tv Press Here NBC October 23, 2011 9:00am-9:30am PDT
how much does tim company ceo love basketball? we'll talk round ball and enterprise soft bear. >> and celebrating lessons learn the hardware with kym mcnicholas and joseph mann this week on "press: here." when his daughter wanted to play basketball, he decideded to coach. despite the fact that as someone relatively new to america, he had never played the game. he coached the girls to the national championship. but that's just what he does. after leading a girls team, he decided to try something more
difficult, running a pro team. he and some other investor bought the nba's golden state warriors where he serves as vice chairman. his life is full of such achievements as a boy in india, he heard with the existence of m.i.t. through a documentary film and decided to attend. he did. that was before he attended harvard. he started a can he called timc on that. it booked $180 million in revenue last quarter. and he's written a few books. they're all best sellers. "he he runs the most boring company in the world and yet he's the most fascinating of guys." kym mcnicholas of course here and you gave me special
permission to say that. you are not the only owner of the warriors. tell me how that works. how does that structure work? >> well, there's three of us, joe, peter and myself. and some smaller investors. but we're a group of bay area people that love sports, take love basketball, and we wanted to create the team of the century. so when the team was up for sale, we took the opportunity. >> took it right out from under larry. beat him at his own game. >> yeah, thanks for mentioning that. >> you're welcome. >> so larry ellison had bid for the team, as well. you outbid him and he wasn't pleased. did you talk to him afterwards? >> well, no, but we've beaten
larry before in the marketplace, so it wasn't something new. >> let's me point out if larry ellison would like to come on the show and have a rebuttal -- how much influence -- you're vice chairman of the team. how much influence does a guy who love basketball have on the team? we all have fantasy leagues. you have an actual team. you could say i want that guy to play over there. >> joe is the managing partner and he gets input from me, from peter, and for example we're applying some of my software both to the business side and also to the basketball side. so we want to be able to provide fans with a fantastic experience.
>> is this like money ball on steroids where you use metrics others don't use? >> exactly. you can use visual analyst to say what only bin nation of players produce the best results, where should you shooting from, how you defend the other team. so there's a lot of math that can be applied to the game itself. >> probably shouldn't say anything is on steroids, but the innocent question is how much do you call somebody on the phone and say put this guy in the position. the answer is all the time. you're looking at this software and saying this is what we should be doing and this is where we should be shooting from and why is that guy shooting from three points when he shouldn't be. >> are you in the box actually looking? >> no, at the end of the day, the coach makes the calls. all we can do is provide the data which the coach can make the right kind of decisions. >> which leads me to the book,
"advantage." which scott mentioned was on the "new york times" best seller list. but it talks about having that advantage, using your analytics and the data and combining that with what's happening real time, what's happening on the court. so how would that work in terms of the warriors? >> it turns out that you have patterns that are formed and if you can connect those patterns with what's happening in real life and yyou connect those dotses, you can actually have a huge advantage. if you look at how the game is progressing and based on history you know the kinds of things that might work or might not work, then you can make adjustments as things are happening. now, it turns out that this this is true in life, it's true in sports. wayne gretzky, we use him as an example. he wasn't the biggest or strongest, but he became the t
greatest ice hockey player of all time. so he's a classic example of the guy with the two second advantage. so he combined the 10,000 hours of practice with what was happening on the ice and then make the exact right move. so he was always at the right place. >> same thing you see in soccer. if you ever watched the goalies when somebody is just kicking the ball straight in, sometimes they miss, but you're like, wow, he's kicked the ball there and he's already going the other way. >> you look at the great soccer player, they actually do that. or roger federer, he always seems to be at the right place. if i could take that capability and give to a business, then imagine what a business could do. and one examples in the book is a guy called mystery who calls himself the world's greatest pickup artist. he had no luck with women and he
decided that he was going to get really good at it. and he just started practicing talking to women and now he k m krakra claims he's the world's greatest pickup artist. so what can a bank, a retailer, phone call learn? turns out a lot. he's a smart man if he's figured out the female brain, but -- >> joe and i are going -- >> that's right. >> he's figured out the exact right 24i7k to say to a woman at the exact right time. it turns out that my customers, bank, retailers, phone companies, they're trying to do exactly that, make the exact right pitch to their customer at the exact right time. >> you can give us some of the principles of this? everybody is drowning in big data. we all have these masses of data and the trick is seeing the patterns, making sense of them
and then applying to your future actions. what are a couple of principles? >> the premises is just a little bit of the right information, just a little bit beforehand is more useful than all the information in the world six months after. and so, for example, there's a company in india which is one of the largest mobile phone operators. they have about 70 million customers. they add 5 million every month. but they lose 1.5 million. so they tried the after approach, which by the way is looking at a database from oracle or some little company like that -- >> shot number three. got it. >> i have a lot of respect for them. but you can't really -- it's too late six months after about so that what we were able to do for them is what we found is that if you drop six calls in a 24 hour period, you switch. so that's the two second advantage. after the fifth dropped call, we
offer free minutes if you top off your prepaid card right away. so we solved that problem of customer loss. now, power outages. you see power outages happening all the time. it turns out that if you look at what's happening in the grid, you can see a pattern and you can anticipate what's going to happen. so we're making power outages a thing of the past. they will no longer happen. >> and this is coming through the software. but a human being has to anticipate this or this is formulas that the software helps you come up with? fx, then execute y immediateimm. >> right. math is starting to overtake science. so we have a retailer in the uk and it turns out that if you buy champagne, razor blades and diaper, it's probably a stolen credit card.
>> i don't know you put the three of those together. >> because they wouldn't come together, therefore, it must have stolen? >> they're high value. diaper, you look like a good guy. >> we'll take a quick break for a commercial and be back in just a minute. ffrts look, every day we're using more and more energy. the world needs more energy. where's it going to come from? ♪ that's why right here, in australia, chevron is building one of the biggest natural gas projects in the world. enough power for a city the size of singapore for 50 years. what's it going to do to the planet? natural gas is the cleanest conventional fuel there is. we've got to be smart about this. it's a smart way to go. ♪
we're take talking with the ceo of timco. >> i was talking to another ceo about just starting to build this company and we were talking about you how you have to use analytic software in order to be able to discover these patterns. ultimately combine it with real time information and make the decisions. they can actually do it on their own and take notes every single day on the conversations they're
having with investor, mistakes they're making along the way. and then look at the patterns. >> and people that are very successful, whether an athlete or talk show host or saxophone player, they are able to have this happen in their brain where they found the patterns, thousands of hours of practice gives you those patterns, and they're able to look at event as as they're happening and connect those dots. we call that chunking where you have chunks of these patterns in your brain and your brain quickly makes that connection. so this is snag veis something successful people in any field can do. whether it's a chef, a police chief. >> and you're replicating that in software. >> if i can give that capability to a company, to a government, to the defense establishment, protect against cyber security -- >> i was going to ask you about
that. i'm very interested in cyber security. i think people more broadly are becoming interested in cyber security and there's a problem of too much information. threats are all over the place. does your company do any work -- >> in fact the government, the most secure parts of the government, and you know what they are, department of defense, hope land security, they are using us for doing just that. and so the old approach was to try build a bigger and better lock, but no matter how good the lock, somebody finds a way to pick it. so what we do is we look for suspicious activity in the neighborhood. it's more like a neighborhood watch. we look at events. and when we find certain patterns, we're able to say there and he a high likelihood that these guys are up to no good so let's shut everything down. so that is how some of the most
secure parts of the government is approaching cyber security. >> it almost seems like it's stating the obvious. >> let me ask a related question. if i am a growing company, how do i know when i need to go? how do i know when i need oracle or s.a.p.? when did we get big enough? >> for us, you can use it at almost any size. s.a.p. and oracle are 20th century companies. they're companies of the past. >> that's four. serious question, though. i'm a start up, we're growing fast. >> i'll give you a little secret. and you can count that as five. the companies of the future, i was talking to a friend at excel, they've invested in 60
new companies. not one of those companies uses an oracle database. a database is like a land line. it's actually like a phone that doesn't ring. so something happens and it goes into the thing, but nobody else knows somebody happens. >> nothing comes out of it instantaneously. >> exactly. sf >> one magazine writer said you are the last independent business intelligence company last. hasn't oracle or s.a.p. come a knocking and said we like what you do? >> i can't answer those kind of questions. >> but it's a good one. >> your smile just did. >> we believe our best answdays ahead of us and we believe that our software is changing the world. >> isn't it surprising that they are the last or would be considered the last? i mean, wouldn't you think there would be more? >> or is there some start up --
what start ups are coming in behind you? >> i'm afraid of everyone, so we're very paranoid, but takes a lot of money to build this kind of technology. and we've made that investment over the last decade. so we are paranoid, we're afraid of everyone, but we're working really hard to stay ahead. >> all right. the final score with the owner of the golden state warriors, five, oracle was zero. thank you for being here this morning. coming up, they say if you fail to plan, you plan to fail. coming up next, a woman who plans to fail in ways you probably never considered.
and failure, they'll be celebrating failure in san francisco at this year's fail con on monday, a celebration of failure with speakers from such epic fails of myspace and the search engine we all forgot about called cool. now, we have touched several times on the value of failure and how silicon valley admires it unlike other cultures which don't. but start us fresh with that. what is the value of failure, what are you trying to show? >> essentially that if you're trying to take a risk and be one of the people that will be one of the leaders, one of the steve jobs, the mark zuckerbergs to change the world, you have to take those risks that will most likely end in failure. to get that far, you'll make a lot of little failures on the way. you need to recognize the
failures early, acknowledge it went wrong, figure out what went wrong, readjust, realign, and people are constantly trying to hide from those failures and they one of the get anywhere. >> it's interesting one of the top green venture capitalists here had something he calls the fail strategy. he'll figure out that there's this big problem he knows needs to solve and he'll invest in ten company which is he he knows nine out of ten of which will fail. but is that the best way to go? >> that's hard to say as an investor. you're certainly taking nine out of ten risks. but i know that even twhole business model is we'll build 20 small, 10 will fail, 5 will be pretty good and 5 will be incredible. >> and one might be angry birds. >> they won't invest if they
think they're going to fail. >> there are lots of people that like to fail from time to time, but you've got aillion dollars and people will give you money no matter what. >> how does the dynamic apply within big companies? people are used to working their way up the corporate ladder. how do you kill off their projects without upsetting them so much that they give up and quit? >> sure. having never worked in a huge company, i'm not sure that i would actually know. but i think a lot of it starts right now kind of reforming some people that we're sending in to those companies and letting them know it's okay to at that time risks. and a lot have this idea that you can't fail. you might get fired, you might get laid off. so to start rewarding that early on and not actually saying we're killing off your baby because you did it badly, but to say that was a great venture and there are incredible things that you taught us and we'll move on, doesn't quite work out.
>> i'll be honest, too, and the answer is don't be a big company. we've seen that over and over. the big company with the two guys in there who have an idea who say it's just going to be easier instead of giving this idea to the big company and it won't go anywhere. >> too many levels. >> ich got've got a garage, let make it in that. how hard is to get a speaker at the fail conference? >> in san francisco it's surprisingly easy and i think it's because we have this cull dhur that really admires failure. it's not really admiring the fail chur bure failure, but the return from it. someone that can say i won't hide behind it. so here in san francisco i found that it's surprisingly easy. we just did the show in paris and that was harder to get people it acknowledge the
failures. it was a lot of training and one-on-one with me just coaching them on how this wasn't to say they were failures. in fact we only invite people we consider successful to the show. but acknowledge that they've made mistakes and this was to help the audience understand that and better emphasize with th them. >> your conference starts monday. what sort of failures will we have? >> two of my favorites is hearing about how chris will take from his myspace lessons and bring them into his gaming company. and emma patterson from cool. >> what's the best story that you still say i can't believe you did that? >> i have two that i really admire. one is scott, the founder of the lookerry. and he came on stage with an honest story of how much it
takes an emotional toll to shut down your company. and that founders frequently just ignore that. they think if we get there, it will be fine. and he came on stage and say you'll layoff 20 of your best friends. just be ready. it was one of those moments where you're sitting in the audience and you feel the shudder that goes down everybody's back. so that was just a great moment. and then janice frazier had an incredible story where she was shutting down her company, she wrote this long apology note on the five things she did wrong as a ceo and what she would change in her next company. and all five of them wrote back to say we'll invest. done. and that was just a great like, wow, you just lost sxchlt million dollars of hair money and they all just said to you, okay, we're in. so that was an incredible story.
>> about a million years ago there was company called nap sist ster which i wrote a book about and sean has a new company. he's been awfully busy doing entrepreneurial things. have you approached either of them? napster is one of the ultimate. >> i try to do all my invites through annan intro through ann intro. i'd love to get sean. >> my one regret, i went to cover the fire sale of all the office equipment and they're sitting on one of the book shelves was the business license for napster. and i didn't i cannot remember why or how i thought it was a good idea not
to buy because that would be awesome to hang on your bathroom wall. >> i was attending my own conference while we were trying to start our own startup. sitting in my own conference,is bored and realizing that nothing i was hearing was actually relevant to what i was doing at that moment. people were talking about how to scale to a million years. and i was like how about two or three. i started realizing i'd like them to tell me what they did wrong really early on so i don't do it. so i started asking attendees what if they talked to you about their failureses, would you come to that show? everyone was like, yeah, that would probably become the number one show on my list if you got all of these speakers.
and we had like a leading designer here. and they are like, yeah, if you got people like this to talk about what they've done wrong, i'd be there. so mark came back and talked about his seven rtries. we talked about the failures at pay pal. a lot of these successes are knowing the right people, are launching at the right market time. and you just can't do that -- i couldn't do everything mark zuckerberg did and make facebook. so i just found that was a much easier way for me to learn. >> fail con is in san francisco on sunday. i wish you luck. would that be appropriate? >> that would be very appropriate. >> well, good luck. i hope you have success. look, every day we're using more and more energy. the world needs more energy. where's it going to come from? ♪ that's why right here, in australia,
chevron is building one of the biggest natural gas projects in the world. enough power for a city the size of singapore for 50 years. what's it going to do to the planet? natural gas is the cleanest conventional fuel there is. we've got to be smart about this. it's a smart way to go. ♪ that's our show for this week. if you missed the top of the