Whenever you surf the Web, websites use small bits of code called “cookies” to track your activity. Depending on your point of view, this practice is either an invasion of privacy or a beneficial practice that helps keep online content free, and makes browsing in general more interesting because you may see an ad for something you actually want. Newly proposed Do Not Track legislation is intended to make Internet surfing more private. READ MORE
Less is not more when it comes to software compliance. Most companies want to do right, but many are not in compliance and admit they don’t have the time or budget to get there. But if they realized that an initial investment in an automated IT asset management system could save them time and money down the line, more would probably sign up today. A recent survey by King Research revealed that 60 percent of IT executives and managers believe they have unlicensed software deployed and 73 percent of that same group responded that they are not prepared for a software audit. Diane Hagglund, senior analyst at King Research, who authored the survey, says that a lot of IT professionals are doing piecemeal work that’s not end-to-end. These piecemeal tools don’t roll up into a report which could show which computers and software are not in compliance. “This survey paints a picture that screams for automated solutions.” The survey was sponsored by KACE, a Mountain View, Calif. company that specializes in IT asset management software solutions through their flagship product, KBOX. Rob Meinhardt, KACE co-founder and CEO says a lot of companies think they’re compliant, but they still feel there’s software out in their system that they don’t know about. He adds that many of them have antiquated inventory protocols that track inventory on the way in, but few companies feel confident that their technology can identify everything. “We find what’s on those machines and give the ability to meter and monitor, so customers are more certain of what they don’t know,” Meinhardt says. Aids negotiating with software vendors With KBOX, IT managers at a press of a button can slice and dice reports to see which computers have what software program on them and which staff members have been running what specific software program. For example, you may have 75 licenses for Adobe, but a KBOX report shows only 20 people using Adobe at any given time. With this data, you can renegotiate with software vendors. Michael Heuer, technology solution services customer support manager of Portland Community College and longtime KACE user, knows his records are better than those of his software vendors. “They change hands through acquisitions, which changes the starting point, but we know what our licensing arrangements are,” he says. “We can be very candid when negotiating for software and we ask what extra services we can get without spending a lot of money. Also, we proactively do compliance with our software vendors and have a strong partnership with them.” IT asset management helps save time and money Of those companies that are in compliance, some may not know that they can even save more money through purchasing an automated IT asset management system. These systems can figure out usage, which do not appear in vendor audits, and can show the IT manager which software programs are not being used on a daily basis. With this information, the IT department can better negotiate with software vendors and prevent the overbuying of seat licenses. “Vendors don’t care if software is being used,” says Kris Barker, CEO of Express Metrix, a Seattle-based software vendor specializing in asset management solutions. “They just care that it’s installed. Usage doesn’t matter to the vendor, but usage to the company does matter since it affects costs.” Express Metrix’s Express Software Manager Professional program has a control application function that enables companies to follow the concurrent licensing model so they can save money on software licenses. For instance, they may have 150 concurrent licenses, but their vendor requirement states they must only have 50 users running it at same time to meet compliance. The program lets companies save money, says Bob Ritger, IT Director of Payette Associates, Inc. a Boston-based architectural firm that uses Express Metrix. The company can make sure all employees are using the same version of software, such as Internet Explorer version 7.0 versus 6.0, he says. “The savings are significant since we’ve cut back on licenses we don’t need,” Ritger says. Avoid software noncompliance audits Peter Beruk, a consultant in compliance marketing with the Business Software Alliance (BSA), a Washington, D.C.-based industry group, notes that IT asset management plans can help stave off an outside audit by software companies or watchdog groups, such as BSA. The easy part is taking the inventory and the hard part is figuring out what the company has done historically when purchasing software licenses, Beruk says. For instance, if the company tracks its assets through expense reports, it will have a harder time finding its software license records, than if it uses an asset management tool. The BSA offers a large number of free tools available from its website, and it has contracted with several vendors including Express Metrix that will scan new software installations at no charge to track unlicensed software. “Any business is one phone call away from being reported or having unauthorized software, so it’s really incumbent on the business to know its own compliance with the software it’s using,” Beruk says.” Barker agrees that successful IT asset management comes from using a tool along with their planning and processes. “Successful companies understand IT asset management in that it affects everyone across the company and they buy in that it will make a huge difference in a company’s bottom line,” Barker says.
To understand why small businesses should care about supply chain management software, you could read a bunch of analysts’ reports explaining the good that can come from automating the process of turning raw materials into finished goods and getting them to customers. Or you could just talk to people such as James Van Dyke and Taylor Gordon. Van Dyke is president of Electronics Assemblers Inc., a 60-person custom electronics manufacturer in Hood River, Ore., an hour’s drive east of Portland. Gordon is a supply chain analyst at Myers Container/CMS LLC, a 91-year-old Portland company that makes industrial steel drums and containers. Listen to either long enough and it’s clear how important it is for a small company to manage its supply chain in the most efficient, cost-effective and collaborative way possible. Big corporations have used supply chain management and enterprise resource planning (ERP) software, for years, as well as newer technologies such as radio frequency identification (RFID) chips. Not so small businesses, many of which still rely on paper and pencil or outdated software because upgrading would be too costly and time consuming. Supply chain management that works That’s changing, as more small businesses see the value in having a better window into their supply-chain process. In fact, according to a recent AMR Research survey of 336 U.S. and European companies, in 2008 mid-market companies will be “aggressive” in buying supply-chain management software, due to continued pressure to reduce manufacturing costs and to help customers reduce their own costs. Customers “expect their own suppliers, regardless of size, to comply with their demands, which more often than not require investment in supply chain technologies,” AMR Research analysts John Fontanella and Eric Klein write in the report. Van Dyke’s business, Electronic Assemblers Inc., makes electromechanical and cable subassemblies for HP and other local high-tech companies. According to Van Dyke, supply chain management technology can be as basic as using Microsoft Windows programs. EAI relies on four – Windows Explorer, Exchange, Internet Explorer and Excel – for everything from restricting access to proprietary customer documentation to handling purchase orders to scanning websites for deals on electronics components. “Without it we’d be nowhere,” he says. The other part of EAI’s supply-chain management process is a material requirements planning (MRP) system called Alliance Manufacturing from Exact Software Americas. It tracks purchase orders, work orders, inventory levels and all other aspects of a manufacturing job. The software is expensive and it takes time to train people to use it. But it’s been worth every penny, Van Dyke says. “Ultimately where you end up is with a tool that allows you to treat materials planning like you treat your toaster. You don’t need to know how it works, you just use it to toast your toast,” he says. Fixing what’s broken Without good supply chain management, a company may lack access to vital information and the deficit can stop production from being as fast or efficient as possible. That’s the current situation at Myers Container/CMS, which has been limping along on paper-based systems and ERP software purchased in 1999 that wasn’t ever completely implemented, according to Gordon. “It’s not good enough to have the technology. If nobody’s using it, it won’t work,” he says. When new owners acquired Myers in late 2007, they hired Gordon to bring the company’s supply chain into the 21st century. As part of that, Gordon is analyzing existing software to decide if it can be upgraded, or if the company would be better off going with something completely different. The hope is that by upgrading “it’s very likely we’ll see high cost savings,” Gordon says. To learn more about supply-chain technology, Gordon joined the supply-chain management special interest group of an Oregon manufacturers’ consortium. He’s learning about innovations by visiting fellow special-interest group members’ factories to see the problems they’re facing first hand and to help brainstorm solutions. SIDEBAR: Supply Chain Management Technology Resources Some additional resources for learning about small and mid-sized business supply-chain management technology and practices include: Supply-Chain Council — This Washington, D.C., international non-profit publishes supply-chain standards and benchmarks used by more than 1,000 member companies of various sizes and industries. Supply Chain Management Review — The online version of this industry trade magazine has articles, white papers, newsletter, blogs, webcasts, message boards and links to other resources. The Supply Chain Management Research Center — The website for this research center housed at the University of Alabama’s Sam M. Walton College of Business has industry news, white papers and links to other resources. The center also sponsors an annual supply-chain management research conference.
The crew at Karen Pierce Gonzalez’s public relations firm couldn’t function without telephone headsets. The staff of the three-person company near Santa Rosa, Calif., spends so much time on the phone during the workday that headsets are a must, and not just any will do. According to Pierce Gonzalez, cheap models aren’t worth the investment because static starts creeping into the earpieces about the time the warranty expires. Yes, over-the-head models muss their wearers’ hair every time they’re removed, and earpieces don’t always stay in place. But that’s a small price to pay for relieving the pain that comes with cradling a phone between your ear and shoulder all day. “Just thinking about it makes my neck hurt,” Pierce Gonzalez says. As Pierce Gonzalez’s experience shows, people take their headsets seriously. If recent trends are an indication, the day is coming when wearing a telephone headset for work will be almost as ordinary as, well, using the telephone. Not just for customer service reps anymore Wearing a headset used to peg someone as a receptionist or customer service agent. But the era of cell phones, Internet phones, iPods, and video games has erased any stigma associated with working while something’s stuck in your ear. Industry experts say headsets could become even more commonplace after California, Washington, and New Jersey later this year join the rank of states with laws banning people from talking on hand-held cell phones. When deciding what to buy, some things companies should consider: Wireless — Wireless headsets are the fastest growing segment of the business, thanks in part to lightweight batteries that last longer between charges than older models. “Once you cut the cord, there’s a lot you can do to unleash it to a lot more people in the building,” says Joe McGrogan, director of business-to-business marketing at Plantronics, a leading U.S. headset maker. Some new wireless headsets can be used with multiple phones, allowing the wearer to switch between a cell phone and office phone without switching headsets. Other models let the wearer answer or hang up a call by pushing a button on the headset, McGrogan says. Frequencies — Wireless headsets operate on multiple frequencies to transmit voice signals to and from a telephone base station, and the higher the frequency, the better the clarity and range. Today’s high-end headsets use a 1.9 GHz frequency, which the U.S. Federal Communications Commission opened up for voice-only communications in 2005. Other models use 900MHz, 2.4GHz and 5.8GHz. Bluetooth — This short range wireless technology developed by a consortium of major telecommunications players including Motorola, Nokia, Microsoft, and IBM allows someone using a Bluetooth wireless headset to connect to other Bluetooth enabled devices like cell phones, computers and printers. Wired — Although wireless gets all the hype, companies like Plantronics still sell as many corded headsets as they do cordless, McGrogan says. What can you expect to pay? Prices for corded headsets range from $25 to $100. New wireless models with all the bells and whistles cost from $200 to $400, according to McGrogan and other sources. SIDEBAR: Headset resources Telephone headsets aren’t hard to find. Small and mid-sized businesses will see a healthy selection at office supply stores such as Office Depot and Staples. Online specialty retailers such as Hello Direct and Headsets.com have a larger selection. Some small-business telecommunications vendors also carry the gear or can tell companies where to find it. For additional information on headsets suitable for office and mobile workers, check out the following online resources: An interactive selector on the website of Sennheiser Communications, a European telecommunications equipment reseller, lets people select their preferred use, style and brand and then spits out a list of equipment that matches their needs. Plantronics has a similar online tool customers can use to view the company’s products for office, mobile, and home phones. Amazon.com has a telephone headsets page with equipment from a variety of manufacturers and online stores searchable by brand, seller, or price. If you’re thinking of going wireless, read this white paper on choosing a wireless headset at Headsets.com
