It should be noted that unemployment “stabilized” in November and if the trend continues, we should see the rebound starting to take place.
Lawrence H. Summers, President Obama’s top economic advisor, predicted on Sunday that by the spring the ranks of working Americans will start to grow once again.
via Summers Predicts Job Growth by Spring - NYTimes.com.
Jobs should continue to be lost, but at fewer rates, and at some point, the “leaner” firms will have to refill the spots that they lost due to the shrinking economy. When that happens, as simple logic tells us, job growth will hit the “zero point” and be positive thereafter.
It may not be much consolation for those who have lost their jobs, or those that have not been able to find work after graduation or being unemployed, but the economic situation has forced forward thinking firms to focus on sustained competitive advantage and ensuring costs are in line with their offerings. Peter Drucker would have recommended firms focus on innovation and investment in the future within these “uncertain times,” and those that have, will be poised for growth and ultimately the creation of jobs.
I would expect, as might seem like common sense, to see larger more innovative firms already starting to hire, and more staid industry leaders to follow suit when economic indicators are more favorable.
And this should come as welcome news to many.
Cloud computing could become mainstream with Google’s annoucement this week to release the Chrome operating system for NetBook PCs.
I believe the cloud is the platform of the future, and Google is uniquely poised with their already popular office suite, Google Docs, and their other Google Apps which do just about everything owners of netbooks would be looking for.
This is certainly an exciting announcement for consumers looking to the future, and should cause real innovation and competition within the other computer and software makers.
On a side note, Ars Technica has an article discussing the reliability issues with cloud computing, and whether or not our infrastructure is ready for Chrome. I agree, with the downtime that Google has faced earlier this year, which took down a large chunk of Internet traffic in North America, it may be too soon for firms to invest their money making ability (read: computer software) in the cloud. What happens when Google’s data center is down, and my netbook can’t open an office document that I have to send to my client because of a server issue? Well, we need to make reliability and uptime as close to 100% before people will take this service seriously.
But, SaaS and Cloud are looking brighter as we move further into the future.
Update: See this Barron’s article describing the problem with Chrome, and what they believe to be Google’s major misstep. (Editorial Note: I think they are missing the value of the cloud. They are using the old value model of standard software architecture, and are discrediting future innovation and consumer preferences changing in the open market. In short, I think they got it wrong.)
Serendipitously, I just uncovered a post relating to IBM and social media use guidelines, which I wrote about yesterday with regard to the Associated Press’ new policy. IBM’s document is a “public submission to the Department of Homeland Security as part of their Privacy Workshops they hosted in Washington D.C. earlier this week.”
Particularly interesting to my discussion is IBM’s take on what it means to engage your staff in social networking, and how to set the proper expectations with your people:
Both governments and business must adopt such capabilities responsibly and thoughtfully, with proper consideration ofthe risks, governance, and legal issues introduced by Web 2.0. Organizations must implement policies that clarify the boundaries ofappropriate use for participants and take steps to protect proprietary or classified materials.
They must set expectations concerning data ownership, visibility, longevity and privacy. The deliberate and thoughtful establishment and implementation of such policies is an essential step toward making Web 2.0 tools suitable for business and government.
First thoughts: I really think it is great that an organization strives to be forward thinking and embraces new technology as readily as I believe IBM does. It is one of the few firms that relishes in the fact that they have the foresight to stay ahead of emerging trends and to ultimately take action when needed to utilize those trends for business purposes. With that foresight, I also realize that it is important (and essential) for a firm to minimize risk, but it is equally essential for a firm to allow their teams to express themselves and explore their creativity–which allows people to “become a global publisher for free – in minutes” when using Web 2.0 tools.
Social Networking Guidelines
On the same point, I also think a hard line document like the one set out by the AP is a bit of a stretch for acceptable use-policies and the managing directors within the Associated Press should consulted the guidelines set forth in the IBM document posted above. “In the mid 1990s, IBM similarly issued a set of Internet Use Guidelines for employees, while encouraging all employees personally to explore and become expert in the use the Internet.” Use Guidelines like the ones IBM enacted enables innovation and knowledge to grow, while the AP guidelines can be seen as nothing other than a set of rules set out to stifle the creative expression of their workforce.
One of my biggest learns from Adam’s snippet was the shear volume and intensity of the IBM social media platform. Not only does the organization provide guidelines for use of these tools, but the company also actively promotes the technology. IBM says they “did so in order to encourage collaboration and provide greater outside exposure to IBM’s greatest asset – its employees.” That sentence in and of itself speaks to the culture that Big Blue maintains.
Globalization and Sustaining Growth
I also wanted to bring attention to one other snippet that caught my eye on Adam’s site: IBM recognized the opportunity to tap into individuals’ use of social media as a way to flatten a geographically and organizationally dispersed employee population and to encourage more learning, collaboration and development – both inside the company and with external parties. Further, our research indicated that the personal interactions individuals have with IBM employees – online or face-to-face – have a more powerful influence on shaping the individual’s perception of IBM’s brand than any other form of communications, marketing or advertising.
Again, I think the focus on the employee, is partly why IBM hires and retains the top talent from around the world, and maintains industry leader status within the many areas it serves.
Check out what Adam had to say here.
Wired Gadget Lab reports of another Green innovation IBM is in the process of developing:
Massive supercomputers that devour electricity to keep them humming are not exactly the poster children for green technology. But IBM hopes to change that with its plans to build a supercomputer that will use water to keep the system cool and even recycle some of the waste heat to help heat the university where it’s housed.
The technology could lead to a reduction in overall energy consumption by at least 40 percent, when compared to similar air-cooled machines, says the company.
