Exploring the impact of broadband and technology on our lives, our businesses, and our communities.
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.
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.
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
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:
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?
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.
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.
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
Ellen Goodman, in her syndicated column, writes that some restaurants are installing phone booths so that customers who want to talk on a cellphone have a place to go and do so without disturbing everyone else. A nice idea, and a neat compromise between those who feel they can't even get through a meal without answering the phone and those that feel they can.
Public phone booths in some cities are being hooked up with DSL lines by the phone company and are being turned into WiFi hot spots. Another neat idea, and a sensible one for the phone company, which already has the phone line to the booth that is needed to provide the Internet access.
Esme Vos at MuniWireless thinks that the real reason behind Verizon's fevered opposition of community wireless in Philadelphia is that Verizon is terrified of cheap VoIP over WiFi.
I'm inclined to agree. I've been saying for a while that the whole cellular marketplace is in deep trouble. The cellular companies are frantically trying to lash overpriced and relatively low bandwidth (a few hundred kilobits) data services onto a system never designed to deliver data (just like they are frantically trying to squeeze more data onto legacy copper systems). Meanwhile, WiFi already delivers megabit data services effortlessly, and VoIP works pretty well in a well-designed WiFi network.
Why would you settle for inadequate and expensive cellular if cheap WiFi services are available throughout your area?
Like the problem that the cable and phone companies face with their outdated copper systems, the cellular companies face the same discontinuity with cellular--how do make the jump (i.e. copper to fiber, cellular to WiFi) without losing your customer base and your investments in the old system?
A company that understands competition and has a corporate culture of competition would figure that problem out and be determined to compete. But the phone companies have decided that rather than reform their own outdated corporate culture, they'll simply make it illegal for communities to chart their own future.
What's the root problem here? It's lawmakers who are not adequately informed about the community and economic development issues at stake. Which is why I've always said broadband is not a technology issue, it's an education issue. Communities and regions need to make sure their elected leaders are educated on these issues.
Want to get started? It's easy. Organize a local "Take a lawmaker to lunch" program and have a rotating group of folks who are well-versed with the issues take lawmakers to lunch once a month. In a year, I guarantee you will have had a significant impact.
Sun Rocket, a Voice over IP company, has the VoIP universe abuzz with their ambitious business plans to expand from 3 to 50 metropolitan markets in 2005, and the company says they intend to be a player in 300 metro markets in the United States. Particularly interesting is their flat rate annual fee--for $199 a year ($16.58 a month), you get flat rate, unlimited, nationwide calling.
If you ever wanted a reason to justify some modest community investments in broadband infrastructure, how about cutting the average phone bill from somewhere well above $50/month (local, long distance, taxes) to about $17/month.
Do the math. How much capital would that unleash in your community and region to spend on other things, like business expansion, more goods and services from local companies, and new jobs?
And if you decide to sit back and let the cable company and phone company re-monopolize broadband in your community, how long do you think they will play fair and let competitors offer services like this over their infrastructure? A community-managed, broadband transport infrastructure keeps the playing field level and fair and gives businesses and residential service users real choice.
If you hate waiting in line at the Post Office to mail packages, don't. The U.S. Postal Service has online label and postage services that are just terrific. Now that I have an account with my credit card information saved, it takes about a minute to print out a bar coded shipping label complete with postage. If you get it done early enough in the day, put a sticky note on your mailbox and the postman will come right to your door to pick up the packages. Or if you are running late (as I am today with Christmas gifts), you can walk right in the post office, drop them off, and walk out. It's a wonderful benefit of having broadband, and the Postal Service is to be applauded for offering the service.
Incidentally, it's a boon for small business as well. The Web application has an address book to store frequently-used addresses, so for small to medium-sized boxes, this Web app can be your shipping department. Note to economic developers: do all the small businesses in your region know about this service and know how to use it?