BizAnalyst Network: IT Edge Update on Global Trends in Technology Management

Wednesday, November 23, 2005

IT Edge Update on Global Trends in Technology Management

SearchCIO.com: Project Expert: Straight Talk, Clear Channels
Richmond.com: Communication at Work: Six Tips for Getting Started
EContentMag.com: Connecting the Connectors

Silk to Silicon, the Road Ahead for India and China

Boston.com: Future technological growth in India and China will depend in large part on how the U.S. tech industry chooses to work with the two countries. A Forrester analyst interviewed in this article says there are three possible scenarios: The one with the most positive outcome is a scenario he calls Pax Indo-China, in which the two countries become business partners and essentially recreate the Silk Road trading route that wound its way through Asia centuries ago. Though the two countries would assume the lead in innovation, "the global pie gets bigger, and the United States retains its current share and maybe even grows its share," the analyst says. The other two scenarios are "the Chinese mirage," in which the country essentially implodes after the Beijing Olympics in 2008 and other countries take their business elsewhere, and the ominously named (and pretty self-explanatory) Cold War II.

ADDITIONAL READING:
United Press International: The Web: Chinese Economy Facing IT ThreatsDeccan Herald: Age of Cross PollinationThe McKinsey Quarterly: China's Looming Talent Shortage(Free registration required)
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Government CIO Role Needs Tune-up
CIO.com Australia: Noting the poor track record of large government IT projects, such as the IRS' botched effort to modernize tax collection, Gartner is urging the U.S. Congress to consider using reauthorization of the Paperwork Reduction Act as an opportunity to improve government IT. The article includes five strategies suggested by Gartner. Among them: Promote joint accountability for IT and non-IT execs so that the CIO does not become a scapegoat for broader business problems; give CIOs a greater role in budget decisions where IT capabilities are expected to be central to success; and use standardized CIO performance scorecards.

ADDITIONAL READING:
vnunet.com: From Private to Public
TechRepublic: CIO Challenges: Public vs. Private
Infoconomy: IT in the Public Sector

Technology Leaders Take Center Stage
Bank Systems & Technology: Click through to six profiles of tech execs at leading banks, and you'll see they are a pragmatic and business-focused lot. While technology plays a major role in banking, there is "less romance around IT today and more practicality," says Jean Davis, senior EVP and head of operations for Technology & E-Commerce at $512 billion Wachovia. Davis, who reports directly to Wachovia's CEO, says IT is the "one division that touches every aspect of the company and its customers." IT is "a means to attaining bigger objectives," says Webb Edwards, president and EVP, Services Company, for $435 billion Wells Fargo. The importance of IT in attaining broader business goals is a recurring theme that makes for interesting reading.

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A Hard Sell
Infoconomy: Electronic procurement tools did not live up to their early promise, largely because they focused too much on price at the expense of strategic value. A Forrester analyst says e-procurement applications have become a "mere electronic order-placement tool." E-procurement is now attracting interest again, however, because of its increasingly sophisticated capabilities. For instance, suppliers can communicate their pricing structures, rather than providing single quotes, which allows purchasers to factor in details like delivery date or location. In addition to comparing prices, the tools can also highlight areas for efficiency improvements. And now, as with other areas like CRM, e-procurement is available as a hosted service, which allows companies to give it a try without a lot of upfront investment.

Innovation in an Era of Caution
spiked: This article bemoans the current state of innovation, saying it has become a nearly meaningless "cultural affectation" and "advertising gimmick." The navel-gazing surrounding innovation has led to an emphasis on short-term success rather than long-term gain, the article says. Evidence of this is found in the proliferation of patents, which increasingly are used as an alternative to real — and often costly — R&D. Companies are trying to minimize the chances of failure at all cost — yet some of the biggest research breakthroughs (think penicillin) could be categorized as failures. In its fondness for processes and only expected outcomes, today's corporate culture runs the real risk of killing innovation.

Ten Biggest RFID Myths Debunked
Ferret Australia: With conflicting reports of RFID's value to the business, it's hard to know what to believe. Unfortunately, such uncertainty can result in wasted time, effort and money. This article cuts through the hype to address what it calls the 10 RFID "myths," providing straight-up answers for each. The issues that are covered here are the questions that get asked over and over again. Are there set standards for RFID? Will replacing bar codes with RFID tags provide an ROI? Will RFID replace bar codes entirely? Penned by Manhattan Associates' associate director of RFID solutions and strategy, it's one of the most concise and unbiased pieces we've seen on RFID.

3 QUESTIONS:Engineers Say They Get No Respect
With Kerry McClenahan, co-founder and principal of McClenahan Bruer, a Portland, Ore., advertising and public relations agency that conducts an annual survey of engineers in cooperation with CMP’s Electronic Engineering Times.

Question: Of the electronics engineers you surveyed, 90 percent said they did not believe the U.S. would maintain its leadership position in technical innovation. What were some of the factors they cited that they believe will contribute to the U.S. losing its edge?

McClenahan: It's really a combination of factors, some of which have been widely reported on, such as outsourcing, declining R&D funding, dwindling science and engineering graduates, and then a "hidden" factor that hasn't been put forth in the public dialogue: lack of respect and low valuation of the engineering profession. The research suggests that these factors are interrelated. For instance, the increase in outsourcing leads to a greater sense of instability and contributes to a perceived lack of appreciation among engineers. The sense is "I guess they don't think much of me or my contribution if they can just ship my job off to India or China." Lack of appreciation for the profession in our society in general also makes it a less appealing career to pursue. In essence, we don't value these technology creators. And that's pretty ironic, given that without them, we'd have no iPods or HD TVs, no cell phones, no pacemakers and weaker national security. One last point: The average age of U.S. engineers is 44, which means we'll have a large number of them leaving the workforce in the next 15 to 20 years. Unfortunately, the number of U.S. college graduates with degrees in science and engineering is dwindling, which contributes to this stark picture for the future.

Question: Eighty-four percent of the respondents said they thought their own jobs were at risk. What were some of the reasons they cited?

McClenahan: The increasing use of outsourcing and the changing complexion of outsourcing are the primary reasons engineers feel their jobs are at risk. Once upon a time, manufacturing jobs comprised the vast majority of outsourced work. Our research shows that today, 30 percent of all outsourced work is high-level software and high-end hardware design. For many years, the U.S. has consoled itself with the belief that no one can touch us when it comes to innovation; that our core competency is the creative, high-end design work. It appears while we can justifiably and proudly claim leadership in innovation, it is no longer our exclusive province. Increasingly, high-level work is happening overseas. Also on the increase is the number of science and engineering grads countries like India and China are producing each year. So while we are doing less of the high-level work than we've done in the past, other countries are doing more. And while we are graduating fewer students in science and engineering, other countries are increasing the graduation rate in those subjects. While we as a society don't necessarily value the profession as highly as we should, anecdotal evidence suggests that engineering is a profession held in very high esteem in other countries.

Question: Did any ideas emerge to help keep the U.S. in the innovation lead?
McClenahan: First and foremost, engineers would like to see greater emphasis on K-12 math and science education. They'd also like to see incentives — monetary or otherwise — for students enrolled in science and engineering degrees at the university level. Having a highly skilled workforce that can continue to create and innovate in the technology sector is vital to our participation, let alone leadership, in innovation. Fixing the curricula is a necessary step, but so is making science and engineering appealing disciplines and professions for tomorrow's technology innovators. Part of that can be done by changing the way we think about technologists in our society, even celebrating engineers for the essential contributions they make.

Also from IT Business Edge: Voice & Data Convergence
Voice & Data Convergence examines the strategic and tactical implications of emerging IP telephony technologies, from VoIP services to advanced CRM systems to security considerations. Find out what every IT decision maker should know. Click here to sign up!

By the Numbers
374
Spinoffs of companies based on college technologies in 2003, according to the Association of University Technology Managers.
Source: Forbes

79 percent
Chinese companies that reported being victimized by computer viruses in the last year, compared to 67 percent of their U.S. counterparts, according to Accenture Global Information Security.
Source: United Press International

4,583
Number of articles from 2000 to today in which the term "technological innovation" appears, found on a search of the LexisNexis database. The same term appeared in just 55 articles from 1970 to 1980.
Source: spiked

Breaking Headlines
Lawmakers Float New Fees on VoIP
Wi-Fi Planet: Under a proposal by Reps. Rick Boucher (D-Va.) and Lee Terry (R-Neb.), VoIP providers would have to pay into the Universal Service Fund (USF), a financial responsibility from which they are currently excluded. According to the legislators, VoIP has "rendered obsolete the current USF methodology of imposing payment obligations only on interstate and international calls." Under the proposal, all providers of services that use telephone numbers, IP addresses or functional equivalents in order to provide or enable real-time voice communications will contribute to the fund, which helps fund Internet access for schools, libraries and underserved rural areas. DSL, cable modem, WiMax and broadband over powerline providers would also be expected to pay into the fund.

U.S. Keeps Control of Internet
Telegraph.co.uk: The U.S. will maintain control of the Internet, thanks to a vote at a UN summit in Tunisia in which international governments agreed to let the California-based International Council for Assigned Names and Numbers maintain control of domain names and other technical issues. China, Iran and other countries had recently objected to ICANN's control, with some suggesting that an independent body made up of representatives from different governments should take over. The vote also created a new Internet Governance Forum, to allow for discussions of public policy issues.

MSN Rolls Enterprise-Strength Desktop Search
internetnews.com: Microsoft has released a new version of its desktop search tool that is designed to make the lives of sys admins a little easier. It will allow admins to set group policies and use Active Directory, choose whether to turn on the Windows deskbar, whether to launch the customization wizard at startup, and whether they want non-personally identifiable usage data to be reported through the Consumer Experience Improvement Program. It will also allow admins to introduce a feature allowing users to search company intranets, the Web and their desktops, all from the same application.

Emerging Trends
Now Comes the Hybrid CIO
Wisconsin Technology Network: One of the most obvious signs that IT has been successfully aligned with the business is when a company asks its CIO to lead a part of the business unrelated to IT. The author relates several instances of what he calls the "hybrid CIO," noting that the common thread in all of the stories is the exec's demonstrated ability to generate real business value with IT. While some may see such a hybrid role as just another sign that IT is being commoditized, he doesn't think so. Rather, he says, hybrid CIOs are able to distinguish between utility IT and strategic IT and, perhaps more important, sell the difference to upper management. A bonus: These hybrid types can help build a strong bridge between business and technology.

Jumpstarting Businesses with University Tech
Forbes: Qualcomm founder Irwin Jacobs started his career as a professor of engineering and computer science at schools like MIT and the University of California-San Diego. The foundation of the company's success lies in its ability to apply an advanced technology to a commercial problem. While relatively few companies have successfully transferred technology from the research lab into consumer businesses, those that have are certainly notable: Google, Cisco, Intel and Research in Motion. According to the Association of University Technology Managers, there were 374 spinoffs of companies based on college technologies in 2003. There are a number of tricky issues with this model, including ownership of intellectual property. The article offers advice for readers interested in pursuing this option.

IT and HR Leaders Must Implement IT Diversity Programs, Says Gartner
Tekrati: Variety is not only the spice of life; it may offer a competitive advantage. In an "increasingly diverse and complex business world," CIOs and other managers must learn to value diversity, says a Gartner research director. Employees with different characteristics, experiences and viewpoints will offer varied insights that companies can use to gain an edge. Gartner suggests a five-stage plan: Implement an assessment to help identify potential snags to a diversity effort; align the diversity strategy with business and IT strategies; determine the right approach for implementation; integrate diversity approaches with HR practices; and get buy-in from senior management.