Entrepreneurship – Page 157 – artdiamondblog.com

“A Passion for the Ambition of Walt”

Jon Favreau. Source of photo: online version of the NYT article quoted and cited below.

(p. 11) You’ve announced you won’t be doing the third “Iron Man” movie, in order to make “Magic Kingdom,” which is a Disney movie about a family that gets caught inside Disneyland. A movie produced by Disney about a Disney theme park? It sounds a little cynical.

That’s my Rubik’s Cube that I have to solve on this one. I found a writing partner in the novelist Michael Chabon, who shares a passion for the ambition of Walt.

For the full interview, see:
ANDREW GOLDMAN. “TALK; Jon Favreau, From Swingers to Aliens.” The New York Times Magazine (Sun., July 31, 2011): 11.
(Note: bold in original, indicating comments/questions by interviewer Andrew Goldman.)
(Note: the online version of the interview is dated July 29 (sic), 2011.)

Drug from David Sinclair’s Sirtris Start-Up Lengthens Life of Obese Mice

“An obese mouse given the drug SRT-1720, center, and one not given the drug, right.” Source of caption and photo: online version of the NYT article quoted and cited below.

(p. A1) Sustaining the flickering hope that human aging might somehow be decelerated, researchers have found they can substantially extend the average life span of obese mice with a specially designed drug.

The drug, SRT-1720, protects the mice from the usual diseases of obesity by reducing the amount of fat in the liver and increasing sensitivity to insulin. These and other positive health effects enable the obese mice to live 44 percent longer, on average, than obese mice that did not receive the drug, according to a team of researchers led by Rafael de Cabo, a gerontologist at the National Institute on Aging.
Drugs closely related to SRT-1720 are now undergoing clinical trials in humans.
The findings “demonstrate for the first time the feasibility of designing novel molecules that are safe and effective in promoting longevity and preventing multiple age-related diseases in mammals,” Dr. de Cabo and colleagues write in Thursday’s issue of the new journal Scientific Reports. Their conclusion supports claims that had been thrown in doubt by an earlier study that was critical of SRT-1720.
A drug that makes it cost-free to be obese may seem more a moral hazard than an incentive to good health. But the rationale behind the research is somewhat different: the researchers are trying to capture the benefits that allow mice on very low-calorie diets to live longer. It just so happens that such benefits are much easier to demonstrate in mice under physiological stress like obesity than in normal mice.
. . .
. . . , a small pharmaceutical concern in Cambridge, Mass., designed SRT-1720 and a set of similar drugs to mimic resveratrol — the trace ingredient of red wine that is thought to activate protective proteins called sirtuins.
The sirtuins help bring about the 30 percent extension of life span enjoyed by mice and rats that are kept on very low-calorie diets.

For the full story, see:
NICHOLAS WADE. “Longer Lives for Obese Mice, With Hope for Humans of All Sizes.” The New York Times (Fri., August 19, 2011): A1 & A3.
(Note: ellipses added.)
(Note: the online version of the story was dated August 18, 2011.)

Entrepreneur Frederic Tudor Spent Family Fortune to Make Ice Obsession a Business Success

(p. 71) Lake ice was a marvelous product. It created itself at no cost to the producer, was clean, renewable, and infinite in supply. The only drawbacks were that there was no infrastructure to produce and store it, and no market to sell it to. In order to make the ice industry exist, it was necessary to work out ways to cut and lift ice on a large scale, build storehouses, secure trading rights, and engage a reliable chain of shippers and agents (p. 72) and, above all, create a demand for ice in places where ice had seldom or never been seen, and was most assuredly not something anyone was predisposed to pay for. The man who did all this was a Bostonian of good birth and challenging disposition named Frederic Tudor. Making ice a commercial proposition became his overweening obsession.
The notion of shipping ice from New England to distant ports was considered completely mad – ‘the vagary of a disordered brain’, in the words of one of his contemporaries. The first shipment of ice to Britain so puzzled customs officials as to how to classify it that all 300 tons of it melted away before it could be moved off the docks. Shipowners were highly reluctant to accept it as cargo. They didn’t relish the humiliation of arriving in a port with a holdful of useless water, but they were also wary of the very real danger of tons of shifting ice and sloshing melt-water making their ships unstable. These were men, after all, whose nautical instincts were based entirely on the idea of keeping water outside the ship, so they were loath to take on such an eccentric risk when there wasn’t even a certain market at the end of it all.
Tudor was a strange and difficult man – ‘imperious, vain, contemptuous of competitors and implacable to enemies’, in the estimation of Daniel J. Boorstin. He alienated all his closest friends and betrayed the trust of colleagues, almost as if that were his life’s ambition. Nearly all the technological innovations that made the ice trade possible were actually the work of his retiring, compliant, long-suffering associate Nathaniel Wyeth. It cost Tudor years of frustrated endeavour, and all of his family fortune, to get the ice business up and running, but gradually it caught on and eventually it made him and many others rich. For several decades, ice was America’s second biggest crop, measured by weight. If securely insulated, ice could last a surprisingly long while. It could even survive the 16,000-mile, 130-day trip from Boston to Bombay – or at least about two-thirds of it could, enough to make the long trip profitable. Ice went to the furthest corners of South America and from New England to California via Cape Horn. Sawdust, a product previously without any value at all, proved to be an excellent insulator, providing useful extra income for Maine lumber mills.

Source:
Bryson, Bill. At Home: A Short History of Private Life. New York: Doubleday, 2010.

Banker Rhodes Saved Murdoch from Bankruptcy

Source of book image: online version of the WSJ review quoted and cited below.

(p. A13) In “Banker to the World,” Mr. Rhodes tries to distil the “leadership lessons” he has learned from his remarkable career on the “front lines of global finance.”
. . .
. . . , Mr. Rhodes does succeed in hammering home three lessons that we need to take to heart if we are to have any chance of navigating the troubled waters that lie ahead. The first is that there is no substitute for the human touch: For all banking’s bells and whistles today, it is much the same business it was in Florentine Italy. Consider one of Mr. Rhodes’s greatest exploits: coordinating the rescue of Rupert Murdoch’s News Corp. from bankruptcy in 1990. Mr. Rhodes was worried that the collapse of Mr. Murdoch’s heavily-indebted media empire would tip the world economy back into recession. But he decided to bet on Mr. Murdoch only after the two had sat down for a three-hour heart-to-heart over dinner in New York.

For the full review, see:
ADRIAN WOOLDRIDGE. “BOOKSHELF; A Conspiracy of Hunches; A rare master of both the financial and political realms reports on what a half-century of experience taught him.” The Wall Street Journal (Weds., June 8, 2011): A15.
(Note: ellipsis added.)
(Note: online version of article had the date JULY 13, 2011.)

Book being reviewed:
Rhodes, William R. Banker to the World: Leadership Lessons from the Front Lines of Global Finance. New York: McGraw-Hill, 2011.

Capitalism Was Not Inevitable

Source of book image:
http://ecx.images-amazon.com/images/I/519PfT2oUtL.jpg

(p. 15) What is the nature of capitalism? For Joseph Schumpeter, the Austrian-born economist whose writings have acquired a special relevance in the past year or two, this most modern of economic systems “incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one.” Capitalism, Schumpeter proclaimed, cannot stand still; it is a system driven by waves of entrepreneurial innovation, or what he memorably described as a “perennial gale of creative destruction.”

Schumpeter died in 1950, but his ghost looms large over Joyce Appleby’s splendid new account of the “relentless revolution” unleashed by capitalism from the 16th century onward. Appleby, a distinguished historian who has dedicated her career to studying the origins of capitalism in the Anglo-American world, here broadens her scope to take in the global history of capitalism in all its creative — and destructive — glory.
She begins “The Relentless Revolution” by noting that the rise of the economic system we call capitalism was in many ways improbable. It was, she rightly observes, “a startling departure from the norms that had prevailed for 4,000 years,” signaling the arrival of a new mentality, one that permitted private investors to pursue profits at the expense of older values and customs.
In viewing capitalism as an extension of a culture unique to a particular time and place, Appleby is understandably contemptuous of those who posit, in the spirit of Adam Smith, that capitalism was a natural outgrowth of human nature. She is equally scornful of those who believe that its emergence was in any way inevitable or inexorable.
. . .
. . . , she captures how a new generation of now forgotten economic writers active long before Adam Smith built a case “that the elements in any economy were negotiable and fluid, the exact opposite of the stasis so long desired.” This was a revolution of the mind, not machines, and it ushered in profound changes in how people viewed everything from usury to joint stock companies. As she bluntly concludes, “there can be no capitalism . . . without a culture of capitalism.”
. . .
The individual entrepreneur is at the center of her analysis, and her book offers thumbnail sketches of British innovators from James Watt to Josiah Wedgwood. She continues on to the United States and Germany, giving readers a whirlwind tour of the lives and achievements of a host of men whom she calls “industrial leviathans” — Vanderbilt, Rockefeller and Carnegie in the United States; Thyssen, Siemens and Zeiss in Germany. All created new industries while destroying old ones.

For the full review, see:
STEPHEN MIHM. “Capitalist Chameleon.” The New York Times Book Review (Sun., January 24, 2010): 15.
(Note: ellipses added except for the one in the “there can be no capitalism . . . without a culture of capitalism” quote.)
(Note: the online version of the review is dated January 22, 2010.)

Book under review:
Appleby, Joyce. The Relentless Revolution: A History of Capitalism. New York: W. W. Norton & Company, 2010.

Zuckerberg Has Most Followers on Google+

“The profile page of Mark Zuckerberg on Google+, a service created to compete with Facebook.” Source of caption and image: online version of the NYT article quoted and cited below.

(p. B1) Any guesses as to who is the most popular person on Google+, the company’s new social networking service? Ashton Kutcher, perhaps? Or Lady Gaga?

Actually, that title is currently held by Mark Zuckerberg, the founder and chief executive of Facebook — the very service that Google+ was meant to challenge.
As of Tuesday evening, Mr. Zuckerberg had nearly 35,000 people following his updates on the service, more than anyone else in a broad survey of Google+ profiles by Social Statistics, an outside service. His fan base exceeds that of Larry Page, one of the founders of Google and its recently appointed chief executive, who had only 24,000 people following him.
Google+ is less than a week old and is still not yet widely available to the public. But access to the service, which lets people share photos, links, status updates and video chats with groups of friends, is already in high demand among early adopters who are eager to play with its (p. B8) features. That includes Mr. Zuckerberg, who apparently signed up to keep tabs on his new adversary.

For the full story, see:
JENNA WORTHAM. “Zuckerberg Finds Fans on Google+.” The New York Times (Weds., July 5, 2011): B1 & B8.
(Note: the online version of the story is dated July 6, 2011.)

Technology as an Enabler of Free Speech

“Volunteers have built a wireless Internet around Jalalabad, Afghanistan, from off-the-shelf electronics and ordinary materials.” Source of caption and photo: online version of the NYT article quoted and cited below.

The main point of the passages quoted below is to illustrate how, with the right technology, we can dance around tyrants in order to enable human freedom.
(But as a minor aside, note in the large, top-of-front-page photo above, that Apple once again is visibly the instrument of human betterment—somewhere, before turning to his next challenge, one imagines a fleeting smile on the face of entrepreneur Steve Jobs.)

(p. 1) The Obama administration is leading a global effort to deploy “shadow” Internet and mobile phone systems that dissidents can use to undermine repressive governments that seek to silence them by censoring or shutting down telecommunications networks.

The effort includes secretive projects to create independent cellphone networks inside foreign countries, as well as one operation out of a spy novel in a fifth-floor shop on L Street in Washington, where a group of young entrepreneurs who look as if they could be in a garage band are fitting deceptively innocent-looking hardware into a prototype “Internet in a suitcase.”
Financed with a $2 million State Department grant, the suitcase could be secreted across a border and quickly set up to allow wireless communication over a wide area with a link to the global Internet.

For the full story, see:
JAMES GLANZ and JOHN MARKOFF. “U.S. Underwrites Internet Detour Around Censors.” The New York Times, First Section (Sun., June 12, 2011): 1 & 8.

Source of graphic: online version of the NYT article quoted and cited above.

Bricks-and-Mortar Restaurants Use Police (Instead of Better Food) to Beat Food Trucks

“Kim Ima and Kenny Lao parked their food trucks on Front Street in Dumbo.” Source of caption and photo: online version of the NYT article quoted and cited below.

(p. D4) FOOD trucks, those rolling symbols of New York City’s infatuation with haute casual food, are suddenly being chased from Midtown Manhattan. In the last 10 days, the Treats Truck, which has sold cookies and brownies for four years during lunchtime at West 45th Street near Avenue of the Americas, has been told by police officers that it is no longer welcome there, nor at its late-afternoon 38th Street and Fifth Avenue location. The Rickshaw Dumpling truck, a presence for three years at West 45th Street near the Treats Truck, has been shooed away as well.

The police “have told us they no longer want food trucks in Midtown,” said Kim Ima, the owner of the Treats Truck, a pioneer of the city’s new-wave food-truck movement, who began cultivating customers on West 45th Street in 2007.
. . .
Mr. Lao and other food-truck operators said they suspect that the police are responding to complaints by brick-and-mortar businesses that resent competition. Such was the case last year, when store merchants on the Upper East Side complained about Patty’s Taco Truck, which sold tortas, tacos de lengua and cemitas on Lexington Avenue. The truck was towed several times and the operator arrested, prompting the Street Vendor Project, an advocate for vendors based at the Urban Justice Center, to file the lawsuit that resulted in Judge Wright’s ruling, which said food is merchandise that can be regulated.

For the full story, see:
GLENN COLLINS. “Food Trucks Shooed From Midtown.” The New York Times (Weds., June 29, 2011): D4.
(Note: ellipsis added.)
(Note: the online version of the story is dated June 28, 2011.)

Entrepreneurs Stanley and Wood Apply Econometrics to Business Data Analysis

“Grant Stanley, left, and Tadd Wood founded Contemporary Analysis, which uses data to solve sales, marketing, customer retention, employee management and planning problems.” Source of caption and photo: online version of the Omaha World-Herald article quoted and cited below.

The entrepreneurs celebrated in the article quoted below are former students of mine. Grant Stanley was in my Economics of Entrepreneurship and Economics of Technology seminars and Tadd Wood was in my Honors Colloquium on Creative Destruction. I wish them well.

(p. 1D) A half-dozen 20-something math, economics and neuroscience whizzes form Contemporary Analysis, an Omaha-based firm that is making predictive analytics available to a wider array of firms faster and for less money.

The team, which has a penchant for roaming around its Old Market office shoeless, is led by Grant Stanley, 23, the company’s chief executive. He founded the firm in March 2008 with Tadd Wood, 23, who is now a senior analyst.
For nearly three years, Contemporary Analysis has built a customer base mostly of companies and businesses with lean budgets, meaning they didn’t have a lot of cash to spend on analytics products. Traditionally, analytics firms lock clients into expensive, long-term contracts.
Not Contemporary Analysis.
Their products are designed to yield results in about a month, and average contracts are about $5,000, Stanley said. The company’s analytics tools use data to solve sales, marketing, customer retention, employee management and planning problems.
. . .
(p. 2D) A . . . report from the IBM Institute for Business Value found that top-performing organizations use analytics five times more than lower performers.
Of the 3,000 executives, managers and analysts polled for the IBM report, those who came from high-performing companies said they used analytics to guide future strategies 45 percent of the time and day-to-day operations 53 percent of the time. By comparison, lower-performing firms used analytics 20 percent when addressing future business matters and 27 percent on a daily basis.

For the full story, see:
Ross Boettcher. “Omaha Whizzes Bring Analytics to More Companies.” Omaha World-Herald (Thursday, July 14, 2011): 1D & 2D.
(Note: ellipses added.)
(Note: the online version of the article has the title “Making analytics affordable.”)

Zuckerberg: ”Filmmakers Can’t Get Their Head around the Idea that Someone Might Build Something because They Like Building Things”

Marc Andreessen. Source of photo: online version of the NYT article quoted and cited below.

(p. 13) After hearing a story about Foursquare’s co-founder, Dennis Crowley, walking into a press event in athletic wear and eating a banana, I developed a theory that bubbles might be predicted by fashion: when tech founders can’t be bothered to appear businesslike, the power has shifted too much in their favor.

Believe it or not, this goes deep into the interior mentality of the engineer, which is very truth-oriented. When you’re dealing with machines or anything that you build, it either works or it doesn’t, no matter how good of a salesman you are. So engineers not only don’t care about the surface appearance, but they view attempts to kind of be fake on the surface as fundamentally dishonest.

That reminds me of Mark Zuckerberg’s criticism of ”The Social Network.” He said that ”filmmakers can’t get their head around the idea that someone might build something because they like building things.”

Aaron Sorkin was completely unable to understand the actual psychology of Mark or of Facebook. He can’t conceive of a world where social status or getting laid or, for that matter, doing drugs, is not the most important thing.

For the full interview, see:
ANDREW GOLDMAN. “TALK; Bubble? What Bubble? Marc Andreessen, one of Silicon Valley’s biggest venture capitalists, has no fear.” The New York Times Magazine (Sun., July 10, 2011): 13.
(Note: bold in original, indicating comments/questions by interviewer Andrew Goldman.)
(Note: the online version of the interview is dated July 7, 2011 (sic).)

“If We Can’t Win on Quality, We Shouldn’t Win at All”

Source of book image: online version of the WSJ review quoted and cited below.

(p. A13) At the tail end of the 1990s dot-com boom, Douglas Edwards took a gamble: He left his marketing job at an old-media company, taking a $25,000 salary cut to start work at a small, little-known Internet concern in its second year of operation. That his new employer was losing money and burning through venture capital went without saying. But unlike the footloose 20-somethings who usually populated Silicon Valley start-ups, Mr. Edwards had little margin to bet wrong; he was 41, with a mortgage, three children and a worried wife. He hoped he could get his old job back if the company ran out of money.

. . .
Mr. Edwards came to his job as a subscriber to the conventional wisdom. In an early presentation to cofounder Larry Page and others, Mr. Edwards unwisely declared that only marketing, not technology, could set Google apart. “In a world where all search engines are equal,” he asserted, “we’ll need to rely on branding to differentiate us from our competitors.”
The room became quiet. Then Mr. Page spoke up. “If we can’t win on quality,” he said, “we shouldn’t win at all.”

For the full review, see:
DAVID A. PRICE. “BOOKSHELF; How Google Got Going; Branding, shmanding, a marketer was told. ‘If we can’t win on quality,’ Larry Page said, ‘we shouldn’t win at all.'” The Wall Street Journal (Tues., July 12, 2011): A13.
(Note: ellipsis added.)

Book being reviewed:
Edwards, Douglas. I’m Feeling Lucky: The Confessions of Google Employee Number 59. New York: Houghton Mifflin Harcourt Publishing Co., 2011.