Power of loyalty, frequent flier status, and losing it all

Listening to NPR radio last week, I heard an interesting interview with Jacques Vroom on his experience flying over 40 million miles using “unlimited first-class” travel pass.

With a transient, nomadic life, it is natural for consultants to crave the few perks available to them: the “elite” status at airlines and hotels, and the miles and points that come with the status; kind of like George Cloony’s character in the 2009 movie Up in the Air (re my blog)

Mr. Vroom’s story of travel, status and the fall-from grace fascinated me all the more since I too had enjoyed elite status with a few airlines (Platinum Medallion with Delta and United Airlines) and hotels (Platinum status with IC Group and Marriott) and rental car companies (President’s circle with Hertz last year)

There is another aspect of Mr. Vroom’s story that former-frequent-travelers including self can relate to: the abrupt end to perks when one loses the an elite status. In the past six months since transitioning from a consulting role, I have seen my travel reduce drastically. With that comes the gradual erosion of my elite status with Airlines and hotels. (graph above).

I still have hundreds of thousands of points in my accounts which are sure to fizzle away soon...

• The frequent fliers who flew too much - LA Times
• American Airlines' Lifetime Pass: How a Marketing Ploy Turned - The Blaze
• American Airlines Cracks Down On Ultimate Frequent Flyers - HuffingtonPost

Blogs and links

Facebook fizzle does not dampen Developeronomics … because not every code coolie is an Über coder

As we enter the middle of 2012, the global economy continues to stagnate and even the erstwhile darling of stock market – tech sector – begins to flounder. The butterfly effect seems to be hitting technologists at both ends of the spectrum - entrepreneurial and software services.

Last month it was the Indian software services darling (my erstwhile employer) Infosys, warning of severe headwinds in the global technology services sector. Then it was technology giant Hewlett Packard announcing massive job cuts. And then came the mother of all IPO’s of tech darling Facebook and its spectacular post-IPO-stock-fizzle, leaving most of us in the globalized IT world wonder whatsup?

While the macro-economic factors play out in the business of technology management, interesting conversations on Developeronomics continues to stir among the Digerati. The debate was triggered by Marc Andreessen’s essay in Wall Street Journal: Why Software Is Eating The World. Marc espouses the theory that “we are in the middle of a dramatic and broad technological and economic shift in which software companies are poised to take over large swathes of the economy.” The techie in me loves this argument though I still wonder if we are really seeing a Technology Lead Innovation around us or Technologists playing catchup? (my earlier blog)

Marc ends his essay with key challenge facing software economy “Qualified software engineers, managers, marketers and salespeople in Silicon Valley can rack up dozens of high-paying, high-upside job offers any time they want, while national unemployment and underemployment is sky high.” Although he doesn’t say it in as many words, the challenge Marc highlights is more about the dearth of Über coders, while the world – or at least the offshoring world – continues to produce thousands of code coolies.

Although the use of term code coolie may sound a bit derogatory, it really is intended to drive home the point that vast majority of coders are developing software as a means to earn a living. They do it as a vocation rather than with a passion to enable software to “change the world” in a significant way. Remember the storm in a teacup when the Indian writer Chetan Bhagat tweeted on "Narayana Murthy runs a body shop?" Of course, graduating a hundred thousand techies in a decade is no mean feat. And that is just Infosys. Add TCS, Wipro et all and one can see the challenge is really not about the ability to get a critical mass of coders.

Then there was an interesting piece on “The Rise of Developeronomics” in Forbes, which took a broader perspective on IT development and developers stating “If the world survives looming financial apocalypse dangers at all, this is the one investment that will weather the storms. It doesn’t matter whether you are an individual or a corporation, or what corner of the world you inhabit. You need to find a way to invest in software developers.”

Businesses have already taken note of the importance of software developers though many leaders are trying to crack the core problem: bridging the long tail of code coolies to the few Über coders around. To create a successful eco-system where thy can not only coexist but can also thrive. To take an anology from another domain, it is akin to identifying the right general to lead the army to battle.

This question of variance in productivity between the best programmers and average coders has been debated ad infinitum by the software community. However, it is not just about recognizing variance in productivity but to ensure the right mix. As the Joel Spolsky blogs “it's worth hiring Angelina Jolie for your latest blockbuster movie, even though she demands a high salary, because that salary can be divided by all the millions of people who see the movie solely because Angelina is so damn hot.”

What does all this mean to us?

• For IS leaders it is a continuum of trying to find the right teams to develop the right solutions for their business stakeholders. Techniques include outsourcing, hoping the vendor will crack our business problems with a team of uber coders from across the globe (there is always hope). Hiring uber coders is always an option but it involves competing for talent with Facebook or Google (tough luck doing so!).
• For enterprise architects - self included - it means working with technologists and business stakeholders continually tweak proposals to bridge the divide
• And for business stakeholders: Empowering your technology leaders and Enterprise Architects to help with Developeronomics
• And for the mass of code coolies? Try and morph into an Über coder. And if you discover that is not your calling, well we shall cover that in another post

Blogs and references

• A candid note from Infosys' Sales Head
• Hewlett-Packard to Cut 30,000 Jobs - NYT
• The Rise of Developeronomics - Forbes
• Why Software Is Eating The World Wall Street Journal

Technology Lead Innovation or Technologists playing catchup?

There is a fascinating article on innovation that appeared in the Wall Street Journal yesterday “You Call That Innovation?”

The article quotes Scott Berkun, the author of the 2007 book "The Myths of Innovation," which warns about the dilution of the word, says that what most people call an innovation is usually just a "very good product." (He prefers to reserve the word for civilization-changing inventions like electricity, the printing press and the telephone—and, more recently, perhaps the iPhone.).  

Even with the recent hoopla over the 100 billion valuation of the much hyped “innovative” technology company of our time – facebook - architecture and technology lead innovation remains the Holy Grail for most Enterprise Architects.

Besides the hype over iDevices and Social media, we have been witnessing seismic innovation in the technology, especially when it comes to realizing the value and mobility of data! Just a couple of examples: In consumer music Cassette Tapes to the Cloud (though growing up, I also fondly recall my dad listening to LP records …)

Or the way I have been carrying my “personal” and work data while I travel the globe

One is left to wonder how much of the “innovation” we see around us is actually technology lead versus innovative business models implemented with the right technologies (including Information Technology).

Musing on Bank of America vs. JC Penny’s Fair and Square

To state that global economic downturn has taken its fair share of toll on corporate America would be an understatement. However, a few industries have been more impacted than finance and retail. Last year saw the bankruptcy of iconic Kodak and liquidation of ubiquitous Border’s book stores. While retail superstores didn’t see the same impact on their businesses, slowing foot traffic and an assault from online retailers has certainly taken its toll. Retailer Sears began closing many of its stores last year and any of us who have shopped in the remaining ones are bound to find the experience less than satisfactory.

Banks and financial institutions continue to struggle though many have begun to turn a corner after the blood-letting during the downturn. Much of this is at the cost of the average Joe/Jane customer. Just last week, J.P. Morgan created a buzz when it said that “70% of customers with less than $100,000 in deposits will become unprofitable for the bank”  (Bloomberg)

This is really ironic since interest rates are virtually at zero. I wonder how many customers who do happen to have 100K liquid funds would like to park it with a bank for little, no interest just to have the privilege of a “free” checking account?! 

(ref: metrolatinomagazine.com)
In this market, one customer facing business, that seems to be rewriting its playbook in a more visible way is JC Penny. I had read many articles on transformation at JCP after the new boss from Apple took over last year (Tech Giant's RetailChief Tapped to Remake Venerable Chain). On a weekend shopping trip at the local mall, I was stuck by the simplicity of the idea: fair-and-square pricing also means that the ubiquitous red “Sale” banners hanging all over the store are replaced by tasteful signage. Yes, one can still find the $5 shits tucked away in the a rack, without a large sign pointing to it: a much more pleasant and esthetic shopping experience if you will. And the brilliance of the idea is that it caters to the frugal deal seeking shoppers without putting off those seeking a better shopping ambience.  

Though it is extremely premature to eve speculate on how of JPM or JCP’s move will play out or whether it will slow the consumer shift towards online “deals,”  shopping and banking, it is certainly interesting.  One thing is for sure, banks and retailers that continue to focus on mining for high-net-worth customers at the cost of building a critical mass of loyal customers are going to loose out when the economic tide turns.

Musing on Globalization of English

I was on a brief business trip to Basel last week and on my way back, I read an interesting article on globalization and English (“Why the French are right to resist global English").  The author builds an argument taking the example of schools in Montreal, Canada wanting to introduce English to a predominantly French speaking environment.

I guess most of the resistance to English is towards preserving linguistic and cultural identity; there is a similar conflict in Europe over adoption of English. I had experienced first-hand the "resistance" to global English during the 6-months that I had spent in Switzerland sometime ago.  Most of Europe is economically connected thanks to being a part of the EU, but individual countries and regions still cling to their languages and distinct cultural identities. They do this while tacitly recognizing that English is the "link language." The younger generation is certainly keen on imbibing English, wanting to be a part of the global and regional economies where English is the lingua franca.  

This is a issue that Indians (and even non-resident Indians) continue to struggle with: being proficient in English while also maintaining one’s cultural identity. Case in point is the identity crisis being faced by politicians and others in my hometown Bangalore. The global hub of offshoring and offshore sourcing that depends on attracting millions of English speaking technologists to work for global clients out of call centers and IT shops. While benefiting from globalization and being a role model for other cities and regions trying to attract offshoring business, policy makers also want to look back on the roots, so much so that they decided on officially renaming the city to Bengaluru. Those trying to desperately hold on to Kannada culture also try to incorporate protectionist measures including restricting screening of movies from other regions in India. (ref)

End Of India's IT Services Success Story? Not yet.

For years, analysts, academics and researchers have been predicting the “End” of India's IT Services sector.

Fred Giron's Blog on Forrester.com (Is This The End Of India's IT Services Success Story?) is sure to generate some debate among those in the IT services sector but nothing more than that.

While one can debate if Innovation by Indian IT players is the silver bullet, the rate of growth of the sector has certainly tapered off in recent years. The rate of growth is nowhere near that we saw 5 or 6 years ago.  The reason for slowdown may be more due to sheer size of organizations and the linear nature of business model more than any other factor.

Is "innovation" the silver bullet? I guess only time will tell.

Psst … You want to replace your office computer with an iPad? Sure. Do you want the SLA to go with it?

There was an interesting in Wall Street Journal that I was reflecting on over the weekend (Apple Macs Land on More Corporate Desks). The article chronicles how General Electric employees can now choose Apple over Windows PCs. Though the spotlight was on GE, the author adds “Apple has very little of the corporate computer market but is making progress, according to market researcher Forrester Research, which estimates the Cupertino, Calif., company will sell $9 billion worth of Macs and $10 billion worth of iPads to businesses this year, up about 50% from last year.” A tweet from Prof. San yesterday alerted me to another article, almost a corollary to the fist one titled “How management has failed at RIM.” The article chronicles the rise and fall of Canadian tech giant that that till few years ago was unstoppable.
These and other similar articles appearing in business press are a sure sign that business users are looking at adopting wider range of smart-devices at work. The popularity, ease of use and features of smart phones and tablet computers have been analyzed by tech analysts, digerati and bloggers but the Enterprise Architect in me continues to reflect on the implication of these technologies on business computing.

The shift towards personal choice of computing devices at work has interesting implications: Blackberry, that till recently was the standard-issue smartphone for business users is now losing ground. Business users who prefer iPhones or Android smartphones are tired of carrying two devices – one for personal use and another issued by their employers. Add to the mix the resurgence of interest in tablet computing devices, lead by iPad’s, Amazon’s Kindle Fire, BN’s Nook and several Windows based competitors.

Technology innovations in the space continue pushing boundaries of usability, restricted only by imagination. What began as a move from Personal Computers to Laptops a few years ago is leading to yet another seismic shift towards smartphones and tablet computers. The implication is clear: IT teams are increasingly getting requests from “IT user” communities to either expand the scope of computing devices that are approved for Personal (and Professional) computing at work. Most organizations still dictate a narrow array of devices that can be hooked to corporate networks for ‘business’ use.

Enterprise Architects, responsible for spearheading (and gate keeping) technology standards are coming to grips with the implications. However, for EA’s it is not just usability or “coolness factor” we have to weigh in while evaluating this push towards open computing. Security (of course), Support, Upgrades and updates, Integration and extensibility are just a few dimensions to evaluate while formulating an approach for corporate rollout.

 Traditionally, IS teams have been responsible for support of hardware, software and infrastructure required by ‘users’. This division of labor suited everyone well. Non-IT users could focus on their core competence - be it sales teams out in the field or bank tellers or reservation agents or nurses at hospitals monitoring patient records. For most system issues, users would call the IS help-desk that either walks them through the problem resolution or sends someone onsite to help. Service Level and Operating Level Agreements (SLAs/OLAs) were well defined and understood. By opting for personal choice of computing device, there are a few scenarios that begin emerge:

Scenario 1: Laissez faire Cafeteria style buy-and-bring-your-own-device to work. In this model, users will have to take on ‘personal responsibility’ for problem resolution for the devices they opt to acquire. For example, I opt to bring in an iPad to work (instead of my office issued HP/Dell/Whatever Wintel laptop) and just before an important client presentation, I encounter a problem with wifi and network access that I am unable to troubleshoot. Turns out it is a hardware problem for which I cannot call my IS tech support. I have to get in touch with Apple’s help desk and work through the issue.

Scenario 2: Expand scope of support with levels of service: IS team extends a list of “supported” systems to include emerging genera of desktops, tablets and handhelds. To control costs, one could contemplate level-of-service for device classes. For example currently serviced Windows desktops/laptops would get a “Platinum level” service that includes hardware, operating system and application support, Mac OS devices would get a “Gold level” service level and so on.

There are several other scenarios besides one can analyze but before that a few critical questions one would need the business users to answer: 

• How much of “ownership” is the typical business user willing to take in a Laissez faire model?
• What is the total cost(to organization) to be able to expand support and service levels for “All” devices - current and emerging?

Other interesting links on the topic

• Corporate users make the iPad connection -FT  
• Ready for work- Apple “Get secure access to email, calendar, and contacts via Exchange ActiveSync or open standards like IMAP, CalDAV and CardDAV. With support for IPSec and SSL VPN and WPA2 Enterprise Wi-Fi, users can also connect to private corporate networks.”
• iPad at Work: The Essential Guide for Business Users
• Kindle Fire Presents Challenges and Concerns for Corporate IT