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Subject: February 2003 VMS3.info: Sazaby Analyzed via the Value Framework
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February 1, 2003 *4,400 subscribers* Volume 5, Issue 2
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Business News via the Value Framework™ Lenses
Management Perspective

by Mitchell Levy, Author of the book E-Volve-or-Die.com, Creator of the Value Framework™
Executive Producer, VMS3.info

VMS3.info News



Workforce Management: CRM's Next Killer App?
While highly complex CRM software seems to have lost favor with enterprise executives, nuts-and-bolts CRM applications like workforce management are building steam. "All CTOs in the e-commerce space face the same challenge these days," Priceline.com technology chief Ron Rose said, "and that's how to improve service levels while decreasing costs..."

BLOGS Refine Enterprise Focus
BUILDING ON THE success of Weblogs for personal Web publishing, enterprises are starting to tap into blogs to streamline specific business processes such as intelligence gathering or to augment traditional content-and knowledge-management technologies. Free or low-cost personal tools from pioneering software companies such as UserLand Software, Pyra Labs, Moveable Type, and others have fueled the thriving Weblog personal publishing movement since its emergence in the late 1990s.

Business Process Management: The Next 50 Years
For the past 50 years, computers have been seen as "data machines." This Darwinmag.com excerpt from "The Third Wave" by Howard Smith and Peter Fingar tells how the demands of the new business process management are taking IT in another direction.

Business Apps Get Bad Marks in Usability
ERP apps hard to use, says Forrester

Marketing Messages Missing Mark
74% of survey respondents said the top problem is that ads contain so much information that the message is lost



2002 E-Commerce Spending Skyrocketed
Driven by convenience and efficiency, e-commerce spending most likely topped $74 billion in 2002, a 39 percent jump from 2001, according to Web traffic measurement firm comScore Media Metrix...

IBM, J.P. Morgan in $5 Billion Tech Deal
IBM has signed its biggest technology deal in two years, gaining an early lead in what could be the next big wave in computing. The computer giant and investment bank J.P. Morgan Chase inked a $5 billion contract that will transfer the bank's computing tasks, along with 4,000 employees, to IBM...

For Palm, a Successful Parting
Sometimes divorce is a very good idea, at least in the business world. Palm is a case in point. Ever since it started licensing its software to other companies in the late 1990s, the hardware and software sides of the company have lived in the uncomfortable tension of conflicting goals and strategies...

A New Starring Role for E-Commerce
The U.S. economy was not kind to offline retailers during the 2002 holiday season: They saw the smallest revenue gains in more than 30 years. But e-commerce showed considerable strength in this otherwise dismal period. Is online selling in the midst of a renaissance, and will it emerge with a new starring role as the economy recovers?...



The Supply Chain Gets Sex Appeal
Viewed from a growth perspective, supply chain software has demonstrated as much traction as the recent darling of the enterprise software world, CRM, says Gartner analyst Charles Eschinger. In fact, the supply chain market has outpaced CRM by about 8 percent over the past year, causing many analysts to point to it as the new hot thing...

Analyze Your Spending Analytics
Bayer CropScience AG gets a handle on procurement spending

Seizing the Online Opportunity
While retailers' sales were down overall this holiday season, e-commerce sales shot up 25 percent from last year. Yet, some companies are still not doing enough -- or they are doing the wrong things -- in their attempts to seize the online sales opportunity, says Aberdeen Group research director Kent Allen.

Collaboration: Suspicious Minds
Collaboration among trading partners can unlock great value. Mistrust is the barrier. Here are six ways to build confidence.



Report: Online Consumer Trust Building
In the wake of the holiday shopping crush, The Conference Board has released some significant findings for online retailers. U.S. consumers are more trusting when conducting online transactions than they were a year ago, according to the Board's Consumer Internet Barometer...

E-Commerce's 1.3 Percent Problem
E-commerce has hit the mainstream. The U.S. Census Bureau says spending increased by more than 34 percent from Q3 2001 to Q3 2002. But the Census Bureau also places total e-commerce revenues at just 1.3 percent of all retail sales. If e-commerce has arrived, why does it claim such a small slice of the retail pie?...

AT&T, WorldCom Could Lose Access to Networks
It has been a tough week for AT&T so far. The company has announced plans to slash 3,500 jobs, or 5 percent of its workforce, and take a $1.5 billion charge. Meanwhile, the FCC's expected plan to stop making local phone companies rent their networks to rivals could be a major setback for the company...

Metrics: Clouds in the Forecast
According to the latest ITAA survey, layoffs and dismissals in the IT industry have slowed. However, don't expect much - if any - growth in 2003.

Goldman Sachs: Fear the Penguin
Linux will emerge as the dominant operating system in corporate data centers, according to a new study by Goldman Sachs. IT buyers will use Linux to take advantage of lower-cost, higher-performance Intel-based servers -- and to avoid "premium-priced proprietary systems," such as those based on Unix and RISC processors.

CIOs on the Brink: Holdout Time Is Up
Today's CIOs are performing a balancing act -- ready to help their companies hold the line if the economy stays flat, or to seize the moment if indicators improve. That requires finding ways to serve multiple, seemingly incompatible goals at the same time...



Onyx 2003 Strategy: Expanding Hosted Services
The year 2002 was about solidification of market gains for CRM vendors that were lucky, and just plain survival for those that were not. It was especially rough financially for mid-size CRM vendors, but Onyx CEO Brent Frei sees the past year as a glass half full...

CEO Survey: Fast-Track Firms Chasing Customers
In a new Trendsetter report, PricewaterhouseCoopers says that the vast majority of fast-growth companies -- some 81 percent -- are cultivating their clients by initiating new programs aimed at customer expansion, retention and profitability...

Solo Sales
Scott Rosen fired his entire sales force in an effort to save his company. Was it a smart move? Here Inc 500 CEOs and sales experts share their thoughts on his strategy.

Vive la Difference: Using Hyper-Differentiation Strategies to Build Value and Boost Profits
When some small beer makers in the U.S. brought their drinks to market, they deliberately chose to make their taste as different as possible from the leading brands. This approach helped them build small but profitable niches for their products. Companies in other industries could benefit from pursuing similar strategies, say Wharton professor Eric K. Clemons and colleagues in a new research paper.

Microsoft To Acquire Mountain View-based PlaceWare
Microsoft announced on Tuesday that it has entered into an agreement to acquire Mountain View-based PlaceWare Inc., a privately-held provider of web conferencing services. The financial details of the deal were not released. PlaceWare's services allow businesses to conduct real-time, interactive presentations and meetings over the Internet. "By combining key assets and working in tandem, the two companies aim to provide customers with innovative and easy-to-use online conferencing solutions that will help connect more people seamlessly in a real-time conferencing environment," the companies said in a statement.

Buy - or We Die!
Usually, when small companies get into deep trouble, they cut costs to the bone and plead with bankers for help. But Linux seller MandrakeSoft is no typical startup. Just before Christmas, MandrakeSoft posted a plea for help on its Web site. CEO Francois Bancilhon says his appeal yielded hundreds of thousands of dollars -- but it was not enough...



Executive Guide: Website Traffic Analysis
Need to figure out what went wrong - or what went right - with your site's traffic this past holiday season? Look no further.

Top CIO Issues
Business/IT alignment and leadership remain number one and three respectively as top CIO issues, while value management has replaced human capital management in second place. Although the three leading issues are largely the same globally, significant variances exist across geographies for issues four through six. To learn more, listen to this audio briefing by META Group analysts Jonathan Poe and Dale Kutnick and view the accompanying slides. Included is a listing of essential basic, intermediate and advanced best practices for business/IT alignment.

Kmart Corp. announced plans to shed 30,000 to 35,000 jobs
Kmart Corp. announced plans to shed 30,000 to 35,000 jobs as it closes 326 stores. Chief Executive James Adamson said the company plans to emerge from bankruptcy by April 30, after a year under Chapter 11 protection.

Amazon Posts Profit, Makes Free Shipping Permanent
Bellwether e-tailer Amazon.com booked its second-ever profit in the fourth quarter as shoppers flocked to the site for holiday purchases, helping push revenues to record levels that surpassed analysts' expectations. Amazon said it took in $1.43 billion in the fourth quarter. Net income was $3 million, down from $5 million last year...



Building a CRM Strategy: Start Here
A few years ago, when the economy was jumping and firms had money to burn, CRM emerged as a must-have technology. A lot of companies rolled out CRM projects as fast as possible to keep up with the soaring market and stave off the threat of zealous competitors. But the projects usually failed spectacularly...

Gillette To Test MIT 'Smart Tags'
Gillette announced it will move forward with tests of MIT-developed "smart tag" technology aimed at letting the razor maker track products from the manufacturing line to store shelves. Under a deal with smart-tag maker Alien Technology, Gillette plans to embed tiny microchips in individual product packages in a field test...

HP to Offer AOL Instant Messaging
Palo Alto-based Hewlett-Packard said on Wednesday that it has struck a deal to integrate the business-class instant messaging service of America Online into its own messaging software. Financial terms of the deal were not disclosed. The deal is expected to lead to the increased use of AOL's AIM service within large corporations -- clients
that AOL has been targeting for several months. The business-class version of the service gives companies a greater level of control and security than previous versions. Under the deal, HP can embed the software, known as Enterprise AIM, into its new and existing products.

EBay Launches B2B Marketplace in Challenging Climate
In a foray into the small and mid-size business arena, eBay has formally launched a new section called eBay Business. Among other offerings, the site features several vertical marketplaces for specific industries. But Morningstar.com analyst David Kathman said eBay likely will have a hard time breaking into specialty B2B sales categories...


About the Author:

Mitchell Levy, is President and CEO of ECnow.com (http://ecnow.com), an e-commerce management consulting company helping corporations transition from the industrial age to the Internet age through strategy, marketing, and off-the-shelf and customized on-line and on-ground training. He is the author of the book E-Volve-or-Die.com (http://e-volve-or-die.com), creator of the Value Framework (http://ecnow.com/value/), Executive Producer of VMS3.info (http://VMS3.info), the Founder and Program Consultant of the premier San Jose State E-Commerce Management Certificate Program (http://ecmtraining.com/sjsu), former Chair of comdex.biz at Comdex Fall, and Chairman of the Pay-per-Performance PR Agency Media Attention Now TM (http://ecnow.com/mediaattention), and the CEO Networking organization CEOnetworking (http://ceonetworking.com). Mitchell was at Sun Microsystems for 9 years, the last 4 of which he managed the e-commerce component of Sun's $3.5 billion supply chain. Mitchell is a popular speaker, lecturing on ECM issues throughout the U.S. and around the world.

Read more about Mr. Levy: http://ecnow.com/ml_bio.htm
Public speaking appearances I've given: http://ecnow.com/speaking.htm
Read about ECnow.com's media coverage: http://ecnow.com/media


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