Ubiquitous computing

I had the privilege of participating on a panel about ubiquitous computing at the 2009 Kellogg Private Equity and Venture Capital Conference yesterday. Other panelists were Tim Chang from Norwest Venture Partners, and Enrique Godreau from Voyager Capital. Participating on a panel with such august speakers is thrilling, but they set a rather high bar! Enrique’s background in ubicom dates back to Xerox PARC when Mark Weiser first articulated the term (around 1988). Tim Chang also has a long experience with ubicom.

Enrique spoke first, giving a flawlessly articulated explanation of the roots of ubicom and how it impacts our daily lives. Tim (in his usual thoughtful manner), put ubicom into perspective, threading it into his investment theses. Tough acts to follow!

Regardless, I had a great time on the panel. Tim and I had a funny back-and forth about how we approach deals during pitches. I said that I think of Maslowe’s Hierarchy of Needs when I learn about new companies. In my opinion, companies that solve higher level problems (belonging, esteem, self-actualization) create more value creation potential (from an investor’s standpoint). Meanwhile, companies that solve more basic challenges are commodities with lower margins. Even when the economic buyer of a good is a corporation, the decision makers are humans with needs to belong, etc.

Tim explained that he thinks of the Seven Deadly Sins, instead. If a product doesn’t appeal to lust, gluttony, greed, sloth, wrath, envy, or pride… it probably won’t resonate in the market. It’s sort of the dark side of my Maslowe approach, but I like it. I told him I was going to steal his idea. He, being the great guy that he is, just smiled and said okay.

In any case, here is my quick summary of the panel’s thoughts about ubiquitous computing:

• Ubiquitous computing is about computers accommodating people, allowing us to use computing devices on our own terms
• Many people are not even aware of the ubiquity of computing devices, or their pace of advancement in our lives
• The lack of human friendly interfaces and form factors is a limiting factor… but present great opportunities for growth