Old Computing Paradigm

The computing paradigm we are most used to is the desktop paradigm. This is where one user has access to a single computer which processes and stores all the user's information. This model makes the specific computer incredibly important to the user since everything of importance is on that computer. The failure or loss of that one computer could be devastating to the user.

This paradigm is based firmly on the development of the Intel x86 processors in 1978. For the first time in history, cheap processing power made it possible for the birth of the personal computer revolution. Now it is not uncommon of households to have more computers than people!

But this paradigm is unstable. In a highly mobile world, being chained to a single computer is no longer acceptable. Small businesses are required to do more with less and to do it faster than ever before. That means we can no longer be chained to a single machine. We can no longer be slaves to the whims of a single computer which can fail at any moment.

We need to accept that the old paradigm is dying and a new one is being born. We are at the forefront of another paradigm shift brought about by technology. The importance of the individual computer is over. Information is what truly matters! How you access, manipulate, examine and store that information is the major change that is coming with the new computing paradigm.

Is your business ready for this paradigm shift? Contact R-Squared Computing today to make sure.

Institutional Memory

Institutional memory is the collective knowledge, facts, ideas, experiences and know-how of a group of people. It can be found in corporations, government organizations, professional groups, religious groups, sports teams, academia and in entire cultures. In every business there is a group or an individual that knows where everything is stored. From paper clips to new invoicing forms, this group or person holds the knowledge that keeps the business running smoothly. If this person is lost, that information is lost.

Institutional memory is a good way to instill a group's ideology or work methods. You build a team (or as Seth Godin calls it, a "Tribe") by teaching new members of the team your traditions, jargon and work processes. Members of the group can identify one another based solely on their knowledge of this information and can therefore ostracize those who do not belong. This is a common practice in the military. The training methods used force the new recruit to undergo a personality change to adapt to their new environment. This is a total change including a new language, new ways of getting things done and so forth.

Institutional memory requires the ongoing transmission of information between members of the group in order to remain viable. If people with information do not pass it along to new members, there is no way to ensure the preservation of that knowledge. Many businesses try to overcome this problem by developing Employee Manuals or other such guidebooks. Sadly, most of these documents are out-of-date or, in the worst cases, completely useless.

On the flip side, institutional memory can be indoctrinated to the point that it becomes impossible to challenge when something is found that contradicts it. When institutional memory becomes intractable and unable to adjust to new circumstances, it actually becomes a hinderance to your business. You cannot usually solve new problems using old methods.

Institutional memory is the collected knowledge of all the members of any team. It helps to instill team spirit and to foster team unity. Institutional memory must be transmitted, usually verbally, to new members of the team if they are ever going to be accepted into the group. Beware when it becomes inflexible and does not adapt to changing situtations. The key is to harness institutional memory and derive all the benefits without incurring any of the penalties.


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Source: Wikipedia: Institutional Memory

Major Changes Are Coming

I've been in the technology business for a long time. I was part of the great Internet bubble of the 90's in a company awash with investor money. I also worked as a Sampsonite gorrilla; beating up software trying to make it break. I remember token ring, BNC adaptors and other things non-tech people don't care about. And in all that time I have learned to notice a few things.

There are three signs to look for:

• big players in the technology industry start making strange and erratic business moves


• the government has dumped us into another economic mess


• and big business is broke

When these three things happen, be ready for a massive shift in how business works. This is the signal that a large change is coming. If you don't pay attention, you'll get left behind.

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Laggards Are Losers

To close out this series on the Technology Adoption Lifecycle model...

At the tail end of the Technology Adoption Lifecycle curve are the Late Majority and the Laggards. The timing between the Early Majority and the Late Majority is very difficult to measure. However, the Laggards are those who suffer the worst.

While Innovators and Early Adopters are overpaying for new technologies, the Laggards are getting the best bargains. Unfortunately, they are also buying into the technology just before it is replaced by something newer. Laggards are the people rushing out now to by DVD players. These are the people who still boast about their VHS machines and Eight Track players.

Laggards are so far behind the technology curve they are unlikely to ever catch up. Obviously in some industries this is not as bad as in others, but any competitor that has harnessed technology wisely will display a substantial competitive advantage. Keeping up with technology is mandatory under the new computing paradigm. While you don't need to be a tech expert, you should keep up to date with the latest developments specific to your industry.

The only reason to incorporate technology into your business is to improve your ability to compete. You provide a product or a service that serves a market niche. Technology can help you to better identify, communicate, examine, understand and win over that niche. If you stray too far behind on the technology curve you will lose your competitive advantage and run the risk of losing your customers to another business that can better serve their needs.

Fall behind on technology at your own risk. Whether you like it or not, technology has become an integral part of our day-to-day lives. Laggards will not survive as competition gets more ferocious, especially in hard financial times.

The Hidden Costs of Free Software

With all the free software available online, you must be aware of the hidden costs before you run the risks. If you know the hidden costs ahead of time, you can plan accordingly.

Some examples of hidden costs include:

1. Learning Curve
   Every software takes time to learn. Many free programs don't have the benefit of professional human interface development, so you get an interface designed by an engineer. Unfortunately, engineers don't necessarily think like users so they may layout the interface in a difficult to understand manner.
   
   I remember one particular 3D design software that included some of the most amazing features I had ever seen. The only downside was the impossible number of buttons that completely cluttered the interface making it impossible to work comfortably.
   
   Make sure you have an idea for how difficult it will be to learn the new, free software. If it will significantly impair your productivity then you might be better off looking somewhere else.
   
2. Malware
   Too many free, online products come laden with all sorts of nasty surprises. In many cases these viruses, trojans and rootkits will sneak past even the best anti-virus software during the installation process. Before you download and install anything, make sure that it has been certified free of viruses and other malware by a respected third party authority. When in doubt, you can always contact R-Squared Computing and we will perform a full analysis of any questionable software for you.
   
3. Ads/Spam
   Some free products defray their costs by placing banner advertisements inside the software. While this is usually not a problem, you might be concerned that it will make your business seem less professional if you have programs running with ads.
   
   Many free software providers will require that you provide them with an email address so they can send you offers. Sometimes, even though they say otherwise, they will sell your email address to other Internet marketers. Everyone has had the experience where they sign up for a newsletter and suddenly are inundated with junk mail.
   
   A good strategy to use whenever an online vendor asks for your email address is to provide them with a spam trap. Just create an email account with any of the multiple free email services like Yahoo! Mail or Gmail. Then use that email address whenever you are asked to provide an email online. If you want to be nice, you can check that account ever so often to clean out the junk. If not, who cares?
   
4. Buggy/Error Prone
   You get what you pay for, sometimes. That means you might get software that has quirks and errors. These bugs can be a nuisance but they might still be better than paying for the similar commercial product. You can learn all about bugs and known issues by using the Internet to read reviews on the various free products available.
   
   You should never just rely on one review! You never know what the reviewers motives are, so be sure and check multiple reviews. The beauty of the Internet is the liberation of opinions and everyone online seems to have their own opinion on something. Check these opinions and make smart choices.
   
   Anyone that has used Google Documents will attest that the service has been in Beta stage forever. Beta software is any product that is stable enough for wide testing but is not really ready for commercial distribution. It also means that new features are still pending and will be made available later on. Beta products are notoriously buggy and prone to failure so always be careful when you work with beta products. Never rely on beta software for missionb critical needs!
   
5. Availability
   If you are using online software, such as the aforementioned Google Documents, you should be aware that service outages will occur. The most recent Google Documents outage shut down several businesses for two days. Be aware that availability is always a concern when dealing with online software delivered as a service.
   
   Obviously this also extends to your Internet service provider. If your Internet has a habit of going down for long periods of time, you should look for a new provider. Until you have a more stable Internet service, you should avoid all online software offerings.
   
6. Missing Features
   When it's free, you can't complain about what you get. Some free products may mimic commercially sold products very closely but there are usually some missing features. To stay with the Google Documents example, Microsoft Word offers a significantly better set of features for word processing. However, MS Word will run you about $200 against Google Documents price tag of $0. If you can live without the missing features then it's a no brainer to choose Google Documents. But if you need those missing features, you have to either buy Word or examine other free word processing software titles.
   
   To make good decisions you will need to know the features used by your employees in their daily work. Once you have identified all the required features you can begin to examine the available offerings. Chances are you will be able to find a product that meets all your needs. Now you just need to check it against the other five items on this list of hidden costs.

Obviously these are not the only kinds of hidden costs. I am sure you can think of a few that are not on the list. The idea is to examine carefully every software product to ensure it is a good fit for your business before flying off the handle. Don't jump too soon just because it's free.

Five Best Practices for Business Blogging

1. Be sincere. If all you enter on your blog is company marketing copy then you will never attract a following.

2. Be consistent. Publish on a schedule and don't divert from it. People like consistency.

3. Be brief. Blogs seem to work better if you keep the content short. I don't personally follow that rule but that's a personal choice.

4. Be aware. Try to model yourself after successful blogs.

5. Be yourself. Don't try to be something you aren't.

Now, stop reading about it and start blogging. I admit that I started blogging for purely business reasons and now I find it very enjoyable.

Understanding Opportunity Cost

The opportunity cost of a resource is the value of the next-highest-desired alternative use of that resource. For example, if you spend time and money at a movie, you cannot spend that time at home reading your favorite blog and you cannot spend the money on something else. If your next-best alternative to seeing the movie is reading this blog, then the opportunity cost of seeing the movie is the money spent plus the pleasure you forgo by not reading the book.

Take a student who pays $4,000 for tuition to Miami-Dade College. Assume that the same student also receives an $8,000 scholarship. Therefore, the cost is $12,000 and the student pays only 1/3 of the total tuition. However, the true cost to the student is $12,000 plus the lost income the student could have earned instead of going to school. If the student could have earned $20,000 per year, then the true cost of a year’s schooling is $12,000 plus $20,000, for a total of $32,000. Of this $32,000 total, the student pays $24,000 ($4,000 in tuition plus $20,000 in forgone earnings). That is the opportunity cost. It's how you could have spent money or time if you had chosen another path.

Incidentally, opportunity cost is not the sum of all the available alternatives when those alternatives are mutually exclusive. So, if the student could have had a choice between the $20,000 a year job or a $50,000 grant to build houses in New Orleans you do not include both in your calculations.

Opportunity cost isn't just measured with money; it can be anything valuable. For example, in a restaurant, the opportunity cost of eating a steak could be trying the salmon. Ordering both meals could cost more than double - not just the extra money to buy the second meal but the cost to your reputation if you appear gluttonous or extravagant for ordering two meals.

Calculating opportunity costs is fundamental to knowing the real cost of anything. When there is no accounting or monetary cost (what accountants say instead of "price") for an action, ignoring opportunity costs may produce the illusion that it's free. These opportunity costs then become the hidden costs which can come back and bite you.

Now, it's time for a reality check. It is possible to take this too far. If you keep mapping out possible alternatives with fanciful opportunity costs you will quickly drive yourself insane. Don't do it! Keep it real and don't go to extremes with this tool.

Opportunity cost is an important tool to help you understand the real costs of any decision. The cost of the alternative use of a resource must always be taken into account when trying to understand the costs of any decision. Opportunity costs are not totally cumulative when examining mutually exclusive options so be careful when listing the alternative uses for resources. Remember, money is not the only resource! Be sure to measure all the resources in use before committing to a course of action. Finally, don't let calculating opportunity costs paralyze your ability to make a decision. Like all tools, opportunity cost is best when used wisely.


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Sources:
Henderson, David R. Opportunity Cost: The Concise Encyclopedia of Economics
Wikipedia: Opportunity Cost

Ubiquitous Computing

In the very near future, everything will have a computer built in. Under the desktop paradigm, computers are large, sometimes bulky devices that provide processing power and store information for a single user at a time. The new paradigm eliminates the importance of the individual desktop and pushes information and processing capacity onto the Internet cloud. The paradigm that will follow afterwards will see the final demise of the desktop as computers become embedded into everything you can imagine.

Ubiquitous computing will allow users to interact with multiple computers during the course of the day, oftentimes without even being aware of the interaction. This future paradigm will be based on small, cheap computers that connect to the Internet to share information. The example you may have heard before is the intelligent refrigerator that is aware of its contents, can plan menus based on available foods, can warn about spoiled food and can order new items automatically for you. Another example posits a connection between computers embedded in clothing that monitor body temperature and communcate with lighting and climate control computers to adjust to your needs automatically.

Obviously this is still several years away. However, it helps to bring into focus what tomorrow will bring to your business. It never hurts to start planning for the next paradigm, especially when you have plenty of time to figure out how you can benefit from ubiquitous computing.


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Souce: Wikipedia: Ubiquitous Computing

Where We Are vs. Where We Want to Be

A Needs Assessment starts when you ask yourself where you are and then determine where you want to be. It's not just the what, but the who, how, why, when and where of how you will get it done. It is a simple analysis of your current situtation and a basic outline for how to get to where you want to be. Imagine that it is a roadmap towards the future.

You want to plan the process otherwise you can miss vital problems with your ideas. It is very easy to say you want to triple sales next year, but without a plan, you aren't going anywhere. A needs assessment is what you need to ensure success.

When to Buy In

To continue from yesterday's post...

Ideally, you should always avoid the bleeding edge. Unless you know the product, the manufacturer and you stand to gain a significant competitive advantage from the new technology, you should always wait till the Early Majority stage to buy into new technologies.

By this point in the Technology Adoption Lifecycle the costs of the technology have dropped from their high levels. Since the Innovators and Early Adopters have absorbed the research and development costs, the manufacturer can drop prices to encourage the Early Majority to buy in. So, you can pick up the same (or better) product for a discount.

Usually by this point in the curve, the manufacturer has had the opportunity to release a few updates or has made necessary corrections. These repairs can be a huge benefit to you and your business since you won't have to shoulder the hidden costs associated with working around unforeseen problems. Typically, by this stage in the lifecycle curve, most manufacturers have also included a few new features to "sweeten the deal." While these new features may have problems, you can rest assured that the nastiest surprises have been settled.

Typically, by the Early Majority stage, the company has enough customers to ensure its survivability. Because the Innovators and Early Adopters have provided a financial foundation, the company will probably survive to continue supporting and developing the technology. While this is still no guarantee against mis-management and other causes of business failure, at least you know they won't go broke because their product doesn't have a wide enough customer base.

By settling comfortably in the Early Majority stage of the adoption lifecycle you can avoid all the risks that the Early Adopters and Innovators have to bear. This stage of the curve also ensures that you will have access to better quality technologies which have been rigorously consumer tested. Plus you will also have the peace of mind that comes from knowning the company you have purchased from will be around for the foreseeable future. The most important benefit, however, if the Early Majority still benefits from new technologies without shouldering the associated risks.

Avoid the Bleeding Edge

Below is the Technology Adoption Lifecycle curve as defined by Joe M. Bohlen, George M. Beal and Everett M. Rogers from Iowa State College:

The curve describes how new ideas and technologies spread across cultures. The researchers have found that the bell curve above is a standard model for the adoption or acceptance of new technologies. Both demographics and psychological characteristics play a significant role at each stage in the curve.

Their findings indicated that:

• innovators - more educated, more money and more risk-oriented


• early adopters - younger, more educated, tended to be community leaders


• early majority - more conservative but open to new ideas, active in community and influence to neighbours


• late majority - older, less educated, fairly conservative and less socially active


• laggards - very conservative, little money, oldest and least educated

Ultimately it is your risk tolerance that determines where you fall on the curve. Obviously familiar technologies related to your business may lead you to an earlier stage on the curve. However, I usually advise all my customers to avoid the Innovator and Early Adopter stages of any new technology. Typically, these are the users that absorb the greatest amount of risk associated with new technologies.

Think of every new gadget that has caught your attention on release. On June 29, 2007, Apple Computer released the iPhone; innovators and early adopters stood in line for hours to pay $599 per phone. By September of 2007 Apple announced a $200 discount on the high end iPhone which caused a massive customer backlash. Because of the incredible hype, normally rational people rushed out to overspend on a new cell phone. If they had waited three months they could have gotten the same phone for 30% less. Innovators and early adopters tend to absorb the highest costs for new technology. They are the consumers that repay the lion's share of the research and development costs.

There is also the risk posed by bugs and problems. Everyone has a story of a new product or gizmo they bought that didn't work right. Innovators and early adopters always bear the brunt of these problems as the company hasn't had time to iron out the bugs. There is significant business risk associated with errors and problems with new technologies. Could you imagine a new productivity software that paralyzed your business because of bugs? The hidden costs of these problems can be astronomical. A great example of a product failure caused by excessive bugs is Microsoft's Windows Vista. Vista suffers lackluster sales after computer geeks worldwide largely dismissed it as error prone and faulty. Regardless of the number of updates and repairs issued by Microsoft, the damage was done and Vista never fully recovered.

Finally, there is the very real danger from a failure to capture sufficient market share. If a company cannot launch their new technology and capture enough market share, there is no future for the product. A great recent example is HD-DVD which lost the high definition format war to BluRay. How many people purchased HD-DVD equipment only to have it become obsolete? I am certain you can think of other examples. If you are old enough you may remember the battle between LaserDiscs and DVDs. The technical history books are full of examples of failed technologies that left innovators and early adopters high and dry.

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Source: Wikipedia Technology Adoption Lifecycle

The End of Platform Wars

Windows vs. Mac vs. Linux: the battle rages on, with other smaller players fighting for precious market share. Advertisements urging you to choose a side in the Platform Wars sway from the ridiculous to the insulting. Old consumer prejudices are still common too: Mac is for artists and Windows is for business.

It is all nonsense and it will all be ending soon.

A computer's platform is the operating system. Windows Vista, MacOS X, Unbuntu are just brand names for the collection of computer programs that run the machine and provide you with digital services, like Internet accessibility. The operating system used to be the most important consideration when buying a computer. People wanted to buy a computer with a system they were familiar with that would also run all their favorite video games and work software. This is the old paradigm that brought about the industry giants like Microsoft and Apple.

The new paradigm is platform independent. More computer users don't really care what platform they work on, especially when they use web services like Zoho and Gmail. The operating system doesn't matter when all I want is to connect to the Internet.

With the rapid move of technology towards the new computing paradigm, the platform is irrelevant. Soon, users will only be interested in platforms that do not hinder their work and does not hog system resources. As more and more useful services become available online (and as more users start using them!) the services traditionally provided by an operating system will be just more bloat that slows systems down.

The new computing paradigm is up on us. Is your business ready?

Utility Computing Examples

The real benefit of utility computing comes from better control of your money. Traditional business data centers are almost always underutilized. Most business servers idle 85% of the time! This is because computer technicians are notorious for overbuying hardware in order to:
handle high workload peaks (such as the surge caused by holiday shopping!), to plan for future demand and for the unanticipated surges in demand. Utility computing allows companies to only pay for the computing resources they need, when they need them.

Despite recent problems with outages, Amazon Web Services is an excellent example of utility computing. Using the power of Amazon.Com's phenomenal technology infrastructure, customers can now lease computing power. Elastic Compute Cloud (EC2) permits customers to pay for computer resources by the hour and Simple Storage Service (S3) which lets customers pay based on storage capacity.

Another top quality service is Mozy Unlimited Backup which offers 2GB of totally free online backup and also unlimited backup space for $4.95/Month! After you signup online, you need to install a small program on your computer that gives you total control over what files you backup and how often. They have a very intuitive and easy to use program that lets you select broad categories of files for storage. I have been using the free 2GB service for my home computers; I only backup the really important files but soon I will break down and start backing up everything.

The Difference Between Cloud & Utility Computing

In yesterday's post, I mentioned that cloud computing is not the same as utility computing. I have received a few emails asking me for futher explanation. Apparently it isn't as obvious as I thought...

Think of utility computing as the infrastructure and cloud computing as the services provided. Now that you are completely confused, let me break it down further.

Utility computing is about providing access to heavy duty machines. It is infrastructure provisioning by leasing you access to computer processing power (pure number crunching) or storage (hard drive space). Under a utility computing framework you are only getting access to the hardware capacity and nothing more. Because you are not using 100% of the equipment capacity, you will only pay for the fraction you use. This allows you to control your costs and avoid capital expenditures on hardware that will be obsolete in a few years.

Cloud computing is software sold as a service. You buy the software services you and your employees need from an online vendor. This vendor promises to provide you access to the software and your information for a set monthly fee. This allows you to control your costs and avoid capital expenditures on software that will be obsolete in a few years.

Cloud computing requires utility computing since it cannot exist without it. However, they are still different concepts. While I realize this is splitting hairs, it is important to understand the distinction. Purchasing cloud services gives you access to web-based software that allows you true business mobility. Purchasing utility computing services provides you with access to equipment capacity without having to buy the hardware.

I hope that clears things up...

Understanding Cloud Computing

We can always rely on my associates in the computer business to name everything with either an unpronounceable acronym (LAN, WAN, VoIP, ad nauseum) or with something vaguely faggy (cloud, tweet and so forth). First and foremost, you need to understand that "cloud" is just another name for the Internet.

The name originated from the practice of drawing a simple cloud shape to denote any part of a computer network diagram that we did not have to worry about. So, your area of responsibility was detailed with every wire labeled and computer described. Everything outside your network could just be explained away with the cloud drawing. This is similar to the practice of ancient mapmakers who would draw dragons in uncharted areas of the map. The cloud was simply our lazy way of saying Here Be Dragons for our computer network; said simply: we don't know and we don't care.

However, with the advent of high speed Internet connections and advances in web programming, we can now use the Internet to distribute powerful software tools for all users. Cloud computing is built on utility computing; though many believe they are the same thing. Cloud computing is also a metered utility service which allows you to pay for software as a service, meaning you only buy what you need.

The greatest advantage to cloud computing is you no longer need to worry about keeping your software up-to-date and software license compliance. Most cloud computing providers will give you new features and updates as part of your normal subscription. This means you have constant access to new features and updates without having to pay more money or manage software licenses.

The other advantage is you do not have to maintain the infrastructure. Computer servers are expensive and so are the technicians needed to maintain them. Let the cloud computing provider handle the hardware; this lets you focus on growing your business. As any accountant will tell you, renting software is a better option than the capital expenditures involved.

For example, Wired Gecko provides preventative PC care. Using the Internet, Wired Gecko will monitor all your computers to catch failures before they interrupt your business. You must break out of the old Break-Fix cycle where you waste time and money waiting for your computer tech to repair a damaged PC. Take control of the relationship and tell your tech what needs to be repaired before it breaks. This lets you schedule the tech's time so that it doesn't interrupt your work. You have to admit, it's a smarter way to work.

Allmoxy offers a fantastic suite of products that can provide nearly everything your small business could need. From customer service to inventory management, Allmoxy delivers a great set of tools for "businesses that make stuff, move things, and get dirty."

The downside of cloud computing is you can only access these services when you have Internet access. The other concern is access to your information since your data is now residing on their computers. You must be sure there is an easy way for you to secure a copy of information if you should need it. You should also check and be sure that the provider offers solid backup and redundancy. If you are in the medical, legal, banking or other regulated industry, you will want to be sure that your cloud software vendor is in full compliance.

Cloud computing is an excellent way to control your software costs. It also allows you the freedom to work from anywhere there is an Internet-enabled computer. While there are some dangers, the benefits are substantial. Cloud computing should become part of your business especially if it sharpens your competitive edge.

Basecamp

When I find a great service, I must recommend it to my readers. If you want excellent project management tools without all the bloat of Microsoft Project, then Basecamp is for you!

Sign up and start managing your projects and teams!

Computing is a Utility

We are all familiar with public utilities. Electricity, water, sewer, telephone, natural gas are all metered services that we can connect into for a monthly fee. We are charged only for what we consume. That is the key. We never have to buy more than we need, which makes it an ideal billing structure for us. It is economical and our behavior allows us to control our costs. If the electric bill was too high last month, start turning off lights and other appliances. Our behavior determines our costs.

Under the last computing paradigm, if you wanted large computational or storage capacity, you had to spend a fortune in hardware and software systems to provide these services for yourself. That meant you needed a dedicated server room with proper climate control to preserve the equipment. You needed a full time computer technician to monitor, maintain and manage these expensive computers that provided you with the services you needed. These systems were cumbersome, expensive and required constant care and supervision.

But all that changed with high speed Internet connections.

You don't need expensive equipment anymore. All you need is to identify your specific needs You might need more storage space, spare computational capacity or even remote PC maintenance. Once your needs are identified, you simply find a vendor online that provides these services for you. You get all the benefits from the services rendered and they get to leverage their investments in equipment and personnel to serve you.

Before you needed to spend a fortune equipping your business with all the technology you needed to run. Now you can purchase the services you need, and just what you need for a fixed monthly fee. Like a public utility, computing has become a fixed-fee, managed service that saves you from spending unnecessarily. You don't have to spend money on equipment and employees that do not contribute directly to your bottom line. You can spend your precious money on sales, marketing and other areas that bring in profits.

For more info, sign up for our FREE 5-week "Nearly Free IT" e-Course.

First Isn't Always Best

I just had to get this off my chest...

Being first to market doesn't guarantee anything. Apple had the first desktop computers but Microsoft dominated the market with Windows. Eiger Labs' MPMan was the first mass produced MP3 player but iPod's dominate the market.

Being first doesn't mean anything, especially when someone can learn from your mistakes, develop a better product and capture market share. Pay attention to the competition, learn from their failures, identify their weakness and develop accordingly.

Stop racing to be first. Instead focus on developing remarkable products, exceptional customer service and fanatic customers. The rest will take care of itself.

Technology Enabled Micro Business

A micro business is defined as any business with 1 or 2 employees. With the power of modern technology these businesses have an equal chance to achieve lasting success. Hard work, dedication, quality, exceptional service and exceeding expectations are still required.

The internet has leveled the playing field. A new startup doesn't have to create a bigger and more expensive product or service than the competition. Actually, current internet success stories argue for the exact opposite. The most successful new internet companies are not engaging in the traditional business cold war of feature escalation.

These companies are focusing on providing fewer features to control their costs. But they are also ensuring that the features they do offer are well executed and easy to understand. They are taking the time to distill the actual useful essence of the product into a viable competitive product. Focus on solving the simple problems that people have and leave your competition to choke on the complexities.

For example, in the book Getting Real, by 37signals, the developers of Basecamp write how they chose Microsoft Project as their software "enemy." A good project management software should not be about charts and graphs, they argue, but about collaboration between team members set on completing the task at hand. The top-down dictatorial approach embodied by Project was not the ideal way to operate in the new web enabled world.

With the wealth of available tools and the power of direct outsourcing, micro businesses are proving to be capable competitors. With the amazing tools available online, it is now possible to do the impossible. What is clusmily called Web 2.0 has opened the floodgates for new businesses to provide remarkable products at low costs and still exceed customer expectations. The old business models required enormous overhead to, hopefully, achieve these goals. The old ways are dead; it's time to embrace the new paradigms.

When to Spend

I don't believe in spending money just for the sake of it. Too many of my customers are either in a rush to spend money on extravagance or are so tight fisted they paralyze their business. Somewhere in the middle is smarter. I only recommend the purchase of a product or service when it:

• increases sales
• increases competitive advantage
• decreases costs

Those are the only two reasons to spend money. Obviously these are large and open-ended criteria and virtually everything can be qualified as either or. However, knowing when a purchase genuinely falls into one of these categories is the key.

When It Increases Sales

This criteria includes salaries, marketing costs, customer service, web sites and anything else that supports your sales efforts. Some are more obvious than others. The beauty of this criteria is that everything is quantifiable. Because you can measure the results of your expenditures, you are able to measure the benefits of each expense. Any underperforming expenditures should be reduced or eliminated.

Salaries are the most obvious because there is usually a direct relationship to outcomes. A salesman either closes sales or doesn't. A graphic designer either produces top quality artwork or doesn't. There are logical and straightforward metrics that can be examined to check productivity. Anyone that doesn't perform should either be moved into another position or fired.

Be cautious because some are not as clear cut as they would seem. For example, a website that provides useful and actionable information to your prospective customers can easily be mistaken as a pure expense with insufficient returns. However, if your customers are using this information as part of their purchasing decision, it would be a mistake to eliminate the expense.

You can easily measure the importance of these harder to quantify expenses with customer surveys. Another great use of the internet is to get feedback from your customers. Use your existing customer base and gather as much information on how they buy as possible. Offer them an incentive (10% discount on next order, a free gift, a free report, etc.) to fill out the survey and click the submit button. If you don't bribe them, they won't answer.

When It Increases Competitive Advantage

Your business provides either a product, a service or both. Everything your employees do should be focused on facilitating the sales, fulfillment and collection process. Anything else in your company that is not focused on these goals should be outsources. You must focus on your core competency.

What do you do better than the competition? How can you expand your lead? What do you need to do to react to changes in the economy, industry, technology and society to increase your competitive edge?

It's not enough to beat the competition. Your goal should be to annihilate them. Your goal must be to crush them totally then swoop in and pick over the carcass for any remaining valuables.

Don't be afraid to spend money on products or services that will increase your competitive advantage. More often than not, technology will be sold as a solution to sharpening your competitive edge, but you must be cautious. We all know someone that has been burned by buying into a technology that died shortly afterwards. The key when buying technology is to measure the true benefits derived for your business. That means understanding how any new gizmo will change the way you work and quantifying how it will improve things. Don't just take the salesman's word for it!

When It Decreases Cost

This is a no-brainer. If a product or service will help you save money then buy it immediately. The key is to examine not only direct costs but also the hidden costs. Hidden costs come in all shapes and sizes so get as much information as possible. You need to know what's involved.

True cost reduction is the Holy Grail for your business, especially during hard times. Always take the extra time to verify that no hidden costs will end up costing you more. After you have all the information you can make an informed decision.

Working to decrease costs is your constant goal as a business owner. Every penny of costs you cut is another penny in profit. Just don't go wild trimming costs! It is too easy to start cutting and get carried away. Focus on the areas of you business that are not related to your core competencies. Outsource whatever does not add direct value to your sales efforts, but only if you can find it cheaper.

Spend, Baby, Spend!

How you spend money is as important as how you make it. If you spend it faster than you make it, you are on the road to failure (unless you qualify for a government bailout!). Spending money wisely will ensure the long term success of your business. Just remember, if you do not absolutely need it - don't buy it.

Hidden Costs

Hidden costs lurk in every possible purchase. They lie in the shadows waiting for the unsuspecting. Suddenly that product or service that is supposed to save you money, suddenly costs you double. We have all experienced the torment of fees, costs, taxes, fines, honorariums, markups and surcharges. Know before you buy and you will avoid these nasty surprises.

Hidden costs include changes to your business processes. This means you will need to change how you work in order to use the new product or service. There are always significant costs involved with a process redesign so make sure you map out all the necessary changes and the associated costs before you make a decision.

For example, large software purchases are typically laden with hidden costs. The implementation of an Enterprise Resource Planning (ERP) software can quickly turn into a neverending money pit. Hidden deep in the fine print of all ERP product literature is the warning that a significant redesign of company processes is a fact. If you don't plan ahead and include the costs of these changes, you will be in for a nasty surprise. You would think that the steep price tag on ERP systems would be all inclusive. Don't get caught by surprise!

Hidden costs come in all shapes and sizes so you must spend the necessary time examining all the elements involved in implementing the new purchase into your business. If you are cautious and work dilligently, you will find them and know what you are getting into. Don't rush in blind and never let someone force you into an untimely decision. The best salesmen are experts at forcing an early decision. The more money you are looking to spend, the longer you should study it. Take your time; if it's a good buy today, it will still be good tomorrow.

Free is Good

There is something that always makes us cautious about the word "free." We hear that ancient mantra that proclaims: You get what you pay for. A solid and ringing warning from wise ancestors that knew to be careful when someone offered something for nothing. The real warning isn’t about freebies, however, it's about hidden costs!

Nothing is really free. There is always a price. In the computer world, the price might be spyware, a return web link, a virus, a botnet zombie, your email address or your ZIP code. I think you'll agree that some of those prices are too high, but others are perfectly reasonable depending on what you get in return. Some hidden costs are perfectly acceptable.

We all know what it's like when money is tight. There's never enough cash and every chance to cut costs should be embraced. The key is too understand the hidden costs and to decide if they are too expensive for you.

The internet is full of free software and services that can reduce your costs substantially. With smart strategies you will be able to virtually eliminate your software costs!!! We will always be clear with you about the costs involved, and we will only recommend you safe products that have been Certified R-Squared Safe by our expert staff of engineers. How much money would you save if you got all your software for free?

Contact us today!

Announcing Wired Gecko

Are you aware that most computer failures are largely preventable?

Any complex machine with moving parts needs routing maintenance. You take care of your car (hopefully), why not your computers?

Most PC users do not perform the necessary maintenance to keep their computers running at top performance. But who has time to run all those tedious applications? We have work to do and cannot be bothered with these headaches.

That's what Wired Gecko is all about! Let Wired Gecko run anti-virus, anti-spyware and security updates for you. Wired Gecko saves you money!

• Keep your computers running at peak performance.
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• Cut downtime caused by unscheduled failures.
• Sleep well knowing your computers are protected against known threats.
• Focus on getting work done and not on PC maintenance.

We hope to roll out the service within the next two weeks. Everyone that signs up on the Wired Gecko website will receive a specially priced introductory offer. No obligation to buy, but once you see the advantages and the savings you will want to get Wired Gecko today!

Another quality product by

Start Rethinking PCs

With the tough economy, people are giving netbooks a serious second look. A netbook is a small to medium sized, light-weight, low-cost, energy-efficient laptop, ideal for online services like web browsing and e-mail. These are phenomenal alternatives to more expensive computers since they normally run under $500!

Small business owners looking to save money should definitely look at netbooks as a serious alternative. When moneyt is tight you have to make every dollar work twice as hard.

With netbooks, you win a serious advantage. You get all the power you need for most work. If you are running CAD software or you are editing movies, this is not the device for you. But most don't perform those kinds of high intensity jobs. For your standard computer user, the netbook provides all the capability they will ever need.

But more importantly, netbooks are a preview of what to expect. The era of being tied to a single computer is over. The computer will very shortly become a cheap appliance that connects us to the internet. Information is what matters, or as they say, content is king. Who cares what computer you use to get your information?

Every computer could be your computer.

Managing Your Skunkworks

The key to a successful skunk works is the right kind of manager. It takes a special person to manage a department completely dedicated to innovative thinking. He or she must be able to nurture and foster a creative atmosphere but also be able to rein in excesses. In short, you need a real corporate maverick that isn't afraid to bend the rules to get results.

The perfect skunk works manager:

• is not an obsessive bean counter but understands the relevance of budgets.
• follows a laissez-faire management style.
• encourages freedom to persue odd ideas.
• encourages constant discussion and friendly argument.
• uses equal parts of positive and negative reinforcement to motivate.
• understands the needs of creative people and works to provide the needed resources to foster innovation.
• provides guidance instead of strict adherence to company policy.
• focuses on the overall business strategy not departmental tactics.
• knows when to break the rules.
• is willing to put his neck on the line to protect his workers.

Obviously, this isn't a position for everyone. Very few managers will actually have the right combination of skills needed to manage a department of highly intelligent and creative workers. However, the wrong manager will wreak havoc and will ruin any benefits you may derive from your skunk works.

Take your time and choose wisely. The person you are looking for may not fit the standard management mold that your company employs. True mavericks are hard to find, but are worth their weight in gold.

Ray Kurzweil on the Evolution of Tech

Using This Recession Wisely

You don't have to be an economist to figure out that any decline in GDP always translates into a decline in technology spending. During the last recession (2001-2003), tech spending collapsed as companies around the country pulled the plug on new projects and slashed IT budgets.

However, things have changed dramatically since 2003. There are now 3 times more cell phone users. Internet users have more than doubled, with even grandmothers getting online now. Technology has penetrated into almost every corner of our lives. Where once an office might have one computer for 50 employees, now there are more computers than employees. Information technology has become Business Technology.

So, while tech spending might drop over the next three years, we will see the birth of some amazing new techs at the same time. We will see:

• A new host of gadgets for the national wireless broadband networks.
• Magnetic plastics that will revolutionize data storage.
• Laptops will start to vanish when ultra-thin, flexible display screens come standard on cell phones.
• New generations of cloud computing platforms will emerge.
• Enterprise social networks will become commonplace.
• Nanotechnology will become more pervasive with applications expanding into more industries.
• Biotechnology will continue to make phenomenal leaps forward.

These are just a few of the changes for the next 3 years. The recession will not stop them.

You need to ask yourself:

• How do these changes impact my business?
• Do these changes create new opportunities?
• How do I take advantage of these techs?

Technology is poised to take some staggering steps over the next three years. You must think on these emerging techs so you can stay ahead of the curve. The changes that are coming will be significant and they will impact every aspect of your business.

Are you ready for the future?

Firm Wisdom

Would you like to be able to:

• Minimize training costs
• Eliminate repetitive questions
• Aggregate important business data
• Enable collaboration between workers
• Tap into the collective intelligence of your entire organization
• Build stronger business teams
• Provide seamless communication between departments
• Gather all your best business ideas together
• Open a frank dialogue with your customers
• Build a strong business culture even across geographic divisions
• Enable key customers to provide feedback during R&D
• Convert your customers into a "tribe"
• Convert your customers into fanatics for your products

Sounds great doesn't it? So much power all available to you and your workers, and all you need is a Business Social Network, or what I prefer to call Firm Wisdom.

By harnessing the power of Facebook or LinkedIn within your organization, you can unleash the collective knowledge of all your employees and customers. You will build a community centered around your business which will further strengthen your brand and encourage customers to promote your products.

Get started building Firm Wisdom. Find out how by contacting me today.

Hard Measures: Quantify or Die

There are too many business processes, departments and personnel that serve no real purpose. Perhaps they were originally created to serve some arcane purpose that is no longer required but no one has thought to "close the loop" and repurpose them.

I remember one client who had a Records Department with three very lovely ladies, none of whom could tell you what their job required. Basically they came to work every day and filled the day chatting or browsing the internet. They were always eager to help me with whatever research projects or other tasks needed doing, but it amazed me how they always had free time to help. Within a few weeks time, I had the complany close the Records Department and transfer all three ladies into departments where there was real work to be done.

Hard Times are upon us, we must quantify every expenditure. That means you must create a solid business case for every expense.

• Does it make sense?
• Is it necessary?
• What functions are performed for the cost?
• Can it be done cheaper?
• Can it be done better by someone else?
• Can we outsource it?

And, if you cannot quantify the benefits of the expense, then it should be cut. Period.

Hard Measures: Consolidation

Even the rosiest of economic predictions seem to be hyping us into a complete state of panic. Fortunately, my brothers and sisters in the Information Technology field have survived some tumultuous times. Tonight I offer you one surefire idea to help reduce costs: server consolidation.

Depending on your server architecture, you may have several redundant servers. Unfortunately, these devices also incur costs even after their initial purchase. By eliminating these costs you can further tighten the IT belt.

Costs of Servers

1. Electrical: not just the power they use to keep themselves running but also the additional cooling demand from server heat output. While this is negligible on a per unit basis, if you have multiple redundant systems, the totals can escalate rapidly.
2. Labor: no matter how many automated services you have running, it is always wise to have a human check over all your servers periodically to ensure proper working order. More servers means more human time that could be spent on more profitable work.
3. Licenses: all your servers need software licenses and these add to total costs of the device.
4. Hardware: obviously the server equipment itself costs something and you will need to upgrade/replace the device eventually.

Consolidate!

By consolidating your servers and eliminating redundancy you will save on capital, opportunity and recurring costs. You will sacrifice a measure of fault tolerance and you will force your remaining servers to work harder. However, tough times call for tough measures and if you are forced to tighten your budgets yet again, this is a useful tactic to employ.

Keeping Up In The Digital Age

The Digital Age means everything moves faster. Are you keeping up?

There are changing paradigms in the business world that are happening now. What the media has clumsily named "Web 2.0" is nothing more than the liberation of ideas and individuals.

The original Internet was all about "pages." We applied traditional business ideas to the new Internet frontier. We tried to abolish brick-and-mortar and learned the hard truth that consumers prefer Clicks-and-Mortar. But, the Internet also liberated everyone to publish their ideas online.

Everyone suddenly had a voice. Whether it's a website, a blog, a LinkedIn profile or a Facebook page, every person with access to a computer and the Internet has a voice.

You put your message in a bottle and you throw it into an ocean of bottles. With proper planning, you can make sure they find your online message when they search for it. And if they like what they see and read, they will stay.

Information is power. Knowledge is the Internet commodity. But there are half a million bozos online with some of the craziest ideas you could image, so credibility matters! You must provide valuable, useful and actionable information.

Just don't away so much they don't need your help at all. You must establish trust but don't give away all the business secrets. It's a tightrope but you have to walk it or you will lose.

Either the Internet has evolved or we have just discovered something new about this new business frontier. Whatever the case may be, the smart business will adapt to the change and will reap the benefits.

You Have 2.8 Seconds to Impress

Apparently, Al Gore didn't realize that inventing the Internet would also eliminate attention spans. You have 2.8 seconds to capture someone's attention when they land on your webpage. If you fail to impress, inform and help your visitor to achieve their goals, you will lose them.

There is so much information out there most people will click away from your website for the slightest reason. Too wordy, too short, too ugly, bad colors, too slooow, where's the buttons, too confusing and "too old fashioned looking."

The Internet has bred snobs.

This doesn't mean your website must be enormously expensive, it just means you need to know the new rules.

The Internet continues to evolve. If even a fragment of your business is online, you need to stay on top of these new changes. It is pretty clear that Dr. Whitehead's brilliant observation continues to apply to business. The changes in the Internet will impact how you do business.

Your success online is based on adapting to new paradigms. The Internet continues to evolve and change, you need to stay on top of that change or you will not survive.

The Economic Meltdown

Business has gone insane.

We've seen corporate scandals, accounting irregularities, criminal convictions, bankruptcies and bailouts. And that’s just in the last six days.

Why? What's going on? Why are all these corporate giants folding? Why is corporate scandal and failure so rampant? What is business doing wrong that causes these instabilities? Where the hell is Adam Smith's invisible hand during these catastrophes?

While the mortgage crisis is the cause of the financial failures, there's a larger problem that isn't getting any attention. Something is deeply wrong with how we do business in America. There is a problem at the root of our business model that leads to decay and failure.

You can choose to blame the government, greed, corruption or the economy. You can argue for more regulation, more oversight, more transparency, more taxes but nothing will solve the problem that corrupts modern business practices.

The deep-rooted failure of modern business is a failure to think in the long term.

In part, this failure comes from John Maynard Keynes and his famous statement "In the long term, we're all dead."

This has become the battle cry of modern business. Short-term thinking predominates amongst the C-suite who measures success in fiscal quarters. We have condensed the entirety of business existence into three month time slices that determine the rise and fall of highly paid executives.

If business is to survive, we must adjust our point of view. Executives must adopt a long term view in order to establish true long-term growth and create real value for shareholders. The failure of these companies is directly attributable to short-term thinking and the inability to see further ahead than the next quarterly report.

How Progress Wrecks Everything

"The major advances in civilization
are processes that all but wreck
the societies in which they occur."

- Alfred North Whitehead (1861-1947)
Mathematician, Author & Philosopher

Every great leap forward, everything we've invented has caused major changes in how we live. As new technologies are born there are also changes in how we do business.

The fax machine nearly put couriers out of business. The explosion in home computer sales almost killed IBM back in 1993. When Al Gore invented the Internet he re-wrote the rules of business. Every change in how we work causes a huge impact. How we adapt to these changes determines whether or not we survive.

Amazon.Com started as the Internet bookstore. They were a media darling with investors lining up to give away their money. The stock stayed high even when they were hemorraghing money! Then the Internet bubble burst. But Amazon learned the wisdom of the long tail so, they added every product in the solar system. Now, what started as a humble bookstore has turned into the world's largest and most phenomenally well-stocked General Store.

Amazon recognized a major change caused by the Internet. They adapted, with some bumps, but now they thrive. But plenty of others never survived. Hopefully you weren't invested in any of them when they collapsed.

And, no, I don't miss the damn sock puppet commercials.

The Digital Age has made everything move faster. The Internet continues to evolve and change. You cannot stop the march of progress.

Best to pay attention.

5 Warning Signs of a Ponderous Business

They say that the miracle of the dancing bear is not how well it dances, but that it dances at all. That reminds me of some companies I've worked with over the years. They were bloated, ponderous business enterprises that were slow to react to change and burdened down by poor processes. The miracle is not how well they survived, but that they survived at all. In a slow economy, you cannot afford to let your ponderous business slow you further.

Fortunately there are five signs that can warn you if your business is ponderous and slow.

1. Nasty Surprises
Frankly, as a business owner, I hate surprises. Usually because they are rarely good surprises. I can't remember the last time my accountant called me with good news. Do you understand what I mean? Do you get too many nasty surpsies? If you do, there is a serious problem with your information systems.

2. Breakdowns in communication
Do your subordinates know The Big Picture? Are they on board and pulling in the same direction? Are all the teams playing nicely and sharing information with one another? Have meetings ever turned into sessions of "Pass the Blame"? Do people complain about a lack of communication? If you understand what I mean than you have a serious information problem.

3. Constant firefighting
Are you constantly fighting fires? Are you being pulled back and forth by the crisis of the hour? Have you ever had to abandon a crisis to fight a bigger disaster only to be summoned to battle a catastrophe? Is there always something that demands your immediate attention, right now or the world will end? If so, than you have a serious problem.

4. Constant errors
Have you stopped to think what a bad decision can cost your business? Have you ever wondered if the data you use to make decisions is accurate? Do you have evidence of a time when bad data lead to a bad decision? Can bad information cause you to make a career ending error? If so, than you have a serious data problem.

5. Slow response times
Does it take forever to get answers to questions? Do you wait hours/days/weeks for reports? How long does it take a decision to be implemented? How does your company react to adversity? Does your business react smoothly, avoiding obstacles by adapting or does it grind to a halt? If not, than you have a serious problem.

Ponderous Beast
You need to retool your business! You need to trim down and prepare for hard economic times. You need to accomplish more with less and that's just the hard truth of it. If your business is slow to react, does not adapt easily to change, is constantly on the brink of a disaster or has concerns about the quality of information then you need to contact me immediately. I will happily explain how I can solve those problems for you.

Free telephone consultation.
(800) 784-8045 ext. 500

Build Your Skunkworks

In Al Capp's 1934-1977 cartoon series “Li’l Abner” the colorful residents of Dogpatch work diligently to produce illegal moonshine at the Skunk Works. In the 1940's the Lockheed aircraft company’s top secret design, development and production facility was given the same name which they trademarked in 1980. In the 1980's IBM turned to an inhouse skunkworks to figure out the best way to break away from their pure mainframe business model and break into the PC market. And more recently, Motorola's Razr telephone design was completed not at their main R&D facilities but 50 miles away in downtown Chicago.

What makes all these skunkworks similar is that they have all been established outside of typical corporate management constraints. Designers and engineers are given the freedom to innovate and develop ideas that might otherwise not fall within the corporate mold. Usually a skunkworks is a small team with a laissez-faire manager who allows their creativity to reign.


However the original purpose behind the corporate skunkworks was the development of new ideas that would launch radical new technologies like the U2 spy plane. Now a well run skunkworks works closely with marketing, sales and other company departments in order to design new products and services that will help you steal customers from your competition. The old concept of the Young Turks bent on overthrowing all corporate standards fell prey to the cost reduction era of the 1990's. Now, a well run skunkworks will help your business innovate and develop the next generation of products and services.

Ideal Use of Web 2.0 for the Enterprise

Web 2.0 is about the liberation of ideas. It is about establishing a democracy of ideas where the best concepts rise to the top. It is about unleashing the powers of decentralization within highly regimented and centralized organizations. It permits for the free flow of ideas and innovation within an organization without limits imposed by heirarchy and departmental structure.

When properly implemented a Web 2.0 strategy for the enterprise can be an enormous benefit as a means of building entreprise-wide collaboration and information exchange. Therefore, any ideal implementation of Web 2.0 within the enterprise must keep all this in mind.

For enterprise Web 2.0 strategies and development, contact R-Squared Computing.

Bottom Line Green

Everyone is talking about "green" these days. Businesses are being chastised by the media and their customers for failing to adopt green strategies. Con artists have made uncounted millions by selling "carbon offsets" to people who feel guilty for having purchased an SUV. CIO's are being tasked with creating green IT plans because apparently they don't have enough work to do. Even T. Boone Pickens has jumped on the bandwagon to promote a greener America.

Frankly, I am of the opinion that the only "green" that means anything is in my bank account. But apparently after Al Gore invented the Internet, he also invented global warming so we must all be good stewards of our planet. Granted $4 per gallon of gas might have something to do with it too.

Unfortunately, too many of the pundits that are offering their opinions have got it all wrong. They are all promoting (i.e. selling) their own solutions that don't examine your actual business needs. Remember, environmental green is nice, but green money is why you're in business!

Any good "green" plan for business must be Bottom Line Green, meaning it makes sense as a business investment. That means eliminating waste and reducing energy consumption, both of which translate into real profits. This means adopting strategies that cut down on consumption within the business. This is as simple as asking people to stop printing their emails or as direct as installing solar power collectors.

Whatever strategy you choose to implement, be sure you are working with a partner that understands your business and can help you find the best options. Not just whatever he happens to be selling.

Click here to learn more about R-Squared's Green Initiatives.

Hassle-free CRM Software Implementations

Customer relationship management (CRM) software is a centralized system for managing and tracking all your business information relating to your customers. Like all technology, a good CRM system must be well thought out and planned before integration into your infrastructure.

Pre-Implementation
Aside from the hardware and CRM software, a properly planned CRM integration begins in the Pre-Implementation Phase. Most projects fail because of poor pre-planning. You must understand and quantify all the requirements, costs and stakeholder support. Below is a sample checklist of pre-implementation issues to address prior to any CRM integration project:

1. Create a realistic timeline
2. Specify practical hardware requirements the CRM software, factoring in intermediate term growth in storage and processing needs
3. Win key stakeholder buy-in by including them in the design/decision process
4. Examine the relevant processes against industry best practices; determine which processes require changing and make plans to accomodate those changes
5. Calculate a budget with some padding
6. Set your final implementation goals
7. Develop your integration strategy

CRM System Options
Any good in-house CRM system is driven by a mainstream database that’s widely supported. This type of CRM software requires a client/server infrastructure and a good technical support team. Your IT staff may require additional training and support, and you may need to expand your infrastructure. In-house systems are ideal if you are dealing with sensitive client information and you want to manage your own security arrangements

The other option is a hosted CRM software. In this case, the CRM database resides outside your organization in a secure environment eliminating the need for hardware investments. An internet browser and high-speed internet connection are the required elements. With a hosted CRM solution your business will still need to be networked, and a good IT team is crucial for user training, buy-in, and support.

End of IT Projects

The brilliant Paul Coby, CIO of British Airways led a session at Forrester's IT Forum EMEA in Lisbon. This event caters to over 600 CIOs, enterprise architects, application developers, infrastructure and operations professionals to share best practices.

The most notable quote from the session:
"There are no such things as IT projects -- there are only business projects."

If technology is going to make a real impact on business, then we must stop thinking of it solely from the IT perspective. The best CIO's will understand that IT is a function of the entire business and will operate accordingly.

Get your head out of the sand! Understand the real business case for the project and then get to work.

Preparing for $200 Oil

Regardless of when oil hits the $200 per barrel figure, it is time to start preparing for the realities of the energy crunch. As such, information technology departments must start preparing to support remote workers.

The cost of employees goes beyond the normal metrics tracked by the HR department. In addition to salary and benefits, the smart enterprise will also begin to track the energy consumption of their workers. Every time someone enters and leaves your offices, they are impacting energy costs. The figures skyrocket when you also include the electrical impact of computers, desktop calculators, personal digital devices, light fixtures, coffee machines, refrigerators, water heaters, electric staplers, printers and all other electronics.

So, the smart enterprise will encourage their workers to telecommute. Your employees will be happy because they will save money on gasoline, tolls and wear on their automobiles. They will also be spared the stress of the daily commute. With computers, worker productivity is easy to measure so you don't need to worry about employees wasting time.

What all this means is that IT departments need to start preparing for telecommuting now. They need to adapt to the realities of the energy crunch. While many pundits are touting the advantages of "greening" your IT, by implementing a telecommuting strategy you will be reducing your total business impact on the environment and saving money too.

5 Techs Every Law Firm Needs

1. High data availability & control
At the end of the day, a lawyer's work revolves around the access, creation and storage of documents. Once these documents were produced and stored by hand leading to enormous filing cabinets overflowing with paper. Now, most documents are stored electronically (though there still seems to be reams of paper everywhere!). Any computer system you install must allow you and your associates the ability to access files without interruptions or difficulty. You should also be able to secure documents so that only those who need something have access. As an attorney you understand that some information must be kept in the strictest confidence. If your computer systems do not permit easy control of your information, then you must find something better.

2. Professional document creation
You must always put your best foot forward. With the advent of desktop publishing, every computer with minimal software is capable of producing high quality professional documents. If you wanted it to look like it came out of a type writer, you wouldn't have spent the money on a computer. Your desktop software allows you to easily create incredible publications with impressive graphics and charts. With the right equipment you can even print posters and other large displays. Your staff most likely has the tools to create impressive documents; chances are they only need some additional training. If your staff only creates regular, uninspired documents, then you need something better.

3. Swift communication
You must all be able to communicate with one another quickly. When moments count, you need to be able to get through! More than just email, you need a quick and easy means of communicating with anyone in your office. Whether this happens via a telephone or via internet chat, you need multiple available streams of communications between your staff. But beware! These communications must also be secure! You must not ever allow your private chats to be intercepted. You cannot betray your client's trust. If your communications are not swift and secure, then you need something better.

4. Easy to use time keeping
You must track the amount of time you work for your clients. You should be able to account for every moment you have dedicated to a client. You need to know what was done and who did it. You want accurate, up to the minute reporting that tells you how much precious time your practice has dedicated to any one issue. This will allow you to better distribute your available staff members to support important clients. It gives you the information you need to best allocate resources. If you cannot track every minute, then you need something better.

5. Accurate accounting
You work hard. You should know how much that work has earned you. You need accounting systems that are friendly and easy to operate yet also intelligent enough to catch errors. You need reliable accounting data to help you plan the expansion of your firm. You need flexible reporting that shows you how your money is spent. And above all, it must be accurate to the penny. Your accounting system should be a seamless aspect to your company, not a painful and terrible ordeal. It needs to merge and grow with your firm. If your accounting cannot handle these requirements, then you need something better.


Your law practice technology systems are vital to your success. By relying on outdated and old systems you risk losing your vital business edge to the competition. By offering advanced technological services you can provide additional value to your clients, in addition to your brilliant counsel. And your client's will be happy knowing you have the tools to get the job done.