The “relativity theory” in relation to benchmarking

The central idea behind the relativity theory (Vision of Galileo Galilei) is that the laws of mechanics and physics in general, are not allowed to be dependent on the speed of the observer in relationship to other observers. But what if we could give one of these observers a method that he or she could look forward in time to benchmark / scale this dependency ? This theory, method and my thoughts i put in relation towards the topic “Benchmarking”.

I think of a method from where an organization will not be observed by two or more observers with the same speed or historical knowledge, but a person who is able to look forward to see which dependencies are occurring in the future.

Today, within the field of traditional benchmarking there are a lot of organizations and people who perform benchmarks and base their research on historical data. I prefer to use a method that’s not only looking to the dimension market value in relation to competition, but also places this into the dimension time. What you will get is a 3D model where an organization is positioned together with its peers in relation to the dimension time and follows a natural path into the future (coming 5 years).

With this method you will be able to get a viewpoint of performance in the current time and the future. Combine this knowledge to develop a strategy to get besides, pass or stay in front of the competitors.

How could this method work ?

You will need a person or company which can make these future dependencies and developments visible, by using knowledge and experience of: innovative solutions, market developments, trends, macro and micro economics, laws, political influences and sector knowledge.

This knowledge gives you the possibility to take strategic decisions based on the knowledge of tomorrow. Is it really so strange to think about your market portfolio for the upcoming 5 years and how much the market is willing to pay for that item or service ?

Today a lot of organizations are still learning from their historical experience and take sometimes a look into the kitchen of the competition with a benchmark study.

The knowledge which is used to write these benchmark reports is already dated the moment that the report is being written as the competition is not on hold! These reports are always based on historical facts and figures. What you need is a company having people with the right knowledge in your area of business in combination with this method, showing you where the competition is at within 2 to 5 years. Then you will be able to create or adjust your management strategy in a way that you will not follow, stay in line or lack behind the competition but bypass them in time.

Living in the cloud

Today many people in the world use a free email account. This service is provided from a so called “cloud” service.  Other free services in the cloud are search engines, agenda, document management, crm tools, social media, video communication platforms, backup / file storage, music and photo management. Examples of these services: ICloud, Soundcloud, Googledocs, Gmail,Hotmail,Facebook,Linkedin,Skype,etc.

There are also paid cloud services which purpose is mostly to serve and attract (business) clients who want to pay a premium to get: security, reliability (uptimes like 99,9%) and commercial banner free work environments. Examples of these services: Windows Azure, Office 365, Microsoft Dynamics CRM Online, Spotify, Googleapps, etc.

Why use Cloud services ?

Pros 
1 Have your service anywhere, anytime, device,browser and platform independent.
2 Scalability
3 Different payment options possible (Pay for usage, Pay per day, Pay for license, Pay for data storage, pay for internet traffic usage )
4 No supplier / service provider lock-in
5 Maintenance is done globally and everyone can profit immediately from any updates.

Cons
1 Availability guarantees are only nice when you can proof that´s it’s not related to your internet connection.
2 Interfacing between different cloud services is still in the startup phase.
3 Your data will not stay in one country, but will be probably hosted from multiple low cost country locations.
4 Data migration from your current systems into the cloud services can be challenging.
5 Privacy and security risks, due to the data storage in multiple countries from where some of them could be influenced by political, economical situations.

Future of cloud services
Here are some statements from several suppliers and benchmark firms:

• By 2013, 40% of small and medium firms will use cloud services. (Microsoft)
• By 2015, 50% of “Integration as a Service” (IaaS) will be consumed as an embedded feature of other IT offerings. (Gartner)
• More focus on Integration platform as a service” (iPaaS), an evolved form of integration as a service (IaaS) that delivers a hybrid combination of integration, governance, security and other interoperability capabilities delivered in the Cloud to link applications, SOA services and Cloud services. (Gartner)
• The war between Google Apps vs Apple’s Icloud will be linked to their mobile devices.
•  New business models will need to be developed as technology firms are offering free cloud services financed by their device sales.
• Desktop as a service (DAAS) is a future service that may shake up the outsourcing business completely. (CITRIX)
• In 2015, public cloud services will account for 46 percent of net new growth in overall IT spending in five key product categories – applications, application development and deployment, systems infrastructure software, basic storage, and servers (IDC)
• In 2015 Software-oriented cloud services (SaaS) will account for roughly three quarters of all spending on public cloud IT services throughout the forecast. This includes all three software-oriented cloud categories, not just applications. Spending on hardware-oriented cloud services (servers and storage) will be largely driven by SaaS providers building out their infrastructure. (IDC)
• Database a a service (DAAS) will be a mature service in 2013.

Now what?

The future of cloud services for consumers and business users is looking very bright. Almost all of the current business IT services will be in the cloud by 2015. Consumers who use mobile devices will all be working with cloud services by 2012. Big savings can be expected by early adaptors who are willing to take the cons and risks involved. This is where the highest hurdle stand and needs to be taken: data protection for large firms. Currently there are not many cloud service providers who offer a semi-private cloud service that is hosted from a location which the client demands. When the first top 500 company will take this cloud hurdle the sky will become free of clouds and a clear sky with many business opportunities opens up for innovative companies.

Social media, smartphones and the impact on your social life.

Do you recognize the situation that your blackberry light is blinking and you are curious who send you an email, tweet, facebook update, linkedin message or any other form of digital communication?

Do you have more then 100 digital friendships ? or more then 500 business network connections? Then you are on daily basis probably quite busy posting or anwsering your digital life.

Looking to the young generation which is currently between the age of 14 and 21 they must have more then 400 friends on multiple platforms otherwise they have the feeling they don´t exist. They are busy anwsering or posting digital messages by the minute. 

Sometimes i also feel beeing in the same situation, but i still know how it was 15 years ago when you only had email, msn and a phone which was used for calling instead of carrying around a full computer. So sometimes i can put my smartphones (business and private) aside and enjoy life without any digital interruptions.

I am wondering what the reactions will be of our younger generation when you cut off their digital life line…. maybe you already know the anwser…

When browsing through your personal profile sites (Facebook, etc.) are you also sometimes wondering who are your true friends with who you really want to share personal information and pictures? Probably when you make a rough selection you would be left with some family members and a handfull of friends.

Almost the same question you can ask yourself for the professional network platforms (Linkedin, Xing, etc). Who are the people i really know, want to work with or could deliver me business opportunities? This is a more difficult question, cause by having a large network, there is a greater chance for exposure and people who could notice your posting may help you. But this assumption is purely based on theoretical statistics. To be honest, probably only the people who really know you by heart will help you and then you could also filter this list down. But as we all like recognition and a chance to expose ourselves to as many people as possible (is this not called power hungry?) we are busy expanding our business networks.

If this is the case in our professional life than how are we different from our children who are searching to find recognition with their digital friends? Probably its the best for us to not shut down our digital life line…..

The underground war between Android and Apple users

If you have an Android phone or tablet, probably you have noticed that Apple users are talking very proud about how their devices are better. User friendliness, smoothness of operation,  plenty of quality apps and that they were the first in line with a tablet and smart phone that worked. Android users go into defense saying that they have an Open system,  multitasking and can use Flash.

Both Android and Apple users think they are right, so sometimes it looks like a religious war.

Apple users are quite open regarding the virus which catches them when they buy their first Apple product.

Sentences like: “once you go mac, you never go back” are so true.

Looking to the followers both brands have we see that Android comes from within the Linux scene.

Apple followers come from the media, fashion and advertisement industry.

Windows users are the rest of the world.
There is even a research from the Duke university which states that Brand Loyalty is an Expression of Self-Worth, Just Like Religion. Brand expert Martin Lindstrom went even further and conducted a 3 year, 7 million dollar study to compare brain scans of the religious to those with high brand loyalty.

The outcome ? Apple is a religion, we can state today that also Android followers can be put into that category.

I like to follow news around technology and adapt to the best products suitable for my needs. I cannot help it that Apple is most of the time the first one who dares to enter new markets with new innovative products. Both Windows and Android are in those cases copy cats / followers who wait to see if there is a success and then enter that business once the hype cycle is more stable. The effect is that these brands predict that they come up with a better and faster solution, but at that moment their product line is already mainstream Apple already harvested their fruits.

Why is Apple such a big success ? Because they are the company who alway’s come up with new innovative products and solutions. They are also the company who kill technology easily. (Flash, Mouse Buttons, Harddisks, DVD Install disks)

This war is in my opinion useless as both parties have different needs and interests. Early adapters will stay with the innovative Apple products and solutions, the technology followers will stay with Android and the rest of the world has to digest Windows.

The history and future of digital wealth in western civilizations

Back in the 60′s when family values were very important and people were happy with just one b&w television. Gaming is done with the whole family on board games.

The family has one fixed house phone. People have usually one or two radio’s.

The 70′s and 80′s were the times that the first (home) computers came into family life.

The first color television find their places within homes.

Children learn to play with digital games. Many people owned complete stereo sets with cassettes.

The 90′s is the time when people got two or more color televisions, father is still happy with one computer connected through a modem to BBS services and later the internet. Kids have nintendo’s and home computers. And the family owns one or two walkmans.

People have one house phone and father has a mobile. People start collecting VHS tapes for their movies. The collection of music on cassettes is slowly being replaced by cd’s.

Millenium, Here things really speed up! Houses have multiple tv’s, mobile phones are getting mainstream, console gaming is becoming standard. A family has an average of two computers connected to the internet. The first broadband internet facilities are getting mainstream within houses. People have thrown away all of their VHS tapes and replaced them with DVD’s.

Every one has a complete CD music collection. People have home cinema sets to experience movies like in the cinema.

2010, Every family has multiple computers, for every family member a lcd / led television, kids have their own portable game device as well as one or two game console’s, houses have gigabit network in all rooms, the whole house is wireless connected. Most family members have mobile phones and even cars have complete entertainment systems. Many family members have portable music devices. People start to replace their DVD collection to Blue ray 3d movies. Their televisions are 3d capable and their home cinema sets are more powerfull then what movie theatres had in the 80′s.

The future ? People are always connected to the internet (by implant, VR + neural network technology or other forms). Virtual lifes run parallel to the real life.

Entertainment is experienced through the internet (Movies, TV, Radio, Streaming Music, Communication). All devices are wireless and everything is connected.

As we can see the technology push of the last 20 years was enourmous. The final question is, does all these devices make us more happy and give long term satisfaction ? If you ask that to a kid nowadays they will say yes, but once they have grown up and remember the early times they may have a different answer.

‎10 reasons to justify the investment in an Ipad

1. The way you read newspapers and magazines from a piece of paper will soon transform into a digital device, you better get used to it soon!

2. You still carry around all of your notes, research papers, project documents in your consultant dog ? You can be saved from a hernia!

3. Your wife is complaining about your “unorganized” library and how dusty it gets there?

4. Your kids tease you that you don’t know s%^t about the digital age. Catch up with them and show them a lesson!

5. You still write notes by hand and digitalize them later ? Save time, energy or a personal assistant!

6. You tired of bringing those heavy photo books and your complete video gear to your “old folks” in order to let them enjoy your nice holiday pictures ?

7. You getting tired of long rides with you nagging kids that they are bored with their psp’s, nintendo’s, portable dvd players or (comic) books ?

8. You don’t like internet surfing on a small smartphone screen.

9. Your netbook doesn’t bring you satisfaction.

10. You want the coolest gadget of 2010 ?

You have some more reasons ? Please share them.

Quality of life Benchmark

What is quality of life ? Quality of life is for every person experienced in a different way. This experience heavily depends on the childhood experience, family background, the society, selection of friends, job, choice of education, location and yearly family income.

For one person it can be having a goal working hard till the pension age to build up a great house, having a nice car, a partner and a family and then start enjoying life without having to work again. Another person can be happy with a daily job until he or she gets enough money to buy food and then relax the rest of the day.

How do we measure the quality of life ? Measuring the quality of life can be done by looking to the things that make a person happy in life. For most people who were raised in a civilized economic society, this is measured by having: a good basic living which includes a house, a car, a job, a partner and the ability to go on holidays.

What i want to show you is how the quality of life can differ of an average family (Western standards) within different parts of the world. In the examples below i took a standard working couple, with an average household expenditure. (based on Western standards or the amount of money which is normally spend in Western societies for a living) As countries offer different standards relating to the quality of life they can supply , i will show the difference by comparing US, Europe and Asia.

Assumptions:
Household year income: € 60.000,00 (Married couple both working)
No kids Max mortgage (a secure 4.5 times household year income): € 270.000,00
Car cost + financing / year (15% of year income): € 9.000,00

US way of living:

Average income tax scale: 22,00%, almost $5000 household budget / month after tax.
House price: $250.000,00
House cost / month (incl. all cost): $2.000,00
House specs: Free house, 4br, 2ba, 1-1/2ba, 2 airco, 2 car garage, grand kitchen
Total house space: 3429 ft² = 318m²
Land size (incl. house): 4500 ft² = 418m²

Car: GMC Yukon (Medium add ons)
Car price: $45.000,00
Health insurance per person / year: $9.600,00

Cost per kid (till 18, univ. educ, no car): $500.000,00 (OUCH that hurts !)

European way of living  (Netherlands):

Average income tax scale: 40,00%, almost €3000 household budget / month after tax.
House price: € 230.000,00
House cost / month (incl. all cost): € 1.800,00
House specs: Adjacent house, 3br, 1ba, no airco, no garage, small kitchen
Total house space: 1291 ft² = 120m²
Land size (incl. house): 1600 ft² = 148m²

Car: Volkswagen Passat Wagon (Medium add ons)
Car price: € 35.000,00
Health insurance per person / year: € 1.500,00

Cost per kid (till 18, univ. educ, no car): € 200.000,00

Asian way of living (Indonesia):

Average income tax scale: 5%, €4750 household budget / month after tax.
House price: 2,7 billion IDR = € 232149
House cost / month (incl. all cost):€2.200
House specs: Free house, 6br, 4ba, room helper: 2, 6 airco, 6 car garage, 2 kitchen
Total house space: 7500 ft² = 706m²
Land size (incl. house): 6500 ft²=603m²

Car: Audi A3 (Basic)
Car price: 490,000,000.00 IDR = €42114
Health insurance per person / year: €6.000

Cost per kid (till 18, abroad univ. educ, no car): € 400.000,00

Conclusion:

As i took the European salary, lifestyle standards and household expenditure as the basis for my examples, the Asian living style is not the way an average Asian family would live. We can state that there is a big difference in living conditions throughout the world and the value of what you can get for your money.

In the US due to the low income tax, low house price and the low taxation of cars you get a lot of bang for your bucks. But if you get jobless and have to pay your health insurance yourself you will be bankrupt in less then a year. Having children and let them have a good education is crazy expensive.

Europe (the Netherlands in this example) has a very high income taxation, high house prices for small living space and very high car taxes. But this country compensates with very low priced and subsidized healthcare and education.

Asia (Indonesia in this example) has the lowest income tax, the lowest house prices for large spaces, but has the highest car prices and taxation (if you look for western cars, asian car brands offer cheaper models). Healthcare and insurance is badly arranged and will cost you a lot even if you have a job, cause healthcare is privatized. But you get affordable servants for all your daily household jobs and child support, so you can focus on work and fun. Having children here is very easy as you will have enough servants who will help them till they will leave the house. But the school system quality is not so good and not subsidized, so you will have to pay for abroad education.

As you can see the living conditions with western household expenditure varies in different parts of the world. As every person has different wishes regarding the view against the quality of life, one can decide in which country he would fit best in a particular time of his life.

Effective role modelling in business.

Stop, look around in the company where you work, to see if you can identify one or more people who you consider to be a role model.

What’s a role model ? Good question, well it can be a person from which you want to learn certain capabilities or knowledge relating to the field of business your in. It can be a person in a certain position, where you have you goal set for your career. Or a person which life experience grabs you.

Generally speaking, it’s a person who has a job, position, skills, knowledge or life experience which can be used by you for your personal development.

If you didn’t identify any role models within your line of work, then maybe it’s time to move one, cause you will probably not learn much in the upcoming years or reach a higher position.

In some companies they try to pro actively solve this role model identification and personal development problem by adding a mentor or career counselor next to your manager. This person can support you with many business related questions and is by company standards considered a role model for your position.

But as many people differ from their background, interests and life experience, these mentoring processes from a role model perspective have barely the effect companies want.

My suggestion is to implement a system, where the employee has to select at least two people who are considered a role model and specify the knowledge, skills or life experience they want to learn. This can be a continuing process, as by every half a year people can choose a different set of people, as life goals change. If this role model information is becoming transparent within companies, the HR, personal development and mentoring process can be much more effective.

But then again, if there are employees which don’t find any person who they lookup to, it’s probably best to move on, cause in the end the person and company will not reach their goals.