iPad having an Impact

Whether the iPad will change the nature of personal computing remains to be seen. However, it does seem to be having its impact. One area is in eBooks. Since its introduction into the US market a couple of months ago, the iPad has captured 22% of the market for eBooks. Also see this summary. Not as much as the Kindle, but clearly a contender.

In another article it is pointed out that iPad users are large consumers of downloaded data, consuming more than half of all the data at one location. iPad users in this test consumed 300 mg of data per week, compared to 31 mgs for the average phone user. That's significant and may be an early indicator of the stress that will be put on the internet with these new computing tools.

The remedy for this usage may be new payment schemes, that ensure that heavy users of data pay for it. That's probably the best way to ration out the data in a fair manner. Otherwise, people could be finding they face shortages of bandwidth for business purposes, which could lead to unforeseen changes in internet usage, including more data charges, higher prices, more (ugh) government regulation, etc.

There's a heads-up on this for everyone.

Better ERP Procurement 

"The procurement process for an enterprise resource planning (ERP) system can be long and complicated—involving a cross-functional team that represents business owners, technical experts and procurement and legal specialists. Typically, procurements for such back-office systems happen only once every 15 to 20 years—a “once-in-a-career” event for many who go through the process. Yet the complicated nature of these programs and their fundamental importance in keeping the state government running efficiently and effectively demand real expertise on the part of the state team.

"Given the infrequency of procurements of such scale within a typical government organization, however, such expertise can be hard to come by. Accenture has responded to literally thousands of requests for proposals (RFPs)—with hundreds in the public sector and, among those, dozens related to very large-scale, transformational programs. That experience has given us insight into commonalities among RFPs that position an organization for post-procurement success and sustainable high performance.

Accenture has developed this short paper to share these four guiding principles of strong ERP RFPs to help individuals new to the ERP procurement process.

Build Your Own VPN

Security and privacy are matters of continuing importance and are not going to go away. Virtual Private Networks (VPNs) are an important element of retaining security and privacy for many companies, but there are other - mostly small - companies that steer away from VPNs because of the perception they are expensive and difficult to maintain.

Such is not necessarily the case, however, and this linked article explains how even a small company can have its own VPN without expensive support staff and a lot of expense.

Making IT More Business Aware

One hangover from the pre e-revolution days is that in many companies, IT is still regarded as a support function. Sure, there has been a growing recognition of the business value of IT, and a strong trend to aligning IT strategies with corporate strategies, but there is still a residue (often large) of the old thinking.

Some companies, like Southwestern Airlines, Zappos and Vanguard have been doing it differently. The article referenced here is a summary of short case studies of those companies and what they are doing to integrate IT and their core business. One common feature for all three companies is that they have a process of job rotation between IT and line business functions. This has the effect of developing a strong business awareness among IT personnel about the business, the needs of customers and how to meet their needs more effectively. This knowledge translates into more effective IT applications. The companies use this and other means to ensure that all personnel are fully conversant with the business. As a result, there is less of an "us and them" attitude. All employees - IT and traditional line business - become part of the same group, with the same goals. The business is indistinguishable from the IT function.

Other elements also play a role in integrating IT and line business. These include a focus on corporate culture that encompasses innovation and a recognition of IT as an innovation driver.

Companies that can think outside the box should pay attention to what these companies are doing. There is much business advantage to gain from moving beyond the idea of business/IT alignment to one of business/IT integration. For an article on the subject companies, click this link.

Making Good Use of Facebook

Companies have been struggling with how to make good business use of Facebook for some time. It's been a learning game for many and one thing that has been learned is that it is not enough just to open a Facebook account and start accepting friends and publish stuff about the company.

Making good use of Facebook is, in concept, not much different than making good use of any technology. You need to think it through by developing a strategy. The strategy must mesh with the corporate strategy because in this way, the use to which Facebook is put will be more likely to address specific corporate objectives.

A strategy is not enough, but it does point to the next important element - developing good content that will draw people in. That's a tough one, and experimentation is normally called for. One aspect of the content, however, is that people must, on encountering it, feel compelled to some sort of action. In other words, the content should be a call to action for the visitors. Again, easier said than done, but nevertheless important.

Companies have been learning about the effective use of Facebook and other social media., Ultimately, social media will be an integral part of most companies' strategic communications efforts.

For an interesting overview article of this important area, see this link.

Booksellers Embrace Amazon

While independent booksellers have long feared Amazon, they are now changing their view. Many of them are selling through the Amazon website and some of them are having some real success. It's a change that might have legs, and might point the way to a new business model for the industry.

People who sell books over the Internet are finding that Affiliate marketing seems to work the best. This method involves splitting the sales revenues with an affiliate, but in exchange gaining access to a wider market. Often, the split goes as high as 50%.

With Amazon, the split is normally 15%, which makes for a better deal. One downside, however, is that Amazon is so big that individual sellers can get lost in it. That means they still need to launch effective marketing campaigns. Nevertheless, some independent booksellers and making a success of it. Here's a write-up on this approach.

Google Crosses the Line

As the press has widely reported, Google has admitted to eavesdropping on the activities of thousands of WiFi users around the world and archiving the resultant information. To gather that information was an unrivaled display of moral turpitude, electronic recklessness and arrogance. The kind of activity by a large corporation that should raise our hackles and put us to full upright attention as to the state of morality and ethics in the e-world, in the corporate world or both. Fortunately, they (say that they) did not make use of the information, and have volunteered to delete it. However, in recognition of pending lawsuits, they are holding it until they gain legal permission to get rid of it.

Many have expressed concern about the potential of the information age to turn into a "Big Brother" world, where the activities of citizens are monitored and eventually controlled by superpower corporate/government overlords. Some of those expressing dire warnings have been derided as being paranoid. But there is no doubt that the potential is there and will only be avoided by the constant vigilance of all citizens - everyone. So pay attention to where your data is going. Pay attention to the laws that govern the collection and use of private information. Make sure that private information is kept private through clear and powerful legislation and diligent regulators. It's important!

The Revolution is Coming

Google is going to introduce its new technology to create internet-capable television this week at the Google Developer Conference in San Francisco. Unless they botch it totally, this will be the biggest success that Google has ever undertaken. Even if they fail they will succeed, because the convergence of the internet and television has been inevitable since the World Wide Web got under way in the early 90s. Almost every internet observer in the world has predicted this to happen. The wonder is that it has taken so long.

But then a number of ducks had to be lined up. One was the availability of broadband to a critical mass of households. This is pretty much there. Another has been the availability of TVs that can handle the high density signals - we're there. Another has been the availability of television shows on the internet. Here there is work to do. Much television is now available on the internet, and some people have cancelled their cable subscriptions to watch their TV exclusively on their computers. But generally, so far, this has been a preserve of the more technically minded, since it takes some surfing dedication to find the shows, and many of them are archived rather than live.

But all this can change in a heartbeat if the public twigs to the tremendous flexibility and range of internet based TV.

Lets face it,. Television has played a huge role in shaping our culture. If we re-shape television, it will reshape out culture. Maybe make it more international, more inclusive. More understanding of other cultures. Maybe even lead to more convergence of global cultures.

We are heading into interesting times.

Oh, and if Google somehow drops the ball, someone else will pick it up. For a good overview article see the Times. For more on the Developer Conference, see its site.

Managing Risk in 2010

Ernst & Young issues reports from time to time on Risk Management - reports that are timely, well written and well researched. Their current reports include:

1.Top privacy issues for 2010
2.The top 10 strategic risks for business
3.Future of risk: Protecting and enabling performance
4.Manage risk in the current climate

All of these reports can be downloaded from their website.

Moving to the Cloud

The big thing about cloud computing is that applications can be run from a remote server from everywhere as long as there is internet access. Also, data can be stored there, which may raise concerns about security, but does help in resolving many of the issues about data recovery, since the major cloud vendors have great back-up systems. On the other hand, many of the traditional desktop solutions, like Microsoft Office, still outperform the applications available on the cloud.

So moving a business to the cloud requires some careful planning, and the development of a good strategy. Most likely the strategy will involve leaving some apps on the desktop and moving others. Some good points about these considerations are in this linked article.

Australian Broadband Model Worth a Look

The Australian government has committed some $43 Billion to building a fiber based network that will reach 93% of Australian homes. The initiative also provides for access by rural homes that can't be joined to the new fiber network.  Of course, the initiative treads on the toes of the ISPs in the country, who have developed the large network already in place.

The Australian initiative looks, on the face of it, like big government taking over business activities that are best left to business. However, there are good arguments for this approach. For example, the internet is becoming the core of communications in many advanced countries, and that trend is growing with the convergence of television  and the internet, the spread of VOIP for telephone and the use of social media for various communications in society.

This raises a question as to whether the whole system can safely be left to private business interests, who will pursue the development of the networks that will yield the highest profits, but will not necessarily ensure that most people in the country are connected to the means of communication. On the other hand, one can argue that private interests built the telephone system and most people in the country have access to telephones. The argument is weakened by the fact that the telephone industry has been heavily regulated.

Either way, the Australian model may not necessarily be the answer, but it is worth considering as a way to ensure that all (or virtually all) citizens have the means to communicate with each other. See a write-up about the Australian initiative in this article.  

Pearson Airport Announces Massive Outsourcing Deal

Toronto's Pearson airport has announced a $130 million deal under which it will outsource all its IT operations to IBM. This includes all the systems that the airlines use to service customers. Under the arrangement, IBM will bill the airlines directly as distinct from the current arrangement under which the airport bills the airlines through landing fees.

"The driver behind the partnership for GTAA," said an airport spokesperson, "stems from the organizations overall strategy to identify the business value of technology in various areas including data risk management and strategic outsourcing." An interesting question for discussion is " How does the outsourcing deal help to identify the business value of technology?" 

The answer centers around the fact that the value based strategy seeks to identify and rationalize IT usage on a business value basis, as billings will be based on business metrics. The arrangement will provide an incentive to the airlines to uitilize IT where it makes the most sense from a business viewpoint, such as the use of kiosks rather than staffed checkpoints.

One open question that arises, however, is whether the provision for flexibility in IT configuration between airlines is consistent with a need to achieve the degree of standardization that can ensure a secure system. No doubt IBM has worked through that issue.

For a write-up on this case, please click this link.

Real Time Collaboration

A new edition of Google Docs takes a new approach to collaboration on documents in process. Collaborative tools so far, like wiki's and Sharepoint have taken a traditional approach of locking out a document or the part that is being edited, so that the actual changes being made cannot be seen until they are completed. In Google Docs, however, this is changing and it is possible to see changes being made in real time. Google thinks this will result in more efficient document completion when groups are involved. They draw an analogy to personal productivity when word processing on computers was introduced, enabling real time editing. An article on Google Docs and Collaboration is in Informationweek. Here's the link.

ERP Implementation is Still Problematic

A decade after a rash of high profile stories about disastrous ERP implementations, including the legendary Hershey debacle, ERP implementation is still a problem. A recent study released by Panorama Consulting Group reveals that  "More than 35 per cent of respondents overall said their projects took longer than expected; just 21.5 per cent reported shorter-than-anticipated project times. Forty-three per cent said the projects were completed on schedule.

"Thirty percent of Tier I (the big players like SAP and Oracle) projects had time overruns, compared to 18 per cent for Tier II and 5 per cent for Tier III.

"51.4 per cent of projects overall ended up going over budget, with 40 per cent meeting expected costs. Only 8.6 percent came in at a lower price tag than planned."

These being ERP projects, we're talking big numbers in many cases.

One strategy that has gained some traction in the past few years has been the use of SAAS solutions. They effectively avoid the new for full scale internal implementation. Some of the same problems will remain, such a need to retrain staff, but without a complete implementation to worry about, more time can be devoted to these sensitive areas. A report on the Panorama Study can be found on IT World.

Television in the New World

Hulu, purveyor of online television, has been reconsidering its business model. So far, it has offered up content free, and obtained its revenue from advertising. A time honoured business model and a popular one on the Web.

The world keeps changing, however, and there are signs that this business model will need to change. The concept of online TV and movies and other videos has been catching on lately. Many people like to watch TV and videos on their computers, and more are now watching them on their smart phones and "Blackberry's. With the high resoluton possible on premium mobile devices, TV and movies become very watchable.

The problem for the advertising model when people want to watch on their handhelds is, of course, airtime and data cost. Nobody wants to spend money to watch commercials. So Hulu is considering going to a subscription model.

A subscription model would work well, provided it is carefully thought out. Hulu will have several options, They can run a subscription model along with an advertising model, and let customers decide which they want to use. Those with Blackberry's will be able to watch TV and movies without enduring ads, while students with limited funds will be able to choose the advertising option. Hulu could also offer those who pay for the subscription route some premium content to make their investment worthwhile. There's more in this article.

Publishing - an Industry Undergoing Monumental Change

Traditional publishing is a broken model. From a business point of view, most of the money from books gets sucked up by the publishers, agents, publicists and others. The authors are left with very little and unless they sell like John Grisham, can only make a pittance on their books even if they sell thousands of copies.

From the customer perspective, many books are overpriced. The classic example is textbooks, which still follow a traditional format, and students get charged between 1 and 2 hundred dollars for a beautifully bound book that in many disciplines is doomed to obsolesence within a year or two. The beauty of the binding does not necessarily bear a relationship to the quality of the content.

The growing phenomenon of e-books is not the answer, although they can provide a part of the solution. What we have creeping into the scene is a new type of publishing, often based on self-publishing, which channels publications to all the eBook technologies out there, like Kindle, Kobo, Mobo, even PDF. They also use print on demand techniques, which avoid the need to carry inventories.

The new types of publishers, like Createspace and Fastpencil (these two examples are quite different from each other) also pay the authors a lot better, more like 80% of the proceeds rather than 5 - 10% in royalties. Also, they can produce books much faster, a matter of a month or so, rather than the traditional year or two required by traditional publishers. Indeed, with traditional publishers many books are obsolete before they hit the street.

Public acceptance of this trend is lagging, but will undoubtedly catch up over the next year or so. People are looking for new ways to consume their books, and they want to pay less and have more flexibility. The new wave of publishers will meet those needs. In the process, the business models of the traditional publishing industry will be shaken to its very core. An interesting interview with Steve Wilson, CEO of Fastpencil, is featured in Knowledge @Wharton this week.

Public Transit Goes Live

Waiting for the bus or train is about to take on a technological flair and may be a little more bearable and less frustrating. That's because people will be able to track the train or bus they are waiting for with their smartphone or blackberry. At least it should remove some of the suspense. Where is that bus? And how long will it be until it gets here?

New York and Philadelphia are both testing new real time tracking systems. Swiss railroads already have a real time tracking system in place. Applications for various hand-helds are being offered and developed. It should be a help to public transit. And it should make public transit a bit more efficient for those harried commuters. For a write up on this and also for some links to the test sites, check here.

Real Time Search - The New Wave?

We've gotten used to using the web for searching. Have a question? Just google it. Its amazing how quickly one can learn about something with a couple of nicely worded searches.

But that may become obsolete. Both Google and Microsoft are working on new search tools that will draw upon data streams in social media, like Facebook and Twitter.

Your first thought might well be - But there is so much garbage in those sites. How can you find information that is useful and relevant - and perhaps more importantly, reliable?

The answer comes from looking at information identification in a whole new way. Social media can quickly identify what is on people's minds. It can almost instantly reveal the views of a wide swath of people on a particular topic. It can lead a researcher into avenues of enquiry that might not have been pursued using conventional techniques. It won't replace the solid, detailed knowledge on a topic that can only be obtained by going to established and original sources. But it can provide a pathway to consider, and give a profile on a development. Many people, for example, are using Twitter in particular to track the effects of the ash cloud currently enveloping Europe. It gives them a perspective that the normal news media provides only with more difficulty.

But you need to be patient using this method because at present it requires you to read through a lot of irrelevant and questionable chatter. Here's where the real time search tool comes in. It uses algorithms to sort out the chatter and enable the users to more quickly get to the root of a matter. It can lead to a new way of finding information.

Privacy Concerns are not Going Away

A recent research report by a group of researchers at the University of California, Berkeley and the University of Pennsylvania points to an amazing similarity in attitudes between younger generations and those older folk. The survey drew responses from several age groups, ranging in age from under 19 to over 65. Many of the responses showed similar levels of concern about sharing private information on the internet, with refusals to show certain kinds of information almost exactly the same across the different age groups. This flies in the face of common assumptions about the attitudes of young people towards internet privacy and points to the prospect of a continuing concern in the populace about privacy as that generation ages. In fact, the survey shows that the younger generation has more faith in the government to protect them. As they grow older and realize that the government offers little protection, perhaps there will also be widespread calls for more government action in this area. Here's a summary of the report.

Cloud Computing - Is it Real?

Much hype has been directed to cloud computing over the last year or two. But there are still people who dispute it's reality and others who think it's the only way to the future. One thing can be said about the cloud - it is the Internet. That's the reaction of Larry Ellison, CEO of Oracle. He refers to the cloud as water vapour. Says we should get a grip.

Microsoft, on the other hand, with a huge vested interest in packaged software, has decided to embrace the cloud, recognizing that while there may be hype involved, something real is happening.

It's true that the cloud is the internet, but is it just the internet. There seems little question that the idea of cloud computing represents a new and different method of managing IS architecture, indeed a new architecture in itself. True, running applications from an offsite server is nothing new, but running them from internet based servers on a large scale and renting the time to do so is something relatively new, and could have major implications for business and for software vendors. Microsoft recognizes this and is responding. Oracle is in denial and runs the risk of being left out of the rush to the cloud. Here's a take on the strategies of the two companies.