Posted by Mark Brousseau
The U.S. economy is finally on an uptick. According to Federal Reserve Chief Ben Bernanke, the economy is set to grow by 3-4 percent in 2011. That’s great news for businesses that have been seeing decreasing or stagnant numbers on their revenue reports for the last couple of years. But now that more growth is possible, Dan Adams warns that it’s time to make sure your company is poised to get its share of the economic recovery.
"The best way to shape your company’s economic recovery into the most profitable form possible is to deliver more than your share of customer value,” says Adams, author of New Product Blueprinting: The Handbook for B2B Organic Growth. "Specifically, you need to develop differentiated products that provide benefits your customers crave. Products they can’t get anywhere else at a comparable cost. Doing so will accelerate your growth in the upturn and insulate you from the worst of the next downturn.”
Adams notes that you must keep in mind that your competition won’t be standing idly by while you innovate and grow during the improving economy. To stay ahead of your competition, you should keep a targeted focus on what sets your company apart in your industry.
“There could be any number of marketable differences,” explains Adams. “Are your scientists smarter? Do you spend more on R&D? Do you have a longer time horizon? These things can give you an incremental edge, but the best way to deliver substantial new customer value is this: Don’t approach the problem the same way your competitors do.”
Adams recommends using a differentiated approach for differentiated products. He says most competitors approach product development with a supplier-centric mentality, meaning they develop new products based on what they think their customers need. Instead, suppliers should use a customer-centric view, focusing on what their customers know they need.
To avoid this trap, he suggests following the five tips below:
Implement your customers’ ideas, not yours. Do you have a new product development process, perhaps with stages and gates? Is the first stage labeled “New Idea”? If so, that’s fine, but here’s the question: Whose ideas are listed in this stage—yours or your customers’?
“I’ve trained clients in hundreds of B2B industries and find suppliers nearly always begin product development with their ideas rather than their customers’,” says Adams. “The result is that they don’t know if they are truly meeting their customers’ needs until they can watch the sales results of their new product!
“Most companies make the critical mistake of starting with the supplier solution and ending with market needs,” he continues. “But what if they inverted their process by starting with market needs and ending with supplier solutions? Actually, two things would happen. First, because B2B customers are more insightful, rational, and interested than their B2C counterparts, suppliers would learn much more about customer needs than their competitors. Second, they’d prime those B2B customers to buy their new product by engaging them with highly interactive interviews.”
Conduct B2B-optimized interviews. Of all the ways to learn about customer needs—telephone, mail survey, Internet—nothing comes close in effectiveness to face-to-face customer interviews. If the information being sought is new, complex, or ambiguous—as with B2B product design—the advantages of interviews become even greater. So is the customer interview a key fixture in most new product development processes? For many producers, the answer is no.
Perhaps with so many routine customer interactions, it’s assumed much of it must be interviewing. But if you examine the call frequency of your sales and technical service staff, you will likely find that over 90 percent of face-to-face customer communication is of the “tell-and-sell” variety. Some might protest, “But we get lots of input from our customers on what they want in new products.” The reality, though, is that most new product discussions are actually customer-reactive meetings, not market-proactive interviews.
“You’ll know a market-proactive interview when you see it,” says Adams. “First, a team targets an attractive market segment. Then it schedules interviews with customers, prospects, and their customers’ customers. Two-or-three-person technical-commercial teams prepare their questions and interviewing roles in advance. During the interviews, these teams use advanced listening, probing, and interviewing skills to plumb incredible depths…and the customers love it!”
Get everyone listening to the voice of the customer. Some large firms keep a small staff of highly trained VOC (voice of the customer) experts poised for action. These folks parachute into a project as dawn streaks the morning sky, interview your customers for you, and hand you a report of “what the customer wants.” This is a flawed model, says Adams. Most businesses chalk up thousands of face-to-face customer meetings during the course of a year, as sales reps, technical service reps, and others go about their normal duties—so why not train these people to become VOC experts?
“They’ve already gained the customer’s trust, they know the customer’s language, and there’s no extra travel cost,” he points out. “Best of all, you’ll develop a reputation among customers as ‘that supplier who really listens to us.’ Now that’s how to protect today and position for tomorrow. So keep that handful of experts…but let them become trainers and coaches for the masses, not primary interviewers.”
Get quantitative. After you perform great qualitative customer interviews, you’ll have dozens and dozens of customer ideas you could work on. But which ideas do you target in your new product design? At this point in the process, it’s time to get quantitative.
“You need to understand which customer outcomes are most important and least satisfied today,” explains Adams. “The metric I’ve developed for this is called the Market Satisfaction Gap. It tells you precisely which ideas the customer is eager for you to pursue. The Market Satisfaction Gap prevents a fortune from being spent on developing supplier-centric products that will make customers yawn. Skip this step if you’ve got extra R&D resources you’re trying to keep busy. But make this a priority if you want everyone working on projects that will catapult you out of the recession faster than competitors.”
Research your customers’ alternatives. We often talk about competitive products. That’s okay, but it’s actually healthier to think in terms of customers’ alternatives. For example, if your company makes structural adhesives, alternatives for you might be other adhesives, but they could also be welding or mechanical fasteners.
“In my experience, suppliers don’t look at customers’ alternatives rigorously or early enough during product development,” says Adams. “Proper side-by-side testing requires answers to four key questions:
1) Which attributes should I test?
2) What test procedures should I use?
3) What test result is barely acceptable?
4) What test result leads to total satisfaction?
“The good news for the B2B supplier is that your customers are smart enough to answer all of these questions. Well-designed, customer-centric side-by-side testing will help you properly price your product and avoid getting blindsided by competitors’ products.”
“Research shows that only one in four new products succeeds once a project enters the costly product development stage,” says Adams. “I doubt there is any other function within your company where this level of failure and waste is tolerated. And supplier-centric product development is at the heart of the problem. The key to taking advantage of the recovering economy is in changing the way your company approaches offering new products. Start now and you’ll be well on your way to shaping a truly great economic recovery at your company.”
What do you think?
Showing posts with label economy. Show all posts
Showing posts with label economy. Show all posts
Thursday, February 17, 2011
Wednesday, October 20, 2010
Book says to get ready for the next boom (really!)
Posted by Mark Brousseau
A bumper sticker popular in West Texas during the oil bust of the early 1980s went something like this, “Please God, just give me one more boom—I promise not to blow it this time.”
Today, millions of people around the world may be having similar thoughts.
In his book to be published in November, Jack W. Plunkett, a widely followed analyst of global trends, writes that massive changes in America and around the world will bring on a sustained period of economic growth. In The Next Boom, he argues that we are on the verge of developments that will boost job creation, investment and international trade over what he calls the “near future,” from 2013-2025.
“The next boom is already rolling down the tracks in the emerging world,” Plunkett says. “America will get on board shortly.”
The book is subtitled, “What you absolutely, positively have to know between now and 2025,” because Plunkett believes that managers, investors, entrepreneurs and leaders need to understand the changes that will soon occur in order to perform effectively. He presents a panorama of developments in areas including energy, healthcare, education, demographics, global trade, technologies and the rapidly-growing global middle class—showing how trends in America and around the world have tremendous synergy that will lead to a surge in business.
Plunkett, who describes himself as a “pragmatic optimist,” explains that “the coming boom will be supported by three building blocks. First, consumers in America are building savings and becoming financially prudent, while population growth is expanding markets for businesses. Next, global trade is about to enter an evolved, vastly higher level while the middle classes in emerging nations are soaring. Third, advanced technologies will boost the global economy in an unprecedented manner that will make the last technology boom seem tame.”
What do you think?
A bumper sticker popular in West Texas during the oil bust of the early 1980s went something like this, “Please God, just give me one more boom—I promise not to blow it this time.”
Today, millions of people around the world may be having similar thoughts.
In his book to be published in November, Jack W. Plunkett, a widely followed analyst of global trends, writes that massive changes in America and around the world will bring on a sustained period of economic growth. In The Next Boom, he argues that we are on the verge of developments that will boost job creation, investment and international trade over what he calls the “near future,” from 2013-2025.
“The next boom is already rolling down the tracks in the emerging world,” Plunkett says. “America will get on board shortly.”
The book is subtitled, “What you absolutely, positively have to know between now and 2025,” because Plunkett believes that managers, investors, entrepreneurs and leaders need to understand the changes that will soon occur in order to perform effectively. He presents a panorama of developments in areas including energy, healthcare, education, demographics, global trade, technologies and the rapidly-growing global middle class—showing how trends in America and around the world have tremendous synergy that will lead to a surge in business.
Plunkett, who describes himself as a “pragmatic optimist,” explains that “the coming boom will be supported by three building blocks. First, consumers in America are building savings and becoming financially prudent, while population growth is expanding markets for businesses. Next, global trade is about to enter an evolved, vastly higher level while the middle classes in emerging nations are soaring. Third, advanced technologies will boost the global economy in an unprecedented manner that will make the last technology boom seem tame.”
What do you think?
Monday, September 13, 2010
How Do Apple, Ford, and Microsoft Survive In The New Economy While Others Crash?
Posted by Mark Brousseau
Six out of ten new businesses fail. Unemployment isn’t getting any better. The housing market is set for another bump in the road next quarter. And as if the cake needed icing, the FDIC is reporting that about half of America’s banks -- including the four largest -- are on the bubble, and may fail by the end of the year.
As serious people at serious companies are looking for answers to the dilemma, one expert wants them to focus on a principle that is often overlooked in hard times: innovation.
“The equation is simple: innovate or perish,” says Robert Brands, a veteran corporate executive. “At every major crossroads in the history of American business, innovation has been the driving force behind the companies that made it through the bad times. After all, as we all look for the hot new product or the ‘killer app’ in our respective industries and professions, we tend to overlook the fact that someone has to create or invent it first.”
Brands believes that innovation is the governing philosophy behind companies that succeed.
“Whether it is a multinational corporation or an entrepreneurial startup, innovation can help a business launch, recover or overcome even the greatest of competitive pressures,” he adds. “If you are a manufacturer, distributor, service provider, supplier, retailer or even a not-for-profit, the pressures of the new economy are worse than anything the business world has seen for decades. So, how do you get through it? Look at the companies that are prospering, despite the economy. Apple, Ford, Microsoft and others didn’t stand pat as the economy crashed. They reinvented themselves and their product and service lines. After falling behind to Japanese competition amid the GM bailouts, Ford went back to the drawing board on their line of cars and emerged stronger than before, having one of their best quarters ever. It wasn’t layoffs or the mitigation of risk that accomplished that. It was innovation, creating something new to satisfy its customer base.”
Brands wants people to expand their notion of innovation.
“When people think of innovation, many of them think of simple brainstorming for ideas,” he adds. “This is a fallacy. Brainstorming is just one small element of a much larger process. Innovation is NOT a tactic. It is a process, and if businesspeople follow the right steps, they can achieve innovation regularly -- not just when someone slips on the soap in the shower and the next killer app just comes to them as they put ice on the bruise on their head.”
Brands recommends some rules to govern that process.
“For instance, everyone wants to achieve that ‘a-ha’ moment, when they think they’ve struck upon an idea that could be big for their company,” he says. “Part of it centers on recognizing a need in the market place, but then combining all the elements and resources within your company to see if you have the ability to leverage existing research, development, contacts and distribution to fill that need. For instance, the iPod was an innovation that came about from Apple’s examination of the consumer’s desire to buy single songs instead of whole CDs, and the record industry’s inability to leverage the Internet as a viable delivery medium. Now, in reality, the process was far more complex than that simple sentence, but the essence of the process is there. The key to making innovation a profit center is to be able to sustain it through the entire life cycle of a business."
Brands concludes that, "innovation should not be a one-shot deal.”
Six out of ten new businesses fail. Unemployment isn’t getting any better. The housing market is set for another bump in the road next quarter. And as if the cake needed icing, the FDIC is reporting that about half of America’s banks -- including the four largest -- are on the bubble, and may fail by the end of the year.
As serious people at serious companies are looking for answers to the dilemma, one expert wants them to focus on a principle that is often overlooked in hard times: innovation.
“The equation is simple: innovate or perish,” says Robert Brands, a veteran corporate executive. “At every major crossroads in the history of American business, innovation has been the driving force behind the companies that made it through the bad times. After all, as we all look for the hot new product or the ‘killer app’ in our respective industries and professions, we tend to overlook the fact that someone has to create or invent it first.”
Brands believes that innovation is the governing philosophy behind companies that succeed.
“Whether it is a multinational corporation or an entrepreneurial startup, innovation can help a business launch, recover or overcome even the greatest of competitive pressures,” he adds. “If you are a manufacturer, distributor, service provider, supplier, retailer or even a not-for-profit, the pressures of the new economy are worse than anything the business world has seen for decades. So, how do you get through it? Look at the companies that are prospering, despite the economy. Apple, Ford, Microsoft and others didn’t stand pat as the economy crashed. They reinvented themselves and their product and service lines. After falling behind to Japanese competition amid the GM bailouts, Ford went back to the drawing board on their line of cars and emerged stronger than before, having one of their best quarters ever. It wasn’t layoffs or the mitigation of risk that accomplished that. It was innovation, creating something new to satisfy its customer base.”
Brands wants people to expand their notion of innovation.
“When people think of innovation, many of them think of simple brainstorming for ideas,” he adds. “This is a fallacy. Brainstorming is just one small element of a much larger process. Innovation is NOT a tactic. It is a process, and if businesspeople follow the right steps, they can achieve innovation regularly -- not just when someone slips on the soap in the shower and the next killer app just comes to them as they put ice on the bruise on their head.”
Brands recommends some rules to govern that process.
“For instance, everyone wants to achieve that ‘a-ha’ moment, when they think they’ve struck upon an idea that could be big for their company,” he says. “Part of it centers on recognizing a need in the market place, but then combining all the elements and resources within your company to see if you have the ability to leverage existing research, development, contacts and distribution to fill that need. For instance, the iPod was an innovation that came about from Apple’s examination of the consumer’s desire to buy single songs instead of whole CDs, and the record industry’s inability to leverage the Internet as a viable delivery medium. Now, in reality, the process was far more complex than that simple sentence, but the essence of the process is there. The key to making innovation a profit center is to be able to sustain it through the entire life cycle of a business."
Brands concludes that, "innovation should not be a one-shot deal.”
Wednesday, September 23, 2009
Economy Slams Morale
Posted by Mark Brousseau
The cost-cutting actions that employers have been making to deal with the economic crisis have contributed to a sharp decline in the morale and commitment of their workers, especially top performers, according to an annual survey by Watson Wyatt and WorldatWork.
The 2009/2010 U.S. Strategic Rewards Survey found that employee engagement levels for all workers at the companies surveyed have dropped 9 percent since last year, and close to 25 percent for top performers. Additionally, 36 percent of top performers say their employer's situation has worsened in the past 12 months and the number who would recommend others take jobs at their company has declined by nearly 20 percent. Compared with last year, top-performing employees are 26 percent less likely to be satisfied with advancement opportunities at their company. They are also 14 percent less likely to want to remain with their company versus take a job elsewhere.
The survey also found that top-performing employees are 29 percent less confident in management's ability to grow the business. And 41 percent believe that pay and benefit changes made by their employer in the past year have had a negative effect on work quality and customer service. The survey was conducted in May 2009 and is based on responses from 1,300 full-time workers at large U.S. employers.
"The fallout from the actions employers have taken in response to the recession is now coming to light, and it is significant," said Laura Sejen, global director of strategic rewards consulting at Watson Wyatt. "Having less engaged and committed workers is a major concern for employers. This could have a long-lasting and detrimental impact on productivity, quality and customer service, as well as an increase in the risk of companies losing their best employees."
The survey also found that most top-performing employees say they aren't expecting to receive the same bonus or pay increase as they have in the past, even though historically companies have rewarded them with pay commensurate with their performance. More than six in 10 (61 percent) say their companies have reduced or suspended bonuses, while only 35 percent agree their employers reward top employees for performance. Additionally, 43 percent of top performers said individual performance expectations have increased since last year, while one-third (32 percent) say their company's financial performance goals have increased.
"One of the many challenges employers will face as the economy recovers is how to re-engage employees, and especially top performers," said Ryan Johnson, CCP, vice president of research at WorldatWork. "Taking a total rewards approach and looking at all of the ways companies can motivate and retain -- including compensation, benefits, work-life initiatives, and career development -- is going to be essential."
What do you think? Post your comment below.
The cost-cutting actions that employers have been making to deal with the economic crisis have contributed to a sharp decline in the morale and commitment of their workers, especially top performers, according to an annual survey by Watson Wyatt and WorldatWork.
The 2009/2010 U.S. Strategic Rewards Survey found that employee engagement levels for all workers at the companies surveyed have dropped 9 percent since last year, and close to 25 percent for top performers. Additionally, 36 percent of top performers say their employer's situation has worsened in the past 12 months and the number who would recommend others take jobs at their company has declined by nearly 20 percent. Compared with last year, top-performing employees are 26 percent less likely to be satisfied with advancement opportunities at their company. They are also 14 percent less likely to want to remain with their company versus take a job elsewhere.
The survey also found that top-performing employees are 29 percent less confident in management's ability to grow the business. And 41 percent believe that pay and benefit changes made by their employer in the past year have had a negative effect on work quality and customer service. The survey was conducted in May 2009 and is based on responses from 1,300 full-time workers at large U.S. employers.
"The fallout from the actions employers have taken in response to the recession is now coming to light, and it is significant," said Laura Sejen, global director of strategic rewards consulting at Watson Wyatt. "Having less engaged and committed workers is a major concern for employers. This could have a long-lasting and detrimental impact on productivity, quality and customer service, as well as an increase in the risk of companies losing their best employees."
The survey also found that most top-performing employees say they aren't expecting to receive the same bonus or pay increase as they have in the past, even though historically companies have rewarded them with pay commensurate with their performance. More than six in 10 (61 percent) say their companies have reduced or suspended bonuses, while only 35 percent agree their employers reward top employees for performance. Additionally, 43 percent of top performers said individual performance expectations have increased since last year, while one-third (32 percent) say their company's financial performance goals have increased.
"One of the many challenges employers will face as the economy recovers is how to re-engage employees, and especially top performers," said Ryan Johnson, CCP, vice president of research at WorldatWork. "Taking a total rewards approach and looking at all of the ways companies can motivate and retain -- including compensation, benefits, work-life initiatives, and career development -- is going to be essential."
What do you think? Post your comment below.
Friday, August 7, 2009
Hidden Benefits of Outsourcing
When most organizations consider outsourcing, Mike Smith of SourceCorp says the most obvious benefits come to mind:
... Cost containment through labor savings
... Increased accountability
... Leveraging the provider's extensive investment in technology, methodologies and people
... Reassignment and better management of in-house labor
Smith says more savvy organizations recognize that there are a myriad of less obvious, but just as vital, benefits, including:
... Reduction of overall management burden
... Access to specialized skills and industry best practices
... Improved credibility and images by associating with superior providers
... Increased flexibility to meet changing business requirements
... Improved internal management
... Increased security
"Given the capabilities present in today's marketplace, major outsourcing firms offer extremely high levels of security that oftentimes outperform those of the organizations seeking to engage their services," Smith says, adding that usually security is a perceived risk to outsourcing, but is not in actuality.
What do you think? Post your comments below.
... Cost containment through labor savings
... Increased accountability
... Leveraging the provider's extensive investment in technology, methodologies and people
... Reassignment and better management of in-house labor
Smith says more savvy organizations recognize that there are a myriad of less obvious, but just as vital, benefits, including:
... Reduction of overall management burden
... Access to specialized skills and industry best practices
... Improved credibility and images by associating with superior providers
... Increased flexibility to meet changing business requirements
... Improved internal management
... Increased security
"Given the capabilities present in today's marketplace, major outsourcing firms offer extremely high levels of security that oftentimes outperform those of the organizations seeking to engage their services," Smith says, adding that usually security is a perceived risk to outsourcing, but is not in actuality.
What do you think? Post your comments below.
Thursday, August 6, 2009
Money-Saving Strategies
By Mark Brousseau
During the interactive roundtable luncheon at the 2009 TAWPI Forum & Expo in Washington, D.C. this week, attendees shared the best money-saving strategies they have implemented in the past year.
Below are some of the best ideas.
... Take good care of your scanner maintenance technician and they will reciprocate.
... Use of early tracking of customer replies to mailings in transit can help you avoid the cost associated with sending second notices
... Consolidate IT archive solutions; getting rid of outdated technology can save you big bucks
... Use slightly slower (and less expensive) disk storage in place of ultra high-speed archiving
... Enable internal and external end-users to access your archive to eliminate the need for dedicated back-office staff to handle all archive requests
... Ensure that personnel initiatives are team-based, not individual-based
... Take a hard look at open source technologies for IT back-office functions; they work fine and saved one end-user hundreds of thousands of dollars a year
... Educate your staff on the cost -- and potential impact -- of errors; other strategies for reducing errors: send errors back to the "team" that created them, have personnel who don't make mistakes mentor others, and don't be afraid to look at even small errors with relatively smaller savings
... Implement a program to recognize your best performers; symbolism helps
... Use a MICR database or other account lookup technology to reduce data entry requirements
... When shopping for an ECM solution, make sure its functionality is aligned with your business needs; you shouldn't buy features you don't plan to use
... Leverage the Internet to drive improvements in reject processing
... Move to image cash letters (ICLs) to eliminate daily trips to the bank branch
... Adjust your staffing to reduce the money you need to pay out for shift differentials
... Implement Lean Six Sigma
... Move to electronic signatures to save time and to reduce the number of documents required
... Adjust end-user pricing to further incentivize them to move to more efficient processing methods
... Consider remote keying with recognition technology
... Never pass up a free lunch -- definitely attend the interactive roundtable lunch each year
During the interactive roundtable luncheon at the 2009 TAWPI Forum & Expo in Washington, D.C. this week, attendees shared the best money-saving strategies they have implemented in the past year.
Below are some of the best ideas.
... Take good care of your scanner maintenance technician and they will reciprocate.
... Use of early tracking of customer replies to mailings in transit can help you avoid the cost associated with sending second notices
... Consolidate IT archive solutions; getting rid of outdated technology can save you big bucks
... Use slightly slower (and less expensive) disk storage in place of ultra high-speed archiving
... Enable internal and external end-users to access your archive to eliminate the need for dedicated back-office staff to handle all archive requests
... Ensure that personnel initiatives are team-based, not individual-based
... Take a hard look at open source technologies for IT back-office functions; they work fine and saved one end-user hundreds of thousands of dollars a year
... Educate your staff on the cost -- and potential impact -- of errors; other strategies for reducing errors: send errors back to the "team" that created them, have personnel who don't make mistakes mentor others, and don't be afraid to look at even small errors with relatively smaller savings
... Implement a program to recognize your best performers; symbolism helps
... Use a MICR database or other account lookup technology to reduce data entry requirements
... When shopping for an ECM solution, make sure its functionality is aligned with your business needs; you shouldn't buy features you don't plan to use
... Leverage the Internet to drive improvements in reject processing
... Move to image cash letters (ICLs) to eliminate daily trips to the bank branch
... Adjust your staffing to reduce the money you need to pay out for shift differentials
... Implement Lean Six Sigma
... Move to electronic signatures to save time and to reduce the number of documents required
... Adjust end-user pricing to further incentivize them to move to more efficient processing methods
... Consider remote keying with recognition technology
... Never pass up a free lunch -- definitely attend the interactive roundtable lunch each year
Thursday, July 30, 2009
Regulations, Outsourcing Top Industry Trends
By Mark Brousseau
As TAWPI prepares to raise the curtain on its annual Forum & Expo in Washington, D.C. next week, payments and document management operations executives are grappling with mounting regulations, industry-wide over capacity, and pressure from senior management to outsource.
"As a result of the industry scandals, bank and broker/dealer failures, and stock market decline, increased financial services regulations are likely," says Edward Kinsella, second vice president, transfer agent, for John Hancock Financial Services (ekinsella@jhancock.com). "Companies will need to find ways to quickly and efficiently adhere to these new requirements," he warns.
Kinsella says the financial services industry also is facing significant over capacity. "This will likely lead to consolidation, and mergers and acquisitions," Kinsella says. "Companies will be challenged to combine their operations to broaden their product offerings, increase profit margins, reduce expenses, and create new efficiencies and economies of scale," Kinsella adds.
Kinsella also sees a greater push towards outsourcing: "As a result of the economic slowdown, companies are focusing on their core competencies and looking to outsource functions and processes that can be handled by third-parties. Companies must steer clear of functions that distract them from their core competency, or can be handled more cost effectively by others."
Mike Reynolds, executive vice president and director of sales and marketing at Cash Management Solutions, Inc. (mike.reynolds@cashmgmt.com), sees continued interest in outsourcing across all levels of financial institutions. "This is being driven by economics, cost pressures, footprint considerations, and platform replacement decisions," he says, noting that many banks are struggling with whether they should invest in newer lockbox technology. "Innovative banks are exploring combinations of outsourcing and in-house processing."
John Kincade, vice president of business development for J&B Software, Inc. (johnki@jbsoftware.com) also expects increasing customer interest in "hybrid" outsourcing solutions where the customer keeps some of its more strategic payment vehicles in-house, and outsources the labor-intensive functions. "Vendors will have to provide modular solutions that allow this," Kincade says.
Mark Stevens, president and CEO of Moorestown, NJ-based OPEX Corporation (mstevens@opex.com), expects significant consolidation in the retail lockbox market. "There are fewer and fewer companies doing this kind of work," Stevens says. "I believe that we will see three or four companies as the 'last man standing' in this space."
Kinsella says oversight and risk management is critical to the success of outsourcing.
Reynolds notes that for operations that stay in-house, the focus is on improving efficiency and productivity by taking a hard look at existing workflows, technologies, and analyzing staffing and capacity models.
“Companies are driving the last ounce of expense from the business as they strive to meet Wall Street targets,” agrees Bob Young of Manasquan, NJ (lcpard77@verizon.net). “The latest round of earnings releases the past few weeks prove this point.” Payments processing executives are challenged with finding ways to use their current technology – software and hardware – to make their operations more efficient, to satisfy upper management, Young added. “I have to think that the purchase of new processing systems is a low priority, given the economy.”
Reynolds adds that everyone -- service providers, technology vendors and end-user customers -- are seemingly squeezing each other on pricing. "I'm seeing renegotiation initiatives on almost every front as organizations try to better align pricing with volume and product deliverables," Reynolds says, adding that he hopes this eases as the economy improves.
As part of the push to reduce costs and gain operations efficiencies, Stevens believes shared services will become a hot topic. "We are seeing several remittance shops with scanners looking to do AP work for their organizations," Stevens said, adding that he expects this trend to continue.
Similarly, Kincade believes the convergence of forms and payments processing will accelerate next year, with customers moving to more sophisticated correspondence management systems. In some applications, payments can accompany correspondence 30 to 50 percent of the time, Kincade notes.
What do you think? Post your comments below.
As TAWPI prepares to raise the curtain on its annual Forum & Expo in Washington, D.C. next week, payments and document management operations executives are grappling with mounting regulations, industry-wide over capacity, and pressure from senior management to outsource.
"As a result of the industry scandals, bank and broker/dealer failures, and stock market decline, increased financial services regulations are likely," says Edward Kinsella, second vice president, transfer agent, for John Hancock Financial Services (ekinsella@jhancock.com). "Companies will need to find ways to quickly and efficiently adhere to these new requirements," he warns.
Kinsella says the financial services industry also is facing significant over capacity. "This will likely lead to consolidation, and mergers and acquisitions," Kinsella says. "Companies will be challenged to combine their operations to broaden their product offerings, increase profit margins, reduce expenses, and create new efficiencies and economies of scale," Kinsella adds.
Kinsella also sees a greater push towards outsourcing: "As a result of the economic slowdown, companies are focusing on their core competencies and looking to outsource functions and processes that can be handled by third-parties. Companies must steer clear of functions that distract them from their core competency, or can be handled more cost effectively by others."
Mike Reynolds, executive vice president and director of sales and marketing at Cash Management Solutions, Inc. (mike.reynolds@cashmgmt.com), sees continued interest in outsourcing across all levels of financial institutions. "This is being driven by economics, cost pressures, footprint considerations, and platform replacement decisions," he says, noting that many banks are struggling with whether they should invest in newer lockbox technology. "Innovative banks are exploring combinations of outsourcing and in-house processing."
John Kincade, vice president of business development for J&B Software, Inc. (johnki@jbsoftware.com) also expects increasing customer interest in "hybrid" outsourcing solutions where the customer keeps some of its more strategic payment vehicles in-house, and outsources the labor-intensive functions. "Vendors will have to provide modular solutions that allow this," Kincade says.
Mark Stevens, president and CEO of Moorestown, NJ-based OPEX Corporation (mstevens@opex.com), expects significant consolidation in the retail lockbox market. "There are fewer and fewer companies doing this kind of work," Stevens says. "I believe that we will see three or four companies as the 'last man standing' in this space."
Kinsella says oversight and risk management is critical to the success of outsourcing.
Reynolds notes that for operations that stay in-house, the focus is on improving efficiency and productivity by taking a hard look at existing workflows, technologies, and analyzing staffing and capacity models.
“Companies are driving the last ounce of expense from the business as they strive to meet Wall Street targets,” agrees Bob Young of Manasquan, NJ (lcpard77@verizon.net). “The latest round of earnings releases the past few weeks prove this point.” Payments processing executives are challenged with finding ways to use their current technology – software and hardware – to make their operations more efficient, to satisfy upper management, Young added. “I have to think that the purchase of new processing systems is a low priority, given the economy.”
Reynolds adds that everyone -- service providers, technology vendors and end-user customers -- are seemingly squeezing each other on pricing. "I'm seeing renegotiation initiatives on almost every front as organizations try to better align pricing with volume and product deliverables," Reynolds says, adding that he hopes this eases as the economy improves.
As part of the push to reduce costs and gain operations efficiencies, Stevens believes shared services will become a hot topic. "We are seeing several remittance shops with scanners looking to do AP work for their organizations," Stevens said, adding that he expects this trend to continue.
Similarly, Kincade believes the convergence of forms and payments processing will accelerate next year, with customers moving to more sophisticated correspondence management systems. In some applications, payments can accompany correspondence 30 to 50 percent of the time, Kincade notes.
What do you think? Post your comments below.
Wednesday, July 8, 2009
Recession Will Leave Its Mark
Posted by Mark Brousseau
The impact of the economic downturn has clearly been significant, however not all companies are equally affected by the recession, according to a study of executives at 570 leading global companies by Ernst & Young LLP. The comparisons with a similar study in January also reveal that while the white heat of the crisis has passed, the majority of companies are still focused on survival. However, a significant minority are looking to take advantage of the situation to pursue new opportunities.
The study finds nearly half of those surveyed (43%) said that their operating model had been permanently altered by the events of the last 18 months. A further 45% said there had been a temporary impact. Similarly 56% of the executives said that their risk management processes had been permanently altered, 33% temporarily. For 45% the regulatory framework for business had also fundamentally changed.
Other alterations to their business model – price sensitivity, profitability, competitive sensitivity and economic stability were viewed by respondents as more temporary although a significant minority – above 20% in each case – viewed the changes here as permanent as well.
“The impact of the market changes has clearly been significant and some business models have changed radically,” said Michael Rogers, Principal, Transaction Advisory Services, Ernst & Young LLP. “Company management is being forced to review their methods of organization due to a range of macro influences such as challenges from diversification, globalization, and (de)regulation. Businesses that emerge strengthened from the current crisis will be those that reshape intelligently, not those tempted to move quickly to extract additional value. ”
It is still really tough out there
Ernst & Young LLP carried out a similar study five months ago. The corporates Ernst & Young talked to then, and the thousands of companies it has discussed the research with since, are still seeing huge competition on price. Companies are still seeing significant numbers of bankruptcies and competitors withdrawing from their sector, but there was also an increase in those organizations reporting new entrants in their sector.
The overall mood is still somber. Although 64% of executives said they had been able to make cost reductions, 31% said they had improved revenues and more than a third said the environment was more positive in terms of making strategic acquisitions. A majority of executives had seen deterioration in revenues (58%) and profitability (56%). Only 20% had seen an improvement in investor confidence, and a similar low number saw any improvement in accessing affordable capital or credit.
“Perverse as it may seem, a period of crisis can provide an opportunity to drive change more rapidly and effectively than a period of prosperity,” noted Rogers of Ernst & Young LLP. “Company leaders are finding ways to take advantage of this economic climate. This survey shows 25% of companies are actively planning for growth, 34% are seeking strategic alliances and 36% plan to enter new geographies.”
Are we past the worst? A slight shift in emphasis from the responses from January gives some credence to the thinking that the worst ravages of the recession are behind us. At the time of the last study 82% said the focus of their business was on restructuring their business to deal with the recession and 74% were looking merely at survival of the present operations.
Those figures have declined to 74% and 65% - still remarkably high - but in conjunction with the fact that the proportion of companies who said that they were “taking advantage of the recession to pursue new market operations” had increased from 59% to 69% - suggest there are some more companies out there bargain basement hunting.
Cash is actually tighter
Back in January over a quarter of executives said cash was not an issue. That proportion has slipped to 18%. Respondents also highlighted an increase in communications to lenders and rating agencies. There was however less talk of companies disposing of assets purely to raise cash.
“Working capital is the lifeblood of a company, and the ability to manage it becomes even more important in a downturn due to falling revenue and restricted access to funds,” said Kevin Cole, Americas Accounts & Business Development Leader, Ernst & Young LLP. “Companies need to secure their position by identifying and resolving critical issues quickly to protect against value erosion, or to be well placed to take advantage of opportunities.”
How have companies responded in the short term?Over the last year 86% of executives said they had accelerated cost reduction programs, 52% had speeded up their restructuring plans and 38% had pushed the button on a “significant employee reduction program.” When asked about their key drivers in the short term there was increased scrutiny on profitability (73%), pricing strategy (55%) and their relationship with customers (52%). Internally it was no surprise that 38% had seen more investment in risk.What’s next in the longer term?In terms of looking post-recession, executives were pretty evenly split between expanding into new geographies, increased use of strategic alliances, acquisitions and speed to market and divesting non-core business. “Companies that maintain a sustainable business model through the current downturn will not only survive the downturn, but will emerge stronger and in the best position to take advantage of new growth opportunities as the economy improves,” said Cole of Ernst & Young LLP.
“The bottom line is, that in both good and bad economic conditions, successful organizations are those that have clarity around their proposition, strategic direction and brand positioning,” said Donna Campbell, Americas Advisory Performance Improvement Leader, Ernst & Young LLP. “A successful company also has an effective management information capability that is aligned with the business strategy to enable agility in responding to market or other environmental changes.”
What do you think?
The impact of the economic downturn has clearly been significant, however not all companies are equally affected by the recession, according to a study of executives at 570 leading global companies by Ernst & Young LLP. The comparisons with a similar study in January also reveal that while the white heat of the crisis has passed, the majority of companies are still focused on survival. However, a significant minority are looking to take advantage of the situation to pursue new opportunities.
The study finds nearly half of those surveyed (43%) said that their operating model had been permanently altered by the events of the last 18 months. A further 45% said there had been a temporary impact. Similarly 56% of the executives said that their risk management processes had been permanently altered, 33% temporarily. For 45% the regulatory framework for business had also fundamentally changed.
Other alterations to their business model – price sensitivity, profitability, competitive sensitivity and economic stability were viewed by respondents as more temporary although a significant minority – above 20% in each case – viewed the changes here as permanent as well.
“The impact of the market changes has clearly been significant and some business models have changed radically,” said Michael Rogers, Principal, Transaction Advisory Services, Ernst & Young LLP. “Company management is being forced to review their methods of organization due to a range of macro influences such as challenges from diversification, globalization, and (de)regulation. Businesses that emerge strengthened from the current crisis will be those that reshape intelligently, not those tempted to move quickly to extract additional value. ”
It is still really tough out there
Ernst & Young LLP carried out a similar study five months ago. The corporates Ernst & Young talked to then, and the thousands of companies it has discussed the research with since, are still seeing huge competition on price. Companies are still seeing significant numbers of bankruptcies and competitors withdrawing from their sector, but there was also an increase in those organizations reporting new entrants in their sector.
The overall mood is still somber. Although 64% of executives said they had been able to make cost reductions, 31% said they had improved revenues and more than a third said the environment was more positive in terms of making strategic acquisitions. A majority of executives had seen deterioration in revenues (58%) and profitability (56%). Only 20% had seen an improvement in investor confidence, and a similar low number saw any improvement in accessing affordable capital or credit.
“Perverse as it may seem, a period of crisis can provide an opportunity to drive change more rapidly and effectively than a period of prosperity,” noted Rogers of Ernst & Young LLP. “Company leaders are finding ways to take advantage of this economic climate. This survey shows 25% of companies are actively planning for growth, 34% are seeking strategic alliances and 36% plan to enter new geographies.”
Are we past the worst? A slight shift in emphasis from the responses from January gives some credence to the thinking that the worst ravages of the recession are behind us. At the time of the last study 82% said the focus of their business was on restructuring their business to deal with the recession and 74% were looking merely at survival of the present operations.
Those figures have declined to 74% and 65% - still remarkably high - but in conjunction with the fact that the proportion of companies who said that they were “taking advantage of the recession to pursue new market operations” had increased from 59% to 69% - suggest there are some more companies out there bargain basement hunting.
Cash is actually tighter
Back in January over a quarter of executives said cash was not an issue. That proportion has slipped to 18%. Respondents also highlighted an increase in communications to lenders and rating agencies. There was however less talk of companies disposing of assets purely to raise cash.
“Working capital is the lifeblood of a company, and the ability to manage it becomes even more important in a downturn due to falling revenue and restricted access to funds,” said Kevin Cole, Americas Accounts & Business Development Leader, Ernst & Young LLP. “Companies need to secure their position by identifying and resolving critical issues quickly to protect against value erosion, or to be well placed to take advantage of opportunities.”
How have companies responded in the short term?Over the last year 86% of executives said they had accelerated cost reduction programs, 52% had speeded up their restructuring plans and 38% had pushed the button on a “significant employee reduction program.” When asked about their key drivers in the short term there was increased scrutiny on profitability (73%), pricing strategy (55%) and their relationship with customers (52%). Internally it was no surprise that 38% had seen more investment in risk.What’s next in the longer term?In terms of looking post-recession, executives were pretty evenly split between expanding into new geographies, increased use of strategic alliances, acquisitions and speed to market and divesting non-core business. “Companies that maintain a sustainable business model through the current downturn will not only survive the downturn, but will emerge stronger and in the best position to take advantage of new growth opportunities as the economy improves,” said Cole of Ernst & Young LLP.
“The bottom line is, that in both good and bad economic conditions, successful organizations are those that have clarity around their proposition, strategic direction and brand positioning,” said Donna Campbell, Americas Advisory Performance Improvement Leader, Ernst & Young LLP. “A successful company also has an effective management information capability that is aligned with the business strategy to enable agility in responding to market or other environmental changes.”
What do you think?
Wednesday, June 10, 2009
More Businesses Turn to Psychics
Posted by Mark Brousseau
More and more business owners are turning to psychics, says Russell Grant Astrology, which has been dispensing Astrological advice for over 30 years.
Historically, 1 in 3 calls to Russell Grant was regarding a love related matter. Over the past few months, more business owners have been calling up to get advice during this tough climate.
Using psychics and mediums for business use is not unusual, Russell Grant says. In fact, psychics are regularly employed to suss out prospective employees, solve mysteries within the workplace or indeed work hand in hand with astrologers and Financial Directors to plot the business moving forward.
“Many worried self-employed men and women have been calling me during the past few weeks” one psychic commented. “I was very pleased to be able to guide a number of people into opening their minds to other avenues within their businesses to limit the losses they have been facing over the past few months.”
What do you think?
More and more business owners are turning to psychics, says Russell Grant Astrology, which has been dispensing Astrological advice for over 30 years.
Historically, 1 in 3 calls to Russell Grant was regarding a love related matter. Over the past few months, more business owners have been calling up to get advice during this tough climate.
Using psychics and mediums for business use is not unusual, Russell Grant says. In fact, psychics are regularly employed to suss out prospective employees, solve mysteries within the workplace or indeed work hand in hand with astrologers and Financial Directors to plot the business moving forward.
“Many worried self-employed men and women have been calling me during the past few weeks” one psychic commented. “I was very pleased to be able to guide a number of people into opening their minds to other avenues within their businesses to limit the losses they have been facing over the past few months.”
What do you think?
Tuesday, June 2, 2009
Remote Deposit Capture Still Has Legs
By Mark Brousseau
With the stratospheric growth of remote deposit capture (RemoteDepositCapture.com says it has reached over 50 percent penetration among financial institutions in less than half the time it took online banking), you might assume that interest in the technology is dying down. You’d be wrong.
At last week’s Windy City Summit in Chicago, a session on remote deposit capture drew a standing room-only crowd (some attendees even sat on the floor), and many corporate practitioners admitted that they still haven’t implemented technology, reports Leilani Doyle, product manager at US Dataworks, Inc. (ldoyle@usdataworks.com).
“While remote deposit capture is no longer new, and the market is saturated with product offerings, the technology is still growing steadily among corporations,” Doyle explains. “Corporate practitioners recognize that truncating paper as soon as possible in the process is always better.”
Doyle believes that there is more growth ahead for remote deposit capture, particularly with ISOs now selling the solution to billers who previously were an untapped audience, and with the introduction of new check scanners especially designed for billers for low transaction volumes (think: small businesses). US Dataworks plans to make product announcements in this area.
Remote deposit capture holdouts (and early adopters of the technology) also are looking for remote deposit capture solutions that allow for the centralized processing and repair of checks captured at the point of presentment. Anticipating this trend, US Dataworks designed its remote deposit capture offering to allow billers to capture items anywhere, correct them anywhere, and clear them anywhere.
Doyle said there also was a lot of talk among treasurers at the Windy City Summit about the need to reduce any excess balances in their demand deposit accounts (DDA). “Using balances to pay for services is too expensive,” Doyle explains, adding that many treasury managers were looking for a place to park their excess funds. “Not only are corporations receiving an ECR of 1 percent or less, but they also are incurring FDIC fees based on the risk category of their financial institution.”
“The macro-economic pressures of banks not willing to lend, and the Federal Reserve fund rates being at an all-time low, have put a unique spin on the treasury management professional’s job,” Doyle says. “Treasurers are spooked by high FDIC rates, the unknown risk of FDIC rate hikes to cover losses, and the fact that they can no longer use DDA balances to pay for non-credit services.”
The challenge for most treasurers is that they can’t move their banking relationship if they have a credit facility with their bank – regardless of the fees the bank changing for its cash management services: “Companies need to have access to that line or another longer term credit facility.”
In addition, some banks are changing their availability schedules, Doyle says. This is another area where Doyle thinks US Dataworks’ technology can help. With a centralized payments hub, like the one offered by US Dataworks, corporations are better prepared to choose the bank with the best availability schedule, or to dynamically change the way payments are collected based on the paying bank. “Better management of the collections side of the treasury function will provide more accurate collected balance forecasting and reduces the amount of collected balances subject to the FDIC assessment,” Doyle says. “Corporations can augment this strategy with a sweep to pay off loans if they are a net borrower, or a sweep to an investment product, if they are a net depositor.”
What do you think? Post your comments below.
With the stratospheric growth of remote deposit capture (RemoteDepositCapture.com says it has reached over 50 percent penetration among financial institutions in less than half the time it took online banking), you might assume that interest in the technology is dying down. You’d be wrong.
At last week’s Windy City Summit in Chicago, a session on remote deposit capture drew a standing room-only crowd (some attendees even sat on the floor), and many corporate practitioners admitted that they still haven’t implemented technology, reports Leilani Doyle, product manager at US Dataworks, Inc. (ldoyle@usdataworks.com).
“While remote deposit capture is no longer new, and the market is saturated with product offerings, the technology is still growing steadily among corporations,” Doyle explains. “Corporate practitioners recognize that truncating paper as soon as possible in the process is always better.”
Doyle believes that there is more growth ahead for remote deposit capture, particularly with ISOs now selling the solution to billers who previously were an untapped audience, and with the introduction of new check scanners especially designed for billers for low transaction volumes (think: small businesses). US Dataworks plans to make product announcements in this area.
Remote deposit capture holdouts (and early adopters of the technology) also are looking for remote deposit capture solutions that allow for the centralized processing and repair of checks captured at the point of presentment. Anticipating this trend, US Dataworks designed its remote deposit capture offering to allow billers to capture items anywhere, correct them anywhere, and clear them anywhere.
Doyle said there also was a lot of talk among treasurers at the Windy City Summit about the need to reduce any excess balances in their demand deposit accounts (DDA). “Using balances to pay for services is too expensive,” Doyle explains, adding that many treasury managers were looking for a place to park their excess funds. “Not only are corporations receiving an ECR of 1 percent or less, but they also are incurring FDIC fees based on the risk category of their financial institution.”
“The macro-economic pressures of banks not willing to lend, and the Federal Reserve fund rates being at an all-time low, have put a unique spin on the treasury management professional’s job,” Doyle says. “Treasurers are spooked by high FDIC rates, the unknown risk of FDIC rate hikes to cover losses, and the fact that they can no longer use DDA balances to pay for non-credit services.”
The challenge for most treasurers is that they can’t move their banking relationship if they have a credit facility with their bank – regardless of the fees the bank changing for its cash management services: “Companies need to have access to that line or another longer term credit facility.”
In addition, some banks are changing their availability schedules, Doyle says. This is another area where Doyle thinks US Dataworks’ technology can help. With a centralized payments hub, like the one offered by US Dataworks, corporations are better prepared to choose the bank with the best availability schedule, or to dynamically change the way payments are collected based on the paying bank. “Better management of the collections side of the treasury function will provide more accurate collected balance forecasting and reduces the amount of collected balances subject to the FDIC assessment,” Doyle says. “Corporations can augment this strategy with a sweep to pay off loans if they are a net borrower, or a sweep to an investment product, if they are a net depositor.”
What do you think? Post your comments below.
Friday, May 29, 2009
Impact of the Economy on Online Banking Systems Purchasing Decisions
By Mark Brousseau
Today’s economy has presented challenges for banks to invest in new technologies, such as online banking solutions. However, for those banks that can, now is the time to do so, says Joe Spatarella, vice president, sales & marketing, Online Banking Solutions (OBS).
"With minimal activity and deal flow, this is an opportune time to move forward and negotiate an ideal vendor partnership to take you well into the future," Spatarella says.
Below are best practices that Spatarella offers for acquiring and deploying online banking solutions in a challenging and transforming economic climate. "With little or no margin for error, the following could help you win a greater share of customer revenue with a contemporary solution when others are afraid to move," he says.
1. Set your goals: Identify a solution that can differentiate the financial institution in a crowded market. Focus on improved user experience: semantics, navigation and ability to customize at the user level without expensive vendor modifications.
2. Walk a different path to success: Find a vendor that is truly willing to partner and share project risks rather than the 800 pound gorilla who is less likely to negotiate favorable terms or who makes promises that cannot be met.
3. Go with a fixed cost model: Annual license fees and fixed per user pricing is much easier to manage than variable transaction pricing.
4. Purchase in the present, not the future: While product roadmaps are important, be sure the vendor can deliver the product version you purchased at the time you need to deploy it
5. Share in project success: A vendor will be more likely to share the risk and contribute specialized resources if there is also an opportunity to benefit from project success.
6. Watch the clock: Give yourself enough time to make a decision and give the vendor a reasonable timeframe to deliver. Don’t use so much of the project timeline on evaluation that the vendor is left with a highly compressed window for implementation.
7. Minimize the frequency: The solution must be sustainable and scalable so that in 3 to 5 years, you are not looking for another vendor and having to repeat the process with valuable time and resources. Plan for continued success, not failure.
What do you think? Post your comments below.
Today’s economy has presented challenges for banks to invest in new technologies, such as online banking solutions. However, for those banks that can, now is the time to do so, says Joe Spatarella, vice president, sales & marketing, Online Banking Solutions (OBS).
"With minimal activity and deal flow, this is an opportune time to move forward and negotiate an ideal vendor partnership to take you well into the future," Spatarella says.
Below are best practices that Spatarella offers for acquiring and deploying online banking solutions in a challenging and transforming economic climate. "With little or no margin for error, the following could help you win a greater share of customer revenue with a contemporary solution when others are afraid to move," he says.
1. Set your goals: Identify a solution that can differentiate the financial institution in a crowded market. Focus on improved user experience: semantics, navigation and ability to customize at the user level without expensive vendor modifications.
2. Walk a different path to success: Find a vendor that is truly willing to partner and share project risks rather than the 800 pound gorilla who is less likely to negotiate favorable terms or who makes promises that cannot be met.
3. Go with a fixed cost model: Annual license fees and fixed per user pricing is much easier to manage than variable transaction pricing.
4. Purchase in the present, not the future: While product roadmaps are important, be sure the vendor can deliver the product version you purchased at the time you need to deploy it
5. Share in project success: A vendor will be more likely to share the risk and contribute specialized resources if there is also an opportunity to benefit from project success.
6. Watch the clock: Give yourself enough time to make a decision and give the vendor a reasonable timeframe to deliver. Don’t use so much of the project timeline on evaluation that the vendor is left with a highly compressed window for implementation.
7. Minimize the frequency: The solution must be sustainable and scalable so that in 3 to 5 years, you are not looking for another vendor and having to repeat the process with valuable time and resources. Plan for continued success, not failure.
What do you think? Post your comments below.
Monday, May 18, 2009
Economy is Delaying -- Not Cancelling -- IT Projects
Posted by Mark Brousseau
The financial crisis has had a significant impact on the client computing industry in 2009, as witnessed in a survey by Gartner, Inc. that showed far more PC projects are postponed or scaled back this year rather than cancelled outright because of tighter IT budgets. Only 12 percent of those surveyed indicated they have outright cancelled a planned project since October 2008. The survey was conducted from late February through early March of 2009.
"Enterprise belt-tightening has had a tremendous impact on the client computing technology segment with 43 percent of respondents expecting a decrease in spending on client computing hardware in 2009 compared with 2008," said Andrew Johnson, managing vice president at Gartner.
Gartner forecasts overall IT spending to decline 3.7 percent in 2009. Spending on IT hardware, including client computing (PCs), servers, storage and printing systems will bear the brunt of budget cuts with spending expected to decline 14.9 percent. Gartner forecasts overall IT spending to rebound with 2.4 percent growth in 2010, although IT hardware spending will continue to lag next year, growing just 0.8 percent.
Despite the bleak outlook, Johnson said that there are some brighter spots for the segment with certain applications getting increased spending and some countries and industries reporting more-optimistic plans. He said that more client computing projects will be postponed or reduced in 2009 than will be eliminated, and technology and service providers should ensure that they are ready for the recovery, when and where it happens.
The survey pinpointed some important differences in how companies in different countries are maintaining, delaying, reducing or canceling many ongoing client computing projects. Although 48 percent of all respondents indicated some of their PC projects would be deployed as planned in 2009, respondents in China (85 percent) and India (64 percent) were more optimistic and expected most of their projects to be deployed as planned. In contrast, only 29 percent of U.S. and 18 percent of French companies planned to continue their client computing projects as originally planned.
Significant vertical market variations were also revealed by the survey which found that the industries most on track with their client computing plans were insurance, media and consumer business services. Companies involved with telecommunications, wholesale, and agriculture, mining and construction are most likely to be planning to reduce spending. Postponements are more likely in retail, utilities and wholesale companies, and project cancellations were above average in discrete manufacturing. Only one out of 45 respondents in the financial services industry indicated PC purchase plans were cancelled, and in this sector, reduced, postponed, and as-planned responses came in near the averages.
What's happening at your organization? Post your comments below.
The financial crisis has had a significant impact on the client computing industry in 2009, as witnessed in a survey by Gartner, Inc. that showed far more PC projects are postponed or scaled back this year rather than cancelled outright because of tighter IT budgets. Only 12 percent of those surveyed indicated they have outright cancelled a planned project since October 2008. The survey was conducted from late February through early March of 2009.
"Enterprise belt-tightening has had a tremendous impact on the client computing technology segment with 43 percent of respondents expecting a decrease in spending on client computing hardware in 2009 compared with 2008," said Andrew Johnson, managing vice president at Gartner.
Gartner forecasts overall IT spending to decline 3.7 percent in 2009. Spending on IT hardware, including client computing (PCs), servers, storage and printing systems will bear the brunt of budget cuts with spending expected to decline 14.9 percent. Gartner forecasts overall IT spending to rebound with 2.4 percent growth in 2010, although IT hardware spending will continue to lag next year, growing just 0.8 percent.
Despite the bleak outlook, Johnson said that there are some brighter spots for the segment with certain applications getting increased spending and some countries and industries reporting more-optimistic plans. He said that more client computing projects will be postponed or reduced in 2009 than will be eliminated, and technology and service providers should ensure that they are ready for the recovery, when and where it happens.
The survey pinpointed some important differences in how companies in different countries are maintaining, delaying, reducing or canceling many ongoing client computing projects. Although 48 percent of all respondents indicated some of their PC projects would be deployed as planned in 2009, respondents in China (85 percent) and India (64 percent) were more optimistic and expected most of their projects to be deployed as planned. In contrast, only 29 percent of U.S. and 18 percent of French companies planned to continue their client computing projects as originally planned.
Significant vertical market variations were also revealed by the survey which found that the industries most on track with their client computing plans were insurance, media and consumer business services. Companies involved with telecommunications, wholesale, and agriculture, mining and construction are most likely to be planning to reduce spending. Postponements are more likely in retail, utilities and wholesale companies, and project cancellations were above average in discrete manufacturing. Only one out of 45 respondents in the financial services industry indicated PC purchase plans were cancelled, and in this sector, reduced, postponed, and as-planned responses came in near the averages.
What's happening at your organization? Post your comments below.
Tuesday, May 12, 2009
7 Steps to a Career Change
Posted by Mark Brousseau
It happened. Your worst recession nightmare came true. You strolled into work securely (if unenthusiastically) employed and stumbled out, pink slip in hand, jobless in an overcrowded market. Gripped by the fear of not being able to pay the bills and worried that opportunity won't knock twice in this down economy, you rush into the first job your quickly updated resume leads to. Sure, you might end up being just as unhappy as you were before, but at least the check coming every two weeks will keep you from becoming destitute. However, Robin Fisher Roffer stresses that even in these difficult times you shouldn't confuse activity with progress.
She says that whether you're newly laid off or simply desperate for a career change, if you change your focus from just keeping your head above water to becoming a fearless fish and going after the job you truly want, you'll be setting yourself up for a happier life in the long run.
You're probably thinking, But wait! Isn't this the worst possible time to pursue the new career I've dreamed about?
"Not at all," says Roffer, author of The Fearless Fish Out of Water: How to Succeed When You're the Only One Like You. "Actually, it's the perfect time to search your soul, muster your courage, and become a fearless (career changing) fish out of water. That may mean finding your dream job, entering a new industry, or even venturing out on your own as an entrepreneur."
Despite the bad economy, Roffer stresses that opportunities do exist. That's why she says it's more important than ever to create a personal brand identity and to shine a light on those qualities that make you different and more desirable than the rest. Playing up what makes you special could be the very thing that gets you your next job and keeps you in business.
In her new book, Roffer teaches that—contrary to popular belief—standing out is a good thing. Being different gets you noticed and it's the first step to gaining influence.
"Your unique personality, outlook, appearance, or background—really, any attribute that sets you apart—is not a liability but an asset," says Roffer. "If you're looking for a new job or just want to make the career change you think will make you happier, there's never been a more important time to put your unique self out there."
Read on for Roffer's seven steps to being a fearless fish out of water and how they can help you get the job you've always wanted, even in a down economy:
STEP 1: Go Fishing for the Real You. No one knows what's special about you better than you do. So, don't squander it...focus on it! In today's economy, there's no room for generalists. We are in an era of specialization—where being different is good. As a free agent making a significant career change, you've got to put a flag in the ground and declare who you are and what you're good at. If you haven't done this, I promise that others have done it for you. But, they might have gotten you wrong. And, that's the danger.
"To write your next chapter, peel away all the layers you've built up playing the game for others and hone your skills to become an expert at something that's valuable right now," says Roffer. "Perhaps you've been in marketing at a big company and you want to break out and start your own firm. Think about what makes you special in the marketing arena and go with that. For example, maybe you can market any kind of product or service, but where you really excel is in multicultural marketing. If that's your vein of gold, and where you can drive revenue to your client's bottom line, then that's where you might want to place the focus of your new business."
STEP 2: Use Your Differences as a Lure. If you've gotten the pink slip and some severance pay, the natural tendency in extraordinary economic times like these might be to just hunker down, cut back on expenses, and try to hold on to the money. Newsflash! That's exactly the strategy that could hang you in the long run. Because if you're not standing up, standing out, and standing for something important right now, you will become irrelevant.
"Ask former colleagues, clients, customers, and friends what they think makes you positively different at work," says Roffer. "What qualities do you possess that attract people to you and the work you produce? Use the strengths of what makes you different to find your career destiny. Choose a path that feeds your passion and builds on who you are deep inside. Don't just do the logical thing or the expected thing. Do what resonates with your soul. When you do what you love, you'll get positive recognition and the money will come."
STEP 3: Find a Few Fish Like You. Next you'll need to build relationships and make connections. Finding people who have faith in you is like finding an anchor in rough seas. Now is the time to connect with others in your situation who believe in your dream and can cheerlead you on. Start attending luncheons, trade shows, or seminars in the industry you want to be in to find people who share your passion. Find out how you can help each other get ahead in these difficult times.
"Hire a business coach or find a mentor who can help you strategize your transition," says Roffer. "Reward cheerleaders in your personal and professional circles for their loyalty and support and let go of naysayers and time wasters whose negativity will only hold you back. This is the moment to deepen positive relationships to ensure your security and your future."
STEP 4: Swim in Their Ocean Your Way. One way to differentiate yourself from the pack and stay true to the core you is by the way you dress. Put on what's acceptable in your industry and then kick it up in unexpected ways to become unforgettable. Every great brand has packaging that reflects what's on the inside. Think in those terms the next time you go shopping. Does a dress say "school teacher" when it needs to say "business development"? Does your computer bag say "accountant" when it needs to say "web designer"? Are you wearing a golf shirt when a tie would speak volumes about your business acumen? Bottom line: Look the part you're playing and you'll play it better.
"Once you get inside your new company, adopt the culture without getting lost in it," says Roffer. "As a person in transition, who feels like a fish out of water, it can be deadly to get so entrenched in someone else's culture or demands that you can't find the real you. Instead look for what resonates with you and don't buy into what doesn't feel right. Stay true to your core values. If you don't, at the end of this recession, you may not recognize yourself."
STEP 5: Put Yourself Out on the Line. Fearless fish are perfectly positioned to make a difference in the world. Think of Oprah, Bono, and Bill Gates. It's not the wallflower who's going to help their customers go green, or the conformist who will invent the new business model. Getting behind a cause is good for business and makes you look like a hero. Volunteer, join a board, make a major donation.
"Each year a percentage of my company's revenue goes to The Aquarium of the Pacific to save our oceans and the animals that live there," says Roffer. "We put that fact right on our invoices. It makes our customers feel good about working with us. Figure out a way to give back as you transition to your new career. Or better yet, choose a career that is a cause! You may be paralyzed by fear and feel like every minute you need to push that rock up the hill. But shake it off. Give to others instead and watch what you receive in return."
STEP 6: Evolve by Casting a Wide Net. Conformity is not distinguishing. The way to live deeply is to keep reinventing yourself, changing with the times and with your customers. Holding onto the essential you while updating your style, your website, your advertising, and your thinking is the fastest way to the top. Step 6 of being a fearless fish asks that you use your place outside the circle to always be relevant to your company and industry.
"If you've been pigeonholed, now is the time to change perception by learning a new language, taking classes that will sharpen your skills, becoming an apprentice to someone you aspire to be like, and polishing your web presence so that you shine online," says Roffer. "Identify the next peak you want to climb and take the necessary steps to evolve who you are to get there. It's about staying true to the essence of who you are, and then recasting your image to feel brand new."
STEP 7: Reel in Your Unique Power. It's easy to succeed when things are going right. What determines real character is what you do when faced with adversity. To muster the strength to succeed, look back at other times in your life when you rose to the occasion. You'll realize how brave you really are!
"Uncertainty makes everyone question their personal value and the value of their skills," says Roffer. "However, the fearless among us overcome these doubts by practicing their ABCs—action, belief, and courage."
"It's time to stop wringing your hands and start raising the bar on who you can be and where you can go," says Roffer. "The way you see yourself can either propel you forward or hold you back. When you start going after jobs, remember, the story that you tell about yourself is what others will believe. Use your unique power to make them believe that you are indispensable and that is exactly what you will be!"
What do you think? Post your comments below.
It happened. Your worst recession nightmare came true. You strolled into work securely (if unenthusiastically) employed and stumbled out, pink slip in hand, jobless in an overcrowded market. Gripped by the fear of not being able to pay the bills and worried that opportunity won't knock twice in this down economy, you rush into the first job your quickly updated resume leads to. Sure, you might end up being just as unhappy as you were before, but at least the check coming every two weeks will keep you from becoming destitute. However, Robin Fisher Roffer stresses that even in these difficult times you shouldn't confuse activity with progress.
She says that whether you're newly laid off or simply desperate for a career change, if you change your focus from just keeping your head above water to becoming a fearless fish and going after the job you truly want, you'll be setting yourself up for a happier life in the long run.
You're probably thinking, But wait! Isn't this the worst possible time to pursue the new career I've dreamed about?
"Not at all," says Roffer, author of The Fearless Fish Out of Water: How to Succeed When You're the Only One Like You. "Actually, it's the perfect time to search your soul, muster your courage, and become a fearless (career changing) fish out of water. That may mean finding your dream job, entering a new industry, or even venturing out on your own as an entrepreneur."
Despite the bad economy, Roffer stresses that opportunities do exist. That's why she says it's more important than ever to create a personal brand identity and to shine a light on those qualities that make you different and more desirable than the rest. Playing up what makes you special could be the very thing that gets you your next job and keeps you in business.
In her new book, Roffer teaches that—contrary to popular belief—standing out is a good thing. Being different gets you noticed and it's the first step to gaining influence.
"Your unique personality, outlook, appearance, or background—really, any attribute that sets you apart—is not a liability but an asset," says Roffer. "If you're looking for a new job or just want to make the career change you think will make you happier, there's never been a more important time to put your unique self out there."
Read on for Roffer's seven steps to being a fearless fish out of water and how they can help you get the job you've always wanted, even in a down economy:
STEP 1: Go Fishing for the Real You. No one knows what's special about you better than you do. So, don't squander it...focus on it! In today's economy, there's no room for generalists. We are in an era of specialization—where being different is good. As a free agent making a significant career change, you've got to put a flag in the ground and declare who you are and what you're good at. If you haven't done this, I promise that others have done it for you. But, they might have gotten you wrong. And, that's the danger.
"To write your next chapter, peel away all the layers you've built up playing the game for others and hone your skills to become an expert at something that's valuable right now," says Roffer. "Perhaps you've been in marketing at a big company and you want to break out and start your own firm. Think about what makes you special in the marketing arena and go with that. For example, maybe you can market any kind of product or service, but where you really excel is in multicultural marketing. If that's your vein of gold, and where you can drive revenue to your client's bottom line, then that's where you might want to place the focus of your new business."
STEP 2: Use Your Differences as a Lure. If you've gotten the pink slip and some severance pay, the natural tendency in extraordinary economic times like these might be to just hunker down, cut back on expenses, and try to hold on to the money. Newsflash! That's exactly the strategy that could hang you in the long run. Because if you're not standing up, standing out, and standing for something important right now, you will become irrelevant.
"Ask former colleagues, clients, customers, and friends what they think makes you positively different at work," says Roffer. "What qualities do you possess that attract people to you and the work you produce? Use the strengths of what makes you different to find your career destiny. Choose a path that feeds your passion and builds on who you are deep inside. Don't just do the logical thing or the expected thing. Do what resonates with your soul. When you do what you love, you'll get positive recognition and the money will come."
STEP 3: Find a Few Fish Like You. Next you'll need to build relationships and make connections. Finding people who have faith in you is like finding an anchor in rough seas. Now is the time to connect with others in your situation who believe in your dream and can cheerlead you on. Start attending luncheons, trade shows, or seminars in the industry you want to be in to find people who share your passion. Find out how you can help each other get ahead in these difficult times.
"Hire a business coach or find a mentor who can help you strategize your transition," says Roffer. "Reward cheerleaders in your personal and professional circles for their loyalty and support and let go of naysayers and time wasters whose negativity will only hold you back. This is the moment to deepen positive relationships to ensure your security and your future."
STEP 4: Swim in Their Ocean Your Way. One way to differentiate yourself from the pack and stay true to the core you is by the way you dress. Put on what's acceptable in your industry and then kick it up in unexpected ways to become unforgettable. Every great brand has packaging that reflects what's on the inside. Think in those terms the next time you go shopping. Does a dress say "school teacher" when it needs to say "business development"? Does your computer bag say "accountant" when it needs to say "web designer"? Are you wearing a golf shirt when a tie would speak volumes about your business acumen? Bottom line: Look the part you're playing and you'll play it better.
"Once you get inside your new company, adopt the culture without getting lost in it," says Roffer. "As a person in transition, who feels like a fish out of water, it can be deadly to get so entrenched in someone else's culture or demands that you can't find the real you. Instead look for what resonates with you and don't buy into what doesn't feel right. Stay true to your core values. If you don't, at the end of this recession, you may not recognize yourself."
STEP 5: Put Yourself Out on the Line. Fearless fish are perfectly positioned to make a difference in the world. Think of Oprah, Bono, and Bill Gates. It's not the wallflower who's going to help their customers go green, or the conformist who will invent the new business model. Getting behind a cause is good for business and makes you look like a hero. Volunteer, join a board, make a major donation.
"Each year a percentage of my company's revenue goes to The Aquarium of the Pacific to save our oceans and the animals that live there," says Roffer. "We put that fact right on our invoices. It makes our customers feel good about working with us. Figure out a way to give back as you transition to your new career. Or better yet, choose a career that is a cause! You may be paralyzed by fear and feel like every minute you need to push that rock up the hill. But shake it off. Give to others instead and watch what you receive in return."
STEP 6: Evolve by Casting a Wide Net. Conformity is not distinguishing. The way to live deeply is to keep reinventing yourself, changing with the times and with your customers. Holding onto the essential you while updating your style, your website, your advertising, and your thinking is the fastest way to the top. Step 6 of being a fearless fish asks that you use your place outside the circle to always be relevant to your company and industry.
"If you've been pigeonholed, now is the time to change perception by learning a new language, taking classes that will sharpen your skills, becoming an apprentice to someone you aspire to be like, and polishing your web presence so that you shine online," says Roffer. "Identify the next peak you want to climb and take the necessary steps to evolve who you are to get there. It's about staying true to the essence of who you are, and then recasting your image to feel brand new."
STEP 7: Reel in Your Unique Power. It's easy to succeed when things are going right. What determines real character is what you do when faced with adversity. To muster the strength to succeed, look back at other times in your life when you rose to the occasion. You'll realize how brave you really are!
"Uncertainty makes everyone question their personal value and the value of their skills," says Roffer. "However, the fearless among us overcome these doubts by practicing their ABCs—action, belief, and courage."
"It's time to stop wringing your hands and start raising the bar on who you can be and where you can go," says Roffer. "The way you see yourself can either propel you forward or hold you back. When you start going after jobs, remember, the story that you tell about yourself is what others will believe. Use your unique power to make them believe that you are indispensable and that is exactly what you will be!"
What do you think? Post your comments below.
Monday, April 20, 2009
Increased Fraud During Economic Crisis
Posted by Mark Brousseau
Intense financial pressure during the economic crisis has led to an increase of fraud, according to a survey of fraud experts conducted by the Association of Certified Fraud Examiners (ACFE). The survey also found that layoffs are leaving holes in organizations' internal control systems.
More than half (55.4 percent) of respondents said that the level of fraud has slightly or significantly increased in the previous 12 months compared to the level of fraud they investigated or observed in years prior. Additionally, about half (49.1 percent) of respondents cited increased financial pressure as the biggest factor contributing to the increase in fraud, compared to increased opportunity (27.1 percent) and increased rationalization (23.7 percent).
“The message to Corporate America is simple: Desperate people do desperate things,” said ACFE President James D. Ratley, CFE. “Loyal employees have bills to pay and families to feed. In a good economy, they would never think of committing fraud against their employers. But especially now, organizations must be vigilant during these turbulent times by ensuring proper fraud prevention procedures are in place.”
The study also found that:
... Employees pose the greatest fraud threat in the current economy. When asked which, if any, of several categories of fraud increased during the previous 12 months, the largest number of survey respondents (48 percent) indicated that embezzlement was on the rise.
... Layoffs are affecting organizations’ internal control systems. Nearly 60 percent of CFEs who work as in-house fraud examiners reported that their companies had experienced layoffs during the past year. Among those who had experienced layoffs, almost 35 percent said their company had eliminated some controls, while 44.2 percent said the layoffs had no effect on controls and only 3.2 percent said their company had increased controls.
... Fraud levels are expected to continue rising. Almost 90 percent of respondents said they expect fraud to continue to increase during the next 12 months. Additionally, the fraud most expected to increase is embezzlement.
What do you think? Post your comments below.
Intense financial pressure during the economic crisis has led to an increase of fraud, according to a survey of fraud experts conducted by the Association of Certified Fraud Examiners (ACFE). The survey also found that layoffs are leaving holes in organizations' internal control systems.
More than half (55.4 percent) of respondents said that the level of fraud has slightly or significantly increased in the previous 12 months compared to the level of fraud they investigated or observed in years prior. Additionally, about half (49.1 percent) of respondents cited increased financial pressure as the biggest factor contributing to the increase in fraud, compared to increased opportunity (27.1 percent) and increased rationalization (23.7 percent).
“The message to Corporate America is simple: Desperate people do desperate things,” said ACFE President James D. Ratley, CFE. “Loyal employees have bills to pay and families to feed. In a good economy, they would never think of committing fraud against their employers. But especially now, organizations must be vigilant during these turbulent times by ensuring proper fraud prevention procedures are in place.”
The study also found that:
... Employees pose the greatest fraud threat in the current economy. When asked which, if any, of several categories of fraud increased during the previous 12 months, the largest number of survey respondents (48 percent) indicated that embezzlement was on the rise.
... Layoffs are affecting organizations’ internal control systems. Nearly 60 percent of CFEs who work as in-house fraud examiners reported that their companies had experienced layoffs during the past year. Among those who had experienced layoffs, almost 35 percent said their company had eliminated some controls, while 44.2 percent said the layoffs had no effect on controls and only 3.2 percent said their company had increased controls.
... Fraud levels are expected to continue rising. Almost 90 percent of respondents said they expect fraud to continue to increase during the next 12 months. Additionally, the fraud most expected to increase is embezzlement.
What do you think? Post your comments below.
Thursday, April 9, 2009
Falling Tech Demand
Posted by Mark Brousseau
Business outlays for IT equipment and software have slid as a share of the U.S. economy, according to statistics from the Bureau of Economic Analysis. U.S. companies' tech spending as a share of the gross domestic product (GDP) is now below that of the 2001-02 tech bust, the bureau says. The good news: the 75 technology companies in the S&P 500 held $138 billion in cash at the end of 2008, a drop of less than 2 percent from the fourth quarter of 2007, according to Capital IQ, BusinessWeek.
Business outlays for IT equipment and software have slid as a share of the U.S. economy, according to statistics from the Bureau of Economic Analysis. U.S. companies' tech spending as a share of the gross domestic product (GDP) is now below that of the 2001-02 tech bust, the bureau says. The good news: the 75 technology companies in the S&P 500 held $138 billion in cash at the end of 2008, a drop of less than 2 percent from the fourth quarter of 2007, according to Capital IQ, BusinessWeek.
Wednesday, April 1, 2009
Recovery in Sight for IT Spending?
Posted by Mark Brousseau
The U.S. recession keeps getting worse than Forrester and many economists had expected.
Instead of the 2 percent to 3 percent drop in real gross domestic product (GDP) that the United States experienced in the 1990s and 2001 to 2002 recessions, U.S. real GDP fell by more than 6 percent in the fourth quarter of 2008, and will fall by a similar amount in the first quarter of 2009, with more (although lesser) declines until the end of 2009, Forrester predicts.
The steep drop in economic growth in the fourth quarter both caused and reflected a similar fall in technology purchases, Forrester said. As a result, the research firm now expects U.S. business and government purchases of IT goods and services to decrease by 3.1 percent in 2009, compared with the 1.6 percent increase it had previously projected for the year.
Computer equipment purchases will continue to bear the brunt of cutbacks in technology investment, Forrester says, but purchases of network equipment, software licenses, and IT consulting services will also drop.
As the US economy starts to recover in late 2009, Forrester believes IT purchases will revive strongly, with strong growth projected for 2010.
What do you think? Post your comments below.
The U.S. recession keeps getting worse than Forrester and many economists had expected.
Instead of the 2 percent to 3 percent drop in real gross domestic product (GDP) that the United States experienced in the 1990s and 2001 to 2002 recessions, U.S. real GDP fell by more than 6 percent in the fourth quarter of 2008, and will fall by a similar amount in the first quarter of 2009, with more (although lesser) declines until the end of 2009, Forrester predicts.
The steep drop in economic growth in the fourth quarter both caused and reflected a similar fall in technology purchases, Forrester said. As a result, the research firm now expects U.S. business and government purchases of IT goods and services to decrease by 3.1 percent in 2009, compared with the 1.6 percent increase it had previously projected for the year.
Computer equipment purchases will continue to bear the brunt of cutbacks in technology investment, Forrester says, but purchases of network equipment, software licenses, and IT consulting services will also drop.
As the US economy starts to recover in late 2009, Forrester believes IT purchases will revive strongly, with strong growth projected for 2010.
What do you think? Post your comments below.
Tuesday, March 31, 2009
Improving Business Processes in a Challenging Economy
Posted by Mark Brousseau
In the midst of deepening budget and staffing cuts, the critical importance of effective enterprise information management has never been greater.
"Now more than ever, organizations need to find ways to automate business processes, connect people and ideas more economically, reduce legal and regulatory exposure, and improve information access and business performance transparency," said Tom Bliss, Group Conference Director, Questex Media, producers of the AIIM International Exposition + Conference.
During a presentation at the event, Whitney Tidmarsh, vice president of EMC, said, "In 2009, IT will face even more increasing pressures and CIOs will be scrutinized for their ability to deliver better business efficiency, risk reduction and more rapid ROI. At the same time, employees, partners and customers are demanding transparency and a more open flow of information enabled by social networks and collaborative Web 2.0 applications. Faced with an explosion of user-generated data and increased information sharing, organizations are challenged to protect and retain this information and somehow generate value from it."
Notwithstanding the challenges businesses are facing, this is a unique environment to make competitive gains by harnessing the value of IT investments, knowledge management tools, and people, Kurt Delbene, vice president, Office Business Platform Group for Microsoft said during another presentation. Delbene said a company’s ability to streamline and increase efficiencies, keep know-how within a company, retain and attract customers, and keep top talent in this highly competitive environment will determine how it will fair through this tough economic period.
What do you think? Post your comments below.
In the midst of deepening budget and staffing cuts, the critical importance of effective enterprise information management has never been greater.
"Now more than ever, organizations need to find ways to automate business processes, connect people and ideas more economically, reduce legal and regulatory exposure, and improve information access and business performance transparency," said Tom Bliss, Group Conference Director, Questex Media, producers of the AIIM International Exposition + Conference.
During a presentation at the event, Whitney Tidmarsh, vice president of EMC, said, "In 2009, IT will face even more increasing pressures and CIOs will be scrutinized for their ability to deliver better business efficiency, risk reduction and more rapid ROI. At the same time, employees, partners and customers are demanding transparency and a more open flow of information enabled by social networks and collaborative Web 2.0 applications. Faced with an explosion of user-generated data and increased information sharing, organizations are challenged to protect and retain this information and somehow generate value from it."
Notwithstanding the challenges businesses are facing, this is a unique environment to make competitive gains by harnessing the value of IT investments, knowledge management tools, and people, Kurt Delbene, vice president, Office Business Platform Group for Microsoft said during another presentation. Delbene said a company’s ability to streamline and increase efficiencies, keep know-how within a company, retain and attract customers, and keep top talent in this highly competitive environment will determine how it will fair through this tough economic period.
What do you think? Post your comments below.
Thursday, March 5, 2009
Leadership in Chaotic Times
Posted by Mark Brousseau
An interesting article from Monday's USA TODAY:
Chaotic economic times call for CEOs to show optimism
Management consultant Ram Charan has had the ear of dozens of Fortune 500 CEOs. A native of India, Charan received a Harvard MBA after getting an engineering degree from Banaras Hindu University. He is known for living in hotel rooms and without an apartment for much of his career, traveling from meeting to meeting with top executives. Charan, 67, spoke last week to USA TODAY corporate leadership reporter Del Jones. Following are excerpts, edited for clarity and space.
Q: Publicly, CEOs seem worried about the economy. Privately, are they frightened to death?
A: When somebody (such as Moody's or Standard & Poor's) calls the CEO and tells them their bond rating is on watch, it causes a huge anxiety. Most companies cannot escape a warning, and so they are anxious. They worry if their customers will pay, if their suppliers will go bust. They are watching accounts receivables daily and with intensity.
Q: Should they be expressing their fear to employees and shareholders, or is it best to put on an optimistic face?
A: Leadership is judged in times of crisis. They must be optimistic about weathering the storm, that solutions will be found. But don't sugarcoat. Figure out what the reality is, and communicate that reality. Give everyone the facts. Engage employees in defining problems and solutions.
Q: What steps are you telling them to take?
A: It's largely out of their hands. About 10 people in Washington need to come up with a coordinated plan. Everything is being done piecemeal. Unless these Washington guys deal with it, there's not much companies can do.
I just came back from India, and government action there is much more coordinated.
Q: There's nothing corporate leaders can do?
A: They must manage cash. Cash is king, and corporate boards should build in the incentives of cash and financial safety. Companies must raise cash so that when it's time to do refinancing they don't get shut out of the commercial markets. Companies that can't raise cash need to merge, and they need to do it before the 11th hour.
Q: Some companies, such as Intel, are well known for expanding into past downturns and being better positioned than competitors when the economy turned. Isn't this one of those moments in history to take a chance?
A: Under certain circumstances, but do not take risks with cash.
An interesting article from Monday's USA TODAY:
Chaotic economic times call for CEOs to show optimism
Management consultant Ram Charan has had the ear of dozens of Fortune 500 CEOs. A native of India, Charan received a Harvard MBA after getting an engineering degree from Banaras Hindu University. He is known for living in hotel rooms and without an apartment for much of his career, traveling from meeting to meeting with top executives. Charan, 67, spoke last week to USA TODAY corporate leadership reporter Del Jones. Following are excerpts, edited for clarity and space.
Q: Publicly, CEOs seem worried about the economy. Privately, are they frightened to death?
A: When somebody (such as Moody's or Standard & Poor's) calls the CEO and tells them their bond rating is on watch, it causes a huge anxiety. Most companies cannot escape a warning, and so they are anxious. They worry if their customers will pay, if their suppliers will go bust. They are watching accounts receivables daily and with intensity.
Q: Should they be expressing their fear to employees and shareholders, or is it best to put on an optimistic face?
A: Leadership is judged in times of crisis. They must be optimistic about weathering the storm, that solutions will be found. But don't sugarcoat. Figure out what the reality is, and communicate that reality. Give everyone the facts. Engage employees in defining problems and solutions.
Q: What steps are you telling them to take?
A: It's largely out of their hands. About 10 people in Washington need to come up with a coordinated plan. Everything is being done piecemeal. Unless these Washington guys deal with it, there's not much companies can do.
I just came back from India, and government action there is much more coordinated.
Q: There's nothing corporate leaders can do?
A: They must manage cash. Cash is king, and corporate boards should build in the incentives of cash and financial safety. Companies must raise cash so that when it's time to do refinancing they don't get shut out of the commercial markets. Companies that can't raise cash need to merge, and they need to do it before the 11th hour.
Q: Some companies, such as Intel, are well known for expanding into past downturns and being better positioned than competitors when the economy turned. Isn't this one of those moments in history to take a chance?
A: Under certain circumstances, but do not take risks with cash.
Sunday, February 15, 2009
More Fed Layoffs
Posted by Mark Brousseau
An item from Saturday's Baltimore Sun:
The Federal Reserve Bank of Richmond said 55 employees in Baltimore will be laid off because the Fed is shutting down the check-processing operations in April.
The move is part of a consolidation of nearly two dozen check-processing facilities into four initially announced in 2007 as paper check volumes declined due to the increase of credit and debit card payments. Since that time, paper check volume has continued to fall, resulting in the Federal Reserve Bank of Cleveland serving as the single paper check processing site by the end of 2009.
An item from Saturday's Baltimore Sun:
The Federal Reserve Bank of Richmond said 55 employees in Baltimore will be laid off because the Fed is shutting down the check-processing operations in April.
The move is part of a consolidation of nearly two dozen check-processing facilities into four initially announced in 2007 as paper check volumes declined due to the increase of credit and debit card payments. Since that time, paper check volume has continued to fall, resulting in the Federal Reserve Bank of Cleveland serving as the single paper check processing site by the end of 2009.
Wednesday, February 11, 2009
Cost Reduction Driving Solutions Sales
By Mark Brousseau
The current economy is creating additional impetus for expense reduction and service improvement, says Bob Lund (rlund@egisticsinc.com), chairman and CEO of Dallas-based eGistics, Inc., and vice chairman of the TAWPI Board of Directors.
“Every solution that you are going to install has to have a cost reduction element associated with it,” Lund told me. “Increasing functionality without improving productivity isn’t going to get you there.”
What do you think? Post your comment below.
The current economy is creating additional impetus for expense reduction and service improvement, says Bob Lund (rlund@egisticsinc.com), chairman and CEO of Dallas-based eGistics, Inc., and vice chairman of the TAWPI Board of Directors.
“Every solution that you are going to install has to have a cost reduction element associated with it,” Lund told me. “Increasing functionality without improving productivity isn’t going to get you there.”
What do you think? Post your comment below.
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