The New New Thing

A Silicon Valley Story

The New New Thing is the story of the object-oriented visionary Jim Clark, founder of three separate billion-dollar companies: Silicon Graphics, Netscape, and Healtheon, and how in the late 1990s he pushed the technological frontier-and, incidentally, got richer than anyone else in history-in pursuit of "the new new thing."

Author:

Michael Lewis

Published Year:

1999-10-01

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The New New Thing
Michael Lewis
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Key Takeaways: The New New Thing

Jim Clark's Unquenchable Ambition

"First, let's look at Clark's insatiable ambition."

"First, let's look at Clark's insatiable ambition." This drive is exemplified in the story of Hyperion's mast. Originally, it was the world's tallest. But then, Clark heard about *another*, taller mast. What did he do? He considered adding an extension to his *already* record-breaking mast, just to be on top.

Jim Clark's relentless pursuit of "the new new thing" led him to constantly push boundaries, even beyond reason. This is evident in his decision to consider extending Hyperion's mast, just to maintain its status as the tallest, despite the already enormous undertaking.

This ambition, while a driving force behind his successes at Silicon Graphics, Netscape, and with "The New New Thing", also created challenges. The constant desire for "more" sometimes overshadowed practical considerations, as seen in the Hyperion project.

The book "The New New Thing" highlights how this relentless ambition, though a key to Clark's success, could also lead to conflicts and impractical decisions, a recurring theme throughout the narrative.

Vision vs. Practicality

"Now, this is crucial: Clark's ambition often clashed with the practical realities of, well, reality."

"Now, this is crucial: Clark's ambition often clashed with the practical realities of, well, reality." He envisioned a yacht completely controlled by computers, a floating embodiment of the future. But the programmers, these young guys from Silicon Valley, were often more interested in the "cool" factor than the actual usability.

The desire to create a fully computerized yacht, as detailed in "The New New Thing", led to numerous technical difficulties and highlighted the disconnect between Clark's vision and the practical limitations of the technology at the time.

The programmers' focus on aesthetics over functionality, exemplified by the 3D screen debate while the boat faced issues, illustrates the challenges of prioritizing innovation over practicality in "The New New Thing".

The possessed kitchen table incident on the Hyperion, a key anecdote in "The New New Thing", serves as a metaphor for the larger issue of technology failing to meet real-world needs due to this misplaced focus.

The Clash of Cultures: Old World vs. Silicon Valley

"Let's pause here and consider the cultural clash."

"Let's pause here and consider the cultural clash." You have these seasoned Dutch boatbuilders, generations of craftsmen, working alongside these young, code-obsessed programmers. It's like oil and water.

The juxtaposition of traditional shipbuilding expertise, represented by Wolter Huisman, and the Silicon Valley tech culture of the programmers created a significant cultural clash, a core theme explored in "The New New Thing".

Huisman's quote, "When Yim wants something, Yim gets it," encapsulates the tension between Clark's demanding nature and the established practices of the boatbuilders in "The New New Thing".

The book "The New New Thing" emphasizes that this clash wasn't just about technology, but about fundamentally different approaches to problem-solving and differing values between the two groups.

Bridging this cultural divide required constant communication and finding common ground, a lesson highlighted by Michael Lewis in "The New New Thing", applicable to various collaborative endeavors.

A Microcosm of the Tech World

"Here's why this matters: This isn't just a story about a boat. It's a microcosm of the larger tech world."

"Here's why this matters: This isn't just a story about a boat. It's a microcosm of the larger tech world." It's about the tension between visionaries and engineers, between dreamers and doers.

The Hyperion's story, as told in "The New New Thing", serves as an allegory for the broader dynamics of the technology industry, highlighting the inherent tensions between those who envision the future and those who build it.

The main halyard breaking incident in "The New New Thing" forced collaboration between the disparate groups, demonstrating the importance of teamwork in overcoming unforeseen challenges in any innovative project.

Clark's admission of the fragility of complex systems, even his own creation, underscores a crucial lesson about the inherent risks and uncertainties in pushing technological boundaries, a point emphasized in "The New New Thing".

Challenging the 'Organization Man'

"The book also subtly critiques the 'Organization Man' mentality."

"The book also subtly critiques the 'Organization Man' mentality." This ideal valued conformity and well-roundedness above all else. But Clark, like many innovators, was anything *but* well-rounded. He was obsessive, driven, and often difficult. He was a rebel.

"The New New Thing" implicitly argues that true innovation often stems from individuals who defy conventional norms and embrace their unique, often unbalanced, strengths, as exemplified by Jim Clark.

Clark's character in "The New New Thing" challenges the traditional notion of the ideal worker, suggesting that disruptive innovation often requires a departure from the established order.

The narrative of "The New New Thing" suggests that embracing individuality and challenging the status quo, as Clark did, can be crucial for driving significant advancements, even if it leads to friction.

Understanding Motivation and Collaboration

"Now, let's talk about practical application."

"Now, let's talk about practical application." One of the key takeaways is the importance of understanding your own motivations. Are you driven by a genuine desire to create something meaningful, or are you chasing the "new new thing" for the sake of it?

"The New New Thing" encourages readers to reflect on their own ambitions and to critically examine whether they are pursuing goals for intrinsic value or external validation.

The book "The New New Thing" emphasizes the importance of collaboration, particularly when working with individuals who hold vastly different perspectives and skill sets.

By analyzing Clark's journey in "The New New Thing", readers can gain insights into navigating the complexities of teamwork and leveraging diverse viewpoints to achieve shared objectives.

The Human Side of Innovation

"What surprised me most about this book was the vulnerability of even the most successful innovators."

"What surprised me most about this book was the vulnerability of even the most successful innovators." Clark, despite his wealth and achievements, is constantly grappling with doubt and uncertainty. He's not a superhero; he's a human being, flawed and fascinating.

"The New New Thing" humanizes the tech world by revealing the personal struggles and insecurities of even its most prominent figures, like Jim Clark.

The book "The New New Thing" moves beyond the technical aspects of innovation to explore the emotional and psychological dimensions of creating something new, highlighting the human element behind technological advancements.

This portrayal of vulnerability in "The New New Thing" challenges the perception of tech leaders as infallible, reminding us that innovation is a deeply human endeavor, fraught with challenges and uncertainties.

The Disconnect Between Code and Reality

It's one in the morning, and the engine quits. Again. Robert, one of the engineers, discovers air in the sea chest.

It's one in the morning, and the engine quits. Again. Robert, one of the engineers, discovers air in the sea chest. Clark, naturally, wants an immediate explanation, a quick fix. But Robert, in his quiet, methodical way, points out the limitations of their knowledge. He says, "There are a million lines of code in there, and nowhere in them will you find the word 'boat.'"

Robert's statement in "The New New Thing" highlights a critical disconnect: the complex software controlling the yacht was designed without fully accounting for the physical realities of a sailing vessel.

This scene in "The New New Thing" underscores the importance of grounding technological innovation in a thorough understanding of the real-world context in which it will operate.

The incident serves as a reminder, emphasized in "The New New Thing", that even the most advanced technology is ultimately dependent on the physical world and the expertise of those who understand its intricacies.

The 'Funky' Computer: Casual Attitude vs. High Stakes

And then there's the episode with the wind sensors.

And then there's the episode with the wind sensors. Clark notices that the wind direction on one of the computer screens is wrong. It's showing north when it should be south. Steve, one of the programmers, admits, "This computer is definitely a bit funky." The nonchalant way he says this, in the face of a potentially serious problem, underscores the casual attitude of some of the Silicon Valley crew.

The wind sensor malfunction in "The New New Thing" exemplifies the difference in stakes between software bugs and real-world mechanical failures, particularly at sea.

Steve's response in "The New New Thing" highlights a potential cultural difference between the software development world, where bugs are common, and the maritime world, where precision and reliability are paramount.

This seemingly minor incident in "The New New Thing" foreshadows larger potential problems arising from the disconnect between the virtual and physical realms on the Hyperion.

What the Book About

  • Jim Clark's Relentless Ambition: The founder of Silicon Graphics and Netscape constantly sought the "new new thing," exemplified by his desire to extend Hyperion's already record-breaking mast.
  • Vision vs. Practicality: Clark's grand vision for a computer-controlled yacht, as depicted in "The New New Thing", often clashed with the realities of engineering and usability, leading to issues like the infamous "possessed kitchen table."
  • Cultural Clash: The book "The New New Thing" highlights the tension between experienced Dutch boatbuilders (representing old-world craftsmanship) and young Silicon Valley programmers (focused on innovation).
  • Shared Crisis and Collaboration: Moments of crisis, like the broken main halyard, forced collaboration and bridged the gap between different perspectives, a key element of the narrative in "The New New Thing".
  • Critique of the "Organization Man": "The New New Thing" implicitly argues that true innovation often comes from "unbalanced" individuals who challenge the status quo, like Jim Clark.
  • Understanding Motivations: The book encourages readers to examine their own drives – are they pursuing genuine creation or chasing fleeting trends? This self-reflection is central to the themes of "The New New Thing".
  • Vulnerability of Innovators: Even successful figures like Clark, as portrayed in "The New New Thing", grapple with doubt and uncertainty, highlighting the human side of technological advancement.
  • The Disconnect Between Code and Reality: The line "There are a million lines of code...and nowhere...will you find the word 'boat'" perfectly encapsulates the challenges of applying abstract software to the physical world, a core concept in "The New New Thing".
  • Contrasting Approaches: The difference between Robert (hands-on engineer) and Steve (software programmer) illustrates the tension between practical and theoretical approaches to problem-solving in "The New New Thing".
  • Power Dynamics: "The New New Thing" explores the dynamic between Clark (the visionary billionaire) and the young programmers, highlighting the tension between demanding leadership and the pursuit of "cool" technology.
  • Messy Innovation: The book "The New New Thing" emphasizes that progress is rarely linear and that innovation is often a messy, unpredictable process.

Who Should Read the Book

  • Entrepreneurs and Innovators: Individuals seeking inspiration from Jim Clark's relentless drive and his founding of multiple groundbreaking companies (Silicon Graphics, Netscape). "The New New Thing" provides a real-world case study.
  • Technology Professionals: Programmers, engineers, and anyone in the tech industry can gain insights into the challenges of bridging the gap between vision and execution, particularly in projects with high ambition and complex systems. The book, "The New New Thing", showcase this.
  • Leaders and Managers: Those in leadership positions can learn about managing diverse teams, balancing innovation with practicality, and understanding the motivations of highly driven individuals. "The New New Thing" offers a look at leadership.
  • Business Students: Individuals studying business, entrepreneurship, or technology management will find "The New New Thing" a compelling narrative of the dot-com boom, the clash of cultures, and the human side of technological advancement.
  • Anyone interested in the human side of technology: Readers who enjoy stories about ambition, innovation, and the challenges of bringing groundbreaking ideas to life, will be captivated by this book. "The New New Thing" is a human story.
  • Fans of Michael Lewis: Readers who appreciate Michael Lewis's engaging writing style and his ability to make complex topics accessible will enjoy this exploration of Jim Clark's journey. "The New New Thing" is another example of his talent.
  • Those Facing a Clash of Cultures: Anyone working in an environment where different work styles, values, or generations clash can find relatable scenarios and potential solutions in "The New New Thing".
  • Individuals Driven by a Vision: People who are highly ambitious and focused on a big, perhaps unconventional, goal can learn from Clark's experiences, both his successes and his struggles, as detailed in "The New New Thing".
  • Anyone Questioning Their Motivations: The book, "The New New Thing", prompts reflection on one's own drive – is it about genuine creation or chasing fleeting trends?

Plot Devices

Characters

FAQ

How does Michael Lewis portray Jim Clark's 'nose for the new new thing' in 'The New New Thing'?

  • Nose for the new new thing: This term refers to Jim Clark's unique ability to identify and capitalize on emerging technological trends, often before they become mainstream.
  • Serial Entrepreneurship: Clark's relentless pursuit of the next big technological breakthrough, even after achieving significant success, is a key aspect of his character.
  • Internet Boom: The rapid pace of technological change and the constant emergence of new opportunities in Silicon Valley during the dot-com boom.

What role did 'startup culture' play in the events described in 'The New New Thing' by Michael Lewis?

  • Startup Culture: The process of creating a new company from scratch, often involving significant risk and uncertainty.
  • IPO Frenzy: The immense wealth that could be created through successful tech ventures during the dot-com era, often through initial public offerings (IPOs).
  • Technological Optimism: The belief that technology could solve almost any problem and fundamentally change the world.

How does 'The New New Thing' by Michael Lewis depict the influence of 'venture capital' on Silicon Valley?

  • Competition: The intense competition among tech companies to develop and market innovative products and services.
  • Venture Capital: The willingness of investors to fund risky ventures in the hope of high returns, fueling the growth of many tech companies.
  • Stock Options: The practice of offering stock options to employees as a form of compensation and incentive, aligning their interests with the company's success.

What was the ultimate goal of 'Healtheon,' as described in Michael Lewis's 'The New New Thing'?

  • Healtheon: Clark's company that aimed to revolutionize healthcare by streamlining administrative processes and connecting patients, doctors, and insurers.
  • Healthcare Industry: The challenges and complexities of navigating the healthcare industry, including regulatory hurdles and resistance to change.
  • Digital Health: The potential for technology to improve efficiency, reduce costs, and enhance patient care in the healthcare sector.

How does Michael Lewis address the concept of 'irrational exuberance' in 'The New New Thing'?

  • Irrational Exuberance: The tendency for investors and the public to overestimate the potential of new technologies, leading to inflated valuations and market bubbles.
  • Dot-com Bubble: The eventual correction of market overvaluation, often resulting in significant losses for investors.
  • Market Correction: The lasting impact of the dot-com boom and bust on the technology industry and the broader economy.

What does 'The New New Thing' by Michael Lewis reveal about Jim Clark's approach to 'team building'?

  • Visionary Entrepreneur: Clark's ability to envision and create groundbreaking companies that disrupt existing industries.
  • Team Building: The importance of assembling a talented and dedicated team to execute a company's vision.
  • Scaling Challenges: The challenges of managing rapid growth and scaling a company quickly.

How does 'risk taking' manifest itself in the narrative of 'The New New Thing' by Michael Lewis?

  • Innovation Pressure: The constant pressure to innovate and stay ahead of the competition in the fast-paced tech industry.
  • Risk Taking: The risks associated with pursuing unproven technologies and business models.
  • High-Stakes Environment: The potential for both massive success and spectacular failure in the world of high-tech entrepreneurship.

In 'The New New Thing,' how does Michael Lewis explore the concept of 'disruptive innovation'?

  • Disruptive Innovation: The culture of pushing boundaries and challenging conventional wisdom that characterized Silicon Valley during the dot-com boom.
  • Transformative Potential: The belief that new technologies could fundamentally alter the way people live, work, and interact.
  • Ethical Dilemmas: The ethical considerations and potential downsides of rapid technological change.

Inspirational Quotes & Insights

The future, as always, belonged to those who built it, even if they didn't quite know what they were building.
The Internet was not just a place to get information or buy things; it was a place to be.
The difference between a venture capitalist and a gambler was mainly that a venture capitalist made his bets with other people's money.
Success was not just about having a great idea; it was about having the right idea at the right time.
The best way to predict the future is to invent it.
The only way to do great work is to love what you do.
Innovation distinguishes between a leader and a follower.
The people who are crazy enough to think they can change the world are the ones who do.

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