David Akinin's Blog

Monday, June 11, 2012

If you want to build a boat!

"Si tu veux construire un bateau, ne rassemble pas tes hommes et femmes pour leur donner des ordres, pour expliquer chaque détail, pour leur dire où trouver chaque chose... Si tu veux construire un bateau, fais naître dans le cœur de tes hommes et femmes le désir de la mer." "If you want to build a boat, do not gather your men and women to give orders, to explain every detail, to tell them where to find everything ... If you want to build a ship, do arise in the heart of your men and women the desire of the sea "

Thursday, May 24, 2012

Lessons from Joe Mansueto, Founder and CEO of Morningstar

Tonight, I had the pleasure of meeting Joe Mansueto, the Founder, Chairman and CEO of Morningstar, Inc. at the closing ceremony of the Chicago Careers in Business Program. The evening started with a cocktail reception, and followed with a delightful dinner. His talk was preceded by Keith Dipple, Director of the Business Program; John Boyer, Dean of the College of the University of Chicago, and Sunil Kumar, Dean of Booth School of Business, and two of our fellow students.

Mansueto is a graduate of the College and Graduate School of Business of the University of Chicago. An approachable and charismatic philanthropist, Mansueto laughed when I suggested that a few friends and I were starting "Eveningstar", a late night version of his company.

In this post I want to share the 5 lessons he left us with towards the end of his speech:

1- Be a contrarian. Look to where other aren't looking. Rousseau has a famous saying, "take the course to contrary to custom, and you will always do well". Mansueto sees great value in a person who doesn't follow the crowd when it comes to interests, career choices and research. After all, that is partly how he made his money.

2- Finish what you start. Plan meticulously and don't overreach. Napoleon once said: "If you start to take Vienna... Take Vienna". I guess what Mansueto was trying to say is, at some point commit and go really deep.

3- Work with people you admire. Find a good environment, and a "good business" (a Warren word). Mansueto describes this good business with a nice metaphor, insisting on the importance of its brand. Find a castle that has a moat (ditch around a castle), and from there learn to build your personal moat. Topping it he quoted Lynch "You want to invest in a business that an old idiot could run, because odds are, someday, an old idiot will run it".

4- Be patient. Take your time. Spend it with one, go deep and enjoy it.

5- Think independently. Analyze your sources independently.

Wednesday, May 16, 2012

Lessons learned by Max Levchin, founder of PayPal

Max Levchin is the Founder of PayPal. I met him in California a few weeks back...

This is my rough note transcript of what he had to say. Enjoy!

To me entrepreneurship is about running a company.

I left PayPal to go cycling, and my fiend quit Goldman Sachs to solve a hydration problem, one we both faced when cycling, with an innovative water bottle... He flies to the Tour de France and runs dressed as a bottle. Crazy marketing.

In space no one can hear you scream. This quote reminds me of startup life

It's a lot easier to build a startup if you're not the only founder. Otherwise, when you say we're fucked, no one will respond "oh no we're not". And then you will be.

The reason you cannot hire a cofounder is because the level of honesty and connection, trust needed can't be bought!

You then need a team! Don't have that much diversity! Most people will tell you I'm wrong.

There are lots of things in a startup that create friction. The only thing you can actually do well is move very quickly. That can only be impulses by education. Many times we go for it wrong. We had four techies from Urbana, and two businesseys from Stanford. We were all the same and could read our minds. Yet, we never fought!

The flipside, you will experience some problems perhaps adding the first woman on your team, or people of diverse backgrounds. But the first slope of similar people is worth it! We would yell at each other all the time, but we had a lot of respect for each other. Fight, fight but don't doubt each other!

At Slide, people would say "I really like you" and to me that meant "I don't respect you for shit". So when there's doubt, there's no doubt. It's time to runaway from the situation if there's lack of respect.

Best way to fire someone smart who screwed up is to ask them to resign. If they are unethical, improper or failed harshly, even worst a low performer, ask them to resign.

Why Silicon Valley? We have infrastructure. To find another place that is as conducive as The Valley is really hard. But just because you're not here, you posses knowledge of whatever happens on the valley that is typically lost once they come here. I was reassured of that after I saw a farming pitch.

Favorite lesson: a very common engineering fallacy is confusing the causality between difficult and valuable. Most things are valuable are pretty hard to do. It normally means you have to work hard. Yet if you are working hard, that does not mean you are creating value!

Investors: the one thing hat is abundant anywhere is cash. It is so easy to get cash today. You will raise money. But the key thing is what will happen when you need more, who will bridge you when cash is tight, etc. that's when their true colors really come out.

The other thing: you will hear many times how awesome they are. Yet you will probably be interacting with only one person. Try to make sure they help you with what you need. Identify their strengths. Failure shpeel is bullshit. It sucks. No one rewards you, you're out of cash. The thing that's worth remembering is the lessons learned. Write up your failures. Type them, read them over, keep them. Keep a failure diary. Irrelevance. Your greatest worry is and should be to becoming irrelevant. That's the opposite of success. If you're thinking about go this way or go that way. Choose bigger and hope you succeed.

Sent from an Akinin device.

Saturday, April 14, 2012

Innovation engine: a few ideas from E-Bootcamp!

Tina Seelig, Professor at Stanford, gave me the following insights:

How do you come up with ideas? From problems? What kind?

Before the 1400s people didn’t know how to do scientific inquiry. Sir Francis Bacon came up with the Scientific Method, and we adopted since early age a method to discover how things work. But shouldn’t there be a process for invention? Seelig calls this the Innovation Engine

Here are some of the ideas a few friends are working on. Get inspired:

Start notes.

ORCHIVE by Francis Hinson

“At the end of the day, major media corporations are just still corporations”

There’s some bias in mainstream news

POWER to the user

Mission: Create a medium for crowd-sourced reports

Report it first yourself, and let the crowd decide

Follow them at www.orchive.com

@tryorchive on twitter

Myagroworld.com by George, the greek

The price of the raw material is 10 times that of a product made from it.

In Greece 20.2% of spending goes towards agricultural products

My Agro World is a social network that eliminates middle man in agricultural distribution

InGidio.com

Turn pictures into shops

Anything that has pictures, videos or media can have integrated ecommerce stores, camouflaged into their platform.

Imagine you’re playing a game. And there’s a little menu of pictures of products: a pizza, a sofa, a book. You click on it, and keep doing what you’re doing. That click placed an order for you.

Interesting… three tech guys to look after.

Skillhubs.com

Demand centric tutoring site

Video platform

Bid screening

Algorithm

Mobile app that does a microlesson on-the-go

Partners: Open-tok, When2meet

VTShiksha

Audiovisual system for rural communities

Lessons from Coinstar, a conversation with David Veenstra

We met at E-Bootcamp in Stanford University, sponsored by BASES and Business Today.

David Veenstra started the meeting with this phrase "I didn't found Google. I don't have a stash of cash. But I have learned a ton from growth"

There it was, the keyword behind his success: growth.

Redbox, the cheap DVD rental subsidiary of Coinstar, Inc., grew to 1.5 billions in only ten years. Coinstar, the coin machine co. of Coinstar, Inc., grew to 150 million in that same amount of time. Business come and go, Redbox rode the wave that starving Blockbuster left behind, and Coinstar solved a problem noone cared to look into in society...

Veenstra, now managing new ventures for the umbrella company is focused on organic and early stage growth investments. Investments that are focused on "self-service automated retail". If you have an idea, and can turn the concept into a machine, Veenstra wants to talk.

He showed some examples of interesting concepts: hurricane simulators, nail painting and automatic dog washer machines- all hilarious, but businesses nevertheless.

Today, Coinstar, Inc. is investing in innovative approaches to the self-service machine business, such as Seattle's Best Coffee, GIZMO (refurbished consumer electronics), and ECOATM (trade in your phone).

Here is the advice I got from Veenstra:

OBSERVE PAIN. It's important to see, not just hear. Focus on opportunities that solve a real pain point.

LEARN CHEAPLY. Launch the business as a test, focused on learning, tweaking and iterating.. Prototype, holding it together with ducktape is OK.

RECRUIT A "NO BS" BOARD. Find candid and pragmatic advisors. Turned "EyeSite" into "SoloHealth".

AVOID SHINY OBJECTS. Stay the course, there will be many distractions along the way.

You have no idea how many ideas they had for Seattle's Best Coffee. In the end, they just focused on coffee.

Next time you have an idea, follow these truths. It will help you stay the course.

Friday, April 13, 2012

The Ozzie: Just What Miami Marlins Need!

Ozzie Guillen

Family man, manager, friend.

Loyal, skilled, hilarious.

Did big things for the White Sox throughout his tenure in the South Side of Chicago, and now he's back to a team he loves in a city he's always called home, the Marlins in Miami.

Excited, pumped, ready to rock the season and build a new baseball legacy with his new family, Guillen was and continues to be determined to bring the South Florida community over something he loves almost as much as his family, Baseball.

Yet last week's events, misinterpreted as they were, inclusive of a heartfelt apology on his part, seemed to cloud over this beautiful reality; that is: the Marlins fortunate acquisition of The Ozzie.

He's paid the price, a big one since baseball is his life. 5 games without the team will be not only tough for him, but for his players, and us the fans- baseball is not the same without him on the field.

Borrón y cuenta nueva. Ozzie is the glue that will bring this team forth, and the legacy that Miami's been looking for in the recent years.

Welcome back Ozzie. Now, Play Ball!

Wednesday, April 11, 2012

Mashud of Venice: From Street Salesman to Hotel Operative

In a recent trip through Italy with two dear friends, Adriana Urdaneta and Pedro Sanchez de Lozada, I was exposed to new feelings, experiences, the practical use of a language I had been learning for years, beautiful sights… and a new perspective on migrant economics.

David Akinin, Adriana Urdaneta and Pedro Sanchez de Lozada

See, I finally put all inhibitions aside and decided to use my “Economist” card in approaching a sect of salesmen that took over Piazza San Marco in Venezia, Italia. This post will aim to summarize our conversation and give you a better idea of who they are, how they live and the numbers behind their operations.

Our trip started in Rome, where diversity and tourism take over much of the local culture. The sights are still there, and Italian is still the official language; but if you speak Arabic, Bangladeshi, Hindi, or English for that matter, you are guaranteed to get by.

In Rome, the streets and corners, plazas and lawns, were populated usually by 6 to 10 salesmen of the same culture selling tchotchkes: posters, funny balls, light-copters… you name it. They would walk up to people and offer their product, and after rejecting the 2nd or 3rd of their men, they would leave you alone. At the time, I kept these insights to myself, though I’m sure those with whom I travelled were as aware as I was of the process.

Ponte Vecchio in Florence

As the trip continued, my interest in their business model grew. Upon our arrival in Florence, I experienced the same phenomenon. All around the Duomo (central Firenze), a group of 20 Arabic-speaking North Africans walked around offering their posters. Each of them carried ~6 in a cardboard folder which they would open when a tourist walked by, repeating phrases like “very cheap posters. How much?” “You like a poster. Good price” and “I give you one for 5 euros”.

View of Salesman from Duomo

Now, that last phrase is the one that triggered my curiosity most and made me wonder how these people made a life. I immediately needed to share my thoughts with my friends to get feedback about the process.

Here are some of my observations:

-These salespeople are all men, and immigrants.

-Their mastering of the Italian language is very basic.

-They charge 5 euros for their product.

-They all sell the same product.

-They all dress very well: top-brand shoes, jeans and jackets.

-They barely sell; I studied the salesmen for an hour and they did not sell.

All of this brought me to a few conclusions that I must admit others did not accept. I thought they made up some sort of organized cartel of illegal immigrants involved in the sale of other products, like drugs. If that was not the case, at least, I was sure they’d need an additional source of capital in order to live in such places and wear such clothes.

Here’s where “Mashud of Venice” comes in to the story.

Adriana left us before departing Florence, so Venice was going to be a trip between “the bros”. The thing is that Venice is a romantic, calm city, and if you’re traveling with a “bro”, you’ll spend a good amount of time drinking, getting to know each other and walking around pondering about life. I must say we even wrote a business plan for a venture we’d been thinking about for almost 6 months, since we had never had the spare time to crack into the details.

@ Piazza San Marco

We found ourselves sitting in Piazza San Marco, surrounded by 10 other couples spread out enjoying a snack or the evening stars. In a quick glimpse, I’d say around 20 Bangladeshi salesmen were playing with their flying helicopters that lite up, as they twirled down back onto their hands. Their strategy was to propel their toys up into the air, and have them fall in front of a passer-by to then conduct their pitch.

Their Italian and English were so-so, and got better the more veteran they were in the business. Regardless, they would be straight to the point; immediately after catching the toy from its latest flight, they would extend their hand towards you offering it, with a big smile, saying something like “very cheap, try it, try it”. One could negotiate, and the prices ranged anywhere between 2 and 5 euros.

I spoke with Mashud. He migrated from Bangladesh like most of his peers, and was excited to tell me about the business. These men, on a great-day-scenario make 30-40 Euro. Every 500 Euro in savings, they make a transfer of that amount home, and surprisingly only pay a 5 Euro fee (which tells me that American remittances market is overcharging). When I said how do you live, do you sell other things? Jokingly, I mentioned drugs, to what Mashud answered “No, No..”, but his peer, who had recently come to Italy (barely 10 days) said “Yes, Yes…”.

It’s tough to migrate. Mashud came on a 1,000 Euro flight, and wasn’t content making 10 or 15 Euro on a day scavenging around for a buyer. He moved up and made relations outside of his circle of salesmen. He secured a job at a hotel, servicing it, making more money than before, and the security to move forth in life.

It is tough to make a living in a new place, but the need of those that depend on you and are left behind in your home-country, propels a new side of our economy, that in the end only stimulates growth outside of the place of commerce. Next time you travel, think of Mashud and his peers. Take a minute to ponder on how they make a living, and impact the local and home economies.

Wednesday, February 29, 2012

First Daimler World Dialogue in Stuttgart, Germany

This is way overdue, but as the video productions of the event that took place last October are being released, I decided it'd be a good excuse to finally write a post about an event that's shaped my career.

The first-ever, Daimler World Dialogue took place in Stuttgart, Germany on October 4th and 5th 2011. I, along with 124 students around the world, was chosen to participate in this marvelous opportunity, one that shed light on Daimler's accomplishments, celebrated the 125th anniversary of the automobile, and brought together for the first time the members of the Global Responsible Leadership Initiative. The food and catering, the attention and design, the drive and creativity, made one of the most spectacular conferences I have ever been to.

David Akinin speaking with Daimler CEO, Dieter Zetsche

Click Here to see a video of the Daimler World Dialogue

I appear speaking at 16:15

Daimler AG is a German car manufacturer and a member of the Globally Responsible Leadership Initiative (GRLI), founded by the UN Global Compact and the European Foundation for Management Development (EFMD) to “promote and develop the next generation of leaders with global responsibility.” Each year, representatives from various business schools and companies worldwide gather at an annual meeting, which was hosted by Daimler this year to form the first Daimler Student World Dialogue. The idea of the conference was to give platform to the GRLI general assembly and future leaders – students – to engage in discussion on topics of responsible leadership and integrity.

On the first day, we were welcomed by the CEO of Daimler AG, Dieter Zetsche, in an inspiring speech where he shared his views on integrity and global corporate leadership. Dr. Zetsche introduced us to Daimler’s projects in revolutionizing the automobile industry, such as hydrogen fuel cell vehicles and hybrid models. His words were moving, and his drive to impact our world in a positive way, more than outstanding.

Throughout the day, we were engaged in a series of activities designed to invoke our approach and thoughts on different situations that require teamwork and careful consideration. How would we interact and compromise in an ideal world? What role does integrity play in negotiations? We discussed many of these ideas through very creative and innovative hands-on games at the Arena!

Other influential figures made key addresses at the Dialogue, including Prof. Dr. Marielle Heijltjes, Associate Dean at the Maastricht University School of Business and Economics, and Uwe Steinwender, Senior Manager at Daimler Corporate Academy.

Painting our World Vision

After a 5-star lunch at the Carl-Benz Center – where the majority of the conference was held – we walked as a group over to the Mercedes-Benz Museum down the street, where we were given a comprehensive tour of the beautiful architecture and the stunning automobile models within it. Given a blank canvas, each smaller group participated in collectively painting our vision of a community united towards sustainability. I led my group's paint-job in designing a world that was overtaken by advertising and commercial messages. The day culminated in a dinner, which we took part in making appetizers together, followed by a cocktail dance party at the Mercedes-Benz Museum to end off the night.

David Akinin, Ricardo Amador and others at Daimler Cocktail Reception

Kicked off by Daimler Futurist, Alexander Mankowsky, the next day consisted of a series of “sustainable board meetings” where we discussed topics on green technology and the approaching consumption with a new modesty. It was a simulation where we acted as if we were board members of a company and argued ways to educate the new generation on sustainability issues and the concept of sharing our already scarce resources. A keyword that we developed and stuck with me was "prosumers", the idea that today consumers are their own producers, as influencers of design and utility.

In just two days, 125 global students came together united – optimistic and enthusiastic to change the world. I met people who empowered each other, cared about the future of sustainability, and had a real passion for life. We were from every corner of the world and represented a vast age range – still, little differences were noticed when we interacted.

The 2011 Daimler World Dialogue Delegates

The Daimler World Dialogue was indeed an experience; that did not just end when we left. Connections have been made and friendships formed – we can take this platform online and carry on with discussions via social media websites such as Facebook. I returned to Chicago with a changed perspective and a renewed sense of hope, confident that this is the case for all the participants.

Monday, February 20, 2012

Trip to Nashville!

Click here to view this photo book larger

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Thursday, February 16, 2012

Nuestra Venezuela en el 2013

Venezolanos, compatriotas, amigos... todos padecemos de la energía colectiva del 11 de abril del 2003; padecemos de la unidad nacionalista que nos unió y dio la fuerza de vencer al régimen Chavista que giraba nuestra nación en un rumbo equivocado.

10 años después, una decada entera, podemos reflexionar y ver que ya es hora. Muchos de nosotros nos hemos ido del país, hemos perdido esperanzas y como oposición no tenemos el mismo poder colectivo de años atrás.

Tenemos en nuestras manos el nombre de un candidato que fue elegido en las primarias abiertas por aquellos más valientes en nuestro pueblo, quienes decidieron que Henrique Capriles Radonski, con 1.806.860 votos, nos representará en las próximas elecciones electorales.

David Akinin y Henrique Capriles Radonski

University of Chicago, Harper Library

Mi escrito es para hacer un llamado a nuestro pueblo, y en especial a los líderes que se presentaron junto a Capriles Radonski. Este es un llamado por la unión y por el futuro de nestra Venezuela. Este es un último llamado para que nos despertemos y veamos un nuevo día- un día que alumbrado por los rayos de un nuevo sol, hará a Venezuela florecer una vez más.

Pablo Pérez Álvarez, María Corina Machado, Diego Arria, Pablo Medina: únanse! júntense! súmense!

Como un solo pueblo, salgamos a la calle desde hoy hasta el día de las elecciones a convencer a todo aquel que cree que su voto no cuenta, que esta vez es la que cuenta.

Desde Libya hasta Egipto, hemos visto pueblos a admirar, poblaciones enteras, que a pesar de problemas que aún estén enfrentando, han sabido salir a la calle y mostrarle al mundo que ellos son los dueños de su país!

Por una Venezuela mejor, por nuestra Venezuela en el 2013!