CES 2011: Signs of an IT Resurgence
Today, IT is an essentially global market. Economic hardships and unemployment are certainly still problematic, but difficulties tend to be regionally focused or contained. In essence, while many countries and locales are hurting, others are doing just fine and want new IT toys. That, in turn, provides technology vendors a good deal of room for optimism in 2011.
The recent Consumer Electronic Show (CES) held in Las Vegas garnered the following observations.
First, vendors are increasingly attempting to inextricably link consumer products to business IT. Apple's (Nasdaq: AAPL) successful pitching of its phenomenally successful iPad as a business device is an example of this trend.
Though the iPad is clearly more appropriate for content consumption than creation, it certainly seemed (as did the iPhone before it) to be the techno-tchotchke of choice among business executives in 2010. I expect part of that success is due to Apple learning some hard, if valuable, lessons from the original iPhone, which you might remember was anything but enterprise-ready.
Second, the PC and notebook market has shifted dramatically toward consumers during the past decade. Though consumers purchased just 29 percent of PCs in 2000, they constitute 66 percent of the PC and notebook market today, according to Mooly Eden, VP and GM of Intel's (Nasdaq: INTC) PC and client group.
Not for Consumers Only
If that's the case, why are vendors still focusing so intently on businesses? Think direct, volume sales. There's nothing like executing tens of thousands of sales outside the traditional retail channel to healthily boost one's bottom line.
During the CES 2011 last week in Vegas there were many emerging consumer products and trends implied for business IT. While the show was chock-a-block with increasingly large/decreasingly costly 3D TVs and sophisticated audio toys, there were numerous products implicitly or explicitly aimed at the business market.
CES attendance was up -- some 14,000 more than last year -- and the crowd had a decidedly more global cast, with some 30,000 (the highest number ever) coming from outside the U.S. and Europe. I think the overall increased attendance suggests that despite lingering economic malaise, the IT industry is either feeling pretty good about its prospects or is doing a great job of pretending to do so.
The growth in CES attendees from across the world offers a reason for this: Today, IT is an essentially global market. Economic hardships and unemployment are certainly still problematic, but difficulties tend to be regionally focused or contained. In essence, while many countries and locales are hurting, others are doing just fine and want new IT toys. That, in turn, provides technology vendors a good deal of room for optimism in 2011.
The Business Side
Some of the highlights at CES 2011 that looks good for business are:
Intel's 2nd generation Core processors - In the course of a year, Intel has boosted overall compute performance by 60-plus percent, substantially enhanced onboard graphics, and improved power efficiency. That's great news for consumers but should also (in combination with Windows 7's success) continue to drive PC, client and notebook upgrades in thousands of organizations.
Maturing computing/media convergence - Intel's new Core processors (along with new chips from AMD (NYSE: AMD), Nvidia (Nasdaq: NVDA) and others) are inspiring terrific new PCs and notebooks from numerous vendors, including Dell (Nasdaq: DELL), HP (NYSE: HPQ) and Lenovo. On the consumer side, the big push seems to be in 3D-enabled products, but improved graphics performance also has implications for many business and product development processes. Expect to see business computers with increasingly sophisticated communications capabilities, too.
In fact, computer-enabled communications were very much in evidence at CES 2011. Two examples: 1) Vidyo, a video conferencing firm, introduced high-def multipoint solution for connecting mobile devices including laptops, iPads and smartphones (both Apple and Android-based) with enterprise room systems, and 2) Skype added group video calling to its new Premium package. The company said the new service is aimed at consumers and businesses alike, and can support up to 10 simultaneous users.
In the same vein, one of the most intriguing briefings I had at CES 2011 was with VoiceAssist, a company that develops speech recognition solutions for telephony. Along with the usual voice command dialing features familiar to most all cellphone owners, VoiceAssist allows users to listen and reply to email and text messages via headset-enabled mobile phones. Additionally, the company recently announced a partnership with Salesforce.com (NYSE: CRM) around Chatter by Voice, a new solution that supports standard VoiceAssist features and also allows clients to use voice to post to Salesforce/Chatter, Facebook and Twitter.
Global Reach
Finally, the increasingly global nature of IT and CES was clearly apparent in numerous market-specific products and solutions featured at the show. These included highly architected "home of the future" installations (which, perhaps not surprisingly, evoked numerous childhood visits to Disneyland and Tomorrowland), created by companies based in China. But the trend is also apparent in technology products, including PCs.
One standout there was HP's new DreamScreen 400, a budget, Linux-based touchscreen PC developed for consumers in India. Designed to be family-friendly, the DreamScreen 400 includes bundled productivity, news, educational and entertainment software and content.
It also offers office and communications applications, allowing users to manage business tasks and processes from home. As our personal and work lives continue to become ever more integrated and interconnected, it is easy to envision HP DreamScreen solutions designed for discrete markets of every sort.
Discuss: View the CES website show and comment on the show and its; relevance to technology and the advancements. Also identify your top two ares of interest & why.
Tuesday, January 25, 2011
Monday, January 17, 2011
The Boom of E-Business
Not since Amazon (Nasdaq: AMZN) started selling books more than 15 years ago has the world of e-commerce undergone such a wholesale transformation. The current online overhaul will likely be even more profound than the original dot-com boom, as it's unfolding across the entire retail sector as opposed to just a few business areas.
Today, some of the biggest brand names in storefront shopping are suddenly investing heavily in their once-neglected dot-com units. Other businesses that previously leveraged websites exclusively for branding are now embracing the opportunity to sell online (be it on a website, mobile phone or tablet). Not to be left out, even consumer-product makers are beginning to use the Web to sell directly to consumers.
The secret about e-commerce is out. The Web holds the promise of higher growth rates compared with strictly brick-and-mortar operations. Online profit margins are typically higher than storefront, and independent research suggests that multichannel customers -- those who shop online and in the store -- are more valuable than pure store-only or Web-only buyers.
Indeed, the days of store vs. Web are quickly dissolving in favor of a multiplatform ethic: Merchandising, operations and marketing are becoming integrated and "channel agnostic." Some retailers, for example, are using their online platforms to drive people into the stores to finalize the actual purchase.
This inexorable and expanding trend has created a heavy demand for seasoned e-commerce leaders, but there are pitfalls for companies along the way. Before launching -- or relaunching -- an e-commerce initiative, businesses would be well advised to grapple with several issues, including whether or not an e-commerce unit should be housed at headquarters along with everyone else or at a dot-com talent center that's two, three (or even more) time zones away.
Additionally, will the e-commerce unit command its own tech resources, or will IT be shared by many departments? Finally, finding a so-called right-size leader for a rapidly growing business is a particularly challenging task.
Location, Location, Location
Where should e-commerce be housed? For most companies and CEOs, that probably seems like an easy one: E-commerce should be at headquarters. The logic for having everyone in the same physical space is sound, especially if the point is to integrate e-commerce with the rest of an organization.
A one-roof structure will enable the e-commerce team to forge strong and positive relationships with colleagues. It also means that e-commerce won't be out of the corporate loop, won't have to be updated separately, and won't develop a culture that's at odds with the company's values. Staying in the loop when the loop is 1,500 miles away can be a challenging and distracting task. That's the conventional wisdom.
However, in certain circumstances, there are strong arguments to be made for having e- commerce located elsewhere -- a different city, perhaps another region with a unique culture. One compelling reason is that some companies find it difficult to attract high-caliber e-commerce executives to their headquarters location, so launching a unit where tech talent congregates can open up a whole new range of prospective hires.
For example, the e-commerce organization of one well-known big-box retailer is based in the San Francisco Bay area -- even though the corporate headquarters is situated far away.
Other retailers have concluded that if their e-commerce organizations are to thrive, they need to sit elsewhere to get out of the shadow of the stores -- truly making e-commerce a separate division. That scenario also favors the concept of locating near an e-commerce talent center and away from the corporate campus.
Deciding to house e-commerce elsewhere shouldn't be undertaken lightly, and it's typically done when a mid-size unit is growing to the next level. In order to make it work, the head of e-commerce, the CEO and relevant C-level colleagues all will have to make a concerted effort -- perhaps even a meticulously scheduled and rigid one -- to communicate often and openly.
Who Owns IT?
Once companies figure out where a new e-commerce team will live, the next step is establishing who reports to whom, and this is particularly essential with a firm's existing tech/IT department. Many e-commerce executives assigned to create or expand Web-retail operations will typically assume that tech/IT will be reporting to them. The reasoning is that they will need dedicated and undistracted IT personnel to focus on e-commerce assignments. Furthermore, if IT reports elsewhere and e-commerce doesn't meet its targets because of an overextended IT department, then who is held accountable?
"It's definitely something to be concerned about," one veteran e-commerce executive told me. "It doesn't mean it can't work, but if you don't control your own team, it can be a warning sign that you won't be able to get your job done."
A shared-services approach isn't doomed to failure, though. Some executives actually thrive in that kind of environment, especially those who excel at collaboration and relationship-building. The bottom line is that being clear and spelling out the lines of structure, reporting and accountability will help avoid problems when it comes to launching a new e-commerce initiative.
The Right Job for the Right Leader at the Right Time
Beyond the universal objectives of growth and profit, companies need to address the strategic goals around e-commerce before they begin the hunt for the perfect e-commerce executive. For example, what are the multichannel strategies? Is the aim to boost online sales, drive foot traffic to stores or both?
Will the purpose be to push customers to purchase online but return merchandise in stores? Is the point to gain online market share as rapidly as possible despite short-term costs? Perhaps the mission will be to implement sophisticated customer-relationship strategies to maximize loyalty and lifetime value?
What's the time frame for getting there? What kind of investment will it take to achieve success?
Addressing these strategy points is vital, because it will help dictate whom to hire. There is a big difference between an e-commerce executive who knows how to build a business completely from scratch compared to one who can take a $50 million enterprise and triple the revenue. Still another executive would be the right person to take a $300 million business and turn it into a $1 billion enterprise.
Companies also need to make sure they've got an e-commerce leader who will be around for a while. Disruptions in leadership cost time and money, and that's why it's becoming increasingly common for companies to consciously hire someone who is "too big" for an existing business. The expectation is that the executive will be the right person to handle the organization's future size and tap its fullest potential.
If executed properly, e-commerce is poised to win an ever-increasing share of income across a range of businesses. So finding the right leaders and grappling with the common mistakes are worthy and essential challenges. By focusing on these critical issues, companies should be able to find a thriving pool of candidates to manage their next wave of digital business.
Comment on what are the some of the successful characteristics of an e-Business and what strategy would you use to be successful in today’s economy?
Not since Amazon (Nasdaq: AMZN) started selling books more than 15 years ago has the world of e-commerce undergone such a wholesale transformation. The current online overhaul will likely be even more profound than the original dot-com boom, as it's unfolding across the entire retail sector as opposed to just a few business areas.
Today, some of the biggest brand names in storefront shopping are suddenly investing heavily in their once-neglected dot-com units. Other businesses that previously leveraged websites exclusively for branding are now embracing the opportunity to sell online (be it on a website, mobile phone or tablet). Not to be left out, even consumer-product makers are beginning to use the Web to sell directly to consumers.
The secret about e-commerce is out. The Web holds the promise of higher growth rates compared with strictly brick-and-mortar operations. Online profit margins are typically higher than storefront, and independent research suggests that multichannel customers -- those who shop online and in the store -- are more valuable than pure store-only or Web-only buyers.
Indeed, the days of store vs. Web are quickly dissolving in favor of a multiplatform ethic: Merchandising, operations and marketing are becoming integrated and "channel agnostic." Some retailers, for example, are using their online platforms to drive people into the stores to finalize the actual purchase.
This inexorable and expanding trend has created a heavy demand for seasoned e-commerce leaders, but there are pitfalls for companies along the way. Before launching -- or relaunching -- an e-commerce initiative, businesses would be well advised to grapple with several issues, including whether or not an e-commerce unit should be housed at headquarters along with everyone else or at a dot-com talent center that's two, three (or even more) time zones away.
Additionally, will the e-commerce unit command its own tech resources, or will IT be shared by many departments? Finally, finding a so-called right-size leader for a rapidly growing business is a particularly challenging task.
Location, Location, Location
Where should e-commerce be housed? For most companies and CEOs, that probably seems like an easy one: E-commerce should be at headquarters. The logic for having everyone in the same physical space is sound, especially if the point is to integrate e-commerce with the rest of an organization.
A one-roof structure will enable the e-commerce team to forge strong and positive relationships with colleagues. It also means that e-commerce won't be out of the corporate loop, won't have to be updated separately, and won't develop a culture that's at odds with the company's values. Staying in the loop when the loop is 1,500 miles away can be a challenging and distracting task. That's the conventional wisdom.
However, in certain circumstances, there are strong arguments to be made for having e- commerce located elsewhere -- a different city, perhaps another region with a unique culture. One compelling reason is that some companies find it difficult to attract high-caliber e-commerce executives to their headquarters location, so launching a unit where tech talent congregates can open up a whole new range of prospective hires.
For example, the e-commerce organization of one well-known big-box retailer is based in the San Francisco Bay area -- even though the corporate headquarters is situated far away.
Other retailers have concluded that if their e-commerce organizations are to thrive, they need to sit elsewhere to get out of the shadow of the stores -- truly making e-commerce a separate division. That scenario also favors the concept of locating near an e-commerce talent center and away from the corporate campus.
Deciding to house e-commerce elsewhere shouldn't be undertaken lightly, and it's typically done when a mid-size unit is growing to the next level. In order to make it work, the head of e-commerce, the CEO and relevant C-level colleagues all will have to make a concerted effort -- perhaps even a meticulously scheduled and rigid one -- to communicate often and openly.
Who Owns IT?
Once companies figure out where a new e-commerce team will live, the next step is establishing who reports to whom, and this is particularly essential with a firm's existing tech/IT department. Many e-commerce executives assigned to create or expand Web-retail operations will typically assume that tech/IT will be reporting to them. The reasoning is that they will need dedicated and undistracted IT personnel to focus on e-commerce assignments. Furthermore, if IT reports elsewhere and e-commerce doesn't meet its targets because of an overextended IT department, then who is held accountable?
"It's definitely something to be concerned about," one veteran e-commerce executive told me. "It doesn't mean it can't work, but if you don't control your own team, it can be a warning sign that you won't be able to get your job done."
A shared-services approach isn't doomed to failure, though. Some executives actually thrive in that kind of environment, especially those who excel at collaboration and relationship-building. The bottom line is that being clear and spelling out the lines of structure, reporting and accountability will help avoid problems when it comes to launching a new e-commerce initiative.
The Right Job for the Right Leader at the Right Time
Beyond the universal objectives of growth and profit, companies need to address the strategic goals around e-commerce before they begin the hunt for the perfect e-commerce executive. For example, what are the multichannel strategies? Is the aim to boost online sales, drive foot traffic to stores or both?
Will the purpose be to push customers to purchase online but return merchandise in stores? Is the point to gain online market share as rapidly as possible despite short-term costs? Perhaps the mission will be to implement sophisticated customer-relationship strategies to maximize loyalty and lifetime value?
What's the time frame for getting there? What kind of investment will it take to achieve success?
Addressing these strategy points is vital, because it will help dictate whom to hire. There is a big difference between an e-commerce executive who knows how to build a business completely from scratch compared to one who can take a $50 million enterprise and triple the revenue. Still another executive would be the right person to take a $300 million business and turn it into a $1 billion enterprise.
Companies also need to make sure they've got an e-commerce leader who will be around for a while. Disruptions in leadership cost time and money, and that's why it's becoming increasingly common for companies to consciously hire someone who is "too big" for an existing business. The expectation is that the executive will be the right person to handle the organization's future size and tap its fullest potential.
If executed properly, e-commerce is poised to win an ever-increasing share of income across a range of businesses. So finding the right leaders and grappling with the common mistakes are worthy and essential challenges. By focusing on these critical issues, companies should be able to find a thriving pool of candidates to manage their next wave of digital business.
Comment on what are the some of the successful characteristics of an e-Business and what strategy would you use to be successful in today’s economy?
Subscribe to:
Posts (Atom)