Tag: technology

How Arab American Tech Entrepreneurs Can Help Arab Spring Countries

Arab-American technology entrepreneurs have a special role to play in helping Arab Spring nations find their way back to stability and development, according to David Hamod, CEO of the National U.S.-Arab Chamber of Commerce.

Addressing an audience at the Plug and Play Tech Center, a well-known Silicon Valley incubator run by Iranian-born Saeed Amidi, Hamod said such members of the Arab Diaspora could provide the experience and skills needed to jump-start innovation in Arab economies. “For the Arab world to make the transition from hydrocarbon-based economies to knowledge-based economies, the next big thing, in a sense, is innovation,” Hamod noted. “Innovation, hand-in-hand with entrepreneurship, will create those productive jobs that are so vital to growth in the Arab world.

“There is a special role to be played in this process by Diaspora Arabs, who have made it in Silicon Valley, who have learned the lessons of Silicon Valley and who are uniquely situated to share those lessons with the Arab world,” he added.

Hamod spoke at a global forum examining ways to harness the economic potential of the Middle East and North Africa (MENA) region in the aftermath of the Arab Spring revolution. At a time of uncertainty as well as promise, Arab-Americans are looking inward to discover their role in helping usher in democracy and economic stability in their traditional homelands. He told forum attendees that technology alone is only part of the equation. “If the Arab Spring at its heart is about dignity, respect, having a voice, reducing economic disparities and being able to put bread on the table for one’s family, then there’s no time to lose in promoting innovation through entrepreneurial ecosystems,” he said.

Throughout the day, some of Silicon Valley’s leading Arab-American technologists reiterated Hamod’s applause-inducing speech by creating an atmosphere that resembled a high school pep rally. There were discussions about cultivating the start-up ecosystem in the Gulf region and perhaps most important, getting access to venture capital. It is that final hurdle that deserves a watchful eye in the coming months as the grassroots revolutions turn to the formation of new governance, observers said. Political resolution might encourage the citizenry to return its attention to the daily duty of work. Hamod predicted that there will be no return to the status quo, but where that leads the region is anyone’s guess.

The forum was held on Martin Luther King Jr. Day, and Hamod found a parallel between King’s fight for freedom in the 1960s and the protests in the Arab world that have broken the stranglehold of entrenched regimes. He quoted from a portion of King’s famous 1957 speech delivered at the Prayer Pilgrimage for Freedom in Washington D.C.: “Sometimes it gets hard, but it is always difficult to get out of Egypt. The Red Sea always stands before you in discouraging dimensions. And even after you cross the Red Sea, you have to move through a wilderness with prodigious hilltops of evil, gigantic mountains of opposition. But I say to you, keep moving. Let nothing slow you up. Move on with dignity and honor and respectability.”

King’s speech was meant for an African-American constituency. But it sounds less ethereal to modern Arabs, especially those who risked their lives in Tahrir Square protests one year ago, and for those who continue to grapple with how to move forward after creating unprecedented change.

See also:

From Iran to Silicon Valley, a Serial Entrepreneur Leaves His Mark

Aramex’s Fadi Ghandour: Unrest Demonstrates Why It Is Important for Arab Entrepreneurs to Build New Ventures

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Defining Innovation — and Converting Words to Action

Innovation is a tough word to define, but most would say they know it when they see it. At the recent Wharton Women in Business conference, participants in the panel, “Driving Innovation through Careers in Technology,” were asked to discuss their personal definitions of the term and give a concrete example from their own experiences.

Here is a look at what they had to say:

Julie Anixter, CIO MagaDesign, a visual information mapping and communications firm.

Her definition: “My definition until about two years ago was doing something game-changing. But with the financial free-fall that the world is in today, my new definition is saving our great companies, saving ourselves and creating our futures by doing something really game-changing.”

An example: “The last great project that we did was with the CIO of the Air Force, who has lost a lot of budget and influence with the changes at the Department of Defense, but nonetheless needs to finance his strategy for an integrated Air Force. We worked with him to do a series of 18 maps where we got leaders in the room to co-create a visual strategy for the next couple of years for the Air Force.”

Linda C. Brigance, vice president, IT customs clearance and logistics, FedEx Services and chief information officer, FedEx Trade Networks.

Her definition: “Innovation is about people. It’s about putting an idea into motion.”

An example: “I always go back to an old example. FedEx.com was the first to put [package] tracking onto the web. At that point, the web was just a repository of information. This wasn’t an idea that came from the board room; we had a guy who just did it…. A more recent example is a GPS device for the health industry and a web portal collaboration that allows tracking showing if a package has been opened and the variance in [package temperature] because a lot of health care products are very sensitive and have to stay within a certain range of temperature.”

Brooke L. Eplee, director of strategy and corporate development for Sony Music Entertainment’s global digital business division.

Her definition: We live in such a fragmented world these days, especially in a place like the music industry, so a lot of good ideas out there haven’t been brought together. The dots haven’t been connected, and if you have someone who is thinking about how to connect the dots, often there are ready sources of information just waiting to be tapped.”

An example: “Vevo is a property that we launched in December 2009. The music industry had never monetized music videos; they were thought of as a promotional tool…. What we have done [with Vevo] is … built [a portal] where users could watch videos for free…. That way, we can curate the experience that people have on the website and sell ads against that. When the experience is a premium experience, premium-tier advertisers are more willing to put advertising behind it.”

Stephanie Ferguson, GM of Windows Phone, Microsoft.

Her definition: “At Microsoft, we think of [innovation] in terms of inventions and reinventions that are brought to the market … and actually transform the experience for the customer.”

An example: “Kinect is a sensor we built for the Xbox 360…. For the person standing in front of it, the Kinect builds a skeletal replica of you and uses software to process what the skeleton is doing and relates it to the application you’re using. There’s also voice recognition, so with those two natural user interfaces at work, you don’t need to use a controller anymore…. From a business standpoint, it is a huge opportunity to … break out of our traditional 17-27 year-old male customer base for the Xbox and really broaden the addressable market. It also opened up possibilities in terms of what could be done in entertainment….

Deborah Nelson, chief of staff, global sales and enterprise marketing, Hewlett-Packard.

Her definition: “[At HP,] we think about innovation as translating ideas into a meaningful impact for our customers. When we talk about innovation at HP, we mean innovation with a purpose.”

An example: “Counterfeit drugs are not as much an issue in the United States, but when you go into third-world countries, it’s a real problem. We don’t know much about counterfeit drugs, but we know a lot about counterfeit ink. We put together a partnership, and now drugs in Africa come with an area that you scratch off and see a number. You can send a free SMS text that goes to a database, which can tell you if the drug is actually what it should be.”

Caroline Strzalka, business development director, Sesame Workshop.

Her definition: “[At Sesame Workshop,] we define innovation as taking risks to make people’s lives better. It could be doing something that hasn’t really been done before or finding a workaround to a problem that currently exists.”

An example: “We’re working with [Microsoft’s Kinect technology] on Once upon a Monster, a new game coming out. We work with preschoolers, and for years, we’ve known that they don’t have the manual dexterity to handle normal controllers…. Sesame’s all about taking devices created predominantly for entertainment and figuring out how to make them educational.”

What does innovation mean to you? How are you seeing that definition play out at your firm?

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Five Ways to Ride the Wireless Wave

Armed with powerful mobile devices, consumers and employees have become the force behind a wireless wave of change. Whether they are seeking discounted prices or looking to coordinate a sales campaign, these mobile end-users are growing impatient with companies that are still trying to control behavior and the sharing of information. Enterprises that fail to learn how to give up some of that control and innovate to meet the evolving needs of their constituents could soon find themselves in the back of the pack. There are five ways to ride this Wireless Wave, according to Todd Hewlin, managing director of TCG Advisors, a boutique consulting firm in Silicon Valley, and Scott Snyder, a senior fellow at Wharton, author of The New World of Wireless: How to Compete in the 4G Revolution and president and chief strategy officer of Mobiquity, a mobile strategy and applications development firm.

In their opinion piece published in Knowledge@Wharton, Hewlin and Snyder point out that the mobile phone was one of the key weapons of battle during the Arab Spring. “Fueled by the rapid proliferation of the mobile and social web, the Arab Spring demonstrates the collective power of technology-enabled citizens,” they write. “While the events of the Arab Spring are still making headlines, another less-publicized technology-enabled revolution is unfolding that also pits connected masses of people against large organizations trying to control them. This revolution is occurring in the business world, and the end-users who are rising up are consumers and employees. These end-users, equipped with powerful mobile devices, are enabling a new wave of disruptive innovation that is transforming the companies they buy from and work for.”

Hewlin and Snyder argue that if you “do not give your customers a way to easily compare and search for discounts on your products, they will use Red Laser or Amazon Price Check. If you do not give your sales team better ways to share knowledge and coordinate efforts, they will useFacebookor Flipboard. Fail to give patients a better way to manage their chronic disease, and they will use Welldoc or Patientslikeme. Mobile technology is creating both an expectation and impatience in users that never existed before. Immediacy is not just desirable; it’s fundamental to the mobile experience. If you fail to deliver on that expectation, impatience will grow – and you will risk losing the business of customers and the loyalty of employees.”   

They quote former Procter & Gamble CEO A. G. Lafley, who once said: “We have to strike the right balance between being in touch and being in control. The irony is the more in control we are, the more out of touch we become.”

To read the complete article, including a description of the five ways that companies can ride the wireless wave, go to: http://knowledge.wharton.upenn.edu/article.cfm?articleid=2860

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Private Equity Pushes East

Everybody it seems — from banks to corporations involved in consumer or business-to-business goods and services – is looking toward key emerging markets and Asia as the strongest areas of economic growth in coming years. You can add private equity firms to that list, too.

For these specialized investors, the booming economies in Asia and the developing world offer attractive investment opportunities – from health care to wireless technology, says Glenn Hutchins, co-founder and co-CEO of Silver Lake, a global private equity investment firm. He made the comments at the 2011 Wharton Private Equity and Venture Capital Conference, where he also added technology as a more general category for private equity investors to target.

“If you can position yourself in a growing part of the U.S. and the global economy, there is a very bright future ahead of you,” said Hutchins, whose firm has $14 billion in assets and offices in New York, California, Europe and Asia.

Despite that bright outlook, the economic drag of the financial crisis continues to make the recovery far weaker than those that have typically followed downturns in the U.S. and other developed parts of the world, Hutchins said. “Usually, the deeper down you go the steeper you come back.” But this time, the “bounce back is anemic by contrast.” Hutchins is a former adviser to President Clinton on health care and economic policy. He also is chairman of SunGard Corp., a software and technology services provider, and a director of companies including telecommunications provider MCI and TD Ameritrade Holding Corp.

The notion that recessions caused by a financial crisis tend to be much deeper and longer than the average recession has been documented going back a couple of hundred years by Carmen M. Reinhart and Kenneth Rogoff in their book, This Time Is Different: Eight Centuries of Financial Folly.

Looking five years ahead, Hutchins predicted the global economy will expand through 2015, with most of the growth coming in Asia and other parts of the developing world. Silver Lake is gearing up for this, he said. Employees are told, “You may not like the food. You may not like the jet lag. You may not like missing your kid’s soccer game, but you’ve got to go” to the emerging markets, particularly Asia. “Not only that, but we’re going to move you there.”

To read the full Knowledge@Wharton article about Hutchins’ views on the future of private equity and the global economy, see this article from the soon-to-be published, 2011 Wharton Private Equity Review: Battling Headwinds: Private Equity’s ‘Bright Future’ in Technology and Developing Economies.

And here is Knowledge@Wharton’s recent article on the economic outlook: The Economy: When Will Happy Days Be Here Again?

 

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Innovation and Climate Change: Will the Two Ever Meet?

What have scholars and business leaders learned about creating the right environment for technology to evolve? According to several speakers at the 11th Wharton Technology Conference, the last few decades have taught us plenty. But Rebecca Henderson, a professor of environmental management at Harvard Business School, challenged industry leaders to stop looking backward and tackle an important piece of technological innovation in real time. The pressing need: addressing climate change.

During a panel discussion titled, “Technological Change and Industry Evolution,” Henderson noted that the basics of developing a system to dramatically reduce pollution from greenhouse gases — finding the right price, managing the necessary research and development, and assembling an “eco-system” where all this innovation can best take place — are highly doable. The problem, she said, is that “the energy incumbents sit on top of this system, politically and structurally. We need to find a way to get through them.”

Addressing her fellow panelists, Henderson added: “We have a place to stand, to speak on this debate. We have expertise; we have understanding. This innovation theme plays extremely well with businesses and with firms…. We have a duty to be engaged.”

Henderson said that her main academic obsession in recent years has been understanding how the accumulated knowledge about entrepreneurship can be applied to the groups of scientists and others seeking to discover and then implement solutions to manmade climate change.

“Some of the models suggest that what could happen is very nasty,” she noted, referring to data that show greenhouse gases from human activity warming the planet at a rapid rate. That could lead to rising sea levels, more frequent natural disasters and lowered food production. The problem is a classic case of risk management, except that the threats are not concentrated within a company but spread across society. “But if we really get moving, I bet we can de-carbonize the economy for much less than people say.”

That is much easier said than done, she acknowledged – in part because there are large legacy companies in fields such as oil and other fossil fuels that have powerful economic incentives to thwart any radical changes in the way that energy is produced and consumed.  The way around that, she said, involves building on the knowledge that experts like those at the Wharton conference have developed about innovation. The challenges and opportunities for groundbreaking research in global warming mitigation are enormous because so many sectors are involved – not just energy but transportation, real estate and agriculture, among others, Henderson noted. “These are amazing opportunities to study really interesting stuff.”

“Relational contracts” between employees and their firms could also play a significant role in promoting better entrepreneurship on climate change, Henderson said. Traditional business theory — especially within the high-tech industry that developed at the end of the 20th century — says that companies agree to take care of the financial (and other) needs of key employees in return for their commitment to groundbreaking work. But Henderson believes it’s much more complicated than that.

“Economics is still dominated by people who fundamentally believe that … incentives are just a matter of getting the contract right around the qualitative metrics…. But this is a huge issue — it’s one of the reasons why we had the financial crisis.” A focus on short-term incentives can bring negative consequences, she said. Innovation in the technology world is more likely to come from employees who share a stronger bond and a personal commitment to the long-term goals of the company.  Knowledge about how these relational contracts really work could help encourage the innovation needed to tackle global warming.

What’s lacking, she added, is a better academic understanding of where this critical trust and commitment to long-term goals comes from, and how it can be better fostered. “We need to find ways to motivate [employees for the] public good, or at least a longer-term type of view. This focus on short-term, instantaneous optimization is really destructive when we look at some of these big problems,” such as climate change. “And I think it’s really destructive inside firms.”

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Darwin and the iPad

For roughly three decades, a growing band of academics, economists and technology experts have focused intensely on this question: Why do some high-tech innovations succeed, while others fail?

According to panelists at the 11th Wharton Technology Conference, a growing body of research can increasingly explain why a once cutting-edge technology company like Sun Microsystems eventually imploded, and why an invention like Apple’s iPad became an industry leader when the inner workings of the device differs little from what other firms have developed.

Sidney Winter, an emeritus professor of management at Wharton, said that technology changes during the last 30 years have strengthened his belief that the social environment plays a critical role in technological “evolution” — that innovation does not take place in a vacuum. “There has to be a real context,” Winter told the conference participants. “There has to be something happening in the world that makes the industry appear at roughly the time it appears. That fact then colors what happens in the industry’s very important early stages of the development.”

In order for technology industries to evolve, the firms themselves must also participate in creating the right environment for innovations to take hold. “The history of technological evolution isn’t merely the history of patented or non-patented advances,” said INSEAD professor of entrepreneurship Philip Anderson, another conference panelist. “What you have to do, if you really want to create value, is to hook up the technology with complementary assets and customers — it’s not merely coming up with a better technology that works.”

Science-based breakthroughs have proven the quickest and most effective way to carry out Austrian-American economist Joseph Schumpeter’s broader theory of “creative destruction” — bringing together new ideas, organizations and consumers to destroy old ways of doing business while creating more viable ones — Anderson said. But he added that Schumpeter and some of his followers are wrong to focus solely on the firm as the key building block for change, when more recent evidence suggests that wider ecosystems of technological development are at the root of entrepreneurial progress.

“Where do routines come from that make it possible for somebody to come up with a good mini-computer?” Anderson asked. The iPad is a huge commercial success, he said, not because its technology is particularly radical — “as far as I can see, it’s a big phone” — but because Apple created a home for innovative applications, or apps, that many customers would probably never buy otherwise. He cited in particular one iPad app that he can hold up against the evening sky and use to identify constellations — a product he loves but would not likely have purchased as a separate, stand-alone item.

He also pointed out that there is a certain irony in the fact that Facebook’s Silicon Valley headquarters was the home of a recently bought-out 1990s technology leader, Sun Microsystems. “The interesting thing is that while Sun is no longer an organizational structure within which all the brilliant people who worked there can create the kind of value that they once did, the disappearance of [it] has essentially spewed all kinds of genetic material into the environment that now works in different places and can create amazing results.” During the dot-com boom of the late 1990s, he added, some of the greatest advances in reaching customers through e-commerce came out of firms that failed within a few years. Those advances were eventually picked up by larger and more prosperous companies.

The question of how ideas evolve and become commercialized transcends mere academics, Anderson said. Understanding how these ecosystems of innovation work can make the world a better place more quickly, “but in this networked world, maybe the most interesting question is: How do talented people find a way to keep moving in these different structures and different places at different times and find a way to express [their ideas] to the world?”

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