Here’s the latest action:

Sony’s CEO takes over presidency – Howard Stringer believes he can run a tighter ship and break down walls between divisions with this latest power grab and reorg. Here he is having fun with Tom Hanks at the Consumer Electronics Show.

Can we really have so many Facebook friends? – The Economist delves into anthropology to judge whether we are really expanding our social circles by broadcasting news about ourselves to virtual strangers.

Google News now runs small ads – Google may run the risk of angering news organizations who feel the company is using their content and stealing ad revenues.

Dell’s net drops 48 percent – Dell used to widen its lead over rivals during recessions. But now the company is hurting from its dependence on web-based PC sales. The New York Times has more.

IBM reaffirms outlook for the year – While rivals are hurting and cutting forecasts, Big Blue says it will hit its targets for 2009. The New York Times has more.

Hollywood producers launch Geon VFX film studio in India – Hollywood meets Bollywood, with producers teaming up to make films such as The Warrior’s Way.

IDC revises 2009 IT spending forecast downward — Guess how many times this will happen this year.

DEMO’s changes reviewed – TechCrunch’s Mike Arrington says he’ll go to the fall DEMO conference if invited. CNET has more.

Reality Digital tries to help businesses “harmonize” social media — The company’s new Harmony platform expects to make it easier for companies to launch social networks.

Rocky Mountain News dies after nearly 150 years — One of Denver’s two newspapers goes out of business. The staffers use Twitter to report on its demise. The Rocky itself posts news of its closing here.

Newsday considers new business model – Newsday says it might start charging people for access to its web site. Uh, it’s a little late for that.

People sometimes ask me why I dislike Microsoft. The answer is simple: I don’t — I’ve just been disappointed with much of what it’s done in the past decade.

This disappointment stems from the 1990s, when I was a big fan of many Microsoft products (and incidentally, could not stand Apple products). But over the past 10 years, I’ve slowly transitioned away from almost everything made by the company. It’s not what I set out to do, it just happened because better products came along — products not made by Microsoft.

And it’s frustrating, because with billions of dollars spent each year in research and development, it’s not like the company doesn’t have the means to innovate and make great products. So what does it lack? The vision? Well, if the video below is any indication, no.

<a href="http://video.msn.com/?mkt=en-GB&#038;playlist=videoByUuids:uuids:a517b260-bb6b-48b9-87ac-8e2743a28ec5&#038;showPlaylist=true&#038;from=shared" title="Future Vision Montage">Video: Future Vision Montage</a>

This video is a clip from a presentation given yesterday by Microsoft’s Business Division president Stephen Elop at the Wharton Business Technology Conference. It shows what Microsoft thinks the world may look like a decade from now, in 2019. (There’s a longer, five-minute version of the video on the blog istartedsomething.com.)

While clearly all of the products in this video are very much concepts, they show a Microsoft that seems to have a vision for the next decade. Carrying out that vision will be a whole other matter, of course, and so Microsoft needs to focus.

And it needs to realize quickly that focus doesn’t include wasting huge amounts of time and money on fights it will never win. Fights like the ones it’s bogged down in with Google for Internet search and advertising, and with Apple in portable media players.

Products like its Surface computer show that Microsoft has the potential to fulfill the promises made by the video above. And if it does that, I’ll have no problem once again using Microsoft products in my life. I’ve said it about Apple before, and the same applies to Microsoft: It’s not about the company, it’s about the product.

Jason Calacanis, the CEO of Mahalo, has some good advice to CEOs who are struggling to keep their start ups afloat.  Rather than keeping a blog, he sends a weekly-ish newsletter - sign up here to get his updates.  I have included his latest post below.  As reference, he is also offering to come in and consult your start up for a day as well as openning his rolodex.

What to do if your startup is about fail (or “Don’t Stop Believing”)

A lot of CEOs with less than 12 months of capital left have been
asking me for advice about what to do, given the massive economic
turmoil we’re facing. I thought I would take the time put these
various conversations into one email to help those who are “up against
it,” as we say in Brooklyn.

Now, sprinting to the startup precipice is one of the most horrible
and exhilarating experiences you can have as an entrepreneur.

The exhaustion sinks in as you slam on the brakes. You dig in your
heels and watch the dirt and pebbles fly off the cliff as your left
foot dangles down in the ravine, with your right foot desperately
trying to save you. Your momentum could–if the wind kicks in–send
you straight down to your death. Heck, even the two inches of earth
under your right foot could give way and send you to your death. Or,
you could slip and fall on a magic carpet that will take you to the
Promised Land.

OK, that last part is made up. You’re probably screwed and you know it.

This email is intended for startup companies with less than 12 months
of cash in the bank, who know in their hearts that their VCs have lost
faith, and that Google, Yahoo or Microsoft aren’t going to pick them
up on a magic M&A carpet ride.

This is the email I’d like you to forward to your friends who are
running startups that could go under in 2009.

Some background
————————-
I’ve been to the precipice and faced the fall a couple of times. I’ve
learned a couple of things from the experience. I can tell you that
the first time it happens, you’re terrified, because everything you’ve
done–all the effort and dreams–will probably be lost (like tears in
the rain).

The second time it happens, you’re deeply concerned, but know it ain’t
over until you’re splattered on the boulders below.

The third time it happens, you smile and say “let’s get it on!”

You see, there are two types of entrepreneurs in this world: real ones
and the folks who play entrepreneurs for some portion of their lives.
>From a distance, most folks can’t tell who’s who. In up times, when
the market is flush with cheap money and unexplained exits (Bebo,
anyone?), everyone looks brilliant.

It’s only when the tide goes out that you know who’s naked. (Who said
that? I hear it on CNBC every other week now).

The differences between the two types of entrepreneurs become clear
when the fan and the manure meet. The faux entrepreneurs run for cover
rather than dealing with the storm. They go back to their plush,
somewhat mindless jobs as VPs at mega-companies, while the real
entrepreneurs suit up and clean up the mess.

We’re going to find out who the real entrepreneurs are in 2009 because
they are going to spend another 12 months, on top of the last six,
cleaning up the mess. It will be two years of total pain, so before we
go any further you gotta make the decision if you’re in or you’re out.

In or out?
————————-
Here is a really easy way to figure out if you can deal with the mess
in front of you. How many of the following can you deal with:

1. Laying off half your staff.
2. Laying off half your staff again three months later.
3. Spending 20 hours a week on the phone being yelled at and
threatened while trying to renegotiate a dozen contracts–like your
T1, phone system, rent, equipment leases, etc.
4. Having an investor scream at you and tell you that they will ruin
you, your career and that “you’ll never raise money again, you mother
f-er.”
5. Laying off half your staff for a third time.
6. Getting served a half-dozen lawsuits, courtesy of the folks who you
tried to renegotiate with in point number three who wouldn’t deal.
7. Having one of the people you’re renegotiating with come to your
office every week and ask for their check in person.
8. Having the same media outlet that once claimed you were the next
Barry Diller write that you’re a fraud.
9. Not getting a good night’s sleep for six months.
10. Having dozens of paying clients default on their bills.
11. Having staffers who you really need to double down and focus walk
out the door after you helped make their careers.
12. Have the people who begged you for a meeting at the peak not even
return your emails or phone calls.

If you can’t deal with these 12 situations, then you’re out. It’s time
to refresh your resume, tell your board you resign, sublet your place
and go to Thailand. Go sit on the beach and lick your wounds for $40 a
day (all-in) like the fauxtrepreneur you are. You suck. I hate you.
You’re smart enough to cut your loses in a way I could never
understand.

If you think you can handle most of the horror above, well, then you’re in.

How do I know this?

Those 12 things–and more–happened to me for over a year when Silicon
Alley Reporter, my first business, got whipsawed by the dotcom bust.
We went from $11.6m in revenue one year to $600k the next. From 70
full-time people to 12. From a 20,000 square foot office to subletting
ten desks at a PR firm.

Personally, I went from being on top of the world, with appearances on
Charlie Rose, 60 Minutes, CNN, and Fox News, to being savaged in the
press as a fraud who got lucky and who no one would ever hear from
again.

My office used to get 100-200 phone calls a day and I had two
assistants. Six months later, I answered my own phone–on the rare
occasions it would ring. When it did, it was either my mom calling to
check in on me or a vendor calling to yell at me.

It was the worst year of my life, but it made me who I am today. I’ve
never talked about the tailspin that my business went into, and how I
barely managed to land the plane, but I get the sense that there are a
lot of twenty-somethings about to experience the same thing, and
perhaps my lessons could help.

I’m not going to tell the story. (That would take 80,000 words, a hard
cover and the right publisher), but I’m gonna share some of the
lessons.

Let’s get to work.

The Good News
————————-
If you’re a real entrepreneur, you’re still reading. If you’re a faux
entrepreneur, you’re writing your resignation letter, considering
which beach to surf and how long to grow your beard. God bless you
fauxtrepreneurs, because you’re gonna have a much nicer 2009 than the
real entrepreneurs who are “up against it.”

Of course, a year from now, the real entrepreneurs will be
battle-scarred beasts who are capable of taking big bold risks, and
you’ll still be crying about what could have been with your last
business while attending back-to-back meetings about nothing at BigCo.
Not that I’m judgmental of fauxtrepreneurs who create noise, distract
investors from the real workhorses, suck at their jobs and take no
real risk in their lives.

No, on the contrary, I love you fauxtrepreneurs, because you create
the foundation upon which real entrepreneurs stand. At the start of my
career, it wasn’t east to stand out, but by the time I’d done two or
three businesses and become a fixture in the technology industry, I
had figured it out: Longevity is a big part of credibility. I met
Esther Dyson, Fred Wilson, John Brockman, Jerry Colonna, Mark Cuban,
Ted Leonsis, Seth Godin and countless other luminaries between 1994
and 1997.

Well, it’s a dozen years later and they still take my calls and
respond to my emails.

Longevity is credibility.

Oh yeah, I almost forgot the good news: People’s reputations are made
in the bad times more than the good times.

Even if you’re 100% sure your company is going to crash in the next
six months, you’ll learn more from staying on board than you will from
running. You’ll also earn the respect of your peers and you’ll learn
exactly how people break down and lose their cool. You’ll see how
certain VCs screw entrepreneurs, you’ll see entrepreneurs screw VCS
and you’ll watch the lawyers and landlords collect their vig the
entire time.

Most of all, you’ll realize who you are and who your real friends are.

So what’s the sitch?
————————-
You need to figure out your runway immediately. This is really easy to
calculate: you look at how much cash you burn every month and divide
that into how much cash you have in the bank. Your accountant can do
this for you or you can simply look at your P&L and bank statement.

Once you know how many months you’ve got left, you’ve got to do the
hard work of trying to extend it by at least 1/4. This means cutting
staff, negotiating with your landlord and cutting any and all
recurring bills. You then need to look at your revenue streams and
figure out if you can double them. In most cases, if you do these two
simple things, you will have increased your runway by 50-100%. If you
double your runway, your chances of figuring out what your business
actually is will go up exponentially.

You also need to do a monthly P&L review with your management team.
Look at every single recurring cost you have and figure out how to cut
it. In an up market, this level of obsessiveness is often wasteful,
because you’re in a race to take market-share. In the case of MySpace
vs. Friendster vs. Facebook all having unlimited funds for a period of
time, this makes total sense. Why worry about $100,000 in server costs
if you’re racing to see who gets bought for a billion dollars first?
However, this is not that time. You have to change your style. There
are times to hit the gas and there are times to conserve your gas.

Look at it this way: Getting the most market-share and running out of
cash is the equivalent of getting to the moon first without the
ability to get back to Earth. Congratulations, you won the race… and
now you’re dead!

My primary business right now, Mahalo.com, is lucky to have raise a
large amount of capital and is going to fairly easily make it to
profitability based on our growth curve, runway, modest spend and
significant traffic (we’re at 5.6m unique visitors over the last 30
days).

We couldn’t be in a stronger position.

However, even we recently did a deep review at Mahalo and were able to
cut 30% of our costs in under 60 days. The company is still growing
just as fast, and in fact we’re actually more efficient. There is
something strange about that: 25-person companies seem to get more
done than 40-person companies in my experience (other CEOs have told
me the same thing).

Perhaps it’s because after you trim down you have the most efficient
folks left, or maybe we’re all more focused because we don’t have to
communicate what’s going on to as many people? Does anyone know if
there is any research on optimal team size for startups? I’d be
interested to hear what the studies say. Anyway, we made the hard
decisions and that extended our runway by a year. That means Mahalo
will be here in 2013 if we make every single wrong decision and we’re
asleep at the wheel. Of course, we’re focused like lasers on getting
to profitability and developing a really helpful service. If we can’t
figure this business out by 2013 or 2014 then, well, either we really
suck or there is no solution to combining search and knowledge
exchange (of course we know search and knowledge exchanges can and
have worked–so we’re bullish).

Also, when your company goes through this kind of economic boot camp,
I think you get stronger. You understand which parts of your business
are working the best and which ones are, well, not working at all. We
had one area of our business that was two percent of our spending
making 30% of our revenue. You figure these things out when you start
cutting. It’s a sick and sad process to be sure, but Darwin is your
friend at a startup.

Put your VCs to the test
————————-
If you’re running out of money, you’ve got three choices: cut costs,
make money or raise capital. We’re going to get into cutting costs and
making money below in a minute, but I’m a big fan of testing your
investors. When the market is crushed, most VCs get realistic, greedy
or paralyzed. You’ve got to figure out where you stand with your
current investors as quickly as possible, and the quickest way to do
that is to ask them for more money.

Let’s say you’re burning $200k a month and you have a million dollars
in the bank. Go to your VCs and say something like the following:

“John, we’re going to run out of cash in five months. I’ve developed a
cost-cutting and revenue-generating plan that I believe will extend
our runway to 10 months. I’d like to present it to you and your
partners tomorrow for a half-hour with the goal of doing an ‘A+ round’
of one million dollars. I truly believe in this business and I’m
willing to do a flat-round, bust my ass for the next two years and
come out of this recession on top.”

Now your VC is probably going to start asking questions–as they
should. They may try and push off the discussion of the “A+ round.”
Your job is to stand firm and say something to the effect of:

“Well, we’re both vested in this business and I’d like to take the
time to present to you guys this week and get a response from you
either way within five days. I know it’s a compressed time frame, but
we’re living in extraordinary times, and if you guys don’t believe in
the business the way I do, I can accept that and make other
arrangements.”

At that point, you say nothing. Silence is the greatest negotiating
tactic ever created–use it. Your VC right now will be thinking the
following:

a) “This guy/gal’s a real killer and I wish all my CEOs were this
focused. At the very least, I should hear them out.”
b) “This guy/gal has another opportunity, so I’m gonna have to deal
with this train wreck myself–that will suck.”
c) “This business is a dog and I shouldn’t have invested in it. Since
they’re asking for the truth, I might as well give it to them.”
d) “I’m an idiot and I can’t make decisions. Let me push this out a
couple of weeks and make this person’s life hell while I
procrastinate.”

That last part is not what the person would actually say, but that’s
basically the translation of “let me think about it.”

Now, in cases a, b, and c you’re in good shape. You’re gonna either
get your meeting and money or you’re gonna get told you’re not getting
any more funding. Situation D is what you don’t want. If you’re
running out of provisions in the middle of the Atlantic, your best bet
is to go either East or West–not in a circle.

VCs and investors will sometimes send entrepreneurs in circles, either
inadvertently or as leverage. Sometimes VCs are juggling a lot of
balls and can’t focus. Sometimes they’re inexperienced and/or they
have issues that don’t concern your business, like their limited
partners, their partners or their divorce settlements. Sometimes
they’re cutthroat and know that, when you’re down to your last two or
three payrolls, they can extract a 2-3x liquidation preference out of
you.

It’s your job to force the issue now–don’t wait.

Heck, even if you have a year’s worth of runway, you should probably
do this kind of thing so your VCs know you’re the real deal and so you
know where you stand with them.

Put your staff to the test
————————-
If you’re down to six months of cash, you’re gonna have to cut the
bottom 1/3rd of your staff, if not half. This sucks, but there is no
choice. You’re gonna also have to cut salaries. So, here are some
suggestions on how to do this:

1. Get rid of the non-core staff. Look in places like PR, marketing,
and admin to cut. See if you can put some of these folks on part-time.

2. Look at the salaries of your current staff vs. market and look for
ways to cut the high-priced ones who you can get cheaper at the
current market. I know this sounds cutthroat, but remember, this is
advice for folks going out of business in six months. Another way to
run this test is to ask yourself “Would I hire this person for this
amount today?”

3. Go to each member of the team who is over-paid by today’s market
rate and tell them that you’re probably going to be cutting their
salary and that you’re increasing their options. Ask them how they
feel about it. Some people can take a pay cut, others can’t–you don’t
know until you ask.

I’m really against cutting people’s pay above cutting position because
you want the people remaining in your organization to be happy. Of
course, sometimes that’s just not realistic. Many CEOs overpay in a
hot market because they feel they have to, and those folks are the
ones who really need to take this hard action now.

Put your landlord to the test
————————-
Call your landlord and ask them to get a cup of coffee. Do this in
person. Let them know that it’s 50-50 you’re going out of business and
that you need their help in the form of four months free rent,
starting today, the ability to sublet some space (if you don’t have
that right already) and to keep the rent at the same rate you already
have. Tell them you feel horrible about this, and you wouldn’t ask
them to do this if it wasn’t urgent, but you didn’t want to drop the
bomb on them five months from now when there were no more options.

Remember, silence is your friend. Tell your story and see what they
say. I did this at one point and not only got free rent, I got 50% of
our letter of credit freed up. It was a win-win. Trust me, your
landlord is probably facing a LOT of fallout right now… better to
get half than nothing.

Put your vendors to the test
————————-
Since you’ve probably got webhosting, CDNs, equipment leases, and
other recurring charges on your credit cards, cancel those cards
immediately. Call up each vendor and tell them you need six months
free while you figure out your status, and if they can’t do it, ask
for suggestions. Then call each of their competitors and let them know
that you are willing to switch over for the first six months free. If
you get one of four vendors to do this you just saved 25%–I bet you
can get two or three.

Vendors would rather eat some profits for six months than lose your
business. If they can’t support you in your time of need, then you
should find someone who will. There is a LOT of competition out there
and you can negotiate harder than you probably think you can. Tell
vendors you’re willing to switch if they give you six months free and
see what they say. We’ve had folks offer us a *year* of free service
to switch (of course, that’s an exception, not the rule).

Put yourself to the test
————————-
If you’re going to ask so much of your staff, investors and vendors,
you obviously have to take a hit yourself. Go to your VCs and ask them
to participate in the next round–the A+ round. Tell them you know
it’s not a lot but you want to put in $5 or $10k in the round as a
show of support. This will result in them saying it’s not necessary.
After that, tell them you’ll sell your car and take a bike to work and
put $20k into the business if you can get that for your car. Make sure
your staff doesn’t take a bigger cut than you do in salary if you’re
doing salary cuts.

Even if it’s just ceremonial, it means a lot to make cuts. I’ve
stopped traveling as much to conferences even though they cost me
little to nothing (normally people pay me to speak or at least pay for
my travel). Of course, don’t cut traveling if you’re going to
conferences where you might find clients or investors (which is why I
travel half the time!)

Put your product to the test
————————-
As Mark Cuban told me over and over again, “Sales solves everything.”
If you can’t sell your product, it’s not a product–it’s a hobby. Take
your consumer service and sell it as a software package to someone. Go
on the sales calls yourself. During the final year of Silicon Alley
Reporter I made cold calls and set up lunches to sell folks on our new
product, Venture Reporter (the rebranded Silicon Alley Reporter). It
works. When people see the CEO making sales calls, they respect the
company and take it seriously. When the VCs and staffers see you doing
this, they get inspired.

Put a whiteboard up and count any stat you can: sales calls made,
meetings scheduled, contracts sent and sales closed. Give your team
something to think about other than just the bottom line, because you
might have to celebrate the little victories before getting the check
in the door. Celebrate getting the meeting. Celebrate sending a pitch
out.

What to do if it’s over
————————-
If you’re going to hit the wall, you should do so with three or four
months of capital left in the bank. You should cut down to your core
staff and tell them “we have 120 days of cash left and we’re going to
try to land the plane safely. If you want to leave at any point during
the 120 days you’ll get the reference of a lifetime from me. If you
help us land the plane safely I think we’ll all be better off because
of it.”

Then make a plan to do one of the following:

a) sell the business
b) close the business
c) sell the assets of the business

There’s a little bit of overlap up there, since sometimes you close
the business and sell the assets, or you sell the assets and leave a
shell behind. The point is, don’t wait until you have a month left. Do
it when you have 120 days left. If you signal to everyone it’s over,
you’ll have done the honorable thing for your employees, by giving
them the maximum time to have a safe landing, and for your investors,
by allowing them to roll the business or its assets into another
company.

The worst thing to do is to delay this process. I’ve gotten down to
this point exactly, but when I was at break-even at my first business,
we looked for a buyer, because I didn’t think we had much chance of
making it on our own in the 2001-2002 market. I could have been wrong
about that in retrospect, but either way, I’m glad I got out because
it set me up for Weblogs, Inc.

And that is the final lesson: when one door closes, three more open
up. When you shut down your business properly, you will have a clean
slate and renewed energy to take on your next project. You might even
get the investors to give you the company with the 90 days worth of
capital left to start your next project with a recapitalized
structure.

Remember that there is no shame in failure but there are honorable and
dishonorable failures. If you’re going to lose the game, remember that
it’s just that: a game. There will be another and another and another
yet to play. Don’t lose your cool and don’t get depressed. Just get
yourself back up, dust yourself off and get back in the game. The
precursor to success is almost always failure.

[ To the 17 folks who made it to the bottom: If you're struggling with
failure right now, if your business is failing and you don't think you
can go on, remember that at the very least you've been lucky enough to
take your shot. That's more than most people get. You're going to be
much stronger for getting through the heartbreak of a failed business.
Also, you've always got me--your pal Jason--if you need a shoulder to
cry on. I'm only an email, tweet or IM away jason@calacanis or
jasoncalacanis on skype/twitter/AIM. ]

Related posts:

1. Entrepreneurship 101: Startup Do’s and Don’ts Will Price of Hummer Winblad summarizes an interesting session at the University...
2. DFJ Invests $7 Million in Stealth Startup Zon networks   Ofer Vilenski & Derry Shribman, the two entrepreneurs who previously sold Jungo to NDS...
3. Top 20 Entrepreneurial Startup Resources (Europe) In times like this, a startup should leverage any help...

Related posts brought to you by Yet Another Related Posts Plugin.

This is interesting, how the move to low cost commodity technology, in this case Linux, has resulted in the potential for far less privacy and data security.

There’s a lot of useful stuff available for the eavesdropping. Email, raw newsfeeds, entertainment broadcasts, government communications and so on. All this is an open secret in the geek world, and governments are trying to get the satellite communications companies to improve their Linux security, encrypt transmissions or, preferably, both. In the meantime, intel agencies so inclined, are wallowing in new data.

[From Intelligence: The Linux Connection]

One of the most interesting features of the Kindle 2, Amazon’s new version of its overpriced eBook reader, is its text-to-speech option for content. This means your Kindle can read aloud any book you buy on the device — something which the Author’s Guild didn’t look too kindly on. You see, its authors’ hold special rights for the recordings of audiobooks based on their works. Of course, this feature isn’t the same thing an audiobook, but that didn’t stop Amazon from backing down today.

Amazon will now let authors choose on a title-by-title basis if the text-to-speech functionality will be enabled. It announced this move in a release that starts with the sentence: “Kindle 2’s experimental text-to-speech feature is legal: no copy is made, no derivative work is created, and no performance is being given.” While it stands to reason that this is legal (after all, you have this same text-to-speech on any computer), Amazon clearly didn’t want to upset the group that provides it with all that content.

Contrast this with the way Apple is said to negotiate with the music industry — that is, its way or the highway. Though, to be fair, it finally did cave into the industry’s demand for a three-tier pricing structure for iTunes, which should go into effect shortly. Of course, the music labels had to use perhaps their last big bargaining chip to get that: DRM-free music.

Amazon also says that given the choice, many publishers will choose to leave the text-to-speech option turned on, saying “we strongly believe many rights-holders will be more comfortable with the text-to-speech feature if they are in the driver’s seat.”

I know that if I were an author I’d be fine with that feature. Having heard it in action, I can’t imagine anyone is going to listen to an entire book with that odd computer voice — it’s like HAL 9000 from 2001: A Space Odyssey minus pronunciation skills, reading to you. Instead, readers are likely to use this feature to supplement their reading experience. For example, if they have to put a Kindle down for a short period of time. Or, it’s obviously also very useful for disabled users of the Kindle. I’m not going to suggest that the Author’s Guild doesn’t care about them, but I’m not sure they’re putting those users ahead of the fear of lost audiobook sales.

This year’s Greener Gadgets conference, hosted today in New York by the Consumer Electronics Association, showcased a range of cleantech concepts and devices. Featuring speakers from BusinessWeek, Intel, Dell, TreeHugger and Panasonic, the event culminated in a competitive design contest.

While there were a handful of truly clever entries among the 50 finalists, it was disconcerting to see how many of them were based on imaginary technology and bad science. And many only gave the slightest nod to the contest’s primary instruction to “seek ways to minimize the environmental impact of consumer electronic devices at any stage in the product life cycle.” In the end, the panel of jurors succeeded in pulling out three relatively eco-friendly products for its winners’ circle, and one impromptu runner-up.

The hands-down favorite of both the judges and the audience was the Tweet-a-Watt energy monitor developed by Phillip Torrone and his team from Make Magazine. Conceived as a gadget mash-up of the popular Kill-a-Watt energy meter, a ZigBee wireless data module and an automated link to Twitter, Tweet-A-Watt allows any electronic device to broadcast its daily energy consumption directly to its user’s Twitter account (see video below for a demonstration). While the open-source device does not inherently save energy itself, it certainly promotes awareness. As one of its creators remarked, if everyone could see everyone else’s energy habits, it wouldn’t be long before either peer pressure or people’s natural competitive spirit began to modify usage patterns.

After a tough race between three similar entries, the second place prize went to Power Hog, a combination piggy bank and coin-operated power meter that rations out energy for televisions, appliances and video games through a switchable plug that is activated by depositing money in its slot. The gadget is meant to sensitize young children to the costs of energy, ideally discouraging waste.

Third place went to a completely non-electronic design — a wall-mounted indoor drying rack for clothing. Constructed out of eco-friendly materials and sporting a sleek, utilitarian look, the folding rack contains absolutely no electronics but still managed to be one of the best examples of appropriate and sustainable technology in the contest. The goal behind it is to cut down on household use of dryers, one of the most expensive appliances to run.

In keeping with the low-tech theme, the Laundry Pod, a compact, manual laundry machine, was awarded an impromptu honorable mention. Based on the salad spinner, it provides an energy-efficient alternative to washing machines and laundromats for delicates and small loads of laundry. The pod narrowly edged out the Blight solar window blind system, which has photovoltaic cells on one side of its blades and a solid-state lighting system on the other.

Even more interesting than the competition’s winners were the entries that didn’t make the cut. Among the more bizarre submissions was a mattress equipped with a pizeo-electric energy harvesting system capable of drawing enough power from rapid body movement to charge a cell phone (or perhaps a more personal device). A close second in the off-the-wall category was the RITI Printer, a hand-powered hard-copy output gadget that uses filtered coffee and tea dregs as its ink supply.

Unfortunately, some of the more practical and innovative entries failed to capture the imagination of the judges. Several of these tackled the problem of electronic material waste with unconventional casing designs — like the Recompute cardboard computer. Unlike so many of the other Greener Gadget contestants, Brendan Macaluso actually built a working version of the Recompute. Its sturdy corrugated cardboard case houses a full microATX motherboard, power supply, and a full complement of I/O connectors. Easily modified for upgrades, it can also be recycled as needed. (See the video below.)

Among the other hidden gems at the competition was the Zeer, a chilled vegetable keeper modeled after smaller devices that have been used in Africa for over a thousand years. Designed to look like a standard kitchen counter storage unit, the cooler uses nothing but a weekly-replenished water supply to provide the ideal temperature and humidity for keeping fruits and vegetables fresh. A home outfitted with one of these could opt for a much smaller refrigerator that would eat half the power of the humming monsters that lurk in most American kitchens today.

Here’s a short demonstration of winner Tweet-a-Watt:

Greener Gadgets Design Competition from Jennie Bourne on Vimeo.

Video produced by Jennie Bourne / Bournedigital.com

Sony chief executive Howard Stringer shook up the ranks today with a management reorganization. He took over the president’s job held by Ryoji Chubachi and instituted other changes. The idea was to give Stringer more power to change things inside Sony, which is losing money and laying off a lot of people.

But Stringer has taken his top game executive, Kaz Hirai, and given him a promotion so he oversees not only the PlayStation business but also the Walkman business, Sony Media Software and Services, and the Sony Vaio business (that is, Hirai will be the boss of Kunimasa Suzuki, who runs Vaio).

As executive vice president of the new Networked Products and Services Group, Hirai will continue in his role as head of Sony Computer Entertainment, or the games business. The idea seems to be to wipe out management layers and increase cooperation between Sony’s notorious warring divisions.

But Sony is walking on dangerous ground. In the past, former game chief Ken Kutaragi got a promotion that allowed him to manage a bunch of Sony divisions as well as games. Then Sony got into trouble, running into delays in the design and launch of the PlayStation 3. Sony went from first place in the games business to its current third place. Hirai stepped in after Kutaragi retired, but he hasn’t been able to change the situation.

It’s good to get executives cooperating with each other. But it’s worse to weigh down an executive with so many responsibilities that he or she doesn’t have time to focus on games. Microsoft has a similar problem, with Robbie Bach overseeing its Entertainment & Devices Group. But Bach can rely on Don Mattrick, who runs the game business on a global basis. And at the other extreme, Nintendo does nothing but games, with Satoru Iwata, a gamer and game developer himself, running the whole show. Perhaps it is no coincidence that Nintendo has the leadership of the game industry now.

Intel and Taiwan Semiconductor Manufacturing Co. are expected to announce an alliance on Monday. The details aren’t available yet, but it is surely going to be interesting to see how the world’s biggest chip manufacturers work together.

Intel’s PR folks sent out invitations for the Monday announcement today, and the press promptly turned around and reported it. Taipei-based TSMC is the world’s biggest chip foundry, or contract manufacturer. It enables chip design companies to focus on designing chips, while TSMC manufactures them. In that sense, TSMC enables competitors to Intel.

Intel makes most of its own chips, though it sometimes strays into buying chips from foundries, thanks to acquisitions. I would expect that to continue. In the recession, Intel may have too much capacity on hand and may want to turn it over to TSMC. Intel probably has some older factories it wants to get off its hands, but TSMC may not want them. Intel might also be licensing its advanced manufacturing technology to TSMC, but that’s Intel’s secret sauce and seems unlikely. And Intel has already said it is spending $7 billion on chip factories despite the recession. We’ll see what happens.

Here’s a ridiculous story for a Friday afternoon.

Swiss banking giant UBS placed a $31 billion, or 3 trillion yen, order for convertible bonds in the Japanese game publisher Capcom. The deal would have been the biggest ever on the Tokyo Stock Exchange, if only it were the real thing. Turns out, UBS apparently placed the order by accident, due to a computer system error. The real amount was supposed to be 31 million yen, or $314,000.

The Capcom folks seized upon this with glee, saying on the official blog, “The official Capcom happy-dance began when we heard that financial titan UBS AG placed an order for 3 TRILLION yen (that’s 31 billion bucks!) in Capcom stock yesterday. We were unfortunately forced to reveal that there, um, isn’t ¥3 trillion worth of Capcom stock for sale, so they revised their order to a measly ¥31 million.”

The funny thing is that Capcom is about to have a hell of a year. The company just launched Street Fighter IV and earned some glowing reviews, with the Metacritic (aggregate review score) coming in at 93 out of a hundred, which is pretty close to universal acclaim. And Capcom is about to launch Resident Evil 5, one of the most anticipated games of the year, on March 13. UBS apologized for the error.

Ethnic networking is big in Silicon Valley. Indian professionals have The Indus Entrepreneurs (TIE); and the Chinese and Taiwanese have their pick of the Hua Yuan Science and Technology Association (HYSTA), the Asian America Multi-Technology Association (AAMA) and the Monte Jade Science & Technology Association.

Now there’s the N! Leadership Network, a new group for Japanese Americans and Japanese nationals to connect in the business world. Recently founded by Michael Kanazawa, chief executive of consultancy Dissero Partners, the organization aims to boost the number of Japanese Americans in professional leadership roles.

Kanazawa (right) says he hopes to expand N!’s circle of 50 members beyond California to create a prestigious business network, and perhaps even influence U.S.-Japan business ties. “Our intent is not to create a large-scale networking group,” he says, “but rather a deeply connected group of people who have quality interactions.”

Kanazawa says there is “a real shift in the profile of Japanese American leaders who are building leading companies and serving as role models for leadership.” He cites Ko Nishimura, who built electronics manufacturer Solectron from a $90 million company into a $19 billion company in a decade before it was purchased by Flextronics, and former Lockheed Martin president Sam Araki. In the military realm, U.S. Army Gen. Eric Shinseki has represented well, showing “strength of conviction in the face of significant pressure,” he says.

At a gathering Thursday night at Wilson Sonsini Goodrich & Rosati, N! members hailing from tech corporations, startups, law firms and consultancies ate sushi and listened to Japanese American CEOs talk about their careers and management styles. Most said their cultural values regularly influence their decision-making in subtle ways.

Ryo Koyama, (right) chief executive of remote software startup Yoics, immigrated to California from Japan when he was just three years old. His father, a technologist at Sun Microsystems and Raytheon, and his mother, who came from a Japanese political family, raised him in a traditional fashion.

In the rapid-fire tech world, where outspoken and risk-taking executives are admired, Koyama said that he never aspired to be a “crazy CEO,” for fear of embarrassing his family. “As a Silicon Valley CEO, you want to be a rock star,” he said, “but at the end of the day, that’s not what it’s really about.”

Recognizing the obstacles that stand between many of his peers and success in this environment, Koyama explained that “a Japanese upbringing is diametrically opposed to being an entrepreneur. Japanese culture is about fitting in.” By contrast, a hard-charging entrepreneur must break from the pack, take a good look at himself and “do things differently,” he said.

Lance Tokuda (right), co-founder and chief executive of widget company RockYou is a Hawaii native who said he was shocked when he moved to mostly-white Colorado to start his career. “I thought, ‘Where are all the Japanese people?’” he told the audience.

Tokuda said that “the whole idea of being a CEO freaks my mother out… She’s always worried about the company.” But his early success and generous salary have helped alleviate her fears. “It’s all about succeeding and taking chances,” he said.

Tokuda added that his Japanese background didn’t hurt him in dealing with SoftBank founder Masayoshi Son. “He said I’m Japanese, you’re Japanese, we have to make a deal,” Tokuda said. Last year, SoftBank and SK Telecom Ventures announced a $17 million investment in RockYou.

Jeff Maruyama, chief executive of the i-Hire recruiting firm, said that his father and Japanese relatives taught him the value of genuinely respecting his employees, even when they make mistakes. He is also acutely aware that every decision he makes affects the well-being and livelihoods of workers and their families. “I want a corporate culture where we treat others the way we want to be treated,” said Maruyama, whose firm consults for AT&T, Apple and others.

Despite the lessons and connections their shared heritage has afforded N!’s members, Kanazawa says the association’s goals fit into a broader strategy. As more companies scale globally, and risks and rewards grow accordingly, “knowing how to relate and work with multiple cultures will be a tremendous asset,” he says. By giving the Japanese and Japanese American business community a solid foundation, the idea is the network will open doors to cross-cultural partnerships as well.

Ed Iwata is a former USA Today staff writer who covered venture capital, business diversity, white collar crime and other topics. He is now authoring a book called Fusion Leaders (Jossey-Bass/Wiley, 2010) and he writes the blog, Cool Global Biz, on businesses, globalization and diversity.