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Newsletter e-business Center PwC&IESE
ICT Impact Analysis on Organizations and Their Surrounding Environment

http://www.ebcenter.org
15-30 September, 2006
ZOOMING IN
The Limit of Risk
Commentary by Jaume Ribera, IESE professor
REPORTS
Spain Needs to be More Competitive
Lack of Communication Between IT Managers and General Management Causes Concern
TREND HUNTER
Online Video Looking to Make Money
Web 2.0 Breathes new Life Into IT job Market
ITEMS OF INTEREST
Challenges of Telecommunications in Catalonia
 
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ZOOMING IN
The Limit of Risk

The world of laptops is so hot it's almost smoking. Dell has recently had to recall 4.1 million batteries. Apple has followed suit, with 1.8 million, and Panasonic with 6,000. In all three cases the recall is due to the danger of fire or explosion. In some cases, batteries have actually exploded or burst into flames. Toshiba, too, has announced a voluntary battery recall affecting 340,000 laptops, though in this case due to a potential charging or discharging issue.
All these batteries were supplied by Sony, which, it seems, sourced them from another supplier. Given the potential problems for users (one laptop exploded as its owner was boarding a plane) and, on a different scale, the damage such quality defects undoubtedly do to manufacturers, it becomes imperative to review quality control procedures and question the policy of serial outsourcing. The challenge is to ensure that product reliability is not undermined by efforts to maintain profit margins by cutting costs to the bone and speeding new model introduction. At least, not to the extent of running risks such as have made headlines recently.

Commentary by Jaume Ribera, IESE professor
Incidents with batteries are always very damaging to a manufacturer's reputation. And occasionally they may have serious consequences for customers. Because the danger was relatively unknown until quite recently, most users are not prepared for it.

Full Story (PDF, 22 Kb)
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REPORTS
Spain Needs to be More Competitive

Title: The Global Competitiveness Report 2006-2007
Source: World Economic Forum (WEF)
Date: 27 September 27, 2006
Abstract: This year, for the first time, Switzerland leads the World Economic Forum's global competitiveness rankings. The Alpine nation stands out among the 125 countries taking part in the survey (177 in 2005) for its excellent infrastructure, high level of technological innovation, and strong corporate R&D investment, among other things. As in previous years, the Nordic countries rank high, with Finland and Sweden holding second and third place. In contrast, the United States drops from first to sixth place. While its business environment remains excellent, the World Economic Forum's experts warn that its competitiveness is threatened by major economic imbalances.
Spain remains in 28th place, the same as last year. According to IESE professor Eduardo Ballarín, who coordinated the Spanish contribution to the report, labor market flexibility is one of the main challenges Spain must address in order to improve its position in this ranking. It also needs to reduce goods market distortions.

Full Story

Lack of Communication Between IT Managers and General Management Causes Concern

Title: IT Managers Survey
Source: Intel and Coleman Parkes
Date: September 2006
Abstract: During April and May this year, at Intel's request, Coleman Parkes Research conducted a survey of IT managers in nine European countries, including Spain. The sample was restricted to companies with at least 500 employees. The main conclusion is that “there are challenges to be overcome” in communication between IT managers and general management. Also, 68% of the 900 respondents said that aligning IT objectives with business objectives is their biggest challenge. In a finding that seriously questions IT efficiency, 85% of IT managers claimed to have no reliable model for calculating and communicating to top management the total cost of new IT resources.
On the security front, 74% of respondents said their main concern is maintaining security, while 66% believe that the biggest threat comes from the company's own employees.
Overall, Spanish IT managers have the same concerns as their European colleagues, though they give priority to integration problems in IT systems.

Full Story (PDF, 26 Kb)  (In Spanish)

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TREND HUNTER
Online Video Looking to Make Money

The runaway success of YouTube, with nearly 20 million unique users per month, has ignited interest in video downloads. Suddenly, everyone wants to be in the online video distribution business. One example is the iTunes store, which has started to offer a video service, initially in the United States, in collaboration with Disney. Others include Amazon.com's Unbox and MTV Networks, which has reached an agreement with Google to distribute ad-supported video programming through Adsense, Google's advertising network.
It remains to be seen which business model prevails. For the time being, however, some players are relying on advertising as their main source of revenue. One such is NBC Universal, with its more than 200 affiliated television stations. NBC has announced a new, on-demand video web site, National BroadBand Company (NBBC). However, IDC experts warns that the insertion of advertising clips may turn users off and in the long run lead to fewer visits. 

Articles in Financial Times (payment service), Wharton and The Economist (payment service)
News in BusinessWeek

Web 2.0 Breathes new Life Into IT job Market

Ever heard of interface hackers or PHP Ninjas?  These curious job titles refer to programmers who are quick and agile, which is the type of applicants Web 2.0 employers are looking for.
In the United States, according to a joint survey by Forrester Research and the Information Technology Association of America, the rapid growth of Web 2.0 has created 40,000 new jobs. As one online branding expert put it, Web 2.0 employees have to speak two languages: programming and marketing.

News in FastCompany
Report in Forrester

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ITEMS OF INTEREST
Challenges of Telecommunications in Catalonia

On October 23, the Public-Private Sector Research Center (SP-SP) at IESE will hold a colloquium, in Barcelona, entitled “La política de las telecomunicaciones en Cataluña: Retos en las infraestructuras y la gestión del servicio” ("Telecommunications policy in Catalonia: challenges in infrastructure and service management"). The following guests will attend: Reinaldo Rodríguez, chairman of the Telecommunications Market Commission (CMT), and Marta Continente, Secretary for Telecommunications and the Information Society of the Catalan government.

More information (In Spanish)

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