I think the amount of time things take to develop certainly can be a source of competitive advantage. Glaser: I think both of those points connect up with my commercial experiences. Pay close attention to the media consumption information you gathered for your target profile. But similar to potential team members, you can look for a production partner with one particular skill who may simply have a passion for the other. How sensitive are you to the set of developments that are going on, simultaneously, that allow for a particular manifestation of the market? But then you have the advantage that, if you are a little bit early to a market, you can get in the feedback loop from some early customers and not die on the vine. Ideas are not as scarce a resource, both financially and from the human-capital perspective, as the ability to execute. Most big firms don't come up with the big inventions. Really, the big challenge is the execution and building of that market, which involves a whole range of players and disciplines including trade associations, accounting, and legal, as well as educating the press and academics, and building human capital — all of those things. The bias toward innovation coming from small companies has to do with the fact that the creative spark to try to figure out how to make the idea bootstrap is not something where the massive scale of the large companies necessarily helps. There's personal value and satisfaction in that — understanding, at the same time, the objective reality that a lot of these ventures fail. While they are related, they aredifferent. In the case of interest rate futures, I was on the rubber-chicken dinner circuit with savings and loans and industry groups across the country. So for a given enterprise, the fuse for how long it is between the time that you start investing serious money in the idea and the time that the idea has to demonstrate significant signs of working so you can raise additional capital, if more is needed, or gain profitability, if you've gotten to that point, is about a three- to five-year fuse per enterprise. I think of globalization. It's just one of many episodes in a life. The role of the bootstrap strategy, I think, is extremely important, because you need something that shows enough of a spark that you can get other people interested in participating — be it the other people that are necessary to fund the venture to the next scale or be it the customers that are necessary to create the economics associated with the development of the new market. No system is prepared for a product that crosses multiple categories; for example, a wardrobe is normally split by "day or night" and "work or casual." Research the competition. A part of the vision was seeing that there was an opportunity that looked to me like it was just over one or two hills, as opposed to five thousand miles away. There's lots of case studies in industrial organization which suggest that they buy rather than invent internally. People who understand one side of the business and are comfortable taking an educated leap of faith on the other. Create New Channels to Find Your Customer. So I was always interested in media, as well as having an interest in economics and also having a technical interest in computer science. As Professor Mutki noted, “clear categorical identities are essential to valuation because they allow actors to determine valid comparables, which are central to determining criteria of evaluation.” Essentially, without a proxy already on the market, it's your role to educate customers on the value and placement of your product. To sell products online, you need to elicit an emotional response from your customers. Glaser: Although I think that is true in general terms, the classic saying that big companies can't invent and only the small companies can sort of ignores the fact that small companies are subject to a kind of Darwinian efficiency. You need to gather information about your market, such as its size, growth, social trends and demographics (population statistics such as age, gender and family type). Can … You create a good business if it turns out that the characteristics of the market that actually develops are favorable. But if it turns out that the market is a lousy market, you can end up having launched a revolution but being a catalytic element sitting at the bottom of the glass, rather than a participant in that market. The company looks for new buyers to pitch the product to a different segment of consumers in an effort to increase sales. It's a challenge, but exciting to pave a new path. The mother of the complex came secondarily. In our industry, famously, YouTube sold out to Google for a very, very large amount of money, which I think was the right call for them, given the litigation risks that they faced in that business and the large amount of money that Google was willing to throw at them, because Google has such a rich — whether it's frothy or not, we'll see in the fullness of time — but a very rich valuation. Podolny: Bob just alluded to the importance of theory in laying the foundation for his vision. Like us, you might be knocked down time and time again by these challenges. So we knew, going into it, that we were taking a long-term strategy that required putting together a lot of pieces. Every manufacturer has a sweet spot: the cross section of their background, passion and experience. The creation of the idea is only the first step. They're poorly executed. If I look at what we've done in creating the jukebox in the sky, we have a business that's about a $150 million business. 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