Category Archives: Innovation

GET YOUR OWN ‘BOTS

OR RISK BEING PUT OUT OF BUSINESS BY THEM

by Howard Tullman

Don’t fear the bots. They’ll free your company from unprofitable and tedious work. Yes, some jobs are going to be displaced. But the ones that are left and the new ones the bots will create will be more productive and way more interesting.

I realize that it’s a little frightening for many of us when we hear some of the intimidating statistics about headcount reductions in more and more industries that are being driven by the growing deployment of what we’re generically calling “bots.” But I don’t think bots are so bad for business. I realize that, while the major shifts are just beginning, we’re already talking about the displacement of thousands of analysts and adjusters in the insurance and finance industries as well as hundreds of highly-paid attorneys in sectors of the banking business. The sooner you figure out how to incorporate and deploy these little time- and money-savers, the better off you and your business will be. And that goes for businesses of all sizes.

Excepting some of the folks who will be replaced by these efficient and energetic little wonders, it will be a break for the better. Honest. No one in their right mind will miss any of the boring, repetitive and utterly useless tasks that are a painful part of too many of our jobs. If your tasks can be reduced to a set of instructions and rules that need to be repeatedly and flawlessly executed, we’ll soon enough find a program or a machine to do that work better, quicker and more accurately than you– and to do it 24/7 as well. No one argues with that part of the equation. We’d all love to be freed up from our chores and be doing exciting, creative and constructive work.

The rub comes in the rest of the story – the ratio and the scale of the jobs being eliminated as compared with the new jobs available to replace them. To quote Bruce Springsteen, in My Hometown, “Foreman says these jobs are going boys and they ain’t coming back.” Take a look at the hospitality business as a simple example. Airbnb is closing in on Marriott’s $42.7 billion market cap (it’s already worth about $10 billion more than Hilton), but the employee headcounts of these companies are in different universes. Marriott employs more than 225,000 people, Airbnb about 3,500– yes 3,500 employees. And I’m not just picking on Marriott. Hilton has about 170,000 team members. You can argue that some of those people are doing different and allegedly irreplaceable functions. But in the end, the real question is whether the customer/guest’s needs are being more than met. None of Marriott’s guests really cares about whatever it is that fills the day for those extra 400,000 workers. I’m not even sure that most of their managers know what makes up their day.

When you couple the substantial reductions in the workforce with the readily-demonstrated and clearly impressive gains in productivity and lower operating costs that we’re also seeing, it’s clear that there are major bumps in the road ahead and significant disruptions in the ways business has traditionally been done. This is especially true because the vast majority of these changes are neither complicated in regard to the technologies nor costly in terms of the required capital. Low-hanging fruit abounds. JP Morgan Chase reports eliminating more than 350,000 hours of legal document review time per year by employing bots and smart contracts.

When I use the term “bots,” I’m not talking about anything as challenging as truly intelligent agents or even anything autonomous. I’m talking about simple lines of code– and not that many– that can successfully execute instructions and directives or commands that are well-established and documented by humans. I hate to call any of this stuff artificial intelligence. At best it’s augmented and extended intelligence. The intelligence being extended is ours; the folks being augmented are us. We’re talking about systems and tools that will help us perform routine tasks with minimal supervision or ongoing direction, and essentially automatically, upon request. Every business still has some of these pockets of obvious inefficiency and it’s mainly ignorance of better options and inertia that keeps them from realizing immediate improvements and significant cost savings. Your business does too, and the sooner you do your own audit and analysis, the better off and more competitive you’ll be. (See Use a Mirror to Mind Your Own Business First)

There are opportunities everywhere, but the sweetest spots for almost any business seem to fall into four recurring buckets. Forget about chatbots and retweeters. Focus internally first where you can get the biggest bang for your buck and where you can ride on existing rails. The people providing support and resources in this emerging space are few and far between right now, but they tend to target these critical areas: HR, Finance, Operations and Sales. I know, you’re already saying, “well duh, that’s just about the whole business”, so trim it down to HR and Finance and start there. Eat the elephant one bite at a time.

One of the best providers is an 1871 alumni organization called Catalytic/www.catalytic.com/> whose tagline says it all: “Do more of what you love, and less of what you don’t.” They are smart enough to understand that they are in a “rinse and repeat” business so that each time they build a new process bot they create the ability to provide a version of that same solution to thousands of other businesses more efficiently, more rapidly, and less expensively. They talk about concrete client results delivered in days, not months or years.

And, to be successful, you need a plan that’s ongoing and iterative and that’s always targeting and attacking the dumbest things you are doing. In many cases, it’s an approach that follows the same basic steps: digitize and dump the paper; speed up the flow and the inter- and intra-departmental handoffs; automate as many steps in the process as possible; measure the results; and do it again. It needs to become a habit and a mantra of your business—always moving to raise the bottom and improve the average.

It’s interesting to watch the adoption cycle as well. It’s both competitive and contagious. The more you do; the more your people will want to do and, interestingly enough, you’ll have them bringing suggestions and ideas to you for next steps–forward integrations into other programs like Word and Excel, for example—instead of sitting on their hands and bitching about the bots.

The dashboards and the flow charts that you now have access to provide levels of actionable information and data that were never available before. Frankly, these are the exact tools that you need to move your business forward. Managing by exception rather than brute force is the only way to spread your scarce and costly resources around.

 

 

Howard Tullman is the father of Chicago’s 1871 incubator.

Read his bio on Wikipedia: https://en.wikipedia.org/wiki/Howard_A._Tullman

Check out his websites at http://tullman.com/  and http://tullman.blogspot.com/

Or just type his name into your favorite search engine.

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This article previously appeared in Inc.

Image Credits – Getty Images, MS Office

Chicago Venture Magazine is a publication of Nathaniel Press www.ChicagoVentureMagazine.com Comments and re-posts in full or in part are welcomed and encouraged if accompanied by attribution and a web link. This is not investment advice. We do not guarantee accuracy. Please perform your own due diligence. It’s not our fault if you lose money.
.Copyright © 2017 John Jonelis – All Rights Reserved
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HOW HYPERLOCAL ECONOMIES EVOLVE

By: William Arrington

The original intent for this follow up to Hyperlocal Social Economies (HSEs) was to focus on how businesses can participate in these targeted consumption markets. I think this is an appropriate time to discuss how HSEs may evolve. Before diving in let’s quickly recap what comprises an HSE market:

  • A group of consumers with similar lifestyle and consumption patterns (i.e. friends)
  • Common set of goods/services consumed by the group
  • Competitive market for said goods and services
  • Goods and services are geographically unbound

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Filed under angel, angel capital, angel investor, big money, Economics, Entrepreneur, Entrepreneurship, Entrepreneurship and Politics, Financial Markets, Free Trade, Innovation, Innovation and Culture, Internet Marketing, Marketing, Relationships, Startup, startup company, vc, Venture, venture capital

STARTUP OF THE YEAR

by John Jonelis

Here’s a Chicago Area startup that brings pleasure, relaxation, and satisfaction to tired business people, gets them out in the open air, away from the pressures of the big city, and teaches them to smile again. Does that sound like a worthy goal?

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I think so.

Now imagine you’re in waters bounded by trees of all kinds—not a house or building in site! No water skiers. No high-powered outboard motors. Not a boat of any kind!

Well, can you imagine that?

Ah!

You see the flight of the blue heron, the bald eagle, ducks and geese. A couple of otters. Nobody in your boat sets eyes on another human being all day long! Sound good so far?

Ah!

This is nature in the raw. You’re drifting a wild river—in strong current—strewn with huge boulders. As you make your way downstream, you shoot several rugged rapids. But due to the skill of your guide and his specialized boat, the ice in your martini glass is never disturbed. You feel at ease the entire day.

Ah!

You bring along a hat, polarized sun glasses, a rain jacket, but no fishing gear. Your guide hands you an expensive Orvis 8-weight fly rod. It feels surprisingly natural and light in your hand.

Maybe you never cast a fly rod before, but your guide gives you a few pointers and moves the boat a little closer to the target—just to make it simpler for you. Now you’re casting hand-made six-inch streamers at the banks with ease. Soon you find out why the fly rod is favored on the river. It’s the most efficient tool for the job.

And fly-casting is therapeutic and highly relaxing.

Ah!

Soon you thrill to strikes from trophy smallmouth bass that fight like a tigers. The fish here grow fat as footballs. Landing one in the heavy current on a fly rod takes all your skill and strength. I can think of nothing else that gives this kind of peace and satisfaction.

Ah!

Ah!

Wahoo!

Hooray!

Yes, we all dream of exotic trips to faraway places. But this one requires no passport. No airplane tickets. All this is happening on the Wisconsin River—a three-hour car ride from Chicago!

Wanna go?

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Hoo-boy!

You gain entry to this paradise in an unusual little boat—a specially designed dory—incredibly maneuverable—easily able to withstand these rocky rapids.

Motorized aluminum rowboats and jon boats risk ripping open their bottoms and ruining their props and lower units on submerged rocks. Electric trolling motors are useless. These rapids swamp canoes and challenge kayaks. A $75,000 bass boat wouldn’t last an hour.

But the diminutive dory makes for safe passage and provides a comfortable and stable platform for you to cast your line with accuracy. It makes the raging water seem calm.

Ah!

Your guide controls the boat with incredible precision using oars.

Yes—oars!

The specialized equipment and the guide’s skill allow you to gain entry to this paradise. Almost nobody else can get in here. That makes for very little fishing pressure. That means abundant game, eager to attack your offering. And the bass here are much larger than those found on famous rivers out east.

Now, THIS is what I’m talkin’ about!

Abe Downs—a chemist by profession—runs Great Northern Fly Fishing out of Stevens Point Wisconsin—just three hours north of Chicago. He’s an Orvis-certified guide and brings his scientific training and businesslike professionalism to bear alongside his extensive fishing knowledge. He’ll even get you a discount at a local restaurant.

Abe switches to musky with the fly rod in the Spring and Fall and scores a good percentage of the time. I love fishing musky but they’re called “The Fish of a Thousand Casts” with good reason. In contrast, these huge smalleys seem always voracious for a meal—even after a cold front! They fight harder than pike. And they bite in the summertime!

Okay, I hear the objections. This ain’t no startup because—because what? Because Abe doesn’t plan to grow like Uber?

Bosh! This little company may not present an investment opportunity for your venture capital fund, but it’s a startup all the same—and quite a successful one. He’s booked most every day of the season. Like a tech startup, he makes use of specialized technology and proprietary knowledge to operate the business. Few can compete in his niche.

And he brings pleasure, relaxation, and satisfaction to himself and his clients. Does that sound like a worthy goal?

I think so.

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On one trip this summer, my fishing partner was my son. On another, it was my friend, Rod Erickson. Neither fished with fly rod and streamer ever before. Both learned quickly and—truth be told—out-fished me. I think Abe is a good teacher.

Photography by John Jonelis, Robert Jonelis, and Rod Erickson

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Great Northern Fly Fishing

Abe@GreatNorthernFlyFishing.com

715-572-3225

1020 Tree Lane, Plover, WI 54467

 

Chicago Venture Magazine is a publication of Nathaniel Press www.ChicagoVentureMagazine.com Comments and re-posts in full or in part are welcomed and encouraged if accompanied by attribution and a web link. This is not investment advice. We do not guarantee accuracy. Please perform your own due diligence. It’s not our fault if you lose money.
.Copyright © 2017 John Jonelis – All Rights Reserved
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INVESTORS LOSING PATIENCE WITH PIVOTS

by Howard Tullman

There’s no polite or easy way to say this, but winter is on its way in the venture world. It’s getting tougher and tougher for startups caught in the lukewarm limbo between ideas and invoices to get their early backers to up their bets especially when it’s not clear that they’ve found a viable business model and/or a way to stop the bleeding sooner rather than later. Too many pivots with too little to show for the dollars down the drain and pretty soon no one wants to hear your, “someday soon,” story or your next grand plan.

dice

And if you’re not breaking even, no bank will look twice at your business or your balance sheet. This change isn’t restricted to the unicorpses in the Valley; it’s going on in every village where waves of wishful thinkers are starting to wonder what hit them.

My sense is that the smart investor conversations taking place today aren’t very often about the company going big for the gold or about the current investors doubling down so some startup can shoot for the stars. These increasingly cranky chats are less about excitement and enthusiasm and much more about ennui and possible exits. Because the two things that some early investors and every VC understands are sunk costs and opportunity costs.

While the entrepreneur is sweating survival, the investors are trying to decide whether their incremental dollars would be better spent on a new deal elsewhere. These are the days when easy money gets hard.

Those great gluten free sugar cookies (from the hip new bakery down the block that just shut its doors) are tasting more like ashes in their mouths and they’re asking themselves how they ended up sitting in a room with no doors feeling like some sucker after the circus left town.

The unhappy folks who are still sitting at the table (more likely associates now than the partners who got the ball rolling) aren’t talking about how much more money they can put to work; they’re trying to figure out how little additional cash they can put up to preserve what’s left of their position.

cash

Everyone is telling you that they’re really not inclined to do much of anything at all if you can’t drag some new money from outside players to the table to help set the price and get the next round started. Flat valuations in times like this are the new “up” rounds and there are down rounds galore.

This is a Plan B world at best and the down and dirty talk on the limo ride to LaGuardia almost always includes whether to also shoot the CEO while they’re in the process of trying to clean things up and save a little face. So if you’re the one on the bubble, forget Plan B, and get started on what I call Plan C. You need to get a head start on talking about the tough choices and critical changes that need to be made.

It’s about figuring out what immediate actions you can take that will make a difference before they turn the lights out. You can have results or excuses, not both. Focus on facts rather than futures if you want to be there when things turn around.

And forget about playing the blame game – no one cares.

Plan C is all about choices: contraction, consolidation, combination, conversion, and concessions. The last C is closing the doors and that’s not a sight that anyone wants to see. So find out which of the C’s makes the most sense for your startup.

contraction

Contraction

Just suck it up and admit it. You can’t be all things to all people and no one ever has been. Focus on what sets you apart and what represents the best prospect of a long term sustainable competitive advantage for your business and forget everything else. Don’t apologize, don’t try to explain, just buckle down and get the job done. The recent launch of UberEats in Chicago (as an “instant” meal delivery service) and its almost immediate abandonment of that commitment is a good example of knowing when to hold ’em and when to fold ’em. It doesn’t take a genius to figure out that it’s pretty stupid to open the umpteenth home meal delivery service in Grub Hub’s hometown.

Businesses that scale too soon and which are a mile wide and an inch deep are doomed for many reasons, but the clearest and most telling is that they can’t cost-effectively engage with, support, or connect to their customers because the customers are simply too few and too far between. It’s critical to nail it before you scale it and, if you’re grossly overextended, your business is going nowhere.

consolidation

Consolidation

Shut down the stupid San Francisco office sooner rather than later. You had no business being there in the first place and the fact that you doing no business there ought to speak for itself. San Francisco may be the most overheated and least representative market in America. Everyone there drinks the KoolAid for about 10 minutes and then moves on. Building a new business there is as slippery and unstable as trying to nail Jell-O to a tree.

New York should be next on the list. NYC isn’t a city – it’s 5 or 6 different marketplaces all mashed together – with a million people just waiting to eat your lunch. Your business expansion needs to be driven by actual demand, feasibility and real opportunities – not by some investor’s fantasies and/or fables about life in the Big Apple foisted on the public by the media and by people barely making it in Brooklyn.

combination

Combination

Take a careful look around and see who else in your space (or adjacent to it) is doing things right and see what the prospects of some kind of combination may be especially if your market itself continues to be more cluttered and competitive. We hear constantly that the shared/surplus economy or the “Now” economy continues to grow fueled by millions of millennials holding multiple jobs. But tracking the gig economy isn’t quite that easy. While the number of multiple job holders has in fact grown dramatically, the percentage of the number of people so employed as compared to the total number employed has been flat or down over the last decade.

We had a great example of a timely and smart combination recently in Chicago where Shiftgig and BookedOut got together and decided that there were all kinds of economies and opportunities in a merger as well as the sheer relief in knowing that they could stop trying to beat each other’s brains out in the market. They are both players in the increasingly crowded space which the Commerce Department is trying to define as “digital matching firms.

Shiftgig was bigger and better established, but BookedOut had a lot of momentum and was gaining important traction in the experiential marketing sector. Now instead of spending time building duplicative back ends and other redundant systems and offerings, they can bring a single story to the market in a cleaner, more efficient and less costly way. This is exactly the kind of story that all of their investors wanted to hear.

It’s not easy in any market to attract the technical talent, the motivated sales people, and the operations folks that you need to grow quickly and a well-planned and thoughtfully executed combination can demonstrably accelerate the process. You need to be careful to make sure that the companies’ visions are aligned and that the problems they’re addressing are similar and that the cultures of the businesses (and the leaders in particular) aren’t in conflict.

These things aren’t made or broken in the board room when the papers are signed, they rise or fail in the implementation and the execution. But in today’s world, it’s often a lot better and smarter han trying to go it alone.

conversion

Conversion

Sell some of your stuff to someone else. You may be great at lead generation and lousy at closing the sale once those prospects show up at your door. Or you may be a great sales organization that sucks at fulfillment and customer service. When you look at your skill sets and your customers, users, clients, etc. through a different lens—looking at them as potential assets to be converted or sold to some other enterprise, it helps you see more clearly exactly what kind of business you’re building. It may make the most sense to look at your company as a conduit or an intermediary and not as a one-stop shop trying to meet all the needs of the marketplace. You’ve got to play to your strengths and build on those if you’re planning to stick around.

concessions

Concessions

Maybe your pricing made sense in some early fever dream where you were the best and only player in the space, but now there are fast followers and clones everywhere you look and their offerings (at least on the surface) look a lot like yours. Once your customers start talking about price, you’re on a very slippery slope.

 

Conclusion

Here’s the bottom line. In the long run, you can’t save your way to success and it’s no fun to fire your friends or postpone your pet projects. But if you don’t survive during the difficult times, you and your business won’t be around to savor any success down the road. Do what needs to get done and do it now.

 

Big Gulp from Howard Tullman

About the Author

Howard Tullman is the father of 1871 and Matter—the huge Chicago incubators.

This article appeared previously in News From Heartland

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References

Shiftgig

BookedOut .

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Chicago Venture Magazine is a publication of Nathaniel Press www.ChicagoVentureMagazine.com Comments and re-posts in full or in part are welcomed and encouraged if accompanied by attribution and a web link. This is not investment advice. We do not guarantee accuracy. Please perform your own due diligence. It’s not our fault if you lose money.
.Copyright © 2017 John Jonelis – All Rights Reserved
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Filed under 1871, angel, angel capital, angel investor, big money, Chicago Startup, Chicago Ventures, Economics, Entrepreneur, Entrepreneurship, Heartland Angels, Innovation, Invention, investor, Startup, startup company, vc, Venture, venture capital

MILLENNIALS ARE BECOMING OBSOLETE—ALREADY!

by Tom McBride

The first time I heard the word “obsolete” was when I overheard my father talking to a stranger on a bus. They were speaking about a new expressway that the city had built, and the stranger said, “That thing was obsolete before they ever opened it.”social media MS OFFICE

I was impressed. I went home and looked up the word. And in time I realized the stranger was right. The builders of the new road had put in four lanes but should have put in six. Soon enough, traffic was snarled, and eventually cars started avoiding the route altogether. Then the side streets became overcrowded with autos. The whole thing was a mess.

“Obsolete” was a terrible word. It still is. If something or someone is obsolete, then he, she, or it no longer works. He, she, or it languishes in irrelevance. And then he, she, or it comes to be avoided altogether. Everyone would rather take the side streets. Obsolete things are just in the way. They are like old professors on college campuses. The young sneak behind buildings in order to avoid them.

Today’s Millennials are not obsolete—yet. Born between 1980 and 2000 they came to this planet during a fairly prosperous time, so they represent a population glut. There are already more Millennials alive than Baby Boomers, who constituted the mother of all population explosions.

percent of workforce MS OFFICE

Corporations are working overtime to figure out how to market to this bunch of fickle young consumers, who have an embarrassment of choices. Human resources directors are wondering how to motivate them in the workplace. They are praised for wanting a more healthy balance between work and life (some of them think overtime is evil), and they are feared, almost, for being digital natives. Unlike the rest of us, they grew up high-tech, so what do they know about cyberspace that we don’t?

phones and tablets MS OFFICE

Others can’t stand them—why won’t they look us in the eye at Starbuck’s instead of staring at their phones all the time? And a few of us older people see them as symbols of a world we don’t want to have much to do with. The whole idea of “looking something up on your phone” (which has more data than your local public library) seems repugnant somehow.

infographic MS OFFICE

But there’s one thing these non-obsolete Millennials can’t avoid: In time, they will become obsolete, like the city expressway of my childhood. They will seem irrelevant. They will be in the way. Young people will hide from them. The new generation will have to work around them.

The question, though, is how can Millennials tell when they’re becoming outmoded?

startup venture MS Office

Like, invest in my startup, huh?

The answer is simple. It’s when they start beginning sentences with “These kids nowadays…” I’ve heard early rumblings of this sentence, as when an older Millennial said of younger Millennials, “These people just take wireless computing for granted.” He was too young to say “these kids,” but give him another ten years.

loft MS Office

The truth is that older Millennials are already far enough along to have teen-aged children. A Millennial born in 1980 is now thirty-six and may well have a fourteen-year-old around. In just ten years that will be true for Millennials born in 1990. They will enter that most dreaded source of becoming old-fashioned and resented: parenthood. And then you will hear such sentences as these:

“You kids have it so lucky. We actually had to flip switches to get lights on in a room—none of this decadent voice-activation stuff.”

“You’re lucky, you kids: When I was your age we couldn’t get our genes edited at birth to make us better-looking.”

robot MS Office“When I was your age, we didn’t have to pay extra to get an actual human being to teach us calculus—unless you kids can learn on a machine, you’re going to bankrupt me.”

“Yes, that’s right, kids. Only when a political party isn’t in power does it object to big government deficits. That’s the way it’s always been. Don’t think that you kids can change it!”

“You kids just trust technology too much. I don’t want to have a robot remove my appendix even if it is cheaper.”

Do you hear the notes of weary impatience in these sentences? Do you detect the tone of resentment in the voice of older people when they encounter the youth and idealism of their kids? Do you sense the envy of the young? Do you pick up on the fatigue of bearing parental burdens?

time magazine MS OFFICE

Yet every one of these sentences will be spoken by…a Millennial. They will be speaking to their offspring, which will be called something like Generation Alpha.

And what about the rest of us—old Boomers and Gen X types? Most of us will be even better than obsolete. We’ll be dead.

But don’t you feel better knowing that these young whippersnappers today will also go the way of all flesh? That’ll be true even if, as predicted, people will be immortal by having their brains downloaded into a computer.

Eventually, even the computer will become…obsolete! Ha!

Cell Phone Girl MS Office

Tom McBride is co-author of The Mindset Lists of American History

and The Mindset List of the Obscure,

and the author The Great American Lay: An All Too Brief History of Sex.

He lives in southern Wisconsin.

Graphics from MS Office.

This article appeared in News From Heartland

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CHICAGO TECH’S NEXT CHAPTER

At Tempus, Ocient and Catalytic, Chicago’s most prominent entrepreneurs are moving on to their next big thing.

by Jim Dallky

Chicago tech is growing up.

One sign of a maturing tech ecosystem is the success of a city’s serial entrepreneurs, and recently we’ve seen some of Chicago’s most high profile founders and technologists move on to their next companies, and tackle big industries like the Internet of Things, cancer research, and artificial intelligence.

Uptake - ChicagoInno

Look no further than Groupon founders Brad Keywell and Eric Lefkofsky. Keywell brought Uptake1 out of stealth in 2015, and the fastgrowing IoT startup has already raised $45 million at a $1.1 billion valuation. Lefkofsky left his CEO role at Groupon last November and, as we first reported in July2, has since been working on Tempus3, a healthtech startup that’s “building the infrastructure to modernize cancer treatment.”

 

Ocient - homepage

Also in July, Cleversafe founder Chris Gladwin, who sold his data storage company to IBM in 2015 for $1.3 billion, unveiled4 his next startup Ocient5. Gladwin has yet to make Ocient’s product plans public, but the software company expects to “ultimately hire hundreds of local employees.”

 

pushbot - website

Sean Chou, the former CTO and employee No. 2 at Fieldglass—which sold to SAP for more than $1 billion—recently, launched Catalytic6, a startup building chatbots for businesses. The company’s platform, Pushbot, helps enterprises “build, run, and improve your processes.”

 

bright - website

You can also look at Jeff Judge, the founder of Signal (acquired by BrightTag in 2014) who’s now building business metrics platform, Bright.7

Kickstarter cofounder Charles Adler is giving entrepreneurs, creatives and makers a better place to work with the Center for Lost Arts8; Motorola veterans are spinning out to create new hardware startups like John Renaldi’s “invisible wearable” company Jio9; along with many, many other founders who are on to their next project and have committed to building in Chicago.

“Certainly, as a community, I think we are maturing,” said Illinois Technology Association CEO Fred Hoch. “It’s being driven a lot by those serial entrepreneurs that are coming back and doing their next thing.”

Hoch described how the city experienced an “excitement period” 3-4 years ago where a lot of startup activity was taking place but, “a lot of bullshit was being developed…things that don’t have a long-term revenue stream.” Chicago’s strength as a tech city is in B2B, Hoch said, and Chicago tech has started to get back who it is as a community. “What’s happened over the last 18 months is that we’ve come back to realize who we are,” he said. “[Entrepreneurs] are not thinking about dog-walking apps. They’re thinking about big things that affect businesses nationally and globally.”

1871 CEO Howard Tullman added that Chicago also has a handful of who he calls “benchers,” successful entrepreneurs who are taking some time off but will likely “be back in the action in a reasonably short time.” This list includes Fieldglass founder Jai Shekhawat, AKTA founder John Roa, and Roger Liew, the former CTO of Orbitz. Tullman also said that 1871 isn’t just full of first-time founders. There are dozens of serial entrepreneurs working out of the Chicago tech hub.

“People don’t understand that the 1871 members aren’t remotely all first timers,” Tullman said. “We have several dozen serial entrepreneurs working here and building their next businesses who are smart enough to avoid making sizeable infrastructure and other capital commitments until they determine whether the dogs will be eating their new dog food…we are definitely seeing a wave of more seasoned, more talented and more aggressive serial entrepreneurs—all working in Chicagoand, largely using their own resources to start the next group of great tech businesses right here.”

Of course, as Chicago’s tech community matures, it doesn’t come without growing pains. Some of the city’s most prominent startups have gone through layoffs in recent months, with Avant firing 60 employees and Raise trimming 15% by cutting 45 people. And the city is still well behind other markets like New York and Boston when it comes to total venture funding.

tempus - website

Tempus

 

But Chicago is proving to be a city where entrepreneurs are willing to double down after successful exits, and that’s good news for the future of Chicago tech.

“We’ve come a long way in the last 10 years,” Hoch said. “[Entrepreneurs] are choosing to stay and be a part of this community because it’s a strong community now.”

 

About the Author

Jim Dallke is the Associate Editor of ChicagoInno of Streetwise Media, where this article previously appeared.

This article appeared in News From Heartland

 

 

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Chicago Venture Magazine is a publication of Nathaniel Press www.ChicagoVentureMagazine.com Comments and re-posts in full or in part are welcomed and encouraged if accompanied by attribution and a web link. This is not investment advice. We do not guarantee accuracy. Please perform your own due diligence. It’s not our fault if you lose money.
.Copyright © 2017 John Jonelis – All Rights Reserved
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TO BE OR NOT TO BE HACKED?

by William Shakespeare,

alias Moises J. Goldman and John Jonelis

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Hamlet—To be or not to be hacked? That is the question. Whether ‘tis nobler to suffer the slings and arrows of outrageous fortune, or to take arms against a sea of phishes, gouged by creatures who boast no scruple, nor affect any purpose higher than foul destruction—and by opposing, end them?

[Editor’s translation—Hackers are a bummer. This is war.]

 

William “Moises” Shakespeare

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Or may say ‘tis wiser to remain in dungeons rank and old—to sleep, perchance to dream—ay, there’s the rub. For in that sleep, what dreams may come? The internet makes cowards of us all.

[Editor’s translation—Should I upgrade the robustness of my internal infrastructure and firewalls?]

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Horatio—But soft, me lord, to think upon the many turns a kindom make.

Betwixt two means shall we choose to take.

[Editor’s translation—There are two good options.]

 

Hamlet—Ay, the dilemma. To guard an angry pack of dogs that tear and rent and hack away till strength and blood be spent—or flee? How wouldst thou fight, Horatio? I would not hear your enemy say you could do it. Nor shall you do my ear that violence.

[Translation—Don’t feed me a pack of lies. If we encrypt all sensitive data and cyber-secure our network we still can’t achieve fail-safe.]

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Horatio—Hear me lord; I make my case:

Should bits and bytes habitate high Cloud

A kingdom’s gold to free?

No arms, no knights, no castle wall to tug a purse’s string so proud!

‘Stead exult in markets, foul of hogs and sheep and goat?

Entice the sorcerer to play in darker art, in unknown moat?

To raise a legion—conquer lands anew beyond the sea?

And so extend a kingdom’s reach?

[Option #1: The Cloud is cheap.  Save your money for marketing, R&D, and expansion.]

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Hamlet —Methinks this boy hath soundly grounded thought. He makes PaaS-ing SaaS at learning dearly bought. It takes no brain to buy his train of thought.

[Seems like a no brainer. The Cloud.  Platform as a Service—Software as a Service. Let’s do it!]

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Horatio —But soft, me lord, I fear foul play!

This Cloud by wild winds be cast astray.

It boasts no force to hole such gauze with tumult and in fray,

And by doing so, steal treasury of intellect away.

‘Tis best, to build yon castle walls of stouter stuff, some say.

Keep bytes and treasure close and spend on fodder and on hay.

[Option #2: The Cloud is way too vulnerable to attack. Update your in-house network.]

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Hamlet —Wouldst thou squeeze gold from a lark? Something is rotten in the state of Denmark. But harken thee—where may best advantage be? What odds see ye?

[That equipment’s really expensive! What’s the probability of getting hacked either way?]

Horatio —Sorcerers be that wouldst draw

Straight crook from snarled oaken saw.

[Mathematicians use probability trees.].

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Hamlet —O cursed spite that ever I was born to set it right! 

[I hate math!]

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Horatio —Of haste take not. Outcomes be but three.

Take heed of which I shew to thee.

[No big deal. There are only three probable outcomes.]

Hamlet—Hold, varlet! A fourth ye lacked—that one repent and not be hacked.

[Hamlet has noticed a missing variable: An enterprise upgrades internal systems and yet escapes hacking.]

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Horatio—‘Tis true M’lord, yet is it moot?

Foes be met; nought ground ‘neath heel o’ boot.

Complication wears poorly on thee.

There be no guarantee.

This outcome we call 1-P3…….(1)

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Hamlet—Ha! There are more things in heaven and earth, Horatio, Than are dreamt of in your philosophy.

[Maybe I’m not as dumb as I look.]

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Horatio —‘Tis sooth, my liege—I seek not to deceive.

Perchance I draft a map—deeper knowledge ye may tap.

Yon magic shall appease;

Thy grace’s ire set at ease.

[I’ll make it simple, so even you can see. Take a look at this probability tree.]

 

M’lord do you see?

If systems new and hacking lacking,

Probability is simply 1-P3.

[The probability of an internal network not getting hacked.]

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Hamlet—What make I of this wonder? To ask a fool is to blunder.

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Horatio—Magic formula ye seek, to make right your decision?

Fortunately, Shakespeare knows it with precision.

[Be cool. I got this.]

Look here, dear Ham, and spy yon enterprise,

Floating on the Cloud ’tis wise.

Not to hack or nick sharp blade.

We dig our likelihood with spade.

‘Tis thus: P1+(1-P1)(1-P2)=1-P2(1-(1-P1)………(2)

[The probability of not getting hacked on the Cloud.]

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Hamlet [Aside] Madness in great ones must not unwatch’d go. A screw is loose. He rhymes like Dr. Seuss.

[Horatio’s gone bonkers.]

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Horatio —But hark—magicians work dark secrets in a day

That mortal man can plumb no other way.

I spell it in a cypher so you see

The final answer to this mystery.

[Here dummy, I’ll spell it out for you.]

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Hamlet—Indeed, this must I see.

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Horatio—Floating on a Cloud,

Yon enterprise two chances escape plunder,

To hide from doom, not hacked asunder.

The Cloud foul Russian must attack rapaciously

Before cursed knife shall reach its mark with certainty.

[If your enterprise is on the Cloud, hacking is a two-stage process. The Cloud may get hacked. But even then, your enterprise may escape damage.]

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To ride the Cloud in skies of blue, equation (1) must be less than (2).

Hence:  1-P3<1-P2(1-P1)…….(3)

We boil down that poison thus, and there we gain the clue.

If fates would their due, we sing this song,

Our enterprise will float along.

And thus:  P3>P2(1-P1)

 [This is the absolute condition for an enterprise to go to the Cloud.]

 

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Hamlet—Dost thou think me easier play’d on than a pipe? For ‘tis sport to have the enginer hoist with his own petard, an’t shall go hard.

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Horatio—M’lord salves the ego with a threat.

Is this the way your friends are met?

But hear me, sire, ‘tis plain to do.

I will write it out for you.

Be ye not a foe to the way the numbers go.

Ye shall recall the probability of hacking free be 1-P3.

If wise man, on gauzy Cloud his merit bent,

To the tune of 80%,

The numbers shew:  1-P2(0.2)

[Here ya go, Mr. Bigshot CIO—if the probability of not getting hacked on the Cloud—P1—is 80%, then 1-P2(1-0.8) hence 1-P2(0.2)]

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Hamlet—Still it be Greek to me.

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Horatio —Here, my lord, I will unravel

The way that ye must travel,

To the ending of thy quest.

Be in knowledge, not in jest.

[Gotcha!]

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Hamlet—Get it over before I die.

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Horatio —Here’s an end so ye may rest

Like bones inside a chest.

If P3>(0.2)P2 be true,

To the Cloud get ye hence,

Else makest equipment new

And play yon cards close to thy vest.

[This is how the CIO makes the decision.]

Hamlet[Aside] This be a fellow of infinite jest, of most excellent fancy. He rhymes obtuse like Mother Goose. Yet I shall the effect of this good lesson keep as watchman to my heart.

[Translation—Good! Let’s get some pizza.]

[Curtain]

[DOWNLOAD ARTICLE IN PDF FORMAT]

.Read the sequel – [THE JOB INTERVIEW WITH WILLIAM SHAKES]

NOTE – This example follows similar logic and Decision by Professor J. Sussman used in his lecture to the Engineering Systems Division entitled, DID BELICHICK MAKE THE RIGHT CALL?

[READ BELICHICK PART 1 – PDF]

[READ BELICHICK PART 2 – PDF]

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About the Authors

Dr. Moises Goldman is uniquely involved with STEM (Science, Technology, Engineering, and Mathematics). He is a member of several advisory boards at MIT and is a founding member of the TALENT program at IMSA.

John Jonelis is a writer, publisher of CHICAGO VENTURE MAGAZINE and NEWS FROM HEARTLAND, author of the novel, THE GAMEMAKER’S FATHER. BFA, MBA from Kellogg.

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Photography and Graphics – John Jonelis, MS Office

Chicago Venture Magazine is a publication of Nathaniel Press www.ChicagoVentureMagazine.com Comments and re-posts in full or in part are welcomed and encouraged if accompanied by attribution and a web link. This is not investment advice. We do not guarantee accuracy. Please perform your own due diligence. It’s not our fault if you lose money.
.Copyright © 2017 John Jonelis – All Rights Reserved
.
.

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