Full E-magazine Forbes English version (copyright)
Trang 1COMMODITIZING COLLEGE • WEARABLE TECH: BE WARY
PAYPAL WANTS TO CONTROL EVERY TRANSACTION ON THE PLANET.
SO DO APPLE, GOOGLE, AMAZON
(AND CARL ICAHN).
GOLD RUSH
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DODGE TAXES
TAKE (SMART) RISKS
CASH IN
ON MUSIC
PLUS
SECOND-ACT SECRETS FROM SPORTS LEGENDS
JACK NICKLAUS, CHRIS EVERT
AND MORE
SPECIAL ISSUE
Trang 6
68 | classroom capitalist
Randy Best’s Academic Partnerships recruits warm bodies for virtual desks.
by steve forbes
President Obama: I’m the law.
lEAdERBOARd
Russia’s oligarchs clean up at Sochi.
A new look for Craigslist’s Craig Newmark.
The top-earning celebs in India’s movie business.
The world’s f rst mechanical meteorology station
worn on your wrist
John Nottingham and John Spirk: the most successful inventors you’ve never heard of.
by dan alexander
Medidata Solutions believes software can revolutionize the way Big Pharma develops
new medicines.
by matthew herper cover photograph by eric millette for forbes
60 | the mad dash to mobile money
PayPal made its mark as the Web’s wallet
Now it must fi ght off Google and Apple for the
cash spent offl ine
Trang 8with the mass market.
by connie guglielmo and parmy olson
Joe Sullivan aims to overhaul Legg Mason from top to bottom Only patient investors
need apply.
by halah touryalai
EntREpREnEuRS
Decades before the boutique beer boom Ken Grossman tasted opportunity Sierra Nevada is now a juggernaut—and he might be worth $800 million.
by brian solomon
Break your iPhone? Good news for AJ Forsythe, who is scaling the repairman model.
by j.j colao
tHE nEw REtiREMEnt
MAtH
In the new retirement, sprinters fnish last while distance runners prevail And risk is not necessarily a four-letter word.
by daniel fisher
Challenge: Extract the money from an oversize retirement account without getting destroyed by the new higher tax rates.
by william baldwin
Time to stop worrying about death taxes and start worrying about the capital gains tax.
42 | what’s wrong with wearables
Do you really need a smart dog collar?
54 | stout strategy
Ken Grossman keeps Sierra Nevada fresh
by never running dry of new brews—
or new partners
38 | software rx
Medidata Solutions has
the cure for runaway drug
Trang 9INTRODUCING FEDEX ONE RATE.SM
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Trang 10
Big, fat, gross: my kinda stocks!
Twenty-fve top places to retire—based on your
by steven bertoni
The easy money in higher education: digitizing
a school’s professional programs Now an preneurial Texan named Randy Best is rapidly
entre-commoditizing it
by caroline howard
liFE
Irish billionaire Dermot Desmond made Sandy Lane a Caribbean legend Now he’s trying to turn a cursed piece of paradise into something
even more luxurious.
by laurie werner
On aging.
76 | stop playing it safe
The old retirement numbers no longer
add up Time to bet bigger.
98 | live where you love
Find the perfect city for your post-career pursuits.
100 | buy a ballad
Music to your ears
and for your wallet.
special gatefold
91 | keep moving your feet
Best retirement advice?
Never stop playing Just ask
Chris Evert
Trang 11
Achieve fi nancial security with a plan that addresses risk fi rst.
Create your fi nancial plan with a Northwestern Mutual Financial Advisor Together, we’ll design a disciplined andbalanced approach to protecting, accumulating and managingyour wealth, so you can take advantage of life’s opportunities
Who’s helping you build your fi nancial future?
northwesternmutual.com
Northwestern Mutual is the marketing name for The Northwestern Mutual Life Insurance Company, Milwaukee, WI (NM) and its subsidiaries Securities of ered through Northwestern Mutual Investment Services,
LLC, broker-dealer, registered investment adviser, subsidiary of NM, member FINRA and SIPC NCAA is a trademark of the National Collegiate Athletic Association
Trang 12
FORBES (ISSN 0015 6914) is published semi-monthly, except monthly in January, February, April, July, August and October, by Forbes
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Copyright © 2014 Forbes LLC All rights reserved
Title is protected through a trademark registered with the U.S Patent & Trademark Office Printed in the U.S.A.
Dan Bigman – Business, Tom Post – Entrepreneurs, Bruce Upbin – Technology
sEnIOR vP, PRODUCT DEvElOPMEnT anD vIDEO
Andrea Spiegel
ExECUTIvE DIRECTOR, DIgITal PROgRaMMIng sTRaTEgy
Coates Bateman
assIsTanT ManagIng EDITORs
Kerry A Dolan, Luisa Kroll – Wealth
ExECUTIvE PRODUCER
Frederick E Allen – Leadership Tim W Ferguson FORbEs asIa
Connie Guglielmo, Kashmir Hill sIlICOn vallEy
Janet Novack WasHIngTOn
Michael K Ozanian sPORTsMOnEy
Mark Decker, John Dobosz, Deborah Markson-Katz DEPaRTMEnT HEaDs
Avik Roy OPInIOns
Kai Falkenberg EDITORIal COUnsEl
bUsInEss
Mark Howard CHIEF REvEnUE OFFICER
Tom Davis CHIEF MaRkETIng OFFICER
Charles Yardley PUblIsHER & ManagIng DIRECTOR FORbEs EUROPE
Nina La France sEnIOR vP, COnsUMER MaRkETIng & bUsInEss DEvElOPMEnT
Miguel Forbes PREsIDEnT, WORlDWIDE DEvElOPMEnT
Jack Laschever PREsIDEnT, FORbEs COnFEREnCEs
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Elaine Fry sEnIOR vP, M&D, COnTInUUM
FORbEs MEDIa
Michael S Perlis PREsIDEnT & CEO
Michael Federle CHIEF OPERaTIng OFFICER
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Will Adamopoulos CEO/asIa FORbEs MEDIa PREsIDEnT & PUblIsHER FORbEs asIa
Rich Karlgaard PUblIsHER
Moira Forbes PREsIDEnT, FORbEsWOMan
MariaRosa Cartolano gEnERal COUnsEl
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Mia Carbonell sEnIOR vP, CORPORaTE COMMUnICaTIOns
FOUnDED In 1917
B.C Forbes, Editor-in-Chief (1917-54) Malcolm S Forbes, Editor-in-Chief (1954-90) James W Michaels, Editor (1961-99) William Baldwin, Editor (1999-2010)
IN BRIEF
EDITOR-In-CHIEF
Steve Forbes
FORbEs (ISSN 0015 6914) is published semi-monthly, except monthly in January, February, April, July, August and October, by Forbes
LLC, 60 Fifth Ave., New York, NY 10011 Periodicals postage paid at New York, NY and at additional mailing ofces Canadian Agreement
No 40036469 Return undeliverable Canadian addresses to APC Postal Logistics, LLC, 140 E Union Ave., East Rutherford, NJ 07073
Canada GST# 12576 9513 RT POSTMASTER: Send address changes to Forbes Subscriber Service, P.O Box 5471, Harlan, IA 51593-0971.
COnTaCT InFORMaTIOn
For subscriptions: visit www.forbesmagazine.com; write Forbes Subscriber Service, P.O Box 5471, Harlan, IA 51593-0971;
or call 1-515-284-0693 Prices: U.S.A., one year $59.95 Canada, one year C$89.95 (includes GST) We may make a portion of
our mailing list available to reputable frms If you prefer that we not include your name, please write Forbes Subscriber Service
For back Issues: visit www.forbesmagazine.com; e-mail getbackissues@forbes.com; or call 1-212-367-4141.
For article Reprints or Permission to use Forbes content including text, photos, illustrations, logos, and video:
visit www.forbesreprints.com; call PARS International at 1-212-221-9595; e-mail http://www.forbes.com/reprints; or e-mail
permissions@forbes.com Permission to copy or republish articles can also be obtained through the Copyright Clearance Center at
www.copyright.com Use of Forbes content without the express permission of Forbes or the copyright owner is expressly prohibited.
Copyright © 2014 Forbes LLC All rights reserved
Title is protected through a trademark registered with the U.S Patent & Trademark Ofce Printed in the U.S.A.
MARCH 3, 2014 — voluME 193 NuMBER 3
Mobile and Social:
The Future of News
by lEWIs D’vORkIn
Very little catches me of guard in the digital space Then Richard Sherman, the Seattle Seahawks’ defen-sive back, mouthed of in a postgame victory interview Overnight a story about him on Forbes.com achieved blockbuster status Millions read it, nearly 80% arriving from social networks More than half our total trafc that day was via mobile devices, predominantly smart-phones I witnessed the future: social and mobile unit-ing to drive the news business
I shouldn’t have been surprised Check out these graphics Our mobile visits (all visits, not just unique visits) hit 25 million in December (one-third of all site trafc), moving in
lockstep with social trafc, at 10 mil-lion visits The exact social split between mobile and desktop is hard to break down
We do know that two-thirds of Twitter trafc often comes from mobile devices
Social media is the new portal—friends relying on friends
to tell them what matters A report from eMarketer, an industry publication, sheds some light on the social/mobile connection Nearly 70% of females and 56% of males ages 25 to 49 engage with social media via smartphones (both groups spend far less time on tablets) Over the past three years both groups played a signifcant role in driving our digital audience sharply higher
The second chart, from a new comScore platform report, also points to the mobile juggernaut The light blue bars represent mobile domestic unique monthly visitors (for Forbes.com 9 million were exclu-sively mobile) and the darker blue bars desktop users
Fast Company Wired
Atlantic Media CNNMoney Bloomberg WSJ
Forbes 11.0
7.4 7.3 5.3 6.0 2.7 1.7
26.0 20.3 19.8 1
14.6 13.4 8.9 4.5
Million Visitors
Millions of Unique Visitors in December
25 20 15 10 5 0 Jan-2013 Jun-2013 Dec-2013
Mobile Total
Social Visitors Mobile Visitors
The Forbes Audience
Source: GooGle AnAlyticS.
1 BloomBerg.com and Businessweek.com
Source: comScore.
Trang 13
Northwestern Mutual is the marketing name for The Northwestern Mutual Life Insurance Company, Milwaukee, WI (NM) and its subsidiaries Securities of ered through Northwestern Mutual
Investment Services, LLC, broker-dealer, registered investment adviser, subsidiary of NM, member FINRA and SIPC NCAA is a trademark of the National Collegiate Athletic Association.
Follow fi nancial principles, not fads or trends.
Create your fi nancial plan with a Northwestern Mutual Financial Advisor Together, we’ll design a disciplined andbalanced approach to protecting, accumulating and managingyour wealth, so you can take advantage of life’s opportunities
Who’s helping you build your fi nancial future?
northwesternmutual.com
Trang 14
Together, we’ll create a blueprint to guide your fi nancial life.
Get the guidance you need to navigate the fi nancial world
At Northwestern Mutual, we take a disciplined and balancedapproach to fi nancial planning Together, we’ll help build your
fi nancial future on time-tested principles, not market trends
Who’s helping you build your fi nancial future?
Northwestern Mutual is the marketing name for The Northwestern Mutual Life Insurance Company, Milwaukee, WI (NM) and its subsidiaries NCAA is a trademark of the National Collegiate Athletic Association.
northwesternmutual.com
Trang 15
tration’s Big Government agenda.
To add insult to injury, the new IRS commissioner has decreed that the agency will pay $62 million in bonuses, declaring, “I frmly believe that this investment in our employ-ees will directly beneft taxpayers and the tax system.”
The unending changes the White House has unilaterally made to Obama-Care have been well documented
The ways in which the EPA has waged its jihad against the eastern coal indus-try has also been well documented—and sci-ence be damned Forbes.com columnist Larry Bell cites a fagrant example of the EPA’s ignor-ing inconvenient science: “A group within EPA’s own Science Advisory Board (SAB) determined that the studies upon which that regulation [setting CO2-emission limits for new power plants] was based had never been responsibly peer reviewed and that there was no evidence that those limits can be accomplished using available technology.”
The EPA is also set to ban production and sale of 80% of current wood-burning stoves
Who knows what aroused its ire against these innocuous devices? But this will impose a real hardship on people who live in remote areas, such as much of Alaska The EPA has arbitrarily decided that stoves cannot emit more than 12 micrograms of fne particulate emissions per cubic meter of air To put that silly limit in per-spective, Bell notes that “secondhand tobacco smoke in a closed car can expose a person to 3,000–4,000 micrograms” per cubic meter
By what authority did President Obama decree an increase in the minimum wage for workers on federal contracts? A clause in a 1931
MARCH 3, 2014 FORBES | 13
FACT & COMMENT — STEVE FORBES
FORBES
pRESidEnt OBAMA
i’M tHE lAw
BY STEVE FORBES, EDITOR-IN-CHIEF
“With all thy getting, get understanding”
One questiOn congressional
and presidential candidates should
be asked is how we should go about
restoring the rule of law to our
fed-eral government Not even during
the world wars of the last century
was the executive branch as brazen
in assuming sweeping and
unlegis-lated powers, changing laws without
the consent of the legislative branch
and ignoring laws it didn’t like
Lawsuits are certainly one
pos-sible avenue to take, but a slow one—which is
what the White House is counting on It will do
what it wants, and by the time an unfavorable
decision is handed down, it will have done many
other things It will also fnd ways to circumvent
such a decision or just ignore it altogether
How will the Administration act when, as is
likely, the Supreme Court delivers an adverse
ruling concerning the President’s appointment
of members to the National Labor Relations
Board when the Senate wasn’t technically in
recess? Obama’s appointees went on to make
rulings that were harmful to business Of course,
the Administration will promise to comply and
will then pull who knows what cards it has up its
sleeve to make an end-run around the decision
The IRS got caught singling out conservative
groups for harassment—and nothing was done
The President, with a straight face, told Fox
News’ Bill O’Reilly that there wasn’t a “smidgen”
of evidence of any corruption, and the Justice
Department has made clear it’s deep-sixing any
serious probe But even worse is the fact that
the IRS is readying regulation that will make it
legal to deny tax exemptions to predominantly
conservative groups, while it turns a blind eye
to organizations more friendly to the
Trang 16
(AMY EINHORN BOOKS/PUTNAM, $26.95)
Restaurants: Go , Consider , Stop
Edible enlightenment from our eatery experts and colleagues Richard Nalley, Monie Begley, Randall Lane and Chef Jef Lamperti,
as well as brothers Bob, Kip and Tim.
l the Seafre Grill
158 East 48th St (Tel.: 212-935-3785)
This deservedly popular, handsome Midtown
seafood restaurant also ofers a full range of
meats The atmosphere and efcient service
make dining here a delight Favorites: lobster
bisque, fresh oysters, tuna niçoise, giant prawns
in romaine, endive salad with curry vinaigrette,
the key lime tart and the tiramisu.
l Arte
21 East 9th St (Tel.: 212-473-0077)
Two working freplaces add to the ambience
of this romantic Italian spot For a treat try the grilled baby octopus on a bed of greens The Dover sole and the branzino, both deboned at table side, are cooked to perfection, and the pastas are deli- cious Do save room for the tartufo (enough for two) or the wonderfully rich ganache cheesecake.
l Rôtisserie Georgette
14 East 60th St (Tel.: 212-390-8060)
This stylish new bistro is packed The consommé
de volaille is the perfect starter on wintery days The poulet rôti is juicy, favorsome and perfectly roasted, and the frites are as good as any found in Belgium For dessert, if you want refreshing go for the chilled citrus and mint; for decadence order the chocolate pot de crème.
piece of legislation that innocuously
stated that the President should
ensure that federal contracts are
ad-ministered efciently!
While we can take heart from the
upcoming NLRB case, the courts are
going to have to be more aggressive
in going after executive branch
abus-es Since the late 1930s federal courts
have been very solicitous regarding
acts of the federal government An
egregious example was the court’s
acquiescence to the raw,
politics-lad-en way the Administration
unilater-ally handled the bankruptcy of GM
and Chrysler, shafting bondholders
and giving sweetheart deals to the
United Auto Workers union
Federal judges should also
con-sider throwing out such laws as
Dodd-Frank, in which the language
is so vague and ambiguous that it
puts immense power in the hands of
imperious regulators who are the ones
deciding what the rules really mean A
healthy start would be to rule
uncon-stitutional the new Consumer
Finan-cial Protection Bureau, which has no
accountability to Congress and can
throw out regulatory thunderbolts,
with very restricted opportunity for
any judicial review The agency gets
its money not from Congress but from
the Federal Reserve’s printing press
Following the 2014 elections the
Senate, which will then be
Republi-can-controlled, can hold serious
hear-ings on what this White House has
been doing and can slash the budgets
of recalcitrant departments and
agen-cies (the GOP will also increase its
majority in the House)
The election losses the Democrats will sufer will chasten a good part of the party, and many will work with Republicans to punish these breach-
es of trust by the White House After all, wise Democrats will know that Republicans may well win the presi-dency in 2016, and they won’t want the new Chief Executive bending the rule of law the way President Obama has done out of habit
The late, famed English author of
1984 and Animal Farm would be tonished that the 1984 phenomenon
as-of Newspeak—freedom is slavery;
ignorance is strength—is thriving today, not only in authoritarian/
totalitarian regimes, which is what
he expected, but also in the world’s leading democracy, the U.S
Politicians are always trying to put the best face on unpleasant oc-currences—what we call spin But nothing comes close to the White House response to a study from the Congressional Budget Ofce that by
2024 ObamaCare will cost the omy the equivalent of 2.5 million jobs
econ-Hallelujah!, proclaimed White House mouthpiece Jay Carney This
is great news because it means ple won’t be in jobs they don’t really like Now they can dream of better things and, possessing health insur-ance that’s being paid for by working
peo-taxpayers, can search for something better without having to worry about access to medical care
Unemployment is liberating!Employment is wage slavery!
It’s no surprise that the New York Times obediently parroted this piece
of Obamaspeak, declaring, “That
is mostly a good thing, a liberating result of the law Of course, Republi-cans immediately tried to brand the fndings as ‘devastating’ and stark evidence of President Obama’s health care reform as a failure and a job kill-
er It is no such thing … The [CBO] report is about the choices workers can make when they are no longer tethered to an employer because of health benefts.”
Maybe the Times can mull these
possible Newspeak slogans: “The Internet is good for newspapers!”
“No newspapers means liberation for forests! More forests means less global warming!”
I hadn’t read Harry Dolan before, for which I’m thankful, as this is a pre-quel to his previous two mysteries Now I can read about David Malone, who apparently later changes his name to David Loogan, in chronolog-ical order Dolan’s writing is excel-lent, and readers can look forward
to his future eforts the way millions
Trang 17of us look forward to the ever more
superb novels of Harlan Coben,
Mi-chael Connelly, Jonathan Kellerman
and Sue Grafton
David Malone operates a
home-inspection business for prospective
buyers in Rome, N.Y Engaged to a
med student whom he discovers has
two-timed him, Malone walks out
and soon chances upon an auto
acci-dent Before you know it, he is living
with the driver, a beautiful law
stu-dent, at her spartan apartment She
has a nasty bruise on her face and
won’t tell Malone how she got it
Days later the law student is
brutally murdered, and Malone
becomes a suspect He stays at the
dead woman’s place and fnds himself
investigating the killing to the intense
annoyance of the lead detective
Malone’s seeming meddling earns
him a savage blow to the kidneys from
a friend of the detective Other
kill-ings soon occur, and suspects
mul-tiply These are a vividly memorable lot, among them the de-tective; two cousins, who reek of evil; a professor, who works to free prisoners be-lieved to have been wrong-fully convicted; the creepy, horny
grandson of the dead girl’s landlady;
and a stool pigeon, who won his
get-out-of-jail card by claiming to have
heard the confession of an arrested
schoolteacher suspected of
murder-ing his wife Other characters are also
distinctly drawn
The twists and turns fow
efort-lessly, including Malone’s ex-fancée
trying to win him back Most of the
book is Malone’s frst-person
nar-rative, but interspersed are chilling
chapters from the killer’s perspective
as he goes about his bloody work
FORBES
Women Need to Take an Active Role
In Retirement Planning
When you envision retirement, what do
you see? If you’re a married woman, you probably picture your life in retirement as part of a couple, enjoying many years together However, in reality, most women will spend a portion of their golden years without their spouse
“Even if women think they’ve done
a good job of planning for ment as part of a couple, their plan may not be designed to fnancially support them as a single person in retirement,” says Rebekah Barsch, Northwestern Mutual vice president
retire-of market strategy “And nately, that’s something most women will have to face, since the vast majority of women who remain married into retirement are likely to outlive their spouse.”
unfortu-Whether by choice, divorce or the death of a spouse, Barsch says women can better prepare themselves now for the fnancial challenge of being single at some point in the future by taking these steps:
Actively participate in planning: If you’re
currently married, don’t delegate retirement income planning to your spouse Establish a relationship with your fnancial advisor and become familiar with the details of your retirement income plan
Rebekah baRsch
VIcE PREsIdENt of MARkEt stRAtEgy NoRtHWEstERN MutuAl
Understand your assets: According
to Barsch, women going through divorce tend to underestimate the future value of assets A fnancial advisor can help ensure your assets are shared equitably Married couples, particularly those with life insurance and defned contribution retirement plans like 401(k)s, should carefully consider their options for creating income in retirement.
Plan realistically for expenses:
While it might seem like a retired single woman’s expenses would
be less than those for a couple, you may actually incur additional expenses for things like health care
“When their health began to decline,
I don’t know how I would have ported them emotionally, physically and fnancially But because their fnancial and health care needs were being met, it was possible for me to concentrate on what I was uniquely qualifed to do—provide love and support as a daughter.”
sup-By becoming an active participant in fnancial planning early, women can free themselves to focus on what’s really important: the people they care about most.
BrandVoice BY NorthwesterN Mutual
“The vast majority of married women are likely
to outlive their spouse.” Rebekah baRsch
VIcE PREsIdENt of MARkEt stRAtEgy NoRtHWEstERN MutuAl
Trang 18ADLER SOCHI
16 | FORBES MARCH 3, 2014
MONEY MEN
KEEPING SCORE ON WEALTH & POWER
The Sochi Olympics are the most expensive ever,
and some of Russia’s oligarchs are cleaning up
These nine billionaires have parlayed their links
to the Russian state into huge construction jobs—
and massive cost overruns.
Net worth: $12.6 billion
Started the push for a Sochi Olympics and has
invested $2.5 billion in it.
Chairman, Basic Element
Net worth: $6.5 billion Received $1.7 billion in state
contracts but is suing the state for poor planning and a lack of port facilities.
SOCHI IMERETI FREIGHT PORT
Cost: $185 million
MAIN OLYMPIC VILLAGE
Cost: $700 million
SOCHI INTERNATIONAL AIRPORT
●
Trang 19
President, Ural Mining &
Metallurgical Co.
Net worth: $6.1 billion
ANDREI BOKAREV
Board member, UMMC
Net worth: $1.5 billion
The pair originally said their
hockey arena would cost
Net worth: $13.3 billion
His company has spent just
$15 million, but it also has
avoided scandals and not
missed deadlines or infl ated
Net worth: $18.5 billion
MegaFon is a
$130 million Olympics
sponsor as well as a big investor in telecom infrastructure.
MEGAFON TELECOM CONSTRUCTION
Cost: $95 million
GENNADY TIMCHENKO
Board member, Novatek
Net worth: $15 billion
His company SK Most Construction got a
$1.8 billion contract to
help build the Adler-Alpika railroad.
ADLER-ALPIKA SERVICE RAILROAD
Trang 20+$110 million
Net worth:
$1.1 billioN Zynga posts its biggest one-day stock jump after announcing the successful acquisition
of NaturalMotion and likelihood of proftability.
Kevin Plank
+$480 million
Net worth:
$2.4 billioNUnder Armour’s shares jump 23% after it posts strong full-year earnings and its 15th consecutive quarter of at least 20%
tank after both
revenue and earnings
growth fail to meet
wall Street’s
expectations.
Evan Williams
–$600 million
Net worth:
$3.1 billioN Despite strong fnancial results, twitter’s high-fying stock dives after the social media platform reports a sharp slowdown in user growth.
Leonard Lauder
–$510 million
Net worth:
$7.4 billioN estée lauder, known for its Clinique and MAC cosmetics brands, posts narrower margins, citing
FigUreS reFleCt the ChANge iN vAlUe oF pUbliCly trADeD holDiNgS FroM JAN 16 to Feb 6
SourceS: InteractIve Data vIa FactSet reSearch SyStemS; ForbeS.
1.5 MILLION
Worldwide sales of Sheryl Sandberg’s book,
Lean In, since it was published a year ago
FACEBOOK’S SHERYL SANDBERG
She became Facebook’s chief operating ofcer six years ago after turning down Mark Zuckerberg’s frst job ofer because a relative told her any man would hold out for a better deal Now, at 44, she is one of the youngest female billionaires in the world and one of only a handful—like tory burch, oprah winfrey and Spanx’s Sara blakely—who made it themselves rather than inheriting it it’s her equity, not her $300,000-a-year salary, that has made her so rich At the time of Facebook’s May 2012 public ofering she owned more than 38 million restricted stock units, about half of which have been converted to stock to date she’s sold of more than 9 million of those shares
RINGLING BROS.’ KENNETH FELD
he grew up under the big top and took over his family’s company, which owns barnum & bailey Circus, in the mid-1980s Since then he has transformed it into a juggernaut that presents
Disney on Ice and monster truck rallies; it had an
estimated $1 billion in revenue last year At 65
he becomes the world’s second circus-industry billionaire, after Cirque du Soleil’s guy laliberté.
Trang 21
The LS F SPORT You open the door and the show begins as soon as you see the hand-stitched, leather-trimmed interior; front sport seats; and aluminum accents Then the spotlight turns to performance, and the 19-inch forged alloy wheels,1
1 19-in performance tires are expected to experience greater tire wear than conventional tires Tire life may be substantially less than 15,000 miles, depending upon driving conditions 2 High-friction brakes
require periodic inspection and measurement as outlined in the Warranty and Services Guide The pads and rotors are expected to experience greater wear than conventional brakes Pad life may be less than
Options shown.
Trang 22
20 | FORBES maRch 3, 2014
713
Total number of Craigslist sites
worldwide—from Ashtabula, Ohio,
to Zamboanga, the Philippines
craigslist’s craig NEWMarK
Our experts give the father of online classifed ads a classy new look.
JOsEPh AbbOuD: the award-winning designer and
entrepreneur got his start at louis boston before serving
as director of menswear design for ralph lauren
he launched his namesake brand in 1987 and is currently
the chief creative director for men’s wearhouse.
KAthy iRElAnD: the supermodel turned supermogul
is the chief executive and chief designer of kathy ireland worldwide, a design and marketing frm she launched
in 1993 Women’s Wear Daily has named her one of the
50 most infuential people in fashion.
thE VERDiCt
Ki: he now exudes sophistication
and style beftting a man of his accomplishments.
JA: even his face looks better,
and his glasses, too, though it’s the same picture amazing what clothes can do for you.
suit
Ki: its length is too long, its sleeves are too short,
its shoulders are too wide it makes his arms
seem short.
JA: it’s very ill-ftting even though he has a
certain body type it doesn’t mean he can’t wear a
slightly trimmer garment.
JACKEt Ki: the narrow ft on his shoulders looks
custom, and it accentuates his physique.
JA: there’s shape to the jacket, and it’s
shorter than before, with a very graceful peak lapel and a nice detail in the sarto- rial pocket.
EnsEMblE JA: the color makes him look younger
fashion tip: a man can never go wrong wearing blue on blue
Ki: the rich blue striped jacket with
asym-metrical pockets and the plaid shirt are an excellent combo for a casual dress look.
the “after” image iS a Simulated image of what craig newmark would look like if he had actually ParticiPated in the forbeS makeover, which he did not nor doeS he endorSe any ProductS Pictured here.
shiRt JA: everyone thinks
an ecru or eggshell shirt is great, but if you don’t pick the right colors with it,
it tends to be very washed out.
Trang 23
in safety and the reputable backing of Berkshire Hathaway
can do for you.
f o r b u s i n e ss , f o r f a m i l y, f o r l i f e
Trang 24
LEADERBOARD Nightly price of the $5,000
Grand Del Mar’s
Grand Villa, a 4,500-square-foot, three-bedroom suite (Wi-Fi included).
22 | FORBES MARCH 3, 2014
Shah Rukh khan so dominates the Bollywood
box ofce, they call him King Khan In 2013 his
movie Chennai Express became India’s
highest-grossing flm ever He also has 19 brand
endorse-ment deals, and all his activities together brought
him earnings of $35.5 million last year That’s about
what Tom Cruise made but still far less than
Amer-ica’s top-earning celebrities Only one of India’s top
fve is not a Bollywood star
Mandarin Oriental
MiaMi
set on Brickell key at the top of Biscayne Bay, the oriental ofers quiet and a private beach but also easy access to downtown and south Beach every one of its rooms has a balcony with a view over the bay.
The Grand Del Mar
san diego
although it’s in southern California, it feels mediterranean, and attractions range from horseback riding to a tom Fazio-designed golf course to chef William Bradley’s ten-course contemporary French dinners.
Mandarin Oriental
las Vegas
its 23rd-foor restaurant, twist,
is michelin-three-star-chef Pierre Gagnaire’s only american outpost, and its 1930s hong kong-inspired spa has hammam and rhassoul baths and a laconium hot room.
Montage Laguna Beach
5 miles of pristine Georgia beaches.
celebrity 100
forbes travel guide
BIG BUCKS
Bollywood
North, south, east and west, meet the only destinations in the U.S that received fve stars across the board from the 2014 Forbes Travel Guide For more on them, visit forbes.com/5stars.
1 Shah Rukh Khan
he has appeared in more than 80 hindi flms
as well as the long-running reality tv show
Bigg Boss (spelling correct).
3 Mahendra Singh Dhoni
CriCket Player, 32
earninGs: $25 million With 23 endorsement contracts, the Chennai super kings star is the most marketable person in india.
4 Amitabh Bachchan
aCtor, 71
earninGs: $23.8 million
india’s Who Wants to Be a Millionaire star
has the country’s largest twitter following,
8 million.
5 Akshay Kumar
aCtor, 46
earninGs: $19.1 million
he starred in three movies in 2013, including
Special 26 and Boss.
Trang 25
1 2
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he and his team “just want to make the world dance.”
Shayan Zadeh and Alex Mehr ZOOSK calling itself the “amazon of dating,” Zoosk, launched in 2007, uses an algorithm to try to match you with people who have a high probability of responding positively the 35-year-old Iranian cofounders have com- puter science backgrounds; mehr once worked on coding for nasa moon missions (says a spokesperson,
“you have a rocket scientist finding you love.”) some 25 million people now use the service, which has pulled
in $61.6 million in funding
matchmakers
UP-AND-COMERS
These startups want to start up your romantic life.
How many hours do you usually sleep?
ASK 50 BILLIONAIRES
A stAndout recently at Geneva’s prestigious SIHH
watch show, the Breva Génie 01 is the world’s frst ical weather station worn on your wrist, using tiny aneroid capsules made of a patented nonmagnetic memory metal, for both a barometer and an altimeter One winding lasts
mechan-65 hours—useful when you’re stuck atop the Alps without cellphone reception Breva is selling just 55 of them, for
$170,000 apiece
38.3%
4 to 6 hours
53.2%
6 to 8 hours
responses to an anonymous poLL oF
50 members oF the Forbes worLd’s bILLIonaIres LIst.
TOyS
Trang 2826 | FORBES maRch 3, 2014
LEADERBOARD
TROLLS aS HEROES
FORBES, FEBRUARY 10, 2014
5,754 VIEWS ON FORBES.COM
Columnist Rob Arnott fered a defense of “pat-ent trolls,” widely loathed businesses that buy up little-known patents and sue their unwitting viola-tors He said they “serve
of-a genuine need” of-as “the buyer of last resort of an inventor who cannot af-ford to develop his or her invention into a product.”
“Wow, thank you for a rational article about patents,” wrote commenter
dbhalling Doug Wenzel
strongly disagreed: “A
patent is supposed to be awarded for a nonobvious invention that adds value and advances the state
of the art most patent trolls … look for products unknowingly using their technology and sue after the fact This raises two questions: How nonobvi- ous was the invention, and how did the patent holder
or aggregator advance the state of the art?”
WHO PAYS FOR FREE AIRPORT WI-FI?
@NICOLEOZER
There’s no such thing as “free” Wi-Fi You are paying with your personal info.
@EMERGINGALPHA
Governor Jerry Brown barely wanted to mention rails in his [state of the state] speech The will isn’t there in CA.
STEVE FORBES: CHINA IS DEPENDENT ON THE U.S.
@THEAZUKA1
Everybody is more dependent
on everybody in this time and age So it’s really not surprising.
@MRPETEROGDEN
Good Maybe we will have better position to pressure China now on Tibet.
NIX THE KNICKS
FORBES, FEBRUARY 10, 2014
86,704 VIEWS ON FORBES.COM
FORBES ranked the New York Knicks, worth $1.4
bil-lion, as the NBA’s most valuable team for the second
straight year Some readers saw a big irony there
Chris O’Shea at MediaBistro headlined his response
“FORBES Names Terrible, Awful, Dammit, What the
Hell Are You Doing New York Knicks Most
Valu-able NBA Team” and wrote, “It really doesn’t matter
that the Knicks are constantly outcoached, give zero
effort on defense, repeatedly complain to referees
and have more in common with a bad soap opera
than the rest of the NBA It really doesn’t matter,
because the Knicks are number one.” The New York
Post piled on: “Don’t worry, Knicks fans While the
team’s on-court play is stinking up the Big Apple
owner Jimmy Dolan—by increasing ticket prices
and jacking up the cost of a courtside hot dog—has
seen the value of the team jump 27% in just one year
Congratulations!” NY1 News observed, “None of
the teams in the top five currently have a winning
record.” Meanwhile ESPN’s Web page devoted to the
Milwaukee Bucks noted that “The Bucks are the least
valuable team in the league This is all no surprise
The Bucks are annually the least valuable team The
biggest takeaway is that the Bucks are actually
be-coming a viable business This is actually the first
time since 2009 Milwaukee had a positive operating
income, according to FORBES.”
favORITE TwEET
@pmarca (Marc Andreessen):
Four biggest K-12 education breakthroughs in last 20 years: (1) Google; (2) Wiki- pedia; (3) Khan Academy; (4) Wolfram Alpha. top: bl
Share of all U.S patent lawsuits in 2012 brought
by “patent trolls,” according to an Obama
Administration report—up from 29% in 2010
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28 | FORBES MARCH 3, 2014
Paul JohNsoN — CurreNt eVeNts
The problem for President Obama,
now a lame duck, is that he’s
increas-ingly compared with Vladimir Putin
and found wanting
In theory Mr Obama ought to
hold all the cards Russia is a
back-ward state, whose vodka-soaked
population is teetering on the verge
of decline It lacks a modern
indus-trial base, though its vast territories
contain ample natural resources,
par-ticularly those used for energy These
fnance the country and its massive
armed forces But Russia lacks the
means and skill to raise its people’s
standard of living, and every year the
gap between their lifestyle and that
of the prosperous West widens
Obama ought to be sitting pretty
The U.S economy is recovering
rapid-ly from the worst recession in modern
history Unemployment is falling, with
millions of new jobs being created
Fracking is giving an immense boost
to energy supplies and should make
the U.S energy-self-sufcient before
the end of the decade Yet Obama is
not getting credit for these welcome
developments Normally a President’s
stock rises when the economy
pros-pers, but Obama’s ratings continue to
stagnate or, on occasion, fall
Whatever one may think of Putin’s
moral posture—which is deplorable—
he is regarded as strong, decisive and
vigorous, pushing Russia’s interests
at all times, with considerable
suc-cess In contrast, Obama is written of
as weak and irresolute, with no clear
short- or long-term aims He gets high
marks for rhetoric but scores zero for
action In short, he’s a windbag
Two critical areas highlight the
diferences between these two ers In Syria Putin has backed the man who is clearly winning: Presi-dent Bashar al-Assad This cynical and merciless ruler is likely respon-sible for the deaths of more than 100,000 Syrians, but his troops con-sistently gain ground, and he oper-ates with growing confdence Putin has supported Assad with arms, diplomatic assistance and all the resources of the old Soviet-style agit-prop machinery, which have gradu-ally prevailed
lead-Obama hasn’t even gotten credit for playing the moral card, because his actions have been dithering, con-tradictory and inefective His policy
on supplying arms to anti-Assad groups, if it exists, is unclear He gives the impression that he doesn’t care greatly one way or the other, that his emotions aren’t engaged
With the unrest in Ukraine, Putin has again shown strength and consis-tency, albeit for the wrong side He
is determined to keep Ukraine a part
of Russia’s sphere and thus backs its government wholeheartedly The majority of Ukrainians clearly want
to become a part of the European community, which to them represents freedom and progress In the grow-ing division between government and people Putin will support govern-ment, even to the point of civil war.With Ukraine Obama has the op-portunity to align himself with popular sentiment in a key country of eastern Europe Doing so successfully would enormously strengthen the forces of democracy in Europe, while giving the European Community a much needed idealistic cause around which to rally
It would also deal a deadly blow to Putin’s foreign policy But Obama doesn’t seem to grasp the importance
of the issues at stake or why American support is so vital to the democratic forces in eastern Europe It’s not even clear that Obama actually has a policy Ukraine’s populist leaders claim that all their eforts to move Obama to take action have failed to evoke any kind of decisive response from Washington.second-term tragedyPresident Obama is missing two crucial chances to take a stand for de-cency and humanity against the forces
of evil and is handing Putin an easy victory History has placed Obama in
a position in which he can be held sponsible for the freedom or servitude
of two peoples Putin has far fewer sources but has been using them with skill, consistency and determination It’s terribly sad that at this juncture the U.S is led by a man with so little regard for his nation’s role in uphold-ing and extending freedom and that the forces of evil should be winning battles with so little efort
re-in contests of strong, decisive policy
Obama cOmes up shOrt
Paul Johnson, EMinEnt BRitiSH HiStORiAn And AutHOR; DaviD MalPass, glOBAl ECOnOMiSt, pRESidEnt OF EnCiMA glOBAl llC; aMity shlaes, diRECtOR, tHE 4% gROwtH
pROjECt, gEORgE w BuSH inStitutE; And lee Kuan yew, FORMER pRiME MiniStER OF Sing ApORE, ROtAtE in wRiting tHiS COluMn tO SEE pASt CuRREnt EvEntS COluMnS, viSit OuR wEBSitE At www.forbes.coM/currentevents.
F
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30 | FORBES maRch 3, 2014
avik roy — CaPital FloWs
The oTher day White House
Press Secretary Jay Carney said
some-thing that can, and should, defne
the debate between conservatism
and progressivism for years to come
The Congressional Budget Ofce had
published a report estimating that
ObamaCare would shrink the size of
the U.S labor force by 2.5 million
full-time-equivalent workers Carney’s
response? That this was good news
“As part of this new day in health
care, Americans would no longer be
trapped in a job,” said Carney, “and
would have the opportunity to pursue
their dreams.”
Carney’s quip was no of-the-cuf
gafe His argument—that America is a
better place when taxpayer subsidies
can help people drop out of the work
force—has been uttered repeatedly
by Democratic partisans and
progres-sive pundits in the ensuing days It’s
an argument that brings into sharp
relief the moral and political
oppor-tunity for conservatives—should they
choose to take it
Free-market capitalism has been
the single greatest cure for human
poverty that the world has ever seen
So why is it that it’s the left, not the
right, that gets credit for its eforts on
behalf of the poor?
The reason isn’t that progressive
policies are better for the poor It’s
that 80% of life is showing up—and
when it comes to the topic of how to
address poverty, it’s the left, not the
right, that shows up with a concrete
policy agenda
Why things evolved this way is a
long story But a proximate reason
is that Republican voters tend to be
middle-class employed and retired people who feel like they’ve paid enough in taxes and don’t see why more should be asked of them to shower government benefits on others
And they’re right We spend more than enough money already
to provide a true safety net Take education We spend $15,000 a year per pupil on education—more than any other country in the world—and yet our educational outcomes trail those of our peers U.S government per capita spending on health care exceeds all but three other countries, and yet we have 40 million people without health insurance We spend nearly a trillion dollars a year on means-tested antipoverty programs, and yet the ofcial poverty rate has barely budged in 50 years
An emerging movement within American conservatism—what some call “reform conservatism”—seeks to tackle these problems It’s a philoso-phy that goes back to former New York congressman Jack Kemp He described the American idea this way: “Everyone should have the same opportunity to rise as high as their talents and eforts can carry them; and while people move ahead,
we should endeavor to leave no one behind.”
Conservatives, of course, have long held a sheaf of policy ideas to address the real problems that low-income Americans face Far too often, though, the conservative approach to poverty and social mobility is left to collect dust in think tanks, while Republican politicians focus on cultivating the
people who already vote for them
Politics is about ties In any given congres-sional session or presi-dential term, leaders have time to push three or four major ideas into law Tax cuts and spending restraint—worthy goals to be sure—have been the top priorities for the GOP But those aims can best be achieved if conservatives frst judge each policy initiative by this benchmark: How much better
priori-of will it make the poor?
Welfare reform was signed into law by a Democratic President be-cause he was convinced by conserva-tives that the old welfare program harmed the people it was meant to help For conservatism to become a national movement again, it must speak frst and foremost for those at the bottom looking up
Refocus conseRvatism
Around Economic mobility
avik roY iS FORBES’ OpiniOn EditOR, a SEniOR FEllOw at thE manhattan inStitutE FOR pOlicy RESEaRch
and thE authOR OF How Medicaid Fails tHe Poor. F
consErvAtism must spEAk First And ForEmost For thosE At thE bottom looking up
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Katia Beauchamp & Hayley Barna, Birchbox
Tory Burch, Tory Burch LLC
Moira Forbes, ForbesWoman
Catherine Fundafunda, Oemph! Media
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Trang 34
32 | FORBES MARCH 3, 2014
rICh Karlgaard — INNoVatIoN rules
but not wanting apps? There’s a
huge market segment out there for any regulated industry Governments, fnancial services, health care I think
we can go capture those and become
a winner I have two companies in Europe now that have reversed their policies on letting people bring their own devices to work It presents too much of a security risk After An-gela Merkel was hacked she moved straight to a BlackBerry
Assuming BlackBerry survives the short term, what are your long- term plans? The devices will change,
but the need for security, ity and communication will continue
productiv-to grow These are the three building blocks of all things Internet and all things “connected.” Security is more than an exercise in avoiding snoop-ing or being listened to or copied It’s also about data security You can’t aford to have somebody steal or change your data
How big is the market for users who put productivity and security ahead of communication? Regulat-
ed industries’ share of IT spending is 30% I assume the same percentage
John chen speaks
saving blackberry
Rich KaRlgaaRd iS tHE puBliSHER At FORBES HiS nExt BOOk, the soft edge: where great companies find lasting
success, will BE Out in ApRil FOR HiS pASt COluMnS And BlOgS viSit OuR wEBSitE At www.foRbes.com/KaRlgaaRd.
Steve JoBS did it at Apple Lou
Gerstner and Sam Palmisano did it at
IBM But tech turnarounds are rare
John Chen, CEO of BlackBerry since
November, is trying again BlackBerry
is Chen’s second major turnaround
attempt His frst was Sybase, a
data-base pioneer that had been crushed
by Oracle Chen came in, found a
niche in mobile data and sold Sybase
to SAP in 2010 for $5.8 billion
I had lunch with Chen in January to
talk about his plans to fx BlackBerry
Why attempt this? I thought
the world would be better of with
a strong BlackBerry You know, the
company has 44,000 patents And I
thought it might be a fxable thing It
will be a difcult challenge, but if it
were going to be easy, why do it?
Android and Apple own the
mo-bile market even mighty
Micro-soft struggles Can a small player
survive? Sure Take the automotive
industry; it’s not all about volume
What do you call Porsche? What do
you call Lamborghini? Porsche is
doing extremely well Now, Porsche
serves a particular segment of the
mar-ket, doing well for its shareholders and
owners It always serves the market for
a purpose, which is the whole point
In the short term there are
enough users of serious computing—
meaning this is what they do for their
living, this is how they operate—that
want a keyboard You have CEOs of
major companies who whip out their
BlackBerrys because of the keyboard
They don’t care about apps And, by
the way, from a security point of view
I’m starting to worry about where
these apps are actually coming from
How many potential customers
ft that profle—wanting a keyboard
for telecom spending—30%
Why are tech turnarounds so hard? Because the amount of time
you have to execute your plan can be dramatically changed by your com-petitors There’s no time to recover from mistakes You have to be right most of the time
do you need a strategy, or are fast refexes enough? You must
have short-, medium- and long-term strategies And a lot of time you have
to put the medium-term strategy in play I had to do that at Sybase many times We’d go down these paths, and some would work and some wouldn’t But we had laid out a long-term plan, a medium-term plan and
a short-term plan However, if the short-term plan wasn’t working, the medium-term plan would kick in A lot of companies have only one plan That’s great if things go perfectly, not
so great if things blow up
What makes a great turnaround team? Urgency And an obsessive
focus on the things that matter You build a team by picking the right peo-ple—it all comes down to the right people—who understand this Then you make those people accountable The CEO and the team need to know the details You can’t know the min-ute details about everything, but you need to know the details In an emer-gency room the doctor is hands on, whereas in a teaching hospital the doctor could just, you know, act like
a professor and talk someone else through the procedure Turnarounds are diferent; they’re like an emer-gency room, and you can’t be afraid
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Spinbrush, Dirt Devil vacuum and
near-ly 1,000 other patented products No, ing as momentous as the lightbulb or the phonograph, but in their nearly anonymous way—even in Ohio, almost no one has heard
noth-of them—Nottingham and Spirk have proven themselves as good at making money as the Wizard of Menlo Park himself
to Thomas Edison’s New
Jer-sey laboratory is a
decommis-sioned Christian Science church
in Cleveland It’s here that John
Nottingham, John Spirk and their team of 70
inventors, tinkerers and support staf have
cooked up the Swifer SweeperVac, Crest
reinventing america
The Invention Machine
By Dan alexanDer
John Nottingham and John Spirk are the most successful inventors you’ve never
heard of, with a can’t-lose business model that would make Edison blush.
Two guys and a very nice garage: Inside a former Cleveland church John nottingham (left) and John Spirk reinvent the everyday.
34 | FORBES maRch 3, 2014
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maRch 3, 2014 FORBES | 35
“We’re probably responsible for more
pat-ents than any other company our size,” says
Nottingham, 64, who in 1972 set himself up
in a garage with a college buddy, John Spirk
The most innovative thing about them: their
model Rather than invent products and then
fgure out how to sell them, à la Edison, the
Nottingham Spirk Innovation Center invites
corporate behemoths—from Procter &
Gam-ble to Mars—to come to it with its product
quandaries Nottingham and Spirk then
in-vent the solutions and give clients a choice
of how to pay They can either fork over cash
up front, as much as $120,000 a month, or
pay a royalty fee down the road, up to 5% of
sales It’s a sliding scale—the more cash at
the start, the lower the royalty fee later “I’ve
dealt with a million industrial design frms,
lots of agencies, lots of p.r frms, and they’re
the frst ones that really approached us with
that model,” says Adam Chafe, who
spear-headed Sherwin-Williams’ efort to
devel-op a screw-tdevel-op paint can “They had already
made money, so they were looking to do
big-ger things, more revolutionary.” With
prod-ucts like the paint can, the math can get huge:
Since 1972, Nottingham Spirk claims,
prod-ucts it developed have generated more than
$45 billion in sales
Nottingham Spirk has proven willing to
take equity stakes as well Its biggest score:
Dr John’s, which sold electric
toothbrush-es for $5 (based on a spinning lipop design) when the going rate was $50 Procter & Gamble bought
lol-Dr John’s for $475 million in 2001 (Nottingham and Spirk each walked away with an estimated $40 million
on that one) Heady stuf for a guy like Nottingham who, as a college in-tern, ate lunch by the pond of the General Motors Technical Center, envisioning a corporate life for him-self—until one of the company’s top designers disabused him “He said,
‘John, this is the greatest R&D ter in the world,’ ” Nottingham re-calls “I’m just drinking it in I’m just saying, Wow, I’m in heaven, feeding the ducks Then he dropped a bomb
cen-on me He says, ‘It’s amazing that the most innovative ideas that Gen-eral Motors has come up with have come from the outside, small compa-nies.’ And I stopped in my tracks, the crumbs going to the ducks stopped in midair And at that point my life changed I said if I’m going
to be efective, it’s not going to be inside eral Motors It’s going to be outside.”
Gen-He returned to school for his fnal year at the Cleveland Institute of Art, where he told his frst-year hall mate John Spirk about his new dream—reinventing the world’s largest companies rather than joining one of them After graduation GM came knocking with a job opening for Nottingham, and Hufy Bicy-cles had one for Spirk They rejected the of-fers and became co-CEOs of their own shop instead
“There’s a famous Bill Gates quote They asked him where does he worry about com-petition from,” says Spirk, 65 “They’re think-ing all these high-tech, you know, and he says
I worry about two guys in a garage So what
do we do? We graduated school, and two guys moved into a garage.”
Their big break came when they proached Rotodyne, an Ohio manufactur-
ap-er that mainly made bedpans using a plastic shaping process called rotational molding Nottingham and Spirk helped the company use its rotational molding process
cheap-to make not only bedpans but also cheap cheap-toys for children The bedpan company shifted its focus and created a new brand: Little Tikes, whose indestructible red-and-yellow cars
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National Register of Historic Places.
But what excited Nottingham and Spirk most about the space was something more practical than its beauty The basement Sun-day school space could be renovated into
a prototyping factory, which would allow them to merge two facilities into one, bring-ing their entire innovation process under one roof
The process starts in a research lab in the church’s basement Designers, engineers and prototype builders crowd into a small room
on one side of a two-way mirror and watch
through the glass as consumers use products like, say, a bottle of Pepto-Bismol They take notes
on potential problems, such as how sick people usually take two teaspoons instead of the suggest-
ed two tablespoons, underdosing themselves
The designers then go to work on a solution: for instance,
a dosage cup that f ts onto the top of the Pepto-Bismol bottle
The product is built in an pansive prototype workshop, complete with industrial-grade saws, paint rooms and 3-D print-ers Clients walk away with a patent plus a prototype they can send straight to a manufactur-
ex-er Sales climbed 30% in the year after Pepto-Bismol introduced
a cap that measures dosage, and the design is now ubiquitous on medicine bottles
Nottingham anticipates ger results (“billion-dollar po-tential, plus, plus, plus”) from the f rm’s latest play: HealthSpot,
big-a kiosk thbig-at comes with out medical instruments and a high-def nition screen that al-lows for remote, yet face-to-face, medical appointments It would
pull-be the kind of product that ison would approve of—a game changer for a huge chunk of the world And it would all emanate from a Cleveland church base-ment Says Nottingham: “I see a sea change coming back to the Midwest.”
Ed-have become inescapable landmarks of
tod-dler culture in backyards across America
Nottingham and Spirk moved out of the
garage and took up residence in two facilities,
one in an old brownstone where they came
up with their ideas and another in a factory
where they manufactured them Eventually
they outgrew those facilities, too, and started
shopping for a new home In 2005 they found
it: the Christian Science church just down
the road from their old art school
Architec-turally signif cant with its rotunda sanctuary
and 5,001-piece organ, the building is on the
eXecUtive SUmmarY
the KiDs areN’t all riGht
Sure, investment banking can bring you money and power But it’s just as likely
to destroy your dreams, ruin your relationships and widen your waistline at least that’s the lesson we get from Kevin
roose’s Young Money: Inside
the Hidden World of Wall Street’s Post-Crash Recruits
(Grand Central Publishing) roose spent several years tailing eight naive (and mostly unlikable) college graduates as they shackled themselves to spreadsheets and BlackBerrys for a shot
at fi nancial greatness after the panic Most burned out
before breaking out Young
Money is a must-read for
any budding banker—or any parent who’s pushing his kid
too bulky
Not-tingham spirk helped
Dirt Devil come up
with a handheld one,
and the company sold
23 million of them.
PEPTO-BISMOL BOTTLE
CUSTOMer: Procter
& Gamble
year TO MarKeT:
1985 sick people were underdosing them- selves, using 2 tea- spoons rather than the recommend-
ed 2 tablespoons, until Nottingham spirk came up with the now-ubiquitous dosage cap.
PURELL PACKAGING
CUSTOMer:
GoJo industries
year TO MarKeT:
1995 GoJo had developed
a goo that would clean hands, but it wouldn’t sell Not- tingham spirk added air bubbles and clear packaging, helping turn GoJo’s Purell brand into america’s hand sanitizer.
after making a
spin-ning lollipop for a
candy company,
Not-tingham spirk put
bristles on a stick
in-stead of candy and
to open and easy
to spill, but it didn’t change for 100 years
then Nottingham spirk made a plastic can with a spout and screw-off lid.
SWIFFER SWEEPERVAC
CUSTOMer: Procter
& Gamble
year TO MarKeT:
2006 the vacuum that looks like a mop gained access to grocery-store aisles, generally off -limits for appliances Now it’s one of the coun- try’s most popular vacuums.
Nottingham Spirk’s Greatest hits
F
Trang 39
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“This whole concept of creating value in drug development is starting to take hold,” says Sherif “How do you reduce your costs but increase your value with better drugs that get paid for?”
Sherif, the chief executive, stands 6-feet, 6-inches tall and speaks softly and philosophi-cally; de Vries, the president, who hand-coded Medidata’s original software, is a born sales-man, constantly talking in big, visionary jags and fashing a megawatt smile In their ul-
manager, plopped his ray-tube monitor and desktop computer on an ofce chair and wheeled it a mile down Park Av-enue from his fund’s ofces into a small room and toward the desk that he would share with a young tech entrepreneur he’d met through his college roommate—a tech entre-preneur named Glen de Vries
cathode-From this inauspicious start in 1999, the two men built something astounding: a 1,000-em-ployee, $277 million (sales) technology company called Medidata Solutions They make software that drug companies use for running and track-ing clinical trials in the cloud, taking on tech
health care innovation
Creating a Better Drug
By Matthew herper
Medidata Solutions believes software can
revolutionize the way Big Pharma develops
new medicines It has Oracle in its sights.
Glen de Vries and tarek
Sherif: bringing Big
Data to Big pharma.