vinod khosla kleiner perkins caufield & byers [email protected] organizational concepts for...
TRANSCRIPT
![Page 1: Vinod Khosla Kleiner Perkins Caufield & Byers vkhosla@kpcb.com Organizational Concepts for Entrepreneurial Technology Companies -the cathedral or the bazaar?](https://reader033.vdocuments.net/reader033/viewer/2022061304/5513b8635503463a298b4596/html5/thumbnails/1.jpg)
Vinod Khosla
Kleiner Perkins Caufield & Byers
Organizational Concepts for Entrepreneurial Technology Companies
-the cathedral or the bazaar?
![Page 2: Vinod Khosla Kleiner Perkins Caufield & Byers vkhosla@kpcb.com Organizational Concepts for Entrepreneurial Technology Companies -the cathedral or the bazaar?](https://reader033.vdocuments.net/reader033/viewer/2022061304/5513b8635503463a298b4596/html5/thumbnails/2.jpg)
“…every strategic inflection point [is] characterized by a ‘10X’ change …”
“There’s wind and then there is a typhoon,
there are waves and then there’s a tsunami”
- Andy Grove
There’s change and then there is change!
![Page 3: Vinod Khosla Kleiner Perkins Caufield & Byers vkhosla@kpcb.com Organizational Concepts for Entrepreneurial Technology Companies -the cathedral or the bazaar?](https://reader033.vdocuments.net/reader033/viewer/2022061304/5513b8635503463a298b4596/html5/thumbnails/3.jpg)
Visible Signs: Wealth Creation
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
95 96 97 98 99 0 1 2 3 4
New
com
pany
val
ue in
Bill
ions
First 10 years of PC First few years on Internet
![Page 4: Vinod Khosla Kleiner Perkins Caufield & Byers vkhosla@kpcb.com Organizational Concepts for Entrepreneurial Technology Companies -the cathedral or the bazaar?](https://reader033.vdocuments.net/reader033/viewer/2022061304/5513b8635503463a298b4596/html5/thumbnails/4.jpg)
Source: U.S. Department of Commerce. 0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%19
60
1961
1963
1964
1966
1967
1969
1970
1972
1973
1975
1976
1978
1979
1981
1982
1984
1985
1987
1988
1990
1991
1993
1994
1996
1997
PC Introduction
Commercial Internet
U.S.-based Information Technology Spending as a Share of Business Capital Equipment Spending - 1960 to CQ2:1997
Visible Signs: Corporate Tech SpendingContinues to Rise
Note: Information technology spending includes purchases of information processing and related equipment (including office, computing, and accounting machinery), computers and peripheral equipment, communication equipment, instruments, and photocopy and related equipment.
![Page 5: Vinod Khosla Kleiner Perkins Caufield & Byers vkhosla@kpcb.com Organizational Concepts for Entrepreneurial Technology Companies -the cathedral or the bazaar?](https://reader033.vdocuments.net/reader033/viewer/2022061304/5513b8635503463a298b4596/html5/thumbnails/5.jpg)
Visible Signs: Public Pure Play
Internet Winners - $ Billion Club
Priced as of 4/22/98, 3/17/99
Yahoo!
Amazon.comAmazon.com
eBayeBay
@Home @Home
NetscapeNetscapeExcite
$6.32.2n/a2.24.01.3
$34.220.818.814.9
9.75.7
Market Value (3/99)
MarketValue (4/98)
B B
![Page 6: Vinod Khosla Kleiner Perkins Caufield & Byers vkhosla@kpcb.com Organizational Concepts for Entrepreneurial Technology Companies -the cathedral or the bazaar?](https://reader033.vdocuments.net/reader033/viewer/2022061304/5513b8635503463a298b4596/html5/thumbnails/6.jpg)
Years to reach 50M users:
0
30
60
90
120
‘22 ‘30 ‘38 ‘46 ‘54 ‘62 ‘70 ‘78 ‘86 ‘94 ‘02
Use
rs (M
illio
ns)
Radio TVCable Internet
Source: Morgan Stanley.
Visible Signs: Social Change
Radio = 38TV = 13Cable = 10Internet = 5
![Page 7: Vinod Khosla Kleiner Perkins Caufield & Byers vkhosla@kpcb.com Organizational Concepts for Entrepreneurial Technology Companies -the cathedral or the bazaar?](https://reader033.vdocuments.net/reader033/viewer/2022061304/5513b8635503463a298b4596/html5/thumbnails/7.jpg)
Behind the Scenes: Changes Economics
of Reaching New CustomersBehind the Scenes: Changes Economics
of Reaching New Customers
$0.40$0.50$0.67$1.00$2.00
$60.00
$30.00$20.00
$15.00$6.00
$12.00
$0.00
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
1% 2% 3% 4% 5% 10%Response Rate
Cos
t
Web Advertising Direct Mail
Even with lower click-through / response rates, Net advertising costs much less on a per-response basis!
Source: Direct Marketing Association, Morgan Stanley, KPCB analysis.
Cost per Response/Click-Through
![Page 8: Vinod Khosla Kleiner Perkins Caufield & Byers vkhosla@kpcb.com Organizational Concepts for Entrepreneurial Technology Companies -the cathedral or the bazaar?](https://reader033.vdocuments.net/reader033/viewer/2022061304/5513b8635503463a298b4596/html5/thumbnails/8.jpg)
Behind the Scenes:
Changes the Cost of Serving Customers
• Net transactions cost far less than through traditional channels
• Investment for a commercial bank to reach 10M potential customers– Bricks-and-Mortar:
$900M
– The Net: $1M
$0.00
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
Transaction Costs (Banking)
Source: Booz Allen Hamilton.
Cost
/ Tr
ansa
ctio
n
Branch
TelephoneATM
PC BankingInternet
![Page 9: Vinod Khosla Kleiner Perkins Caufield & Byers vkhosla@kpcb.com Organizational Concepts for Entrepreneurial Technology Companies -the cathedral or the bazaar?](https://reader033.vdocuments.net/reader033/viewer/2022061304/5513b8635503463a298b4596/html5/thumbnails/9.jpg)
Source: Company reports.
Behind the Scenes: Revolutionizing the
way companies interact with customers
• New customer acquisition
– 80% of Dell’s small business Web customers never purchased from Dell before
• New channels to the customer
– 70% of Internet users plan to make travel plans and purchases on the Web
• Increased availability to customers
– 40% of AOL’s merchant online sales took place between the hours of 10 P.M. and 10 A.M.
• Building an online customer base
– Amazon.com has 6.2M records – mailing addresses, e-mail addresses, credit card numbers – of customers who have made purchases on their site
![Page 10: Vinod Khosla Kleiner Perkins Caufield & Byers vkhosla@kpcb.com Organizational Concepts for Entrepreneurial Technology Companies -the cathedral or the bazaar?](https://reader033.vdocuments.net/reader033/viewer/2022061304/5513b8635503463a298b4596/html5/thumbnails/10.jpg)
Behind the Scenes:
Brand Building is Changing
• Amazon vs. Barnes & Noble
• Yahoo vs. Mickey Mouse
• SportsLine vs. ESPN
• e-Trade vs. Merrill Lynch
• C|Net vs. CNBC
• CD Now vs. Tower Records
![Page 11: Vinod Khosla Kleiner Perkins Caufield & Byers vkhosla@kpcb.com Organizational Concepts for Entrepreneurial Technology Companies -the cathedral or the bazaar?](https://reader033.vdocuments.net/reader033/viewer/2022061304/5513b8635503463a298b4596/html5/thumbnails/11.jpg)
Source: Company reports.
Behind the Scenes:Internal Operations are Changing
• Procurement: GE purchases $1B in supplies over the Internet in 1997
• Customer Service: Cisco reports customer service productivity has improved 200-300% from using the Internet
• Logistics: FedEx reports that PC and Web interfaces are used by 950K customers to track 12M packages annually
Savings$500-700M (3 yrs.)$500-700M (3 yrs.)
$360M(annually)$360M(annually)
6 Million calls per year6 Million calls per year
![Page 12: Vinod Khosla Kleiner Perkins Caufield & Byers vkhosla@kpcb.com Organizational Concepts for Entrepreneurial Technology Companies -the cathedral or the bazaar?](https://reader033.vdocuments.net/reader033/viewer/2022061304/5513b8635503463a298b4596/html5/thumbnails/12.jpg)
Behind the Scenes:
Communications Networks are Changing
• Qwest changing the rules on backbone fiber capacity
• Level 3 investing $10B in an all IP network
• DWDM growth causing dramatic changes in available capacity
• Voice over IP projects proliferate at Lucent, Nortel, Cisco
![Page 13: Vinod Khosla Kleiner Perkins Caufield & Byers vkhosla@kpcb.com Organizational Concepts for Entrepreneurial Technology Companies -the cathedral or the bazaar?](https://reader033.vdocuments.net/reader033/viewer/2022061304/5513b8635503463a298b4596/html5/thumbnails/13.jpg)
And at the macro level….
![Page 14: Vinod Khosla Kleiner Perkins Caufield & Byers vkhosla@kpcb.com Organizational Concepts for Entrepreneurial Technology Companies -the cathedral or the bazaar?](https://reader033.vdocuments.net/reader033/viewer/2022061304/5513b8635503463a298b4596/html5/thumbnails/14.jpg)
The New Economy
• Conventional wisdom: American dream over. “I’m OK, but my kids...”
• 40% of GDP growth from tech
• Silicon Valley is symbol: <3% unemployed, high wages, every segment moving up
• Silicon Valley is state of mind: it’s everywhere, for everyone...
![Page 15: Vinod Khosla Kleiner Perkins Caufield & Byers vkhosla@kpcb.com Organizational Concepts for Entrepreneurial Technology Companies -the cathedral or the bazaar?](https://reader033.vdocuments.net/reader033/viewer/2022061304/5513b8635503463a298b4596/html5/thumbnails/15.jpg)
The New Economy
a skill life long learning
managers entrepreneurs
labor v. mgt teams
bus v. environ encourage growth
security risk taking
monopolies competition
job preservation job creation
wages ownership, options
plant, equipment intellectual property
Old versus New economy
![Page 16: Vinod Khosla Kleiner Perkins Caufield & Byers vkhosla@kpcb.com Organizational Concepts for Entrepreneurial Technology Companies -the cathedral or the bazaar?](https://reader033.vdocuments.net/reader033/viewer/2022061304/5513b8635503463a298b4596/html5/thumbnails/16.jpg)
status quo speed, change
standardization custom, choice
top-down distributed
hierarchical networked
regulation pub/private partners
zero sum win win
sues invests
standing still moving ahead
Old versus New economy
The New Economy
![Page 17: Vinod Khosla Kleiner Perkins Caufield & Byers vkhosla@kpcb.com Organizational Concepts for Entrepreneurial Technology Companies -the cathedral or the bazaar?](https://reader033.vdocuments.net/reader033/viewer/2022061304/5513b8635503463a298b4596/html5/thumbnails/17.jpg)
What goals are we designing the organizational form for?
![Page 18: Vinod Khosla Kleiner Perkins Caufield & Byers vkhosla@kpcb.com Organizational Concepts for Entrepreneurial Technology Companies -the cathedral or the bazaar?](https://reader033.vdocuments.net/reader033/viewer/2022061304/5513b8635503463a298b4596/html5/thumbnails/18.jpg)
The “Environment”
• Change as a “process”• A new Competitiveness -Adam Smith II• Technology : “driver” or “tool”• People• Whose Rules?• Static vs. Dynamic - Creation of new markets• Amplification of Events & Time Compression• A “winner take all” economy
![Page 19: Vinod Khosla Kleiner Perkins Caufield & Byers vkhosla@kpcb.com Organizational Concepts for Entrepreneurial Technology Companies -the cathedral or the bazaar?](https://reader033.vdocuments.net/reader033/viewer/2022061304/5513b8635503463a298b4596/html5/thumbnails/19.jpg)
Pace of Change
• Diseconomies of scale
• Diseconomies of process / hierarchy
• Timeliness of information disbursement
• The role of standards
![Page 20: Vinod Khosla Kleiner Perkins Caufield & Byers vkhosla@kpcb.com Organizational Concepts for Entrepreneurial Technology Companies -the cathedral or the bazaar?](https://reader033.vdocuments.net/reader033/viewer/2022061304/5513b8635503463a298b4596/html5/thumbnails/20.jpg)
Success Factors - Old & New
• People vs. Organization• Process vs. Instinct• Questioning vs. Hierarchy• Leverage vs. Entrenchment• Managing Risk vs. Risk avoidance• Paranoia & Persistence vs. History• Role of Trial vs. Consistency• Best of breed Offerings
![Page 21: Vinod Khosla Kleiner Perkins Caufield & Byers vkhosla@kpcb.com Organizational Concepts for Entrepreneurial Technology Companies -the cathedral or the bazaar?](https://reader033.vdocuments.net/reader033/viewer/2022061304/5513b8635503463a298b4596/html5/thumbnails/21.jpg)
A detailed look at the factors….
![Page 22: Vinod Khosla Kleiner Perkins Caufield & Byers vkhosla@kpcb.com Organizational Concepts for Entrepreneurial Technology Companies -the cathedral or the bazaar?](https://reader033.vdocuments.net/reader033/viewer/2022061304/5513b8635503463a298b4596/html5/thumbnails/22.jpg)
Internal Factors
• People: Building the “balanced” team
• Culture
• Technostructure & Infostructure
• Engineering Methodology
• Organized Chaos : Execution vs. innovation.
• Pull vs. Push
• About Customers & Marketing
• Planning & process
![Page 23: Vinod Khosla Kleiner Perkins Caufield & Byers vkhosla@kpcb.com Organizational Concepts for Entrepreneurial Technology Companies -the cathedral or the bazaar?](https://reader033.vdocuments.net/reader033/viewer/2022061304/5513b8635503463a298b4596/html5/thumbnails/23.jpg)
People
• Top 5% - “winner take all”
• Instinct & Vision
• Personality mixes
• Role of the “Flakes”
• Leading vs. managing
![Page 24: Vinod Khosla Kleiner Perkins Caufield & Byers vkhosla@kpcb.com Organizational Concepts for Entrepreneurial Technology Companies -the cathedral or the bazaar?](https://reader033.vdocuments.net/reader033/viewer/2022061304/5513b8635503463a298b4596/html5/thumbnails/24.jpg)
Culture
• Setting the goals
• Managed Conflict
• Persistence & iteration
• Tolerating mistakes & rewarding failure
• Sense of urgency
• Paranoia
• Success & Complacency
![Page 25: Vinod Khosla Kleiner Perkins Caufield & Byers vkhosla@kpcb.com Organizational Concepts for Entrepreneurial Technology Companies -the cathedral or the bazaar?](https://reader033.vdocuments.net/reader033/viewer/2022061304/5513b8635503463a298b4596/html5/thumbnails/25.jpg)
Technostructure & Infostructure
• Specialization and complexity of technology
• Decision-making: top down or bottom up?
• The role of the “fringe” employee.
• Nuances as Pitfalls
• Horizontal and vertical communication & cooperation.
![Page 26: Vinod Khosla Kleiner Perkins Caufield & Byers vkhosla@kpcb.com Organizational Concepts for Entrepreneurial Technology Companies -the cathedral or the bazaar?](https://reader033.vdocuments.net/reader033/viewer/2022061304/5513b8635503463a298b4596/html5/thumbnails/26.jpg)
Engineering Methodology
• Evolvability
• Specialization
• Experimentation
• Change isolation
![Page 27: Vinod Khosla Kleiner Perkins Caufield & Byers vkhosla@kpcb.com Organizational Concepts for Entrepreneurial Technology Companies -the cathedral or the bazaar?](https://reader033.vdocuments.net/reader033/viewer/2022061304/5513b8635503463a298b4596/html5/thumbnails/27.jpg)
Organized Chaos: The Shepherd or the Sargent?
• The Flakes vs. Engineering vs. Marketing
• Experimentation
• Execution
• Budgets, Schedules, Tasks vs Project Stage
![Page 28: Vinod Khosla Kleiner Perkins Caufield & Byers vkhosla@kpcb.com Organizational Concepts for Entrepreneurial Technology Companies -the cathedral or the bazaar?](https://reader033.vdocuments.net/reader033/viewer/2022061304/5513b8635503463a298b4596/html5/thumbnails/28.jpg)
Push vs. Pull
• Products
• Brands
• People
• Leverage
![Page 29: Vinod Khosla Kleiner Perkins Caufield & Byers vkhosla@kpcb.com Organizational Concepts for Entrepreneurial Technology Companies -the cathedral or the bazaar?](https://reader033.vdocuments.net/reader033/viewer/2022061304/5513b8635503463a298b4596/html5/thumbnails/29.jpg)
Changing Roles: Marketing & Customers
• Listening to the customer
• Participants in Design / Experimentation
• Meeting vs. Teaching Requirements
• Discovering “Applications”
• Growth Patterns: the “stairstep”
• Perception & Reality; the Halo effect
• Momentum
![Page 30: Vinod Khosla Kleiner Perkins Caufield & Byers vkhosla@kpcb.com Organizational Concepts for Entrepreneurial Technology Companies -the cathedral or the bazaar?](https://reader033.vdocuments.net/reader033/viewer/2022061304/5513b8635503463a298b4596/html5/thumbnails/30.jpg)
Planning & Process
• Process vs. Instinct
• Risk Balancing & Burn Balancing
• Risk Balancing of Projects
• Planning & Variability
![Page 31: Vinod Khosla Kleiner Perkins Caufield & Byers vkhosla@kpcb.com Organizational Concepts for Entrepreneurial Technology Companies -the cathedral or the bazaar?](https://reader033.vdocuments.net/reader033/viewer/2022061304/5513b8635503463a298b4596/html5/thumbnails/31.jpg)
Optimized for what?
“The early movers are the only companies that have the potential to affect the structure of the industry and to
define how the game is played by others.”-Andy Grove
![Page 32: Vinod Khosla Kleiner Perkins Caufield & Byers vkhosla@kpcb.com Organizational Concepts for Entrepreneurial Technology Companies -the cathedral or the bazaar?](https://reader033.vdocuments.net/reader033/viewer/2022061304/5513b8635503463a298b4596/html5/thumbnails/32.jpg)
Case Study: Open Source
![Page 33: Vinod Khosla Kleiner Perkins Caufield & Byers vkhosla@kpcb.com Organizational Concepts for Entrepreneurial Technology Companies -the cathedral or the bazaar?](https://reader033.vdocuments.net/reader033/viewer/2022061304/5513b8635503463a298b4596/html5/thumbnails/33.jpg)
Evolvable Systems: Cathedral-building
The traditional development model reflects the “cathedral-building” model...
• Follow a single approach and vision • Optimize for performance• Release only bug-free products• Products and technologies are developed in
isolation• Examples: IBM System/360, MSFT Windows
platform, Intel Pentium, AT&T network
![Page 34: Vinod Khosla Kleiner Perkins Caufield & Byers vkhosla@kpcb.com Organizational Concepts for Entrepreneurial Technology Companies -the cathedral or the bazaar?](https://reader033.vdocuments.net/reader033/viewer/2022061304/5513b8635503463a298b4596/html5/thumbnails/34.jpg)
Evolvable Systems: the Bazaar model
The new development model is evolving to the “bazaar” model...
• Optimize for evolvability
• Adopt new approaches and agendas regularly (“plan to throw it away”)
• Delegate/buy/outsource everything you can
• Be open to the point of promiscuity
• Release early, and often
• Products and technologies have to exist in a dynamic community
• Examples: Linux, Apache, Sendmail, Excite, Microsoft (the company), QWEST/Williams networks
![Page 35: Vinod Khosla Kleiner Perkins Caufield & Byers vkhosla@kpcb.com Organizational Concepts for Entrepreneurial Technology Companies -the cathedral or the bazaar?](https://reader033.vdocuments.net/reader033/viewer/2022061304/5513b8635503463a298b4596/html5/thumbnails/35.jpg)
Weather Forecast
• Rate of change will accelerate - life will be more complex, more busy...
• Innovation, opportunities & entrepreneurship will thrive
• Fun & fortunes will be in abundance
• Adaptability, agility & momentum will be the key to success!
![Page 36: Vinod Khosla Kleiner Perkins Caufield & Byers vkhosla@kpcb.com Organizational Concepts for Entrepreneurial Technology Companies -the cathedral or the bazaar?](https://reader033.vdocuments.net/reader033/viewer/2022061304/5513b8635503463a298b4596/html5/thumbnails/36.jpg)
“As long as we maintain the practices that have us made us what we are today, there is no limit to the longevity of this situation”
-F.E.Terman, Vice President, Stanford University
![Page 38: Vinod Khosla Kleiner Perkins Caufield & Byers vkhosla@kpcb.com Organizational Concepts for Entrepreneurial Technology Companies -the cathedral or the bazaar?](https://reader033.vdocuments.net/reader033/viewer/2022061304/5513b8635503463a298b4596/html5/thumbnails/38.jpg)
KPCB
• Who we are:• a handful of professional technologists and operating
execs - not financiers• portfolio of 340+ companies with $244B+ market
cap, $61B+ revenue, 162k+employees, 127 IPOS• Forbes 500: Sun, Compaq, LSI Logic, Ascend, AOL,
@Home, Quantum, Linear Technology, Amazon, Tandem, Lotus, Netscape, Intuit
![Page 39: Vinod Khosla Kleiner Perkins Caufield & Byers vkhosla@kpcb.com Organizational Concepts for Entrepreneurial Technology Companies -the cathedral or the bazaar?](https://reader033.vdocuments.net/reader033/viewer/2022061304/5513b8635503463a298b4596/html5/thumbnails/39.jpg)
KPCB
• What we look for:• People• Unfair advantages• Risk up front• Characteristics: sense of urgency, corporate
partners, home run swings• Defensibility in critical mass, technology,
franchise, content, distribution• Shared upside & simple structures
![Page 40: Vinod Khosla Kleiner Perkins Caufield & Byers vkhosla@kpcb.com Organizational Concepts for Entrepreneurial Technology Companies -the cathedral or the bazaar?](https://reader033.vdocuments.net/reader033/viewer/2022061304/5513b8635503463a298b4596/html5/thumbnails/40.jpg)
KPCB
• What we do:• Technology oriented, pioneering industries• IPO oriented big companies• Incubations, early stage, speedups• Co-ventures
![Page 41: Vinod Khosla Kleiner Perkins Caufield & Byers vkhosla@kpcb.com Organizational Concepts for Entrepreneurial Technology Companies -the cathedral or the bazaar?](https://reader033.vdocuments.net/reader033/viewer/2022061304/5513b8635503463a298b4596/html5/thumbnails/41.jpg)
KPCB
• What we bring:• Company building experience• Experience with pitfalls of new markets,
technology management...• Credibility• Relationships• Repertoire of mistakes• Knowledge of industry trends
![Page 42: Vinod Khosla Kleiner Perkins Caufield & Byers vkhosla@kpcb.com Organizational Concepts for Entrepreneurial Technology Companies -the cathedral or the bazaar?](https://reader033.vdocuments.net/reader033/viewer/2022061304/5513b8635503463a298b4596/html5/thumbnails/42.jpg)
![Page 43: Vinod Khosla Kleiner Perkins Caufield & Byers vkhosla@kpcb.com Organizational Concepts for Entrepreneurial Technology Companies -the cathedral or the bazaar?](https://reader033.vdocuments.net/reader033/viewer/2022061304/5513b8635503463a298b4596/html5/thumbnails/43.jpg)
The Internet: Does It Change Everything?
• First two way mass communication medium• The phenomenon: fastest social change, largest legal
creation of wealth• Adam Smith II - efficiency & economics revisited• Role of information & infomediaries• Changing economics: distribution, specialization,
narrowcasting• Technology driving business strategy• New Models: Excite, Amazon, Priceline, Ebay,
Preview, Home Grocer, Della&James...
![Page 44: Vinod Khosla Kleiner Perkins Caufield & Byers vkhosla@kpcb.com Organizational Concepts for Entrepreneurial Technology Companies -the cathedral or the bazaar?](https://reader033.vdocuments.net/reader033/viewer/2022061304/5513b8635503463a298b4596/html5/thumbnails/44.jpg)
• Corporate culture & infrastructure: “real time”
• Fastest social change and largest legal creation of wealth (Cisco, Dell)
• Tight feedback loops
• Ideal for experimentation (Vs. planning)
• Leverage
• People as the killer app
The Internet: Does It Change Everything?
![Page 45: Vinod Khosla Kleiner Perkins Caufield & Byers vkhosla@kpcb.com Organizational Concepts for Entrepreneurial Technology Companies -the cathedral or the bazaar?](https://reader033.vdocuments.net/reader033/viewer/2022061304/5513b8635503463a298b4596/html5/thumbnails/45.jpg)
• This is a winner-take-all economy ...
• Winners and losers diverge quickly
• Adaptability, agility, momentum, and execution are the keys
• Examples: Amazon/Barnesandnoble.com, AOL/Compuserve, @Home/Roadrunner, MSFT/Apple/IBM/Lotus, Cisco/Bay
The Internet: Does It Change Everything?
![Page 46: Vinod Khosla Kleiner Perkins Caufield & Byers vkhosla@kpcb.com Organizational Concepts for Entrepreneurial Technology Companies -the cathedral or the bazaar?](https://reader033.vdocuments.net/reader033/viewer/2022061304/5513b8635503463a298b4596/html5/thumbnails/46.jpg)
Key Principles
• Knowing what you don’t know
• Whose opinion ?
• Identify your liabilities & assets