Management and strategic issues for IT leaders, by Computing Business editor Mark Samuels Management and strategic issues for IT leaders, by Computing Business editor Mark Samuels Management and strategic issues for IT leaders, by Computing Business editor Mark Samuels

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Friday, 30 May 2008

Only IT professionals talk about business agility

Cio_butterfly Strategic agility, business agility and strategic business agility - go to any IT conference and technology experts are keen to big up the need for 'agility'. The term is often allied to other key buzzwords - such as strategic and business - in an attempt to increase gravitas.

The result, however, is the opposite. Lack of clarity obfuscates meaning and agility remains a slippery subject, as identified in next month's Computing Business (out 19 June). The magazine for IT leaders speaks to chief information officers and line-of business executives about their perspectives on agility.

The most insightful comment in Jim Mortleman's cover feature comes from independent financial services consultant Margaret Smith, who says the term agility is little used beyond the IT function:

“I don’t know anyone outside IT who talks about business agility. They just expect it – and get extremely frustrated when IT doesn’t deliver it."

Once again, IT concentrates on giving a perceived problem a trendy name - rather than defining and solving the business issues at hand.

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Thursday, 29 May 2008

Semantic Web to revolutionise internet search

Communications_sparks The future of the web has arrived. Earlier this month, internet startup Powerset revealed its Semantic Web search service - a way of searching that should provide users with a more satisfying experience.

In theory, the Semantic Web allows computers to search all the content on the web through the collaborative use of information.

In practice, Powerset is limited to searching Wikipedia. But this first version at least provides a taster of semantic-based searching, showing how users can search via conversational techniques rather than keywords.

More importantly, Powerset shows a significant step towards a more intuitive web experience. Such movement should be welcomed, especially as the concept of the Semantic Web has previously been more niche than mainstream.

Father of the web Tim Berners-Lee has been espousing its potential benefits for the best part of a decade. And some key businesseshave released semantic-like tools.

Back in the late 1990s, honorary professor of linguistics David Crystal spent three years analysing 100,000 words from the English dictionary and found an average of 2.5 meanings associated with each.

The research allowed his software firm, Crystal Semantics, to create search tools based on the relationship between words and the contexts in which they occur.

Such developments led Robin Mannings, university research programme manager at BT Exact’s Adastral Park research centre, to declare four years ago that the Semantic Web would give deeper meaning to data. “Part of the future is about trying to make computers less stupid, or less difficult to use,” he said.

So what will the future of the web be like? In truth, it is a bit disappointing. Being limited to Wikipedia searches does not necessarily provide more useful information than traditional search platforms such as Google.

The good news is that Powerset intends to expand the search technology to other areas in the coming months.

The bad news is that some IT experts are already re-tagging the Semantic Web as Web 3.0.

Semantic searching might provide a more satisfying web experience. But as ever, the hype that accompanies innovation is likely to prove stultifying.

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Wednesday, 28 May 2008

'The Apprentice' + Aston Business School = hype

Young_it "Interest in Aston Business School boosted by The Apprentice," says the press release. Could it be true? Are potential students rushing to apply for the BSc in Management and Strategy because the course was once completed by The Apprentice contestant Alex Wotherspoon?

Kind of. Applications for the BSc are up 27 per cent on last year, while the number of students making the course their first choice is up by 150 per cent:

Apparently, Alex Wotherspoon completed his studies at Aston Business School in 2005. But the press release claims his continuing involvement in the BBC TV show has sparked a growing interest in his former university:

"One applicant even phoned Aston Business School in Birmingham and mentioned the television show as the reason for her choice."

One applicant? Hmmm...  In fact, Dr Helen Higson, associate dean of undergraduate studies at the university, says in the press release that the course’s surge in popularity is only partly due to Alex’s popularity on the TV show:

”While Alex’s adventures on The Apprentice have certainly given course applications a boost in recent weeks, it is also due to the excellent reputation of Aston Business School and the employability of its graduates after they complete their studies.”

My reading of the situation? 'Aston Business School is popular' plus 'The Apprentice's Alex Wotherspoon once studied at the university' equals 'an opportunity for marketing spin...'

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Tuesday, 27 May 2008

JP Rangaswami & the Ebbsfleet United experiment

Web_20 There was recently an interesting debate about social technology, collaboration and sport on BT CIO JP Ranagaswami's blog. The debate concentrated on Ebbsfleet United FC - the club now owned by web-based venture MyFootballClub. Members are allowed to vote on a series of management issues, potentially including team selection and player transfers.

Participants at JP's blog seemed to think the experiment was 'changing the world for the better'. I responded - saying I disagreed. No-one commented. So, in what must be seen as huge slice of self-referential behaviour (quoting yourself on your own blog), here are my comments:

Ebbsfleet? Changing the world for the better? Frankly, I’m not so sure. Collaboration, community, interaction… Yeah, I can see that side of the Ebbsfleet ‘experiment’. But there’s also a much darker side.

So, participants are mailed with questions concerning the day-to-day running of the club. Fine. But the end point of the interaction has always been for fans to ‘help’ manager Liam Daish select the team. The group running the ‘experiment’ suggest it could be logistically difficult. How would you feel if a bunch of strangers told you how to do your job? Positive? Pleased? I doubt it.

Fans were recently asked if they would like to have an input on team selection - the majority said they would, in some form. Not exactly fair play, is it? I thought football was a sport, not a social software toy…

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Friday, 23 May 2008

Men like women in short skirts, says research

Men like women in short skirts. As men get older, they like to see a bit more flesh. Those are some of the findings from a survey of 422 UK senior managers and directors by development consultancy The Aziz Corporation:

"Men are much more tolerant than women of very short skirts at work: 34 per cent of men see them as appropriate compared to just 16 per cent of women. Middle-aged men (aged between 40 and 49) tend to appreciate a bit of cleavage on show, with 60 per cent feeling that this is acceptable in the office. But female bosses become less tolerant of low-cut tops as they age, with only a third of those over the age of 50 prepared to put up with displays of cleavage at work."

Nothing like stereotypes, eh? I wonder how the surveyed male managers and directors feel about attempts to encourage more women into IT? Other findings from the survey include the following (my comments in italics):

  • Flip-flops were deemed unacceptable by 84 per cent of respondents.

On the beach? Yes. In the park? Maybe. In the office? Never.

  • Perhaps of greater surprise is the fact that visible tattoos are thought acceptable by 45 per cent.

Why the surprise? I am getting a spider's web on my neck tomorrow. And a couple of tears under my eye. Oh, and a dotted line around my neck and the words 'cut here'.

  • Shorts are still an office pariah with almost nine in ten (88 per cent) considering them inappropriate for office wear.

Once again - on the beach? Yes. In the park? Maybe. In the office? Never.

  • The jury is also still out on the subject of ties carrying a jokey motif: respondents were divided almost fifty-fifty in their opinion of them. "Jokey ties and other items of questionable taste are probably best saved for the weekend," said Professor Khalid Aziz, chairman of The Aziz Corporation.

Why the divide? Jokey ties are the same as comedy pop songs - naff. But with a bank holiday weekend comping up, I intend to follow up the Prof's words and crack open the box labelled  'comedy ties'. I know the Homer Simpson tie will look strange with jeans and T-shirt, but hey - it's the weekend...

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Thursday, 22 May 2008

Father's day, starting fires and Aston Villa FC

"It can be quite difficult to find the perfect gift on father's day." So begins Prezzybox.com's press release about finding the right gift for your old man. The online firm suggests a couple of presents, which I'll run you through in a minute. But to be honest, the following is basically a memo to my one-and-a-half-year old daughter (and my wife, who will have to buy the gift).

Prezzybox - who according to the release, pride themselves on a wide range of gifts suitable for any occasion - suggest a bunch of stuff for dads:

"Created especially for dads with a passion for fast cars, the Personalised Stig Poster gives you the opportunity to out the biggest mystery on television. Who is the Stig? Is it your dad?"

Daughter, take note - I am not Stig. In fact, as you may have noticed, daddy doesn't even drive. What else is on offer?

  • For dads who like to play, the micro pico z mx-1 extreme, is ideal. The world's smallest remote controlled helicopter which promises to drag the inner child out of any dad.
  • Its no secret that Dads love fire and the urban safety firepit brings a fiery centrepiece to your garden, patio or decking. It can even double up as a barbecue to cook his steak on.

Euro_cup_2 "It is no secret that Dads love fire" - which pyromaniac fathers are we talking about here?

Certainly not me and my dad. As for us, two season tickets for Aston Villa would certainly suffice. I'll buy one, my daughter/wife can buy the other...

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Would you recommend a career in IT to your child?

Young_it You have a child who is about to make a decision that would dictate its quality of life for the next 40-or-so years. This is big news, particularly for readers who are unaware they have any kids. But bear with me on this one.

Because it is time for your real, or theoretical, flesh and blood to decide what they want to be when they grow up. We have all been there, of course. I wanted to be a professional footballer, but I was rubbish.

Some children are more grounded, and make the decision that they want to work in the IT industry.

You made a similar decision yourself once, probably when anything technological seemed to lead to the land of opportunity. But that well-worn path seems to have become increasingly desolate during the past few years.

Companies are struggling with the downturn, and their risk-averse actions increasingly stifle the development of innovative IT.

Such actions do not stop executives sticking their noses into technology, with agile IT managers  expected to respond quickly to line-of-business demands.

When they are not pushing their beaks into your department, executives are coming up with ideas for themselves based on consumer technologies.

And the pace of change in the information age means IT skills are often out of date before professionals are even certified, let alone employed.

The above conditions mean recommending a career in IT might appear like the equivalent of a life sentence at Her Majesty’s pleasure.

Not so, say IT professionals ­ – with 75 per cent of technology workers suggesting they would recommend a career in IT to a child, according to online recruitment specialist The IT Job Board.

Such positive souls should consider the government estimate that 60 per cent of the job titles that will one day be available to the UK’s 2008 primary school intake have yet to be created.

If that fact is not enough to blow your mind, think about how your own job could change.

By all means recommend a career as an IT professional, but today’s children are more likely to be tomorrow’s “Web 4.0 business collaboration executives”. Or something like that.

Further reading

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Wednesday, 21 May 2008

The innovative CIO asserts their presence

Innovation The technology department has traditionally been the heart of innovation within a business; new processes and systems are created by IT experts and trickled down to users as required.

However, over the past year or so the game has changed. UK chief information officers (CIOs) now face pressures from a number of significant directions: the finance department, the firm’s line-of business managers and the fast-developing Asian economies.

The financial director demands tight fiscal prudence and more IT leaders are choosing to outsource in-house technology operations.

At the same time, users need on-demand innovation, with CIOs required to create an agile technology process where the technology team listens to the business, rather than the other way round.

Finally, innovation in the UK is being challenged by the up-and-coming technology presence of China and India.

This month’s Computing Business looks at how IT leaders can build the organisation in the face of increasing fiscal prudence, fast-changing user requirements, and global research and development.

The good news suggests UK and other EU member states are showing signs of fighting back against the tidal wave of innovation and patenting in Asia.

At 9.1 per cent, the UK had the highest rate of growth in Europe for international patent filings last year, according to the World Intellectual Property Organisation.

There is, however, much work to be done. Research from consultant Capgemini shows two thirds of CIOs believe IT is critical to business innovation, but only one out of four technology leaders felt their IT function is actually driving business innovation.

The survey suggests there is a risk IT departments will be spectators, rather than participants in the innovation-led evolution.

CIOs need to assert their presence and demonstrate how technology leadership ­ through best practice and operational excellence ­ is crucial to business innovation.

Also IT leaders will need to embrace social approaches to innovation because six out of ten new collaboration-related IT projects will incorporate suppliers, partners and customers by 2009, says analyst Gartner.

Creating a dominant­ but collaborative position on innovation will be no easy task. But the rewards for taking a strong stance are likely to be plentiful.

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Monday, 19 May 2008

Vodafone deal boosts mobile social networking

Communications_sparks Researcher Datamonitor says social networking increasingly provides "ad hoc unified communications for the general population". That's a nice way of looking at everything Web 2.0, I think.

People are choosing to communicate and receive communications through an ever-increasing array of collaborative devices and platforms, such as Twitter, Facebook and RSS. Datamonitor's argument suggests consumers are using social networking services to maintain presence across a unified network - and that mobile phones will be the latest and greatest extension of such an effort.

The researcher says added proof came at the end of last week, as Vodafone acquired Danish company ZYB for 31.5m Euros - a firm that has developed a social networking and online management tool for backing up and sharing contact information. The deal represents further evidence of how vendors are attempting to facilitate the movement of social networking services from PCs to the mobile phone, says Ri Pierce-Grove, analyst at Datamonitor:

“Consumers will increasingly be able to move seamlessly between the PC and the mobile phone, keeping their friends and contacts aware of their movements as they choose. This has a number of positive consequences for providers like Vodafone. It increases consumers' use of data plans, and, potentially, provides a new source of revenue via advertising. Both mobile providers and social networking services are competing to find the right mix of platforms and partnerships in order to meet consumer demand.”

Expect similar deals soon. Back in February, analyst Informa Telecoms & Media released research that told users to expect mobile social networking to be a multi-billion business by 2012.

With more individuals logging on to social networks to join productivity, entertainment and social shopping communities, the analyst reported the growth in user registrations will continue at 30 to 50 per cent a year. Informa estimated there could be up to 23 per cent penetration of mobile social networks among users globally by 2012.

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Friday, 16 May 2008

"Glamorous" PR tarred with IT nerd brush

"I love Charlie Brooker, but then doesn't everyone? I also hate people," is a great way to start an email, methinks.

A PR chum of mine emailed the above comment in response to my blog posting a couple of days ago; the one about The Guardian's Charlie Brooker - and strangers thinking you're an IT nerd. While agreeing that working in technology creates a bunch of unwelcome perceptions, she also had the following to say:

"You should try telling people you work in PR. To begin with they assume you lead an Ab-Fab-esque existence and will either be superior about what an airhead you must be, or will get over-excited at the prospect that you have some sort of incredibly glamorous, drug-fuelled existence. If you then tell them you work in technology PR you may in fact redress their initial assumptions, but not for the better. Instead you get the standard tech-inspiring dismissal."

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Thursday, 15 May 2008

Forget dreams of working abroad (or in Cobol)

Young_it Computing reported last week that UK IT is in danger of losing skilled technology professionals overseas. Research from recruitment specialist Computer People suggests almost two-thirds of IT workers are looking for employment opportunities outside the UK.

Good luck and all that, but I would hazard a guess that there is a big difference between looking for overseas opportunities and actually finding work.

The first problem is that an increasing amount of nuts and bolts IT work is being offshored to Asia. Maybe Indian and Chinese firms will poach the top UK talent to work on IT projects, in a similar way to dot com firms in turn-of-the millennium California?

Don’t get your hopes up. While best practice theory suggests firms should only outsource technology on a quality basis, most businesses also outsource work to keep prices down.

Prices are unlikely to be kept low if specialist UK workers are imported from high-paying western economies. Cost-pressured firms across Europe and the US are also unlikely to be shelling out top dollar for global talent.

Information Week’s annual US IT salary survey shows the average wage for a technology professional has dropped for the first time since the dot com crash, from $74,000 (£37,000) in 2007 to $73,000 (£36,500).

Of course, some movement for highly-prized expertise is likely to occur. Fast-developing IT centres such as Dubai are expected to create some demand for IT workers. The Computer People report also suggests staff with Cobol skills are best rewarded, with an average annual salary of £41,870.

Computer People’s managing director Nick Dettmar says the IT industry consists of professionals who know they have sought-after skills. I am not so sure. Despite the promising pay rates, only the bravest of souls would become a Cobol specialist in today’s web-obsessed IT market.

Rather than specialising, UK IT professionals will need to be flexible because of the increasing desire for businesses to create on-demand solutions.

Such flexibility might mean working overseas. But it is more likely to include working across an ever-widening array of technology areas.

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Wednesday, 14 May 2008

Be proud of being a boring technology nerd

Crystal_ball So, I'm currently writing a piece about the future of IT skills - perceptions, change, the end of the world; that sort of thing.

Working in IT - or even IT journalism - can be a hard sell. IT is hardly a 'dinner party job'. Conversations with strangers tend to follow a familiar line:

Stranger: And what job do you do?
  Me: I'm a journalist.
  Stranger: How interesting. Who do you write for? The Times, The Sun?
  Me: I'm a technology journalist. I write for a business newspaper called Computing.
  Stranger: (Barely concealing their complete and utter disdain) Oh.
[Embarrassed pause, followed by nothing. Stranger talks to someone else. Anyone else.]

The Guardian's Charlie Brooker recently wrote a spirited defence of the games industry and Grand Theft Auto IV, more specifically. Brooker refers back to his time as a games journalist and how his increasing interest in the technical nature of the product saw the world perceive him as a nerd, or in his words "a tedious loser":

"Society decrees anyone who knows anything whatsoever about computers to be a boring idiot, while those possessing a similar level of nerd-knowledge of football or cinema or food are well-informed and sophisticated and sexually attractive and cool."

Now that is the truth. Strangely, nerd-like perceptions are even prevalent within the IT industry. Many years ago, I attended a focus group session where IT managers compared their feelings on the major technology publications. One guy said of Computing:

"Yeah, it's like you have to read Computing because you know it's weighty and important. But when I read my copy of Computing on the train, I hide it inside IT Week."

I was lost for words at that point. Though I did laugh. Quite a lot.

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Tuesday, 13 May 2008

Michael Bavington to lead Lloyds' IT funding effort

Innovation Today's earlier post moaned about risk aversion creating a lack of innovative IT. Well, you can't get innovative IT without funding - and Lloyds TSB Corporate Markets has appointed a new director to work with technology-based businesses who turnover in excess of £15m.

Michael Bavington - formerly a service contract specialist with the Hanover Financial Group - has been recruited to help IT companies raise funds using their assets. Bavington will be responsible for providing structured debt and lease funding to the bank's customers, particularly financial institutions and firms operating within the outsourcing sector.

Vasgen Edwards, managing director of Lloyds TSB Corporate Asset Finance, says Bavington's appointment will strengthen opportunities for funding: "He has developed considerable expertise in the key areas of origination and funding, and his specialist skill set will make a valuable contribution to the team."

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Growing risk of litigation threatens IT innovation

Info_manage The growing pressure associated with regulatory compliance is one thing - the increasing risk of litigation is another issue altogether. And insurance specialist Lloyd's suggests businesses could be facing a future liability crisis if they do not face up to growing litigation issues.

One significant impact of the growing threat of liability is that many firms are becoming increasingly risk-averse. Such risk aversion is likely to stifle innovation - which is just what the IT director needs, as he or she attempts to find project funding during the credit crunch.

The research from Lloyd's reveals there is a growing concern among business leaders about the rise of a US-style compensation culture in Europe. IT directors should not that advances in technology and the increasing requirements of corporate governance are particular concerns for the business:

"Shareholder activism is on the rise and a complex operating environment and new legislation serves to increase risks further. An increase in litigation and the fear of potential liability issues is impacting customers through a rise in the cost of products and services and also stifling risk-taking amongst boards who are missing out on new opportunities," says chairman of Lloyd’s Lord Levene, in response to the research findings.

Key findings from the Lloyd's survey include:

  • Two thirds of European business leaders expect to spend more time on litigation-related issues over the next three years
  • Thirty-nice per cent expect the growing risk of litigation to increase the cost of their products and services, and stifle risk-taking during the next three years
  • Over half of all business leaders believe a US-style compensation culture is spreading in Europe and Asia
  • Two in three business leaders believe the scale of liability claims arising from the credit crunch will exceed claims arising from the dot com crash
  • Boards particularly fear future liability issues arising from advances in technology, environmental damage and corporate governance

Further information on the Lloyd's report can be found here: Directors in the Dock - is business facing a liability crisis?

Further reading

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Monday, 12 May 2008

New Web 2.0 awards could be a Catalyst for clarity

Web_20 Who said Web 2.0 was a load of hot air? Certainly not Prime Minister Gordon Brown, who has been busy setting up a new social technology awards programme.

The press release for the UK Catalyst Awards states that "the search is on" to find the community activists, social entrepreneurs, software developers and Web 2.0 technologists who are enabling individuals and neighbourhoods to connect with each other in a positive way. Cool, man. There are nine Catalyst awards up for grabs:

  • The Shock for Good Award: for something that shocked people into doing something good
  • The Revolutionary Award: for something that makes people in power more aware of the need for change
  • The Self-Help Award: for something that helps the creator to help themselves
  • The Chalk & Cheese Award: for something that brings two different groups of people together
  • The David and Goliath Award: for something little that made a difference to a something big and powerful
  • The Young Achiever Award: for someone under 25
  • The Individual Hero Award: for an individual
  • The Community Award: for a community association or group
  • The Enterprise Award: for an innovative new technology solution developed by a business

There will also be a public vote to decide an added extra - the People’s Choice Award. According to the Catalyst web site, every entrant gets entered for the People's Choice award.

But be warned - entering some of the Award categories might be a challenge in itself. Take 'The Shock for Good Award: for something that shocked people into doing something good'. Shock for what? Sounds like a load of hot air to me, which is ironic seeing that we're talking about the hyped-up world of Web 2.0.

Then there's 'The David and Goliath Award: for something little that made a difference to a something big and powerful' - which also sounds a bit broad, in my opinion.

Maybe the categories are knowingly broad, given the context of fluff surrounding Web 2.0? But it could be interesting to see how social technology is rewarded across the selected areas. After all, more elucidation of how social technology can create collaborative benefits is no bad thing.

If you're keen to compete, the applications deadline is Monday 16 June 2008. If you want to find out more, visit: www.ukcatalystawards.com

Further reading

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Wednesday, 07 May 2008

Stop sending useless data and save the planet

Green_computing The world is close to destruction and it is the IT manager’s fault. Carbon emissions are rising and icebergs are melting all because of the technology organisation’s use of power-hungry resources.

Analyst Gartner estimates the IT industry produces two per cent of global carbon emissions, with ageing data centres heavily responsible.

Commonly suggested solutions to the problem include consolidation and virtualisation ­ – doing more with less. Other solutions include implementing energy-efficient server, cooling and power systems.

Such initiatives are all well and good. But new technology projects cost money, and in a downturn the finance director is unlikely to sanction big initiatives. So, here’s an idea: encourage your users to stop sending and saving information.

Information is meant to be the lifeblood of the organisation, the knowledge through which businesses  can gain a competitive advantage. The problem is, of course, that most of us are drowning in information, as users store increasing amounts of content.

Once again, the answer is meant to be provided by IT, often in the shape of integrated software tools. Sounds tempting ­ – but new technology requires new investment, and that annoying barrier otherwise known as the credit crunch looms large once again.

If money is too tight to mention at your gaff, round on your users. Instead of just encouraging employees to stop printing emails, stop them sending and receiving pointless correspondence in the first place.

I was recently away for a week and received close to a thousand emails. Not being able to respond ­ – or more crucially, to delete ­ – the ever-growing mail mountain created a new set of automated responses telling me my email quota had been reached.

All the unstructured email content had to be stored in resource-hungry servers. And you can multiply my experiences by the millions of workers receiving pointless emails everyday. The sum of all this maths is total information inefficiency.

Rolling out environmentally-sensitive hardware is crucial. But reducing users’ demands for information should be the first step towards green computing.

Further reading: Reuse and recycling Top 10

  1. Recycle? WEEE don't undertsand the rules, stupid
  2. Computer Aid shows how to beat the green wash
  3. Cure for green computing overkill is the real deal
  4. Green computing hype needs smarter approach
  5. Green computing is not crucial for CIOs
  6. The green IT rules from Forrester and Gartner
  7. JP Rangaswami says green computing drives BT
  8. SMEs lead the way on green computing
  9. Green computing is a pipe dream for IT managers
  10. CIOs could learn from the green actions of SMEs

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Tuesday, 06 May 2008

How can you make money from social networking?

Web_20 Everyone is doing it, but no-one is allowed to do it at work. What are we talking about? Social networking, the addictive habit of the UK masses. Researcher Datamonitor says Britain has the highest membership of social networking sites in Europe.

Continent-wide, usage is predicted to more than double from 41.7 million to 107.4 million. But at the same time, companies remain sceptical about the benefits of social software, with 32 per cent of firms now choosing to block social networking sites, according to ScanSafe.

Time to wake up, says analyst Gartner - who suggest retailers, in particular, need to be more open to social networking - possibly creating a social community to gather feedback, or creating a marketing presence on large social networks.

The analyst has created a top ten tips for retailers considering a social network, summarised below (for full list, visit Gartner).

  1. There are Social Sites, and Then There are Social Platforms - Social sites can include features such as discussion forums and consumer reviews. A social platform is a large public site that enables users to do the same things as on a social site, but also creates a platform that encourages and eases the development of applications, widgets and mashups.
  2. Social Network Sites Go Way Beyond MySpace and Facebook But Reconsolidation Has Started - Gartner estimates that an individual is able to participate in one to three social networks in any meaningful way. Because there are only so many social networks to participate in, consumers are starting to shift to the large centres of gravity (for example, MySpace and Facebook in North America). Analysts believe that the social network market has not yet settled, so retailers should be cautious with their investments on any one social network.
  3. Social Networks Are Rich in Word-of-Mouth Discussions About Retailers and Products - Retailers should view social networks as a lead-generation channel just as they would search engines, review sites, and price comparison sites. Lead-generation vehicles range from banners, to search term bidding, to application programming interfaces (APIs) that enable social networks to access the retailers’ consumers.
  4. Social Graphs Make Word-of-Mouth Relationships Known and Usable - Social graphs describe how friends are formally linked to each other on a social network. Word of mouth is effectively amplified by making social graphs usable by friends and business entities on a social network.
  5. Viral Propagation is Boosted in Social Networking - Viral marketing is the most obvious route to take with viral propagation but must be closely monitored and managed. Communication between friends about something as simple as a pricing or promotion mistake on a Web site can propagate very quickly in social networks.
  6. Applications for Social Networks are Easier to Build - The latest push in the social network world has been the focus on creating a platform that allows individuals and companies alike to build applications (sometimes called widgets) that are designed to run on the social network. Social platforms, especially Facebook, have been providing a platform and technical guidelines to make building these applications easier.
  7. Social Networks Are a Huge Source of Consumer Data, but Retailers Cannot Easily Access It - Already some people are regretting having made available so much information available on social networks and access to this information will decrease further over time. However, access to some of this data can be gained by building applications that require members to agree to share some of their data in exchange for using the application.
  8. Communities, Groups and Networks Can Be Created By Anyone and Are Impossible to Control - If a social network provides corporations too many capabilities in interacting with members (for example, advertising and selling), there is a risk that members will leave the network. Gartner advises retailers to build their social network presence on content produced by members and create applications that engage members in providing feedback in areas such as product design.
  9. Social Networks Are Not Capable of Commerce, Yet - Gartner advises retailers against becoming an early adopter of commerce capabilities on social networks. This lessens the chances of being part of a movement that may drive away social network participants because of the perceived commercialisation of the social network.
  10. Social Networks Are Merging Into the Real-Time World - For now this remains an emerging consumer practice, but the ability to access social networks from mobile phones is being promoted by the wireless carriers.

Gartner's tips range from the obvious (social networking is more than just Facebook and MySpace), to the more interesting (social networks are not yet capable of supporting commerce).

The analyst says retailers should stay away from commerce-based social networking - a rule of thumb that might apply to all sectors. I guess the follow-up question might be: "How can you commercialise a successful social network?" After all, the security issues are so significant that most individuals are not keen to give away valuable personal information.

The continuing consolidation - which Gartner refers to as reconsolidation (has there been a previous consolidation stage, then?) - of social networking sites might help provide some clarity. As individuals find useful platforms and begin to trust the methods of operation, more firms should be able to create commercial operations.

Well, that's the theory anyway. If not, expect to be drowned by more and more social networking "opportunities" - most of which offer few benefits and little in the way of commercial viability.

Further reading

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Thursday, 01 May 2008

The CIO must act now to prevent project lethargy

Cio_butterfly Computing tends to concentrate on the British industry blue chips, such as last week’s interview with Royal Mail IT chief Robin Dargue. And why not? Big companies fund big IT initiatives, such as the postal service’s £1.2bn change agenda.

Such projects are exciting, and attention is rightly paid to blue-chip technology successes, especially when domestic companies achieve a global lead.

But it is not always like that. Every worker has at one time or another experienced project lethargy.

You know the feeling ­ the one where you and your colleagues come up with a brilliant initiative; something that could improve business efficiency. You also know other firms in your sector have been slow to realise the benefits of the latest, greatest trend.

But your transformation plans are slowed by layers of bureaucracy, and the leading edge quickly blunts under a stack of executive sign-offs. What once seemed an opportunity to beat the competition quickly becomes a game of catch-up.

Sound familiar? One IT leader certainly seemed to think so, suggesting to me recently that the project lethargy story was all too familiar.

One possible conclusion is that the bigger the firm, the slower it is to realise the value of a new opportunity.

New business models do not help IT leaders. In what seems a matter of months, technology has gone from being a misunderstood backwater to a business essential.

Technology teams were once left to come up with their own ideas. Now, more executives are approaching the IT department with specific demands.

Analysts talk of the need for agility; vendors talk of the need for line-of-business IT management.

And while big companies often fund big IT initiatives, they also slash spending. A recession means the IT department is pushed to create innovative solutions with a decreasing budget.

The bright side is that in an age of information and collaboration, the IT department has never been more central to business development.

Focus on how your ideas can transform organisational processes ­ it should help your boss wake up to the importance of leading-edge technology.

Further reading

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