Could Software Developed Overseas Be a Threat to 'Net-Centric' Department of Defense?
If you sell business software to the U.S. Department of Defense, take note that a task force early next year plans to warn the Pentagon of a growing threat to national security from adversaries who could insert malicious code in software developed overseas.
The Defense Science Board, a military/civilian think tank within the DOD, will issue a report that calls for a variety of prevention and detection measures but stops short of recommending that all software procured by the military be written in the U.S., said the head of the task force that has been studying the so-called foreign influence issue.
The possibility that programmers might hide Trojan horses, trapdoors and other malware inside the code they write is hardly a new concern. But the DSB will say in its report that three forces--the greater complexity of systems, their increased connectivity and the globalization of the software industry--have combined to make the malware threat increasingly acute for the DOD.
Robert Lucky, the chairman of the DSB task force, said this month that all the code the DOD procures is at risk, from business software to so-called mission software that supports war-fighting efforts.
"The problem is we have a strategy now for net-centric warfare--everything is connected. And if the adversary is inside your network, you are totally vulnerable," said Lucky, who is an independent IT consultant and engineer.
Source: Computerworld, http://computerworld.com

Can Master Data Management Technology Give You Consistent, 'Single View' of Data
A "single version of the truth" or "a 360-degree view of the customer" might be familiar, even hackneyed, phrases in corporate IT circles, yet both remain elusive goals for many enterprises today.
Getting to that "truth" requires a basic constant--the consistent use of key data shared across the organization. But this simple goal is difficult to accomplish; companies have tens, if not hundreds, of applications and databases, each of which has a different definition of customers, products, suppliers and more.
It also costs companies millions of dollars through delayed ERP rollouts and lost production, inefficient procurement and supply chain planning and poor customer service-- not to mention the impact on the brand.
Is it time for master data management?
Source: CBR Online, http://cbronline.com

Booz Allen Finds Successful Innovators Don't Necessarily Spend Huge Sums on R&D
A select group of the world's 1,000 largest corporate R&D spenders perform significantly better than their competitors over a sustained period while spending less on R&D than their industry rivals, according to management consulting firm Booz Allen Hamilton's second annual global innovation study. The study found that although R&D spending of these 1,000 companies rose last year by more than $20bn, money simply can't buy effective innovation. However, a group of 94 "high-leverage innovators," including Toyota, Apple, Christian Dior, Google and Caterpillar spend less than their competitors on research and development, yet consistently outperform their industry rivals across a broad set of performance measures.
These so-called high-leverage innovators use many different models and approaches to outperform competitors, but are generally noted for their distinctive skill in at least one element of the innovation process and are adept across all of the stages. Google, for example, is known for generating new ideas with blistering speed. Toyota excels at developing its products and processes far more efficiently and effectively than most other companies. And Apple is noted for its well-honed capabilities in project selection and customer understanding.
"Innovation can lead to higher performance, but the process isn't automatic and it does not necessarily require above average levels of investment. The most successful companies combine an integrated process and a supportive culture to create a sustainable competitive advantage," says Barry Jaruzelski, a vice president at Booz Allen. "There's no silver bullet, and just throwing money at the problem is not the answer."
Source: Booz Allen Hamilton, http://www.boozallen.com

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Dell Says Online Customers Want Lower Prices on Electronics, Not Rebates
Shoppers heading to Dell's web site this holiday season will see far fewer rebates on computers and consumer electronics.
In an attempt to simplify the shopping process, the Round Rock, Texas, computer maker is selling products at the rebate price. "Rebate free doesn't mean they're getting a higher price," Dell spokesman Mike Maher says. "We're translating the savings into lower-priced products." Dell decided to drastically reduce the number of rebates, discounts, and other promotions based on customer surveys. Shoppers preferred to see one price for a product, rather than have to go through the hassle of deducting promotions.
The company started reducing the use of rebates several months ago, beginning with its televisions and Inspiron notebooks. "The feedback from customers was resoundingly positive," Maher says.
Source: Information Week, http://www.informationweek.com

Business Design Audit Could Show If You're Running Your Business, or If It's Running You
Large companies have become so complex that few people understand how all the pieces work together. It's difficult for managers to untangle whether their greatest problems and opportunities lie in the realm of strategy or execution. How do they get a clear line of sight into the most important drivers of performance?
The business design audit is a process that cuts through the fog by examining all the business design choices and performance drivers within a company to determine which are out of alignment. Executives can see how many business designs they're actually running, which ones need to be fixed, and which are nearing the end of their useful life and need to be replaced—all when it's still timely and relatively cheap to make these changes.
Improving the businesses you have and building the businesses you need are linked activities, and an audit addresses both areas. Management needs to make design choices that are internally consistent, and it needs an operating system (composed of activities, processes, and information) that will deliver on the design.
Source: Mercer Management Consulting, http://www.mercermc.com

'How Can I Help You (and the Company's Bottom Line at the Same Time)?'
"Hi, how can I help you?" For years, that was the hallmark of customer service for many retailers. Zip ahead to 2006. Customer service is in the midst of a transformation across the retail landscape, becoming a more focused, strategic weapon in the competitive arsenal for a variety of retailers.
They angle for better customer service in several ways: signing up trendy designers, finding products to appeal to their specific customers, and listening more carefully. The result? They're seeing the payoff in their profits.
At office-supply retailer Staples, for instance, the old "Can I help you?" is out, replaced with: "What can I help you find today?" "We then walk a customer to a product and might use that opportunity to cross-sell other items," says Shira Goodman, Staples' executive vice president of marketing. She notes that Staples' customer-satisfaction metrics increased by 5 percentage points after employee training was focused.
In the same spirit, Home Depot, the nation's largest home-improvement chain, has set aside $30m in a program to grant store workers bonuses based on internal customer service scores. Upscale department store Nordstrom has seen its bottom line increase 10 percent in its most recent quarter, helped by offering the clothing styles that women said they wanted.
Source: CRM Daily, http://www.crm-daily.com

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VoIP Probably Won't Work If You Rely on Old Processes and Management Approaches
There is a lot of hype around Voice over Internet Protocol technology, and deservedly so, but from a user perspective, VoIP is getting a less-than-stellar reputation. If you look beyond high-profile implementations and examine most IT organizations, there is a hesitance to move from the project stage to deploying VoIP enterprisewide because there is so much at stake if something goes wrong--many businesses can't afford any network downtime due to bandwidth drain.
Is this a case of industry watchers and vendors over-inflating facts and stretching the truth? Not really. The fact is that while VoIP is a technology whose time really has come, there is a perception in the market that it simply does not work. Organizations relying on traditional data or network management solutions to manage their voice applications, rather than employing a tool specifically designed for that purpose, will be less than satisfied with the performance of their VoIP deployment. This problem creates a lose/lose situation for both vendors and enterprise IT departments, in which the technology does not deliver the anticipated results and IT decision-makers lose credibility within their organizations.
Businesses need to think out of the box when it comes to managing VoIP on their network. The reality is that old solutions can't solve new problems because the old set of best practices is no match for the new challenges associated with VoIP. To properly manage VoIP and the new challenges presented, organizations need new processes and the development of new skills.
Source: CIO, http://cio.com

Hey, I Listened to a Podcast, But I Don't Need to Do It Anymore
No doubt about it, podcasting is growing in popularity. More people than ever are downloading audio files for listening on music players and other electronic devices. The question is: Are they doing it with much regularity? More to the point, how long before masses trade in the daily paper for the daily download? Not anytime soon, judging from a report by the Pew Internet & American Life Project.
The study, which polled nearly 3,000 adults in August, concluded that roughly 12 percent of internet users have downloaded podcasts in order to listen in at a later time. That's up from 7 percent of Web surfers who downloaded podcasts early this year. Most tuning into podcasts, however, are sampling shows available when they have some time, rather than subscribing and regularly listening to particular programs, according to the study. In fact, only 1 percent of internet users reported downloading podcasts on a typical day. A March study by Forrester Research came to a similar conclusion, finding that while 2 percent of North American internet users have tried podcasts, only 1 percent tune in regularly.
Source: Business Week, http://www.businessweek.com

Eastern Europe, South Africa, Latin America to Experience Contact Center Growth
Countries in Central and Eastern Europe as well as the Middle East, Africa and Latin America are poised to become the next hot spots of contact center outsourcing activities, according to projections recently published by Frost & Sullivan.
The market earned revenues of $11.2bn in 2006, according to the consulting firm. By 2012, that number is estimated to reach $16bn.
The growth of the Tunisia and South Africa markets may seem odd to the casual observer, but then so did Ireland in the early 1980s. Contact center outsourcing operations tend to seek the lowest-cost locales that can offer sufficient infrastructure and the necessary workforce skills. By the end of the 1980s, Ireland had priced itself out of the market, and contact center operations spread to other countries, including India.
Frost & Sullivan points to Northern Africa -- in particular, Egypt and Tunisia -- as emerging areas for French-speaking customer care services. South Africa is becoming a favored destination for UK clients. Latin America is attracting investment by contact center outsourcers that are eager to harness the Spanish language skills essential in many customer care operations.
Source: CRM Buyer, http://crmbuyer.com

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Majority of Retailers to Upgrade Point-of-Sale Technology in Next Three Years, AMR Predicts
Outdated point-of-sale (POS) software is plagued by increased maintenance and support costs, excessive training expenses, inefficient marketing and merchandising execution, and manual cross-channel operations. To increase store productivity and improve customer service, 83 percent of retailers plan to upgrade to advanced POS architectures over the next 36 months.
Source: AMR Research, http://amrresearch.com

If You're Considering CRM Project, Remember Many Customers Want Self-Service Option
Self-service applications are now "an essential component of any CRM strategy," says Elizabeth Herrell, a Forrester Inc. vice president. "Customers are demanding it as a choice. They want to be able to interact with a company using self-service, assisted service, or a combination of the two." And, she adds, companies need self service to remain competitive: "While many customers may prefer them, fully assisted services are the most expensive services to provide, and they really aren't necessary for many basic interactions," Herrell says.
Source: Baseline, http://www.baselinemag.com

Spam Not Just a Threat to Personal Computers, It's a Real Risk for the Enterprise
A new report from e-mail vendor Postini indicates that spam--or unsolicited commercial e-mail--is worse than it has even been. According to the San Carlos, California-based firm, the percentage of spam grew by 59 percent among the 70 billion e-mails that Postini processed from September to November alone, bringing the level of junk e-mail to a striking 91 percent of all e-mails sent.
The increase in spam has put corporate networks under a state of siege. But some companies are better than others at fighting that siege, according to Forrester analyst Khalid Kark. "A lot of people that we come across actually have it somewhat under control, typically if they have a provider that's helping them, or if they have a couple of solutions trying to address [the problem]," says Kark.
But not all companies take that approach--and they might suffer as a result. "If you're using a tool or service that's right out of the box, then it usually becomes an issue," says Kark. "You have to basically customize or tweak it."
According to Kark, the companies that fare the worst are those whose systems are simpler, or those who don't take the time to customize their defense and deploy several layers of protection, from a network's perimeter to each of its endpoints--that is, notebooks, laptops, and even cell phones and PDAs.
"The attacks are becoming complicated," says Kark, "and if you don't have a strategy to address that, you're usually behind the curve."
Source: BPM Today, http://www.bpm-today.com

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Manufacturing in Parts of North, Rust Belt May Be Showing Some Signs of New Life
In the East and the Midwest, especially in such states as Connecticut, Ohio, Michigan and Missouri, signs exist of a manufacturing rebound. Still, there's a question of how long this selective resurgence can last.
Source: Industry Week, http://industryweek.com


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