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Birthplace Of Silicon Valley – The HP Garage

Birthplace Of Silicon Valley - Hewlett Packard

With only $538 as investment in 1938, a time when the long fingers of the Great Depression still stuck the nation by its financial gullet, two aspiring entrepreneurs named Bill Hewlett and David Packard used a one-car garage as a part-time workshop in Palo Alto, California, to birth a company intended to become a world leader in engineering measurement and computer technology. From such unpretentious beginnings, the two Stanford University alumnae and close friends molded an organization that for half a century would outpace its competitors through groundbreaking products, progressive employee policies, and an enduring commitment to quality and customer satisfaction.

In 1938, Dave Packard left his job at General Electric in New York and returned to Palo Alto while Hewlett looked for a place to set up shop. Hewitt found a great place in suburbs, with the 12×18 foot garage the main selling point of the property on Addison Avenue. The home had a three-room, ground floor flat for Packard and his wife Lucille, while Hewlett got the shed out back. The rent was $45 per month.

In 1989, during the 50th anniversary of the recognized Hewlett-Packard corporation, the State of California termed the one-car garage first used as a workspace by Bill Hewlett and David Packard in Palo Alto as the “birthplace of Silicon Valley.” This historic landmark also represents the beginning of innovation, chance taking, and common sense policies in a company that would bourgeon as few have before or since.

367 Addison Avenue in Palo Alto - Hewlett Packard.jpg

367 Addison Avenue in Palo Alto, California, is the house and one-car garage—dubbed the “birthplace of Silicon Valley”—where William (Bill) Hewlett and David Packard began making their first product in 1939. Mr. Packard died in 1996, Mr. Hewlett in 2001. HP bought the property in 2000, 13 years after the garage was designated California Registered Landmark No. 976.


This garage is the birthplace of the world’s first high-technology region, “Silicon Valley.” The idea for such a region originated with Dr. Frederick Terman, a Stanford University professor who encouraged his students to start up their own electronics companies in the area instead of joining established firms in the East. The first two students to follow his advice were William R. Hewlett and David Packard, who in 1938 began developing their first product, an audio oscillator, in this garage.

California Registered Historical Landmark No. 976

California Registered Historical Landmark No. 976 - Birthplace Of Silicon Valley

Plaque placed by the State Department of Parks and Recreation in cooperation with Hewlett-Packard Company, May 19, 1989.

The Hewlett-Packard House and Garage is also National Register Listing 07000307.

Although the garage has become Silicon Valley legend, Hewlett and Packard only stayed at the garage a mere 18 months. The company was officially founded in 1939, with HP outgrowing the garage by 1940. The company moved to a larger property nearby on Page Mill Road. The garage was bestowed the honour of the birthplace of Silicon Valley in 1989, with HP buying the property in 2000.

Posted in Business and Strategy Travels and Journeys

Remembering Silicon Valley ‘Coach’ Bill Campbell

Remembering Silicon Valley 'Coach' Bill Campbell Bill Campbell, better known merely as “Coach,” was a renowned mentor of Silicon Valley executives and venture capitalists. He advised and coached some of tech’s biggest names, comprising Google’s Eric Schmidt, Apple’s Steve Jobs, and Amazon’s Jeff Bezos.

The cluster is a geographically proximate group of interrelated companies and associated institutions in a particular field, linked by cohesions and complementarities. The cluster model converges upon the circumstances that support firm competitiveness at the national scale. It is an economic development model that stimulates collaboration among institutions to accelerate the exchange of information and technology. A venture capital firm in structuring a fund aims to limit the obligation of investors to the amount of their investment and circumvent a double charge of taxation (once when returns on investments are realized by the fund and a second time when the investors receive the proceeds of their investment from the fund). The most important customers for these new technologies may be beyond US borders, however, where breaks for a solid education are hard to come by and a Western credential carries a lot of weight. Changes and adaptations have become customs and are embedded in the social norms of the Valley. But it so far cannot escape from its contract manufacturing past. It does not have the profundity of competences and capabilities, nor does it have the scale to take advantage of a more networked-oriented internet-driven economy. Entrepreneurial financing is an important mechanism to engender economic advantages. In particular, the science and technology incubators play a vital role in supporting entrepreneurship and economic growth. To date, few studies have looked meticulously at the strategies and policies that are crucial for creating an empowering environment for high-tech start-ups.

Bill Campbell did not describe himself as a workaholic, although as president of Claris he did acknowledge to working 16-hour days, having nightly business dinners, touring frequently and working weekends. After four years as head of Apple Computer’s sales and marketing effort, Campbell was connected more with hardware than software. Apple and Google shared personal ties, with Apple board members Bill Campbell and Al Gore, the former U.S. vice president, serving as advisers to Google in its formative days.

John Doerr, chair of venture capital firm Kleiner Perkins, called him “our SuperCoach — colorful confidante and mentor for leaders and whole teams.” Doerr brought Campbell to Google to serve as an informal adviser to founders Larry Page and Sergey Brin. Campbell was influential in the hiring of Eric Schmidt to be Google’s chief executive in August 2001. Google’s executive chairman Eric Schmidt recalled in Forbes magazine that Campbell’s supreme gift was knowing how to goad and inspire people.

It’s hard to know what Google would have been like without him. He was present at every decision of consequence. He understood the people. He would normally say very little during my staff meetings and just observe. And then I and other executives would individually make a trek to his Intuit office in Palo Alto for his feedback. He wasn’t a technical wizard, but he understood how to solve human problems and motivate people. He would have been a good coach in any industry.

Bill Campbell viewed himself as Silicon Valley’s confidant. He was very careful to say, “I’m here to help you. I don’t want anything in return. I don’t want any attention.” If he had had a public persona, it would’ve made him less effective. This was very genuine. Some people want power or fame. He wanted love. He wanted to be appreciated. And he was.

The Silicon Valley culture efficaciously captures the prevailing ideological elements of Silicon Valley, mingling celebration of technology with a attraction with what the museum’s brochures refers to as the gizmos and gadgets produced by Valley companies. An obsession with speed: work late, work long, work fast, work smart, borrow and assimilate technical knowledge at the vanguard that is not already possessed, and enter the market place with an sophisticated solution needed by many with astounding features at a low cost point. A sale is incongruous to harvest a high price if the firm is seen as running out of funds and despairing for a savior. For a firm that cannot draw outside financing, an inside round can afford convenient “backstop financing.”

A Silicon Valley Confidant

Campbell was intensely involved in Silicon Valley’s start-up culture as well. Fortune’s Jennifer Reingold wrote that Campbell was careful not to take credit for his work, even while industry leaders spoke of Campbell “as if he’s some kind of profane cosmic mash-up of Oprah, Yoda and Joe Paterno.” Teams thrive to create synergy to respond to pressures of condensed product-planning life cycles, product competitiveness, and Silicon Valley’s parent companies’ influences. Global competition in the high technology industry is also at work here, where-as Campbell mentioned above–speed, quality, cost, and innovation propel strategy and structure.

Campbell coached the Columbia University football team in the 1970s (albeit with a losing record.) He then served as CEO of Intuit in the mid-1990s, then chairman from 1998 until January-2016, when he became chairman emeritus. Campbell was also chairman of the board of trustees at Columbia University from 2005 until 2014. Previously in his career, he had worked at Kodak and Apple, where he worked as a marketing executive. He was an Apple director from 1997 until 2014. His association with Apple dates back to 1983, when he enrolled the company as vice president of marketing. In 1983, Campbell took a chance by taking a job at Apple under John Sculley and Steve Jobs. Campbell left a position at Kodak, which was a $14 billion company at the time, for Apple, which was around $90 million then. Apple’s CEO Tim Cook said, “when Bill joined Apple’s board, the company was on the brink of collapse. He not only helped Apple survive, but he’s led us to a level of success that was simply unimaginable back in 1997.”

The anonymities of the trade become no secrecies; but are as it were in the air, and children learn many of them instinctively. In Silicon Valley, good work is rightly cherished; inventions and improvements in machinery, in processes and the general organization of the business have their qualities promptly discussed: if one man starts a new idea, it is taken up by others and combined with suggestions of their own; and thus it becomes the source of further new ideas. According to Campbell, the Silicon Valley’s determination for reliability was the catalyst behind the development of the planar process, and then of the integrated circuit. He confounded things by noting that the high tech industry’s drive to clutch its producers’ profits served to direct both Silicon Valley semiconductor and tube companies to look for saleable markets.

Posted in Business and Strategy Management and Leadership

The Rise and Fall of Theranos

The Rise and Fall of Theranos

Elizabeth Holmes, CEO of Theranos Two years ago, the blood-testing startup Theranos was one of the hottest assets in Silicon Valley. Valued at $9 billion, it guaranteed nothing short of a paradigm shift in medicine with its groundbreaking, needle-free test process. CEO Elizabeth Holmes, a 32-year-old Stanford dropout, was effusively profiled in the business press as the world’s youngest self-made female billionaire. But now, the company is fighting for its survival, in the midst of claims that its tests are “at best, fundamentally flawed and, at worst, unsafe.” The disturbance began six months ago, when The Wall Street Journal reported that the company’s breakthrough technology, which could reasonably run hundreds of tests with blood from a finger prick, couldn’t really deliver. Not long after, the Centers for Medicare & Medicaid Services, which regulates lab testing, said that Theranos put patients’ lives at risk with faulty tests at its California lab. The latest blow: The Justice Department and the Securities and Exchange Commission (SEC) lately began independent criminal investigations into whether Theranos deceived investors about its technology.

Nothing is proven yet. It’s very unusual for the SEC to investigate a privately held company like Theranos, but it could begin to happen more often. SEC Chair Mary Jo White wants to give more enquiry to the growing number of so-called unicorn startups, which are valued at more than $1 billion, “because they pose a high risk to investors.” The company’s fate is now in the hands of its charismatic founder—as the company’s leader, chairwoman, and majority stakeholder, Holmes can command what she wants done at her company. It’s a common procedure in Silicon Valley’s startup philosophy, where boards have “little real power.” Many venture capitalists are willing to take the risk, hoping to get in with the next Mark Zuckerberg, but “if trouble brews,” the cult encircling a founder can become a obligation. That’s largely because there is no such thing as investigative journalism in Silicon Valley. Journalism here is largely confused with, and deliberately conflated with, public relations, but they’re not the same thing.

So far, Theranos has never been able to establish its testing technology really works. Rather than publishing research in peer-reviewed journals, or letting its blood-testing machines to be assessed by external experts, the company has continually kept its methods cloaked in secrecy. Theranos has reasoned that it was guarding trade secrets, but testing openness is customary routine in the medical industry. Even drug companies, which function in a exceedingly aggressive segment, issue adequate results of their drug trials to establish that a medicine actually works, whilst even keeping sufficient details secret to make their product proprietary. Blood testing is a $73-billion-a-year commerce set for disruption—as any person who’s had blood drawn can confirm, it’s laborious, uncomfortable, and pricey.

Theranos is under investigation for fraud, which is weird for a private company. Theranos is performing tests on patients without having published peer reviewed research—a cardinal sin in science—and with minimal federal oversight. Theranos should have attracted scrutiny long before it did.

Posted in Business and Strategy Leaders and Innovators