Tag: Technology

Technology News from the Week: June 18th 2018

Technology News from the Week: June 18th 2018

Technology news items that caught our attention this week:

Google’s AI can now lip read better than humans after watching thousands of hours of TV: Link

Instagram takes a shot at YouTube, further distances itself from other social media platforms by rolling out long-form video: Link

One million people use Bank of America’s AI-powered virtual assistant “Erica”: Link

GM is considering an IPO for autonomous driving unit Cruise Automation: Link

Amazon faces push back related to its facial recognition platform “Rekognition”: Link

AT&T launches new streaming service – “WatchTV” – $15 per month for 30 channels: Link

Disney is willing to divest more Fox assets for deal clearance: Link

U.S. venture capitalists didn’t fund this Duke professor’s powerful facial recognition platform, so the Chinese government did: Link

Gamers rule the world. Now they have their own stadiums: Link

Twitter finds new life with young people. On Instagram: Link

Ferruccio Lamborghini – A Leadership Model Built On Trust & Creativity

Ferruccio Lamborghini – A Leadership Model Built On Trust & Creativity

Ferruccio Lamborghini

For the Lamborghini Countach – the successor to the revolutionary Miura (our header image) – Ferruccio Lamborghini chose three of Lamborghini’s best and brightest. Then he did something revolutionary – he left them alone.

early model Lamborghini Countach

Openness and Adaptability

Elements of Lamborghini’s leadership style – openness and creativity – are congruent with our recent CEO personality research, particularly as it relates to dynamic, fluid segments of the technology industry (think Artificial Intelligence and Autonomous Driving) where creative approaches to problem-solving and adaptability are key success factors.

The Wall Street Journal recently published an article detailing the process by which Lamborghini brought the Countach to life. To access the article as it appeared in the WSJ  CLICK HERE

Our recent CEORater Podcast on the subject is below.

 

Even more on the Miura (we all have favorites) courtesy of Petrolicious – “The Lamborghini Miura Is Still Untamed”

 

Ferruccio Lamborghini
Ferruccio Lamborghini
Ferruccio Lamborghini with his tractor, Countach (L) and Miura (R).
Ferruccio Lamborghini and his Miura
3 Rules for Tech CEOs

3 Rules for Tech CEOs

1.) Be Bold:

  • Similar to VCs, public investors want to invest in a bold vision. (See Tesla). Why does TSLA enjoy a premium valuation to other Auto OEMs? Answer: Musk’s vision and spin.

2.) Don’t Be Bullied by Investors  Dictate Your Story:

  • Tell the Street you plan to take margins down temporarily to pursue “X” initiative. Investors will cut you slack so long as you explain the rationale, the execution and the intended outcome.

3.) Balance Execution Today with Investment for Tomorrow:

  • Don’t fall into the short-term EPS growth trap at the expense of new product development, keeping your products fresh and building a culture of innovation.
  • If you pursue the short-term – investors will love you in the short-term (fleeting). The key is to build long-term value over years and decades (see AMZN, CSGP and SSNC as examples of the latter).
CEORater Technology Founder CEO Index has Outperformed Year-to-Date<span class="badge-status" style="background:red">Premium</span> 

CEORater Technology Founder CEO Index has Outperformed Year-to-DatePremium 

We created the CEORater Technology Founder CEO Index in 2017 in large part to illustrate our strong belief that founder CEOs are better qualified to lead Technology companies than are “hired” CEOs/ professional managers. The CEORater Technology Founder CEO Index returned 13.0% and 10.5% on a Weighted and Unweighted Return basis respectively (click here for detail) during the January 2nd 2018…

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Technology Companies Led by Founder CEOs Outperform the Benchmark

Technology Companies Led by Founder CEOs Outperform the Benchmark

Our Hypothesis: Founder CEOs Will Outperform Over the Long-Term

We believe that founder CEOs will generally outperform non-founder peer group CEOs as well as broader benchmarks over the long-term. We believe this to be true both in terms of stock market returns as well as operating performance as measured by traditional financial measures such as Cash ROIC, ROE, ROA and Economic Value Added.

We recently created the CEORater Technology Founder CEO Index in part to help test our hypothesis. Over time we plan to operationalize the index to where investors may use it as an investment vehicle (stay tuned).

Founder CEOs tend to take a long-term view of the companies they created (their children). Where hired CEOs focus on the current quarter and year, many founder CEOs want their respective companies to thrive in perpetuity.

Legacy Matters to Founder CEOs

It’s about legacy for founder CEOs:

  • It’s why Jeff Bezos (AMZN) thinks about 50 year increments as opposed to quarterly increments;
  • It’s why Reed Hastings (NFLX) pushed OTT, original content and international investment when many investors wanted a U.S.-focused DVD distribution company;
  • It’s why Bill Stone (SSNC) has built one of largest FinTech companies during a period when much of the Capital Markets industry has become commoditized.
AMZN
Jeff Bezos, AMZN Founder & CEO
NFLX
Reed Hastings, NFLX Founder & CEO
SSNC
Bill Stone, SSNC Founder & CEO

We reviewed Total Stock Returns over the January 3rd 2017 – February 8th 2018 period:

  • The market cap weighted total stock return for the CEORater Technology Founder CEO Index over the measured period was 55.5%.
  • The market cap weighted total stock return for the S&P 500 Information Technology Index (ticker: S5INFT) was 32.0% over the same period.

A CEO Analysis: Part II

A CEO Analysis: Part II

My recent CEORater Podcast where I discussed various Attributes on the CEORater platform that speak to a given CEO’s leadership style. We cover two Attribute groups: “Strategy & Tactics” and “Investor-Related”:

We have incorporated these and other CEO Attributes into the CEORater platform (42 Attributes in total).

The CEO Attributes are based on my experience as an Equity Research Analyst where I covered several hundred public and private technology companies, as a senior executive working within a Mid-Cap technology company and more recently as a technology entrepreneur. Stay tuned for Part III.