WEBVTT

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Thank you.

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Yes, it is true that I am
a Stanford graduate.

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Don't hold that against me, okay?

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My son goes to Cal,
so I have some link to Cal.

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It is really an honor
to speak at any TEDx,

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but to open one up
is really, really special.

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So last night I told my wife,
you know, of all places,

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in your wildest dreams,

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did you ever think that I would 
open up TEDxBerkeley?

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And she said, honey,
you're not in my wildest dreams.

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(Laughter)

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So, welcome to my life.

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(Applause)

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You know, the theme of thinking
and defining and creating

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is all about innovation,

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so my talk is about the art of innovation.

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I use the top ten format.

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That's because I've seen
so many high-tech speakers,

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and I'll tell you,
most high-tech speakers suck,

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so I figured out very early in my career
if you use the top ten format,

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at least the audience can track
progress through your speech,

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so if they think you suck,

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they know about
how much longer you'll suck.

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So I have ten key points for you.

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I worked at Apple,

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I've been a venture capitalist, 
an entrepreneur, an advisor to Google,

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I've done a lot of things,
and I've learned a lot about innovation,

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which I would like to pass on to you now
so that you may go and change the world.

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Okay?

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This is my top ten
of the art of innovation.

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It starts with the desire to make meaning
as opposed to make money.

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Making meaning means
that you change the world.

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And I think you'll notice that if you 
happen to change the world,

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you will also probably make money,

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but if you start off
with the sole desire to make money,

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you probably won't make money,
you won't make meaning,

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you won't change the world,
and you will probably fail.

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So my first thought for you is:
determine how you can make meaning.

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How can you change the world?

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Here are some examples.

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With Apple, Apple wanted
to democratize computers.

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They wanted to bring computing
power to everyone.

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That's the meaning they made.

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With Google, they wanted
to democratize information,

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making information available to everyone.

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With eBay, they wanted
to democratize commerce

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so that anyone with the website

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could stand toe-to-toe
with any other large retailer.

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Examples of companies making meaning.

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And YouTube, finally, wanted
to enable people to create video,

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to upload video, to share video.

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So this is an example of the company
and the kind of meaning they made.

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And, as you know,

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they all made this kind of meaning
and they've been highly successful.

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So what I noticed in my career
is that if you truly want to make meaning,

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it's the first step towards innovation.

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The second step is to make a mantra:

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a two- or three-,
maybe four-word explanation

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of why your meaning should exist.

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This is an anti-example.

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This is the mission statement of Wendy's.

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The mission of Wendy's is to deliver
superior quality products and services

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for our customers and communities

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through leadership,
innovation, and partnerships.

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I have been through Wendy's
many times in my life -

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I've eaten at Wendy's;
I've driven through Wendy's -

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and in every occasion,
it has never occurred to me

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that "Guy, what you are participating in

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is leadership, innovation,
and partnerships."

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(Laughter)

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You know, excuse me,

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but I thought I was just getting
French fries, Coke, and a hamburger.

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This is the problem
with mission statements.

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Don't make a mission statement.
Make a mantra.

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Wendy's mantra
should be "Healthy fast food."

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Three words that determine
what Wendy's is trying to do.

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Somewhat oxymoronic -
but "Healthy fast food."

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Nike. Nike has a great slogan: Just do it.

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That's a slogan.

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A mantra explains why you should exist,

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and the Nike mantra
is "Authentic athletic performance."

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And finally, there's FedEx.

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When you absolutely, positively
want something somewhere,

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what does FedEx stand for?

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It stands for "Peace of mind."

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So my second recommendation to you

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is that when you decide
on the kind of meaning you make,

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try to find two or three words

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that describe why
that meaning should exist.

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Not a 50-word mission statement,

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two- or three-word mantra.

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The third thing
is a matter of perspective.

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The perspective is to jump curves.

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Not to stay on the same
stupid curve that you're on.

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Not to try to do things 10% better.

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When we were creating the Macintosh,

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we were not trying
to make a slightly better Apple II

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or a slightly better MS-DOS machine.

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We were trying to jump
to the next curve of personal computing.

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The greatest example
of this occurs in the ice business.

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Ice 1.0.

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In the late 1800s early 1900s,

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there was an ice harvesting business
in the United States.

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This meant that Bubba
and Jr., during winter,

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would go to a frozen lake or pond,
cut blocks of ice.

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Nine million pounds of ice
was harvested in 1900.

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Their idea of innovation
was: bigger horse,

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more horses, bigger sleigh, sharper saw.

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But it was fundamentally: wait for winter,
live in a cold city, cut blocks of ice.

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30 years later, we have Ice 2.0.

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Now we have the ice factory.

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Major technological breakthrough.

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It did not have to be winter;
it did not have to be a cold city.

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You froze water centrally

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and delivered it
via the ice man in the ice truck.

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Imagine the breakthrough this was.

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No more limitations by climate. 
No more limitations by season.

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You could have an ice factory.

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30 years go by, we have Ice 3.0.

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Refrigerator curve.

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Now, it's not a matter of
can you freeze water, essentially?

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Can you put it in a truck?

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Can you deliver the ice to people?

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Now, everybody could
have their own personal ice factory.

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A PC, if you will. A Personal Chiller.

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(Laughter)

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The very interesting story
about all of these curves

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is that none of the organizations
that were ice harvesters

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became ice factories,

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and ice factories did not
become refrigerator companies,

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because most companies define themselves
in terms of what they do,

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not the benefits they provide.

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If you define yourself
as we cut blocks of ice out of lakes,

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you remain an ice harvester.

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If you define yourself
as we freeze water centrally,

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you remain an ice factory.

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If you define yourself

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as we make a mechanical gadget
called a refrigerator,

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then you stay on the refrigerator curve.

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Great innovation occurs
when you get to the next curve,

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when you go from telephone to Internet,

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when you go from a Daisy-wheel printer
to a laser printer, to 3D printing.

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Great innovation occurs on the next curve.

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The fourth thing is to roll the DICEE.

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These are the five qualities
of great innovation.

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Great innovation is deep.

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Lots of features. Lots of functionality.

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This is a picture
of a fanning sandal made by Reef.

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Arguably the deepest sandal ever made.

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Every sandal has one primary purpose:
to protect your feet.

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If you look at that circled area,
that's a metal clip.

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That metal clip is for the sandal
to open beer bottles.

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This sandal has twice the functionality.

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Twice the depth of any other
sandal in the world.

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Great products are also intelligent.

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When you look at it, you say, "Aha,

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somebody understood my pain;
somebody understood my problem."

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This is a GT500 Shelby Mustang. 
650 horsepower.

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For those of you in Berkeley

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who do not rate the horsepower
in muscle cars, this is 6.8 Priuses.

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(Laughter)

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I would love to buy one of these cars.

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59 years old,

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going through a midlife crisis,
feelings of impotency: I would love ...

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(Laughter)

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I would love to buy this car to compensate
for my feelings of inadequacy.

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However, I have two teenage boys;
one's 18, and one's 20.

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And I know that no matter
how carefully I plan it,

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there may be instances
where they may drive my car.

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And the thought of them
in a 650 horsepower car is immoral.

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(Laughter)

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I've learned, however, that Ford makes
a very intelligent product

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called the MyKey.

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And what the MyKey enables you to do

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is program the top speed
of the car into the key.

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Very intelligent product.

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Great products are also complete.

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It's the totality of the product.

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In the software business,
it's not just the software;

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it's not just the DVD.

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It's the webinar;

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it's the documentation;

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it's the android developers
if you have an android phone;

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it's the iOS developers
if you have an iOS phone;

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it's the totality.

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Great products are also empowering.

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They make you more creative,
more productive.

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They enhance you.

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They change the meaning of your life.

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This is a picture of a MacBook Air.

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If you use a Macintosh,
it becomes one with you.

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It makes you more creative
and more powerful.

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More productive.

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Windows you have to fight.

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You have to wrestle Windows to the ground.

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You need to defeat Windows.

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(Laughter)

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And, finally, great products are elegant.

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Somebody cared about the user interface.

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So as you go through life,
and you're trying to jump curves,

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ask yourself, "Am I creating something
that's deep and intelligent,

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and complete, and empowering, and elegant?

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Am I rolling the DICEE?"

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The fifth thing is -
I stole something from Bobby McFerrin.

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He had a great song.

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Don't Worry. Be Happy.

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But what innovators do
is don't worry, be crappy,

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which is to say, when you
have the first refrigerator,

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there may be elements of crappiness to it.

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When you have the first laser printer,

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there may be elements of crappiness to it.

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When you had the first Macintosh,

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thanks to my efforts
there was no software;

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there was no hard disk,
not enough RAM, too slow a chip.

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Lots of elements of crappiness to it.

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But, if you waited for the perfect world

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and you waited till the chips
were cheap enough, and fast enough,

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and everything was in place,
you would never ship.

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And I learned a very valuable lesson.

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Don't worry. Be Crappy.

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When you have jumped to the next curve,

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it's OK to have elements of crappiness
to your revolution.

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I am not saying you should ship crap.

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I am saying that you should
ship things that are revolutionary,

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innovative, on the next curve
that have elements of crappiness to it.

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Biotech people, ignore this slide.

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(Laughter)

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Number six is to let 100 flowers blossom.

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I stole this from chairman Mao

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although it's not clear to me
he ever implemented this.

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Letting 100 flowers blossom

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means that at the start
of great innovation,

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you may think you have in mind 
exactly who your user is,

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exactly who your customer is,
what they should do with your product.

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And you may be surprised


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that people are going to use your product
in ways you did not anticipate.

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It's going to be people who you did not
anticipate would be using it at all.

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And when this occurs: hallelujah!

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Thank God that it's occurring.

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Positioning and branding
ultimately comes down

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to what the consumer decides,
not to what you decide.

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So, with Macintosh, we thought
we had a spreadsheet, database,

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and word processing machine.

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We were zero for three there.

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What made Macintosh successful
was Aldus PageMaker.

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PageMaker created a field
of flowers called desktop publishing.

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Desktop publishing
was what saved Macintosh.

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Not spreadsheet, database,
or word processor.

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If we focused on spreadsheet, database,
and word processor

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and ignored desktop publishing,
Apple would be dead today.

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With Apple dead,
it would be a different world.

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We'd all have phones with real keypads;
the batteries would last more than a day;

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the GPS would actually work.

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It would be a different world, right?

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Aldus PageMaker was a gift
from God to Apple because it saved Apple.

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I believe in God,

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and one reason why I believe in God
is there is no other explanation

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for Apple's continued survival
than the existence of God.

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(Laughter)

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Let 100 flowers blossom.
Don't be proud.

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Take your best shot
with positioning and branding,

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but then when customers use your product,

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if they say it's a desktop
publishing machine:

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Hallelujah! Declare victory.
It is now a desktop publishing machine.

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Number seven, polarize people.

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Great products, great services,
great innovation polarizes people.

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This is a TiVo. People like me,
who travel a lot - I love TiVo.

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We have four TiVos in our house.

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I need to time shift a lot of TV;
I love to watch TV.

00:12:26.527 --> 00:12:29.012
There are people who also hate TiVo.

00:12:29.882 --> 00:12:31.331
People who hate TiVo

00:12:31.331 --> 00:12:34.738
usually work for large brands
and advertising agencies,

00:12:34.738 --> 00:12:38.437
because people like me, 
we watch advertising one day a year.

00:12:38.437 --> 00:12:39.972
About a week ago, right?

00:12:39.972 --> 00:12:42.094
We watch Super Bowl ads.

00:12:42.094 --> 00:12:43.313
The rest of the year,


00:12:43.313 --> 00:12:47.107
we are fast-forwarding
with TiVo through ads.

00:12:47.833 --> 00:12:49.535
Great products polarize people.

00:12:49.535 --> 00:12:51.537
If you're an agency, you hate TiVo.

00:12:51.537 --> 00:12:53.335
If you're me, you love TiVo.

00:12:53.335 --> 00:12:55.274
You can love or hate a Harley-Davidson.

00:12:55.274 --> 00:12:57.763
You can love or hate a Macintosh.

00:12:57.763 --> 00:12:59.572
You can love or hate an iPhone.

00:12:59.572 --> 00:13:02.548
I'm not saying that you should
intentionally piss people off,

00:13:02.548 --> 00:13:05.951
but I'm telling you
that great products polarize people.

00:13:05.951 --> 00:13:08.531
Don't be afraid of polarizing people.

00:13:08.531 --> 00:13:10.313
Number eight is churn, baby, churn.

00:13:10.313 --> 00:13:13.471
This is stolen from the Black Panthers,
who said "burn, baby burn."

00:13:13.471 --> 00:13:16.718
But what innovators in business do
is they churn, baby churn.

00:13:16.718 --> 00:13:18.095
They take version 1,

00:13:18.095 --> 00:13:21.934
and they make it 1.1, 1.2, 
1.3, 1.4, 1.5, 2.0;

00:13:21.934 --> 00:13:23.903
the hardest thing in the world.

00:13:23.903 --> 00:13:26.559
Because to be an innovator,
you need to be in denial.

00:13:26.559 --> 00:13:29.421
You need to be in denial
because the naysayers will tell you

00:13:29.421 --> 00:13:32.000
it can't be done,
shouldn't be done, not necessary.

00:13:32.000 --> 00:13:33.796
You need to ignore those people.

00:13:33.796 --> 00:13:36.586
But as soon as you ship, 
you need to flip that bit

00:13:36.586 --> 00:13:39.585
and start listening to people 
and churn your product.

00:13:39.585 --> 00:13:43.754
Change it, change it, and change it,
and keep evolving it.

00:13:44.953 --> 00:13:47.393
Number nine is all the marketing
you need to know.

00:13:47.393 --> 00:13:50.829
It is to niche thyself.
It's a very simple chart.

00:13:50.829 --> 00:13:53.065
On the vertical axis,
we measure uniqueness.

00:13:53.065 --> 00:13:55.401
On the horizontal axis,
we measure value.

00:13:55.401 --> 00:13:57.229
This is a 2 × 2 matrices.

00:13:57.229 --> 00:13:59.731
When you graduate,
if you go to work for McKinsey,

00:13:59.731 --> 00:14:02.927
you'll be charging five million dollars
for people to figure out

00:14:02.927 --> 00:14:06.019
that they want to be in the upper
right-hand corner of this chart.

00:14:06.019 --> 00:14:07.039
(Laughter)

00:14:07.039 --> 00:14:09.346
Let's go through all corners,
in the bottom right

00:14:09.346 --> 00:14:12.311
is where you have something
of great value but it's not unique.

00:14:12.311 --> 00:14:14.653
There, you have to compete on price.

00:14:14.653 --> 00:14:17.089
This is what I call the Dell corner.

00:14:17.089 --> 00:14:19.825
Slap the same operating system
on the same hardware.

00:14:19.825 --> 00:14:21.480
You have to compete on price.

00:14:21.480 --> 00:14:24.170
In the opposite corner,
you have something truly unique.

00:14:24.170 --> 00:14:26.332
Only you do it, but it is of no value.

00:14:26.332 --> 00:14:29.223
In that corner you are just plain stupid.

00:14:29.223 --> 00:14:30.513
(Laughter)

00:14:30.513 --> 00:14:33.275
Bottom left corner,
we call that the USC corner.

00:14:33.275 --> 00:14:34.535
The bottom left corner ...

00:14:34.535 --> 00:14:35.639
(Laughter)

00:14:35.639 --> 00:14:38.259
(Applause) (Cheering)

00:14:41.219 --> 00:14:43.741
The bottom left corner
is what I call the .com corner.

00:14:43.741 --> 00:14:44.883
In the .com corner,

00:14:44.883 --> 00:14:47.686
you have something that's not 
valuable and not unique.

00:14:47.686 --> 00:14:50.978
Like buying dog food online.
We buy dog food online.

00:14:50.978 --> 00:14:54.140
You pay as much for the dog food,
because of shipping and handling,

00:14:54.140 --> 00:14:55.630
and then you have to be at home

00:14:55.630 --> 00:14:57.963
when UPS drops off
the dead cow in the can.

00:14:57.963 --> 00:15:00.810
So it's not very convenient
and it's just as expensive,

00:15:00.810 --> 00:15:02.031
so it's not valuable.

00:15:02.031 --> 00:15:04.870
And then stupid people like me,
because there was pets.com,

00:15:04.870 --> 00:15:07.593
we decided we had to have our
own portfolio in pets.com

00:15:07.593 --> 00:15:09.185
so there were multiple ways

00:15:09.185 --> 00:15:12.464
to spend the same amount of money
on dog food, less conveniently.

00:15:12.464 --> 00:15:13.979
That's the worst corner.

00:15:13.979 --> 00:15:15.564
Not valuable. Not unique.

00:15:15.564 --> 00:15:17.992
If you want to be in
is the upper right-hand corner.

00:15:17.992 --> 00:15:20.452
In that corner, you are unique.

00:15:20.452 --> 00:15:23.823
Where I go to movies,
I can only buy tickets with Fandango.

00:15:23.823 --> 00:15:25.314
When you take kids to a movie,

00:15:25.314 --> 00:15:27.986
you really want to know
you have a ticket before you go.

00:15:27.986 --> 00:15:31.120
By the way, may I highly
recommend the Lego Movie?

00:15:31.120 --> 00:15:35.037
It is a fantastic movie.
Trust me when I tell you.

00:15:35.037 --> 00:15:37.136
Go see the Lego Movie. Fandango.

00:15:37.136 --> 00:15:39.171
The only way you can buy a ticket.

00:15:39.171 --> 00:15:40.506
Breitling emergency watch.

00:15:40.506 --> 00:15:42.368
The only watch that can save your life.

00:15:42.368 --> 00:15:44.949
Pull out the big knob,
puts out an emergency signal.

00:15:44.949 --> 00:15:46.445
That watch can save your life.

00:15:46.445 --> 00:15:47.479
Smart car.

00:15:47.479 --> 00:15:49.965
Everybody has cars
that can park parallel to the curb

00:15:49.965 --> 00:15:51.516
when there's lots of parking.

00:15:51.516 --> 00:15:55.720
How many of us have a car that can
park perpendicular to the curb, right?

00:15:56.210 --> 00:15:58.993
If you're an engineer,
make a product unique and valuable.

00:15:58.993 --> 00:16:00.400
If you're a marketing person,

00:16:00.400 --> 00:16:03.692
you communicate to the world
that your product is unique and valuable.

00:16:03.692 --> 00:16:06.432
Number ten, perfect your pitch.

00:16:06.432 --> 00:16:10.235
If you're an innovator,
you have to learn to pitch.

00:16:10.235 --> 00:16:11.670
Two key points about pitching.

00:16:11.670 --> 00:16:14.173
First, customize your introduction.

00:16:14.173 --> 00:16:18.505
Start with something
customized to the audience.

00:16:19.155 --> 00:16:21.347
This is a picture
of an LG washer and dryer.

00:16:21.347 --> 00:16:24.312
I used these pictures to introduce
my speech in Latin America

00:16:24.312 --> 00:16:26.885
when I was speaking to the LG management.

00:16:26.885 --> 00:16:29.088
However, to tell you
the backstory behind this,

00:16:29.088 --> 00:16:31.610
I was already in Brazil
when I thought about:

00:16:31.610 --> 00:16:34.406
well, I should use the picture of
our LG washer and dryer.

00:16:34.406 --> 00:16:37.596
So I didn't have pictures,
not something I carry with me, you know?

00:16:37.596 --> 00:16:39.298
Pictures of your washer and dryer.

00:16:39.298 --> 00:16:41.900
So I sent a text message
to my two older boys,

00:16:41.900 --> 00:16:43.902
one of whom is in the audience right now.

00:16:43.902 --> 00:16:45.537
His name is Nic, older boy.

00:16:45.537 --> 00:16:47.206
Younger boy, Noah.

00:16:47.206 --> 00:16:48.808
So I sent them a message saying,

00:16:48.808 --> 00:16:51.545
you know, get off
the Call of Duty that I bought you

00:16:51.545 --> 00:16:54.567
on the Xbox that I bought you
in the house that I bought you.

00:16:54.567 --> 00:16:56.479
Take your iPhone that I bought you;

00:16:56.479 --> 00:16:59.857
go downstairs - both of you -
take pictures of the LG washer and dryer.

00:16:59.857 --> 00:17:01.854
I need it right away.

00:17:01.854 --> 00:17:04.522
15 minutes go by, nothing happens, right?

00:17:04.522 --> 00:17:08.269
So, again, Nic is the older boy.
He's the cowboy.

00:17:08.269 --> 00:17:10.462
The other one is in high school still.

00:17:10.462 --> 00:17:11.610
So this is what happens.

00:17:11.610 --> 00:17:14.071
This is the text message.
I send Nic a text message.

00:17:14.071 --> 00:17:16.937
Did you get my text message
because I don't see the pictures.

00:17:16.937 --> 00:17:19.047
Nick responds that Noah,
his younger brother,

00:17:19.047 --> 00:17:20.588
said he would take the pictures.

00:17:20.588 --> 00:17:23.687
By the way, can you get us some free TVs?

00:17:23.687 --> 00:17:24.977
(Laughter)

00:17:24.977 --> 00:17:26.377
Welcome to my life.

00:17:26.377 --> 00:17:29.014
And then you see my bottom response.

00:17:29.014 --> 00:17:31.336
I don't think so, Nic.

00:17:31.336 --> 00:17:32.951
Welcome to my life.

00:17:32.951 --> 00:17:35.721
The key here is to customize
your introduction.

00:17:35.721 --> 00:17:37.256
When I spoke in Moscow,

00:17:37.256 --> 00:17:39.258
I opened up with this slide and I said,

00:17:39.258 --> 00:17:41.469
"Wow, you Russians have big balls."

00:17:41.469 --> 00:17:43.329
(Laughter)

00:17:43.329 --> 00:17:46.767
In Istanbul, I opened up with this picture
of me in the Grand Bazaar.

00:17:46.767 --> 00:17:48.541
That guy behind me is the shopkeeper.

00:17:48.541 --> 00:17:50.994
He is really happy.
You know why he's really happy?

00:17:50.994 --> 00:17:54.968
Because he's thinking, this dumbass
American tourist is going to buy this fez.

00:17:54.968 --> 00:17:56.058
(Laughter)

00:17:56.058 --> 00:17:58.587
This fez has been in my family
for three generations.

00:17:58.587 --> 00:18:01.980
I finally found somebody
stupid enough to buy this fez.

00:18:01.980 --> 00:18:04.946
Trust me when I tell you,
if you'd open up a speech in Istanbul

00:18:04.946 --> 00:18:08.128
with a thing like that,
a picture like that, you own the audience.

00:18:08.128 --> 00:18:11.630
Customize your introduction. 
More on slides.

00:18:11.630 --> 00:18:13.826
10, 20, 30 rule of presentations.

00:18:13.826 --> 00:18:16.468
The optimal number of slides
in a presentation is ten.

00:18:16.468 --> 00:18:17.483
Ten.

00:18:17.483 --> 00:18:19.915
Now, you're all Cal people.
You're not stupid.

00:18:19.915 --> 00:18:21.353
You know I'm way past ten.

00:18:21.353 --> 00:18:23.095
You may be thinking I'm a hypocrite.

00:18:23.095 --> 00:18:24.356
How should I explain this?

00:18:24.356 --> 00:18:27.649
I will explain this: you are not me, OK?

00:18:27.649 --> 00:18:29.649
(Laughter)

00:18:29.649 --> 00:18:31.076
Ten slides.

00:18:31.076 --> 00:18:34.650
You should be able to give
these ten slides in 20 minutes.

00:18:34.650 --> 00:18:37.639
Yes, you may have an hour slot,
but to this day, unfortunately,

00:18:37.639 --> 00:18:40.285
95% of the world uses Windows laptops.

00:18:40.285 --> 00:18:43.362
Those people need 40 minutes
to make it work with the projector.

00:18:43.362 --> 00:18:44.482
(Laughter)

00:18:44.482 --> 00:18:47.223
And the last thing is the optimal
size font is 30 points.

00:18:47.223 --> 00:18:50.435
A good rule of thumb is to take
the oldest person in the audience;

00:18:50.435 --> 00:18:52.150
divide their age by two:

00:18:52.150 --> 00:18:53.966
60-year-old divided by two, 30.

00:18:53.966 --> 00:18:56.031
50-year-old divided by two, 25 points.

00:18:56.031 --> 00:18:58.183
Someday, you may
be pitching a 16-year-old VC.

00:18:58.183 --> 00:19:00.373
That day, God bless you.
Use the 8 point font.

00:19:00.373 --> 00:19:01.560
(Laughter)

00:19:01.560 --> 00:19:04.123
Eleven, as a bonus
to my friends here at Cal:

00:19:04.880 --> 00:19:08.182
don't let the Bozos grind you down;
they will try to grind you down.

00:19:08.182 --> 00:19:11.367
The more innovative you are,
the more they'll try to grind you down.

00:19:11.367 --> 00:19:14.701
There's two kinds of Bozos in the world.
I'm an expert in Bozos, OK?

00:19:14.701 --> 00:19:15.801
Two kinds of Bozos.

00:19:15.801 --> 00:19:19.715
Slovenly, disgusting, pocket protector,
body odor, just a loser of a person.

00:19:19.715 --> 00:19:21.426
Rusty car. Japanese watch.

00:19:21.426 --> 00:19:23.644
You look at and say, "Wow, what a loser!"

00:19:23.644 --> 00:19:25.263
That person is not dangerous


00:19:25.263 --> 00:19:27.733
because that person
is so obviously a loser,

00:19:27.733 --> 00:19:30.229
only a loser would listen to that loser.

00:19:30.229 --> 00:19:32.988
Because you're not losers,
you won't listen to that person;

00:19:32.988 --> 00:19:35.220
hence, that person is not dangerous.

00:19:35.220 --> 00:19:37.876
The dangerous Bozo dresses in all black.

00:19:37.876 --> 00:19:41.560
The dangerous Bozo
owns a lot of stuff that ends in "I."

00:19:41.560 --> 00:19:44.534
Like Armani, Maserati,
Lamborghini, Ferrari, OK?

00:19:44.534 --> 00:19:45.884
(Laughter)

00:19:45.884 --> 00:19:47.984
Audi is OK, a rare exception.

00:19:47.984 --> 00:19:49.521
(Laughter)

00:19:49.521 --> 00:19:50.717
That's the dangerous Bozo


00:19:50.717 --> 00:19:54.293
because you think
rich and famous parses too smart.

00:19:54.293 --> 00:19:57.866
But rich and famous parses
too lucky, not smart,

00:19:57.866 --> 00:19:59.334
at least half the time.

00:19:59.334 --> 00:20:01.900
So I believe that Bozosity
is like the flu:

00:20:01.900 --> 00:20:03.779
you need to be exposed to Bozosity

00:20:03.779 --> 00:20:07.656
so that when you encounter big Bozosity,
you have already built up the antigens.

00:20:07.656 --> 00:20:10.342
I am going to expose you to some Bozosity.

00:20:10.342 --> 00:20:13.135
"I think there is a world market
for maybe five computers."

00:20:13.135 --> 00:20:14.947
Thomas Watson of IBM.

00:20:14.947 --> 00:20:17.388
Five computers. I have
five Macintoshes in my house.

00:20:17.388 --> 00:20:19.475
In other words, I have all the computers

00:20:19.475 --> 00:20:22.410
he anticipated in the world,
in my house today.

00:20:22.410 --> 00:20:24.363
"This telephone has too many shortcomings


00:20:24.363 --> 00:20:26.959
to be seriously considered
as a means of communication.

00:20:26.959 --> 00:20:29.127
The device is inherently
of no value to us."

00:20:29.127 --> 00:20:31.830
Western Union, internal memo, 1876.

00:20:31.830 --> 00:20:36.462
Western Union wrote off telephony in 1876.

00:20:36.462 --> 00:20:39.688
Western Union should be PayPal today.

00:20:39.688 --> 00:20:40.718
Oops!

00:20:40.718 --> 00:20:41.824
(Laughter)

00:20:41.824 --> 00:20:45.559
There is no reason by anyone would
want a computer in their home - Ken Olsen.

00:20:45.559 --> 00:20:49.094
Great innovator, great entrepreneur,
said this about computers.

00:20:49.094 --> 00:20:51.433
There's no reason to have
a computer in your home.

00:20:51.433 --> 00:20:53.485
How many have a computer
in your home today?

00:20:53.485 --> 00:20:55.777
Because according to Ken Olsen
there's no reason.

00:20:55.787 --> 00:20:57.255
He was a great innovator,

00:20:57.255 --> 00:20:59.324
extremely good entrepreneur,

00:20:59.324 --> 00:21:03.664
but he was so successful on,
let us say, the ice factory curve,

00:21:03.664 --> 00:21:07.032
he could not appreciate the next curve,

00:21:07.032 --> 00:21:08.474
the refrigerator curve.

00:21:08.474 --> 00:21:11.210
And that is the art of innovation.

00:21:11.210 --> 00:21:12.389
Thank you very much.

00:21:12.389 --> 00:21:14.719
(Cheering) (Applause)