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Richard Seltzer
Austin Chronicle
Kim Allen

Michael Lewis

The New New Thing

In 1979 Jim Clark was a 38 year old professor of computer science at Stanford University and was wondering where his life was leading to. In The New New thing describes how he then went on to found not one but three multibillion dollar companies in succession. A university project led to Silicon Graphics. Clark only had a small stake in this, so in the early '90s he founded Netscape, and this was followed by Healtheon. By the end of the book we see him thinking about another business. Clark is at the centre of high-tech innovation in Silicon Valley, just as Silicon Valley is such a centre for the rest of the world, so he's an important figure. It's also a fun book to read, so if you're interested in technology in today's world then you might like to give it a try.

Lewis got permission to follow Clark around for some time, and in particular he went along on trips of Clark's boat 'Hyperion'. I felt that these trips could have been made more of a central thread to the book. As it is we hear of several crises on the boat, but they seem to come from nowhere.

I have sometimes wondered why someone who has made lots of money from one business needs to go back to venture capitalists for the funding of the next. This book gave an answer - venture capitalists don't just bring money, they also bring recognition of the worth of the new business, which is especially vital in attracting the best personnel.

Amazon.com info
Paperback 288 pages  
ISBN: 0140296468
Salesrank: 112216
Weight:0.35 lbs
Published: 2001 Penguin (Non-Classics)
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Amazon.co.uk info
Paperback 256 pages  
ISBN: 0340766999
Salesrank: 276122
Weight:0.75 lbs
Published: 2000 Coronet Books
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Amazon.ca info
Paperback 288 pages  
ISBN: 0140296468
Salesrank: 134234
Weight:0.35 lbs
Published: 2001 Penguin Paperbacks
Amazon price CDN$ 13.51
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Book Description
As American capitalism undergoes a seismic shift, Michael Lewis, author of the bestselling Liar's Poker, sets out on a Silicon Valley safari to find the true representative of the coming economic age. All roads lead to Jim Clark, the man who rewrote the rules of American capitalism as the founder of (so far) three multi-billion dollar companies-Silicon Graphics, Netscape, and Healtheon. Lewis's shrewd, often brilliantly funny, narrative provides ahead-of-the-curve observations about the Internet explosion and how the success of Silicon Valley companies is forcing a reassessment of traditional Wall-Street business models.

Weaving Clark's story together with that of this new business phenomenon, Lewis has drawn us a map of markets and free enterprise in the twenty-first century and blown the lid off the changing economy.
 
Why Good Stories Are Better Than Bad Management Books *****
This book could easily be transposed as an academic study in a scholarly journal or as a "how to" article in one of those business school reviews that cater to the deep anxieties of high-powered executives. The same material that Michael Lewis has collected could be used by an academic to formulate hypotheses, validate theories, and construct models of business behavior. In fact, a growing subset of management science deals with the phenomenon that Lewis describes in his narrative and that is known in the academic literature as serial entrepreneurship.

In this respect, one could very well transform the portrait of Jim Clark into a diagram of the five abilities that a serial entrepreneur needs to cultivate:
- the ability to repeatably recognize a market. Jim Clark is after markets worth billions of dollars, and strives to stay ahead of the curve by identifying business opportunities that Microsoft has not yet seized.
- the ability to repeatably create a product or service. Jim Clark started with a chip that allowed computer to do 3D graphics, then moved on to pioneering the browser business with Netscape, then his attention turned to the healthcare market and then again to personal finance, markets for which he offered innovative business models.
- the ability to repeatably motivate individuals/teams and build an entire organization to follow in his/her pursuit. People joined the bandwagon because Jim Clark offered them the promise to become incredibly rich, but also because his ventures were simply the place to be in the Silicon Valley.
- the ability to delegate and surround themselves with talent that complements their own. Jim Clark is compared to a conceptual artist who comes up with the idea and let the other do all the actual work.
- the ability to reinvent oneself. As the author notes, "other people grew old, he stayed new".

Or the article could list the lessons that one learns from creating more than three successful ventures:
- Don't Draw Business Plans. Jim Clark's notion of a business plan is to identify a trillion dollar-worth market, gather enough bright people and throw them at the problem so that something good will come out of it.
- Don't Fall In Love With The Product. It doesn't really matter what the company is trying to sell, so long as it is identified as an Internet company. When Clark assembled a team of engineers to "fix the US health care system", as the team leader acknowledges, "no one knew a fucking thing about health care".
- Stick To Your Guns. As an observer remarks, this is clearly a bad trait if you stick to your guns when you're clearly wrong, but Jim Clark and his team of bright engineers were "almost always right".
- Leave When the Party Starts. Jim Clark becomes disinterested as soon as his ventures take off the ground, and very soon moves on to the next challenge.
- It's OK to Fail. Jim Clark predicted that the future of information technology laid in interactive TV, then let others face disaster on the basis of his failed diagnosis. The same engineers who spent months designing an unmarketable device could then be drawn into his next venture.
- Never Look Back. "I don't give a shit about the past", says Clark.
- When to Stop. That is precisely the lesson that a serial entrepreneur like Jim Clark never learns.

But of course Michael Lewis' book has very little in common with a business review article. Readers who find management books profoundly boring and uninteresting can still be attracted to this story, which evokes at times Moby Dick or The Great Gatsby. Michael Lewis is to the dot-com era what F. Scott Fitzgerald was to the Jazz Age. As the internet boom has now receded into the past, this book will remain as a monument to the follies and hopes of the internet bubble era.
 
What would you do if you researched a book and didn't find anything? **
I'm a big fan of Michael Lewis. He usually brings characters and situations to life and provides a perspective on a situation that introduces me to a new way of looking at things. That's not the case here.

I get the feeling when Michael Lewis got permission to follow Jim Clark around for several months to write about him he thought he'd hit the mother load of great book material. Here was a guy who had traipsed through the daunting world of technology with a seeming Midas touch. Heck, the man had started Silicon Graphics and Netscape.

As I read the book, however, something strange happened, I started wondering, "When did Michael Lewis realize he was following the most improbably boring man in the world?" Jim Clark should be fascinating; he starts huge companies and turns venture capitalists on their ears, he flies helicopters, rides motorcycles and builds ludicrously complex, large and expensive sailboats. Jim Clark is a man who is never satisfied and always striving for the "New, New Thing." Yet somehow, Jim Clark is also apparently stone cold dull.

In the course of the whole book, not one Jim Clark quote is interesting, entertaining, or insightful. It doesn't seem like Clark won't open up to Lewis, it's more like he's a one-dimensional guy. Lewis writes the book in a way that indicates that he's an author that knows he's got nothing but has invested far too much time in research to try to turn back. The book becomes focused on the attempt to get Clark's newest technology-laden boat ready for an Atlantic crossing; hardly what I'm guessing Lewis set out to write.

The crossing itself turns out to be a non-event and unfortunately the book does to. Don't despair though, read Moneyball or Liar's Poker or Blindside and you'll find that Michael Lewis can, and usually does, deliver the goods in spades.
 
A distorted view of Silicon Valley technology startups ***
"The New New Thing" tells two stories. The first is the story of Jim Clark, a technical entrepreneur who founded three companies -- Silicon Graphics, Netscape, and Healtheon -- that achieved phenomenal heights during the Internet boom of the 1990's. Clark is, to say the least, an interesting character; at least two of Clark's business associates are quoted in the book calling him a "maniac". Clark is driven almost entirely by an unending greed, so for me at least, he quickly became an unsympathetic character around which to hang an entire book. Another criticism I have is that far too many pages of the book are spent on Clark's quest to build and debug Hyperion, the world's largest computer-controlled sailboat. These sections were a distraction from the rest of the narrative. (By the way, it's pretty clear that although they may have been smart, the people writing the software for Hyperion -- including Clark himself -- were all pretty lousy software engineers.)

The second story is that of Silicon Valley, and it doesn't come off looking much better than Clark. Lewis seems to have been granted incredible access to Clark's life, which included the ability to interview and attend meetings with the Valley's top movers and shakers -- the engineers, senior managers, and venture capitalists who fund them. As a computer scientist who has lived and worked in the Valley since 1991, I found this material to be enlightening, and certainly the strongest part of the book. Perhaps most fascinating is the way the decisions of the venture capital (VC) firms and investment banks are based so much on perception rather than sound reasoning. For example, one minute the VCs are writing off their Healtheon investments as a total loss, but the next minute -- when Clark offers to invest $40M of his own money in the failing venture -- they all clamor to invest more in it. Sadly, during the "irrational exuberance" of the late 1990's, this was actually a winning strategy.

One danger in writing a book about the new new thing -- at the height of the Internet bubble no less -- is that it can quickly become old. And this book has not aged well. Yes, Jim Clark was the first person in Silicon Valley to have founded three companies with a market capitalization exceeding $1 billion, and yes, he made himself and many others around him obscenely rich. But most of the companies he started have not been lasting successes: as of this writing in 2007, Silicon Graphics is dying, having lost tens to hundreds of millions of dollars in each of the last four fiscal years; Netscape was acquired by AOL, whose subsequent acquisition by Time Warner nearly killed the latter company; Healtheon merged with WebMD, whose business model is substantially less ambitious than Clark's original concept for the company; and myCFO, the newest new enterprise mentioned at the end of the book, morphed into a company that offered illegal tax shelters to wealthy clients, came under investigation by the IRS, and was eventually sold for only one third of the original money poured into it. Toward the end of the book, Lewis also wryly mocks John Doerr's VC firm Kleiner Perkins for paying $25M for a 33% stake in Google, which he writes "consisted of a pair of Stanford graduate students who had a piece of software that might or might not make it easier to search the Internet." Poor Kleiner Perkins. Their Google investment was obviously a terrible mistake.

Michael Lewis is a great writer, but I enjoyed two of his other books far more: Liar's Poker: Rising Through the Wreckage on Wall Street and Moneyball: The Art of Winning an Unfair Game.

All in all, "The New New Thing" does a good job of exposing the underbelly of Silicon Valley capitalism. But its focus on Clark and companies born out of the Internet bubble gives a distorted picture of the challenges in founding and running a technical startup. For a more accurate depiction, I recommend Startup: A Silicon Valley Adventure.
 
Classic Michael Lewis on Silicon Valley ****
If you have read any of Michael Lewis's other books and found them enjoyable (either writing style or topic), you will find this a good read, worthy of your time. You will learn a little about the atmosphere of Silicon Valley during the height of the bubble / late 90s as well as about a very unique figure who helped (over exagerated, per Economist) start it all.
 
How Silicon Valley Was Built and the Next Gen Entrepreneur! ****
A must read for any entrepreneur or intrapreneur(someone within a company who must innovate). Lewis opens with stories about Jim Clark -- reknown Silicon Valley entrepreneur and innovator and his boat that 'built Netscape"...the book talks about Netscape which Lewis says launched the Information age (it may or may not have but it certainly ushered in the IPO era and online businesses. Interesting what has since happened to Silicon Graphics and Healtheon that was supposed to turn the health care industry 'on it's head'. The inside cover talks about --- what else-- Paradigm shift in American culture-- from conventional business models (the old economy) to the new economy. Yet in retrospect we know that a mix of the best of both is really probably the way to go. The titles of the chapter are more clever than the chapters themselves. I personally would have liked to see more about different innovators not just Clarke but then I didn't write the book. The chapter titles include "Pasts in a Box" Disorganization Man, Home of the Future God Mode -- How Chickents Become Pork, Cheese Sandwiches for Breakfast, Chasing Ghosts, The Turning Point and The New New Thing....
 
Toy Story for High Tech Billionaires *****
This book is the potboiler version of how to create new industries, and advance the world for everyone.

Like the Victorian writers who detailed lovingly how royalty employed personal plumbing, Lewis focuses on Clark's obsession with gadgets. Many technically-strong, wealthy men like gadgets, so this is the Walter Mitty look for everyone who shares that fascination.

On the other hand, Lewis has little idea why people like Clark are successful and what the lessons are for the rest of us.

If you like the People Magazine approach to financial journalism, you've found your book.

If you want to learn how to be a high tech entrepreneur, I see little that will help you.

This is a soap opera tale, and if read as such you will feel totally rewarded. A larger-than-life character like Jim Clark makes a wonderful subject for a Lewis book.

Enjoy!

 
THE DAY THE TECH WRECK HEADED SOUTH *
.

If you liked Sandra Bullock in "The Net " you'll love Jim Clark in "The New New Thing ".

In both that movie and Michael Lewis' book, you'll learn diddlysquat about the Internet or the Web. Instead you'll get some hyped up, impressionistic flim flam hoping to move us, and entertain us with the exciting new world (as it was) of the Internet (circa mid 90s). The movers and fakers come straight from central casting.

The book floats along with Clark's cyber-yacht "Hyperion" as the centerpiece of the action. The fate of this boat, with its over-engineered, 25 SGI workstation driven technology was a disaster waiting to happen. Its bloated pretentiousness and lack of real connection with maritime fundamentals (just forget about the weather) is a good allegory to what was going on in those 5 fantastic years that followed the Netscape IPO of 1995. Those investors who went along for the ride thought they had discovered the fail-proof money making machine.

Lewis as a writer and Clark as an engineer, turned billionaire and aspiring yachtsman, appear to know very little about the fundamentals of sailing. You can't cross the Atlantic Ocean " in a straight line as quickly as possible" as Clark commanded his skipper. ( p316). There are some basic elements such as winds, currents and the curvature of the earth to contend with.

There is no doubt that Clark is a driven man, unashamedly escaping his past. There is a strong element of psychobiography in this book. For Clark everything has to be new. The mystery of the old tarnished tuba from Clark's schooldays, which sits in a corner of Clark's guestroom, is one of the keys to the past that Lewis reveals to the reader.

The most worthwhile part of the book (p398) is when Lewis reflects " Why do people perpetually create for themselves the condition for their own dissatisfaction?"

On the following page, he observes " People who are unhappy with the way things are, tend to remain unhappy even after they have changed them." These are profound insights. It is a shame that Lewis distracts us with all the trivia in between.

This book confirms that the two high points of the Californian economic miracle (Silicon Valley and Hollywood), are both a product of a systemic frustration with the shortcomings of reality. What else do we need to drive our hoped-for progress as a civilization and at the same time "enrich" our popular culture? Materialism, whizz-bangery and vicarious thrill seeking fills the gap.

Those readers who have limited familiarity with the technology behind the Internet revolution, deserve more explanation of the significance of the key underpinning developments that were central to Clark's enterprises. Microsoft and the Browser Wars get a good run but surely the role of non-Windows operating systems such as UNIX warrant some passing comment in this book.

Lewis's writing style can be tiresome particularly his use of the F--- expletive on almost every page. Adding color to the dialog is one thing, and it may reflect the way some people talk, but it is more distracting than useful in a work of non-fiction like this.

The author evidently resides in Paris (France not Texas) these days. From that locale, you would think he would be less parochial when discussing the eating habits of non-Americans. He sneers at the cheese sandwiches the young Dutch investment analysts eat for breakfast...

The climax of the book is when the Hyperion has engine failure in mid Atlantic. If this book is ever going to make it as a movie, it will need some good continuity work. On page 345, with the yacht's motor stopped, the engineer goes down to the engine room --- "It was hot. It was loud enough that Robert needed ear mufflers". Did he forget to turn the Hi Fi down?

With so much emphasis in this book on the ups and downs of stock prices, you would think the author and Clark would know when things were heading south. Most of the time they were at sea in the Hyperion no one knew the direction of the wind. The yacht with its over-reliance on technology is reminiscent of lots of bloat-ware that choke up our PCs. The Hyperion was lucky it didn't disappear into a fatal blue screen of oblivion.

The most fascinating scene in the book is where Clark, only two days into the voyage across the Atlantic, becomes totally bored with his new toy boat. This says it all.

"The New New Thing " provides a valuable insight into one of the key personalities of the Internet market frenzy of the late 1990s. Unfortunately, since we all seem to be consumed these days by chasing newness, this book (and the lessons it teaches) will be totally forgotten in a few years time. Henry Ford would be at home in Silicon Valley today. History is still all bunkum when technological advancement, takes precedence over people or nature

For readers who want real insights on where the Web came from, the people who were responsible for it, and the business cultures that have emerged in its wake should read "Architects of the Web", Robert H Reid's great book from 1997. "The New New Thing" in contrast looks like a tired relic from the last century only two years after publication.

 
Sycophantic clap-trap *
Terrible. Terrible. Terrible. I bought this book for two reasons a) The author came highly recommended for his book Liars Poker and b) if he did for the dot-com industry what he did for the finance industry it would be a great insight and a great read to boot.

What I got was a sycophantic, one-man song of praise for Jim Clarke. It was sickening in its own right, and depresssing to see such a sell out by the author.. That this book ever made it to print is a crime.

You know a book is bad, when the quotes on the dust-cover telling us how good the book is are not about the book in your hand, but another book - in this case Liars Poker.

The only good thing that came out of this is that I went and bought Liars Poker. It was every bit as good as I expected it to be. Shame on you Michael Lewis

 
Money Money Money ****
An easily readable account of the rise and rise of internet entrepreneurs in California's Silicon Valley, that manages to capture the essential insanity of the whole shebang. If ever there was a bubble waiting to burst, it was this one, but Lewis here concentrates on many of the people who've cashed in before the fall. Trouble is, as the book progresses and charts the obscene amount of money that is being made, I began to wish feverently that it would all end in tears for this bunch of Manon worshipping droogs. Lewis doesn't help matters at all, potraying most of the protaganists as little more than the sum of their bank accounts. In the end, despite his best efforts to coin a phrase, the New New Thing turns out to be the Old Old Thing after all: money.
 
Jim Clark's fearless instincts transcend all barriers *****
This riveting account of Jim Clark's progression from Silicon Graphics, through Netscape and Healtheon is surely the most inspiring treatise on how to survive and prosper in the new, digital economy. As long as you are Jim Clark, you can literally do anything, even take three companies to $1 billion IPO's and still live to fight another battle (which he continues to do...). Anyone who wants to enter the arena of the digital economy would do well to read about the people who, inspired by Jim, did the most amazing things for the sake of simply being the best. (They got pretty rich in the process too).
 
Life of an Internet Salesman ***
When Lewis set out to write this book, he was attempting to expose and satirize silicon valley in the same way he had skewered wall street in his previous books. In the course of writing the book, he is introduced to Jim Clark. The New New Thing then becomes a hagiography of Clark's personality, ambitions, and achievements. Though I found the book entertaining and well-written, I was disappointed that the author casts such an unskeptical eye on Clark. Lewis saves his satire for the one person that most readers could empathize with - Allan (the Captain of Clark's boat) and an internet investor. One quarter of the book is devoted to Lewis's time on Clark's yacht - this narrative is wholly gratuitous and lends little to the story other than to show that the author had unparalleled acess to Clark. This book would be richer, if a preface was added. Lewis wrote this book before the NASDAQ topped off in March 2000 - and one wonders if Lewis would assign Clark any responsibility for the hype that was created and the real life consequences for those who lost large amounts of money in the ensuing crash.
 
Not as good as Liars poker ***
Very well written but gives an insight into Clark's life more than an insight into Silicon Valley. Reads more like a biography and does not capture the wheeling dealing in Silicon Valley whcih the reader might have expected to see.
 
A Silicon Valley Story *****
I really enjoyed the story line here. Jim Clark was portrayed as a man who had vision, yet the desire to never be "locked in" to something for too long. One might wonder if all of the time spent dealing with the Board of Silicon Graphics made him change his behavior.

I do not agree with some of the posts here stating that the author lives and breathes on the words of Jim Clark. He was a business man that believed there were opportunities and quickly acted upon them. Like everything else, there will always be great and poor business decisions from a leader. No one is an exception here; including Mr. Gates.

So, back to the review; this is an excellent book to give folks an insight into the crazy late 90's, where business vision was accelerated 10 fold. Some big successes and many failure stories.

 
Multi-entrepreneur Jim Clark - Genius and/or madman??? *****
Michael Lewis is the author of several entertaining books, such as Liar's Poker (1989), Next: The Future Just Happened (2001), Moneyball (2003).

The author explains that it was not his intention to write an autobiography about Jim Clark, but he was trying to capture the entrepreneurial spirit of Silicon Valley. However, due to the amazing enthusiasm of multiple entrepreneur Jim Clark Lewis ends up following Clark. Jim Clark, who originally was a technology professor, is the first person to start 3 companies that each exceed a market valuation of $1 billion each: Silicon Graphics, Netscape, Healtheon. The book starts with the maiden trial of Jim Clark's multi-million dollar yacht 'Hyperion'. This enormous yacht is full of (ridiculous) technology and should be able sail on its own. The trial of the 'Hyperion' is just the start of an almost endless list of crazy, wild stories about technology companies, Internet start-ups, and IPOs'. The author seems to have trouble keeping up with Jim Clark's ideas and (true) stories.

Yes, I do like this book. Although it mainly focuses on multi-entrepeneur Jim Clark, it also describes the stories behind various Internet-companies (AOL, Yahoo!, Microsoft, etc.) and the Internet bubble. The writing style of the author is extremely entertaining, while still containing lots of information and facts. The book feels like a rollercoaster, but it is great fun!! I recommend it highly.

 
disgusting portrait of greed and conceit *
I've enjoyed other books my Michael Lewis (esp. Liar's Poker) but this one was sickening. He treats every action and word from Jim Clark as manna from heaven, apparently on the basis that Jim Clark is rich, therefore he must be a genius. One hopes that the 97% slide in Healtheon's stock may have set him straight on this. This book was [hard] to read in 2000. By now there might be a certain unintentional humor in reading this kind of pandering, knowing better, but a couple of hundred pages of it is probably more black humor than you need. For actual information about silicon valley and the dotcom era, try High Stakes, No Prisoners by Charles Ferguson, or Nudist on the Late Shift, by Po Bronson.

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