OP #249: Going Deeper On Three Business Lessons And Your Data Strategy

The importance of adaptability, resilience, and the power of connections.

Author

Darren Herman
March 05, 2024

I want to thank many of you for the kind birthday wishes. My friend Auren has a pretty cool formula he’s developed for birthdays… check it out. He sent it to me on Sunday evening with some advanced wishes and I smiled when I saw it.

I was trying to figure out a quote to post and I found this one by Bill Joel, whom my parents introduced via a cassette of Storm Front which we played in the family Oldsmobile on car trips, and more recently, Sherri and I have seen at least a half dozen times in concert over the years.

While I am not having a celebration for my birthday, I am chairing a pretty awesome event on May 6 at the Ardsley Country Club. The event is part of Silicon Alley Sports and is geared to investors, entrepreneurs, digital media & technology executives, and Silicon Alley ecosystem supporters. Basically, if you work in tech, we’d love to have you there.

Whether or not you golf or play pickleball does not matter: you can come and schmooze and enjoy without the sport. You can learn more and purchase a ticket here. Note: all monies left over from hosting the event will be donated to charity. Last year we donated thousands to Code.org. We will announce this year’s charity partner soon. The more attendees we have join us, the more impact we can make.

📈 Back in OP #243, roughly 30 days ago, I shared some leading indicators that I said we’d track over time in the OP. Since about a month has passed, I’m updating them.

As you can see from the above, the market has been on a bit of a run over the last 30 days including Bitcoin increasing in value roughly 40%. Even the equities market has been up ± 5%.

✈ Shoptalk March 17-20 in Las Vegas. Link to Agenda. Are you going? If so, reply to this note and maybe we can meetup. I’m keeping my eyes open to uses of GenAI, loyalty programs, and any recent case studies about customer acquisition.

📝This is a big month for Reddit. It disclosed it had reached a $60M/yr licensing agreement to aid in training Google’s AI. Which needs help. It also could go public this month and is using a modern approach to enabling their contributors to participate. Napkin Math wrote a nice analysis of the current state of Reddit.

🏀 I have not posted about basketball cards recently. I’ve still been collecting and attending shows, though not as frequently as have had many other priorities. With that said, one of the most iconic cards of the year has been pulled: Lebron James x Bronny James Dual Auto 1/1. This card will be up for auction starting later this week.

📖 Here are some reading links to get us started today:

I hope you enjoy this OP - it’s been a fun one to write. As always, please do not hesitate to reach out with any questions or feedback.

Darren

In OP #247, I wrote that I was giving a talk to senior business-majors at my alma matter, Skidmore College. The title of the talk was 10 Lessons I’ve Learned Along the Way (thus far) and hopefully they could learn from them. The talk went well and I’ve heard from many of them since.

I am still reflecting on two decades post-Skidmore College. Among the myriad of insights, three stand out for their universal applicability and profound impact on professional growth and success.

Firstly, the principle that "passion is your compass, but flexibility is your map" underscores the essence of adaptability in the pursuit of career aspirations. The narrative of transitioning from a Computer Science major to exploring other interests at Skidmore College exemplifies the value of being open to change. I’d also say that never in a million years did I ever think I’d end up working in Private Equity, let alone for almost 8 years. This lesson emphasizes the importance of allowing your core passions to guide you, while remaining agile and responsive to the unexpected opportunities and challenges that emerge. It's a testament to the idea that the most rewarding paths are often the ones not initially envisioned, encouraging professionals to embrace detours as avenues for discovery and growth.

Secondly, the experience with Mozilla highlights the necessity of learning from stumbles without getting mired in setbacks. The ethos of "embrace the bumps as learning experiences" serves as a powerful reminder that setbacks are not terminations, but rather inflection points for reflection, adaptation, and iteration. My time at Mozilla/Firefox was probably my most challenging as an executive but I learned so much because nothing was easy. This mindset fosters resilience and a proactive approach to navigating the inherent uncertainties of the business landscape.

Lastly, the creation of Varick Media Management illuminates the lesson that "knowledge is power, but connections are your support system." The success of this venture, propelled by the collective efforts and support of collaborators like Barry Lowenthal, Joe Zawadzki, Nat Turner, and others, underscores the critical role of building genuine relationships beyond mere networking. This narrative champions the concept that while data and knowledge are indispensable, the human element—fostered through meaningful connections—forms the bedrock of enduring success and innovation.

These lessons, distilled from a variety of experiences around Silicon Alley, offer insights for navigating the complex terrain of business and entrepreneurship. They underscore the importance of adaptability, resilience, and the power of connections—principles that resonate deeply with those at any stage of their professional journey.

Per some comments I got in email from OP #247, I figured I’d go a bit deeper.  Y’all asked.  I hope the above answered and resonated.

AI Doing the Work of 700 Employees

The news cycle certainly paid attention to Klarna when it said that it’s AI chatbots were doing the work of roughly 700 employees. And they adjusted their staff because of it.

Welcome to the new reality. Assuming AI continues to do what we all expect, we should see similar headlines over the next few years as more companies test and go into full production.

How do I feel about this? Excited. The naysayers are concerned about employees that may be affected. That’s like saying in 1995, the Internet was going to shut down the postal service, the libraries, and such. Yes, the encyclopedia was demolished, but it did not adapt with the times.

I’m excited to see organizations leverage their data in value accretive ways. I would be “long” knowledge bots. I would short companies with non-existent data strategies.

We are entering a period where those with readily accessible data across the organization are going to have a leg up. Maybe not even a leg up - maybe the only way to survive.

So what you are doing about your data strategy?

I've done extensive reading this week and I hope you'll enjoy the following links that I've curated. If you come across an article that you believe would be a great addition to future OP letters, don't hesitate to share it with me. However, please note that I retain the discretion to decide on the content that goes into each OP letter.

The Rise and Fall of Giants (Rishad Tobaccowala)

What did you think of today's OP letter?

Login or Subscribe to participate in polls.