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This is not what disruption looks like. This is what happens when you have someone with no domain expertise, but a great idea. We're seeing the same thing happe
by josh_carterPDX 10y ago
This is not what disruption looks like. This is what happens when you have someone with no domain expertise, but a great idea. We're seeing the same thing happening with Zenefits. Founders with no domain experience need to look at how they're going to enter a market full of incumbents. These incumbent businesses have survived for years because they know how to play the game. They have people in their employ that know how to lobby the right regulatory bodies. Theranos had none of this. So when all of this started coming down, they should have hired the most well-known and respected person in their field to bridge the gap between the past and future. Without that, they are outsiders playing in a game that has been around forever. They were set up for failure before they even began and no one was smart enough to ask "How will they disrupt an industry that has been around for decades?" Just saying, "We're going to make medical tests cheaper and more accessible" was clearly not the right answer.
- MaxfordAndSons 10y ago> They have people in their employ that know how to lobby the right regulatory bodies. Theranos had none of this. No, I think they had plenty of that, look at the makeup of their board. Maybe not exactly from lab testing background, but plenty members with heaps of biotech, pharma, legal and government experience. What they were lacking was a workable product to lobby for. Which I guess is a silver lining to this - that even a $9 billion lobbying effort can't overcome straightup fraud, at least in the biotech sphere. Finance, on the other hand...
- pbreit 10y agoDisagree. Elon Musk had no domain experience in payments, cars and rockets. Fresh eyes can be invaluable. And it's not that hard to avoid "pulling a Theranos". Theranos should not be an excuse to discount lack of domain experience.
- josh_carterPDX 10y agoLightening doesn't often strike twice. One success out of many doesn't mean people shouldn't do their homework. Entering the car market is not the same as entering the world of medicine where the results from a test Theranos conducts could result in endangering a life. Elon Musk surrounded himself with domain experts. Case in point, http://www.theverge.com/2016/5/13/11674590/tesla-vehicle-production-executive-peter-hochholdinger http://www.theverge.com/2016/5/13/11674590/tesla-vehicle-pro...
- adventured 10y ago> could result in endangering a life So Tesla's autonomous driving technology couldn't endanger a life? The fact is, driving an automobile is the most dangerous thing a person does on a daily basis (outside of simply being alive). Given the number of safety recalls we're witnessing in the automobile industry right now, the number of deaths that occur every year from automobile wrecks, and given how inherently dangerous it is to manually drive a 3,000+ pound piece of metal down the road at 70 mph, I'd say your premise is very off base.
- vkou 10y agoTesla's non-autonomous driving technology can also endanger lives.
- ykl 10y agoThe key difference though, is Elon Musk brought in people that did have domain expertise to fill in the gaps. The overall vision is Elon Musk's, but he was smart enough to bring in industry veterans to help execute on that vision. Theranos, on the other hand, appeared to not have done that. Or at least not on a scale necessary to succeed, especially in something like healthcare.
- ghshephard 10y agoIs there any evidence that Theranos didn't bring in the best people in the industry? They certainly had the money (and stature) to do so.
- ykl 10y agoYes. Up until a few weeks ago, Theranos's board consisted of mostly ex-Pentagon and ex-Senators and such types [0]. Theranos did not have a medical advisory board until about a month ago, apparently. Contrast with Elon Musk and SpaceX. One of Musk's first hires/co-founders for SpaceX was Tom Mueller, who at the time was already widely regarded as one of the best rocket engine designers in the world [1]. [0] https://en.wikipedia.org/wiki/Theranos#Governance https://en.wikipedia.org/wiki/Theranos#Governance [1] https://en.wikipedia.org/wiki/Tom_Mueller https://en.wikipedia.org/wiki/Tom_Mueller
- kosmic_k 10y agoBut I think it's very important to note that Elon surrounds himself with the very best domain experts he can find. He also has a reputation of deeply engrossing himself in a topic to learn as much as he can. While he may not be a domain expert when we starts, I believe he does eventually becomes one. Theranos shouldn't be an excuse to discount domain experience because fundamentally the impeding failure of Theranos isn't due to lack of domain knowledge. It was pushing their product before it was ready and misleading doctors and the public as to the accuracy of that product. Elon would be "pulling a Theranos" if he obscured failed launches and solicited launches without being transparent on SpaceX's capabilities. I think its also worth to keeping in mind that SpaceX nearly went bankrupt in the process. I wouldn't be entirely surprised if the rational behind Theranos's actions were caused by financial pressure. But that's just my speculation.
- engizeer 10y ago> We're seeing the same thing happening with Zenefits Sorry to contradict, but that's plain wrong. Both the founders of Zenefits - Parker and Laks, know more about the insurance industry than your average broker. It was Parker's frustration with the amount of insurance paper work he had to deal with at his prior company, that led him to actually start Zenefits so that the pain can be eased for others.
- eitally 10y agoBut he didn't know anything about being a broker, selling insurance, or that industry in general. He used tech and savvy to disrupt, but he disrupted the ways established players never would have because he was so ignorant and headstrong.
- lawnchair_larry 10y agoTheranos didn't have a great idea. They had a great fantasy.