Last week Mike Lynch, founder of Autonomy, announced the first investment by his latest venture, Invoke Capital. It has put money into Darktrace, a security company founded by Cambridge mathematicians. Darktrace uses Bayesian logic to spot cyber security issues by learning what is normal inside a company network and then flagging behaviour that differs from this.
Lynch is a divisive figure, but whatever your views on him, he built Autonomy into a multi-billion pound business, achieving the biggest ever sale price for a UK tech company when he sold it to HP for £6.2 billion. Of course, since then HP has sacked Lynch, written down Autonomy’s value substantially and asked authorities on both sides of the Atlantic to investigate possible accounting irregularities at the firm.
But two things that Lynch said stood out for me. Firstly, he believes too many European tech companies are sold too early in their development (normally to US rivals) – raising tens of millions rather than billions. Invoke plans to change that by investing for the longer term and providing experienced managers to take businesses to the next level.
The second thing he really encapsulated was the difference between Cambridge and Tech City businesses. Speaking in The Economist, he said “What you will find in Cambridge is something which is fundamentally clever, while what you are going to find in Tech City is something where the raw science isn’t fundamentally clever, but its more attuned to the market and the consumer.”
So the difference is between Cambridge clever and Shoreditch smart – but (as Lynch also says) we need both if we are going to build strong, vibrant tech sector in the UK. After all there’s no point in clever technology if it doesn’t have a market, while there is a limited opportunity for low IP businesses – we already have enough social networks.
What we need is to bring the two clusters together and develop a mutual understanding so that both can learn from each other, cross-fertilise ideas and even work in partnership. Let’s face it – they are only 60 miles away from each other, just a bit more than the distance from San Francisco and Silicon Valley. Some people in Cambridge have a tendency to look down on any ideas that haven’t originated here (or spent years in development in the lab). In contrast denizens of Silicon Roundabout often view Cambridge companies as too technical, too geeky and taking too long to build in comparison with their agile media startups.
Two immediate things would help this necessary cross-fertilisation. Firstly, a forum to bring the two groups together to share ideas and network, and secondly, a realisation by the government that you’ve got to look at the tech sector as a whole. At the moment a lot of effort goes into TechCity but that needs to be widened to encompass tech companies across the UK (not just in Cambridge, but in other clusters too) with a cohesive set of policies that encourage innovation and longer term investing. Otherwise Lynch’s vision of building billion dollar businesses in the UK simply won’t be realised, and that will hurt everybody.
- Invoke Capital Makes First Investment in Fundamental Cyber Security Technology (prnewswire.com)
- Invoke Capital Makes First Investment in Fundamental Cyber Security Technology (virtual-strategy.com)
The current civil war and use of chemical weapons in Syria is destroying the lives of millions in that country. With deaths from the conflict estimated at over 100,000 and an estimated 7 million people in need of aid, it is a humanitarian disaster across the region.
But alongside the actual fighting there is an equally hard fought war going on for the hearts and minds of the rest of the world, including voters, MPs, senators and governments. Western citizens and legislators are worried about being dragged into the worsening situation in Syria through military action, despite widespread abhorrence of the use of chemical weapons on civilians and children, leading to indecision on next steps.
This has triggered a media offensive, with all sides using the power of public relations to jockey for position:
- Bashar Al Asad has appeared on CBS and PBS in the US, defending his actions and denying responsibility for the use of chemical weapons
- Barack Obama appealed to the American people through a series of TV interviews as well as a direct address calling on Congress to support his stance
- Francois Holland sought to elbow Britain from its position as the US’s most trusted ally, hawkishly supporting military action in Syria
- Vladimir Putin put his point of view to the US and world media through a comment piece published in the New York Times, setting out his plan for independent decommissioning of Syrian chemical weapons.
Whatever your views on culpability, the winners from this PR battle have been the Syrian regime and the Russian government. By coming up with an alternative proposal to military action (dismantling Syria’s chemical weapons), Vladimir Putin has moved the debate on and surprised the US government’s PR machine. Using the global media cleverly he’s been able to exploit widespread worries about the consequences of war and change the direction of discussions. A combination of message and media has essentially delivered the PR success that has met his objectives.
If diplomacy is a continuation of war by other means, then PR is demonstrating that it is a vital general in the ranks – whether you believe it is used for the right or wrong reasons.
This week’s takeover of Nokia’s handset division by Microsoft is easy to see as a marriage of desperation, or as Robert Peston put it, “two drunks supporting each other at the end of the party.”
Wind the clock back 10 years and the picture was very different. Nokia was dominant in the phone market and Microsoft held a similar position in the desktop/laptop market. The first Windows-powered smartphones were being released, but they were incredibly complex (I know, I had an Orange SPV), essentially transferring the desktop Windows experience to the mobile world. There were a whole raft of other mobile handset providers that have since disappeared or lost their independence – Motorola (now owned by Google), Ericsson, and Siemens.
Two things changed all this – Apple came along and made smartphones easy to use without losing their power and in a linked move, the world embraced mobile with the growth of 3G and wifi. As the existing market titans, with enormous user bases, Microsoft and Nokia couldn’t evolve fast enough to change their business models. The same process happened in previous waves of computing as the world moved from mainframes to mini computers and then PCs; few CEOs have the guts to bin their existing cash cow and launch a radically different business.
So could either of them have done things differently? I’ve talked before about Microsoft’s disastrous attempt to innovate with Windows 8 but you can argue that it didn’t invest enough in mobile early on. If it had combined ease of use and access to compelling content with the power of the SPV (which was heavily subsidised) and made it less ugly it could have had a chance of pre-empting Apple’s rise. But it never seemed to be a priority. And Nokia again seemed to view smartphones as a niche market until very late in the day, focusing on the Communicator which was a high end business tool rather than a consumer-friendly device.
All this means the combined unit has a tough job on its hands and is going to have to focus heavily on innovation and marketing to succeed. Ironically given Apple’s perceived lack of innovation and BlackBerry’s woes there is chance to seize the challenger position and become the quirky, cool alternative to Samsung and the iPhone. This does mean being brave and creating something radical that shakes up the market. Microsoft couldn’t do it with Windows 8 – so can an injection of Finnish thinking make the difference?
Everyone is packing more into their working lives – and work is increasingly invading our leisure time. Apparently 69% of us cannot go to bed without checking email, and in the US, employees spend an extra 8.5 hours working every week compared to 1979.
And we’re continually being told to do more. But this normally translates into wasting our energies on ultimately unproductive activities such as sending and answering emails or sitting in endless meetings. McKinsey believe the average highly skilled office worker spends over a quarter of every day answering emails. The Dutch talk about vergaderziekte, which translates as ‘meeting sickness’. On one hand we make snap decisions to get emails out of our inbox and on the other fall asleep in day long meetings that seem to have no purpose.
It wouldn’t matter so much if this busyness translated into better business. But Robert Gordon of Northwestern University argued last year that the any additional productivity caused by the internet is much smaller than previous innovations such as indoor plumbing or electrification. Do you feel more productive?
For those of us in the creative industries the distractions and interruptions caused by modern business are particularly dangerous. And it is no accident that lots of startup ideas come from academia, where there is more time for uninterrupted research.
Creativity doesn’t come in the midst of an email or a meeting, but when you have time to think, unfettered by the ping of an incoming message hitting your inbox. Otherwise ideas come out half formed without reflection or perspective. Research at the University of California removed email from 13 people for five days and saw concentration levels rise and stress drop.
To win back our creativity and give time to thinking we need to regain control over our working lives. I’m no management guru, but here are five things that might help:
- Set aside thinking time. Leave your office, switch off your phone and just take an hour a week to focus, uninterrupted, on the big picture.
- Go for a run – get up from your desk and do some exercise. The added bonus is that if your company doesn’t have showers you won’t be invited to afternoon meetings.
- Use a pen and paper. Get your thoughts down longhand before opening up Word.
- Be ruthless. Turn down meetings (politely if possible) so that you have blocks of time to concentrate on what is important.
- Do less. Follow Ronald Reagan’s dictum “It’s true hard work never killed anybody, but why take the chance?” Do you need to check your email – and do you actually need to send that email to 20 people, with another 10 cc’d.
Whatever industry you are in, creative or not, take a step back and refocus if you want to be happier, more productive and more creative. Easier said than done perhaps, but the potential benefits are vast.
As anyone who’s tried to walk down King’s Parade knows, Cambridge is a magnet for tourists. However while visitors have plenty to look at, most of it is pretty old. From the colleges and Senate House to Fitzwilliam Museum the impression is of wonderful past achievements, rather than demonstrating the innovation and new breakthroughs that are happening now in the city.
Cambridge is leading the world in scientific research and is one of the centres of the UK IT industry, but up until recently the casual tourist would have been hard pushed to see any of this. And, let’s face it, simply seeing imposing medieval architecture and porters in bowler hats is going to put off a lot of young people from applying to study here.
The good news is that this is changing. In February, the Cambridge Science Centre opened its doors, inspiring the general public by enabling children (and their parents) to try hands on science experiments. Having had to physically drag my children away from it on our first visit it definitely delivers an engaging alternative to King’s College Chapel.
This week the Science Centre will be joined by The Centre for Computing History, which opens its permanent base in the city. The culmination of a two and a half year campaign, the Centre will give hands-on access to a huge collection of machines from the last 40 years, including a 1980s classroom with working BBC Micros to bring back memories for those of us of a certain age.
So far, so good. But having just visited the enormous @Bristol Science Centre and seen what has been achieved there as part of the city’s regeneration, there’s plenty more that Cambridge needs to do. The Cambridge Science Centre is essentially operating as a showcase in small (but well-utilised) premises while fund raising and the search for a larger location continues. And the Computing Centre needs volunteers to staff the building as it seeks to establish itself.
There’s been an enormous amount of support for both centres from local companies such as ARM and Red Gate and entrepreneurs including Hermann Hauser and David Cleevely. But now, during the summer holidays is the time for visitors and locals alike to stray from the tourist trail and try something different. You won’t regret it – and you may well help to inspire the next generation of scientists and programmers to continue the Cambridge success story.