Governance, Risk and Compliance gains prominence

The need to comply with government mandated compliance regulations, coupled with the increasing need to safeguard sensitive data is forcing businesses to re-look their data storage, accessibility, security and management policies and needs.

These pressures are compounded with the escalation of a globally interconnected market and supply chain with frequent mergers, acquisitions, and re-structuring that forces organizations to better focus resources to improve both the quality and control mechanisms surrounding their data.  

Inherently linked to this challenge is the need to objectively assess and proactively manage the growing number of risks prevalent in the market. 

To address these challenges, organizations need tools to help management and employees visualise, explore and communicate complex business information e.g. processes, procedures and regulations, that forms the basis of the organisation.

10 Factors in managing global talent

Courtesy McKinsey & Company

What are Hospital CEOs Top 3 Issues

How does the CEO of a best performing hospital, according to Thomson Reuters 100 Top Hospitals, manage priorities? Hospital CEOs from a wide range of hospital types consistently rate three items as the ones they are most concerned with:

• Quality Measurement
• Physician Medical Staff Alignment
• Cost Reductions

Quality Measurement: 

Quality measurement is a broad goal encompassing not only patient results but the efficiency and effectiveness of staff members and departments working cohesively to uphold the highest commitment to quality.

• CEOs mention diving into every department to determine which areas are strengths and which areas need to be improved upon.
• Informing staff members of how they rank on a state wide and nation wide scale is a great way to put team members’ roles and expectations in perspective.
• Quality endeavors also extend outside hospital walls such as with the patient-centered medical home which aids in reducing unnecessary readmissions, thus promoting quality of care.

Physician Medical Staff Alignment: 

On par with quality measures is aligning the right members to bring that commitment of quality to fruition. Clearly building strong relationships is key, but what CEOs specified was quality physicians needed to not only align with staff but work jointly with management to develop and implement quality initiatives.

• Utilize physician leaders experience and involve them in designing quality metrics.
• Have honest discussions to ensure administration and hospital staff are aligned and goals are on the same page.

Cost Reductions: 

One of the most serious issues on any CEO’s mind is ensuring the financial viability of their organization. As more hospitals begin adopting value-based purchasing, leaving the old model of fee-for-service will be a delicate transfer involving everyone in the organization to provide assistance.

• There’s a movement toward accountability as patient satisfaction and readmissions scores have a say in financial incentives awarded.
• A big challenge will come from the increased number of performance measures which, if not executed properly, will have a trickle down effect on reimbursement, staff and patient perceptions.
• Dig deep into processes and systems to see where more efficient tools can be put in place. Reducing health care-associated infections is one of many areas that hospitals can investigate to reduce avoidable errors.

ICT Sustainability Global Benchmark Index 2011

ICT is a large consumer of energy, and is globally responsible for 3 per cent of greenhouse gas (GHG) emissions. At current rates of growth in ICT usage, this is forecast to grow to 6 per cent by 2020. More importantly, ICT is responsible for 5 to 10 per cent of the typical economy’s total electricity consumption. In some organizations that rely heavily on ICT, such as banks, government and in many other administrative industries, ICT can account for up to 75 per cent of all energy consumption. 

The ICT industry must decarbonize itself to the greatest extent possible and exploit its unique opportunity to build and deploy enabling technologies. The application of ICT in areas such as smart grids, smart logistics, smart transport systems, smart building systems, cloud computing and the supporting societal applications will enable significant reductions in emissions in other industry sectors, and support the transition to a prosperous low carbon economy. 

In a recent survey by Fujitsu, not only is the maturity low, the overall index has declined slightly from 2010, indicating that some of the buzz has gone from Green ICT and that it is not being given priority or initiatives have begun to come unstuck. 

Not only is the maturity low, the overall index has declined slightly from 2010, indicating that some of the buzz has gone from Green ICT and that it is not being given priority or initiatives have begun to come unstuck. On the positive side we have seen an increase in ICT solutions that include ICT Sustainability at the core, such as Cloud Computing, the design of sustainable data centers and the increasing use of renewable energy onsite.

Some key findings 

• 54.3 - The average ICT Sustainability Index in 2011, measured across all countries and all industry sectors.
• 2.7 - The decline in the Index from 2010 to 2011, indicating that the maturity of ICT Sustainability has decreased over the last 12 months.
• 19.6 - The difference in the average index for those organizations that have total control over and responsibility for their ICT power consumption 65.1, and those who have never even thought about it 45.5.
• 14.2% - The proportion of ICT departments who include the cost of ICT’s power consumption in their ICT budget.
• 64.6 - The highest Index for any industry in any country: Manufacturing in Canada.
• 80.0 - The ICT Sustainability Index score considered to be best practice, or close to it.

Read full report here.

A 5-step primer to entering an international market

Here are five tips to help prepare your business to enter the international market:

1. Educate yourself on the customs and business etiquette of the international market. When entering a foreign market make sure you know the country’s history, the proper way to greet someone, the ordinary times for lunch (or prayer in many African, Asian and Middle-Eastern countries). Make sure you are communicating with them in the expected way within their society — e.g: with the appropriate salutation.
2. Gather historical data on the country’s currency value fluctuation and import/export timelines. This is crucial. The deal you discuss today may not be executed in time to reap the full potential of the opportunity. You could be negotiating a deal that may cost 15 percent more in a few months when the transaction is finalized. Worse yet, you may offer a promotion that costs you significantly more a week into the offering. Lock in currency rates and delivery dates in advance whenever possible. The less speculation, the better.
3. Become an expert on the country’s laws governing business. Have local representation if possible, someone who can help you navigate any unforeseen obstacles and explain all contract provisions and terminology. Know and understand the laws and legalese of the jurisdiction that governs your contract before it becomes legally binding.
4. Conduct focus groups to test the waters in the prospective international market. Understanding each country’s culture means you have to find ways to reach what would otherwise be the same demographic but in a different location. A new approach may be needed to make your product or service suitable to the needs and expectations of the potential foreign market and its culture. Studying these countries, including their professional and personal customs, will ensure that you conduct yourself in a respectful way. This will also signal to the business leaders and potential customers in the new market that you know their protocol and you’ve take the time to adapt to it.
5. Find out what your competition has done in the same territory. Has one of your competitors tried to enter this market before? What obstacles did they face? How did they approach the new market? And most importantly, what would you do differently?

Read the full article by Lauren Maillian Bias, Founder and CEO of Luxury Market Branding featured in Forbes.com.

The true cost of mismanaged tech projects

To top managers at Levi Strauss, revamping the information technology system seemed like a good idea. The company had come a long way since its founding in the 19th century by a German-born dry-goods salesman: In 2003, it was a global corporation with operations in more than 110 countries.

But its IT network was antiquated, a balkanised mix of incompatible country-specific computer systems. So executives decided to migrate to a single SAP system and hired a team of Deloitte consultants to lead the effort. The risks seemed small: The proposed budget was less than US$5 million (S$6.4 million).

But very quickly, all hell broke loose. One major customer, Walmart, required that the system interface with its supply chain management system, creating additional hurdles. Insufficient procedures for financial reporting and internal controls nearly forced Levi Strauss to restate quarterly and annual results.

During the switchover, it was unable to fill orders and had to close its three US distribution centres for a week. In the second quarter of 2008, the company took a US$192.5 million charge against earnings to compensate for the botched project - and its chief information officer, Mr David Bergen, was forced to resign.

A US$5 million project that leads to an almost US$200 million loss is a classic "black swan". The term was coined by our colleague Nassim Nicholas Taleb to describe high-impact events that are rare and unpredictable but in retrospect seem not so improbable.

Indeed, what happened at Levi Strauss occurs all too often and on a much larger scale. IT projects are now so big and they touch so many aspects of an organisation that they pose a singular new risk.

Read the full article by Bent Flyvbjerg, BT Professor and founding chair of major program management at Oxford University's Said Business School and Alexander Budzier, a consultant at McKinsey & Co.

Spurring the market for high-tech home health care

A daunting array of financial and operational barriers is holding back growth. What can be done? 

On the surface, technology-enabled home health care should be thriving in the United States. The country’s aging population and the transformation of acute illnesses such as heart failure into chronic diseases mean that the number of patients is growing. In addition, new medical-technology devices could help keep patients at home rather than in costly institutions, such as assisted-living facilities or nursing homes—leading to potentially big savings for the health care system.

Instead, the full potential of the technology-enabled home health care market remains to be tapped. In the United States, home care accounts for about 3 percent ($68 billion a year) of national health spending. The market is increasing by about 9 percent annually, solid but hardly booming growth, especially since labor (mainly nurses and aides) accounts for about two-thirds of the expenditure and home-monitoring technology represents a small fraction of it. 

To understand what’s holding the market back, read the McKinsey report.

South Korea’s discerning devotees of deluxe

South Koreans spend a higher percentage of their household incomes on luxury goods than the Japanese do, McKinsey research shows, and the South Korean market looks to sustain strong growth for several years to come. But the country’s thing for bling is evolving: buyers are beginning to think more about brand differentiation than about ostentatiously displaying famous logos.

Read about this changing landscape in “Korea’s luxury market: Demanding consumers, but room to grow,” a write-up of the results from McKinsey’s 2011 Korea luxury consumer survey, available on the McKinsey & Company Web site.

How do you group your social contacts in social media?

Friends, acquaintances, colleagues and business partner networks change and evolve constantly. Every day we meet new people, develop relationships with them - personal, business and emotional. These relationships deepen or loosen over time and happen in a very fluid manner. Your friend this morning may not be viewed the same way in the evening and it is not uncommon for one to think of a person two years later, to reach out to him or her and to continue to strengthen the relationship.

Unfortunately the current implementation of social media in Facebook groups and in Google+ circles necessitates having more defined relationships that what it is in practice.

It assumes that all individuals in a group are the same when what you share with one friend is not always what you share with another.  Likewise what one friend may view positively may be negatively by another friend.

Reality is a little different from technology adaptation and care must be exercised when using social media to mirror and support your interactions with others.

Challenges of manufacturing in a globalized world

"Technology increasingly underpins all of our lifestyles. Our homes, our places of work, our hospitals and schools, our towns and cities, and the countryside all bear witness to the impact of new technology on the way we live. There is no sign that the relentless advance of technologies, often made possible by radical advances in manufacturing and delivery of services, is slowing down, despite the very real concerns about impact on the environment and on the distribution of wealth.

But globalisation is not quite working out as many were expecting. Emerging economies are not simply cheap job shops' for the west. They are innovative in their own right, increasingly able to compete at the forefront of skills, technology development and use. They are becoming increasingly sophisticated markets for high value-added products and services, sources of skilled people and opportunities for research and business partnerships." 

Follow this link to know more from leading academic industrialist Professor Lord Kumar Bhattacharyya of Warwick University on Manufacturing in the Globalised World: Challenges Faced by Companies at a talk co-organised by the Singapore Institute of Management.

Innovating the dining experience

To succeed in the restaurant business in Singapore is tough. Every day many new restaurants open and many fail.

Not being able to manage infrastructure costs, staff retention, not attracting new customers and inefficient kitchen management are some of these.

However the biggest challenge is managing innovation. Food is a product you need to sell and it must appeal and satisfy the target customers. Customers must return, spread positive reviews and in turn attract more customers.

As new market segments open up, as affordability moves up and down, as demography changes and as market globalization increase choice, so do peoples’ taste and preferences.

Innovation and Return on Innovation are key metrics now being used to measure the business health of businesses in the hospitality sector.

What is your strategy towards new product innovation?

What is your strategy and plan on new product promotions?

What is your sense of where competitors are innovating and targeting campaigns?

What is your culture of innovations – in the kitchen, in the front office and in marketing and sales?
How are you managing staff training and upskilling?

How is your innovation contributing to improving customer experience?

And finally, how are you leveraging technology to innovate?

Use of mobile technology, cloud-based services, integration to kitchen management, table management and other concierge services are key to improving the whole process efficiency (pre-dining, dining and post dining) customer experience.

Are you so excited about the solution that you have missed the need?

People buy a product or service to get a job done - The NEED. This need varies from market to market and customer demography.

Unfortunately companies tend to define the business opportunity in terms of the product technology or perceived use of its features. - The SOLUTION.

Very often, there is so much focus on the solution in marketing campaigns that the real need is often ignored. Worse business plans are derived from market studies that have glossed over the real needs in the market and are merely extrapolation from other market studies.

By thinking about markets from the perspective of need,  a company can more accurately determine which markets to enter and how best to adapt ideas better to solve the needs of job executors. A market is attractive for pursuit when it consists of a large number of job executors who are executing a job frequently and are deeply dissatisfied with their ability to execute the job effectively; hence willing to pay well to get the job done perfectly.

Radialis executives can help you better qualify your markets and help in your ideation process with useful insight.

Does your business have a mobile strategy?

Today, in the Asia Pacific more individuals use smart phones and web-enabled mobile devices, like tablets, rather than desktops, especially when they hit the road.

According to a recent survey by IDC, in the 4th quarter of 2010 the shipment of smartphone units already exceeded that of personal computers.

Travelers need to access a variety of information when mobile, information from hotel, travel agency, restaurant, government and other business websites, often in locations and countries they are not familiar with. Today many websites are not browser friendly for mobile users as they have not been suitably adapted for the form-factor of smartphones and tablets. As a consequence, sites take a long time to load, are poorly rendered, leave consumers with negative impressions and do not grow customer touch points for companies.

Research has shown that three out of five people will be less likely to return to a site if they are unsatisfied with it, and 40% even choose to visit a competitor’s site next. This demonstrates the importance of having mobile versions of websites that are compatible with mobile devices and allows consumers to access them quickly and easily.

There are many technologies, if suitably adapted can significantly boost user experience by enabling consumers to access web content that looks and behaves like any other user-friendly mobile phone application.

Do you see this as a challenge? If so contact us and we can help you with the right business ideation strategy for mobiles.

Autism, IT and Innovation

High-functioning autistic employees have traits such as strong memory and passion for details that work well in certain IT fields, reveal industry watchers, who say extra steps can ensure employment benefits for both organization and worker. This is based on the experience of Danish computer company Specialisterne and Singapore-based autism-focused school, Pathlight as featured on ZDnet.

Strong memory, passion for details and ability to think visually are some of the traits that make high-functioning autistic workers currently an untapped talent pool for the IT industry, industry watchers point out.

Specialisterne, hires only people with autism, specifically from the high-functioning end of the autistic spectrum. According to Thorkil Sonne, Founder, his experience with them has demonstrated that these special-needs people not only have a robust memory and attention for details, they take pride in what they do, have perseverance for repetitive tasks and are "very precise in their way of communication".

"High-functioning" autism typically refers to those that are able to live relatively independent lives compared to others who may demonstrate associated learning disabilities and need a lifetime of specialist support.

Rather than simply place them in jobs that might not be a good fit, Specialisterne assesses every individual's skills, identifies what would make them feel wanted in the workplace and helps them excel.

"We try to find specific tasks in the business arena in which the abovementioned characteristics are important in order to do a great job," he explained. "We believe that up to 5 percent of all tasks could be solved successfully in a superior quality by our staff."

Specialisterne has been successful in solving tasks such as software testing, quality control, data entry and logistic services, he noted, adding that his team has proven that autistic workers can do better jobs than that of "other providers" the company's customers previously experienced.

Specialized education

Anita Russell, autism consultant at Pathlight School, a Singapore-based autism-focused school with mainstream curriculum augmented by "life readiness skills", shed more light on the matter.
She said in an e-mail interview that people on the autism spectrum vary widely in their skills, abilities, needs and preferences.

Russell, citing Temple Grandin, a vocal advocate of autism who has Asperger's Syndrome, noted that when people work at tasks or their jobs that match how their brains process information, this will make learning and employment "much more feasible".

She added that for a "significant number" of people with autism, processing information and facts is best accomplished using visual means or, in other words, "visual thinking".

In a separate interview with the Minneapolis-based Star Tribune, Grandin explained that her ability to think in pictures allows her to "see" every aspect of an industrial machine before she draws it.

To better develop this among Pathlight's students, Russell said its IT program has been tailored to meet their learning preferences and strengths. Developing talents in the computer arena is balanced with equipping them with skills in self-organization, problem solving, managing emotions and social communications--areas which people with autism tend to struggle with, she explained.

Pathlight has also been beefing up its IT curriculum, training its students in word processing using Microsoft Word and the creation of presentations using Powerpoint since 2005, the consultant said. Additionally, it started a pilot phase of its IT & Design School in March this year to close the "digital gap" for students with special needs, and create new opportunities for them as the Singapore government continues to push for a knowledge-based economy.

To date, about 56 of its students are attending courses such as introduction modules to visual arts, digital art and interactive design. Russell revealed that the school has plans to introduce new modules in 2012 which will include illustration, Web publishing and animation.

Within the IT industry, specifically, Sonne said the market "needs" the special skills and minds of high-functioning autistic people who have passion and are able to "think differently" from that of other employees.

He added that the corporate sector is "very open" to Specialisterne's concept of making sure companies provide the job scope and environment that will allow this group of people to succeed in the work arena.

In fact, he mentioned that IBM recently hired two people whom his company had assessed and trained during an internship partnership with the IT vendor.

"By using our management model, corporate companies can tap a huge pool og untapped skilled resources,"  Sonne surmised.

Trends in the Thai ICT market

According to a recent report by IDC, the Thailand ICT Market will Gain Further Momentum in 2011 with Greater Economic Optimism and the Adoption of New Technologies
 
In 2011, the Thailand information and communications technology (ICT) market will be shaped by advancements in social media, greater acceptance of smartphones, and increased demands for data services for both fixed and wireless communications, according to the annual International Data Corporation's (IDC) predictions report for the Thailand ICT market.

Key is the rising demands from consumers for mobile devices and personal computing systems will play an important role in driving ICT spending in Thailand this year. Comparing the different verticals, the financial services, telecommunication, and government sectors are likely to be dominant spenders.  

Due to the increasing popularity of social media, IDC foresees that enterprises in Thailand will be evolving to better leverage the benefits of this new platform to drive their business forward in Thailand.
 
The following are IDC's top 10 ICT predictions for Thailand in 2011. These trends are what IDC believes will have the biggest commercial impact on the Thailand ICT market this year.
 
1. Thailand's IT spending to sustain in 2011
 
IDC predicts that the upward IT spending trend will continue in 2011. Hardware, software and IT services combined are expected to grow 9.3% year-on-year (YoY), allowing the total country IT spending for 2011 to exceed US$6.5 billion.
 
2. Telecommunication Services spending will show persistent climb
 
IDC expects the Thailand telecoms services market to maintain a positive growth trend in 2011 expanding 3% YoY. Both fixed and mobile segments will also post 3% YoY growth. In 2011, the mobile services market will encompass 66% share of the overall telecoms services market in Thailand. Mobile voice will continue to be the main source of income for operators, although this segment will only grow 1% YoY, while data will expand by 16%. In 2011, IDC expects multimedia and portable broadband services to have a combined contribution of 70% to the overall mobile data services market in the country.
 
3. Mininotebooks will feel the pressure from the rise of media tablets
 
The hype about media tablets has already been causing many consumers to think twice about buying new PCs, especially mininotebooks. The mininotebooks market is hurting not only in demand but also in supply. PC and Smartphone vendors have been launching their versions of the media tablets from late last year to target the same segments that used to be occupied by mininotebooks. However, there is no sign that media tablets will replace mininotebooks in the near future as the capabilities of media tablets, compared to mininotebooks, are still limited despite the ability to offer more superior user experiences. IDC predicts that the adoption of media tablets in Thailand will be especially significant in the beginning of the second quarter of this year.
 
4. IT Service Providers will refine their Verticalization Strategy
 
IT service providers will be intensifying their value-added services offerings in 2011. On top of their usual products and solutions, they are likely to offer customized services to better address the diverse needs and requirements of different verticals. IDC believes that service providers will be especially focusing their energies and resources on getting to know the telco, government and education verticals so as to enhance their value proposition for these markets. The strategy will also enable them to make their horizontal products and services more enticing to customers in the verticals. For example, most IT vendors will partner with local system integrators (SIs) or Internet telephony service providers (ITSPs) to deliver customized solutions that fit the requirements of local businesses.
 
5. Businesses on the Cloud expected to materialize
 
IDC believes that the infrastructure-as-a-service (IaaS) cloud computing model will be widely adopted in Thailand in 2011. The services are likely to be offered by ITSPs and Internet service providers (ISPs) that have Internet datacenter facilities. These service providers will actively expand and implement strategies to manage and optimize their systems based on cloud technologies to help businesses increase their productivity. Storage, server, security services, as well as some enterprise collaboration platforms represent examples of infrastructure cloud services that are available in the market today.
 
6. Social Media and the Advantage of Social Analytics—Exploring Analytics Abilities over Social Platform
 
2010 witnessed some early social media adopters in Thailand from the banking, telecoms and government sectors. By registering their profile on social media sites like Facebook, these industries are taking the initiative to test out new platforms to market their latest offerings, gain feedback and monitor public opinions through online communities. In 2011, we expect business analytics software vendors to introduce tools that provide on-demand social analytic solutions that conduct text mining and "sentiment" analysis of dispersed customer data over social websites (e.g., Facebook, Twitter, YouTube, forums, blogs, etc.) for enterprises. The solution can possibly deliver real-time insights such as web-based dashboards and reports. IDC believes that the wider adoption of social platform across enterprises will encourage investments in analytics to complement online community feedback and sentiments.
 
7. Mobile OS - Application design will span across multiple Mobile Platform
 
Use of smartphones has become an important part of people's lifestyle and lately, smartphones have shown massive growth in Thailand. In 2010, the data-centric smartphone market grew close to 100% YoY and in 2011, IDC projects that it will reach about 2 million untils, growing by 30% YoY. Nokia's Symbian, Apple's iOS, Google's Android and Research in Motion's (RIM) BlackBerry OS are the current market leaders in Thailand, and IDC projects that they will continue to enjoy high growth in 2011. IDC believes that there are ample opportunities for developers creating apps for any of the major platforms, as growth in apps is driven by growth in data-centric smartphones. This just goes to show that it does not really matter whether the platform is open or closed; applications are needed and in high demand in this data-centric world.
 
8. Rise of Integrated Infrastructure solutions to stir channel development
 
Solution bundling of systems infrastructure with storage hardware and/or software along with security capabilities is often appealing for medium to large businesses for its "value-added" qualities. IDC believes that new product mixes with strategic pricing will continue to generate momentum in the market specifically from vendors offering systems infrastructure, storage, security and services solutions. Thailand's systems infrastructure software market grew at 10.1% YoY in 2010 and is expected to expand 13.5% this year. In 2011, the concept of virtualization is likely to draw huge attention for its ability to enhance consolidation and bring flexibility to infrastructure platforms.
 
9. Consumers will invest more on Licensed Security Software
 
Despite conservative consumer spending and the extensive availability of pirated software, end users are increasingly paying for licensed security content and threat management (SCTM) or antivirus software. This can be attributed to vendors' aggressive and unique marketing campaigns to influence the market. For instance, Kaspersky, BitDefender and Norton have joined the race to influence the market to purchase licensed security software through above-the-line media to promote corporate social responsibility (CSR) initiatives. These vendors are also aggressively rolling out sales promotions and making improvements to their after-sales services. IDC expects SCTM spending to grow 13% in 2011 and security at 11.7%.
 
10. Rising Demand for Mobile Data Services Will Stimulate Operators to Customize
Variety of Packages
 
Demand for mobile data usage has been increasing and will continue to grow this year due to the popularity of smartphones and mobile devices among consumers and business users. In 2011, demand for mobile data usage will be on the rise. This is mainly due to strong demand coming from mobile internet access, instant messaging services, and social networking. This will trigger mobile operators to devise new data packages to meet the different demands of consumers and business users. Volume-based data packages are expected to be more popular as compared to time-based packages due to the popularity of smartphones and mobile devices since users are likely to be "connected" 24/7.

Challenges of entering a new market

Your product engineering team has spent months, possibly years, developing an exciting new solution. You have conducted extensive market research, prototyping and product testing in your home territory. It has sold well and you now feel you are ready to enter a new market, the Asia Pacific, which you believe is an exciting and possibly very lucrative for your growing business.

Entering a new market with products and services often results in failure for many companies. The Asia Pacific region comprises many markets with their own unique needs and challenges.
 
While the conceptualization of ideas may be brilliant, and the translation into products and services good, they still fail because the targeted customers do not see value in them.
 
Value is more than what the product of service delivers. It’s what is perceived by the users as seen to deliver that.  This is what makes them appealing to customers and what will compel them to buy and use.
 
An exceptional product requires not just a good understanding on what is being built but what customers want and will buy in the targeted markets.
 
Unfortunately products cannot be designed for every market without impacting the time to market. As a result products and market messages need to be adapted and aligned to needs prior to entering each new market.

Will you succeed or fail? What steps are you taking to ensure success.