we look ahead this week to the future of wearables. when watches become a link between doctor and patient. head of innovation for johnson & johnson, dr. ken drazen, my guest this morning. plus phil livan, the ceo of evernote with reporters of fortune and john schwartz of "usa today," this week on "press:here". ."

good morning, everyone, i'm scott mcgrew. fit bits and other wearables are a miracle of the modern able. my fit bit tells me exactly how much exercise i'm not getting and it keeps careful track of the miles that i'm not running. and then of course, there's the apple watch. it, too, does some pretty cool analysis of your health and well being. but the wearable of the future may not come from fit bit or apple, but from johnson & johnson. researchers at j & j's silicon valley innovation labs are working on wearables that could do so much more than measure your heart rate or remind to you stand up from time to time. dr. ken drazen is the head of innovation for johnson & johnson, both a surgeon and a venture capitalist. joined by john schwartz of "usa today," mikhail leff ram of fortune. as we get started here let's start with johnson & johnson itself. to merck it's the band-aid company. but it is a humongous medical company. >> johnson & johnson's 120,000

people nearly 120-year-old company that's focused on three major businesses pharmaceuticals, medical device and consumer products. >> so we are -- >> band-aids included. >> band aids included. so we are talking about the robots that are done in surgery. we are talking about innovation -- things that we would not necessarily think of. and that's where you're really involved is this innovation? >> yes. our interests in innovation really span the three business segments. we believe that outstanding science and product development can happen anywhere in the world and our attention to that is industrial global, 24/7. >> when you talk about medical devices, you obviously have some smaller ones that may be conducive or may be predecessors to wearables is that kind of the concept? >> well the -- >> why not? >> all body cavities are included. you know our -- i think our focus is on correcting and helping the healthy person

become healthier and mitigating disease so across the different diseases that we focus on we want to develop products that will be meaningful. as you look at today's consumer wearable market. i think that's focused on the lowest hanging fruit the wrist and accessible body and anat mitch over time the capability of these devices, hardware and software evolve we will be able to tackle -- >> beyond the wrist thinking about something you would wear that rubs against your skin or -- a couple of things? what are you thinking? >> what have we not seep yet that is going to make a difference? >> sure, your imagination can run to all -- to many different disease categories. let's just think about a shoulder injury, right, after a sporting event, reconstructive surgery convenient great to monitor the recovery of that person over time which is both the joint and the muscles that surround it. and many of the functions that happen in that joint and that

must musculature could happen from the outside. today, that is not a convenient consumer december at this point nation but could be over time for more medically important issues. >> there are ideas that people i think, have in startups in silicon valley that might be these sorts of things. there is sort of a barrier to entry on this one, right? i mean if we wanted to get together and have a startup and it was either going to be a bluetooth speaker or it was going to be a wearable that had some sort of health thing where we got into regulation, we probably would pick the bluetooth speaker? >> that's fair. i think that you know health care's 20% of the economy. and if i take a poll around my household, kids spouse, cousins, nephews, you know one out of five or one out of seven of them are interested in health care application. some relatives are interested in neuroscience and mental health. others interested in gaming and video and film. >> you mentioned digestible aspect you think conceivably not asking to you tell me exactly what's going to happen you digest something that in a

sense, is wearable, inside your body monitors it stays there say you have surgery on your elbow or your shoulder once you digest that monitors you from the inside. i know it sounds kind of creepy but what the hell? >> all fair game to me. >> for a while. >> i think she hit on it just right that technology is with us today. the application has to be worked out and be -- has to be part of the passion of an entrepreneur for it to see its day in the commercial market. >> how do you guys work with -- i know you guys have research internally, are you sort of opening up more so in the past and working with startups around the health care space? >> we are. and i think it's emblematic of what's happening to the whole life science industry the recognition that more and more outstanding science can happen outside our own laboratory and our approach to that is to build a tool kit. the tool kit has to be -- you have to be in market, where the tech hubs are, we have done that we have created outstanding teams in silicon

valley boston, long done and shanghai to represent all those geographies. of course not where it all is but that's our first start. you also have to have the ability to finance individuals, so we have longest standing corporate venture capital arm, johnson & johnson development corporation. we have built inc. cube baiters that are no strings attached to incorporate and enable small startups who are missing some of the capabilities that we can provide. and we want to build and refill the ecosystem, where it's mismatched. >> that's sort of your job, right, to be a talent scout to look for other things happening in silicon valley, the johnson & johnson might be interested in? >> that's right. it's also to take the ideas that we are working on and bring them to the outside community and see if we can attract talent capital capabilities whether it's an emerging company or a raw startup and help us tackle those big problems. vnchs you done any acquisitions or would you consider those in the realm that we are talking about? >> well we have a very fluid

business development activity where acquisition and licenses are announced all the time. if you're referring specifically to wearables, we made investments in companies that are you sealing that. >> startups companies we haven't heard of or? >> likely. >> that is just a regular watch. >> yeah, it tells time. in one time zone. what is realistic right now in terms of wearables? how can i tell the truth from fiction as far as the startup goes. obviously, can measure my heartbeat, seen that makes sense to me, measure my skin temperature, i guess that would make sense. what is realistic now and what is still a couple years out? >> mm-hmm. well the technological

capabilities to read what's underneath the skip i think are vast and here right now. the question is whether or not those markets are accessible for people right now and that's what investors want to back. so you're right, the blood vessels under the skin on the wrist are available and interpreted for blood pressure and pulse and even more complex factors that that relates to. but you can also infer other things like body oxygenation. you mentioned temperature. that's another good one. and there's several other ones that are more subtle that some startups are working on, for instance, the contractability of the muscle around it the nervous stimulation that's controlling the wrist and the hands. let's say, for instance in the area of tremor. and so a lot of important structures run underneath the wrist that control tremor. >> what do you wish you could do that you can't do,? i mean, blood sugar would be an obvious one?

>> i think other places are going to be tackled and we know they are. you know, people are climbing those mountains right now. >> where? >> the temple or the -- >> yeah that's right. over -- over all the surfaces where you can think of where have ailments. yes, the she had a a location let's say for headache or my grape and grain and the eyes a surface for monitoring the knew bids had the body and vision. that's an area of interest for us. there's the muse cue latch chur of the body where people have physical ailments. joint disease osteoarthritis affecting more than 20 million people.ailments. joint disease, osteoarthritis affecting more than 20 million people. people. >> if i'm a young startup and thinking about -- let's not say the wearable but the medical device area, where would you be most interested? if i want to attract the

attention of johnson & johnson, where's the slot that i should be putting most of my talent and resources into? >> i'm guessing data might be one of those -- big data might be one of those areas, right, 'cause you need to handle all that information somehow? >> yeah, certainly to get the truth out of anecdotal findings, need large scales of data ability to analyze it efficiently and report it out to people where they can manage it both inside the company and to the customers. to answer your question, scott, our medical device business is focused on surgical applications, on diabetes on vision care and if you think about a patient after any surgical procedure, their recovery is both cardiovascular as well as the location we went in and manipulated. so we are interested in rapidly determining the recovery rates of people and determining whether outcomes are efficient. >> dr. ken drazen of johnson & johnson, thanks for being with us this morning. >> thanks.

one of the brightest ceos in silicon valley, evernotes phillipphil -- evernote when "press:here" tops.

welcome back to "press:here." we have been talking a lot about wearables this morning. when apple watch hit the market one of the debut apps was from evernote. i invited the head of evernote here to talk about the challenges of writing software for the very small screen. and then it occurred to me i

should probably tell you what evernote is if you don't know. it's amazing. that's what it is. it is a giant digital shoebox somewhere in the cloud where you can store anything, an e-mail a picture, a copy of your flight itinerary and retrieve it in seconds. the more stuff you store, the better if works. phil libin created evernote, a company that turned seven last week. but phil wants evernote to be a 100-year-old startup. thanks for being with us this morning. let's start with that. what is a 100-year-old startup? >> two parts to that the first part is it gets to last for 100 years. sure. trying to build something that outlasts all of the people in it. and the second part is that it still gets to be a startup. >> still has that altitude? >> still creating products that people love still acting quickly. and i think both are equally hard how to make it 100 years. >> fresh and old at the same time. >> do you have like a 100-year plan? i don't mean to be -- not being facetious? >> we have a progress bar, you

know building 100-year startup. about 8% done. it moves very slowly if you stare at it maybe see it move by a pixel. >> people are expected to live much longer. so you actually might have some of the original employees still there. >> it's true. i definitely hope to still be involved in the company some capacity. >> you were on the apple watch from the get-go. as you built this app did you say to yourself this is what the watch can do and let's tray to make something that -- or did you say, this is what we want to do and can the watch do that? is that too vague of a question? >> no, i think it's definitely this is what we want. this is how we want the world to bend. this is where we want it to go. let's see how close we can get with the current technology. the swatch a pretty big step forward but just a step. i see you are wearing one. what can i do with evernote on a watch? i mean what does the watch push me forward to get? >> the watch is for things that are best experienced five seconds at a time. so, evernote on the phone is for things that are best experienced maybe a minute or two at a time and then things that are best

done in five-second intervals you can do on the watch. what it is really good for right now, quick dictations, quick reminders, notifications, all that kind of stuff. but it's really gonna expand, i think, pretty dramatically the next even few months, as new capabilities emerge. >> i'm sorry. >> i was going to ask, what else do you guys have in the pipeline? i know you have several aspects to the app, to the business. even have physical goods that you sell to customers and you have a lot of users. but how do you, in your 100-year plan, what's the next? how do you maintain growth? how do you get people actively engaged with the app? >> our central product hype both sis is the way that people are working now is radically different from the way they were working 20 years ago, which is when the current crop of productivity products were created and things are changing very quickly and technology hasn't really kept up. so what we are trying to do is investment the new central pillars for productivity. those are much more bite sized, much more co-will be a rattletive unified experience than the things we were doing before. >> i do find it peculiar you

actually sell note backs, like actual note -- actual notebooks. >> with paper. >> with paper. >> paper. >> you are the virtual notebook company that -- why do you sell notebooks? >> we have a partnership with moleskin that makes beautiful paper notebooks. and we were getting started -- >> people other than journalists still buy them? >> yeah. quite a bit. so, at first we thought paper was our enemy. >> right. >> go and say, you know all these surveys that would come out asking people what is your favorite note taking app or productivity tool and we would always come in second, behind paper. and that used to infuriate me. we must kill big paper but then i realized that doesn't really make sense. even if i looked at our own company, half of the evernote employees in meetings are writing on a notebook it is a really great experience. our answer suspect to replace something it is make great experience incorporate a great experience with a pen and paper and you can write with a pen and paper, take a picture with the evernote, the best of both worlds seems like a --

>> how big of a business is that for you? >> oh must be nearly 1 million notebooks sold i know half a million a few months ago. pretty significant. >> as a percentage of your business, is it pretty significant, like single digits? >> single digits. yeah. definitely not a double-digit focus. >> i was going to ask you, what's moving forward, i think you're going to have a different redefined role with the company. can maybe describe what's gonna happen, because i -- are you leaving as ceo or are you gonna maintain that title and have somebody else run the company? i was just curious about that. >> so i have been talking about building 100-year startup for years. and big part of that responsibility is finding the next ceo. you know if i'm going to be the last ceo of evernote, by definition, we failed in our mission. so, i have taken it as a core responsibility to find a better ceo, someone who can do the actual job better that we can. once the company gets to a large enough stage or really focused on you know, the next phase of growth, going public that sort of thing.

>> is there a timetable on when you find that person sore there a sense of urgency that you need to do it now? you have got another 93 years? >> yeah, well sooner than 93 years, but the only -- the only time scale is when we find someone great. we need someone sufficiently epic and then that person will be the ceo and i will focus on the stuff that i'm really good at and that i'm passionate about. >> what makes a great ceo? i'm not trying to dissect what ceo you're looking for for evernote, not a sneaky way for me to try to determine who you're looking at. it's an honest question. in phil libin's mind -- >> haven't you said a professional ceo, bring in someone who maybe had more experience in the latter stages? >> has an mba, has run a company? like the resume stuff, is that what you're looking for? >> you applying? >> i have none of those things. so, i would be a terrible ceo. >> i had one -- half a semester of undergraduate business. you know i think there isn't a single thing that makes a great ceo. i think you get a great ceo for the stage of the company where

you're at. i think what you need as a startup, a raw startup is someone with a, you know huge reality distortion field. someone who is just -- just imagines what can be done and tries to bend the world around that. i think i was pretty good at that. i think i still am. as the company gets bigger and time to start thinking about going public, you need someone to really focus on predictability, on operations on calling the shots, on motivateing a large team of people, not a small group of nerds. so, those skills change. it really comes down to what kind of puzzles are you good at solving what kind of puzzles do you enjoy solving? i know what i enjoy doing, high impact on focusing on things i enjoy and love loves solving the organizational problems. >> endemic in silicon valley history any where am oracle larry ellison, come and gone a couple of times. so there's nothing unusual or earth shattering about it just taking a company to the next level or magic mark. >> what is the advantage of making that announcement, of making that public that you're looking for somebody and that you're going to step down?

doesn't that have any negative impact on morale internally? does it -- >> we haven't actually made any announcements. >> i guess we have. >> you talked about. >> talked about it. >> the advantage of that is it's easier for me to keep straight if i say the same thing, so i don't really have one set of messages for employees and another set for customers another set for investors, so we have been talking about it for years. >> you still on the board of the san francisco opera? >> i am. >> okay. you once said that you know very little, if anything, about opera. >> yes. >> that, to me is a great sitcom, the guy on the board -- >> they know that before they asked yous? i did mention that to them before. when they asked me to join, first i thought maybe it was spam. when i learned they were serious, i was intrigued. i said i don't actually know anything about opera. we are not looking to you for advice. >> what were they looking to you for? >> i think they are looking for ways on how to make something that's such an established institution more relevant to a

different demographic. i'm looking to learn -- i have learned a lot more from being in the opera than i think they have learned from me. i think it's fascinating. >> what have you learned? >> so the san francisco opera is i think 90 or 19 years old. so like, that's actually a company that's approaching the 100-year mark and they have been extremely innovative within that art form. so, just thinking about culture, about how to make something persistent, how to make something beautiful, it's been really an enriching experience for me. >> it is amazing to think that they are reaching out to people who don't necessarily know because you would think it's a very tight, elite group of people. i suppose something to stay for san francisco, rarely does. no, but i always thought that was nice. >> now, you're on the pep nenninsula, any trouble attracting talent where you are, because, of course the hot place to be is in san francisco proper. >> yeah. that cuts both ways. you know there's people who definitely want to be in san francisco and don't want to leave san francisco and then

there's people who would really much rather stay in the peninsula. >> about a neutral -- >> yeah, i think it comes out roughly, you know roughly the same. i think had we been in san francisco, lots of everybody my yus wouldn't have been able to attract up there. if i was to do a brand-new startup, i would probably do it in san francisco. but you know we are 400 people at evernote, a different demographic of employee. i think we are in pretty good shape whether we are. enhe have vitt tabably, somewhere in the 100-year map, i think we will have an office in san francisco, i think a question of timing. >> phil libin is the ceo of evernote. thank you for being here with us this morning. "press:here" will be back in just a minute.

"press:here", earlier, michal is pointing out my wearable is actually just a watch and it just tells time and does nothing else. i had an apple watch. apple did not send me one. but i went out and bought one -- well, i ordered one. >> my daughter did the same thing. i think she had the same experience you had. >> well i put it on. i enjoyed it. it was kind of cool. and the text messaging was neat. i could see though, yeah and then i ended up just selling it honestly, on facebook is where i sold it. >> within three weeks? >> oh i think it was within a week and a half. >> she did the same thing. >> it's not that i didn't like it. it's that i wanted the watch so i understood what the fuss was about so i could be a better reporter on television right? but i'm not sure i ever quite glommed on to what the

excitement was, other than hey i have an apple watch. and so you've tested it. what are your experiences on that? >> i agree with you. i tried it at the store and i like it, but i thought it's somewhat complicated, somewhat narrow on what you can do with it and i just wondered, long term unless they come one some killer application or something amazing, i'm not sure this has a long-term high-end sales feature. >> well just there was no value add, i don't think. nothing i said, well with this i can do something that i couldn't do before. >> i agree. i have a similar experience with a lot of -- with fit bits other products that come out where i wear it for a week, a few weeks, it's fun, kind of cool it's new and then i just forget to put it on. >> with felt bit's ipo, one of the things they discovered, they let us discover we have got x-number of million fit bits sold and we have x-number of fit

bit users transmitting data and when you did the subtraction there was a huge number of people who bought a fit bit who must be putting them in their desk drawers because there was no data coming out of it as well. >> i had that experience. i think -- the apple watch looks beautiful. all the power to them for trying something different. but i just think of it is as a glorifiedism phone strapped to your wrist. until they come up with something that is unique or something that is -- blows people's minds, i just don't see it selling beyond that kind of fervent crowd. >> i also saw it as i'm a old guy, i wear a watch. my sons don't wear watches because they are young. so, there was no market there for -- i mean you can be young and cool and have an apple watch, but those guys don't wear watches. right. i think there are young people who bought probably a watch for their first time the apple watch i agree. it's marketing something to you know, a younger demographic that probable had i doesn't see a need for most of them probably

don't see a need to wear something on their wrist unless it gives you some significant value. the apple music. did you subscribe? >> no. >> did you turn it on? >> i did not. >> i did turn it on. >> and? >> after -- i'm debate building to take the free three months, but i don't know -- >> now that taylor swift will get paid. i feel better. >> i feel so much better about that. >> i will say i did turn it on. i did say one of the radio stations is called mix tape. and it's basically the hits from the '80s a the mix tapes that you make. >> loving it. >> loving it. that radio station, i have to admit, i like very much. all right. so, there's some analysis for you. be back with "press:here" in just a minute.

that's our show for this week. my thanks to my guests. i'm scott mcgrew. and thank you for making us part of your sunday morning.