Archive for May, 2003

The Nature of Change

Friday, May 30th, 2003

By Dean Whittaker

We all have to choose how we react to the tsunami of changes taking place in our lives.  Not only are we facing significant changes, but we are experiencing them at increasing velocities.  Plus, we create them! As economic development practitioners, we play roles as change agents all the time. That’s why it’s vital for us to understand the nature and role of change.

Pete’s article last month discussed the changes we are undergoing as we transition from the “old economy” to the “new economy.” He mentioned how the factors of production have changed from land, labor and capital to knowledge, communication, and innovation.  The consequences of these changes are playing themselves out in our work.

So, what is the nature of change and how does it come about?  All change is relative in that all change is related to a previous event, condition or position. With change comes opportunity or threat, depending on how we choose to react. Without change, we may become as extinct as the dinosaurs that failed to adapt to sudden changes in the environment.

As our ability to communicate has increased, the rate of change has accelerated. Technology has enabled us to communicate more effectively with a larger audience more frequently, increasing the spread and speed of new ideas and innovation.

Change has always been with us. It is the rate of change that has changed. How we adapt and adjust to these changes will determine our success or failure.

Our company is based upon change.  The changes taking place within industries and companies allow us to predict behavior. Changes in leader or ownership have a direct effect on the allocation of resources to support strategic directions. By monitoring these and other changes we can predict which firms are most likely to relocate or expand with a great deal of accuracy.

How are you adapting to the changes taking place around you? Do you see them as opportunities or threats?   Is your cup half full or half empty?  Or as one of our clients said recently, “at least we still have a cup!”

Junk E-Mail or SPAM (and no, we’re not talking about meat in a can)

Friday, May 30th, 2003

By Jeff Vedders

Your in-box is flooded with the latest offers of unbelievable mortgage deals and fantastic weight-loss products.  It seems harmless– just hit the delete key if you’re not interested.  You throw junk mail away at home, right? 

Many people equate spam with junk mail, but there are a few important differences.  You do not pay for junk mail delivered to your house; rather, direct marketers pay for the postage and materials.  However, you, the recipient, pay for spam.  You pay for online Internet access.  In fact, $1 to $2 of your monthly fee is used by Internet service providers (ISP) to fight spam.  Another difference is that junk mail will not prevent delivery of regular mail, but spam can prevent you from getting legitimate e-mail.  The sheer number of spam e-mails can fill up your mail box and even crash mail servers. 

Why is there so much spam?  Since spam is so inexpensive to send, spammers buy large lists of email addresses and send to everyone.  Because there are more costs involved in sending out materials through the postal service, marketers are forced to target their messages to a specific audience.  Not so with spammers.  Why would they spend the time targeting their message when it costs the same to send spam to everyone on the list?

Spam is becoming a huge issue, and it may even threaten our use of email within the next year or two. It was even the topic of a recent Federal Trade Commission conference.  Courtesy of the online edition of the Wall Street Journal, here are some startling statistics on spam:

  •  As of April 30, 2003, America Online blocks 2.3 billion spam emails daily.
  • According to market-research firm Ferris Research, U.S. corporations spend $9 billion annually to fight spam.
  • BrightMail, a spam-blocking company, reports that 41 percent of the 40 billion messages analyzed each month qualify as spam.
  • According to eMarketer, 76 billion spam e-mails will be delivered in 2003.

So, what can you do to prevent getting spam? 

  •  This sounds contradictory, but one of the main things you should never do is reply to a commercial email you receive and ask to be taken off their list.  This just confirms your email address as valid, and it is likely to be sold again and again.
  • Two of the biggest culprits are message boards and chat rooms.  If you sign up for these services or post messages, make sure you don’t use your regular email address.  You may want to create a new email address just for these purposes.
  • Try to limit the number of times your email is listed in public.
  • Be very careful when giving out your email address.  Make sure you read the small print when it comes to privacy statements.
  • Don’t buy anything that is advertised in spam.  This just legitimizes spam.  If you feel the need to buy a product you see advertised, don’t respond via the message.  Instead go directly to the company’s web site.
  • Try to avoid common user names like jdoe.  You may want to create a unique name like jde24ty7.  This will help prevent dictionary spamming where a spammer sends email to different spellings of the same name, i.e. jdoe, sdoe, mdoe, etc.
  • You may want to create a username with a letter later in the alphabet.  Many of the lists that are sold are sorted in alphabetical order, and the spammer may be stopped before it gets to the letter r.
  • Contact your ISP and report the spammer.

Unfortunately, you will never be able to prevent all spam from getting through.  There are several third-party spam-prevention software products available that will work with your email program.  Some are better than others.  You may also want to contact your ISP.  They may offer spam-blocking services as part of your account.

Trends for 2003 and Beyond

Friday, May 30th, 2003

By Leigh Howe 

Which trends will be influencing our lives, our communities, and our businesses in the coming years?

Boom, Baby, Boom.  Nothing new here.  We’ve all heard about the changes that are coming as the Baby Boomers age, and the first Baby Boomers turned 55 in 2001.  Soon, the 55- to 64-year old age group will grow to 38 million people– the highest growth rate of any 10-year age group.  The group’s household income and spending will also rapidly increase.  This is all good news for full-service restaurants, the travel industry, builders of second homes, and the health and fitness industry.

The Changing Workforce.  According to the 2000 Census, more than half of all workers are employed in management, professional work, sales, or other office-based jobs.  The available jobs of the future will also require more intellectual than physical skills.  Also, workers continue to pursue education opportunities even after getting established in their careers.  You don’t have to be young to go to school now! 

The Better Half?  Women continue to become a force in business. Women’s thinking is influencing how businesses operate, shifting them away from a hierarchical model to a more relational one.  The number of women pursuing higher education continues to outpace the number of men.  According to the National Center for Education Statistics (NCES), 37.2% of women between the ages of 18 and 24 were in college in 2002, compared to 30.7% of men.  Also, women own 8 million businesses in the U.S., nearly 1/3 of all firms.  This figure has risen 78% since 1987.

Rising Hispanic Influences.  Hispanics constitute the largest minority group in the U.S. with 35 million people.  This number is expected to increase 35% in this decade, with the majority of the immigrants coming from Latin America.  The Hispanic population is young and households are large.  This will translate into more money spent on food, clothing, and other items for families.

Widening Geographic Differences.  This trend contains two components: the increasing differences between cities, suburbs, and rural areas, and the growth of regional consumer markets.  Half of all Americans now live in suburbia and this population will continue to grow the fastest.  The other half breaks down to 30% in central cities and 20% in rural areas.  Rural area will see the slowest growth.  Also, the gaps in the demographics of regions continue to widen from median age to average income levels to ethnic makeup. For example, the median age in New England is 37 versus 33 in Texas, and on top of that the non-Hispanic white population in New England is 84% of the total population versus 54% percent on the west coast (American Demographics Magazine).  These trends will lead to more distinctive population regions, so local marketing will gain importance over generalized national marketing efforts.

Additional trends to watch might include mass customization of products and services, increased focus on germs and spreading diseases, a revival of the family, and the growing pursuit of the “simple” life.  If you want to read more about predictions of trends and what they might mean for the future, visit the following websites:

º    www.demographics.com (American Demographics)

º    www.faithpopcorn.com (Faith Popcorn)