Category: Industry News

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AWS CEO Andy Jassy talks about competition

Amazon Web Services CEO Andy Jassy doesn’t talk much about the competition, but he made rare comments about that competition during a recorded chat with a college professor.

On IBM and Oracle:

“I think there’s a second category of large technology companies that just took an ungodly long time to get there. These are companies like Oracle and IBM, some of those folks. I think for them the model that we were pursuing, in the cloud, was so disruptive to their core businesses. The margin structures are radically different. The pricing structures are dramatically different. The delivery model is radically different. The way you take care of customers is radically different. So different that I think you have that dilemma at a lot of large companies: do you really want to try and accelerate the cannibalization of an existing … I think that they fought as long and hard as they could. They pooh-poohed it and they said, first no one will use it, then maybe only startups will use it, and they won’t use it for anything real, then enterprises will never use it, then enterprises will never use it for anything mission-critical. Companies and developers voted with their workloads, and so now they’re in this spot of trying to spin something up. It’s six, seven years late.”

Photo: Jaromír Kavan

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News You Can Use: 2/15/2017

  • It’s Time to Go Beyond Supplier Management, But Where is That?

    Organizations these days need more than traditional historically focussed spend analytics that tell them, weeks or months after, what was spent, on what, from whom, by whom, from where, to where, and in what quantity. You need to know what is being spent, by whom, on what in real time … and where the dollars are trending towards. Is a new supplier taking all of the spot buy spend, or even worse, spend that is supposed to be on another contract? Are product and services tastes changing? Are market costs changing? The application has to not only be able to keep up, but identify the most pertinent trends and options for dealing with them … it has to have advanced predictive analytics that, at the very least, identifies the most relevant changes (and ranks them by value or statistics or outlier distance from the expected norm), if not offering prescriptive analytics on how to take advantage of changes, minimize losses, or control them in (historically) well understood situations.

    http://sourcinginnovation.com/wordpress/2017/02/03/its-time-to-go-beyond-supplier-management-but-where-is-that/

  • IT and Functional Departments – Finding the Middle Ground

    Procurement also brings market information (suppliers, price points, service levels) that IT may not be as focused on, but that could be critical to the overall solution. IT groups can at times limit themselves to certain suppliers for system or software solutions, but there may be alternate suppliers that easily integrate, or provide enough value to justify the effort required for working with disparate suppliers or systems. Procurement can bring that perspective forward and champion the needs of the business to balance the costs associated with IT change.

    http://sourcinginnovation.com/wordpress/2017/01/23/it-and-functional-departments-finding-the-middle-ground/

  • How Levi’s is radically redefining sustainability

    Levi’s has always been a leader in sustainability. In 1991, it established “terms of engagement” that laid out the brand’s global code of conduct throughout its supply chain. This meant setting standards for worker’s rights, a healthy work environment, and an ethical engagement with the planet. “It wasn’t an easy thing to do,” Dillinger says. “At the time, we were worried that doing this would drive up our own costs and prices.” In fact, what happened was that these practices were quickly adopted by other companies, who used it as a template to write their own rules. “We were actually leading industry toward new standards,” he says.

    https://www.fastcompany.com/3067895/moving-the-needle/levis-is-radically-redefining-sustainability

  • Don’t Be the Kobe Bryant of Your Office

    It doesn’t matter how productive you are if no one enjoys working with you. Steve Nash, a former NBA player that the researchers found to be particularly valuable at making his teams better, was famous for constantly high-fiving his teammates. There’s never been a direct measure of a “high-five to productivity ratio,” but doling out praise and encouragement seems to be indicative of creating a high-quality team culture, which in turn increases performance.

    http://www.thesimpledollar.com/dont-be-the-kobe-bryant-of-your-office/

Photo: Oliver Cole

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The impact of H-1B modification on tech companies

Note: This blog is apolitical and I will do my best to keep this post free of spin and stick to the facts.

During my research for last week’s supplier report, it was clear that President Trump’s immigration policies were a major pain point for IT companies. It was such a reoccurring thread that I felt I needed to go deeper to better understand the situation.

On January 27th, 2017 Donald J. Trump released an executive order that modified travel rights into the United States from several countries.

The executive order imposed a 90-day travel ban on the citizens of seven predominately Muslim countries: Iraq, Syria, Iran, Sudan, Libya, Somalia and Yemen. It also suspends the U.S. Refugee Admissions Program for 120 days. Additionally, it indefinitely prohibits Syrian refugees from entering the U.S.

As of February 5th, the Department of Justice is blocking the President’s executive order:

The US Justice Department filed an appeal just after midnight Sunday, asking to pause a sweeping decision from the judge that temporarily halted enforcement of several key provisions of President Trump’s executive order.

The status of the executive order has fluctuated during last week, and it is clear that President Trump is planning to fight this most recent setback:

Trump’s modification of immigration policy has many in the technology industry concerned that the order was just the first step of more sweeping immigration reforms. It is being reported that the Trump administration is also drafting modifications to the H-1B visa program.

The US H-1B visa is a non-immigrant visa that allows US companies to employ graduate level workers in specialty occupations that require theoretical or technical expertise in specialized fields such as in IT, finance, accounting, architecture, engineering, mathematics, science, medicine, etc.

The program allows for 65,000 (+20,000 additional IT workers) into the country annually. Depending on the country, a worker can stay in the United States for 3 years with an option for an additional 3 year renewal.

Although there are annual controls on who is accepted into the via program, there doesn’t seem to be precise records on how many people in total are currently working in the U.S. under the H-1B visa program. It is estimated to be between 650,000-850,000.

White House press secretary Sean Spicer said the possible executive order on work visas “is part of a larger immigration effort” and stems from “an overall need to look at all of these measures.” C-level executives from many of the large technology firms have denounced this activity:

Microsoft CEO Satya Nadella:

“There is no place for bias or bigotry in any society, in any context. That’s where we start from,” Nadella told employees. “It is the enlightened immigration policy of this country that even made it possible for me to come here in the first place, and gave me all this opportunity.”

Google Co-Founder Sergey Brin:

“I think it’s important to not frame this debate as being ‘liberal’ versus ‘Republican’ and so forth,” Brin told the crowd. “It’s a debate about fundamental values, about thoughtful policymaking and many of the other things that I think are — apparently not universally adored — but I think the vast majority of our country and of our legislators and so forth support.”

Apple CEO Tim Cook sent an email to employees (and has not yet publicly commented):

There are employees at Apple who are directly affected by yesterday’s immigration order. Our HR, Legal and Security teams are in contact with them, and Apple will do everything we can to support them. We’re providing resources on AppleWeb for anyone with questions or concerns about immigration policies. And we have reached out to the White House to explain the negative effect on our coworkers and our company.

As I’ve said many times, diversity makes our team stronger. And if there’s one thing I know about the people at Apple, it’s the depth of our empathy and support for one another. It’s as important now as it’s ever been, and it will not weaken one bit. I know I can count on all of you to make sure everyone at Apple feels welcome, respected and valued.

Perhaps the Trump administration’s investigation and overhaul of the H-1B program is due to accusations of companies abusing the program. For example, Disney has been accused of laying off qualified domestic workers in favor of cheaper H-1B workers coming from India.

While the argument is being made that American interests are being protected by these measures, there is concern that by increasing the wage requirements for H-1B workers and making it more difficult to get these resources, US companies will just shift the job entirely to cheaper labor markets like India:

India’s technology companies, led by Tata Consultancy Services Ltd, Infosys and Wipro, have argued they are helping corporations become more competitive by handling their technology operations with specialized staff. They also contend the visa programs allow them to keep jobs in the U.S. and that if they have to pay more for staff, they will handle more of the work remotely from less expensive markets like India.

This is (clearly) a complicated issue that only gets more complex through a political filter. It seems possible that the H-1B program has been abused in the past and it is alarming that there isn’t precise documentation on how many people are working under the program currently.

The United States is a country that was forged through immigration and there are many examples of people coming here with nothing and creating companies and jobs. Turning away from that cultural identity can be damaging and have long lasting impact.

Photo: Ferdinand Stöhr

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News You Can Use: 2/1/2017

  • Is 2017 The Year Of Flat Headcount?

    As budgets are settling down and getting approved for many of the companies I’m on the board of, I’m seeing a general trend of much less headcount growth in 2017 than in 2016. In some cases, companies got ahead of themselves. In others, they need to integrate all the people they’ve added. In some, they feel like they have a critical mass of people and want to march to get profitable on current headcount. And still others are profitable and have realized significant operating leverage in the past two quarters that they want to continue.

    http://www.feld.com/archives/2017/01/2017-year-flat-headcount.html

  • Google Co-Founder: Take Chances, Pursue Your Dreams and Silence the Voices

    Brin encourages experimentation and innovation, just as one of his professors did when he wanted to leave Stanford to launch Google. But his career has taught him that the future is impossible to predict. He is cautious in his forecasts.

    “The evolution of technology might be inherently chaotic,” he said. “We have a set of values and desires today that are probably pretty different than before the Industrial Revolution, and different still than before the Agrarian Revolution. And we might continue to evolve.”

    https://www.entrepreneur.com/article/288046

  • This is pretty much how it goes in procurement:
  • In a tech-saturated world, customer feedback is everything

    Executives and product teams shouldn’t wait until a product breaks to hear from their customers. My team, for example, recently executed a high-stakes redesign and overhaul of our central product. While we always strive to incorporate customer feedback and interaction into our day-to-day work, we worked with around 16,000 customers to receive feedback on different versions of our new product. Our entire process was oriented around continuous customer feedback — and it transformed the way we do business. We now collaborate with 11,000 customers who give us a constant look at how our product helps them solve the challenges they face in their day-to-day lives.

    https://techcrunch.com/2017/01/20/in-a-tech-saturated-world-customer-feedback-is-everything/?ncid=rss

  • Why your “career path” won’t lead to your dream job

    You may wonder, then, what’s the point of setting goals, working hard, and ending up somewhere you never intended to be? How can you make progress if you continually break course? How can you be successful if you can’t even follow a straight line?

    Here’s the thing: The more activities you participate in, the more people you meet, the more opportunities you grab hold of, the more likely you are to find something amazing along the way—regardless of (or maybe especially if), your path is quite windy. In the words of the inimitable Oprah Winfrey, “Luck is preparation meeting opportunity.”

    https://www.fastcompany.com/3067259/hit-the-ground-running/why-your-career-path-probably-wont-lead-you-to-your-dream-job

Photo: Ales Krivec

Posted on

News You Can Use: 1/25/2017

  • Why You Should Recognize Luck’s Role in Your Success or Failure

    Recognizing luck also helps with empathy. When you over-credit hard work and throw the role of luck out the window, it’s easy to assume everyone else should be able to accomplish the same things you can. When you recognize the role of luck, however, you keep your ego in check, which makes it easier to look at things more objectively and with less judgment.

    http://twocents.lifehacker.com/why-you-should-recognize-luck-s-role-in-your-success-or-1791093753

  • Would You Want the “Right to Disconnect” from Work?

    …“All the studies show there is far more work-related stress today than there used to be, and that the stress is constant,” MP Benoit Hamon told the BBC. “Employees physically leave the office, but they do not leave their work. They remain attached by a kind of electronic leash — like a dog. The texts, the messages, the emails — they colonize the life of the individual to the point where he or she eventually breaks down.”

    http://lifehacker.com/would-you-want-the-right-to-disconnect-from-work-1790830015

  • How to Say ‘No’ at Work (Infographic)

    Too often, people burn themselves out by agreeing to take on more tasks than they can handle. However, overloading yourself with work can reduce the quality of what you produce. If you’re too busy, you may also miss deadlines. In those cases, the person you’re working for likely would have preferred that you had just said “no” from the start.

    https://www.entrepreneur.com/article/287746

    Photo: The Business Backer
    Coming out of college almost 20 years ago, I entered a work force that told me to “NEVER SAY NO”. Early in my career that was a major source of burnout. However, in the last 5 years, saying yes gave me opportunities and access to projects that were good for both experience and my career politically.

  • The Purpose of a Supply Chain Manager: The End Customer Experience

     The journey to understand that focus tells you what your business model really depends on. Too many companies don’t understand what customers really value and as a consequence spend a lot to develop low-value innovation, such as car manufacturers loading their cars with more features that customers don’t use – a phenomenon known as marketing myopia.

    http://www.scmr.com/article/the_purpose_of_a_supply_chain_manager_the_end_customer_experience

  • Bonus: Americans at Work: Philadelphia’s Municipal Offices

    While photographing in these spaces what stuck out most visually was the physical evidence of decades past, not only in the space’s aesthetics and architecture but in the office equipment itself. An employee can find themselves sitting at mid century desk working on a 21st century computer while referencing a ledger book from 1887. Philadelphia City Hall is like a time capsule no one is quite ready to put the lid on. Over time, as Philadelphia grew, more municipal offices have been built to accommodate the needs of the city. One of these offices—Philadelphia’s Municipal Services Building—is a more modern office building, something office workers of today would be more familiar with.

    https://www.theatlantic.com/photo/2017/01/americans-at-work-philadelphias-municipal-offices/513209/?utm_source=feed

Photo: JoshWillink