Every Cloud has a Silver Lining?

The first meeting of Australia’s Leading CIOs has just taken place in Queensland. The event itself saw representatives from companies such as Adecco, Energy Australia and PepsiCo revealing their industry predictions.

The NG CIO Australia committee was formed in reaction to the skills shortage the industry had been experiencing, and the ever more affordable technology used to overcome such shortages. As previously revealed by the committee before the meeting, they had research which showed that while technical and vendor-specific skills seemed plentiful, strategic and conceptually oriented skills were in short supply. New government projects in sectors such as e-government, healthcare and education were also a driving force for organizing the NG CIO Australia summit (hosted by GDS International) where they wished to capitalize on national broadband roll out and discuss the pitfalls of cloud computing.

So what was revealed? Ovum revealed that the governance of cloud computing is too reactive, technology-centric and piecemeal and must be improved dramatically. The independent technology analyst warned the CIO Committee that cloud governance is suffering from the same flaws that are affecting other IT governance areas. They believe a new approach is needed as cloud computing, the latest in a series of disruptive trends affecting IT departments, cannot thrive without an effective governance framework that promotes and ensures coordination between IT teams.

Laurent Lachal, Ovum senior analyst and report author, said: “Most IT governance efforts are prompted by new regulations or by the need to keep up with uncontrolled SOA software services, virtual machines or public cloud services – whereby governance starts when the public cloud bill is much higher than expected.”

Cloud computing makes IT governance more difficult by introducing an additional layer of complexity that those businesses need to control in order to make the most of its benefits. Cloud governance best practices – like cloud computing itself – are still in their infancy and Ovum believes the focus should, in future, be on enabling flexibility.

“Public as well as private clouds’ ability to make it faster and easier to procure, develop, deploy and hardware and software assets will make the biggest difference. Cost and quality of service issues are critical but cloud computing governance should not over emphasize them at the expense of enabling firms to strike the right balance between effectiveness and innovation”, said Lachal.

“Cloud governance is not just about control and keeping an eye on individuals to make sure that they behave as expected. It should also be about empowerment, based on a realignment of objectives and incentives to encourage behavioral change.”

Ovum does not expect a ‘big bang’ implementation of cloud governance, but rather a gradual build-up that provides an opportunity to launch and/or reinvigorate other governance efforts.

With so much change on the horizon who will be the first to capitalize and will cloud succeed as a future technology.

Africa to Capitalize on Deepwater Drilling

In the aftermath of the Gulf of Mexico disaster, offshore deepwater drilling is now being questioned as too risky a venture. However the domino effect of how this will impact other regions is a far less damaging then initially expected.

Africa has always had a strong market for offshore exploratory drilling projects and with Anadarko Petroleum Corp. saying on Monday that they struck oil offshore of Ghana at the Owo prospect in the Deepwater Tano Bloc, does little to dampen new drilling projects in the western region.

Even BP, who have taken a huge hit, to their balance sheet and public perception due to the disaster in the Gulf of Mexico, has no plans to stop deepwater drilling in the Gulf or other offshore areas, but has not gone unnoticed by regulatory and government bodies.

The Obama administration’s financial reform act has already started setting precedent to show that a global standard for corporate transparency should be geared toward mining and energy companies. However there is a large gap between setting precedent and taking ownership in the marketplace, and these are topics that the oil and gas industry as a whole are starting to look at together.

When an industry experiences negative environmental and health and safety impacts on a yearly basis, the cooperation of the industry as a whole to develop new methods for developing the global energy supply becomes extremely important. A spokesperson from Shell explains ‘We had 132 spills last year, against 175 on average. Safety valves were vandalized; one pipe had 300 illegal taps. We found five explosive devices on one. Sometimes communities do not give us access to clean up the pollution because they can make more money from compensation’

Repairing pipelines, developing effective oil spill response teams, and working on better technologies for blowout preventers (BOP) are precautions that are part of a major oil and gas companies daily activities.

The importance of developing new sites sees Africa at the forefront of major talking points at NG O&G Summit in Africa. The top executives in the industry like BG Group - Emmanuel Enu, GM Exploration, Nigeria, Galp Energy - Daniel Elias, Head of Development and Production, Vanco International - Jeff Mitchell , COO, Lukoil - Alexander Shelev , Ghana Country Manager, and Sonangol - Francisco Lopes da Cunha, Chief Geophysicist are working together to on making deepwater drilling a safer way to capitalize on the huge reservoirs of oil found below a mile under the sea.

Creating the Seamless Shopping Experience

The retail experience is set to become even more stimulating and enticing for the consumer over the coming years, as Retailers are set to adopt the latest marketing trends and innovations.

Companies across the globe are discovering and implementing new ways to appeal to the consumer with new innovations such as interactive demonstrations, social networking, new technology and digital media.

The illustrious NGR EU committee chaired by visionaries such as Paolo Cinelli - CIO IKEA and Robert Teagle - EMEA IT Director, Starbucks are only too aware of this and have invited SAP, the leading provider of business software and driving force behind targeted marketing, to share their thought-leadership about the ‘new consumer’ and how retailers can differentiate through personalized interactions with their customers across any channel.

Despite the economic climate slowly improving, the consumer has become acclimatized to competitive prices and now expects a 24 hour, high quality shopping experience on top. These savvier consumers are using multiple channels not only to buy but also to get instant information and the best deal. SAP believes that now is the time to ensure that the approach to the consumer is consistent and relevant from wherever they choose to interact, something which the NGR EU committee (hosted by GDS International) is keen to capitalize on. As a result of this growth in multichannel shopping it is even more important for Retailers to ensure that they are profitable across all of their channels. In a recent survey from IDC they found that ‘improving multichannel profitability is among the top-3 priorities out of a list of 16 items for retail enterprises that are also selling online’. In order to achieve this, Retailers also need to take a fresh look at supply chain integration, targeted and effective promotions, cross-channel pricing strategies, assortment and organizational strategies. In today's challenging business environment, the best-run companies have clarity across all aspects of their business, which allows them to act quickly with increased insight, efficiency and flexibility.

“The economic climate may be slowly improving, but the next few years will be anything but ‘business as usual’ for retailers. The retail industry is entering a new phase of transformation. The companies that gain the most benefit will be those that can develop a profitable and sustainable multichannel business model, by delivering a seamless, high quality experience to their customers across all channels.” Darryl Owen VP Retail EMEA and India SAP

Retailers need to build on their historic focus of “selling products” and further emphasise their focus on share of consumer wallet. This will mean actively soliciting their loyal customers and facilitating the exchange of intelligence with the goal of meeting the consumers’ immediate needs. A retail model that is increasingly driven by customers needs and desires will help enable differentiation, business growth and prosperity in the highly competitive retail environment of today.

Research Reveals Increased Budgets for IT

So far this year things have been looking up for the IT industry, but market fundamentals have shifted and spending has been in disarray.

The global recession has changed the priorities in IT and one of the key changes has focused on cloud options and whether investments into internal data centers is really the way forward.

“2010 has brought increased spending as we begin to see the light at the end of the tunnel, however budgets will continue to remain tight, spending the right money in the right places will make the difference” states the conglomerate of leading CIOs who have formed the CIO US action committee to create a focused spending strategy.

Spending took a dramatic fall in 2009 compared to that in 2008, but conservation of funds will mean that 2010 will be the year to push forward and implement new and ever evolving technology. After reviews on first quarter spending, a report from Forrester analyst Andrew Bartels predicted that IT spending for the year will reach in excess of US$753 billion (£493 billion), a 9.9 percent increase from 2009. That is also a bump up from the 8.4 percent increase Forrester was predicting in April.

Those technologies, which saw the most capital investment, focused on lowering operating costs, increasing productivity and streamlining the business processes. This has lead to projects such as server virtualization laying the groundwork for more strategic IT initiatives creating a building block for cloud methodology.

In 2010, we can finally see the move from cutting IT spending to investment into business growing technology. Representatives from Adecco Group N.A. - Bryan Ackermann, CIO, American Express - Jan Belt, SVP Enterprise Infrastructure, JPMorgan Chase - Jason Mills, VP Technology Infrastructure and Citigroup Inc. - Atul Jain, Executive SVP Technology have been asked to review which technologies and systems should receive the greatest investment. This will be from both a governmental and private body perspective. At the CIO US summit (hosted by GDS International) execs will also reveal the benefits they have seen over the first half of 2010, from green technology implementation such as cloud computing and virtual services.

Budgets have been tight and spending has been capped, but new opportunities are on the horizon. Company savings and forward thinking business can be one and the same, promising growth and innovation throughout the year.

Pharma ‘HTS’ the Mark with Screening

Back in May, it was announced that new stem cell research would reduce the need for animal testing. Now, we are really beginning to see the benefits of groundbreaking science that is not reliant on out dated methods of testing. The proposal was that by reprogramming powerful stem cells from adult tissue, we could look towards a future without animal testing.
It is understood that huge amounts of money have been invested into drug discovery and the biggest problem faced by the industry is investing in drugs which may not make it onto the market. Europe has always been seen to trail behind the US when discussing drug discovery within the pharmaceutical industry, but with the biotechnology revolution they have begun to catch and becoming a driving force within the global industry.
The NGP EU committee has been celebrating the success of their pioneering roles in genome sequencing and the development of proteomic. Pfizer has recently announced to the NGP Drug Discovery committee that they plan to roll out a hit identification and screening file strategy. The process will offer a new flexible strategy for hit identification while sculpting a more reliable and efficient screening process.

Hit-throughput screening (HTS) has grown rapidly over the last ten years and Pfizer themselves noted the huge advances in both detection technology and laboratory automation. Pfizer believe that not only big Pharma but also smaller companies can implement HTS as well. By implementing HTS, it can remove the indecision over which compunds will be profiles, many smaller companies agonize over the costs of conventional profiling sometimes only choosing between 10 and 20 compounds, this already removes other possibilities before true research can really begin. Pfizer among other members of the NGP EU Drug Discovery committee wish to discuss how they wish to implement large scale profiling at a lower cost, while maintaining the incredible biological, technological, and scientific advancements they are already demonstrating globally.
GSK have also joined Pfizer recently in encouraging the implementation of HTS. “We are now at a stage where we can exploit the benefits of cutting edge technology for increased quality, performance and capabilities. We also have the option to supply the same number of compounds, with the same level of quality at an affordable price”.
Key to discussions will be representatives from AstraZeneca - Goran Wennberg, VP Discovery Information, Bayer Schering Pharma - Andreas Busch, Head of Global Drug Discovery & Member of the Board , Novartis - Olivier Grenet , Group Head of Genome Biology ,GlaxoSmithKline - Tino Rossi, VP of PreClinical Drug Discovery & Enabling Technologies and Pfizer - John Mathias, Head of High Through Put Screening all determined to firmly place Europe as the Drug Discovery capital.
The discovery and implementation of HTS not only offers an opportunity to smaller Pharma companies but also the consumer, if research and quality is increased and cost decreased this in turn will be passed onto the consumer

A continent united

How the World Cup spurred the fight for a unified Africa and a growth in the continent’s business development


It has long been argued that, due to myriad socio-, political- and economic challenges, the true potential of African business has remained in the dark: unable to connect with the global economy in the way Western nations have succeeded.

Now, though, just a week after the World Cup final in South Africa, all eyes are on the continent, excitedly expectant that the time has come for the nation to come into its own.

At the centre of the fight to empower African businesses is the Organization for African Business Development (OADB), which, along with the African Union, is fighting to create an environment where businesses and investors alike can thrive in a unified Africa. While it might be cliché, ‘united we stand, divided we fall’, still rings true.

At the helm of this ship is H.E. Neil De Beer, the first Secretary General of the OABD, who recently joined executive business channel MeetTheBoss.tv in Kenya to discuss the issues that now lie ahead.

“Africa’s time to unify is here. Although we’ve had initiatives where we took the Organization for African Unity and made it the African Union in 2002, we’ve struggled with the concept of getting the new-age plan Africa out there,” explains De Beer. “If 53 countries on this continent cannot band together and do business as a unity, we will struggle to become the economic power, which this continent deserves to be.”

Now though, as a business development organization, the OABD has decided to take that concept further and really bring out the message that this is the time to unify African business, so that nations across the continent can actually take that message across the globe.

As a result of the 2010 FIFA World Cup, which ended last Sunday, rumors are already abound that the contest could act as a platform on which real business opportunities can be built upon.

According to a statement by the SA Chamber of Commerce released on Monday, “This event has provided a positive impetus to economic trends which may not have otherwise have existed.

"The country must build on the positive outcomes experienced such as the efficiency and effectiveness of the security and justice systems and the relative efficiency of the transport system."

It is a sentiment whole-heartedly echoed by De Beer: “When we look at the World Cup and we say to ourselves, ‘isn’t this awesome what one country, one continent, could do when all the odds were against us?’ It is also interesting that maybe at the next World Cup we will have South African, African advisors going in and advising people now that are hosting the World Cup out of Africa. So, yes, we can do this.”

A chance to make a stand? To find out more about how the OABD is working to build a unified Africa, head to MeetTheBoss.tv

iStrategy 2010; bridging the gap in Social Media Marketing

We all know that time is money and understand that Social Media Marketing is a real-time, targeted way of communicating with an engaged and active demographic, one that gives as much feedback to the company in question as it provides to the demographic. Hence its usefulness and transcendent ability.

Most companies, both on the business and consumer sides know and try to practice this, however success has not been equally quick for all enterprises. One of the reasons may be the lack of training within today’s companies. The iStrategy Sydney conference, set to take place at the Sheraton Park Hotel on the 24th-25th November, packages this expertise in a way that all marketing and managerial professionals can utilize, no matter the company size, budget, or experience.

The news that Australia is to invest US$10billion in a pan-Australian fibre-optic network will transform its country socially and economically and will set an example for economies throughout Europe. The roll out of broadband across Australia will also open a world of Social Media Marketing yet untapped by the business community within the continent.

For a company, a single tweet, blog post or YouTube video can spread in a matter of hours, naturally finding its way into the attention of potential customers and clients. Even the most traditional CEOs are accepting the power of the tweet.

iStrategy Sydney 2010 is hosted by GDS International; the company has over 15 years in some of the largest international industries in the world, Oil and Gas, Pharmaceuticals, IT and Mining to name but a few. Their C-level business to business summits and clients have given them an innate understanding of how to translate and explain the future of social media in B2B and B2C to executives who know their companies should be aggressive, but do not know how to execute. iStrategy 2010 is bridging the gap the way so many other social media conferences either haven’t, or haven’t bothered to.

Already confirmed are representatives from Disney, HSBC, Pfizer, AMD and Coca-Cola eager to see the B2B and B2C capabilities of the right social media marketing package. They will be working with the leading social media experts from companies such as Adidas, Cisco, MTV, Allblacks.com, Commonwealth Bank and PepsiCo .

The success of these companies is obvious; their brands are synonymous within their relevant sectors; the Pepsi Refresh Project allowing the customer to interactively distribute profits, Evian’s Roller Babies viral spread on YouTube and Cisco’s winning the People's Choice award in the tech company’s category for its myPlanNet campaign - a downloadable simulation game.

Despite the simplicity of a social idea, the impact is incomparable; creating brand awareness money can’t buy. Their relationship with iStrategy Sydney 2010 means that the power of social media marketing is now available to all, from the minds of some of the sectors best innovators and architects.

Senates Unemployment Benefits Fail US

Over the last week there have been countless stories covering the filibustering on the unemployment extension legislation. The Senate's fourth attempt this month to pass an extension of federal unemployment benefits failed a cloture vote. The standalone bill would have extended benefits for six months. But how do HR departments deal with the concerns over the influx of applications for roles and employee concerns?

As the economy begins to improve, thanks to government pay outs, companies are once again beginning to re-grow staffing levels. The demand for highly skilled staff is at an all time high and recruiters can at last pick and choose from record breaking numbers of applicants. Companies, such as those who are set to make up the NG HR US committee, are now focusing on doing more with less, attracting and retaining talent. Those leading companies who rode the wave of the economic crash also want to achieve a positive work life balance to ensure both sustainability and growth in order to remain competitive.

“It was a commitment that we made, because keeping people focused on creative work and keeping people focused on innovation, inherently requires them to take risks. In an environment where people are fearful they will not take risks, and we just cannot afford to let the creativity or innovation that drives this entire company in any way be affected by the uncertainty and fear that the outside world has created over the last 18 months.” Dan Satterthwaite – Head of HR for DreamWorks
Executives such as Capital One’s Brian Gruber, VP HR Technology, Coca-Cola Enterprises - Pam Kimmet, SVP HR, McDonald's - Rich Floersch, EVP HR, Virgin America - Frances Fiorillo, SVP People, Hilton Worldwide - Matthew Schuyler, Chief HR Officer will be speaking out at the NG HR US summit (hosted by GDS International) on the challenges they are faced with in the US; they state that the key to formulating a successful organization is aligning both HR and organizational strategy while minimizing costs.

“The most important asset a company has is its manpower, and as the economy begins to bounce back, the war for talent will be more prevalent than ever. In order to remain competitive, forward thinking companies must stay ahead of the game and implement strategies and solutions that address these pressing challenges.”

Capital One representative also argued that there will be an increased rise in the use of software-as-service products within HR. This will take more than 20 percent of market share by the end of 2010, with challenging implications for well-known ERP suppliers such as Oracle and SAP. Cheaper, more flexible systems that are easier to set up and use can only be good news for HR professionals and help them to automate processes and focus on more strategic goals.

The last 18 months have been full of trials and tribulations for most CHRO’s (Chief Human Resource Officers). They were at the front and center of their companies’ crucial cost cutting initiatives, in part leading to the debates over the recent refusal of the unemployment extension legislation it will now be down to them to capitalize on the business opportunities from the improved economic environment.

CEOs Find the Future in CIOs

The world of CIOs has been in disarray, an investment ban into IT solutions across sectors seems to have been lifted, leaving the question, where to spend the money?

It is forecasted worldwide IT spending to reach $3.4 trillion in 2010, representing a 5.3 percent increase from IT spending of $3.2 trillion in 2009. The research firm also points to hardware as a key driver to IT spending. For instance, worldwide computing hardware spending is forecasted to reach $353 billion in 2010, a 5.7 percent increase from 2009.

CIOs and heads of IT functions have been fighting a battle to regain control of the IT landscape and the IT investment decisions. Typically this results in a fragmentation of IT landscapes, multiple technology deployments, shadow IT investment, islands of information and very high fixed costs of maintenance. Typically IT budgets are greater than 90-95 percent spent on keeping the lights blinking and fixing faults. This in turn can lead to high operational costs within corporate business departments, for example purchasing and finance.

Over the last 20 years, IT departments have found their bread and butter to be managing the data interfaces between mutually heterogeneous systems, this has to change, but how? As such, the CIO Europe committee has been formed to combat modern day challenges.

With a new generation of CEOs who are embracing the strategic innovation of today’s CIOs as business peers, now is the time to take a fresh look at the future. Any successful company must now engage with its customers using technology. It is now imperative that the CIO has a place on the executive table.

Global companies such as Omya, Sandvik and EDF Energy will be sending their CIOs to the CIO EU summit to shape the future. The role of the CIO has not always been clearly defined, but at last they are not only accountable for technology operations, but also the drive for innovation, to fuel growth, enable change and create a competitive advantage. It is key for the CIO to focus outside the walls of the company in regards to markets, customers and sales opportunities and then develop strategies to suggest, develop and execute product strategies to take advantage of said opportunities.

The CIO EU summit has also announced the attendance of Michael Foster - Michael is the CIO and VP Europe, Middle East, Indian Sub-Continent & Africa at FedEx and is responsible for corporate IT and business processes for one of the world’s most recognizable brands. Also Gilles Chauveau – the acting Global CIO at EDF Energy will attend, both of whom deal with big budgets and even bigger corporate solutions.

It is predicted that by 2012 the top 25 percent of companies in terms of earnings growth will be those with entrepreneurial CIOs who provide new or breakaway competitive advantages that translate directly into revenue, financial results and market share. But conventional perceptions of IT leadership are seen as reactive and business challenges proved stubborn.

With so many technologies commoditized and increasingly available as cloud services the need for planning for the future is now and with this is agreed those companies with decisions to make will be attending the CIO EU Summit.

Emissions Cap Fuels Committee

The Obama administration has proposed tougher air pollution rules for 31 states from Massachusetts to Texas to curb smog and acid rain, but this may lead energy companies to shut some power plants. The rules are set to take effect in 2012.

American Electric Power Co, who are among the few that may be affected by the regulations, announced last week that they will form part of the NGU US committee along with Cyrus Wadia the senior policy analyst for renewables at the Whitehouse.

As of yet it is unsure if the new regulations will result in the shutting down of plants, but those who do not meet with standards will have to work hard to resolve the situation. An emergency meeting has been called at the NGU US Summit to discuss regulations and the renewable solutions for a greener future.

The EPA also proposed two alternative approaches to emission caps, one that would permit emissions trading only within a state and another that would enable a company to trade pollution rights among its own power plants.

The NGU US Committee consisting of representatives from AEP (American Electric Power) - Nick Atkins, EVP Generation, Austin Energy - John Baker, Chief Strategy Officer, EDF - Christian Chapus, Senior Manager, National Grid - Edward White, Jr., VP Energy Policy, and Cyrus Wadia the senior policy analyst for renewables at the Whitehouse want to develop low-cost, high-efficiency technologies to spark a wave of adoption, create companies and jobs. Innovation is America's natural advantage; the committee believes that with the resources available in the US innovative expertise can be exported worldwide as other countries seek to adopt cost-effective technologies.

There is no denying that well-designed legislation to reduce carbon emissions in electricity and petroleum could enable the development of substantially. Tom McDonnell the NGU Project Director commented that “the better the alternative technologies we propose the more we can influence electricity providers to use a minimum percentage of energy from renewable sources. If we open the doors we can increase competition and drive prices down’

It has been proposed that better alternative technologies will require electricity providers to use a minimum percentage of energy from renewable sources. If this standard were modified to allow low-carbon electricity from any source, not just renewable, with carbon emissions that are 80 percent lower than coal, it could get support from nuclear, natural gas and even coal advocates. Will opening the playing field like this increase competition and drive down prices or draw focus from the emissions goal?

PayPal Action Fraud

With the online retail sector set to grow, security experts PayPal are leading the charge against the fraudsters.


A new report released today has revealed that more than 15,000 people have become victims of fraud in the first six months of 2010. The report, which focuses on UK consumers, was compiled by Action Fraud – the national fraud reporting centre – and reveals that the amount of money people had been tricked out of ranged from just GBP£6 to more than GBP£1m.

However, the issue of just how secure online shopping is has long been debated.
In the US, for instance, the Better Business Bureau (BBB) recently sent out a warning to car shoppers to be aware of websites offering ‘too good to be true’ deals on repossessed cars. The warning came after the BBB said it had been contacted by thousands of people across the nation who thought they were buying from a reputable dealer online but were actually sending money to scammers posing as legitimate, already-established community dealerships.

Now though, new technologies and pioneering innovations are working to ensure that standards are met and consumers can shop online securely and safely.

At the heart of such innovation is PayPal, the secure online payment method that allows users to pay or get paid quickly and easily without sharing any financial information. “Payments is a very complicated business,” explains Scott Thompson, President of PayPal in a recent interview with executive channel MeetTheBoss.tv. “As a consumer you probably look at it and say ‘Wow, this is easy; it works all the time; it works exactly as I expect it to,’ but when you’re down inside the business and trying to understand how you build products, how you move transactions around, how you clear and settle things around the world, it’s very, very complicated.”

What’s more, with all signs indicating that the online retail is expected grow exponentially for the retail sector, at least according to the second annual PayPal Online Retail Report released last month, PayPal’s innovate technology is set to become even more critical in the fight against fraud.

“The last two and a half years have indicated to me that the opportunities for PayPal are enormous,” adds Thompson. “So as president, as general manager for this business, what you have to do is to take a step back and ask the question: ‘what do our customers need? What do they want from us? What do they expect from us and then how are we going allocate our capital to best serve those customers?’”

To find out more about how PayPal is securing the online retailer sector, please go to MeetTheBoss.tv

Senates Unemployment Benefits Fail US

Over the last week there have been countless stories covering the filibustering on the unemployment extension legislation, the Senate's fourth attempt this month to pass an extension of federal unemployment benefits which also failed a cloture vote.

The standalone bill would have extended benefits for six months, but how do HR departments deal with the concerns over the influx of applications for roles and employee concerns?

As the economy begins to improve, thanks to government pay outs, companies are once again beginning to re-grow staffing levels. The demand for highly skilled staff is at an all time high and recruiters can, at last, pick and choose from record breaking numbers of applicants.

Companies such as those who are set to make up the NG HR US committee are now focusing on doing more with less - attracting and retaining talent. Those leading companies who rode the wave of the economic crash also want to achieve a positive work life balance to ensure both sustainability and growth in order to remain competitive.

“It was a commitment that we made, because keeping people focused on creative work and keeping people focused on innovation, inherently requires them to take risks. In an environment where people are fearful they will not take risks, and we just cannot afford to let the creativity or innovation that drives this entire company in any way be affected by the uncertainty and fear that the outside world has created over the last 18 months.” Dan Satterthwaite – Head of HR for DreamWorks
Executives such as Capital One - Brian Gruber, VP HR Technology, Coca-Cola Enterprises - Pam Kimmet, SVP HR, McDonald's - Rich Floersch, EVP HR, Virgin America - Frances Fiorillo, SVP People, Hilton Worldwide - Matthew Schuyler, Chief HR Officer will be speaking out at the NG HR US summit (hosted by GDS International) on the challenges they are faced with in the US; they state that the key to formulating a successful organization is aligning both HR and organizational strategy while minimizing costs.

“The most important asset a company has is its manpower, and as the economy begins to bounce back, the war for talent will be more prevalent than ever. In order to remain competitive, forward thinking companies must stay ahead of the game and implement strategies and solutions that address these pressing challenges.”

Capital One’s representative also argued that there will be an increased rise in the use of software-as-service products within HR. This will take more than 20 percent of market share by the end of 2010, with challenging implications for well-known ERP suppliers such as Oracle and SAP. Cheaper, more flexible systems that are easier to set up and use can only be good news for HR professionals and help them to automate processes and focus on more strategic goals.

The last 18 months have been full of trials and tribulations for most CHROs (Chief Human Resource Officers). They were at the front and center of their companies’ crucial cost cutting initiatives, in part leading to the debates over the recent refusal of the unemployment extension legislation. It will now be down to them to capitalize on the business opportunities from the improved economic environment.

Roaming Charges mean Rethink for Telecoms

As of the 1st of July the new European Cap which was introduced to cut the cost of using a mobile phone abroad has now came into effect, telecoms executives from across Europe were keen to discuss the implementations of the new bill and an ever growing ‘customer is king ‘ attitude at the NGT EU summit which concluded last week.

The bill enforced by the EU has not come soon enough with some customers receiving bills up to £27,000 for using mobile broadband abroad. The cap can be increased or decreased by the consumer again backing the idea that relationship with the customer is key to success in the telecoms industry. The new EU rules will also cut the costs of making and receiving calls around Europe, just in time for the holiday season and allow free access to voicemail. The new EU rules were met with little resistance by the Telecoms committee who have been aware that such steps would be taken to protect the consumer sooner rather than later.

The executives who make the NGT EU committee met at Lake Geneva, Switzerland where Paul Excell the Chief Customer Innovation Officer, BT opened discusions. Paul is responsible for ensuring that Innovation and Technology business generates £1 billion over the next three years at BT, he offered his insight to representatives such as Bouygues Telecom - Yves Caseau, EVP Services & Innovation, Belgacom - Stijn Vander Plaetse, VP Innovation, Tiscali - Salvatore Pulvirenti, CIO and Vodafone - Paul Wybrow, Group Technical Director while speaking out about the 7 c’s of communication. Communication is Key and the telecoms industry knows this better than anybody.

“When your communication is important -- that is, when you want it to be remembered -- you need to think carefully and design it to resonate with your intended audience.” Paul Excell – BT

The 7 c’s which consist of context, i.e. is the situation fully understood, and are we asking the right questions. Content, do you have a single definable goal. Components, break down projects into their specifics. Cuts, remove the sections that don’t work and get to the point. Composition, how do you want to deliver your message. Contrast, find the differences and use it to highlight your point, change triggers the attention of others and finally consitancy, make sure your message is maintained.

“The 7 c’s can improve your communication, they lay out a simple sequence which can help you start broadly and work your way down to specifics of a particular problem or project eventually coming up with a solution for the customer .” NGT EU committee member
It is to the benefit of every business to understand and communicate with the customer but how this happens makes the difference between a success or the miscommunication of your message. The Roaming charges for European customers are but another example where companies did not communicate to the customer. It seems at last lessons are being learnt.

CIO’s at Match Point in Australia

The economic volatility of the past few years has undoubtedly transformed the scope of technology for business, creating enormous pressure for CIOs globally. While market giants in the US and Europe struggle to weather the storm, Australia is in an enviable position, with forecasted growth significantly higher than other regions. Executives from across the technology industry believe now is the time to act and plan for the future. Opportunity is rife and the time to invest is now.
A study released last week of CIOs around Australia and New Zealand, found that while technical and vendor-specific skills seem plentiful, strategic and conceptually oriented skills were in short supply.

According to the report, the shortage for these particular skills has grown out of reinstated projects following the economic downturn, and has led to some companies offering up to 100 per cent increases on contract rates in order to attract required personnel. The growth within the CIO sector of Australia has meant that company projects are becoming more diverse which has lead to the need for more integral systems to take the strain in the countries expanding businesses.

The role of IT in the next few years is crucial for any organization seeking to gain strides over the competition. CIOs in Australia recognize 2010 as an opportunity to explore IT best practices, which will not only optimize infrastructure in a cost-effective manner, but create opportunities for innovation and growth within the organization.

Within Australia, IT spend is anticipated to surpass 4% growth overall, with some technology areas like CRM and Virtualization catapulting to over 15% increase in sales. Initiatives such as the National Broadband Network in Australia will provide tremendous opportunities to organizations within the region looking to bring innovative platforms to their businesses and this has not goes unnoticed by the NG CIO Australia Committee.

Representatives from Adecco - Dominic Panzera, CIO, Australia Department of Immigration - Peter McKeon, Head of IT, Kiwi Bank - Ron van de Riet, GM IT, PepsiCo - Jackie Montado, CIO and Energy Australia - Sharron Kennedy, CIO expect a boost in Q3 and Q4 of 2010 and government tenders to drive considerable spending over the next 12 months. Key focus areas will include Regulatory compliance and the to need spend as a result of intense competition in the retail sector, spurring spending on customer relationship management (CRM) and back office systems.

New government projects in sectors such as e-government, healthcare and education are also a driving force for meetings such as the NG CIO Australia summit offering significant opportunities for IT vendors. In mid-2010, the Australian government is expected to launch a standardized reporting system scheme. Australia's National E-Health Transition Authority has the goal to create a paperless environment in Australia's health sector, including public hospitals and influenced the NG CIO committee to set their next meeting date for the end of July.

With so much change on the horizon who will be the first to capitalize and will the staffing deficite of skilled staff limit growth?

McEducation, McEducation, McEducation

How the ‘McJob’ became the newest way to get schooled


Two years ago, McDonald’s began its fight back against the dictionary definition of the so-called ‘McJob’, launching an aggressive campaign to redefine preconceptions about working life at the burger-flipping conglomerate. At the time, a McJob was defined as an “unstimulating, low-paid job with few prospects”, but head honchos at the firm argued that this was not only insulting, but grossly out of date.

“Our research shows how 87 percent of people who work for McDonald’s get their first choice university place, which is way above that of the national average,” claims David Fairhurst, senior-vice-president and chief people officer at McDonald’s, when talking to executive business channel MeetTheBoss.tv about McDonald’s recent accreditation as a governing body.

In fact, some two years since the McJob assault, Fairhurst is keen to explain how change has impacted the business, highlighting just why the fast food chain is concentrating on developing its employees and giving them the best possible opportunities.

“What HR should be talking about is, ‘How do you truly understand what it is that your business needs? What’s the engine around people that drives your business performance? How can you get more sales and profitability you’re your people?’” he explained.

“Then secondly HR needs to be thinking about, ‘What is it that your people truly value about working for you organization? What is it that differentiates you as an employer?’ And then you need to bring those two things together to create that energy that can be released around people in an organization.”

So just what are McDonald’s doing? Well, in a move largely spearheaded by Fairhurst himself, the fast food giant has become an accredited educational body in UK, having last year provided Apprenticeships for up to 6000 of its 72,000 UK workforce.

“Our research shows how 87 percent of people who work for McDonald’s get their first choice university place, which is way above that of the national average.

“We’re clearly making a significant contribution towards people’s future and it’s also paying off in terms of how they perceive the company and in terms of how their peers perceive working for an organization like McDonald’s.

“And the reality is the more you give people transferrable skills, the less likely they are to transfer. The intrinsic value lies for me in understanding that what you should be focusing on is engagement, not turnover.”
Surely a lesson in engagement worth learning? To find out more about the way McDonald’s teaches it staff to grow at www.meettheboss.tv

Outsource to Europe

The pharmaceutical industry has faced well documented challenges over the last 12 months, the industry is only to aware of this and understand that now is the time to look at new processes and a change in the way they have traditionally done business.

Globally, the pharmaceutical industry is witnessing rapid advancements in processes and technological developments. Automation is emerging as an integral part of nearly all manufacturing processes and pharmaceutical big wigs are ready to invest in the future. Due to the implementation of regulatory norms and spiraling costs pharmaceutical companies have been opting to outsource their manufacturing processes to contract manufacturing organizations in order to improve on efficiency and productivity. Countries such as Brazil, Ukraine, Mexico, China and India have taken full advantage of the need for lower manufacturing costs and have aided a boost in manufacturing growth. But this in itself has its own drawbacks.

It wasn’t too long ago that most medications were manufactured in the same country they had been discovered, from start to finish; this meant more control and less mistakes. It is now predicted that up to 40% of drugs taken in the EU are imported and up to 80% of the active ingredients in those drugs come from foreign sources. It has been harder and harder to keep track of the quality of ingredients and regularly inspecting the facilities which are producing the chemicals having to rely on paperwork to control production. There has even been some concerning reports that some Indian manufacturers have been accused of forging documentation.

These latest revelations have lead to a need for dramatic change and European pharmaceutical leaders believe now is the time to bring manufacturing back to Europe. The NGP EU summit (hosted by GDS International)has been organized by some of the leading names in the pharmaceutical industry to discuss the need to re consolidate manufacturing within Europe.

Simon Orchard the : VP Biotech Operating Unit Europe and Managing Director of the Strängnäs site (Sweden) and CEO for Pfizer Health AB is only to aware of the trials and tribulations in the world of pharmaceuticals and has become a valued member of the NGP EU Committee. He will be focusing on how to streamline the time-to-market for new products to respond more quickly to the growing demands of consumers, outsourcing the non-core functions to strategic partners and contractors within a better regulated environment and the regulatory compliance needed to ensure the continued quality of product. He will be joined by AstraZeneca - Eva Giertz, Director of Pharmaceuticals & Process Quality Assurance, Novartis - Thibaud Stoll, Head of Global Biopharmaceutical Operations, Sanofi Pasteur - Rene Labatut, VP Global Manufacturing Technology, Genzyme Europe - Raun Kupiec, Senior Director, Regulatory Affairs Europe.

This is set to be a year of revelations for the pharmaceutical industry and with the leading companies wishing to pull back on outsourced manufacturing it looks like now is once again the time to invest in Europe.