1. Jump to first page Cis 301 Technology Lecture, Week 3

2. Jump to first page Introduction n Technology Issues, Changes, Trends

3. Jump to first page Topics of Discussion n According to a recent Boston Consulting Group study published in Inc. Magazine, “One quarter of all business-to-business purchases will be made online by 2003.” n The transactions will be worth an approximate $2.8 trillion

4. Jump to first page Small business software n To buy or rent? n Software now available for small business owners that allows similar automation to big companies n Application service providers, Internet business services, online outsourcers to the rescue

5. Jump to first page Application Service Providers (ASPs) n Many services are free or offer free samples n Applications run off remote servers and accessed through a web browser n Businesses don’t need to install or manage any new software n ASPs act as a virtual tech department

6. Jump to first page ASPs--Small business answer n Saves time and money n Reaps benefits of complex applications without investing heavily or committing too deeply n Great concept

7. Jump to first page Real Life--The Other side of the story n By nature, small business owners are control freaks n Owners are reluctant to give up control over certain core business functions n And if they are financial in nature, prepare for a struggle

8. Jump to first page What This Means n On the tech side, entreprenuers are still on somewhat shaky ground when it comes to tech talk n On the truth side, the entreprenuer is not losing control because: u information often resides on a shared server u information can be accessed 24 hours a day, 7 days a week

9. Jump to first page Next Steps n Find the right ASP, do some research n Examples: u NetLedger Inc.--an online accounting platform u Salesforce.com--collaborates and shares vital data with entire sales force u Stamps.com--print postage from a PC u Agillion--Manage interactions among co- workers, business partners, and customers

10. Jump to first page Technology--Changing Face of the workplace n Your office can be anywhere--boat, car, bar, beach n With a cell phone, a pager, an answering service, and a laptop or a combination of any of these, work is anywhere, anytime, anyplace n Working from home surged 24 percent between 1998 and 1999 to 20.1 million

11. Jump to first page Imported Labor n Improved telecommunications and the need for around-the-clock service are driving companies to look overseas for labor.

12. Jump to first page And where do they look? n Eastern Europe has a surplus of skilled mathematicians and engineers but there is lack of legal protection there for US businesses n Israel is known for sophisticated programmers and product developers but labor costs are no cheaper than in the US n Phillipines offers a cheap, English fluent labor force, but workers lack the skills of Indian programmers

13. Jump to first page And why India? n In India, a company can hire managers who are ex-military, ex- brigadier generals, people with good leadership skills, good at following rules and directions. n And beginning computer programmers earn $600-$1000 a month in India, compared to $4000 to $5000 in the US

14. Jump to first page But there are other costs, beyond wages n In India, overhead is about twice as high per engineer as in the US n Companies there pay a premium for international satellite or telephone transmissions n The cost of air conditioners to keep computers at room temperature can be exorbitant n Transportation to and from work is a fringe benefit because many Indian workers don’t own cars n Free tea service comes to every desk four times a day

15. Jump to first page Communications n More than the cost of workers communication is what makes or breaks companies that hire workers overseas n It’s very important to understand how to communicate a sense of urgency. u Example: Be explicit. Is this a quick and dirty job or do you want it to be bulletproof from Day One?

16. Jump to first page Other issues n Backup is critical n Customer service must be stressed n Indian partners tend to work according to personal relationships, not contracts

17. Jump to first page Time differences n India is 12 1/2 hours ahead of California--the half hour addes so that the nation can be on one time zone. n Corporate officials on the different continents schedule weekly teleconferences before or after regular working hours so they can communicate.

18. Jump to first page Biggest Challenge n Convincing technologically savvy Indian workers to tailor their products to foreign consumers n In a foreign country, they don’t see the user and so they don’t have to worry over user-friendliness

19. Jump to first page Survey reveals traits of firms using the Web n Internet users are more likely to be: u based in large metropolitan areas u have at least 5 employees u anticipate faster sales growth

20. Jump to first page Case study n Establish groups and complete the Sears case study on pages 69-70