Where's The Advantage? My Competitors Are Outsourcing, Too.
Most companies have outsourced some portion of their business to lower costs and, over time, have achieved cost savings in the outsourced portion of the business. Unless your efforts in outsourcing to lower costs are unusually good, you are not gaining a sustainable competitive advantage, since your competitors are outsourcing just like you are.
Leading companies are now using global resources to drive new forms of revenue and grow their top line. Companies are realizing new forms of business value through their global sourcing partnerships by accelerating new product development, shortening time-to-market and finding successful entrées into new markets.
Source: CRM Buyer, http://crmbuyer.com

Profit in Price-Optimization Software Eludes Its Vendors, for Now
Price-optimization software is just beginning to make its mark. Although major software providers such as SAP AG and Oracle Corp. have joined the market, analysts estimate no more than 150 retailers worldwide are using it--including such big names as Wal-Mart Stores Inc. and 7-Eleven Inc. The CEO of Albertson's grocery stores told analysts in 2005 that the chain was reaping "big dividends" after pricing software advised charging less for such items as paper towels, toilet paper, ketchup and soup.
For now the software is enough of a competitive advantage that chains are reluctant to publicize their experiences. Still, it's clear that price-setting software and similar, more-established technologies such as markdown optimization figure to make stores more efficient and savvy at promoting precisely what consumers want. Or at least what we think we want.
Source: CIO Today, http://www.cio-today.com

Collaborate? Not Me. There Are Viruses Out There.
Bot network attacks...the proliferation of mobile devices in the workplace...the ubiquitous presence of both secure and unsecured broadband networks. These are just a few of the new threats that CIOs must understand and address if they're to protect the integrity of their information resources and maintain the health of their networks.
Source: Optimize, http://optimizemag.com

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Hidden Assets = Hidden Strategic Renewal = Hidden Profits
A hidden asset is something that you possess whose value, properties or potential you have not fully appreciated or realized. The more complicated, large or established your company, the more likely it is that you possess numerous hidden assets, some of which might contain unmined veins of business gold. When available, such solutions, based on the assets you already have access to, have a rate of success that is four to six times as high as other general paths to strategic renewal.
Specifically, there are three types of hidden assets that act as keys to strategic renewals: Undervalued business platforms, unexploited customer assets, and underutilized capabilities.
Source: Baseline, http://www.baselinemag.com

There's Money in M-Commerce, But What Is It--Ringtones?
As voice, data, wired and wireless telecommunications converge, conditions are ripening for the extension of e-commerce to mobile, or m-commerce, in markets around the world. How much are we talking about? Jupiter Research estimates that global m-commerce revenue will exceed $88bn by 2009, a $69bn increase from year-end 2005. But what is m-commerce?
Source: E-Commerce Times, http://ecommercetimes.com

Wait, Your IT Job Isn't Being Sent Overseas After All
High-tech employees are back in demand. The U.S. technology industry added almost 150,000 jobs in 2006, according to an April 24 report by the American Electronics Assn., an industry trade group. That was the largest gain since 2001, before the implosion of the tech bubble resulted in the loss of more than 1 million jobs in three years. The findings counter concerns--sometimes voiced by opponents of outsourcing--that high-tech jobs are being sent overseas.
There's plenty of domestic demand for a host of IT jobs, says Katherine Spencer Lee, executive director of Robert Half Technology, an IT staffing company headquartered in Menlo Park, Calif. On average, it is taking 56 days to fill full-time IT positions, she says. Firms that want IT managers are looking at an even longer search--about 87 days. And the wait is only getting longer.
Source: BPM Today, http://www.bpm-today.com

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To Bribe or Not To Bribe? That Is The Question (in China)
The Chinese government had been reluctant to scrutinize foreign multinationals for bribery. That changed on January 19, when a government investigative unit detained 22 employees at seven multinationals for taking bribes worth a total of $515,000, all in Shanghai. The companies included McKinsey, ABB and McDonald's.
Risk-management advisers to foreign companies say the sweep was a warning. Steven Vickers, CEO of Hong Kong--based consulting firm International Risk, sees it as a signal that multinationals won't be exempt from any crackdown. But staying clean won't be easy. The open secret is that it is extremely difficult to control the illegal payoffs that are common currency of business in the People's Republic.
Even if U.S. companies strictly comply with the Foreign Corrupt Practices Act (FCPA), it may not be enough. Long-standing (but rarely enforced) Chinese anti-bribery laws establish a lower threshold for amounts considered bribes than the already stringent FCPA. This gives authorities great leeway to charge companies with bribery should they choose to investigate.
Unfortunately, multinationals have been lulled into a false sense of security because bribery is so common.
Source: CFO, http://www.cfo.com

Two-State Drug Store Chain Keeps Up With The Big Players
How can a regional drug store chain, with just 68 stores in two states, compete with national chains like Walgreen's or CVS that seemingly have stores on every corner? By outsourcing its retail IT, that's how.
Source: Outsourcing Journal, http://www.outsourcing-journal.com

The Hard Part About SOA? Getting Personnel With SOA Skills.
Building on their early successes with pilot projects, many companies are pursuing enterprisewide service-oriented architecture (SOA) initiatives. These longer-term, expansive projects demand personnel with proven SOA skills. Yet the challenge of acquiring SOA skills is more than just another skirmish in the larger war for IT talent.
Obtaining the best SOA skills requires a new approach. Companies must create a global development team, balancing geographically dispersed employees, outsourced personnel and expert consultants for hire.
Source: CIO, http://www.cio.com

Commerce Department Warns About RFID Security, Privacy Risks
Retailers, manufacturers, hospitals, federal agencies and other organizations planning to use radio frequency identification technology to improve their operations should also systematically evaluate the possible security and privacy risks and use best practices to mitigate them, according to a new report from the US Department of Commerce's National Institute of Standards and Technology.
Source: Continuity Central, http://continuitycentral.com

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MPO: Outsourcing, But Keeping It Under Your Roof At The Same Time
Manufacturing process outsourcing (MPO) may surprise many who are familiar with the term, "outsourcing." The concept is quite different. While most would assume outsourcing company functions involve an outside vendor operating in a different location, the intent of MPO is to "run a business within a business." It involves outsourcing manufacturing functions to a vendor who actually operates inside the company's facility, while guaranteeing the quality and cost of output.
Source: Industry Week, http://industryweek.com

Poor Infrastructure Common to Most Parts of Most Emerging Markets
Executives cannot ignore such such emerging markets as South Africa, Brazil, Vietnam, Bangladesh and Ghana. For many reasons, these regions are becoming attractive hotspots for multinationals in a variety of industries. The one commonality among them is their infrastructure challenge--underdeveloped supply networks. However, Edgar Blanco, research associate at the MIT Center for Transportation and Logistics in Cambridge, Massachusetts, says the differences in levels of infrastructure within emerging markets gives the perception of a country within a country. "Segments of emerging markets that are clustered around ports or urban centers have a reasonable level of infrastructure abilities; however, as you move away from those pockets, most of the infrastructure is not developed," says Blanco. "This is a challenge when examining emerging markets, in that areas within the same market may have completely different profiles."
Source: Inside Supply Management, http://www.ism.ws

What's So Attractive About Ireland? It's Not The Tax Rate.
The Irish government offered Amazon.com a confidential package of aid to woo it to Ireland rather than Britain, France, or a low-tax rival in Eastern Europe. Ireland has attracted a disproportionate share of foreign investment since the mid-1990s, including more than 500 U.S. multinationals, which take advantage of Ireland's 12.5 percent tax rate on business profits.
Source: CRM Daily, http://www.crm-daily.com

Brazil Looks Good, But History Says Be Cautious
Corporate Brazil is enjoying a unique moment in its history thanks to healthier economic conditions and a strong position in certain industries.
Growth prospects for locals and multinationals alike are bright in such areas as infrastructure, basic materials, consumer goods and retail, and banking.
So, solid business opportunities are available, but Brazil's volatile economic history suggests grounds for caution.
Source: McKinsey Quarterly, http://www.mckinseyquarterly.com


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