Without revenue earnings, how they can meet the expenses. In most of the startup companies, retaining employees for a long time is very difficult and in such cases, fresher’s or peoples with lesser experiences are the only solutions. In practical, most of the startup companies are run by experienced peoples with fresher.
I agree. The previous comment is pretty naive. We're in a society where everything is run by chips and software. I would hope that 'code-writers' would be juggernauts.
"I am really, really worried that the industry is approaching another bubble where novelty companies that don't make anything except lines of code are worth billions of dollars"
I believe that bubbles can be born only from economic systems that they do not produce anything. To produce lines of code you spent a lot of time, even the lines of code it is not a tangible product it is a product that a lot of people have worked for it.
I will reverse your question about where is Myspace? now and ask where is Microsoft now?
I am really, really worried that the industry is approaching another bubble where novelty companies that don't make anything except lines of code are worth billions of dollars.
Barbara,
Although these companies don't make anything except lines of code, but they do have revenue model. Companies like LiknedIn generates its revenues from user subscrition. Companies like FB/Google generates its revenue from advertisments, so do u still think situation is alarming ?
Thanks for your feedback readers! I have to modify my comment about lines of code--I recognize that's what many software companies do and there is clearly a lot of value in Microsoft's products. The problem with the first dotcom boom was the "me-too" companies with just a slight twist on a business model. In our market, it was component auction sites; information aggregators; commodity traders and hundreds of sourcing solutions. Here's what happened: we found buyers didn't really want to change their model as radically as many thought. It is only now the Internet has become a valid tool for electroncis purchasing, and even now it is being adopted very carefully and deliberately.
Since the internet era , there has been a slew of products which are not the products in the traditional sense. In many of these products there is no hardware. It is just a few lines of code implementing an idea. Those lines of code create a whole new virtual world such as those social networking sites.
Like the dotcom bubble such bubbles are also likely to burst.
But so what? There are so many real products that fail to capture the market and the companies launching them end up in millions worth of dead inventories.
In the soft-products ( the so called Vapourware) at least there is no risk of locking millions in the dead inventories.
I have this experience - The company I worked for launched an innovative TV that failed to get the required sales for the company. By the time the product was withdrwan from the market the company had acumulated dead stock of finished goods, components, assembly lines and test equipment that took years to salvage.
Pure speculation on my part, but this seems like a potential self-made bubble. Companies hire talent to develop social media. Companies employees are encouraged to use and spread the social media they create. Social media use increases. Company productivity decreases, force resource action.
Let's see....$7 billion divided by 140 characters....comes out to $50 million per character. Does seem a little overvalued! Some of the perks you mention in the article don't seem that far out, and others seem really over the top. One hopes these companies know what they are doing.
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Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
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Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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