What types of B2B and Supply Chain jobs will the stimulus package create ?

(Note: This post of Feb 9, 2009 refers to the 2007-8 stimulus package) We have been trying to figure out the kind of opportunities that might come up from the stimulus package – particularly in the B2B  and Supply Chain  areas. I think there will be plenty of opportunities in these areas if you start looking at what the stimulus is planning to do. For example, in the procurement space as towns and communities start re-building infrastructure purchasing skills should be in demand. Now the question is whether ongoing contracts will be expanded i.e. existing contractors will be given more work and they would hire or there might be more new contractors entering the infrastructure. A friend in the purchasing community thinks that new bids will have to be prepared, in record time, but there may not be new supply management jobs in the public sector, although some additional hands may be needed to develop and execute the contracting of all this work. If you are a professional looking for work  in these areas checking with the local Government- may be a good idea.

Then there is the construction supply chain and herein lies an opportunity for all those sub-contractors out there. They should really start gearing up their B2B marketing with both towns and well established contractors so that they are ready to execute projects. There are a whole lot of displaced professionals (IT , finance)  who have taken up temporary work like painting etc. and this is the time to put your name out there and start lining up your work force.

The stimulus funds would probably be spent at the town level and there is some talk of a deadline of spending the money say within one year and this calls for a  speedy effective local project selection ( which school to renovate  ? – probably a separate blog on this ), contractor and subcontractor selection and off course the direct workers on these projects.  Probably discussion will move to execution aspects of the stimulus as we move forward…..

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Why Search Advertising like Google AdWords should work better in tough times

In tough times like these, Ad budgets tend to get cut across  swathes of industries and company sizes. “Tough times get the tough going,” is the old adage- so what can tough advertisers do?  Some money on search advertising  may be a good bet.

 As David Ogilvy said “Ninety-nine percent of advertising doesn’t sell much of anything,” and Ogilvy was referring to traditional advertising like TV, print,billboards and so on. Traditional advertising  identifies target markets  and then follows a media plan that matches media to target market. Beer ads during the Super Bowl is a good example where the target audience and product match and sales spikes occur. However, other than Super Bowl where people actually watch the ads we have TiVo, channel flipping that really diminishes “push” traditional advertising.

Things change during Internet searches, you are no longer sitting in front of the TV passively but actively looking for specific stuff. At  this point you will click through on ads that are directly relevant to whatever your search is. The technique of writing effective Internet search ads is tough business – if you want to precisely match your ad to what an individual may be looking for. Search Ads like Google AdWords , Yahoo Search Marketing or Microsoft Search advertising typically charge the advertiser when someone actually clicks the Ad.

Imagine only paying for those prospects who saw your TV or print ad !  The Internet allows two way communication and is much more effective than an expensive   1800 number on TV when you want a prospect to contact you and you want “action.” In these difficult times, you need to get “action” from customers and do so with cut Ad budgets. Trying search advertising may not be a bad idea…..

In fact, my students in my B2B Class at University of New Haven  are trying just that , as part of the Google Online Marketing Challenge. Will report more on this as things develop….(Published January 28, 2009)

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Dubai and Caterpillar- learning from an India business and Chinese New Year of the Ox

It was during my recent India trip that I went in to meet several businesses in software,
infrastructure, engineering,food and chemicals.  What struck me was the enormous number of young people employed and the vibrancy of 7% growth that India is reporting. Lower than the 9%  growth that India was experiencing but not bad.It sure felt different – the secret is that most of the demand is internal to the country and conservative central banking practices have largely insulated India from the financial sector problems. You simply don't get a loan if you don't have the margin money and if you and your neighbor cannot prove that you have a job or viable income to pay back. The stodgy ways of Indian systems seem to have paid off for once.

Indians travel around a lot globally these days and a favorite transit is Dubai and I was shocked to learn that all construction is stopped in Dubai. This topic came up in casual conversation at a major coal supplier's office who had recently been in Dubai. Why was this – I asked and apparently this is because of the global slowdown,decline in oil prices and general slowdown in trade which is Dubai's forte.

Caterpillar , very involved with construction and infrastructure,was at the back of my mind and sure enough it is in the news today reporting a 18% workforce cut in the US. Clearly this recession is global and particularly hard for countries where internal demand is generally at low growth levels. India and China might still save the day and let's hope that the Chinese New Year of the Ox brings better luck in 2009.

Towards global B-to-B trust and transparency in 2009

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} catch(err) {}2008 has been a watershed year in many ways and everyone is talking about 2009 with hopes of better times.

There is one theme that should become important in 2009 given the learning from the Mortgage Crisis, Auto bailout and resulting  union supplier competitor unity and the Madoff scandal. And that is more trust and transparency that would have to be re-built from the ground up.

We should see more online transactions and use of the Internet both by businesses and also consumers as with the recent zoom in Amazon sales. When transactions are digital and open to scrutiny by those concerned on a real time basis- there is a real shot for everyone concerned- to chime in with comments and concerns- in time. So as more systems go online there will be more integration both for the sake of reducing costs and improving efficiency but also bringing real time trust and transparency in dealings.

Wishing readers a Very Happy and Prosperous 2009 !

Steven Chu will be Energy Secretary

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In naming Steven Chu as Energy Secretary Obama has highlighted the importance that the new administration will attach to science and a scientific temper to the whole energy question. Steven Chu is a Nobel Prize winning Physicist and has both a biology and physics background. While his nobel prize was "for development of methods to cool and trap atoms with laser light" he is currently studying biological systems at the molecular level. 

Steven Chu is incidentally of Chinese ethnicity, and that should send a strong signal to big energy consuming countries like China,India and the rest of the world how important energy conservation and sustainability is for the globe,going forward. My guess is that energy issues will become a much higher priority with governments across the world with Nobel Laureate Steven Chu as Energy Secretary in the US.

Global Bailouts as Jon Stewart supports US Auto Bailout

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Guess what ? Governments in countries all over the world are jumping onto the "we must bailout" bandwagon. There are European, Chinese,Indian and Latin American bailouts in progress of different industries. Global government bailout actions include adjusting interest rates, lowering gas prices,direct funding  and so  on.  A strange and new facet of globalization.

We have the choice of crying over the "bailout" requests by many sectors of the US economy but Jon Stewart had a point last night that made me smile. He said that Congress was much harder on the automakers for 34B$ (up from 25 B$) compared to the 700B$ for the banking and finance sector. The auto industry at least has a product to deliver, that we may complain about, but the banking and finance folks got into trouble with products that turned out to be  fictitious!  Moreover, the banking and finance issues are  difficult and preposterous for even finance folks to understand or explain. Just because we understand the auto business more than the finance business, does'nt mean that we have to be harder on them. Jon Stewart recommends that we give the auto industry their bailout !

Mumbai Terror and Upstream Risk

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The Mumbai Terror attacks have been constantly in the news for the last few days. Now its time for Mumbai and India to recover. This time political leadership concerned with homeland security have been forced to resign. Next it'll be the turn of bureaucrats who slept through early, very specific, warnings received from the Indian federal intelligence agencies. What if the Maharashtra state ( Mumbai earlier Bombay belongs to this
state and police is a state subject) apparatus had reacted to the
specific information about both the sea attacks and the hotel names?
These questions will be investigated in depth for long … as everyone
comes to grips with an avoidable and immense tragedy.

Although somewhat unsettling for busineeses that buy from and sell to India, I was pleased to see no let up to travel to India (and Mumbai)  yesterday at the Newark Airport.

The events of the past week  brings to sharp focus of fixing problems upstream in supply chains and also for management in general. Generally, for services there is this whole "redundancy" thing that
allows for delivery from alternative locations in case of  sudden disruption. Explicit  planning for contingencies ahead of time, right at the contractual stage, is a good idea. Disrupted operations or liquidated damages  don't  really solve business problems.

Auto Industry Bailout next week ?

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This blog discussed over two years ago how the US Auto industry has been ignoring the very research they funded and supported for decades.  These studies had clearly identified better supplier relations,more innovation and customer focus  as priority areas. Just handing out money is probably not going to change things  with the auto industry  leadership at Detroit. When they have successfully ignored consultants,researchers and professors for decades, it seems very unlikely that mere exhortations with bailout money will work.  In fact, unless there are decisive management changes, it is very unlikely that entrenched managers would change their ways.

Estimates of job losses in the upstream supply chain and the downstream distribution (dealer) channel are so immense that some solution must be found. When managers and company leaders neither manage nor lead-  they can bring ruin to their entire value chain partners and associated  stakeholders. In the auto industry that number could be as high as three million jobs lost. Clearly,  just too much is at stake.

What can suppliers learn from job seekers and job keepers ? Understanding “value” contribution

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Given the economic slowdown the media is full of advice and tips for individual job seekers  as well as "job keepers". 

Just like individuals, suppliers in all value chains (everyone is a supplier- remember!) need to examine if they can keep their "job" with existing clients and seek "new" clients. The key question to answer here is what exact value you provide to your supplier's business. Research has shown that, at least in good times, suppliers become complacent and even arrogant.  For example,with brisk business, suppliers would not even consider delivery and would like the customer to "pick-up".  Naturally, with such an attitude you are completely clueless about what exact value you provide to your customer.

Just trying to understand what exact value your business  brings  to your customer's business is a worthwhile activity in such slow times. Very similar to individuals taking time to educate themselves and become more competent in the job market.

And change in modern cultures- Barack Obama

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Barack Obama is the President Elect of the USA. Not many “young” cultures or countries or even “older” ones can claim to usher in such change. Remarkable and only in the USA !

An interesting dynamic of this election is the support of the American youth for Barack Obama. The Obama campaign was able to galvanize the youth,turn them out and since the Generation Y or echo boomers have great relations with their parents and grandparents this historic change became possible as the young were able to persuade their older relatives.

Now, time to get back to work!