JimPinto.com - Connections for Growth & Success
No. 114 : March 14, 2003
Keeping an eye on technology futures.
Business commentary - no hidden agendas.
New attitudes, no platitudes.
- Book: Friedman's "Longitudes & Attitudes"
- New technology may soon be battle tested
- Invensys out of FTSE 100 - pension fund frozen
- Sign of the times: Manufacturers get disintermediated
- McDonald's offers wireless Internet
- Quindlen premise - Democracy cannot strike first
- Leveling of economies with transfer of work
- Soft solutions too idealistic
Thomas L. Friedman's book - "Longitudes and Attitudes"
Thomas L. Friedman has a unique ability to interpret the world.
His insightful commentary in the NY Times is read not only in the
US, but all over the world. He won his third Pulitzer Prize in 2002
"for his clarity of vision in commenting on the worldwide impact
of the terrorist threat."
Friedman's book: "Longitudes and Attitudes - Exploring the World After
September 11" includes his columns published about 9/11, as well as a
diary of his travels from Afghanistan to Israel to Europe to Indonesia
to Saudi Arabia. He discusses his talks with all the major players,
as well as people in bazaars, schools and alleyways, studying the new
kind of war that America finds itself fighting. Unabashedly patriotic,
he seeks to interpret the things that America must do it grapple with
the aftermath of 9/11.
I've had a lotttt of feedback after my summary of Friedman's Nebraska
speech. John Curran [firstname.lastname@example.org] wrote:
"Last night I heard Thomas Friedman address the School of
International Studies, in D. C. (on C-SPAN). He is perhaps the
most cogent and well-versed speaker I've heard in some time.
I don't believe he speaks the gospel, but he's not far off the
mark. What he says deserves serious consideration and is food
for serious discussion."
To stimulate you to understand some of the points Friedman makes,
either by browsing the web, or by reading his book, I am including
some edited extracts. It is difficult to choose what to include!
Prologue: "You will never understand the front page of the morning
paper, or terrorism, unless you see the complex interaction between
the 3 primary players: nation-states bumping up against each other,
states bumping up against global markets, and markets and states
bumping up against super-empowered individuals, many of whom are
super-empowered angry men."
Read Friedman's "Longitudes & Attitudes":
Medal of Honor: "The ultimate strength of America and the impact
it has on the world does not come from all the military systems,
or from Intel's latest microchip. It comes from our remarkable
system of laws and institutions. The stability of the world today
rests on the ability of our system and economy to endure."
The Real War: "We are not fighting to eradicate terrorism - that
is just a tool. We are fighting to defeat an ideology: religious
totalitarianism. Religions need to re-interpret sacred texts and
traditions to embrace modernity and pluralism, to create space
for alternative faiths."
Breaking the Circle: "We respond to terrorism by trying to crush
or expel them - but this is futile without trying to reform the
extremists Islamic schools, or the political conditions that keep
producing angry Islamic waves. So, the deadly circle that produced
bin Ladenism - poverty, dictatorship and anti-modernism, each
reinforcing each other - just gets perpetuated."
Terrorist Software: "It is only when the world faces the fact that
9/11 was primarily about anger and societies problems that we will
eradicate not just the hardware of terrorism, but its software. We
must fight the ground war to eliminate bin Laden and his hardware.
But, Arabs and Muslims must fight the war of ideas in their own
societies, to uproot the software."
The War of Ideas: "The war within Islam is not a religious war.
It is a war between the future and the past, between development
and under-development, between conspiracy and rationality, between
advocates of suicide bombing and those who know that you can't build
a society out of gravestones. Only Arabs and Muslims can win this
war within their own societies - but we can openly encourage the
progressives. There is no quick 'Get rid of Saddam' fix."
Thomas Friedman's website
Book: The Lexus & the Olive Tree - understanding globalization
New technology may soon be battle tested
In future wars, robots may drop from the sky by the hundreds from
unmanned aircraft, swarming like giant insects over battlefields in
coordinated, terrifying assaults. But that is a decades-away scenario.
As the US military is poised to go to war against Iraq, we are getting
sneak previews at how military technology has improved since the last
time Americans prepared to fight in the Middle East. From wireless
gadgets and high-tech rations to net-wired tanks and handheld
computers for tracking battle plans, today's soldiers have access
to tools that were still on the drawing board just a decade ago.
If civilians are in the vicinity, an e-bomb can be fired - a cruise
missile tipped with a high-powered electromagnetic-pulse emitter,
which "fries" the electronics without killing the people. The weapon's
massive power surge travels through antennas or power cords to wreck
any unshielded electronic appliance - civilian or military - within
a few hundred yards.
There is no doubt that robots can save lives. They can navigate
terrain and obstacles more deftly, lay down a cover of smoke, test
for chemical weapons and extend a "neck" to peer around corners.
Robots are also learning how to right themselves if they flip over,
as well as how to follow their tracks back home if they lose contact
with their base.
Rodney Brook' company, iRobot, developed a 42-pound, remote-controlled
PackBot that US troops used to search Afghan caves. Packbot is like
a small tank, climbs stairs, works in 10 ft. of water and 400g forces.
Packbot sends video back to the troops, sparing them the risk of being
hurt by booby traps or enemy combatants.
Now Marines have a remote-controlled robot, called Dragon Runner,
which is less than half the size of PackBot. Camera-equipped Dragon
Runner prototypes can scout buildings and streets - possibly even
carry small bombs - in an urban-combat setting. The robot, which
looks like a toy dune buggy, can roam around in a building after
being tossed through a window.
Upgraded tanks, equipped with powerful computers, laser designators
and improved infrared sights, can operate either as reconnaissance
sensors, passing target coordinates back to command headquarters,
attack helicopters or artillery units. Or, they can destroy armor
with even greater precision and range than ever before.
Friendly fire incidents (a significant problem, as discussed on CBS
60-Minutes-II on Wednesday 12 Mar. 03) will be reduced by using a
network that enables commanders across the battlefield (and around
the world) to track the movement of friendly forces as a battle
unfolds. They can plot their relationship to enemy targets as the
hostile forces emerge.
The digital battlefield is even more advanced in the realm of
materiel. Computers, data networks and radio frequency tags enable
a FedEx-like tracking system. This is 'precision-guided logistics.'
Latest in weaponry is likely to be enlisted
The Military's Silicon Revolution
Readying robots for war
Automation updates - why always negative?
You know, people have asked me why I don't report "good news" about
the automation majors. Believe me, I try. But, the majors report
their own good news (via their own press releases) - leaving only
the unreported items to be featured by yours truly.
Directly, or through the weblogs, I continue to get requests to
continue my "no platitudes" reporting, which the mid-level employees
and the mushrooms ("they keep me in the dark, and feed me BS") seem
As if to retaliate, some of the big companies (Honeywell and,
more recently, Invensys) have blocked email and web access.
Of course this does not stop employees from getting access through
private accounts. Indeed, the Honeywell weblog generated MORE
traffic after it was blocked....
Invensys out of FTSE 100 - pension fund frozen
Invensys continues in dire straits, with bad news coming in
day-by-day. A month after the 60% Valentine's day crash to 20p,
the stock dropped as low as 8.75p on Thursday 13 March 03 and
closed at 10.00p, with a market-cap of just £350M.
As predicted, this week Lord Marshall of Knightsbridge lost both
his FTSEs - British Airways and Invensys, the two companies he
chairs, were evicted from the FTSE 100 index. At 69, one wonders
whether at long last this is a signal for him to retire. Lots of
concerned shareholders are working on this. Martin Jay, VT Group
chairman, was recently tipped as heir apparent.
The pressure on "Slick Rick" Haythornthwaite continues. The
falling stock price is not helping him. Complicating things further,
to stave-off a run on its £3B ($4.83 billion) pension fund, Invensys
has just banned employees from exiting the plan. Under new guidelines
laid down by the UK Occupational Pensions Regulatory Authority,
trustees of company pensions can stop members leaving financially
troubled company pension schemes by preventing them from transferring
their benefits. Invensys is the first company to adopt the new
guidelines. Where this will lead? Who knows....
Times Online - Invensys workers in pensions ban
Guardian UK: Lord Marshall loses his place in blue chip club
Latest comments & news on Invensys weblog
Sign of the times - manufacturers get disintermediated
"Disintermediation" is the elimination of intermediaries in a
business process, usually when the cost to do business with them
exceeds the value they provide. Today, globalization and e-commerce
is forcing everyone to evaluate and reevaluate every link in the
business chain to measure value, and to disintermediate if needed.
In years past, manufacturers were "upstream in the food chain" -
they generated the highest profit margins with proprietary products.
Intermediaries (sales channels, distributors, retail outlets) were
"downstream" links and generated lower margins. The lower your
business was in the food chain, the lower your margins.
One assumption was that the product manufacturer was the start of
the process, just as the end user was the final link in the chain.
Everyone else was an intermediary. However, when products become
commodities (minimum differentiation, commonly available from several
suppliers), the manufacturer loses that prized position and downgrades
to just another link.
In the declining automation business today - regional Systems
Integrators and Distributors are in the driver's seat. Manufacturers
are being disintermediated!
Read my latest article: Disintermediation-3
- Distributors in the driver's seat
- manufacturers get disintermediated:
March 2003 InTech Industry View
- Cost of doing business tightens even more:
Disintermediation-1 - The sales-channel perspective
Disintermediation-2 - The customer perspective
McDonalds offers wireless Internet
Would you like super-sized Internet access with that burger and fries?
This week, 10 McDonald's restaurants in New York are offering an hour
of free high-speed wireless Internet (WiFi) access to anyone who buys
a combo-meal. By year's end, McDonald's will extend the access to 300
more restaurants in New York City, Chicago and California town.
Besides McDonald's, Internet surfers will also be able to tote their
laptops to 400 US Borders book stores, hundreds of hotels and US
airports where WiFi access will be available by summer.
The main target for WiFi is the mobile professional traveling around
in large venues like airports; but smaller venues such as McDonalds or
Starbucks want to provide service, too and the trend is growing fast.
McDonald's Offers Bytes With Bites
Building Smart Hotspot Access Points
Chris Power [PowerC@plcman.siemens.co.uk] felt that Anna Quindlen
made a key point:
"For some time now, I've been struggling to put my finger on the
exact reason why I am so uneasy about the Iraq situation. Anna
Quindlen's article really hits the nail on the head. It is the simple
premise that democracy does not strike first, and that should the
greatest democratic nation in the world do so, it would make a mockery
of democracy itself. A terrific article, many thanks for informing me
Newsweek: The last word, March 10, 2003
- Anna Quindlen - Waiting, One Hand Behind
Charlie Matheny [email@example.com] wrote about manufacturing
work being transferred to China:
"You mentioned deflation as a result of sending work to China.
I think that anytime we export jobs offshore, to wherever, it results
in a rise in their standard of living and a lowering of ours.
D Wills [firstname.lastname@example.org] provided some feedback on my "soft
solutions for hard problems" writings:
"I recall from Economics 101 (or some such) that a dollar paid in
wages in a community has a multiplier effect of 7X as it gets paid
to the butcher who pays the baker who pays the candle-stick-maker,
etc. If that dollar is spent outside of the US, then we lose and
they gain, resulting in the inevitable leveling of economies.
"I say all this while at the same time, I am involved in shifting
a number of jobs to India. I wonder if the rest of the US has
thought this out. I think that in the next 10 years, an enormous
number of jobs will be shifted to India and China with the
resulting acceleration in the economic leveling. Are we ready?"
"I agree with your points, but I don't see the political will to
change our ways. Let's face it, America runs the show, and Americans
have no desire or need to cut their gas usage, or be more sympathetic
to the world's poor. And nothing is going to change until it is
literally forced on us. That is just human nature.
"At work, discussions sometimes pop up between liberals and
conservatives regarding things like better welfare, or socialized
medicine. The conservatives seem to have the idea that if someone
isn't working it is because they are lazy, and there are no
exceptions. Taxes are believed to be forcing you to give up your
hard-earned money that you should have exclusive right to. They say
things like 'fire protection shouldn't be a public utility; one
should have the option of buying fire protection from a private
fire protection service, and if you can't afford that, tough!'
"Many conservatives think that we should scrap the public education
system, and say things like, 'you shouldn't have kids you can't afford
to educate.' This mentality seems to be growing in the US. It seems
that more and more states are having to cut services because people
don't want higher taxes. I wouldn't be surprised to see the day when
America no longer has public schools, social security and Medicaid,
and other social services.
"With the climate changing rapidly, due to global warming, it is going
to be harder and harder for poor people (and the rest of us, possibly)
to feed ourselves. But, I don't see any political will to do anything
about these things. So, your article was very idealistic, not
realistic. Let's face it, things will get much, much worse before
they get better."
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