Helena's Blog

“An economy is only as good as its supply of talent” IBM’s vice-president of innovation and relations with universities said in a Globe and Mail report. This captures the necessity for companies to give proper acknowledgement to the minds that allow their business to grow- and continue to do so.

Innovation is not encouraged the same way corporate efficiency is. Narrow management hierarchies that segment workers and create bureaucracy often only serve to marginalize the creative centres in a company. As Zappos has proven with its revolutionary corporate culture of “play hard, work hard”, it pays to treat your employees well. In the technology industry, where the mind of engineers and designers are essential for a company to remain competitive, recognition must be given. Rewarding innovators with vacation time or bonuses not only serve as incentive to stay loyal to the company (as creative minds are in high demand), but also gives them the leisure to create new ideas, products etc. Keeping research and development teams under constant pressure from budget and time constraints often results in decreased productivity, and ultimately, less profits. So as IBM’s VP says, “We need to get back to treating technologists as rock stars.”

Talent techies deserve ‘rock star’ treatment: IBM

This is in response to Ryan Un’s blog post “Is Microsoft in Trouble?”

From eexploria.com

Most of us have a tendency to associate Apple with glossy, modern technology and Microsoft with software for computers of the past. In the past few years, as Ryan points out, this trend has been reflected in Microsoft’s hugely declining profits. With an increasing number of the younger generation purchasing technology for reasons other than functionality, Microsoft is struggling to appeal to “cool” crowds.

Even with the release of Windows 8 and the Surface tablet, Microsoft is just too little, too late in the market. Its products and system are looking increasingly like Apple copycats, and unless Windows can offer some serious brand value to consumers, its products will be unable to pull Microsoft out of the red. Microsoft needs to focus on competing against rivals through product quality, system superiority and differentiation from Apple. Moves such as opening Canada’s first Microsoft store with a remarkably similar layout to the Apple store in the same mall will only communicate to consumers that its product is the same as Apple’s, only without the brand association. Apple grew because it was radically different than existing products in the market and if Microsoft should take anything from its rival, it should be just that.

The Globe and Mail report on Microsoft’s new store:

http://www.theglobeandmail.com/globe-investor/new-microsoft-retail-store-aims-to-establish-cool-stuff-factor/article5353443/?service=mobile

This is in response to Andrew Winston’s blog post on his Eco-Advantage blog.

Economics 101: consumers want to maximize utility. Unfortunately for manufacturers, this means that most customers are not willing to pay premium for sustainably produced or environmentally friendly products. However, the “green” movement is very real, as Andrew points out, so-called conscious buyers, “which are quickly becoming the majority of consumers, not a niche segment, want it all… They demand more sustainable products at the same or lower price.”  

Levi’s new Water< Less line of jeans.

Luckily, adopting sustainable processes has usually resulted in financial benefits. Levi’s recent line of Water<Less jeans reduces the amount of water needed to produce a pair of jeans from 42 litres to as little as 1.5 litres, so far, this has saved 172 million litres of water, according the the company’s website. Levi’s line of jeans also costs no more than its regular line, boasting a new ‘sustainable’ value proposition towards “conscious” consumers. Also, in the process of cutting water use, Levi’s was forced to revisit old manufacturing practices and adopt new, more efficient techniques. In the end, this move benefits everyone: Levi’s profits increase due to decreased water use and manufacturing time, consumers aren’t forced to pay premium, and environmental impact is greatly reduced. The stigma that going green costs too much is wrongly deserved. Most consumers want to help the environment and most companies want to increase profits, so why don’t more follow in Levi’s footsteps?

A review of Levi’s Water<Less jeans: http://www.businessgreen.com/bg/review/2079960/water-levis-water-jeans

The Eco-Advantage Blog: http://www.eco-advantage.com/blog.php

Energy Aware, the brainchild of Sauder graduate Janice Cheam could the way energy companies make money. The company’s Power Tab in-home display system is a wireless system that communicates with utilities meters monitor energy consumption in real time, encouraging consumers to use less energy.

The Power Tab system displays real-time energy consumption in kWh and dollars.

It may seem as though utilities companies cannibalize their own business.  However, currently, due to delayed or inaccurate meter information, BC Hydro must transmit more energy than is needed to ensure every customer is supplied. Since the Smart Meter is required for the Power Tab system to function, customers are incentivized by energy savings to replace their old meters. This will allow BC Hydro to better collect energy use data and streamline energy distribution, reduce energy theft, improve outage response, and ultimately lower operational expenses by wasting less energy. By capitalizing on the desire for both customers and suppliers to save money, Energy Aware has the ability to enter almost every market. If it is able to partner with companies in countries such as China or India, the company could encourage even more energy-saving innovations- generating profits for itself, and its customers.

For more on the business case for Smart Meters, see:

http://www.bchydro.com/etc/medialib/internet/documents/smi/smi_business_case.Par.0001.File.SMI-Business-Case.pdf

While Hurricane Sandy won’t seriously affect the economy, its financial toll is just beginning to take effect.

The force shut-down of business activities on Monday have caused disruptions in supply which are “likely to linger through the rest of the week”, as well as many idled workers- creating even more losses as businesses try to rebuild after the storm. Retail will suffer the most from Hurricane Sandy as consumers will have spent a good deal of disposable income in preparation for the storm, and will have less ability to purchase non-essential goods. Further, November is the beginning of the holiday season, and with consumers spending on rebuilding or insurance costs, retailers, as Burt Flickinger III of retail consultancy Strategic Resource Group predicts, “could lose at least $25 billion in sales this week”. Supply issues associated with damage to factories and the shut-down of six large oil refineries in anticipation for lower demand post-storm could further drive costs for business upwards. The financial damage caused by Sandy could prove to be far greater than the cost of damage to infrastructure and property, as lags in the supply-chain could drive the price of goods up and further discourage consumer spending during the holiday season.

The Daily Finance reports: http://www.dailyfinance.com/2012/10/30/economic-impact-from-hurricane-sandy-wont-derail-economy/