News You Can Use: 11/11/2015

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  • Could Detroit become the next Silicon Valley?
    I have actually talked about this before… I actually think the urban setting and rock bottom real estate costs could lure young technical people who have been passed over to make something new.  It has the right mix of social cause and opportunity.  The city just needs to get out of its own way. 

    Amazon announced plans at the end of September to help continue this growth by creating a center of technology in downtown Detroit. The tech giant plans to build a corporate office to bring more full-time technology jobs to Michigan. And as a friendly introduction to the city, Amazon donated 30 Amazon Fire tablets to the Carver STEM academy program in the Detroit Public Schools, as well as $10,000.

    http://www.cio.com/article/3001690/startups/could-detroit-become-the-next-silicon-valley.html#tk.rss_all

  • Federal IT outsourcing spend alarmingly poorly managed

    Leading companies approach IT outsourcing strategically, taking an aggregate approach to managing IT services spending rather than making such purchases on a piecemeal basis. By doing so, they achieve four to 15 percent savings on these services annually, according to the GAO. While this report noted that efforts by these federal departments to better manage their IT outsourcing has improved in recent years, with each agency designating officials and creating offices to identify and implement strategic sourcing opportunities, it found that most of these agencies’ IT spending “continues to be obligated through hundreds of potentially duplicative contracts that diminish the government’s buying power.”

    http://www.cio.com/article/2999467/outsourcing/federal-it-outsourcing-spend-alarmingly-poorly-managed.html#tk.rss_all

  • IT Vendor Risk Management: Improving but Still Inadequate

    1. Nearly half of critical infrastructure organizations DO NOT conduct IT vendor security audits on a regular basis. These are the very firms that provide us with electricity, financial services, health care, telecommunications, etc. Very scary.

    2. Critical infrastructure organizations are especially lax around the security of third-party distributors. This is especially troubling since distributors not only source IT products as a proxy for customers but also provide value-added services (i.e. configuration, customization, installation, etc.). This gives distributors absolute carte blanche to corrupt otherwise clean hardware and software.

    http://www.networkworld.com/article/3002069/security/it-vendor-risk-management-improving-but-still-inadequate.html

  • 3 Plays Great Coaches Use to Deliver Criticism
    I don’t know if feedback has to be all sunshine and puppy dogs, but I do think it should be focused and not stated in generalizations. Critiques should be made with specific examples and then provide suggestions to avoid them (especially for younger workers).

    Good coaches don’t let an error overshadow what the player has done right all game. They complement the athlete on something they did well that half or an aspect of their game that they are improving. This shows the athlete that the coach isn’t just looking at them when they mess up, but that they recognize and appreciate the athlete’s strengths as well. The same is true in the workplace. Support your teammate and let them know where they have been excelling. The rule of thumb is five positive comments for every negative one. Interestingly, research on relationships both in and out of the business world has found that a similar ratio works for delivering criticism. Psychologist John Gottman analyzed married couples and found  the single biggest determinant  of divorce is the ratio of positive to negative comments the partners make to one another. The happiest couples demonstrated a ratio of about five positive comments for every negative one they delivered.

    http://www.entrepreneur.com/article/251416

  • Box CEO: ‘I’m the biggest anti-shadow IT person’

    CIOs didn’t get it, or chose not to, so Box initially circumvented CIOs, taking the product to departmental line of business managers. And when the software went viral, seeping its way into other parts of the business, Levie and his sales team would call the CIO and tell them. That angered CIOs, who often blocked Box. So Box ceased calling IT departments, quietly building up its technology features and bolstering security to make the software more palatable for enterprises. Now a mature, public company itself, Box counts General Electric, AstraZeneca, Proctor & Gamble and others among its customers. “I feel your pain now, I understand why you blocked us for so long,” Levie told the audience.

    http://www.cio.com/article/2999876/cio-role/box-ceo-i-m-the-biggest-anti-shadow-it-person.html#tk.rss_all

  • Is Your Team Starting to Look Like ‘The Walking Dead’? 3 Ways to Resurrect Team Morale.

    Innovate, disrupt, re-think. These are all key phrases in leadership buzzword bingo these days. Yet, all too often, companies don’t create a culture that really empowers people to take the healthy risks needed to bring about this kind of change. Speaking from personal experience, I was once fired for speaking my mind and challenging the status quo at one of my previous employers.

    You never know where the next great idea in your company might come from. So, it’s critical that leaders create a culture where employees know they will be heard and, more importantly, supported in seeing their ideas through to fruition.

    http://www.entrepreneur.com/article/252311

Photo: Jordan McQueen

News You Can Use: 8/5/2015

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  • Gartner Announces Rankings of Its 2015 Supply Chain Top 25
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    http://www.gartner.com/newsroom/id/3053118
  • Detroit Is Cultivating Local Entrepreneurship to Secure It’s Future

    What have I been saying about Detroit and Camden?  It is going to happen…Detroit is also a city that is made of 82 percent African-American residents and 52 percent women residents, with an annual median household income of $26,000. When witnessing this new business growth we must ask ourselves, is everyone able to participate? Can all have the opportunity to start a business and grow? Nationally, according to our database, minority entrepreneurs make up 15 percent of businesses and contribute $591 billion in revenue to the economy. Will Detroit capture and foster this growth?

    http://www.entrepreneur.com/article/248844?ctp=BizDev&src=Syndication&msc=Feedly

  • Big Data and Risk are a Match Made in Heaven

    Tier one automotive supplier Borg Warner, for instance has developed a Supplier Performance Monitor using huge amounts of readily available data from its own SAP system plus third party data all fed through an artificial intelligence algorithm similar to Google’s search engine to stay ahead of problems.  Rather than periodically assessing risk and paying for protection with working capital, Borg Warner constantly listens for tremors and responds before the problem gets out of hand.

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    http://www.forbes.com/sites/kevinomarah/2015/07/30/big-data-and-risk-are-a-match-made-in-heaven/

  • Amazon CTO: ‘We Still Consider Ourselves a Startup’

    It’s very important to realize today that with minimal investment you can start building applications. Five, ten years ago you would need millions [of dollars] in investment. It allows entrepreneurs to truly focus on new products without having to worry about the infrastructure, without having to get additional investment to buy hardware. And if you look at the big household names these days, Airbnb, Spotify, Instagram, Pinterest – all of these are born in the cloud. Without cloud, if you asked them, they would probably say they would not have been able to reach this scale at the speed they did, without it.

    http://www.entrepreneur.com/article/248884?ctp=BizDev&src=Syndication&msc=Feedly

  • Summer Break: Procurement’s Day in the Sun

    Added Miller, “the demand for supplier transparency and high-quality, responsibly-sourced offerings has never been higher. Cost containment will always remain a key sourcing objective, but today, it’s equally important that a company can find and retain reliable and reputable sources of supply.  How and where a product gets made can have far-reaching implications on an organization’s sales effectiveness and brand reputation.”

    http://www.forbes.com/sites/paulmartyn/2015/07/28/summer-break-procurements-day-in-the-sun/

  • Exploring Investment Drivers for Global Supply Chain Risk Management

    a new concept is emerging: global supply chain risk management (SCRM).
 Quite often, the decisions to invest in SCRM are often driven more by the fear of negative press – and of course regulatory penalties – than the opportunity to make the supply chain more resilient and maintain top-line revenue and market share, even in the case of a supply chain upset.

    http://spendmatters.com/2015/07/31/global-supply-chain-risk-management-investment-drivers/

Photo: Christian Joudrey

Detroit – An American Autopsy

I have been debating if I should cover Detroit: An American Autopsy by Charlie LeDuff on this site. At the surface, a book about the failure of a major American city doesn’t have much to do with IT supplier management or the other topics I cover on here (it could be a better fit at one of my other sites). But if you try hard enough, you can make some connections and come up with a few generalized life lessons.

So why did Detroit fail?  Why does any organization fail?

They didn’t diversify and innovate.  

Detroit lived and died by the auto industry.  When times were good and the factories were pumping out cars, the population of Detroit soared to over 1.4 million people.  Migrant workers from all over the country and especially the south moved to Detroit for a better life, and they found it.

America enjoyed a wonderful and unnatural lack of automotive competition post WW2 (this part isn’t in the book).  Germany was in ruins.  So was Japan.  American pride was at a high, so our grandfathers and fathers bought those Cadillacs.  By the 1970’s fuel prices spiked for a time and those little Civics and VW Bugs were starting to make a whole lot of sense.  The American car makers still tend to fumble with long lasting, fuel efficient cars (not all the time).

So the factories made less cars, tried to get the unions to adjust policy (good or bad), they pushed back, then the car companies moved jobs to factories in other countries.

Detroit had a slew of symbiotic businesses that flourished during the heyday.  People opened their own factories that made car parts and chemicals and even catering services for the plants.  Then the factories started buying cheaper parts and products from China.

By the time those small factories even thought to service international brands, it was already too late.

The jobs dried up.  Working class families left.  The city fell into disrepair without a tax base.

Now the people left don’t have the tools to protect or rebuild the city.  Abandoned house are left to burn because fire fighters don’t have the right gear or enough men to keep up with the amount of arson. Children are asked to bring their own toilet paper to school.

How does this compare to an organization or company?

You have to reinvest.  In infrastructure, in people, in education.  Things can fall into such a state of disrepair that an organization can never pull out (are we seeing that with HP?).

You have to have tight controls on where the money is going.  Corruption is a considerably smaller problem in most corporations compared to government, but good companies still have money leaking out of places it shouldn’t. Money that can be reinvested.

You have to give people the tools they need to be successful and thus make the company successful.

People also need to have faith… that with hard work and a good plan, things will improve and ultimately flourish.  The people of Detroit don’t seem to have faith that things will get better, so they are leaving.  Detroit’s population is less than 700,000 people.

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We have seen this happen to Camden, NJ on a smaller scale and I often wonder can this happen to Philadelphia?  It almost happened in the 70’s.  Factory jobs disappeared, the city’s blue collar workers struggled.  But Philly turned it around by having an educational base (U. Penn, Drexel, Temple, La Salle), became a medical hub starting with CHOP, and some core financial and insurance companies made Philadelphia home (this is long before Comcast).

Here is a Ted X talk with author Charlie LeDuff (he uses colorful language so NSFWish):

Sometimes you can’t kick the can down road, you have to pick it up and deal with it now.