Category Archives: Technology

This company might be the first ever $1 TRILLION dollar company [Part 1 of 2]

1 trillion – that’s really a large number. This number is even mindboggling when a single company or entity commands a 13 digit market capitalisation. The closest to hit USD1 trillion market cap as a publicly traded company was Microsoft at USD 619 billion. To put this number into perspective, a trillion dollar market cap will make this company the 16th largest economy in the world in terms of Gross Domestic Product (GDP) measured in 2012, after South Korea (USD 1.12 trillion), a rank above Indonesia (USD 846.83 billion) and bigger than the GDP of other 179 countries.

So which company is in the run to be worth this cool USD1 trillion?

(You know what’s cool now Sean Parker? A trillion dollars)

Google.

if-a-google-employee-dies-spouse-gets-half-pay-for-10-years-6f851f810f

Google stands the likeliest chance to be the first to hit this trillion dollar benchmark. Previously, many thought Apple would be the first. But looking at how both companies are playing their game, more likely Google it will be. Apple is hoarding onto their $145 billion cash with little innovation whilst Google, with only close to 1/3 of Apple’s war chest of $50 billion is carrying out many experiments, innovations and investments. Although much of Google’s revenue is derived from their ads business, they are diversifying their business model and applying their expertise in other large industries (ie. energy, communications, transportation) and also experimenting with moonshots innovation which could someday turn into significant businesses.

Many will argue that Google is taking big risks, and potentially wasting their resources innovating in industries non-related to their core business, entering into industries that they have little experience and going up against incumbents. In fact, even more the reason for a company to invest more in innovation and R&D when their balance sheet is flooded with cash. The consequences of failure is not significant. It won’t take the company down. Another company akin to Google’s diversification strategy and innovative drive is Amazon (as much as Amazon is an innovative giant itself, for various reasons they won’t be a trillion-dollar company any time soon). Here’s what Jeff Bezos, the visionary founder and CEO of Amazon has to say about innovation and taking bets:

Screen Shot 2013-06-16 at 5.18.40 PM
click to enlarge

Better to place bets early when the company is doing fine than when it’s too late.  Shareholders will make less noise with Google, for example, spending $5 billion or even $10 billion on innovation when they have $50 billion in the bank and having good times with their core business rather than when the cash hoard is depleting and the ship is sinking. Remember Kodak or Blockbuster? They failed to innovate with changing times, became irrelevant and they had to file for bankruptcy.

Snapshot of Google’s financials

Screen Shot 2013-06-16 at 5.04.41 PM

Google is worth $290.31 billion today and it’s share price has to grow 3.44x before hitting the trillion dollar value. Currently, Google is trading at multiples of 5.79x and 27.03x their FY2012 revenue and profit respectively. Assuming these multiples hold, Google has to achieve a revenue of $172.65 billion and profit of $37 billion to get to the trillion dollar point.

Since 2008, for the past 5 years, Google has been growing their revenue and profit on average at 18.86% and 20.48% per year respectively.  Assuming this growth rates hold as well, it will take 7.12 years to hit the expected revenue and 6.64 years to hit the expected profit for Google to be worth a trillion dollars. This means Google has between 6.64 to 7.12 years to grow their topline and bottomline to become the first trillion dollar company by 2019 or 2020.

In arriving to this estimation, an assumption is made that these multiples and growth rates remain constant throughout the next 6 to 7 years. Of course, there are many variables that affect the market. No one can predict the market. An economy downturn will slow the growth of Google’s valuation, or a bull market will boost their market cap even faster and higher. But for the sake of this article, we assume for the multiples and growth rates to be constant for easier estimation. Alternatively, if you do have the time, feel free to carry out your own sensitivity analysis with different growth rates and multiples to get more results and please do share it with us.

Is it even reasonable for the assumptions above to remain constant? Google is already such a giant and to grow at these rates, its absolute growth has to be massive and highly unlikely to maintain it. Partly, this is correct. However, I believe Google’s strategy and rate of innovation will give them the chance to be a player in other big industries and become a dominant player in new huge, emerging markets (the bottom billion). With these opportunities combined with Google’s core businesses that are still in growth mode, it doesn’t seem too impossible for Google to be the first ever $1 trillion dollar company. In the words of Bill Gates, ‘we always overestimate the change that will occur in the next two years and underestimate the change that will occur in the next ten.’

[Part 1 is a quantitative analysis of Google’s trillion dollar journey. In the next part that will be more qualitative, I will share my thoughts on the opportunities present and the effort Google is putting in that will take them to the next frontier of market capitalisation and human civilization.]
 
For more info on Google’s financials, visit here
 
This article was originally posted at Rowing This Boat
 
 
Continue reading This company might be the first ever $1 TRILLION dollar company [Part 1 of 2]

Teenagers who are leveraging on Technology to developed great products

A Cheap self-driving cars, charging your smartphone in 20-seconds? These under-20s are changing the world.

Can you still remember what you were doing back when you were 17, or 18-year-old? Doubt it will be anything groundbreaking or world changing, at least for the majority of us.

In the past week, there were 3 young bright minds, all under the age of 20, that made the news with their scientific breakthroughs and engineering project, that could potentially change how we drive our cars, charge our smartphones and even travel underwater!

Here’s a look at these 3  young innovators:

1)  Ionut Budisteanu: cheap, self-driving cars

This 19-year old Romanian high school student developed a technology for self-driving cars. He was awarded the Gordon E.Moore Award and took home $75,000 at Intel International Science and Engineering Fair, a huge international science competition to highlight scientific creation by high school students from around the world.

How’s this different from Google’s self-driving car technology? Significantly cheaper. Google’s system would cost approximately $75,000 while Ionut’s system would cost around $4,000. As people are warming up to the idea that their cars can drive itself, the next concern is how much would such system cost to be integrated with their cars. If Ionut’s technology is viable without compromising quality and safety at this price, consumers will be more willing to pay the additional premium for self-driving option car. But issues like insurance liabilities and regulation will make it a while longer before we will see cars driving itself around us even if the cost of the technology is low.

Read more at: http://www.nbcnews.com/technology/students-self-driving-car-tech-wins-intel-science-fair-1C9977186

2)  Esha Khare: supercharger to charge devices in 20-seconds

It takes hours to charge anything that is battery-powered (ie. your smartphone). Despite all the innovation we see with smartphones and electric car, battery technology always has been lagging. Esha, an 18-year old Californian teen has created a super-fast charging device that can potentially charge phone in 20-seconds. She has only used it to charge a light -emitting diode(LED) so far but she envisions her technology for wider application. She won herself $50,000 from Intel’s event.

Esha’s technology will have a strong positive implication for the transportation industry. Battery-powered electric car is the best alternative currently to replace fuel-combustion engines to combat climate change. Besides the cost of battery vehicles, ‘range anxiety’ or the fear of running out of power is a concern for car owners. Even with many charging stations around, it takes significantly longer than the time it takes to pumping fuel into your current car to juice up your electric vehicle.

Slash that time down to 20-30 seconds and we will see a greener future with more electric cars on the street. Bye bye fog. Oh, and there’s no more need to lug around a portable charger anymore.

Read more at: http://www.dailymail.co.uk/news/article-2327021/Esha-Khare-Teens-invention-charge-cellphone-20-seconds.html

3)  Justin Beckerman: homemade submarine

Unlike the first 2, Justin, 18 from New Jersey did not participate in Intel’s fair. Nonetheless, his feat is worth mentioning.

Still a high school student, Justin is building his one functioning submarine. Not so world changing, as far as I can see. But it is only a matter of time with his engineering talent and passion Justin will come up with some high-impact technology. 

Read more at: http://www.businessinsider.com/high-schooler-justin-beckerman-homemade-submarine-2013-5?op=1

 

After coming across these 3 individuals over the past week, I reflected on our Malaysian education system. Our version of education was to memorise and pass exams, not so much of learning. Application of knowledge wasn’t an important part of the syllabus. Sad to say (and unfortunate for me), the usefulness of what I learnt back in school only started revealing itself when I grew older, in my 20s. Imagine what could be achieved if we were exposed to greater application of knowledge and encouraged to explore creative ways to apply this knowledge as soon as we pick this new knowledge up. Young minds, with their unbounded creativity will surprise us with interesting, potential use of the knowledge they learnt. Little or none was done in our curriculum to allow our young minds to explore our creative side.

Rarely we see primary or high school students achieving feats like the 3 mentioned here. My experience tells me that anything that did not contribute to improving our academic results is deemed useless and irrelevant with exception to the standard sports and musical activities. Anything out of this, your parents and teachers will be really skeptical of it , advise you to quit doing what you are doing and go focus on your studies or attend tuitions. Our current form of education has a narrow scope. In reality, education can encompass many things so long it is adding to the knowledge that students gain.

In my opinion, I think this behaviour comes down to the risk-averse nature of our society. We study, sit for exams, obtain certificates and repeat the cycle. This path is structured and widely accepted and the outcome is predictable which is gaining more academic qualifications. What you put in, you know what you might get out of it. When pursuing something else with uncertain or unknown outcomes, it’s our nature to avoid and discourage such pursuits. Invest all your time and resources but risk getting back nothing is a path that we avoid. Inventions, creation, development and taking our human civilization to the next frontier requires us to explore uncertainties, to take the path not taken. Without it, we stay stagnant. The future of generations after us is determined by how we treat this not-so-structured form of education and the true meaning of learning.

By the way, did you guys learn anything out of Moral Education? I still ain’t sure what I went through this subject.

 

Cradle Coach and Grow Programme

Coach and Grow Programme or CGP is a market driven coaching programme intended to bring together key players in the entrepreneurial ecosystem to support and fortify technology entrepreneurs grow their businesses to greater heights.

“A coach is part advisor, part sounding board, part cheerleader, part manager and part strategist.” – The Business Journal

Photo Credit: http://commons.wikimedia.org/
Photo Credit: http://commons.wikimedia.org/

How can a Coach actually help you in running business?

Yes, it’s true, even the great Steve Jobs had a coach – It was none other than Bill Campbell – who also happened to coach Eric Schmidt (Chairman of Google). It is also true that most top CEOs are heavy users of CEO coaching.

No matter how good you are, a coach can provide an external perspective, share his experience or specific skills or expertise and even act as a sounding board when you need someone to bounce ideas with or provide an honest, independent opinion. We believe that a lot of people, unless coached, are unable to reach their maximum potential. We also believe that leaders who have the best coaching skills have better business results.

Sounds interesting and up for the exciting challenge? Then grab this opportunity to participate in a unique industry-led Coaching Programme. You will receive coaching from not one but TWO coaches who will customise coaching to meet YOUR business needs and goals. These coaches will work with you over a period of 6 months on a group and one to one basis each month. Once coaching is completed, they will continue to be available to you for a further 6 months.

 Coach

And the best part is: it’s absolutely FREE!

Don’t make the same mistakes thousands of companies have before. Be the success story that people talk about. Let the experienced coaches and trainers share their experience and expertise with you. The coaches will work with you to customise strategies for YOUR business.

What’s the catch? You need to dedicate 2 senior management personnel for 3 to 4 days a month (max) for three months. Thereafter you work ON YOUR BUSINESS and have, for the remaining nine months, interactions and access to your two coaches to bring all your plans and strategies to fruition.

If you are serious about making your business a success, then this program is for you.

There are programmes for ALL Stages of growth, whether you just have an idea, have completed your prototype but not yet commercialised, products out in the market but want to create traction fast or even GO GLOBAL!! It doesn’t matter which industry you are in – ICT, Bio, Green, E&E, Energy – we have programmes for all of you. University researchers – we haven’t forgotten you. We have a programme relevant for you. There are only TWO requirements – you are Malaysian or a Malaysian majority owned company and you are developing innovative technology products or services!

We are having a briefing session on 30 May 2013 at Technology Park Malaysia, Bukit Jalil. Please find below details for more information of the briefing session.

Coach

PROGRAMME BRIEFING SESSION

DETAILS
Date: 30 May 2013
Time:  09:00am – 1:00pm
Location:Auditorium, Ground Floor, Resource Centre,Technology Park Malaysia,Lebuhraya Puchong-Sg Besi,Bukit Jalil, Kuala Lumpur
Who Should Attend:Malaysian Companies developing innovative technology or technology related products or services. All industry sectors are welcome.

 

Send in your RSVP at [email protected] or [email protected].

Hurry, seats are limited. Registration closes on 29 May 2013, 12.00pm.

Learn more about the programme at www.cradle.com.my/about/coach-and-grow-programme or call us at +60321810440 or our partners +0389923075 Ms Izniza Afzan Mustafa Albakri.

 

Agenda:

Time Programmes
9.00am – 9.20am Registration
9.20am – 9.30am Opening remarks by Technology Park Malaysia
9.30am – 10.00am Presentation: Cradle Investment Programme (CIP) FundingBy En. Ahmad Nizam Ismail, Senior Executive, Strategic Partnership
10.00am – 10.30am Presentation: Cradle Coach & Grow Programme (CGP)By Dr. Sivapalan, Chief Evangelist, Proficeo Consultants Sdn Bhd
10.30am – 11.00am Break
11.00am – 11.15am Sharing Session with CGP2011/2012 Entrepreneur (1)By En. Yusno Yunos, Y Us Sdn Bhd
11.15am – 11.30pm Sharing Session with CGP2011/2012 Entrepreneur (2)By Mr. Tham Keng Yew, Socialwalk Sdn Bhd
11.30pm – 12.00pm Dialogue Session with the agencies – facilitated by TPM reps
12.00pm – 1.00pm Networking
1.00pm Session ends

Note* This article is provided by Cradle.

 

How Nick D’Aloisio made his $30 Million

What’s he doing with $30 million? As Nick D’Aloisio says, “I can’t even buy a car because I don’t have a licence yet.” So he’s going to buy a new bag. Why? “Mine is broken; it’s old and the strap’s not working.”

Recently, Yahoo bought 17 year old Nick D’Aloisio’s iPhone app, Summly, for $30 million. When Yahoo was founded in 1994, Nick wasn’t even born yet.

Nick D'Aloisio
Photo Credit: Kmeron


3 STEPS ON HOW NICK D’ALOISIO GET TO $30 MILLION

Nick’s app has delivered over 90 million news summaries in the four short months since he launched it on his 17th birthday in November. But Nick isn’t even old enough to be a Director of his company, so his mum is the Director while he sits in as Company Secretary.

What has gotten Nick D’Aloisio to success so quickly in 15 months when so many of us are still struggling after 15 years? Here’s 3 steps his journey has in common with most super-success stories:

 

PROBLEM + PASSION = $300K SOLUTION

Nick’s Summly App was the solution to a real world problem that no one else was solving well. As Nick relates, “I was 15 years old and I was revising for some kind of history exam. The problem was I was trying to find information that was useful to me.”

Searching Google on his phone didn’t give him enough detail to know what was or wasn’t a useful link. So he put his own iPhone app together. The app quickly rose up the download ranks and Apple featured it in their store.

Then came a fateful email: “About a month later, the private fund of the Hong Kong billionaire Li Ka Shing cold emailed me and expressed an interest to invest, but they didn’t realize I was 15…It turned out that they actually liked my age because it demonstrated I was net-native, so I’d only grown up with the Internet. They flew to London about a month later and invested $300,000. That kick-started this whole journey.”

 

$300K FUNDING + EXPERTISE = $1.3M REPUTATION

Nick D’Aloisio used the money to bring in world experts to help relaunch the app. At 16 years old, he teamed up with the leaders in Natural Language Processing, Stanford Research Institute (Who create Apple’s SIRI – named after the company’s initials, SRI).

In between high school classes in London, Nick worked with SRI in the US by phone and text messages to build the new app. SRI’s solid reputation and Nick’s focus on approaching well known celebrities to help him attracted high profile investors Stephen Fry, Ashton Kutcher and Yoko Ono who invested $1.3 million. Nick made the most of his investors, with Stephen Fry starring in the launch video for Summly.

 

$1.3M REPUTATION + SINGLE-MINDED FOCUS = $30M STORY

With world class partners and world class investors, Nick D’Aloisio gave up full-time school at the end of 2011, with his parent’s blessing: ““I talked about it with them and my headmaster and we decided it was a once-in-a-lifetime opportunity and it would be silly not to run with it. Now, looking back, I can say it was a massive gamble. But it was a good gamble.”

From a standing start to $30 million, Nick has taken the age old 1-2-3 formula of solving a problem in a smart way, then using the resources he attracts to bring in the best talent, and leveraging that to attract the most influential partners.

What made him think he could just go and knock on the door of the best companies and most well known people in the world? As he says “I was naive. I didn’t know I couldn’t.”

Nick D’Aloisio is now reflecting on this week’s news: “Numbing is probably the best word to describe it. It’s a shock to be honest. The only thing I can take from this is that I’m genuinely kind of proud that I’ve been getting a lot of tweets where young people are commenting and saying, “This is really inspirational, I want to go and start my own thing.”

How many of these 3 steps in the 1-2-3 formula have you taken in your business? What can you do to upgrade your product, your talent or your partners?

Or maybe it’s time to be a kid again, be naive again, when you didn’t know you couldn’t. And start something entirely new.

3 Success Strategies of Sir Richard Branson

Iconic to entrepreneurs and business owners from across the world, Sir Richard Branson has not only been a successful entrepreneur with inspiring success stories to share. But rather, he has also come a long way through many business ventures which may not have worked out throughout the years. For an entrepreneur who embraces Risk and the ‘Screw it, Just Do It!’ attitude, he is still doing just that!

Continue reading 3 Success Strategies of Sir Richard Branson

Entrepreneurs and Startups in Malaysia to Benefit from new Silicon Valley’s BootstrapLabs Launch

Silicon Valley-based BootstrapLabs, and Malaysia-based MAD Incubator today announce the formation of BootstrapAccelerator Asia. This will form the first Southeast Asia-focused Tech Startup Accelerator with a Silicon Valley Fast Track™ for promising Startups in Malaysia, with opportunities to gain access to incubation opportunities, funding and networking for business growth. Continue reading Entrepreneurs and Startups in Malaysia to Benefit from new Silicon Valley’s BootstrapLabs Launch

An Ad That Shows A Secret Messages To Kids

Recently in Gizmodo, they highlighted an very innovative ad that can show two messages. 1 for adults and 1 for children. This ad is targeted to those kids who are suffering from child abuse and shows a hidden message from the adults.

This is done by the same technology used by some 3D TV and it is called lenticular display which show a different image if viewed from a different angle.

ANAR Foundation manages in Spain the european unique phone number 116 111, to attend children and teenagers under a risk situation. On this telephone number, only for minors, they can find the help they need in a totally anonymous and confidential way. But, how can we get our message to a child abuse victim, even when they are accompanied by their aggressor?

Knowing the average height for adults and children under 10,GREY has created two different messages. Using an outdoor lenticular we show adults an awareness message, while children see a message where we offer them our help and show them the telephone number. A message only for children.

Military Business is Big Business

In my study abroad year in the U.S. as a Department of State’s scholar, I was extremely lucky to be placed by World Learning in the Washington D.C., the capital of the nation and also the center of economics and politics. It was during that time that i had the opportunity to learn about the Military Business and why it is a Big Business and a Solution to Solve Financial Crisis. Continue reading Military Business is Big Business