November 26, 2014

Random Show Episode 26

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A new episode of the Random Show with Kevin Rose (founder of Digg) and Tim Ferriss (author of The 4-Hour Workweek) is out! This is episode 26.


Lessons learned
  • According to Tim Ferriss, a lot of would be entrepreneurs follow this quote: "Everything has been done and there's nothing left." But that's not true, because there's so much left to invent. 
  • Tim Ferriss's favorite market that you should target if you are building a company is very precisely defined, relatively easy to target, and price-insensitive high-end.
  • You don't have to be a large public company and follow the traditional "Silicon Valley way" of building a company. The Swedish furniture company IKEA could do it on their own
  • Both Kevin Rose and Tim Ferriss seems to be burned out from the current "tech" hysteria in Silicon Valley. Tim Ferriss argues that we have a tech-bubble and the companies that will survive are the lean companies that are not in a rush.
  • Take some time to be thankful and make a list of those things!

Recommendations

If you want to watch the rest of the episodes, you can find them here: The Random Show with Kevin Rose and Tim Ferriss

November 22, 2014

Key points from the book Zero to One by Peter Thiel

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I've read the book Zero to One – Notes on startups, or how to build the future by Peter Thiel. When I wrote a biography on Elon Musk, I gave a brief introduction to Peter Thiel’s life because he and Elon Musk used to work in the same company. In his new book, Peter Thiel also talks a little bit about his life so I thought it would be interesting to see if I could learn something new.

The book's title originates from Peter Thiel's view that you should always create something new (from 0 to 1) and not copy someone else (from 1 to n). Therefore, the book is about how to build companies that create new things, which is difficult because it requires doing something nobody else has ever done.

Peter Thiel knows what he's talking about because he has founded (or co-founded) both PayPal and Palantir, and was and early investor in both Facebook and SpaceX. All these companies went from 0 to 1. The problem today is that most entrepreneurs want to go from 1 to n because it's easier even though our world is in a desperate need of innovation.

In a world of scarce resources, globalization without new technology is unsustainable. Not many years ago, we looked forward to vacations on the Moon. The computer in a modern smartphone is more powerful than the computer that landed on the Moon, but we are only using our smartphones to fire birds against pigs. While in the 1950s, people welcomed big plans, today is a long-range plan considered as hubris. Moreover, the number of new drugs approved per billion dollars spent on R&D has halved every year since 1950. How can the future get better if no one plans for it?

According to Peter Thiel, these new technologies can only emerge from startups. A startup is the largest and smallest group of people you can convince of a plan to build a different future. Larger organizations are too inefficient, and you can't do it on your own.

From Zero to One is a short book (380 pages on my iPad) but it is filled with knowledge and is easy to read. Among others, here are some important key points from the book:
  • Today's "best practices" lead to dead ends – the best paths are new and untried.
  • Technology is miraculous because it allows us to do more with less.
  • There's no formula for success because every innovation is new and unique.
  • Ask yourself the following question: "What important truth do very few people agree with you on?"
  • In the most dysfunctional organizations, signaling that work is being done becomes a better strategy for career advancements than actually doing work.
  • How much of what you know about business is shaped by mistaken reactions to past mistakes?
  • The most contrarian thing of all is not to oppose the crowd but to think for yourself. 
  • Monopoly is the condition of every successful business. Under perfect competition, no company makes an economic profit. On the other hand, a monopoly owns its market, so it can set its own prices. 
  • Higher education is the place where people who had big plans in high school are stuck in fierce rivalries with equally smart peers over conventional careers like management consulting and investment banking. 
  • Rivalry causes us to overemphasize old opportunities and slavishly copy what has worked in the past. When PayPal wanted to copy Square the only difference they made was a triangular card reader.
  • Competition can make people hallucinate opportunities where none exist. 
  • For a company to be valuable it must grow and endure – even though many entrepreneurs focus only on short-term growth.
  • You are not a lottery ticket! If successful entrepreneurs were just lucky, then entrepreneurs like Steve Jobs and Elon Musk wouldn't have created several billion-dollar companies. But there's no way to find out if that's really true because companies are not experiments. 
  • Today the whole Eurozone is in slow-motion crisis, and nobody is in charge. 
  • China is probably the most pessimistic place in the world today because they know there's no way Chinese living standards can catch up with those of the richest countries – because of lack of resources. 
  • Avoid the lean startup where you iterate a minimum viable product. Making small changes to things might lead you to a local maximum, but you will miss the global maximum.
  • The most important lesson learned from Steve Jobs has nothing to do with design. The greatest thing Steve Jobs designed was a long-term vision. 
  • Less than 1 percent of new business in US receive venture funding, but ventured-backed companies create 11 percent of all private sector jobs and generate revenues equivalent to 21 percent of GDP. 
  • If you think something hard is impossible, you'll never even start trying to achieve it. 
  • The best startups might be considered slightly less extreme kinds of cult. 
  • Poor sales rather than bad product is the most common cause of failure. Engineers know their jobs are hard, so when they look at salespeople laughing on the phone with a customer or going to a 2-hour lunch, they suspect that no real work is being done. What engineers miss is that it takes hard work to make sales look easy. 
  • Computers are complements for humans – not substitutes.
  • Big data is usually dumb data.
  • The most valuable companies in the future will ask, "How can computers help humans solve hard problems?"
  • The best problems to work on are often the ones nobody else even tries to solve.
  • Founders are important not because they are the only ones whose work has value, but rather because a great founder can bring out the best work from everybody at his company.

November 12, 2014

No wheels and an electric motor

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We now have cars with electric motors, and we also have bikes with electric motors, but what about the boats? I don't know if this thing can be defined as a boat, but at least it behaves like one:

The "boat" you see in the image is a Q2A Electric manufactured by the Slovenian company Quadrofoil. Here are some basic data:
  • Price: From 15,000 Euro ($19,000)
  • Range: 50 km (31 miles)
  • Speed: 30 km/h
  • Seats: 2
There's one limited edition, but this data is from the standard edition. The difference between the two versions is the speed and range and thus the price.

According to the manufacturer, the Quadrofoil (the company name is also the name of the boat) is unsinkable because the hull is hollow. And it also comes with a built-in anti-collision system that absorbs the collision forces. When the Quadrofoil is not moving, the depth of the water you are operating in has to be at least 1 m. But when it's moving, the depth can be much shallower as the draft of the boat is as little as 0.15 m. 

Looks interesting? You have to wait until Q2 2015 before you can buy one.

November 9, 2014

Why you are helping Google each time you sign in

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I've read the book Big Data - A Revolution That Will Transform How We Live, Work, and Think. The book promises to give the reader a brief introduction to the world of big data. While some say big data will revolutionize the world and transform it in ways we've never thought of before, others say that big data is just another bubble. I guess only time will tell us the answer.

The basic idea behind big data is that if we analyze gigantic amounts of data we will discover what we otherwise couldn't have discovered. The book is filled with examples from the world of big data, ranging from how to discover flue trends with the help of what we search for in Google to new alarm systems that analyze the seat-position of a car driver and sends a signal to the police if the car doesn't recognize the driver's position. It also discusses what might be possible in the future. Will we be able to jail criminals before they committed a crime if the data said they would commit the crime in a near future?

The company the book talks the most about is Google - a company that has access to gigantic amounts of data. Each time we search for something in their search engine, they save the data and are improving their systems with the help of that data. But we are also helping Google in other ways each time we sign in. As you probably know, Google has been driving around in their cars and photographed heaven and earth. The result is Street View.  But they have a problem. The images they took are not accurate enough so they can determine the street number of all buildings. That's where you and me are expected to help them each time we sign in somewhere using their system. 

At the height of the tech bubble, in 2000, a guy called Luis von Ahn was tired of automatic computers who wrote "spam" all over the Internet. He came up with the idea to force you and me to write numbers and letters that are difficult for a computer to read automatically. He called the system Captcha. But what if he could use you and me to also do some useful work and not just write random numbers and text each time we sign in. Google had the same idea and acquired the technology from Luis von Ahn's company in 2009. 

So in 2009, we were all hired by Google to translate text. Google has scanned almost all books in the world and they are now searchable at Google Books. But to make them searchable by you and me, Google had to translate the scanned images to text. Their computers could translate some text, but not all, and it would be too expensive to hire translators, so Google began to send out images to you and me each time we signed in. If maybe 5 of us translated the image of text the same way, Google took the translation and added it to the book they scanned.

I believe Google has run out of books to translate, so they now need help to translate street numbers. That's why you and me now have to write a number each time we sign in:

November 6, 2014

Top words in top selling books

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Last year I wrote an article showing the Opening paragraph of top selling books. A while ago I read an article that talked about the top words in top selling books. I've lost that article so I decided to use my data mining skills and make a similar research on my own. The books I've included are a few of the top selling books from the last article:
  • A tale of two cities
  • And then there were none
  • The Hobbit
But since all of the top selling books are not available in the correct format needed to analyze the words, I've also included:

This is the result:

Alice Two cities Hobbit And then Bible Engineer
the the the the the the
and and and a and to
to of of of of a
a to to to to and
she a a and that of
of in he he in in
it his in was he was
said it was said shall he
it that they I unto Elon
in I it it for that

But, as you can see, most of the words in the results above are so-called stop words, so I've also tried to see what happens if these words are removed. This is the result:

Alice Two cities Hobbit And then Bible Engineer
said said said said shall elon
alice mr bilbo lombard unto said
little lorry dwarves blore lord car
know man came vera thou tesla
like defarge like armstrong thy like
went little long rogers god company
thought time thorin mr said electric
queen hand time know ye rocket
time miss great went thee space
did know did little man didnt

If I recall that old article I read on the top words in top selling books, I think the words were "and" and maybe "but." Anyway, it was interesting to see that the words in my own book matched almost all of the words in the other top selling books. But I think we will need more books to come up with any real conclusions.

Bonus!
As a bonus, I've also calculated the average words per sentence in each book. This is the result:
  • Alice: 27
  • Two cities: 18
  • Hobbit: 20
  • And then: 9
  • Bible: 28
  • Engineer: 20
...and average length per word:
  • Alice: 4.09
  • Two cities: 4.33
  • Hobbit: 4.17
  • And then: 4.21
  • Bible: 3.94
  • Engineer: 4.46