The Psychological Reason Why Being Open To Failure Often Leads To Success

Scott Galloway, professor of marketing at the NYU Stern School of Business and the author of “The Four: The Hidden DNA of Amazon, Apple, Facebook, and Google,” shows how some of the biggest successes in tech have also had major public failures. He explains why failure is an important aspect of success. Following is a transcript of the video.

Scott Galloway: So there’s a famous chart that shows — it says, what people think success is and it has a straight upward line and then what success really is, and it’s a jagged, multi-art adventure. And that is accurate.

Scott Galloway, professor of marketing NYU Stern and the author of “The Four: The Hidden DNA of Amazon, Apple, Facebook, and Google.”

If you are not in your own professional life and your professional career kind of wiping out and getting beaned in the face every once in a while, you aren’t trying hard enough. And these companies are great at failure.

They’re fantastic at taking big risk. Putting metrics on them and just as importantly pulling the plug and performing infanticide on projects that aren’t working and then moving on to the next thing. Whether it was auctions or the phone with Amazon or Facebook and some of their targeting, all of these companies have had huge missteps, but it just doesn’t matter because they on average win.

They have a great batting average. And as Jeff Bezos said, they’ll take a risk, a one-in-10 risk if they think it can pay off 100 times.

That isn’t the way traditional companies think. Old-economy companies typically won’t green-light anything unless it has more than a 50% chance of winning, and then even worse than that, after it’s launched, and it’s become the pet project of people at the top, everyone else enters into consensual hallucination with the CEO that this thing is working and sometimes let this kind of gross, ugly child live longer than it should.

So, one, these companies are more disciplined about taking more risk, but they’re also more disciplined about pulling the plug on these things.

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Scott Galloway Says Amazon, Apple, Facebook, And Google should be broken up

At Business Insider’s IGNITION conference, Scott Galloway gave a blistering presentation on why “The Big Four” — Amazon, Apple, Facebook, and Google — should be broken up. Galloway is a professor of marketing at the NYU Stern School of Business and the author of “The Four: The Hidden DNA of Amazon, Apple, Facebook, and Google.”

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Business Insider is the fastest growing business news site in the US. Our mission: to tell you all you need to know about the big world around you. The BI Video team focuses on technology, strategy and science with an emphasis on unique storytelling and data that appeals to the next generation of leaders – the digital generation.

Why Retail Businesses Should Hire Humans, Not Robots

Scott Galloway, professor of marketing at NYU Stern School of Business and the author of “The Four: The Hidden DNA of Amazon, Apple, Facebook and Google” says that employing a huge fleet of robots does not always benefit a business’ bottom line. Human employees offer an advantage for retail businesses even during a time when tech companies are increasingly pushing robots as replacements. Following is a transcript of the video.

Scott Galloway: To give you a sense of just how powerful Amazon is, when Amazon opened one store, Amazon Go — whose key feature was that it used artificial intelligence to get rid of cashiers.

Effectively, you heard this giant scream across the US labor force where of the 11 million cashiers in the US — that’s more than primary teachers in terms of actual numbers — about 3 of those 11 million probably lost their job. They just don’t know it yet.

And in every retail boardroom, we’re talking about store optimization which is Latin for “fire people.” I believe however the opportunity in retail is to invest in not artificial intelligence but organic intelligence.

People no longer go to stores for products. So the winners in retail, The Home Deports, the Best Buys, the Sephoras are investing in their “Blue Shirts,” their “Golden Aprons,” and their “Cast.”

Because if you are going into a store, you want someone there. You want the most impressive supercomputer in the history of the world. And that is an individual who is well-trained.

So while tech is zigging, there’s an opportunity for retail to zag. Starbucks is the original gangster here, spending more money on benefits than they do on coffee.

When you go into a Starbucks you feel better about the experience because the person behind the counter, the barista, actually seems to be enjoying their job, or feel as if they are getting paid well and learning something.

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Business Insider is the fastest growing business news site in the US. Our mission: to tell you all you need to know about the big world around you. The BI Video team focuses on technology, strategy and science with an emphasis on unique storytelling and data that appeals to the next generation of leaders – the digital generation.

Scott Galloway Predicts Who Amazon Should Acquire Next

Amazon purchased Whole Foods a little less than four months ago. Whole Foods products are already appearing on Amazon, and Alexa devices have made it to the shelves of Whole Foods.

With this just the latest in a long list of companies Amazon has acquired, we were wondering who would be next. To answer that question we brought in Scott Galloway, a professor of marketing at NYU Stern School of Business and the author of the new book, “The Four: The Hidden DNA of Amazon, Apple, Facebook, and Google.” The following is a transcript of the video.

Scott Galloway: Next acquisition for Amazon would be Nordstrom. I think the most logical, or strategically rational, acquisition for Amazon would be Nordstrom.

Amazon now has a license to get into the wealthiest refrigerators in the nation. And they are targeting the wealthy with their acquisition of Whole Foods, but they still don’t have license or permission to get into our closets because the aspirational beauty and fashion brands don’t want to distribute through Amazon; however, buying Nordstrom would get them those relationships overnight.

Nordstrom is an exceptionally well-run company. They’re in Seattle. This thing just fits kind of hand-and-glove; however, there’s an X factor here. And the X factor is that Nordstrom is family controlled, meaning the decisions are made around the Thanksgiving dinner table as opposed to its shareholder meeting. So we’ll see.

But likely the acquisitions that’ll take place will be little unknown companies that help fill out, or fill in, some holes in their fulfillment network. But you can also see the company going after some niche cable networks, maybe an AMC or a Scripps, as they realize original content creates intensity across those 60% of US households that are now Prime members by going in and picking up some cable broadcast companies.

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Business Insider is the fastest growing business news site in the US. Our mission: to tell you all you need to know about the big world around you. The BI Video team focuses on technology, strategy and science with an emphasis on unique storytelling and data that appeals to the next generation of leaders – the digital generation.