Exploring the impact of broadband and technology on our lives, our businesses, and our communities.

Online buying jumps 25% over holidays

Jewelry, flowers, clothing, and computer stuff fueled a 25% increase in online buying during the holiday season. This article describes the surge in spending in more detail.

In my own experience, I've seen a dramatic improvement in the quality of many online shopping sites. Even some smaller businesses have excellent and easy to use Web sites that make it quick and easy to find what you want, order it quickly, and get confirmation of the order via email. It sames time and money to be able to shop online, especially if you live in a rural area like I do, where shopping options are pretty limited.

Broadband is a key requirement, though. I'd do a lot less buying online if I had to use a dialup connection, which is just too slow to wade through a graphics-rich catalogue site. Broadband is not only an economic development issue, it's a quality of life issue. Who wants to move to an otherwise beautiful rural area far from big city shopping opportunities if broadband is not available to help mitigate that?

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Indian state builds fiber to every town

Yet another former third world country has broadband projects underway that leave U.S. efforts in the dust. Andra Pradesh, a state of India, has embarked on an ambitious but entirely doable project to build a statewide network consisting of a 10 gigabit per second backbone, 1 gigabit Ethernet trunks to a thousand locations, and 100 megabit fiber connections to every town in the state. More than 40,000 government offices will get fiber connections, and will be able to deliver government services via town kiosks and other public Internet locations.

Even more interesting, the official tourism site offers 24 hour chat service to online visitors and potential tourists. What about your community? Unfortunately, in the United States, we have the telcos busily trying to usurp the right of communities to develop community infrastructure, with the legislation in Pennsylvania as a perfect example--PA towns now have to ask Verizon's permission to chart their own destiny.

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Quizno's offers free WiFi

According to Dave Winer, Quizno's has free WiFi at their 3300 U.S. stores. When companies like this are making the substantial investment needed to deliver the service, it's passed from the realm of a nice amenity for a few techno-geeks and has entered the realm of the ordinary.

But to make WiFi really work for a community, a community approach is needed so that it is widely available, not just at one store out by the main road. What is your community doing?

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Pocket-size projectors are coming

A UK startup called Light Blue Optics has announced they are developing a pocket-size digital projector, using breakthrough holographic techniques that allow using just a few small components, compared to the relatively bulky LCD projectors, which are still too big to carry around conveniently and still too expensive.

The long promised technology revolution in K12 classrooms has never delivered for a variety of reasons, but chief among them is that virtually no teachers have an LCD projector. It's pretty tough to use the Internet to change the way you teach if you can't project what it is you are teaching on the wall so students can see it. Small, inexpensive projectors would have large and mostly unanticipated impacts.

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Getting businesses online

One of the best ways to create new jobs in your region is to make sure the businesses that are already in the community have access to good advice, including advice and guidance on technical matters.

The traditional role of the economic developer in the Manufacturing Economy was to recruit jobs from other parts of the country. But that has not been an effective primary strategy for many years. In a global economy, many traditional manufacturing jobs have moved offshore, and no amount of tax incentives are going to change that.

A diversified economic development strategy would put more time and resources into helping existing businesses grow. And there is plenty of simple and effective things that can be done. For example, I still find many businesses have poorly designed Web sites. Why not use some ED funds to pay for Web site critiques and reviews of business Web sites? This could be done on a 50% match basis to ensure that the businesses are likely to take the advice seriously.

As an example of how bad things could be, I just found a business with this statement on their "Contact Us" page:

To email us, order a free catalog, check on an order, etc., please call 1-800-829-xxxx.

I'm not making this up--to email the company, you have to call them first! Here is a business that has apparently been asleep for the past ten years, and still does not recognize that current and potential customers may want to email the company. I find that the majority of small businesses are still not taking the Web seriously, largely because they simply don't know what to do.

Part of the problem is not their fault. Too many businesses have been burned badly with bad advice. There are basically two ways to get help with a business Web site.

  • You can go to a Web design shop. These outfits are often expert at building the Web site, but don't always have in-house expertise to help with marketing and business integration issues. So businesses end up with costly Web sites that don't actually have any impact on the business.
  • You can go to a traditional marketing/advertising firm, but these outfits often cost more. They'll either do the Web design in-house or farm it out; either way, there's a middleman that drives costs up. And too often, these firms have some of the same blind spots that the Web shops have--making the Web work often means rethinking the way you do business.

Rethinking the way a company does business is not always costly or time-consuming. Like the clueless company in the example above, it sometimes means asking simple questions, like "Who is going to answer the email?"

Economic developers, acting as coaches, can really make a difference with local companies that need help, not just on the Web, but with marketing, advertising, business management, accounting, and the whole range of services that companies need. And the ED staffs don't have to be expert in all these areas--it could be that you once you have identified what a business needs help with, you help them find a qualified firm. That alone can be a big help for a small businessperson who can't find enough hours in the day to do everything that needs to be done.

Is the Internet good or bad for us?

The New York Times (reg. required) has an article summarizing a new study on the impact of the Internet on our lives. As past studies have found, TV is the big loser, with Internet users watching about 17% less television. That's probably not bad news.

The article goes on to say that the Internet is also causing us to sleep less (by 8.5 minutes) and that it reduces contact with family members by 23.5 minutes per day. The researchers acknowledged that they cannot answer the question of whether or not it strengthens or weakens social relationships. That's been a burning question since the rise of the Internet, and many tons of paper was wasted in the mid and late nineties to print handwringing articles about how the Internet would probably turn us all into introverted, pale-faced geeks sitting in our basements in the dark night after night, hanging out in seedy chat rooms.

None of that ever happened, but this study is likely to produce an echo effect of those hysterical articles, using the data that contact with family members is down.

The problem with these studies is I have yet to see one that really tries to find out the other side of the story. I may talk slightly less to my wife face to face, but we are emailing each other all day long. So if you really studied the entire social interaction, you'd probably find we communicate more now than we did ten years ago.

The article estimates that 75% of the country has Internet access now. Unfortunately, we still have some elected leaders in our communities that don't think any of this is important, because they are viewing it through the lens of their own (somewhat limited) experience, rather than trying to look at the community as a whole. When 75% of your constituents are using the Internet, it's not a fad or a luxury for the well off--it's a necessity of daily life. In rural communities, the Internet has broken the chains of rural isolation and dramatically improved the quality of life in areas like shopping. Living in a rural area no longer means long drives (or doing without) to obtain needed items--a couple of clicks online and the products are delivered to your door, or even via broadband, if you don't live near a well-stocked music store, as just one example.

1995 was the year the Internet really took off. Ten years later, we've gone from a tiny number of people who had Internet access back then to 75% of the country--that's the fastest diffusion of a new technology ever. We're on to something here, and I believe it's mostly for the good. We're more aware of world events, better informed on local, national, and international issues, have more control over our time, and have all kinds of new business and work opportunities available to us.

Just one example: despite the sheer awfulness of the tsunami, we all know about it in a way that we never could have even five years ago, to say nothing of ten or twenty years ago. Is the knowing a good thing? Well, charitable giving, propelled by hundreds and thousands of Web sites helping to organize aid, will likely break every fundraising record in the world.

In the face of horrible suffering and pain, the Internet gives us an opportunity to demonstrate our basic humanity and caring for others--an opportunity to rise above our own needs, to rise above political, social, economic, and language differences--and we are doing so.

Happy New Year--all my best for a prosperous and healthy 2005.

Andrew

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Signs of the global marketplace

I just bought an inexpensive audio mixer to help with some recording tasks I have. It is sold by a small German firm. I was struck by the User's Manual, which came with instructions in the following languages:

  • English
  • French
  • Spanish
  • Italian
  • Dutch
  • Finnish
  • Swedish
  • Danish
  • Portugese
  • Greek
  • German

Do the businesspeople and merchants in your area understand the importance of providing multilingual instructions if they are trying to sell internationally? Has your economic development organization identified qualified translators to save each business from having to do so? Have you prepared a handout that walks a business through the steps of preparing a product or service for the global marketplace? How will the businesses in your region compete with market-savvy businesses from other countries? Can they do the job right?

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Walmart backs off RFID technology

Walmart has backed off its mandate that all its suppliers use RFID (Radio Frequency ID tags) by next week (note: NY Times site requires registration). It turns out, among other problems, that the tags don't work very well.

The theory is wonderful--Walmart employees, instead of tediously counting stock or handscanning barcodes, would simply walk down the aisle of a store waving a wand and accurately count what is on the shelf.

In practice, no manufacturer's equipment has been able to provide 100% accurate counts, and Walmart itself says it has never gotten above 60%. As the article states, what's the point of all this if you can't even account for 40% of your inventory?

This is another example of the IT industry making promises it can't deliver, and you have to wonder why Walmart did not do more due diligence before telling suppliers to pony up millions if not billions of dollars in a complete revamp of their own IT systems to accommodate the tags.

As always, be cautious of buying new technology from vendors if you have little or no experience using it, and do not have qualified in house staff to evaluate it. Vendor promises, as Walmart has found out, are not always worth much. Disclaimer: Design Nine provides technology neutral technology advice to our clients.

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WiFi in Texas state parks

Texas continues to be a leader in rolling out public WiFi. Several months ago, the state announced it was going to offer WiFi at highway rest stops. Now it will also offer it in some state parks. The reasons are shrewd--state officials have decided to invest to boost tourism among some very narrowly targeted groups that want more access while out in the parks, with birders and "snowbirds," the winter RV crowd among those mentioned.

The article also has some interesting stats on the deployment of WiFi, the costs, and who is using it.

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Community news and projects:

Merry Christmas and a Happy New Year!

I'll be posting irregularly over the next week and a half. Thanks for all your support over the past year. Traffic and readership on the site has quadrupled since this time last year, and I am deeply grateful that so many of you find this site of value.

All my best,
Andrew Cohill

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