Rewind: How big companies kill ideas — and how to fight back, with Tony Fadell

Nest Challenges

Tony Fadell reflects on the journey of Nest, highlighting the challenges faced after its acquisition by Google. He describes the initial optimism as a "marriage" that quickly turned sour, likening it to a "Tindler swindler" experience 1. The acquisition of companies like Dropcam and Revolve was part of Nest's strategy to build a comprehensive smart home platform, although not all ventures were successful 2. Fadell emphasizes the importance of owning the software and user interface in the home ecosystem, rather than the hardware, as most connected home products are not profitable businesses 3.

   

Scaling Issues

Scaling a company presents unique challenges, particularly when transitioning from a small team to a large organization. Tony Fadell notes that the most difficult phase is moving from 6 to 20 employees, where personal relationships start to change, and then again at 120, where communication styles must adapt 4. He shares insights from his experience at Phillips, emphasizing the need to anticipate structural changes as a company grows 5. Fadell recalls the internal competition at Apple between macOS and Linux teams, illustrating how scaling down projects can also be challenging 6.

   

Learning from Failure

Failure is a crucial part of innovation, as Tony Fadell explains through his experiences with Nest and earlier ventures like General Magic. He highlights how even successful companies like Apple and Google can resist change, and that big ideas require time to develop 7. Fadell's book, which features micro chapters for the "TikTok generation," aims to offer value and insights into overcoming these challenges 8. He hopes to inspire others by sharing lessons learned from both successes and failures.