What Happened to Motorola

Meanwhile, in arguably one of the worst decisions ever made by a major corporate CEO, Zander struck a deal with his Silicon Valley friend Steve Jobs, the CEO of Apple. Together their companies created a Motorola iTunes phone, the first phone connected to Apple’s music store. “We can’t think of a more natural partnership than this one with Apple,” Zander said at the time. Named the Rokr, the phone launched in the fall of 2005. Jobs, who introduced it, called it “an iPod Shuffle right on your phone.”

Zander says he believed that by working with Apple, Motorola could become cool again. But much as it had taught the Chinese to compete with it years before, Motorola was teaching one of the most creative, competitive, and consumer-savvy companies of all time how to make a phone.

→ Chicago Magazine

The Disruption Machine

Disruptive innovation is a theory about why businesses fail. It’s not more than that. It doesn’t explain change. It’s not a law of nature. It’s an artifact of history, an idea, forged in time; it’s the manufacture of a moment of upsetting and edgy uncertainty. Transfixed by change, it’s blind to continuity. It makes a very poor prophet.

→ The New Yorker

Who Solved the Capitalist’s Dilemma ?

In particular, they observe that capital is allocated toward the type of innovations which increase efficiency or performance and not toward those which create markets (and hence long term growth and jobs.) This itself is caused by a prioritization and rewarding of performance ratios rather than cash flows and that itself is due to a perversion of the purpose of the firm.

→ Asymco

If a Bubble Bursts in Palo Alto, Does It Make a Sound?

The truth is that most Americans have little interaction with the big-money, small-jobs technology boom, so they might be sheltered from the worst of the technology bust, at least as it looks today, if not years from now. But that might be cold comfort: It is a sad state of affairs if one of the most vibrant, explosive and creative parts of the economy — and one of the few that is minting millionaires — seems more like a walled garden than a public park.

→ The New York Times

Still No. 1, and Doing What He Wants

It is good to be the king. It is even better to be Larry Ellison.

Most of us spend much of our lives thinking that we should do the right thing, or worrying that we didn’t do the right thing, or trying at long last to finally do the right thing. Mr. Ellison, the fifth-richest person in the world and the chief executive with the highest total compensation in 2013, appears burdened by no such concerns.

→ The New York Times