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Program - By Media Track:

Monday, April 23, 2007

  10:15 AM - 11:30 AM

Director Sydney Pollack Interviews Architect Frank Gehry

Frank Gehry , Architect, Gehry Partners LLP

Sydney Pollack, Director, Producer

Frank Gehry is one of the world's most famous architects, responsible for such gems as the Guggenheim Museum in Bilbao, Spain, and the Walt Disney Concert Hall in Los Angeles. Sydney Pollack is an Oscar-winning director whose credits include Out of Africa and The Firm. One year ago, Pollack produced a fascinating documentary about Gehry called, "Sketches of Frank Gehry, an incisive portrait of the famed architect.>p> The conversation between the director and the architect began with a clip from the documentary in which the architect and an associate examine and "play" with a model for a new building. This theme of playing came up often during the conversation, as Pollack wanted to know to what degree childlike play was a conscious decision. The architect replied that such playing, even in industries such as finance, allows participants to be more "innocent" and creative.

Following the clip, Pollack showed a slide of the Guggenheim Museum in Bilbao, which Gehry designed in the late 1990s. Though now considered a magnificent piece of architecture, the audience and panelists laughed when Pollack reminded the group that 10 years passed before Gehry was asked to design another museum. Pollack wanted to know why it took so long to receive another museum commission, and Gehry suggested that "most people just want a building -- they don′t want an emotional investment." Besides that, he said, the powers of the marketplace determine what types of structures get built.

The architect expressed his general disinterest in other people's opinions of his designs, claiming that he is more critical of his work than any professional critic. "I am so self-critical," he said, "and I haven't found one architectural critic who can come close to my own criticism." On the other hand, his firm, Gehry Partners, is one of the most efficiently run architectural firms, and all the buildings designed by Gehry are profitable.

Pollack addressed the controversy that often accompanies a Gehry design and wanted to know what "the big deal" about him. The architect quipped, without missing a beat, "I′m cute!" But on a more serious note, he suggested a few reasons for his continued popularity. First, on a creative level, he continues to explore new ideas, and his work "doesn′t look like other stuff." He said he also pays attention to clients and their budgets -- staying within budget is extremely important. Finally, he said, he doesn't try to be different just for the sake of being different because doing so would be disrespectful to the public.

The interplay between the two artists illustrated what appeared to be very different approaches to their work. Pollack was interested in analyzing and putting into words Gehry's design methods. Gehry, on the other hand, was much more laissez-faire, choosing to follow his intuition rather than scrutinize his creative process. The complementary natures of the two men, however, provided for a lively and entertaining conversation.

  2:00 PM - 3:15 PM

The Wisdom of Crowds in Today's Digital World: We vs. Me

Chris Larsen , CEO and Co-Founder, Prosper Marketplace Inc.
Barry Libert , CEO, Shared Insights LLC
Christopher Meyer , Chief Executive, Monitor Networks, Monitor Group
Yossi Vardi , Chairman, International Technologies Ventures (Tel Aviv)

Yoram (Jerry) Wind , The Lauder Professor; Founding Editor, Wharton School Publishing; The Wharton School, University of Pennsylvania

Social networking communities like MySpace, YouTube and, most recently, are being called by many the "next big thing" in business. But are they really a new and different kind of business model? From a social perspective, do they really provide unique and expanded benefits to their members? And finally, are they good investment opportunities of precious capital?

Based on their personal experiences starting, running and analyzing community-based businesses, the panelists challenged widely held assumptions and shed new light on how to launch a successful social networking venture.

"We are already all members of many groups," including alumni associations, sports teams and religious organizations, said Barry Libert of Shared Insights. We just don't think about real-world communities the same way we do virtual communities. But community banks, for example, have existed for decades, matching borrowers (who take loans) with creditors (who make deposits).

All panelists seemed to agree that social networking communities are a natural evolution of business. A society fulfills its needs by means of economy, said Christopher Meyer of Monitor Networks, and digital social networking is just the next step in that evolution of economics. Chris Larsen of Prospect Marketplace suggested that this is essentially "getting back to the roots" of the message "no people, no value."

So what are some of the common features of this new business model? First of all, it is premised on an assumption that collaboration is good.

Yossi Vardi of International Technologies listed some of the forces that drive people to participate in communities. The most important, he said, is collaboration. "People are wired for collaboration," he explained, "and most of the time it works." Vardi even suggested a physiological reason for this: humans like collaboration because positive interaction releases dopamine into the bloodstream.

To facilitate collaboration, a community must also have openness and transparency to ensure trust between members and establish credibility of the community as a whole. Third, while self-expression is another key driver of communities, self-governance is critical to maintain the proper balance of individual versus group interests. Self-governance, said Libert, becomes the "invisible hand" that protects your interests.

And underlying all these common features is the concept or business around which members of the community want to "engage."

"Viral (marketing, when embedded ads are conveyed, for instance, at the bottom of an e-mail) is a very misused word," he said. Word of mouth and the engagement of people with common interests are every different from viral marketing; communities start by asking people questions that provoke emotion, and then develop from there.

Having said that, the most successful businesses start with innovative ideas. The technology is the tail end of the process. "Once you can reduce (an idea) to an algorithm," said Vardi, "the magic goes away." Long before that step, many creative questions must be asked and answered about how the community changes the way members work, what member capabilities are required and what value is created and derived by members.

Vardi pulled up a web site,, onscreen for the audience. The site offers several versions of the guessing game 20 questions and seems to have a high success rate in guessing animal/vegetable/mineral nouns (among other things, such as movie and television tiles) quickly though a methodical posing of questions. The audience chose the word "wheelbarrow" for its word and answered questions generated by the program. For instance, "Is it something you can buy?" "Is it square?" "Is it something used in the garden?" After just a dozen questions, it hit upon the correct answer.

People working in collaboration can achieve similarly results through collaboration -— more quickly and easily and correctly than people will by themselves. The computer game poses questions that must be answered methodically (and accurately); in real life, Vardi seemed to suggest, collaborative groups would naturally track questions asked (so they wouldn't have to answer those same questions posed in numerous variations); and they would tend to be sure that, along the sequence, they found the best answers.

There are many different kinds of potential business models., for instance, is a not-for-profit enterprise, seeking instead to create consumer utility. In reality, potential social-networking entrepreneurs can fund their investments and generate revenue through a number of way, ranging from subscriptions and sponsorships to advertising and user support. And these methods can be mixed together, depending on the goal and scope of the community and its members.

For those hoping to make their fortune from social networking communities, Vardi offered an interesting perspective on the prospects: The first hundred million users, he said, are the most difficult go get and hold on to -- but that's also the threshold for success these days.

When Vardi sold ICQ (which had pioneered instant messaging) to AOL for $400 million, he said, people asked him if he thought AOL was being rational. He responded by saying that if he had been rational, he would not have sold the business to AOL, and if AOL had been rational, it would not have bought the business. Neither the buyer nor the seller had any idea how successful ICQ might be, but ICQ did eventually add significant value to AOL's overall business. From that perspective, Vardi said, "We think revenue is a distraction."

  4:50 PM - 6:00 PM

Rewriting the Rules of Marketing: How to Reach Today's Busy, Harried, Selective and Ultra-Critical Consumers

Peter Arnell , Founder and Chief Creative Officer, Arnell Group
Trevor Kaufman , CEO, Schematic
Peter Maslen , CEO, Knowledge Universe Education
Lynda Resnick , Co-Chairman, Roll International Corporation

Reed Hundt , Advisor, McKinsey & Company; former Chairman, Federal Communications Commission

Rules are rewritten all the time, and marketing is in the midst of major rewrite, yet its fundamental principles remain strong, according to this panel moderated by Reed Hundt, former chairman of the Federal Communications Commission.

Recent research indicates 78 percent of Americans use the Internet, while only 5 percent to 10 percent actually listen to broadcast media commercials. Coupled with the explosive growth in electronic media options, the interactive capacity of the Internet allows consumers to select their preferred media and interact with companies, other consumers and third parties (e.g., government) who influence purchase decisions. Today's successful companies embrace these new opportunities with inclusion of marketing at the earliest stages of product development and an interactive, multimedia approach that both "pushes" information and enables consumers to "pull" information they desire. Successful companies capitalizing on this consumer willingness to express preferences through "pull" content selection, e-mail and weblogs (blogs) can monitor the buzz for consumer feedback. But they know the competition is listening, as well.

The panel cautioned that exciting opportunities do not overshadow fundamental principles like truth in advertising and the importance of branding as a form of trust in the efficacy and consistency of a product. The amazing speed and interactive nature of today's market creates harsh consequences for misrepresented products. "The foundation of every marketing strategy must be the truth," this panel warns.

Leading off the discussion was Lynda Resnick of Roll International Corp. Whether discussing her, Fiji Water, POM Wonderful or pistachios, she said she thinks "multimedia" at every turn from the 1,200 events her companies sponsor each year, from billboards, celebrity endorsements and active internet content to product placement in movies and "guerilla tactics" like college campus poster campaigns with multiple messages targeting biology, say, or art students. When asked how best to brand on the Internet, she said, "Buying key words on the Internet is the most important thing you can do." She went on to explain the importance of ensuring your message is on the first page of search engines, whether you use a smart selection of key words or paid advertising.

Trever Kaufman of Schematic noted his clients are "looking to create more than a message, to include the product itself." His display stepped the audience through his company's work with Electronic Arts to integrate live ESPN streaming video into the latest edition of the popular Madden NFL 08 video game. "Stop talking about the Internet as a medium," he said. "The interface is the battleground for advertising when the Internet is integrated into IPODs, video games and cable television."

Peter Arnell of the Arnell Group took these thoughts one step further by demonstrating how early involvement in product development can revolutionize something as mundane yet important as the home fire extinguisher. Market research revealed that 87 percent of all home fires start in the kitchen yet most kitchens lack a readily available or easy-to-use fire extinguisher. Current products are ugly and overly complicated. To capture this market, his firm invested in product development with Home Depot and a manufacturer to produce an aesthetically appealing, simpler kitchen fire extinguisher with an active communications interface to the home's other safety systems. Drawing on the analogy of Braun's successful introduction of a "pretty" coffee machine, this effort was designed from the outset to "focus on the medium, build the message from the 'front end' and make it integral to the product." Arnell noted this was possible because his marketing firm "actually invests in the product rather than provide a service," making it an integral part of the product development and sharing the development risks with the other key partners.

Drawing on the way products were marketed prior to broadcast media, Peter Maslen of Knowledge Universe Education noted that "everything is the same again. We can talk to consumers and they can talk with us, just like the days before radio and television." Broadcast media provided no real conversation opportunities. But today's mosaic of media options and the Internet allow us to carry on a two-way conversation with consumers that benefits both parties and is essential to building consumer trust in products.

"Yesterday we believed," said Maslen. "Today we question. We no longer trust." He reminded the audience that "we build brands around an experience" and the more powerful an experience, the more that brand will be trusted (or distrusted). Thus, successful companies reinforce a good experience at every opportunity, with Starbucks perhaps the best example. Starbucks has never advertised on television but has emphasized that the brand is a trusted mark, and that its stores and employees are an integral part of the community --"a lounge away from home, where friends and business could meet."

Switching to international markets, Maslen cautioned that while Americans take branding for granted, it is extremely important aspect of marketing internationally. Similar levels of trust do not exist in places like Asia and Africa, simply because similar levels of product efficacy and consistency do not exist. Consumers in these regions are taught to distrust products, so to succeed in these markets requires truth and maintaining high levels of efficacy and consistency. Earn brand trust in these markets, and you have a tremendous advantage over your competition.

The issue of print media brought more frowns than solutions. All the panelists agreed that the situation is unclear. Print media is in a state of decline and facing fundamental questions on defining the business process as editorial content, news or something else. What that "something else" is may be unclear at present, though Kaufman noted that "our patience is becoming irrationally short" in terms of our appetite for news. Arnell suggested that it may take "20 years to figure out what follows the newspaper," and Resnick said she saw an industry struggling with the consolidation of retailers and new-media options that depress demand and, as a result, print advertising revenue. While all agreed they read print media less than in years past, the roadmap for how newspapers transform in the years ahead appears yet to be written.

The growth in media outlets truly allows consumers to pick and choose the media they desire and selectively tune out what they choose to ignore, the panelists agreed. Billboards and broadcast media will remain a staple for they "push a message to consumers, but time when only "push" media sufficed has long since passed. Today's consumer demands a two-way communication strategy, and it will not be long until that demand is an international standard as well.

Tuesday, April 24, 2007

  10:50 AM - 12:05 PM

Today's Successful Internet Businesses

Matt Coffin , President and Founder,; President, Experian Interactive Innovation Center
Suzanne DiBianca , Chief Service Officer and Executive Director, Salesforce Foundation
Scott Stanford , Global Head of Internet Investment Banking, Goldman Sachs & Co.
Mike "Zappy" Zapolin , Co-Founder,

Andrew Miller , Co-Founder and President, Internet Real Estate Group LLC

With the Internet still in its infancy, today's successful Internet companies have come a long way from those of the "bubble" era. They consist of strong survivors whose core was built during those first years, leading offline corporations adapting online and exciting, new and profitable players that have emerged very rapidly. Underlying all of them are some core principals: recognition of the value of a memorable and strong Internet brand and address; recognition that the most important aspect of any successful Internet business is to build a strong audience, defined by loyalty, participation and conversion rate; the prominent role that users play in developing Internet businesses (also known as user-generated content, social networks, or, just Web 2.0); leveraging and embracing the open-walled /open-sourced environment to rapidly and cost-efficiently build Internet businesses; and a strong understanding of basic Internet marketing, including search engine optimization, keyword buying and arbitrage, and affiliate and viral marketing. This discussion will center on the importance of applying these principles to create the successful Internet companies of tomorrow.

  3:35 PM - 4:50 PM

The Internet's Next Generation: Web3D

Wagner James Au , Author, New World Notes
James Bower , Founder, Chairman, and CEO, Numedeon Inc.; Professor, Computational Neuroscience, University of Texas Health Science Center
Jean Miller , Director, International Initiatives, Linden Lab
Constance Steinkuehler , Assistant Professor, University of Wisconsin-Madison

John Kruper , Chief Learning Officer, Cardean Learning Group

While much of the recent press has focused on YouTube, Wikipedia and MySpace, another Internet-based movement may soon eclipse these and other so-called "Web 2.0" companies. If you've never heard of World of Warcraft, Whyville, Second Life or I Love Bees, you're missing what's fueling the Internet's next generation of change -- what some are calling Web3D. In this session, you can engage with experts who are actively creating, studying and living in this brave new world of avatars, telepresence and collective intelligence. We'll discuss what happens when web technologies merge with digital games and virtual worlds, and we'll debate how these immersive environments can redefine personal identity, social behavior, individual learning and civic engagement. Join panelists for some "serious fun" exploring why the future won't be what it used to be.

Wednesday, April 25, 2007

  7:55 AM - 9:10 AM

You Say You Want a [Broadband] Revolution: How Are We Going to Change the World?

J.A. Johnson , Chairman, Global Communications Inc.
Laura Martin , Founder and CEO, Media Metrics
Dan Sudnick , Chairman and CEO, Trident Scientific
Michelle Wu , CEO, MediaZone

Lou Lehrman , Vice President, Dutko Worldwide

Moderator Lou Lehrman of Dutko Worldwide noted the United States has invested $100 billion to date in broadband infrastructure, with another $150 billion of infrastructure investment required to achieve "universal access." Universal access is the idea that all Americans should have access to broadband data services -- similar to universal access to electricity. But beyond the issue of whether infrastructure investment can even keep up with explosive growth in content, there remains a fundamental question: Is universal access even feasible, given the prohibitive marginal cost at current technology levels for providing broadband access to those living in remote areas?

The current broadband market is dominated by telecommunications companies (telcos) and cable television (cable) providers. Laura Martin of Media Metrics led the panel in noting that cable currently has the upper hand by offering "triple play" convergence of bundling voice, data and cable television content as one carrier and through one bill. "Don't count out the telcos though," she warned. They may appear less agile, but their sheer size and market position could result in their domination of the broadband market over time. The discussion made clear that both telcos and cable providers will remain relevant well in to the foreseeable future.

The panel predicted that current broadband technology will continue to expand in U.S. cities, where the marginal costs are rather stable for providing curbside connections. The real challenge lies in rural areas, where the marginal cost of extending present technology -- normally a fiber optic cable -- far exceeds the carrier's ability to recover the investment cost. While Dan Sudnick of Trident Scientific noted that wireless options can address some wideband demands in and near cities, wireless is not a feasible option for rural areas.

Jesse Johnson of Global Communications Inc. described one potential solution in the not-too-distant future. His company has developed an approach to transmitting data over existing "twisted-pair" telephone wire that supports high-capacity data transfer. While not yet ready for deployment, the approach may drastically reduce the marginal cost of broadband service to rural users by using existing telephone lines rather than installing new fiber-optic cable. Further advances may even address the anticipated exponential growth in future demand.

Universal access will also likely require federal government involvement to spur investment. Slow implementation of broadband in China and South Korea demonstrates the limitations of government-run telcos, in part due to their lack of access to market capital. So rather than look to government for a solution through provision of services or regulating access, the panelists agreed, both consumers and firms are better off with federal policies that spur market capital investments in technology and infrastructure to lower the cost of providing broadband services to rural areas.

On the issue of net neutrality, the panel split. The definition of net neutrality is still in flux but is generally considered the regulatory and/or design regime that does not differentiate (i.e., considers neutral) by content the information packets moving over the Internet. Net neutrality generally pertains to the "triple play" of voice, data and cable content, where a net-neutral regime would treat all packets equal for pricing, despite the fact that voice and cable content possess a higher priority for traveling over the Internet. It also pertains to whether the Federal Communications Commission (FCC) considers broadband services under information services or telecommunications regulations. The ability to prioritize content and apply tiered-fee structure is the dilemma for broadband service providers who expect to incur significant infrastructure upgrade costs to support the exponential growth of high-priority voice and cable content. A net-neutral policy would not allow the service providers to differentiate pricing based on content, despite the fact their infrastructure upgrades are a direct result of differences in content. Thus, broadband service providers prefer a non-neutral policy; as Johnson pointed out, if he has to incur the infrastructure costs for providing broadband services, he should be able to differentiate pricing based on the content that is driving his infrastructure design and implementation costs.

Conversely, small content providers advocate a net-neutral policy because it enables small startup companies to compete with the large telcos and cable companies that possess inherent efficiencies of scale and provide both content and services. They fear non-neutral network pricing policies allow large telcos and cable companies to price out their smaller competitors and create architectural obstacles to new content -- especially when the new content competes with their existing or planned business operations. They also note that a non-neutral network would come at the expense of consumers by eliminating the economic incentives to create new content products that consumers will eventually desire.

The last issue was copyright and content management to monetize reproducible content. The upcoming 2008 Olympics were cited as an example: more than 100 web sites already exist in China that will rebroadcast NBC's coverage of the Olympic Games without compensating the network, despite NBC's exclusive right to Olympic broadcast content. Consistent with other sessions, this panel generally concluded that NBC will be unsuccessful in completely stopping the rebroadcast over the Internet and that the challenge is to differentiate content based on quality and to generate advertising revenue based on the re-broadcasting of NBC's original broadcast.

The panel closed with reiterating that it is not yet feasible to fund the infrastructure for universal access at current technology levels and that the federal government would create an unintended disincentive for market capital to invest in new technology by choosing to regulate universal access. Panel members also agreed that net neutrality is a long way from being resolved and that it is too early to forecast the outcome.

  9:20 AM - 10:35 AM

Technology: The Next Cool Thing

Silviu Moraru , Manager of Technology and Competitive Intelligence, Wireless Terminals Division, Samsung Telecommunications, America
Richard Stromback , CEO, Ecology Coatings
Todd Thibodeaux , Senior Vice President, Industry Relations, Consumer Electronics Association
Shane Wall , Vice President, Mobility Group; Director, Ultra Mobility Business Planning, Architecture and Software, Intel Corporation
Michael Warner , CEO, Quantum4D

Kevin Klowden , Managing Economist, Milken Institute

The average number of household devices has risen from just 1.3 in 1975 to 26 in 2007, an astounding increase, and there are many signs that intelligent, personalized devices hold even greater potential in the coming years. "Technology drives new markets," said moderator Kevin Klowden, introducing the panel of technology and business leaders gathered to discuss "the next cool thing" that will shake up our markets.

Todd Thibodeaux of Consumer Electronics Organization explained that most of the $3,500 that households pay each year on consumer products is actually money paid for services, and said that he sees innovative services as a good value proposition for consumers in the future.

Michael Warner of Quantum4D predicted that virtual reality-based applications will drive the innovation of tomorrow. These applications can range from games to business data visualization. And Shane Wall of Intel said that while it is hard to imagine all the applications that lie ahead, they will likely to be very personalized experiences driven by ubiquitous computing devices.

Silviu Moraru of Sumsung credited increased capacity of mobile devices as the main technology enabler for new services and applications. For instance, he explained, the fourth-generation (4G) wireless standard download speeds of 100Mbps (expected to debut around 2010) will dwarf the current 384 kbps 3G speeds available today. Intel is preparing for the ubiquitous computing future by developing chips and sensors at much smaller size and order of magnitude with UltraMobile PC technology.

Richard Stromback of Ecology Coatings reminded the panelists that in order to make these devices viable, they must be manufactured in cost-efficient and environmentally friendly ways. His company, he added, has recently invented a clean process for efficient and eco-friendly coating of many heterogeneous devices.

Asked about the challenges these changes are likely to bring for both consumers and innovators. Thibodeaux stressed that usability is becoming a major barrier to adoption of products, especially high-tech solutions. If you ask the consumer to define the next cool thing, you′d probably hear simply, "something that works." Too many gadgets flooding the market today are a result of "product splat -- throwing products at the wall and seeing what sticks," he said. Instead Thibodeaux recommended spending time and resources to help users integrate new products into their existing environments, such as providing integrated store displays, installation services and easy access to maintenance. Successful products, he added, are breakthrough in a clearly defined area, but complementary to products you already own.

As the number of devices expected to work together increases, interoperability becomes more important. Incompatible standards have been a major source of frustration to consumers. However, as Wall pointed out, proprietary standards provide vendors with competitive advantages without which they cannot gain enough market share to make money on R&D investments. Thibodeaux added that often technology leaders disagree about what the standard should be. Time is required to come to an agreement, but the market often does not want to wait; as a result, competing vendors adopt different open standards.

All the panelists agreed that digital rights management (DRM), as implemented today, is a major barrier to usability, interoperability and ultimately the adoption of innovative technologies. Wall noted that DRM is a "temporary phenomenon," necessary for studios to "get over their fears" of how to sell products. Now, as Apple has clearly demonstrated, consumers will buy music online if it is a simple process, even if there is still a way to download it illegally elsewhere. Moraru agreed that DRM is doing more harm than good. Among handhelds with WIFI capacity download songs, only 1 percent of consumers actually download songs. The major reason cited by consumers is that they feel restricted that the music they pay for can only be played on the phone and they want to control the content and be able to transfer it among all their digital devices.

  10:45 am - 12:00 PM

Predicting the Future in a Fractured Media World

Peter Chernin , President and Chief Operating Officer, News Corporation; Chairman and CEO, Fox Group
Michael Lynton , Chairman and CEO, Sony Pictures Entertainment
Jonathan Miller , former Chairman and CEO, AOL
Terry Semel , Chairman and CEO, Yahoo! Inc.

Dennis Kneale , Managing Editor, Forbes

Every 20 to 30 years, the global media marketplace is shaken by dramatic shifts in technology. Hollywood has weathered the upheavals caused by sound, television, the VCR and cable TV. However, unlike the past, this period of change simply refuses to go away. Just when the DVD appeared to be the key to profitability, sales started to stagnate. Cable and satellite TV continues to fragment into hundreds of channels. Movie production, finance and distribution continue to shift overseas where India has long made more movies than the U.S. and China buys more computers. And the Internet continues to provide new challenges and alternatives almost daily. What are the keys to providing stability and growth in this new era? Does the power still lie with the content providers or has it shifted to the distributors? Will our future television and movies be coming from China, India or Latin America? This panel of industry leaders will explain how and why America can remain the key player in the years to come.

  2:10 PM - 3:25 PM

Digital Distribution That Works

Phillip Alvelda , CEO, Chairman and Co-Founder, MobiTV Inc.
Garth Ancier , President, BBC Worldwide America
Kurt Hall , Chairman, President and CEO, National CineMedia LLC
Mitch Singer , Chief Technology Officer; Executive Vice President, New Media and Technology, Sony Pictures Entertainment Inc.
Michelle Wu , CEO, MediaZone

Dennis Kneale , Managing Editor, Forbes

As illegal downloads and piracy continue to get the bulk of attention both in the press and in Washington, numerous companies have managed to develop legal models for digital downloads and distribution of content that not only work, but are actually profitable. Whether through cell phones, video-game systems, movie theaters, peer-to-peer systems or advertising-driven, publicly accessible content, innovators have shown that it is possible to make money online without depending on end users to flout the law. Several key players in this field will explain exactly what opportunities exist, and how it is possible to build a stable growing business model around them.

  3:35 PM - 4:50 PM

Building Great Companies by Investing in Human Capital

Sumner Redstone , Executive Chairman, Board of Directors, Viacom Inc.
Terry Semel , Chairman and CEO, Yahoo! Inc.
Steve Wynn , President and CEO, Wynn Resorts

Jeff Greenfield , Senior Political Correspondent, CBS News

The method for investing in human capital is far from well-defined. However, looking beyond the numbers of every great company, one finds a positive culture that fosters success in its employees from the top on down. On hand to discuss how to create this kind of environment were three remarkably successful businessmen: Steve Wynn, President and CEO of Wynn Resorts; Sumner Redstone, Executive Chairman of Viacom; and Terry Semel, Chairman and CEO of Yahoo!

Moderator Jeff Greenfield of CBS news began the session by asking Redstone his method for hiring employees. Redstone responded by outlining the three C's he looks for in people he works with (Redstone made a point of refusing to say that people work "for" him.). The three C's, he said, are competence, commitment and character, but he made clear that "without character, I'm not interested in competence or commitment."

Redstone said his criteria have served Viacom well, declaring, "We have the best programmers that exist in the world," which has allowed him to take a less hands-on approach in managing Viacom. This is the optimal way to develop a company culture, he said. "Don't be intrusive. Empower the people who work with you to make the decisions."

Redstone said that the combination of his leadership and the skill and integrity of his employees had produced remarkable success. Commenting on fostering creativity while maintaining fiscal discipline at CBS, Viacom's television network, he noted, "I think we have solved the problem where art reaches and meets commerce."

Greenfield asked Terry Semel whether he could utilize the same value system in managing a 12-year-old company Yahoo! as he had at his previous job at Warner Brothers. Semel described great similarities in his strategy for managing the two companies, noting, "It has everything to do with creating a family-type atmosphere, where people are a team and working together and trying to help each other really succeed, instead of competing with each other all day long."

Addressing Yahoo's! ups and downs over the past several years, Semel emphasized the need to think long term and keep employees informed about company developments. He spoke of Yahoo's! quarterly company-wide meeting in which employees meet with him and other executives in small groups to discuss strategy and ask questions about the state of the firm.

Semel maintained that even in his unique position, leading a highly innovative company that is changing the face of human communication, his fundamental responsibility remains the same as that of any other leader. "Over the long run," he said, "my job, the job of any leader, is to motivate the audience, to motivate the team and to give them the encouragement that if they had something that didn't work that well, that they are still revved up and sticking to the strategy going through."

Wynn stressed that the key to fostering human capital is to focus on the simple things. "People relate to the same things in the workplace that they do at home -- kindness, consideration, those simple things," he said. "Every time we come up with a complicated idea in human resources, we can't get it accomplished in a large organization. Simple gets the money. Simple gets the job done."

Wynn described the fundamental challenge of business as "finding a way to make people feel good about themselves doing their everyday jobs, whether their boss is there or not." Wynn Resorts uses several techniques to try to accomplish this goal. The company has a program called "story-time," in which employees meet once a month with their supervisors to tell on-the-job stories. Wynn believes that the program has improved company morale by allowing employees to share their experiences and feel recognized for jobs done well.

The discussion showed that different approaches can be used to foster a company's human capital. Ultimately, these techniques are mostly focused on the same ends, namely, showing employees respect, providing them with room to exercise their talent and inspiring pride in their jobs.

  3:35 PM - 4:50 PM

The Internet and Your Health

David Agus , Director, Spielberg Family Center for Applied Proteomics; Research Director, Louis Warschaw Prostate Cancer Center, Cedars-Sinai Medical Center
Adam Bosworth , Vice President, Google
Wayne Gattinella , President and CEO, WebMD
Glen Tullman , Chairman and CEO, Allscripts Healthcare Solutions Inc.

Steve Downs , Deputy Director, Health Group, Robert Wood Johnson Foundation

All panelists agreed that the Internet is already playing an important role in the lives of patients, as well as physicians, and that its importance will only grow with the time. "Today, eight out of every 10 online users search the Internet for health information," said Wayne Gattinella of WebMD. "This is an exciting time for both physicians and patients. Everyone would be in a better shape if (more)health-care-related information were available online."

Gattinella noted that a million registered doctors are coming to WebMD each month. It is common for large physician groups to turn to the Internet as the source of information, he added. Smaller physician groups have not yet used the web to such an extent.

Adam Bosworth of Google said that Internet users are searching for health-related web sites for various reasons. They may seek information for use as a diagnostic tool concerning their own symptoms; to learn about specific institutions, doctors and caregivers; to search out the latest research and health news; or to locate other people or support groups coping with same disease, particularly in connection with the chronic and recurring diseases.

At the same time, the panelists agreed, while both patients and physicians are turning to Internet, it is important to distinguish what they are trying to achieve. Some doctors feel threatened by their patients' Internet searches of symptoms. The chief problem, of course, is that sourcing may not be accurate or even legitimate. "Doctors have little time to see a patient," said David Agus of Cedars-Sinai Medical Center, "and here comes a patient with lot of printouts from the web. The question is, how useful is the information?"

What is more helpful is when doctors themselves direct their patients to reputable health sites for information. "Seventy percent of doctors actually do refer their patients to web sites," explained Agus. It wasn't so long ago that physicians downplayed the use of online information altogether; nowadays, they're needed as guides through an overabundance of information, some of which is not helpful.

Another challenge lies in electronic health records (EHRs) and patient privacy. With the use of HER, about 7,000 lives can be saved annually, lives otherwise put in risk because of handwriting errors or other simple human mistakes. For instance, said Glen Tullman of Allscripts Healthcare Solutions, 93 percent of all prescriptions are written outside the hospital. But if information on patients were kept easily accessible and available, medication errors and other safety issues would decrease. EHRs can be part of databases so that all the information on a patient is available with a single click. There are privacy concerns, but at the same time, there is a need to share this information, said Gattinella, adding that health information needs to be portable, uninterrupted and transparent. And the Internet can allow all this to happen.

The Internet has also provided employers with better outreach to large groups of people. Corporate awareness of the benefits of employee health are paying off, said Gattinella, and some companies even include their efforts on behalf of employee wellness in their missions statements.

In the conclusion, all speakers agreed that health and the Internet will grow more interconnected. Medical school graduates now have interactive medical educational backgrounds. But online information is simply a means to an end, and physicians and patients need to share their information. And while the Internet is changing how patient-physician relationships develop, it is still just a tool to help people stay healthy, said Steve Downs of Robert Wood Johnson Foundation. And Bosworth noted, "The problem is that a lot of patients are walking with much more information, but still so many of them may have a disease and may be not diagnosed."

It's good that patients come to the doctors with already researched information," said Tullman. In 10 years at most, he added, we will look back at doctors who didn't use Internet today and think their hesitation was absurd. "It′s impossible to keep all that information in your head, so it is normal to rely on the Internet as a source of information that is easily accessed," he said.

The Internet, he concluded, should be used in addition to a physician. "If it's used as a substitute to a doctor, we will fail."

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