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Summary:

How are people like Sun co-founder Scott McNealy, Paypal co-founder Max Levchin, Wordpress founder Matt Mullenweg, Cisco CTO Padmasree Warrior and Foursquare founder Dennis Crowley approaching 2012? We asked 12 of the best-known tech industry leaders to share their New Year’s resolutions with us.

scott-mcnealy

Think big, take risks

By Max Levchin, Serial entrepreneur (As told to Janko Roettgers)

Max Levchin was the co-founder and CTO of Paypal, and founded Slide in 2004. He served as Slide’s CEO until the company was sold to Google in 2010, and left Google in the fall of 2011. He is also an investor in various startups, and is currently working on a new stealth-mode startup in the big data space. We wanted to hear what his plans for next year look like, and what kind of big trends he sees emerge.

My mission for myself is to help the world make sense of data. We have gone from not knowing what’s going on around us to being able to record and track just about anything.

The emergence of inexpensive sensors is the singularly most exciting thing about the world in many ways. A big part of our life is to make sense of it all before it’s too late. Why are things happening? What is going on with us? What is going on with other people? Sensors answer that in a big way. There is a famous scene in The Graduate, where the main character is being advised: “You know what you should spend your time on — plastics.” I think if someone rewrote that movie today, the answer would be “sensors.”

Fifteen years ago, you had to go to a hospital to get your vital signs checked. I imagine that in five years from now, T-Shirts will have a sensor built in that will measure your blood pressure, and then transmit that information to your phone, and your phone will text you when your blood pressure is too high — no doctors or nurses involved, just a cloud service for health monitoring.

The ubiquity of mobile devices, networks, bandwidth, cheap sensors and transmission, and cloud-based services, along with the liberation of information that was once thought of as very valuable and private and allowing it to live on a server as opposed to your personal desktop or phone — those are the pieces that will lead to exciting developments in a lot of industries, from health to transportation to energy.

Sensors are generating lots of data to process, and the big data industry will benefit tremendously from all the new sources. I think the world will be enhanced and shaped by our understanding of data for the next 100 years, and I want to participate in bringing that about. My current startup will have a lot to do with the whole emerging big data movement.

When I was analyzing what I wanted to do next, I realized I have always been really excited about data. At Paypal, I spent the majority of my time data mining — trying to understand the behavior of consumers and merchants, so that we could predict and appropriately price fraud. Being able to correctly price risk, transitions you from being a a regular payment startup to a profitable payment startup.

At Slide, we built entertainment products. But again, I was excited about the behavioral data that we generated. And I have been investing in companies that deal with big data, such as Mixpanel, which is a data analytics company, and Kaggle, which is a data science talent marketplace.

I left in Google around the beginning of October, because my ability to make an impact in a way that was both satisfying to me and useful to Google was waning. So this is the right time for me to reinvent myself again. I want to focus on taking bigger risks, to think bigger, aim higher, and build more long-term things.

One of the disturbing trends in Silicon Valley that I have seen is that a lot of people are very short-term focused, and innovation is stagnating. I think we are approaching the point where the “hard problems” of the Internet have been identified and many have been solved, so you see a lot of consumptive-type creation. There’s an attitude of, “Hey, let’s build this, it will be great, we will hammer it out and sell it to the highest bidder.”

But I think there are plenty of things that can be explored and invested in. You just have to break out of the existing mind set.

I think mobile is flipping from being a small, constrained window onto the Web to this cool new thing that’s finally living up to all those promises. Your phone or tablet is becoming a primary view on what’s going on, which is very powerful. Maybe by the end of next year, we will think of the Web as an unnecessarily large window into mobile. It will be thought of as a strictly desktop experience, what you do when you can’t stand up and move around.

I think collaborative consumption is really great, too. Companies like AirBnB and Uber and all the different variants of that model are a sane, free market way of redistributing resources to those who need them the most and are willing to pay fair-market price for them. It basically brings access to people that haven’t had it before. At some point, somewhere, somebody is dying to get rid of an apple, and somebody is starving. Creating a cheap way of connecting those two people makes the world a better place. That’s a very exciting trend and there are a million little startups trying to build solutions for different verticals — for saving time, saving resources, saving gas, saving everything that can possibly be saved. I’m thrilled about that.

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  1. Excellent. Pure McNealy. Punchy, invigorating, real, entertaining.

    1. If I was a Cisco exec, I’d be more worried about Huawei than advocating for women. You want to advocate for women, become a lobbyist.

  2. is that Matt or is it Jeff (as in Bridges)

  3. He it the nail on the head about consumer vs. business products.

  4. Putting Steve Jobs and open web and open source in the same article is blasphemy. I don’t know how you can connect the two and be serious. He was the embodiment of everything you are afraid of. Proprietary platforms driven by locking users in so they cannot leave and have to keep buying things for him under the excuse of “experience”.

    And the reason why others will try to think about what would Steve do is because everyone saw that locked down, proprietary approach is making A TON of money. He single-handedly contributed and instigated what you are afraid of.

    1. Steve Jobs was successful in many ways. There are lessons that can be learnt from what he did, and those lessons can be applied to any technology, be it open source.

      And user experience is not an excuse. Its the reason people buy things. Try making stuff without it, and see if you are able to sell a single piece of it.

    2. apple being closed does not mean that one cannot browse certain sites. think of apple as a company that charges double ( consumers hate that) but delivers half tco (businesses love that). and it is able to pull that off only by keeping certain things closed.

      1. May be so, but 2 weeks into my new Android phone and I’m still struggling to export MY sms text messages from MY iPhone. Even Apple support doesn’t respond to my requests for help with this. I think they forget I was a customer for many years, and if this was easily resolved I could become a customer again!

  5. Great Stuff…We are building a new community first platform here
    http://www.kleemi.com/privacy.php

  6. “A few years ago, Google started favoring some of their own websites over others” I am happy for google to provide me an option “do you want our services to be displayed first or not” and I’d check that blindly because so far, google’s services have been much better at providing me with what I need.

  7. Why shouldn’t they? ABC advertises ABC shows and not NBC or CBS’s. This is one reason why some people and companies create large networks (whether they are broadcast or information networks); to help promote each other.

  8. I have always enjoyed McNealy. Cool dude. But come on! You left SUNW because the stock was crashing and you wanted out of a dying business…Not because you wanted to spend time with your kids,

  9. Mullenweg makes no reference to photographing food in this interview. I’m suspicious.

  10. I still haven’t got out of “Stay Hungry, Stay Foolish” of Steve Jobs and now you are giving me “Stay Nervous”. I would say “Stay Cool”.

  11. Good Article….But I think that looking for funding may not be synonymous with technology that brings about “real” and “Lasting” change.
    Real and Lasting change could involve putting the “Community” that adds value to your service first in a way that may eventually break the cycle of inequitable distribution of monetary value to the “Corp”

    http://kleemi.com/conversations/

  12. Brilliant post and I shall print it out and pin it down on magic board!

  13. Philip has a lot to say , but there is a silicon valley assumption hidden here that no company is valid unless it has VC investment and makes a quick exit. Anything else is derided as a “lifestyle business.” When you take VC or angel money you instantly change who your customer is. No longer are you solving a problem for a million people, you are now solving an investment criteria for a very few investors. Don’t do it. Find a small enough piece of the market/problem and using you own funding go to market and grow organically. Keep focused on your real customer. They have far more money that any VC. Only take money from friends and family who are giving you money because they love you. Think Bill Gates, not Google. The math is rather simple. A typical VC funds less than 1 in 100 business plans that they see and 90% of their funded businesses are failures (by VC standards). Why would you want to twisted your life’s work for such slim odds.

  14. A GREAT article but please note that grouping it under “leaders’ New Year’s resolutions” was wholly unnecessary and misleading (given there were no resolutions, and anyway I did not go to this article because of “resolutions” but rather because I saw a quote from the article in an NRF newsletter regarding the increasingly closed nature of the web). And it wasn’t easy to get here from the page that showed the photos because the text was poorly printed in contrast so that many of the names I couldn’t read, I happened to guess correctly at Matt Mullenweg’s likeness.

  15. GREAT article. But linking from the “12 tech leaders’ resolutions” was both inaccurate (given there are no “resolutions” here) and unnecessary (as I was enticed to come to the article via an NRF newsletter linking this and that newsletter gave a quote from this particular article – I have no interest in reading tech leaders’ resolutions).

    Further it was difficult to get to this page from the page introducing the 12 leaders’ resolutions, as the text on the photos was in many cases unreadable, especially for this Mullenweg article. I got to this as I could make out the “Open” word and guessed this was Mullenweg’s likeness.

    Second attempt at commenting – seriously, my comment doesn’t appear and no notification like “pending approval of the comment” because I chose “guest” instead of one of the commercial services? Fine, I logged in via Twitter this time. But this really needs to fix its messaging and/or technical issues (I’m not sure which it is). Apologies if this resulted in a double post.

  16. “A few years ago, Google started favoring some of their own websites over others. They left a path of scorched earth through many prominent businesses and publishers.”

    It’s fairly irresponsible to say this without justifying it. Which Google services are you referring to, and which businesses were hurt by it? There are many individual cases you could be referring to, with varying degrees of debatability.

  17. it does not matter if the net is open or closed, what matters is the extent of run time criteria vs compile time criteria. we live in a world of power gradients, which are maintained indicating the absense of a countervailing force. this is possible if resistance buildup is nipped in the bud, which requires run time criteria.

  18. Re: Program or be Programmed, I just penned a related post on the Learn it Yourself movement: http://bit.ly/sReK6m

  19. we are facing tech evolution so fast that we are increasingly lagging behind. in such a situation, the best thing we can do and should do is work from first principles. in an ideal business setup, there is no profit or loss. also we need to separate the goals from the paths. these three form the basis of all my thinking about how technology can improve our lives FP / IB / GP

  20. If you look at the world through a pair of eyes then naturally we surmise that there might be more considering the lack of use of the most part of our brain…then stating that we might neurologically partake of data and images in the future is plainly stating the bleedin obvious.

    I see that we strive forward as a collective group of engineers trying to convince the world that 3D is the next step…when it may damage eyes to the point that we had better, and pretty soon find the answer to the absorbtion of images neurologically because we may be on route blinding a generation….The folly of the human being and the “no sir nicotine is not harmful” attitude of businessmen is a frightening legacy!

  21. I have already come.
    As I promised that I would come again, I have already come. Now all the people around the world must listen to this message,

    “I have already come”

  22. Nice post Mr. Hesse and I’ve been a loyal Sprint customer since the year 2000 but you guys still screw your existing customers under contract and always favor new customers when new handsets come out (which is pretty rare). But, you guys still are the best of the big 3 in the US.

  23. GREAT!!! I agree with you about women being more hesitant. I also want women to push for society to accept us as Mom’s and Dad’s with lives. The American workplace is not child friendly and we shouldn’t have to sacrifice our family’s quality of life for careers, or vice versa. At least this is the case in the entertainment industry. I hope we can stop working crazy hours and spend some time with our families and friends.

  24. Please if you’re going to advocate women in tech, make it actually “tech” or scientists, inventors, “do’ers”, etc.-not executives

  25. I feel sorry for you, and all people who have such shallow, politically correct introspection.

  26. panjwani_ajay Monday, January 2, 2012

    pixel qi is following apple model – designed in us made in china. that indicates the onset of higher optimizations for higher margins. and that is where the conspiracy lies. those mit stanford phds were always at hand watching china under optimize all over the place. only when the margins got wafer thin did these phds decide to add intellectual property margins

  27. panjwani_ajay Monday, January 2, 2012

    dans story reminds me of the problem of electricity grids where half the power gets wasted in transmission. in telecom too, there is no need for owners of networks to provide services too. have number portability and have a separation between network ownership and service providers

  28. This gave me some ideas. Now, I’m having trouble with my resolution: Be a better manager or be a better leader? I think there’s a difference between the two. I would love to see technology humanized this year and we have a lot to clean up amidst all that clutter. More success to all this 2012!

  29. ….More Humane should be about reversing the flow of “VALUE” from “COMMUNITIES”” to “corps”…This should be the next phase of and evolution of tech….

  30. I like the human face to technology bit and the acceptance that technology can become overwhelming. I think more tech entrepreneurs should help users deal with the deluge of information rather than adding even more information to an already overflowing knowledge stream. As someone once said, and the big data debate supports this, the future belongs to the information curators, not the information creators.

    1. I actually like that as an entrepreneur, he brought up physical activity. I find that its critical to get a good oxygen rush in at least a couple times a week as well.

  31. 1) Path is confusing and you’re telling the user how to use the app (which is annoying and will be one of facebook’s failings)
    2) what was the point of mentioning you are an olympic jr skier? #humblebrag
    3) we’re not all rich like you Dave. Most people cannot afford a personal trainer in this economy
    UGH

  32. MATT W IS 25 YEARS OLD! WTF coud he possibly truly understand about a 20 year tech cycle (a tech cycle, that changes SO fast, is not anything akin to a political or financial cycle). Not taking away his supposed brilliance but I would rather hear from weathered CEOs who have been around the block many times, not from some kid who got it lucky once.

  33. Bruce Ketchum Sunday, January 8, 2012

    One word… Graphene.

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  35. “the industry doesn’t get it” ..?

    The “industry” never shuts up about it. Where have you been?

  36. Warrior’s last comment about helping other women is a very important point. As a technical female, I find that too often, women who are in a position to mentor or help, instead act with spite and competition. There seems to be an innate sense of cattiness that these women don’t realize sabotages the reputation of women overall in the workplace. I would cherish the chance to be mentored or even have a decent conversation with a woman who has been through the uphill battle of being a technical executive and not being labeled as any of the derogatory things that successful women are often called!! Even more so, a woman who has been able to do so without sacrificing the idea of family and a personal life.

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