Revelnnovation

PayPal…like a startup?

The Next Web: Looking at what you were doing before PayPal, I note you were involved in a lot of young startups? It sounds like you’re an entrepreneur at heart!

Holger Spielberg: Yes, that was a lot of fun.

The Next Web: So, how does working in that sort of entrepreneurial environment differ to working at a huge company such as PayPal?

Holger Spielberg: PayPal Germany feels like the biggest startup I’ve ever worked in.

via flickr.com

The Next Web: Ha, that was going to be one of my next questions…

Holger Spielberg: It’s very dynamic, great people, a good roadmap and it’s all based on a viable business model.

The Next Web: You mentioned earlier that you’re “hiring, hiring, hiring” – how big is your hub at the moment and how are you growing?

Holger Spielberg: We currently have about 95 people in Germany, and will add another 40 by the end of 2011.

The Next Web: How many are in innovation?

Holger Spielberg: I just started that department in January. We are 3 people full-time now, plus we have direct access to virtual organisations in ‘product’. Oh, and I’m also hiring a Developer Evangelist, someone skilled in developing SW, but also able to communicate, present and ignite innovation in the developer community.

The Next Web: That sounds very cool. I’m particularly interested in the issue of innovation, and how big companies can stay innovative. My question is – how do you feel PayPal stays innovative, and how does the culture promote that?

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 We also have an internal innovation platform. Every employee can enter ideas, which is then voted on internally. This can be related to …anything. ~ Holger Spielberg

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 Holger Spielberg: Well, the biggest engine is internal product development. That is mostly focused on the payment side of things and strategic developments. We also have x.com, which is an open developer platform to engage external innovation, especially in mobile, couponing etc. You might have also heard we are active in mergers and acquisitions to create a field of innovation gravity around us. We also have an internal innovation platform. Every employee can enter ideas, which is then voted on internally. This can be related to payments, internal processes…anything.

The Next Web: So are you open to acquiring younger startups in your field? I note that Visa invested in Square recently?

Holger Spielberg: We just acquired BillSafe in Germany, Where in the US and there are others in the pipeline. BillSafe will continue to sell under its own brand and will gradually be integrated into full PayPal offering.

The Next Web: Would you agree that acquisitions can kill off innovation? And if so, what do you actively do to ensure this doesn’t happen in companies you buy?

Holger Spielberg: Innovation is the realization of an idea. So you have to bring ideas into business reality. That sometimes is not innovative, but pure execution. It basically comes down to what field of thought and innovation you offer the talent in the companies. In the EU context, I believe PayPal has an excellent innovation culture. The markets here push us to innovate.

The Next Web: Ah, so because your industry is so fast-paced and evolving all the time, you really can’t stand still?

Holger Spielberg: Correct.

On to Apple, as originally posted to Reveln Consulting:  

There's BUZZ out via a new Fortune 500 article revealing "Inside Apple" insights. Those who have access to the physical magazine can see a circular organization chart that revolves around Steve Jobs, and why Apple acts like a start-up on purpose! (Only paid versions of the full article are available currently.)

Fortune has a great article titled ‘Inside Apple’ in its May 23 issue [featuring] the inner workings of the massively successful company, the unique Apple company culture and philosophies, and...some great anecdotes about Steve Jobs.

– Thinking Different:

There aren’t any committees at Apple, the concept of general management is frowned on, and only one person, the chief financial officer, has a “P&L’, or responsibility for costs and expenses that lead to profits or losses. Most companies view the P&L as the ultimate proof of a manager’s accountability; Apple turns that dictum on its head by labeling P&L a distraction only the finance chief needs to consider.

“Steve would say the general manager structure is bullshit”, says Mike Janes, the former Apple executive.

– Knowing when to say No:

One of Apple’s greatest strengths is its ability to focus on just a few things at a time … Saying no at Apple is as important as saying yes. “Over and over Steve talks about the power of picking the things you don’t do.”

– The difference between Apple and Microsoft:

From an executive who’s been at MS and Apple – I think this one is maybe one of the single biggest contributors to Apple’s greatness in the consumer electronics arena:

“Microsoft tries to find pockets of unrealized revenue and then figure out what to make. Apple is just the opposite: it thinks of great products, then sells them. Prototypes and demos always come before spreadsheets.”

 

– The enormous impact of Steve Jobs on Apple:

Jobs himself is the glue that holds this unique approach together. Yet his methods have produced an organization that mirrors his thoughts when – and this is important – Jobs isn’t specifically involved. Says one former insider: “You can ask anyone in the company what Steve wants and you’ll get answer, even if 90% of them have never met Steve.”

The whole Fortune article is a fantastic read if you’re interested in Apple and what drives their phenomenal success. You can read the May 23 issue in the Fortune iPad app ($4.99 per issue) or in the print edition.