And hear us

Metz France this is Georgia Tech Atlanta.

Can you see us and hear us.

Good morning everyone.

If we could get everybody to come in and

take their seat would like to
get started with our lecture.

Please come on in and

grab a seat in the back.

Good morning.

My name on the chair of this
very happy to welcome you

all here to our annual name
lecture this year teacher

Corp at a technology

corporate event was established with
generous support care for many of us.

No one from Georgia Tech could not be here

today to share a few highlights about
career and service to Jordan that

Helen currently lives in
Adelaide Australia South Australia

where he leads the arbiter
Hospitality Group which owns and

operates luxury retreats in the wine
region of the vineyard there was

a there before that he spent
sixteen years as the founder and

chairman of aspect
communication corporation and

at the Institute and

the integration of
the integration of research and

education as well as this thing with
lecture series who were grateful for

his support of the lecture where
we have top industry leaders share

their real world experience of
the latest technology with our Backley I

mean we can continue that tradition
today with our speaker Bill Sullivan.

He's been president C.E.O.
of technology since two thousand and five.

President and Chief Operating Officer.

In one nine hundred ninety nine
spun off the hacker he was named

senior vice president and general
manager of actions in making a product.

In one thousand nine
hundred eighty six and

during the course of his career developed
several expertise in telecommunications

communications and computing he received
B.S. degree from the University of

California Davis where the Bay Area for
folks that they've insights.

And serves on the board of
directors of corp Cisco

and government in Bill.

Of her.

Well thank you all very very much for
this opportunity to speak to all of you.

I know a moment I'm going to
talk a little about Agilent.

Least our view of the mega trends
facing us into the future and

a little bit about what I think is so
important for us as a country for

institutions such as George attack
to help continue to grow and

ensure the citizens of the U.S.
can continue to prosper.

But hard to believe that over
forty years ago I sat where many

of you are sitting today.

I am in my last job and my life I
never would have guessed over forty

years ago that I would be
standing in front of you.

So I will give you one little
hint that as hard as you work

a little bit of luck really helps.

I can remember back in the sixty's in the
beginning of the environmental movement

and my own particular passion about
the environment I went to U.C.

Davis College of Agriculture and
actually got about first in science

environmental planning and management
in this whole environment area and

a bunch of my classmates went into
the Environmental Protection Agency and

I did something that in
hindsight was pretty good.

I decided to head to New.

You are a lens and to go have some fun
before I started getting a real job.

And that's why I learned
a construction trade

living in the French Quarter in
New Orleans after I got out of school.

So that started a journey for
me that in fact.

Has been incredibly exciting
it's been a journey of learning.

And when I sit back and reflect and when
I came back home to California I had to

get a day job you can only live us so
much.

Basically you do need an income this
company name you'll have Packard hired me

and I was going back to school the time
went back to the years of electronics

education and I got hired on the weekend.

Packard to grow gallium arsenide
crystals that were eventually

made into light emitting diodes that went
into the H.P. thirty five calculator.

Now most of you have a blank
stare What is the H.P.

thirty five calculator because many of you
don't even know if ever seen early days

in a calculator much less the way they
invented the first calculator and

it's a story it's a very
famous story about building.

The first desktop calculator
was there he says sounds great.

I want to be able to put it.

My pocket.

And that's what leaders do they have
a vision they know it can be doable and

the team in your package shrunk the
products they got into the light emitting

diode business because no one else
can make those displays you need to

have a solid state display to go
into these first calculators and

that's how I started a deal with Packard.

And and what's interesting over the course
of that period of time the ability

to work in research and development
to be able to work in Singapore and

obviously now in general management has
been a wife time of learning and change.

And so often in my any coaching leave
with you is how hard you're working here.

What will happen in the decades.

It's so hard to predict but you're
building a foundation in one of the best

schools in the country the best
schools in the in the world to.

Build a foundation of learning and
I'll give you one secret I was an R.

and D. manager in Tronics and
then I was given the whole I.C.

design team to basically do
the conversion the digital optics and

back and forth and I looked around I
went around the team that I inherited

I said What school did you go to what
school did you go to guess what happened.

School all came out of Georgia Tech so
rallied decades and

decades ago very very familiar with
the quality of students the quality of

applicants that Agilent had the pleasure
to have join us over the over the years.

So to talk a little bit about the journey
that you talk you never know what's going

to go half happen over
the last thirty four years.

H.P. did separate Agilent separate from
H.P. in one thousand nine hundred nine and

is made you know you and Packard
originally was a measurement company and

we had difficult two thousand and
nine with the downturn but

we have sixteen thousand
employees focusing on measurement

science in one hundred ten countries and
today seventy percent of our business is

outside the United States shows
how global the world has become.

And Ulick Packard started as
electronic measurement company

it is still the largest part of our
business at two point four billion dollars

Again you are very very familiar with this
from our E.T.A. design tools from spectrum

analyzers network analyzers a soulless
coax focusing on communications

industrial and like Tronics but
in reality thirty five years ago.

You'll Packard made a decision that we're
going to if we can measure photons and

electrons let's measure
chemical properties and

so that's where we moved into that market
mostly gas and liquor chromatography

focusing on petrol chemical food
safety environment forensics and in

the last seven years we have been really
focusing on life science measurement

life science is actually the largest
measurement opportunity in the world.

Eighteen billion dollars actually it's
twice as big as the communication

market in terms of tool sets
required moving forward and

as you can see the company now is almost
fifty fifty between what we would call

analytical measurement tools versus
like tronic measurement tools and

we're in the process in the last days
of closing the acquisition of Varian

which is a sixty seven year old
company inside of Silicon Valley.

We will now have more analytical
measurement versus like

tronic measurement.

We believe we are uniquely positioned to
be able to bring the world of physics and

electronics and engineering to
chemistry to biology moving forward and

it was so much fun today not only meeting
with the engineering teams in the computer

teams was the bio engineering
that's going on here in Georgia TAC

that is really also bringing
these disciplines together

because I'm absolutely that
these disciplines will be key.

Not only for an agile in company providing
the measurement tools for discovery but

also for many of you as you go into
industry or in stay in academic academia

to be able to really be able to make
innovative contribution moving forward.

So again just kind of shown again
a lot of you in here know that

in the upper on the upper left
hand side of the slider the four

basic instruments that are use in
engineering like tronic discovery.

Those are the tools and of course there's
lots of software that goes along with that

for the tools down below for food
safety as an example are called gas and

liquor chromatography a mass
spectrometer and basically what we do is

take the take the molecule ionize
it send it down a vacuum and

he hits a full to multiplier to calculate
the atomic weight based on that you can

determine what is what are the molecular
structure of the sample that you're in.

So how many of you had
fish in the last week.

So that's pretty good use is not
what I went to school as spam.

So a burger.

So things are things have got a lot.

Better.

How do you know what you're a counterfeit
food is just an enormous issue

that I'll talk about moving forward and so
this whole issue of food safety and I'll

talk about it in a moment environmental
testing is obvious the water issues.

The food issues forensics how many of you
ever see the equipment in the back we

say the mass and all I kind of stuff that
they do that test in about ten seconds.

Fortunately doesn't takes a little
bit longer than a commercial.

But another last in
the background happy T.V. shows.

You'll see our equipment happy shows
you'll see one of our competitors but

you can see that all of these measurement
tools and again going into life science to

understand what is the causes of disease
what can we do to prevent disease

what can we do to treat disease is in
fact a huge measurement challenge and

obviously discovery part of that is
really what makes the breakthrough and

I'll give you the hint.

After all these years I get more and more
excited about the advances in medicine.

Many of his remark and
think about it now but

as I get older I must admit if they
can in fact deal with diseases

the opportunity to extend life to extend
the quality of life is just enormous.

And I always reference one of
the professors up in MIT Rick Young gives

a talk about death as a curable disease
and he says a human should be able to live

to two hundred fifty years all and it will
be a real honor for me if I can be here.

A hundred ninety years from now to be
able to give this talk again because I

know a lot will change.

Unfortunately I don't think
that's going to happen.

So what do you do when you think
about this as you go through and

you think about your career.

OK when I get out of Georgia Tech.

I have a degree where
am I going to work and

a big challenge of course is water
the mega trends that are moving forward.

I'm not going to talk about
communication you know that very very

well this whole ubiquitous communication
wireless devices essentially

everybody will have an IP address.

You're all and many of you are very
much aware of that activity but

there are a lot of additional megatrends.

I believe engineering electrical
engineering bioengineering can be applied

against and that's one of the challenges
that we have is a measurement company and

again the world's largest measuring
company is what are these mega

mega trends.

So that we can provide the measurement
tools for scientists engineers researchers

to do the next generation the next
discovery moving forward and

if you just look at communication
today with L.T.E. long term evolution

an enormous amount of challenges in
terms of it to attend architecture.

What do we do be able to provide
tools to be able to allow

researchers to really be able to
discover had affectively how to

how to improve the bandwidth
to mobile devices.

So I'm going to talk about a couple
trends that are big impacts big impacts

on companies and
big impacts on the U.S. So

first of all courses
the emergence of China in Asia.

This is the biggest economic
disruption since World War two This

is a big big deal.

I can remember when I was in
school the late sixty's and

seventy's was the emergence of Japan and

people actually at that time had predicted
the Japan would be a larger economy than

the US that projection in fact could never
be true because they didn't have enough

people I mean back then Japan had
roughly one hundred million people.

The U.S. had you know a little bit
over two hundred million people and

as well as Japan has done well ultimately
to grow economies you've got to

be incredibly productive but
you do need to have a lot of

workers right I mean productivity
is basically output of countries is

the multiple of the number of people
in the productivity of those people.

China at its present rate and
given its size will in fact pass the U.S.

sometime passed the year two thousand and
forty.

And so as a result of that
a huge impact of the shift of

economic power economic
distribution around the world.

The U.S.

today is still twenty five percent of
the world's economy after World War two.

Of course after the war where
countries in Europe and

Japan were decimated had a much.

Higher percent.

I think that this is not a zero
sum game that yes the U.S.

percentage of the world
economy will decrease and

maybe by the year two thousand and
forty you'll be in the twenty percent.

But what is happening is the overall
world economy is growing so

as you get more and more people
with higher standards of living.

There's an additional opportunity but
there are different opportunities for

countries such as ourselves and
if you just look at what we are doing for

us to be able to compete in Asia and
again we in fact moved into and

had our first operation Japan in
the late sixty's in the seventy's.

I was the last American to run our
semiconductor components operation

base and
Packard we've been in Southeast Asia.

Since the seventy's and Packard in fact
had the first joint venture in China for

a high tech company in the eighty's and so
we have a very strong presence in Asia and

see what happens.

Thirty six percent of our
sales are already in Asia

thirty four percent of our research and
development we have huge research

facilities in Beijing in
Bangalore India in Shanghai.

Forty two percent of our sales
organizations were buying companies were

customizing companies.

So now is this to say there's not going
to be jobs in Agilent not jobs in America

moving forward.

Absolutely not.

That's not true.

We're going to have lots of jobs but
that jobs and the type of jobs change

dramatically because for companies
such as agile and to compete in Asia.

You have to look as Asian as possible.

We are new country manager in
China is in fact is in fact of

Chinese born not an ex-pat not a Chinese
American that we would put over into

into Beijing to manage our organization
that's the type of transformation

in that of course for many of you that in
fact aren't U.S. citizens and may go home.

The way that you think about R. and D.

The way you think about business and
markets completely changed.

Talk a little about that later second
issues is food safety I talked about fish

and how safe it is only one and a half
percent of food in the U.S. is tested.

Yes there's the analytical measurement of
food but what can we do to get sensors

out into the agricultural farms What
can we do to get sensors into villages

in India's out into the rural areas
into China enormous computational issue

I know we're talking to people at other
networking companies is it can we put

sensors out into some of these
rural areas to be able to identify

pathogens try to catch it at its source
before it gets in the food supply or

how do you stop situations where melamine
was put into infant Malchen China to cheat

the protein test and in fact had a very
very negative consequences for infants.

So there is just enormous issues in this
area that is not only a biological or

chemical problem but I would also submit
a huge opportunity in like Tronics in

computation when finally just
another one infectious disease.

It's pretty scary the leading death
of people less leading cause of death

of people less than fifty years old is
infectious disease with transportation

the whole issue a SARS swine flu
epidemics this whole issue of infectious

diseases spreading around the world
rapidly is a real problem.

Actually the country and
ones in when the virus started in

in Mexico the reaction
was very very swift.

But you can see the world community is
trying to figure out how to identify this.

What is the genetic make up of these
types of bacteria are what these types

of virus how do I get
a vaccine into place.

How do I distribute it.

How do I from a communication standpoint
understand where breakouts are.

From Dany fever I was a member and

Sam Paulo one of the one of these
groups that we have sponsored.

We're trying to map electronically through
networks where we're gang the fever

because what's going to
happen during a fever for

example you say we're going to spray
somewhere where when you spray we spray

a whole city of ten million people or
you find exactly where there's an outbreak

of malaria dengue fever with these
mosquitoes and you spray there.

And so
they get enormous issue of computation and

communication to be able to deal
with these types of issues.

So what's that mean for us and again very.

You know again this is a great
university it's a US university

that what are we doing as well
as educating our citizens and

attracting people from other parts of the
country to be able to be educated here.

But what's that mean.

And I would submit to you is that
the discussion needs to be about the mega

trends of the future.

I often talk about they said Bill how come
you don't do as much manufacturing left in

the in the U.S. and you saw we do forty
five percent of our manufacturing in Asia.

Well throw some pole.

If you want to win in emerging countries
you've got to be there and it's just

more than sales and sales it's marketing
it's R. and B. it's manufacturing.

Secondly the cost of
manufacturing has dramatically

been reduced with the emergence
of countries that

have a far lower pay scale than we
do that is just the reality of it.

When the average pay in
the US is ten fifteen

twenty dollars someone else is going
to do the same job for two dollars.

Any capital company in the world
will in fact leverage that

capability in fact that's how
emerging countries differentiate

themselves against wealthy countries
they figure out a niche based

on their infrastructure their education
system to differentiate themselves.

So therefore the had to argue saying
is it a shame that manufacturing

in the US is only down
eighteen percent economy

we should do something about
that I would argue that's great.

We're going to continue to make
big heavy things we're going to.

Make things that are very very
differentiable from technology in the U.S.

But that's not where the battleground is.

That's not where the battleground of
the future is it is about the services it

is about differential
technology in such areas

as communications into food safety
infectious disease and life science.

And that is where it is so
important that we focus on my and

my belief in the battlegrounds of
education innovation in value creation

because that will be the core of
what I personally believe will

continue to sustain the standard of living
in the U.S. as again being the wealthiest

the wealthiest country in the world but
this is a change and

again it's a huge change is so easy to
look back instead of look into the future.

I can imagine if I was standing here
in the eight hundred hundreds and

where people are leaving the farm to go
the city people are saying geez people

aren't working on the farm anymore and
as you know only two or

three percent of the population the U.S.

even works in agriculture but
it's incredibly productive.

We need to have the same discussion
as we move forward in terms of what

are the skills required to compete in
this the future part of this century not

the past part so education is at
the heart of this movie for it's

my own personal passion as you know being
part of the San Jose Children's Museum.

How do you get young kids
excited about science and

engineering not make sure that it's
not perceived as being not cool.

How do you get people to think can
be a career of understanding to

be inquisitive you know as you know
you're looking at somebody here

that was going to do something forty
years ago is trying to figure out

work in the bunch of smart people.

How do we win in life science and
so I have all my books at home and

Darlene Solomon's our chief
technology officer and

she gives me all the books
about cell biology and

all these things quite honestly I didn't
like chemistry of have much in school and

now all the sudden I got to know enough
to be able to make hundreds of millions

of dollars worth of investments
to be able to make that happen.

Fortunately the U.S. university
system is the best in the world and

and that is just a treasure that we need
to continue to support not only from us.

Citizen from the state but
as well as from corporations and

that's why we have been so active in
such the top universities Georgia Tech

the collaboration that we have made the
collaboration the donations that we make

to make sure that in our little way and
again we're relatively small company to

make sure that you have as many tools as
you can for your learning experience and

in fact we support one hundred two
universities in two thousand and

nine even through the worst
recession in my lifetime.

This is so important to a company
like Agilent to continue to make that

investment but the real thing is how do
we get you into these universities and

the K. through twelve in many many states

is very very lacking of resources and
functions very high.

Or the graduation rates are low versus
what they should be coming out of high

school and so we have a lot of
programs that we support again.

Agilent after school we get with the kids
and have to do science projects again get

them excited about that Intel
actually is the main sponsor for

the International Science and
Engineering Fair Work Sponsor for

that again trying to reward good
recognition to the top high school

students that have really done something
really neat in terms of science and

engineering and so far this this will be
the core of our ability to differentiate

ourselves as a country moving forward and
second one is all about innovation.

All I got it from yesterday and today
was all about creating environment of

innovation here and you guys should all
know this who invented the optical mouse.

Agile and somebody got it right this
year the first person is you know I

do this in the Bay Area and they always
say Xerox PARC or something like that.

And this is it and

I use this is an example simple device I'm
sure all of you have seen optical mouse.

Does anybody remember these that
trackball mouse these devil trackball and

that mouse and this is a classic story of
innovation and it's a product innovation.

But I'll never forget there's an engineer.

He was out of school two or
three years and he came to me says Bill

there's this guy up in the labs and
he took a digital camera and

take in the picture of the top of this
table and he's taken the pitcher and

he goes out three thousand times a second
or something you take in the pitcher.

He says you know I think I
can calculate the vectors and

we can make this thing into an optical
mouse but nobody wants to listen to me

this is a big problem a bigger company
no one wants to listen to me and

they had gone over to the H.P.
computer group and said.

This is right at the time we're sweating
and they said hey how about this.

How about this optical mouse and they said
well our trackball mouse that you have

again the trackball just like this upside
down the track ball mouse works good

cost two dollars and forty nine cents.

Hey if you sell this optical
mouse to us for two dollars and

forty nine cents Yeah well we'll use it.

We spent a lot of money.

You know to do this.

So the good news about H.P. and Agilent
is if you can't find a partner inside

the company you're free to go
find a partner somewhere else.

So who do we go to you'd
never guess Microsoft.

When you think what and world with
Microsoft do this Bill Gates personally.

Entered is the world's first optical
mouse and you can go online and

see a picture of him standing next to this
optical mouse is taller than I am and

they enter Dusit into the market
as an after market assessor for

seventy five dollars and you know
Microsoft is not a company that doesn't

you know they like to make money as any
other company they changed the way people

thought about just doing a simple computer
interface it turns out optical mouses

are great for gamers and
now you can find a track ball mouse moving

forward this whole idea of having
an environment that people can experiment.

People can fail.

I'll give you another secret.

My first R. and D.

project in your package failed and
cost the company twenty million dollars.

Twenty million dollars And
what we try to do is try to make an L.E.D.

a raid to take an optical copier so
you know

now they're all digitized of course
optical copy or were they in the top.

To have a light that would flash
document on a photoreceptor

in the photoreceptor it was basic
in the visible way of life.

And what we're going to do is take an L.A.
day at six hundred sixty animators and

turn optical Cup copier into a printer and

this is before the scanners came out and
all the rest.

We had a partner and
turns up his light to market it failed and

we lost twenty million dollars.

I learned incredible valuable lesson and
guess what I'm still standing here today.

So I was in an environment of well
geez bill you screwed up and so

therefore you know you can't do anything
is again it is the whole opportunity of

trying different things and I give you
the hint of all it's not the failure.

It's the second decision you make.

Sometimes you just gotta
cut your losses and

go do something else and
what happens sometimes.

And this is the hardest thing when you
make these decisions and you're going down

a research path to your know you're there
and if you've been doing it for years.

It's just not the right path and and
that's actually the harder decision is

to decide OK this is what I learned
let me go do something else.

And so I'm just going to close
a little bit on this value creation.

In my mind and again from the how
we teach all of the managers

inside the company there for
things to create value and

you know again I'm a C.E.O.
You know I am here I get dressed up

to be able to talk to all of you I joke
I haven't done any real work for Dec.