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jerryking : investors'_expectations   3

Stanford dropout with a magical touch
Jul 14, 2017 | Financial Times | by: Hannah Kuchler.

Evan Spiegel refuses to be scared of Facebook. Confidence helped the 27-year-old Snap chief executive take a photo messaging app from a Stanford University coursework project to an almost $20bn initial public offering. The threat of Facebook has been following all the way.

In 2013, when the company behind Snapchat was just two years old, its co-founder (his partner was a fellow student, Bobby Murphy) was quizzed on stage about Poke, Facebook’s first attempt at imitating the app’s photo messaging. “Certainly it is scary when a giant enters your space and you are a small company,” Mr Spiegel said at the TechCrunch Disrupt conference. He laughed it off: Poke failed, and that became the “greatest Christmas present we ever had”.

But the world’s largest social network does not give up and has relentlessly imitated Snapchat since Mr Spiegel turned down its $3bn acquisition offer in 2013. Earlier this year, just as Snap headed for the public markets, Facebook finally succeeded in popularising a version of “Stories” in four of its apps — the Snapchat feature that expires after 24 hours.......an unlikely analogy..... “Just because Yahoo, for example, has a search box, it doesn’t mean they are Google.”......Mr Spiegel, who dropped out of Stanford, was the first chief executive from a new wave of highly valued tech start-ups to brave the public markets. It paid off personally: he became a multi-billionaire when he took Snap public....Spiegel is soaking up advice “like a sponge” from senior management and the board, which includes Michael Lynton, former chief executive of Sony Pictures and AG Lafley, former chief executive of Procter & Gamble.....Praised as a product genius who instinctively understands the desires of his young audience, Mr Spiegel now has to learn to be a public company leader, managing the expectations of investors who want to compare Snap to Facebook and Mr Spiegel to Mark Zuckerberg......By designing the disappearing photos that made Snapchat famous, Mr Spiegel completely rethought the camera. Photos became transient conversations, not kept for posterity; social media became a way to be creative — and silly — with your close friends, not flick through a feed of near strangers.....Sir Martin Sorrell, chief executive of WPP, told the Financial Times it plans to double its spending to $200m on Snap this year. But, he added, WPP will spend over 10 times more on Facebook.

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dropouts  Stanford  IPOs  Snap  Snapchat  CEOs  Evan_Spiegel  WPP  Martin_Sorrell  product_development  product-orientated  public_companies  investors'_expectations  10x 
july 2017 by jerryking
Capital Markets 'Impediment' to Innovation - The CFO Report - WSJ
June 20, 2011, 10:05 PM ET

By MICHAEL HICKINS

Glenn Hutchins, the co-founder and co-CEO of private equity firm Silver Lake, believes the expectations of shareholders and analysts often prevent companies from investing in new businesses or technologies. “One of the largest impediments to getting all of this done is in fact the capital markets,” he said during the opening panel discussion of The Wall Street Journal’s CFO Network Conference.
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CFOs often find it tough to make aggressive, long-term investments because explaining the reason for “making a short-term diminution for the purpose of a long-term gain [to the equity markets] is very difficult to do.”

Still, companies need to be willing to overhaul their entire businesses, if necessary, to avoid being overtaken by aggressive innovators...He lauded Apple for being willing to promote something like the iPad despite the fact that the tablet may in fact destroy the computer maker’s iMac franchise. “Business model innovation is underrated,”.....Also speaking on the panel, HBS professor Clayton Christensen blamed a corporate culture born, ironically, of business school formulas that separate strategy and finance. “The business schools decided to teach strategy and finance [separately] and this got carried over into companies. [But] a lot of things that make sense financially make no sense strategically.”
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With the finance function certainly in mind, Christensen wrote that, “Managing innovation is the complexity of managing the resource allocation process.”
Silver_Lake  Clayton_Christensen  innovation  strategy  finance  CFOs  long-term  impediments  capital_markets  business_models  Glenn_Hutchins  resource_allocation  expectations  new_businesses  new_products  investors'_expectations  short-sightedness  short-term_thinking 
february 2015 by jerryking
iPhone 4S unleashes more creative destruction | Considered View | Breakingviews
04 October 2011 | By Robert Cyran.

Apple has an astonishing ability to casually unleash creative destruction. Its latest iPhone, the 4S, offers faster data-processing and downloads, as well as voice-powered software. This may not have lived up to the most feverish expectations of investors: Apple shares fell while the market rallied. But it will do more than enough to create headaches for companies ranging from Research In Motion to American Greetings.

Smartphones started by devouring the personal digital assistant, as any former Palm Pilot aficionado can testify. They terrorized the market for fixed-line phones, which are now in sharp decline. Apple’s newest gadget shows just how hungry smartphone makers, and Apple in particular, are to eat rivals’ lunches.

The new iPhone’s camera offers sharply better video. That will further hurt sales of digital still and video cameras. Its software allows easy and free texting to other Apple devices. That’s bad news for telephone operators, who make fat margins on such services. Instant messaging has also been the killer app for BlackBerry users.
Apple  iPhone  creative_destruction  smartphones  wireline  margins  staying_hungry  RIM  BlackBerry  blindsided  voice_assistants  voice_interfaces  text_messages  free  investors'_expectations  bad_news 
october 2011 by jerryking

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