Archive for February, 2008

The Innovation Economy

Thursday, February 28th, 2008

By Dean Whittaker

Daniel Pink, in his book A Whole New Mind, states that we have entered the “Conception Age” in which ideas become the currency of the realm. Innovation has become an economic driver in this new economic age. Intellectual property is a bi-product of this focus on the application of knowledge.

InnovationWorks (www.innovationworkswestmichigan.com) is a  new program funded by a WIRED (Workforce Innovation in Regional Economic Development) grant in West Michigan designed to connect ideas with companies that are interested in commercializing them.  As it says on its website, “Ideas that work are inventions, but they’re not innovations until they’ve been successfully commercialized.”  The purpose of InnovationWorks is to accelerate the business of invention as an economic development strategy.

InnovationWorks provides three basic functions: 1. mine for intellectual property through the Idea Portal; 2. connect with others through Collaborative Networks; and 3. get coaching from experts through Training and Events.

This bold experiment to stimulate the creation of jobs through innovation (the application and commercialization of ideas) is one to watch closely. This prototype model will likely spread to the rest of the country if successful. At the moment, the staff has been overwhelmed with the initial response; their current challenge is to respond to the large number of initial inquires.

Building Relationships: People

Thursday, February 28th, 2008

By Todd Smithee

Over the last several months we reviewed a number of keys to developing long-term, profitable relationships.  We discussed the importance of having well-defined processes for maintaining regular communications with potential customers.  We also reviewed the importance of utilizing technology to organize and manage communications with your prospects.  The next key is content.  What do we say to our prospects now that we have a well-organized method of communication? As you have probably heard, relevant content is king.  Regular communication that delivers irrelevant content will not help your cause.  In fact, it will likely make you appear out of touch with your prospect, increasing the chance that they will delete your email without reading it or let your call ring to voice mail.  To address this issue, you need to identify what is important to your potential client.  You can do this by letting them to “opt-in” to future communications, allowing the prospect to tell you what information they find desirable, through a web form or by asking them during your next call.  You can also review their industry and trade associations for relevant topics.

Once you have gone through these steps you will have the ability to deliver useful information to your potential clients, increasing your “top of mind” awareness and the likelihood that they will call you the next time they could use your products or services.

Travel Tools

Thursday, February 28th, 2008

By Joel Burgess

About this time of year around my neck of the woods in West Michigan, many are looking for adventures. So, I thought I’d share a few travel tools I’ve come across that may be beneficial, no matter where you call home. As mentioned in a previous newsletter, a great place to start is www.bookingbuddy.com. Bookingbuddy.com allows you to search and compare many travel websites from one location.

The Top 25 Travel Websites by category according to CNN are:

Getting There
Sidestep.com – Booking flights (overall)
Flycheapo.com – Researching low-fare carriers in Europe
Farecompare.com – Locating the best international airfares
Farecast.com – Knowing when to book a flight

Getting Ideas
Kayak.com – Booking hotels (Overall)
Lastminutetravel.com – Finding last minute deals on luxury hotels
Menupages.com – Previewing menus in the U.S.
Seatguru.com – Snagging a perfect seat
Chowhound.com – Dishing with “global foodies”
Homeandabroad.com – Customizing an itinerary
Cruisecritic.com – Planning a cruise

Getting Around
Hopstop.com – Mapping routes on U.S. public transportation
Viamichelin.com – Driving directions in Europe
Maps.google.com – Creating comprehensive maps worldwide

The Basics
Xe.com – Converting currency
Weather.com – Finding reliable weather forecasts
Tripprep.com – Learning about safety abroad

8 Others to Watch
Vayama.com – Prices from all international flights originating in the U.S. (including those of low-fare carriers)
Yapta.com –Airfares tracking, e-mail updates on price drops, and information about loopholes for refunds
Travelistic.com – Compilation of on-the-ground travel videos from real people around the world
Meethalfway.com – U.K.-based site, with a soon-to-launch U.S. version, helping you find a geographic compromise for travel
Seriouseats.com – Compilation of all the juiciest global food news and opinions (by: New York Times writer Ed Levine)
Airtreks.com – Planning guide for complicated, multi-leg itineraries
Dontforgetyourtoothbrush.com – Create your own handy before-you-leave checklists
TheBathroomdiaries.com – A seemingly silly, surprisingly useful resource reviewing 12,000 public bathrooms in 120 countries

Source: www.cnn.com from http://www.travelandleisure.com
By Xander Kaplan, Nina Willdorf, Tanvi Chheda, Jessica Shaw and Jennifer Welbel

Core Competencies: A Business’ Survival Kit

Thursday, February 28th, 2008

By Jami Miedema

As I drove down the main street in a nearby town, I noticed more vacant storefronts than the last time I was passing through.  Maybe, the owners selected bad locations to set up their stores? Or, perhaps, I’m witnessing the tangible consequences of the downturn in the economy.  When the conditions don’t seem to let up, how can businesses survive?

Companies’ core competencies help them stay afloat and have long-term success in the face of competition and economic struggles.  If a business has resources and skills to efficiently use those resources, it is already positioning itself for success.  Next, a firm needs to analyze which capabilities can be used to create value for their customers.  Will buyers compensate the business for them?  Can profits be earned by taking advantage of the capabilities?  Will competitors find it difficult to duplicate them?  If the answer is yes, the business needs to focus on these core competencies.

Many times, companies try to do too much.  They expand into new markets, introduce new products, and offer new services, but tend to do all of these things only marginally.  They lose sight of their key strengths and instead operate a mediocre business with little or no differentiation from its rivals.  If a company can exploit its core competencies and evaluate when and how they can be modernized to respond to external changes, it will surely maintain a competitive advantage in the marketplace both now and in the future.

The Joy of Tea

Thursday, February 28th, 2008

By Maria O’Connell

I have recently assumed the habit of tea-drinking.  When I caught a terrible cold in the heart of flu season this winter, I needed something warm to soothe my aching throat and coffee was not appealing.  Therefore, I raided my friend’s tea cabinet, and much to my surprise, had my first satisfying experience with tea.

Since then, I have been drinking tea (in addition to my coffee). And just this week, I had the thrilling privilege of ordering my first glass of tea in a public venue – a local coffee shop. During my college career, I spent many hours in the comfort of a café sipping coffee and working through my homework. Yet I never once ordered a glass of gourmet tea. Ordering tea was an entirely new experience. In my tea ignorance, ordering tea proved to be quite a challenging endeavor.

Standing in line at JP’s, scanning the exhaustive list of teas that the barista handed to me and feeling overwhelmed by the options, I learned a fascinating fact. Reading through my tea list did not deter me from eavesdropping on the woman in front of me in line. She too was ordering a glass of tea. Hoping to pick up some tips, I not only hung on every word between the barista and the woman, but carefully noted each movement that she made. Pretending to be quite distracted by my list of herbals, greens, and blacks, I quickly made mental notes to help me in my big debut. The woman made deliberate selections as she brushed her way through the barista’s questions. The very last decision she made left me with a look of fascination. The barista inquired: what steeping temperature would you prefer?  The tea that the woman ordered did not have an ideal steeping temperature (or the barista just did not know it). I still do not know why, but I was completely struck by the simple fact that different teas steep best at different temperatures. Spurred on by the joy this little piece of information gave me, I did a little more research on my new favorite drink. Stolen from a great website, www.teaclass.com, the following is a short list of fun tea facts:

  • Legend has it that tea was first discovered by a Chinese emperor around 3000 BC. At the time, he made a law that all water must be boiled before it was drunk to ensure sanitation. As he was drinking his boiled water one day, some leaves from a nearby tree fell into his bowl, changing the color of the water. The emperor, who was also a scientist, took a sip, liked the flavor, and found that the leaf had restorative properties. The rest is history.
  • Tea is the second-most consumed drink in world, second only to water.
  • All teas come from the same plant – a plant called Camellia.
  • “Chai” quite simply means “tea” in Hindi.
  • The ideal steeping temperature for black, dark oolong and herbal teas is 212F; the ideal steeping temperature for the more delicate green, light oolong and white teas is 180F.
  • The ideal steeping time for most black teas is 5 minutes, while dark oolongs and whites can stand about 7 minutes, and light oolongs and greens should only steep about 3 minutes.
  • ALL teas (remember they come from the same plant) have been shown to assist in weight loss, the prevention of cancer, immune strength, lowering cholesterol, and giving better breath.
  • Herbal teas are not actually tea, as they are usually derived from dried flowers, fruits, or herbs.

If you drink tea, I would encourage you to learn a little more about the drink. It is really interesting. Teaclass.com is a great place to start. If you do not drink tea, why not give it a try? The drink has great health benefits. Who knows? Maybe you will find, as I did, that you actually enjoy it.

Tech Predictions

Thursday, February 28th, 2008

By Jim Bruckbauer

As Economic Development professionals, we need to keep track of various trends in technology and how we can apply (or not apply) these trends to reach our long-term goals. As we well know, technology is having a profound impact in almost every aspect of our lives, and if you’re anything like me, you often find yourself constantly trying to “keep up” with new tools.
I recently had the privilege of attending a speaking event by Keith Brophy, who is the president of a software consulting company called Nu-soft Solutions. For the past ten years, Keith has been making predictions on future trends in technology. So far, his predictions have been fairly accurate, and two of this year’s predictions merit some mention, since they affect a community’s ability to market itself effectively.

“10 years from now, 5% of the US population will derive their primary satisfaction from an on-line program.”

This is isn’t a huge surprise when you think of the populations time spent on social-networking sites like Facebook and MySpace. Also, think of the negative impact of addictions to gambling and pornography. There is an up-and-coming fascination with SecondLife.com, which allows the user to create a realistic 3-dimensional life in the virtual realm. We’re already seeing signs of the huge impact of that site, both positive and negative. Our society may have a hard time adjusting to the impacts these programs may have.

“Ads will track us, bringing on ads that are catered specifically to us.”

Pay-per-click advertising by Google is reinventing traditional advertising. Google has also been able to create specific advertising to match the words that appear on your computer screen. The Eyebox2, from sensor manufacturer Xuuk, will very soon give companies another way to find us. With the Eyebox2 technology, a small device can be placed on any object that advertises and scans human retinas using infrared technology. Advertisers can then be charged on a pay-per-look basis.
Keith gave an interesting example of how this Eyebox technology may be used. Say there was a very attractive, luxury watch capable of showing a small digital advertisement. With the Eyebox2 technology in place in the watch, the ad could change every time you simply glanced at the time. Advertisers on this product could fund the manufacturing of the watch, thus making the watch available for free. Big Brother may be watching us sooner than we think. Who wouldn’t take a free luxury watch?

We might keep these things in mind as we think of how we can market our products, services, and places. Forward-thinking and innovative ways to market what we can provide will always stand out in a highly competitive world. It will be interesting to see which companies adapt quickly to the changing world.

Indian Companies Invest $10 billion in the US in 2007, Up 150 Percent Since 2006

Thursday, February 28th, 2008

By Vidhan Rana

Mahindra USA, a subsidiary of $22-billion-a-year Mahindra & Mahindra based in India, is launching its hybrid diesel trucks and a SUV in the United States in 2009. The company expects to set up three assembly plants in the United States, one of which is already being planned in Ohio. Mind you, Mahindra is not a unique case – literally hundreds of Indian companies are going on a buying spree in the US. Why? One, the rapid economic growth in India has loaded these companies with cash they can invest to expand their global presence and two, the cheap dollar.

According to Amit Mitra, the secretary-general of Federation of Indian Chambers of Commerce (FICCI), Indian companies invested $45 billion worldwide in 2007 with the U.S. accounting for $10.25 billion. “India is investing twice as much in the US as the US does in India,” Mitra told a select gathering at Chicago’s InterContinental Hotel on February 19th.

India's GDP GrowthIndia’s economic miracle! One could hardly imagine Indian companies making a mark in the global economy barely a decade ago. India’s economic miracle began in the early 1990’s when the government began opening up the economy to foreign investment and liberalized trade restrictions. Since then, India’s Gross Domestic product (GDP) has multiplied more than three times from $315 billion in 1990 to $984 billion in 2007 (IMF World Economic Outlook, current US dollar measures not adjusted to inflation). Since 1990, India’s economic growth has averaged 6.24 percent, while the US’s economic growth has averaged 2.96 percent (adjusted to inflation). Cheap US dollar! In January 2003, one US dollar could buy you 48 Indian Rupees (INR). In January 2008, it only bought INR 39.5. This means that US dollar has devalued about 18 percent against the Indian Rupee in the last five years. As a result, US investment has become 18 percent cheaper for Indian companies. Investing in the US gives India a competitive advantage. The returns that Indian companies enjoy here are far greater than elsewhere. No one knows whether the dollar is going to keep on going down. Indian companies are definitely seizing this window of opportunity and putting a foot down on the accelerator.  What is in it for economic development agencies? One thing is for sure, there is plenty of opportunity. Is there any difference between attracting investment from Wichita, Kansas, or Mumbai, India? Probably not. In a global economy, the origin of investment is irrelevant. Economic development agencies responsible for attracting businesses to their area to create jobs, expand their economic pie and increase the tax base of their community have a wonderful opportunity to tap into this new global economic phenomenon.

Whittaker Associates is currently studying Indian companies to better understand their investment decision-making process. Soon we will be able to predict what industries or areas will likely be a target for Indian companies. We are establishing relationships with these Indian companies to help them find communities with the right infrastructure and talent pool to serve their needs. For more information, contact Vidhan Rana at vidhan.rana@whittakerassociates.com.