Information Technology Consulting Firm

I was reading this article and as a Cincinnati based IT consulting firm owner, found it interesting.  Social networks are influencing our everyday lives more and more each day.  This research was conducted by Don Bulmer from SAP and Vanessa DiMauro  According to them, there were six key findings:

1. Professional decision-making is becoming more social - enter the era of Social Media Peer Groups (SMPG).
Professionals want to be collaborative in the decision-cycle but not be marketed or sold to online; however online marketing is a preferred activity by companies.
2. The big three have emerged as leading professional networks: LinkedIn, Facebook & Twitter.
The convergence of Internet, mobile, and social media has taken significant shape as professionals rely on anywhere access to information, relationships and networks.
3. Professional networks are emerging as decision-support tools.
Decision-makers are broadening reach to gather information especially among active users.
4. Professionals trust online information almost as much as information gotten from in-person.
Information obtained from offline networks still have highest levels of trust with slight advantage over online (offline: 92% - combined strongly/somewhat trust; online: 83% combined strongly/somewhat trust).
5. Reliance on web-based professional networks and online communities has increased significantly over the past 3 years.
Three quarters of respondents rely on professional networks to support business decisions
6. Social Media use patterns are not pre-determined by age or organizational affiliation.
Younger (20-35) and older professionals (55+) are more active users of social tools than middle aged professionals.
There are more people collaborating outside their company wall than within their organizational intranet.

After reading this, a Bad Company tune came to mind, “Run with the Pack”.  There is certainly safety in numbers.  My question is this:  If everyone is doing the same thing, are they giving up any competitive advantages?

 

I recently read an article about the state of the IBM “i” and the amount of complaining by IBM application development and business partner folk. I know several RPG application development folk, and it sounds familiar. That made me think about my Java Application development and career. Are there things to complain about, and uncertainty about the future? Yes, but there are 2 reasons why the Java community is in a better place; the business model and the community. Before the IBMers call for a holy war, I said COMMUNITY! I am not talking about the strengths or weaknesses of the hardware or software. The business model for IBM is that they make the hardware and software, and partner for the sales and service. I think that is a viable model until IBM competes in the sales and services with their partners. If a lead is brought in by a small partner, they are awarded by giving the business to someone bigger. This sets up a confrontational relationship between IBM, the big partners, and the little partners. IBM can also decide whether or not you are worthy to be a partner. Why does this affect the software application development team? Because most consulting firm are selling SERVICES not HARDWARE. If they are not seeing business because of political fighting, they don't have to sell it. There are viable options on other platforms, where interference does not happen. IBM never fostered a community, they created a hierarchy with themselves as the head.

Certainly Sun has done some things that made myself and others unhappy. Besides, complaining, we actively pushed to remove barriers in our path. We do have an open source Java. Is there a IBM community that can work with RPG to make it work for them? I also think its about scale and timing. It's not like IBM software developers have their own AS/400 at their home. It's easy for me to create and use nearly any kind of application at my home in Cincinnati, and pretty cheaply. It makes it fun to tell non-technical people about my application development. Nobody but accountants want to hear about accounting programs. Java, and newer languages have grown up with the Internet. I have friends from all over the globe that have similar interests. If I have a problem, I can go online to a forum, friend, or web page to find what I need. I can read and write blogs to voice my opinion (like now). These things are not ingrained in the Legacy community, and in fact, have been actively campaigned against. It is my belief that any software, hardware, or service will die when there is no vocal community to support it.

Come on, come on, come on, come on now Touch me, babe!  Can't you see that I am not afraid? ....... Yea, I have been listening to The Doors again.  See the complete lyrics here.  Actually we are trying to decide how, when and what to do marketing wise or as we say internally, how many times to “touch” the client.  Even a Cincinnati based Information Technology Firm is not immune to the FUD Factor.  What’s an IT Consulting Service firm to do?

One of the things that has stuck with me from my marketing class at MIT  is when the professor said that the quickest way to burn through a million dollars and have nothing to show for it, was to start marketing and advertising. We certainly need to be marketing, but if companies’ are not in a position to buy, are the marketing dollars wasted? 

Having been around for 19 years, this is the 3rd economic downturn we have experienced.  We have come out of each one a little wiser and a little stronger.  We have been positioning to leap frog our competitors during this one.  We have seen an up tick in activity, just like everyone else.  This is the 64 dollar question:  Is now the time to spend the marketing dollars?

Since today I have more questions than answers, I invite you to leave comments on How?, When?, How often?  What means?  You would like to be marketed to.  Comments will be posted following this blog, so contribute and check back to see what others think.  

 

A couple of weeks ago, I made the trek to Columbus and attended the Ohio chapter meeting of TechServe Alliance of which STAR BASE, Inc. is a member.  In talking with other owners and corporate executives, everyone is pretty much saying the same thing: “We are seeing more sales activity, just no commitments.”   Seems like everyone involved with Ohio Information Technology firms is in the same boat.  In Cincinnati, things might not be quite as bad as Columbus because there is less state government work.

So why is there a lack of commitment?  There could be many reasons, but it all boils down to what I call the FUD Factor.   Never heard of the FUD Factor?  We would not be a real IT Consulting firm if we couldn’t use a TLA (three letter acronym) and it’s not what you’re thinking!  FUD is short for Fear, Uncertainty and Doubt. 

When the FUD factor is high, people tend not to make commitments, changes or decisions.  Doing nothing seems like the safest choice.  A high FUD factor equals RISK and as a society, we have become very risk adverse.   When the FUD factor is low, decisions are much easier to make, less risky. 

With the economy down and so much uncertainty, the FUD factor is definitely high.  So is doing nothing really a good choice?  Things tend to move in cycles or patterns, it is the way of the world... Losers become winners. Winners become losers. Day yields to night; nights divide the days; summer gives way to winter. Life goes on...always as it always was...but never the same.

Will you be ready?
 

The Cincinnati market is known for being conservative when it comes to using software. Most application development people I know would say that big software, from the big firms, either three lettered companies, or their name ending in “soft”, are the only code found in shops. There is the occasional open source item here and there, but usually in smaller shops. Why is that? Well, some firms don’t create their custom application development, they just enhance out of the box software. They need a vendor to yell at and fix things when it breaks, because their staff can’t fix the code, or don’t have access to it. For many firms, it is better to pay a vendor for support than to maintain it themselves. As long as you can point to somebody, it’s ok. Some firms actively fear that open source means that everyone will have their intellectual property somehow. They fail to realize that it is the same proprietary code that everyone uses too. Since, you have the source code, you can see if there is a backdoor coded in the application, something you can’t do with proprietary code.

With these fears aside, many firms, even in Cincinnati, are looking to use open source solutions for their issues. Certainly many are using the free (as in beer) code to save costs. I hope though that some firms will see how this free (as in liberty) also helps their business. It’s a tough call whether to purchase a pre-made business process package (I am looking at you SAP), or to roll your own. I think the best of both worlds would be to use an open source application, and to enhance it. It is a popular misconception that you MUST contribute code, or that you can’t change the code. You can create your own code for use; you can’t sell the application with YOUR enhancements as YOUR NEW application. There is some legal wrangling, yes, but the bottom line is that you have application development teams, so use them. Your best business plan is to use your process as a competitive advantage, not to shoehorn your process into software that all of your competitors use. I think the goal is to beat them, not join them.
The best thing to do is to give your application development team a couple of old boxes to play with, and let them do some research on applications that can save your money, and are flexible enough to work with your processes. You may end up with an inexpensive system, and get that application that outperforms your competitors.

http://www.youtube.com/watch?v=R2a8TRSgzZY

Check out this video, it’s so dead on.  Many of us in the IT staffing industry have dealt with this first hand.  “I can get <fill in IT skill> resources for $20 an hour less from XYZ".  Companies’ sometimes act like they are buying a commodity product like copier paper, rather than skilled IT consultants. 

No manger would ever dream of going to one of their employees and saying, I can get Bob to do your job for $10,000 less per year, yet it’s becoming more prevalent in the IT staffing business. 

One of the huge issues facing our industry is the use of H1-B IT consultants.  Our leaders in Washington are looking legislation specifically targeting IT consulting firms that use H1-B consultants to limit our ability to do so.  This is in the interest of saving American jobs.  Unfortunately, the bill currently being debated does not limit multi-national companies, so only the smaller companies will be hurt. 
 

I would love to use local IT consultants for all of our engagements, but the price pressure dictates we do things we normally wouldn’t chose to do.   But then again, we’re really just hurting ourselves.

Organizations that build strong value-driven cultures frequently achieve high performance.  The values that are developed must touch every department in the organization or the overall operation will fall short of its targeted goals.

As an IT consulting firm in Cincinnati, we see many different approaches from many different companies and it is the “out-of-the-box thinkers that seem to continually apply lateral thought process on a continual basis and always stay a few steps ahead of their competition.

One would think that IT departments would observe and learn from this but way too often they do not pay attention to the business drivers of the organization and continue to stay with the same IT infrastructure year in and year out and resist change on any level.

There are those that would argue that “if it isn’t broke don’t fix it” and I agree to a point but I believe that if IT professionals are going to contribute to building a strong value-driven culture that works to achieve the business goals of the organization they are going to have to look at new approaches that may enhance the very work they are held accountable for.

Being responsible for business development for our Cincinnati IT consulting firm, over the past couple of weeks I have approached several clients and potential clients with some new value propositions.  Many do not want to talk about them, nor are some even curious on what they are.  Everyone has a full plate and little capacity for a new application development services, IT training or IT consulting project.

However, here is a question that I have for these individuals.  If it is true that information technology changes every fifteen to eighteen months, how can the IT systems and enterprise IT applications that you have had in place for the last three to five years continue to be relevant or simply as efficient as they could be?  Do you not owe it to yourself to at least listen to what an IT consulting firm here in Cincinnati has to offer?  Perhaps that IT consultant has significant experience with a solution that can make a difference but you are unaware of it because you are resistant to change and everything is running 'smoothly'.  I can understand your hesitation but what if the new solution could greatly improve your IT infrastructure, decrease costs, fuel improved productivity or more effectively balance your IT staffing needs?   Wouldn’t it behoove you to at least listen?
 

Just about every aspect of the world today is in transition and the IT services industry is no exception to this statement.  Professional IT services personnel must come to terms with the fact that the skills that they have developed in the past are valuable but they are not enough to sustain long-term growth in the IT field of today.

Technology touches every aspect of our lives and large enterprise organizations are dependent on technology to even operate.  The face of information technology consulting services has changed as well because being technical is not enough to meet the required skill sets of organizations.

Gartner has reported that the IT skills from yesterday are not enough to sustain an IT professional today.  The needs of business have changed and the IT professional of today needs to understand business and the business goals of their organization.  Everything and everyone needs to not only understand the big picture, they need to know how to flourish in it.

Gone are the days where IT departments were an island unto themselves.  The enterprise of today is an integrated machine that touches every part of the organization.  If an IT manager proposes a certain type of technology they must also be able to come up with the business case for their proposal.  Organizations need to understand and justify IT projects and not do them simply because the IT department suggests them.

This approach to business justification and accountability has also crossed over into the information technology staffing industry as well.  It is a fact that organizations will continue to need outside technical help but this technical help will have to be business savvy as well - there are no more shortcuts.  Just being technical is not enough anymore; an IT staffing person must appreciate the fact that they are placed in a position to do a job, but they must also understand the pressure that organization is dealing with when it comes to ensuring that information technology meets the needs of the company.  Firms are seeking staffers that can operate and function on both sides of the line, business and technology.

If one commits to this exciting world of information technology consulting services they must also commit to a pledge of life-long learning.  To not do so will not meet the needs of today’s business world and will place that person on the outside looking in and wondering why they did not get the position they sought.
 

If you're looking for a way to save some money in the tough economy, you may want to look for some help from an IT staffing firm.  Beyond typical staffing assistance, most IT staffing companies also employ IT consultants and software designers who can all combine to save you money, increase productivity, and increase your efficiency.

Believe it or not companies like mine, Star Base Inc., can do all of this.  Over and beyond placing candidates for your projects, Star Base can help improve productivity by ensuring that your company is using the right software for the right application.  If application development is not your organizations area of expertise IT staffing firms can recommend new software or write custom software that can meet your organizational needs.

Information technology staffing firms can help increase your efficiency.  My organization has developed subject expertise over the past twenty years.  We know all of the tricks and shortcuts that many people do not know.  Not only can we develop business applications and process improvement we can train users how to do tasks faster and can help identify jobs at your organization that can be handled by a computer but are not.  This usually saves companies time and investment

Finally, IT staffing companies can help reduce costs.  Yes there will be an initial investment, which is a very tough decision these days. However, in the long run they will find ways to save money and more than make up for their initial costs.  If the IT professionals can find ways to have software perform jobs currently being performed by company staff, they will free that staff up for you to use on company core competencies that can produce more goods and services while reducing payroll

When excess waste is minimized increased productivity follows. So you see, IT staffing companies offer much more than simply placing IT personnel.  They have the expertise to help cut back on wasteful activities and help you focus on activities that are efficient and designed to maximize your margins.  In a highly competitive marketplace, where all of us are stretched to do more with less, this is a competitive advantage that is worth having. 
 

 In Part 1, I introduced the concept of segmenting IT solutions providers.  In this part we will look at the criteria on how you might do that.  Now for the IT consultant’s favorite phrase, it depends.  It depends upon the type of provider.  For IT staffing, you may look at the ratio of resumes submitted to the number of candidates interviewed to the number of candidates placed.  For an IT application development provider, you might look at project costs or more importantly overruns.  For hardware service providers, you may look at time from initial call to response, the number of call backs. 

Once you have established your metrics, the most obvious thing to me would be to communicate to the providers what your criteria is.  But that’s not always the case, I know of a situation where a company was looking to eliminate some of their providers.  When a manager at the company was asked how they would go about making the decision on who stays and who goes, the response was “we will use a scoring system on criteria that we have developed”.  When asked if they could share the criteria, the answer was “no, we can’t do that”.

It’s critically important that IT solutions providers know what they are being measured on.  It’s the only why a supplier can find out what they need to improve on.  Every business should be interested in improvement.  By segmenting suppliers, you have an opportunity to get great feedback from your strategic suppliers.  It also gives you an opportunity to give feedback to your suppliers.  I know that’s something I would appreciate!
 

The global economy is tanking, layoffs are everywhere but organizations need to remain positive and work through these difficult times.  Information technology is no exception to this statement.  Often times when companies decide to cut budgets the information technology department is a prime target to be cut.

So, what can a prudent CIO do to address budget cuts while still operating his/her organization at a competitive advantage?   Here are some suggestions that may help:

• Ratios - Look at your ratio of onsite permanent IT employees.  Perhaps you could reduce the number of permanent employees to only those that are essential to the mission.  Outsourcing the rest of the work to a local firm often times is far more cost effective than permanent employees.

• Time-to-Market – If products and applications can be delivered faster, though a combination of in house personnel and outsourced talent then companies will reap the benefits sooner.  Work closer with your outsourcing partners to save time, investment and even the dreaded budgets cuts.

• Revisit your Processes – By working closely with your outsourcing partner.  If your team can find how to deliver applications an automated process with fewer touches and less defects there will be less time and money spent on re-works.  IT departments must leverage knowledge, experience and tools to gain a competitive advantage while decreasing cost.

• Productivity Improvements – Your internal and your external outsourcing IT partner must embrace being able to accomplish more in less time and at a lower investment.  The true business value of IT will be felt across the enterprise.

• Negotiate Your Rates – Any true business partner or business technology consulting firm, will be open to rate reductions if you are willing to negotiate a long term partnership.  Dedicated consultants are looking for long-term business partnerships.  If you are willing to commit to a set amount of hours they will br eilling to negotiate rates with you.

Application development outsourcing and IT staffing outsourcing can have many benefits in these times of economic challenge.  Your organization still needs to operate on a day-to-day basis.  Re-think your approach for the mutual benefit of your organization and your outsourcing partner.
 

According to an international survey of senior business executives by global consultancy, McKinney Rogers, business leaders believe that putting their faith in developing the skills and abilities of their workforce is the best way to reduce an organization’s exposure to the risk of recession.

With recent media attention focusing on the impact of sub-prime lending and the current global economic downturn turning into a full-blown recession, the survey, which encompassed Europe, Africa, Asia Pacific, and the US, was designed to gauge awareness, perceptions and trends on the issue and what can be done to minimize the risk of a recession’s impact on global business.

I would suggest that the same holds true for independent developers as well.  If you want to ensure employability you need to be a life long learner with multiple skill-sets to assure yourself that you always have skills to offer regardless of the development platform.

I am a person who makes his living assisting firms to reach their technological and operational goals while the discover the real value of IT. One of the challenges that I face is trying to place the right IT talent into these organizations.  As you read this blog you do not need me to tell you that the job market is extremely tight and companies are being very selective in who they hire and who they do not hire.

Not too long ago, application developers and technology consulting firms could concentrate on a given skill-set or set of tools and find plenty of opportunities to meet their offerings.  That appears not to be the case any longer.  Organizations of all sizes have multiple needs and they have learned that this world waits for no one.  That means they must continually re-access technology, work processes and skill-sets to meet the demands of their marketplace.

These are the reasons why any Internet application developer or web application developer must learn multiple skill-sets to make sure they continually improve their value in the marketplace.  It is no longer enough to have just RPG skills. Clients are looking for individuals that know RPG, J.D. Edwards and possibly some Java skills.  For web develops we are finding that knowing Dreamweaver, Photoshop and ColdFusion are not enough.  Depending on the firm that we are recruiting for they also want the people they hire to know PHP, MSQl, AJAX, .Net, Java and Javascript.

Want to make sure you’re always employable during these trying economic times?  Increase your skill-set and make yourself more valuable to those organizations that are hiring.

The old saying goes that “perception is everything, especially in marketing or individuals feeling on what reality really is.

My organization, STAR BASE Consulting, Inc. is a technology consulting firm who offers IT Talent on Demand as one of our services to our clients.  We will offer clients temporary and fulltime consultants if clients should have the need.  The process is rather simple but can become rather trying especially when a candidate has an unrealistic expectation on what a client’s needs may be.

Large clients usually have a very structured process for everything they do.  These processes have been tried and proven over the years and it is what makes any given company successful.  It have been my experience over the last several years that everyone is being asked to do more with less and that will equate to more than forty hours a  week

Still, many software developers and consultants that I interview sometimes have an unrealistic view of what it takes to run a successful business. Listen up.  The application development business is not a nine-to-five job.  There are no constants in the application development business outside of change and anyone who has tried to meet production deadlines fully understands this.  Organizations are under tremendous pressure to produce more and better every day and a great deal of this pressure includes ensuring that information technology can be used as a competitive advantage.

It has been my experience that professionals involved in information technology are involved in this profession because they have a true passion for technology.  When one is involved in application development or web development of any kind individuals work until the project is completed to the clients’ satisfaction.  Projects are not driven by forty hour work weeks.

This situation got me curious and I decided to research on where the forty hour a week originated.   Here is what I learned:
The 8-hour day movement or 40-hour week movement (a.k.a. the Short-time movement) had its origins in the Industrial Revolution in Britain, where industrial production in large factories transformed working life and imposed long hours and poor working conditions. With working conditions unregulated, the health, welfare and morale of working people suffered. The exploitation of child labor was common. The working day could range from 10 hours up to 16 hours for six days a week. These types of conditions do not exist in the free world today, so why must we continue to embrace nine to five with an hour off for lunch?  Is this productive?

Finally, let’s talk about today’s reality.  The economy has tanked, individuals are losing jobs left and right around the world and employers understand that they control the market today.  The forty hour work week is a practice of the past but actual went by the wayside for American workers towards the end of the eighties.  Everyone is being asked to do more with less and that my include working more for less. 

For those developers that do not want to work more than forty hours a week.  I offer this. Remember there are plenty of foreign nationals with excellent skills that are more than willing to work those extra hours just to taste the freedom and the opportunity that this country has to offer.  Count your blessings and reconsider when an employer asks you to extend yourself because perception is not always reality in today’s workspace.

With the success of the iPhone, and new releases by Google and Blackberry, it is clear that the next generation of phones will find their way into business users’ hands. What does this mean for application development team members?

First, a little opinionated history of the telephone industry. As a mandated monopoly for many years, telco technology was stagnated until it were forcibly separated. Technologies like the cell phone were created after they were forced to compete. The recent re-consolidation of the "Baby Bells" is showing that profit is more important than innovation. Fortunately, companies like Apple and Google are pushing the technology.

Unlike other countries, the U.S. has large population bases spread out over thousands of miles. There are many areas today without Internet or cell phone coverage. "The last mile" installation has been a hotly contested issue for a while now. Countries in Europe and Asia have exceedingly fast networks. For example, Japan is working on pushing HD movies on demand to the phone. Russia has created its own WiMax service that gives their country better service and coverage.

On the good side, it means there are new interesting applications to develop. I wrote about some applications in an earlier post. These were consumer applications, but could easily be adapted for business. Locating field staff graphically would have a big use in business. Taking a picture of a part, and having the server recognize the part and send a replacement would another example of using the new technology in unforeseen ways. Technologies like Flex and  JavaFX will make life for application development team members easier to create the next generation applications.

On the bad side however, is the US cell phone infrastructure. Unreliable, slow networks and conflicting technologies will limit the usage and types of applications written. Application development team members will be frustrated in writing applications that don’t have enough bandwidth to perform.

Will it improve? Time will tell. Clearly the existing service providers are not interested with improving service, and would even like to charge more for access. Once business demands better service, things could improve. The new president is looking to give Internet access for all children. For that to happen, we would need a network that is comparable to the rest of the world. Some even think this issue is so important to our country, a "mobile space race" is necessary.

I think it has to happen, or we will be left behind economically. More workers can telework if the infrastructure is there. That saves valuable energy, and also changes how and even where people live. A federally funded initiative would create a lot of jobs in developing IT infratstructure, networking, and application development, and would greatly benefit not only business, but all of this country.