Economic Crisis to Change Corporate Model?

Think big, future managers! New York Times offers an interesting high-level perspective on “How Crisis Shapes the Corporate Model.” Three ideas that interest me: unbundling the corporation, bringing local manufacturing back, and the proper role of government and corporations…

Cost of Doing Business: South Dakota’s Cheap!

So how much of an advantage does South Dakota have over other states when it comes to the cost of doing business?

Thursday 1/29: Chapter 5, Dell, etc.

Pretty good discussion today! Among the points covered:

1. Database, date warehouse: not the same thing (p. 130).
2. CAH knows TDL* about XML.
3. Dell was putting RFID chips to work in 2003. Wal-Mart and mining companies can do the same — is that support for Carr’s thesis that IT is a commodity and not a source of competitive advantage?
4. Maybe competitive advantage depends as much on thinking of new ways to use existing technology (cell phones in lieu of credit cards? cell phone GPS as basis for city traffic management?).
5. Even the best planning and managing can’t stave off a recession.

At least those are the points that stuk out to me. Your comments (and Tommy, your defense of Wal-Mart?) are welcome!

*too darn little!

Spend More on IT? During a Recession?!?

Money’s tight everywhere. Walking into a meeting during a recession and asking to spend more money takes chutzpah… and a really good business case. Can you make that case for your IT department?

Chris Murphy thinks some IT projects can make that case. One key question: is your project a nice-to-have or a need-to-have? Murphy also notes that while IT folks usually prioritize cutting cost, business folks usually prioritize supporting growth of the company.

New hardware or software might cut costs—one business bought a Kaseya system that manages power settings on its 350 PCs and servers and cut the power bill by $30K. But new IT might also increase business, and sometimes, even during a recession, you’ve got to spend money to make money.

So which way do you go as a manager in a recession? Do you sit on the gear you have and play it safe until the economy recovers? Or do you invest in IT improvements now to gain advantage on your competitors? (Whew—questions like these make me glad I’m just teaching. )