his comeback. But in 2014, oil prices plunged and natural-gas prices languished in a glut partly of his making, pressuring several of his new energy companies and making it more difficult for him to raise cash.
. . .
Exacerbating the pressure on Mr. McClendon was a federal antitrust investigation that culminated in his indictment the day before he died, on a single count of conspiring to rig oil-and-gas leases. Mr. McClendon vowed to fight the felony charge; local authorities later ruled they found no evidence of suicide.

For the full story, see:
RYAN DEZEMBER and KEVIN HELLIKER. “Oil Man Delivers for Heirs.” The Wall Street Journal (Weds., Aug. 31, 2016): C1-C2.
(Note: ellipsis added.)
(Note: the online version of the story has the date Aug. 30, 2016, and has the title “Oil-Deal Score Helps Aubrey McClendon’s Heirs Hang on to NBA’s Thunder, for Now.”)

“Cognitive Flexibility” and “Openness to Experience” Promote Creativity

(p. C3) In a 2011 study led by the Dutch psychologist Simone Ritter and published in the Journal of Experimental Social Psychology, researchers asked some subjects to make breakfast in the “wrong” order and others to perform the task in the conventional manner. Those in the first group–the ones engaged in a schema violation–consistently demonstrated more “cognitive flexibility,” a prerequisite for creative thinking.
. . .
Exceptionally creative people such as Curie and Freud possess many traits, of course, but their “openness to experience” is the most important, says the cognitive psychologist Scott Barry Kaufman of the University of Pennsylvania. That seems to hold for entire societies as well.
Consider a country like Japan, which has historically been among the world’s most closed societies. Examining the long stretch of time from 580 to 1939, Dean Simonton of the University of California, writing in the Journal of Personality and Social Psychology, compared Japan’s “extra cultural influx” (from immigration, travel abroad, etc.) in different eras with its output in such fields as medicine, philosophy, painting and literature. Dr. Simonton found a consistent correlation: the greater Japan’s openness, the greater its achievements.
It isn’t necessarily new ideas from the outside that directly drive innovation, Dr. Simonton argues. It’s simply their presence as a goad. Some people start to see the arbitrary nature of many of their own cultural habits and open their minds to new possibilities. Once you recognize that there is another way of doing X or thinking about Y, all sorts of new channels open to you, he says. “The awareness of cultural variety helps set the mind free,” he concludes.
History bears this out. In ancient Athens, foreigners known as metics (today we’d call them resident aliens) contributed mightily to the city-state’s brilliance. Renaissance Florence recruited the best and brightest from the crumbling Byzantine Empire. Even when the “extra cultural influx” arrives uninvited, as it did in India during the British Raj, creativity sometimes results. The intermingling of cultures sparked the “Bengal Renaissance” of the late 19th century.

For the full commentary, see:
ERIC WEINER. “The Secret of Immigrant Genius; Having your world turned upside down sparks creative thinking.” The Wall Street Journal (Sat., Jan. 16, 2016): C3.
(Note: ellipsis added.)
(Note: the online version of the commentary has the date Jan. 15, 2016.)

The above commentary by Weiner is related to his book, which is:
Weiner, Eric. The Geography of Genius: A Search for the World’s Most Creative Places from Ancient Athens to Silicon Valley. New York: Simon & Schuster, 2016.

The paper mentioned above as co-authored by Ritter, is:
Ritter, Simone M., Rodica Ioana Damian, Dean Keith Simonton, Rick B. van Baaren, Madelijn Strick, Jeroen Derks, and Ap Dijksterhuis. “Diversifying Experiences Enhance Cognitive Flexibility.” Journal of Experimental Social Psychology 48, no. 4 (July 2012): 961-64.

The paper mentioned above by Simonton on Japanese openness, is:
Simonton, Dean Keith. “Foreign Influence and National Achievement: The Impact of Open Milieus on Japanese Civilization.” Journal of Personality & Social Psychology 72, no. 1 (Jan. 1997): 86-94.

Startup Entry and Scaling Are Easier and Faster Due to Internet

(p. B1) The world might be a mess, but look on the bright side: Men’s shaving products are much better than they used to be.
. . .
The same forces that drove Dollar Shave’s rise are altering a wide variety of consumer product categories. Together, they add up to something huge — a new slate of companies that are exploring novel ways of making and marketing some of the most lucrative (p. B7) products we buy today. These firms have become so common that they have acquired a jargony label: the digitally native vertical brand.
These kinds of online brands aren’t new. Dollar Shave is five years old, and Warby Parker, the online eyewear company, began selling glasses over the web in 2010. But over the last few years there’s been a proliferation of such companies — into underwear, children’s clothing, cosmetics and more — and the Dollar Shave deal suggests their growing importance. These firms could become an emerging problem for consumer products conglomerates like Procter & Gamble, and they might also spell trouble for television, which relies heavily on brand advertising for its revenue.
. . .
“We think it’s a unique moment in history where you can create brands that can be scaled quickly thanks to technology, but you can still maintain a one-to-one connection that delivers an elevated level of customer experience,” said Philip Krim, chief executive of Casper, which sells mattresses online.
Mr. Krim and four friends started Casper two years ago after studying the traditional mattress industry. They discovered it was plagued by inefficiencies and annoying gimmicks. Customers had to trudge to a mattress store and awkwardly prostrate themselves on numerous surfaces before choosing one to use for a decade. There were too many choices and brands, and mattresses were expensive.
With Casper, you simply buy the mattress online and it’s shipped to you in a comically small box (the compressed foam expands into a full-sized mattress, like a magic trick). You have three months to try it out, and if you don’t like it, the company will come pick it up free.
Casper’s business model offers a break from the annoyance of offline mattress shopping. It also works out for the company. Casper advertises on social networks, on Google, podcasts and a variety of other places online; the ads are creative, convincing, targeted and cheap. By selling directly rather than through retail middlemen, the company also creates a connection with customers that allows it to test and develop new products — it now sells sheets and pillows, too.
After two years in business, Casper is on track to book $200 million in sales over the next year, but its success isn’t ensured. Precisely because the internet has lowered barriers to entry, Casper is facing a surge of new mattress start-ups like Helix Sleep, Tuft & Needle and Leesa, among others.

For the full commentary, see:
Manjoo, Farhad. “STATE OF THE ART; How Companies Like Dollar Shave Club Are Reshaping the Retail.” The New York Times (Thurs., JULY 28, 2016): B1 & B7.
(Note: ellipses added.)
(Note: the online version of the commentary has the date JULY 27, 2016, and has the title “STATE OF THE ART; How Companies Like Dollar Shave Club Are Reshaping the Retail.”)

Patent Holder of Piggly Wiggly Self-Service Method Sued Hoggly Woggly for Infringement

(p. A11) A typical U.S. supermarket carries 42,000 items: Grab a cart, stroll the aisles and help yourself to an extravagant assortment of goods. Today it’s hard to imagine buying groceries any other way. But self-service was a game-changer when Clarence Saunders opened the first Piggly Wiggly in Memphis, Tenn., 100 years ago this month.
Before then a shopper would hand his grocery list to a clerk, who would fetch the merchandise while the customer lingered up front. That might sound appealing in this era of big-box stores with no help in sight, but at busy times the wait could stretch uncomfortably long.
Saunders, a school dropout who worked as a flour and grain salesman, had observed firsthand the inefficiencies of the rural grocers he supplied. Many of these stores, he became convinced, failed for two reasons: credit losses from customers’ charge accounts (which were then customary), and labor costs from clerks and delivery boys.
. . .
Eager to protect his invention, Saunders applied for multiple patents. His first, for a “Self Serving Store,” was granted in 1917. It wasn’t long, though, before imitators like Handy Andy and Helpy Selfy made their debut. Saunders successfully sued an especially brash copycat, Hoggly Woggly, for infringement.
. . .
Saunders didn’t integrate circuits or sequence the human genome. An observer once noted that coming up with a self-service grocery was “as simple as looking out the window or scratching your ear.” Still, it was Saunders who gambled on the unconventional approach, doggedly spread self-service across the nation and shaped the grocery industry we know today.

For the full commentary, see:
JERRY CIANCIOLO. “The Man Who Invented the Grocery Store.” The Wall Street Journal (Thurs., Sept. 8, 2016): A11.
(Note: ellipses added.)
(Note: the online version of the commentary has the date Sept. 7, 2016.)

The only book I could find about Clarence Saunders, is:
Freeman, Mike. Clarence Saunders and the Founding of Piggly Wiggly: The Rise & Fall of a Memphis Maverick. Charleston, SC: The History Press, 2011.

Sutter Headed BHAG Team that Created Boeing 747

Collins and Porras in Built to Last recommend the pursuit of Big, Hairy, Audacious Goals (BHAGs). A prime example is the Boeing 747.

(p. B9) Joe Sutter, whose team of 4,500 engineers took just 29 months to design and build the first jumbo Boeing 747 jetliner, creating a gleaming late-20th-century airborne answer to the luxury ocean liner, died on Tuesday [August 30, 2016] in Bremerton, Wash.
. . .
In less time than Magellan spent circumnavigating the globe, Boeing engineers transformed Mr. Sutter’s napkin doodles into the humpbacked, wide-bodied behemoth passenger and cargo plane known as the 747. The plane would transform commercial aviation and shrink the world for millions of passengers by traveling faster and farther than other, conventional jetliners, without having to refuel.
. . .
“If ever a program seemed set up for failure, it was mine,” Mr. Sutter said in his 2006 autobiography, “747: Creating the World’s First Jumbo Jet and Other Adventures From a Life in Aviation,” written with Jay Spenser.
. . .
Adam Bruckner of the University of Washington’s department of aeronautics and astronautics later described the 747 as “one of the great engineering wonders of the world, like the pyramids of Egypt, the Eiffel Tower or the Panama Canal.”
. . .
“Aviators were more than mere mortals to us,” Mr. Sutter recalled in his autobiography. “They were a different breed, intrepid demigods in silk scarves, puttees and leather flying helmets with goggles.”

For the full obituary, see:
SAM ROBERTS. “Joe Sutter, 95, Is Dead; Guided the Development of Boeing’s 747 Jetliner.” The New York Times (Fri., Sept. 2, 2016): B9.
(Note: ellipses, and bracketed date, added.)
(Note: the online version of the obituary has the date Sept. 1, 2016, and has the title “Joe Sutter, Who Led an Army in Building Boeing’s Jumbo 747, Dies at 95.”)

Sutter’s autobiography, is:
Sutter, Joe, and Jay Spencer. 747: Creating the World’s First Jumbo Jet and Other Adventures from a Life in Aviation. New York: HarperCollins Publishers, 2006.

Airline Startups Stall in Bureaucratic Regulatory Headwinds

(p. B4) Mr. Vallas owns California Pacific Airlines, known as CP Air, his latest venture in a peripatetic business career that has included stints in areas as varied as land development and other aviation-related ventures.
CP Air has sat on a metaphorical runway for years — engines idling, ready for takeoff — while awaiting certification by the Federal Aviation Administration.
Mr. Vallas’s patience is wearing thin. After all, he is 95, and he regards the airline as a legacy, an exclamation point to a colorful life.
. . .
. . . then there was that matter with the F.A.A. The agency has repeatedly denied applications. A letter from 2013, one of several from the agency, advised him that the application’s contents were “incomplete, inaccurate and do not appear to have been reviewed for quality.”
. . .
The government shutdown in 2013 and the F.A.A.’s staff reduction did not help matters, the agency acknowledges.
. . .
The process of greenlighting a new airline has become more complicated since Mr. Vallas sold a previous venture, a charter service called Air Resorts, in 1997.
He acknowledges the vast increase in paperwork since that era but contends that the conditions for acceptance have been met.
Mr. Vallas’s airline is not the only one that has encountered bureaucratic headwinds. Other proposed airlines are in limbo for various reasons, including Baltia Airlines, created in 1989 to fly between New York City and Russia, which still lacks the authorities’ blessing.

For the full story, see:
MIKE TIERNEY. “ITINERARIES; A Start-Up Airline Idles on a California Runway.” The New York Times (Tues., APRIL 26, 2016): B4.
(Note: ellipses added.)
(Note: the online version of the story has the date APRIL 25, 2016, and has the title “ITINERARIES; Start-Up Airline Idles on a California Runway, Stymied by Bureaucracy.”)