To Mob the Web Fantastic: Mobile- and Social Media Confluence Strategies for Brick-and-Mortars

There is as much blood in a Bloody Mary, as there is actual resolve in the average New Year’s resolution. Today is January 24, and the pavement on the road to hell never looked so resplendent in abandoned self-betterment. Take a notion that struck you as clever just a few short months ago (Zumba dancers with nicotine patches, anyone?), douse it in a bucket of forward absolution, and sprinkle a light dusting of discipline on top. Bring to a quick boil on New Year’s Day and let the stir simmer for the twelve months to come. A worthy three weeks into it, and I can assure you, both the novelty and nobility of forcing changes unto life’s design will have worn as thin as a Nicki Minaj character. (Last seen inside a gym when the British left Palestine, your blogger, as a case in point, is tiring admittedly of the thrill of carb counting while spending more time with his family – blaming the waning enthusiasm for wanting to look less like a Care Bear on the two pre-adolescent sodium sales people which the Kraft Foods company has so insidiously installed in his own home. And predictably, he sides with Oscar Wilde – whom else? –, for “good resolutions are simply checks that men draw on a bank where they have no account.”)

In a professional context, I have noticed that IT leaders are ringing in the New Year with two items seemingly topping the list of their department’s make-it-happen resolutions: the respective implementation of a mobile strategy and a social media strategy for their businesses. While every business may have unique objectives and requirements for how to capture an increasingly mobile and social network-based audience, there are a number of common themes unfolding. Here I shall highlight one that has garnered strong interest in particular from a number of our clients in the retail sector: the “fusing” of the physical and the virtual worlds. In short, 2011 may yet be the year that will see the blending of brick-and-mortar with bits-and-bytes, as many consumers today are “glued to their smartphones and living on Facebook,” as a CIO client of mine recently put it.

Here’s what’s having the CIOs at global retail companies as excited as the residents of Wisteria Lane at the arrival of the UPS delivery man: today, shoppers with their smartphones in hand are browsing the aisles of brick-and-mortar (B&M) retailers with the ability to look up any product information on the spot, including competitive pricing typically from Amazon.com. However, not all paths lead to Amazon; with powerful new mobile applications, merchants now have viable marketing tools to attract and entice customers with in-store specials tailored to the individual. For B&M retailers the future of one-to-one marketing may just have arrived. And if you’ve seen the movie “Minority Report,” you’ll know what I mean.

Think of the smartphone as a “bridge” between the physical and the virtual worlds. Terms like “mobile tagging” or “object hyperlinking” refer to smartphones’ ability to recognize an object and to call up information from the Internet that is specific to that object. This is accomplished through image recognition (a computer science technique that is becoming ever more effective), the reading of a QR code (a format that is fast gaining in popularity, especially in Europe and Japan, and is promoted by Microsoft in the U.S.), or the scanning of the ubiquitous barcode.

For example, when you see something of interest in the “real” world – say a product or an ad – you can take a snapshot with your camera phone, and the phone, equipped with the right app, can recognize the product and allow you to “interact” with “it” right then and there. Scanning a barcode while in a store, can give a shopper real-time access to price-comparison data; reading the QR code printed on a magazine ad can bring up the advertiser’s web page directly on the handheld; and a number of apps can visually recognize book covers and other items just to bring up the corresponding shopping cart at your e-tailer of choice. Regardless of whether this interaction is enabled through image recognition or code scanning (or other emerging techniques for object identification), it is my belief that people will increasingly use their smartphones to take pictures of physical objects (shopping goods, print ads, display windows, movie posters, showcases, billboards, etc.) or “check in” at physical locations (à la Foursquare, Gowalla, and shopkick) in order to instantly obtain object- or place-specific information from the web.

With a purpose-built mobile app, a person’s smartphone will not only “know” the shopper’s location but also “carry” detailed, yet hopefully anonymized consumer data which can be used by nearby merchants to issue precisely targeted specials and preferred pricing offers by sending coupons to the phone. These digital coupons are then scanned from the phone’s screen at checkout and thus redeemed. And for extra credit, every time a consumer snaps an item or registers at a location, there is an opportunity to capture a meaningful piece of marketing data: the voluntary and self-motivated signal of interest at the time and place of encounter with any particular merchandise, commercial, or store location. Marketers consider a compilation of such indications of interest a powerful predictor of future consumer behavior, second perhaps only to a shopper’s past purchase history. And, of course, with access to such consumer information in real time – i.e., if products, ads, and storefronts “knew” something about you – that encounter becomes that much more meaningful, as the product pitch can now be tailored to your preferences.

Finally, who knew Coleridge (Jr. nonetheless) had a thing for IT budgets which are customarily cut at the beginning of the year: “The merry year is born like the bright berry from the naked thorn.” Beautiful, of course. Perhaps just as beautiful as being able to stretch your budget to do more with less and to implement some impressive mobile- and social media strategies without going for broke already in the first quarter. Our company Talent Trust (http://www.talenttrust.com/) has helped many traditional, brick-and-mortar firms devise and cost-effectively implement such strategies – with flexible access to highly skilled IT professionals located offshore. Please feel free to contact me (christophe.kolb@talenttrust.com) should you be thinking about building mobile apps and social media platforms to influence and captivate consumer audiences. Talent Trust has a ten-year history of creating successful technology solutions for delighted clients such as Accenture, Agilent, Autodesk, Brady, CMA CGM, CompuCom, Continuous Computing, Critical Mass, Elan Computing, eMeter, Euro RSCG, GE, IBM, Major League Baseball, Manpower, McAfee, Medtronic, Suzuki, Taylor Corporation, Verizon, Zynga, and many more.

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Dragon Claws and Tiger Paws: The Hackers of Globalization

What’s all the fuss about globalization being either good or bad, manageable or inevitable? Globalization is but a fuzzy measure of how globally connected, integrated, and dependent you are on others in terms of economic, technological, political, cultural, social, and not the least ecological interchange. Last time you ever poked fun at that goofy Icelander for believing in his wights, elves, and huldufólk (“hidden people”), for he’ll come right back at ya, by closing his country’s banks – turning a whole bunch of UK depositors into such huldufólk – and shutting down your airspace for weeks on end (and all you can do is sue Thor for spewing volcanic ash and other forms of Icelandic ectoplasm, including Björk, over your Fatherland). (Though on that note, the brave pilots of Deutsche Lufthansa must be congratulated for being the first to face the pulverized magma, proudly living their corporate motto that the “Hansa is flying even when the birds are walking.”)

No, globalization would be a simple and straightforward matter if we just called it global trade (and indeed, if it was just that: worldwide import/export), and if it wasn’t for such complicating factors as the vast inequalities accentuated but perhaps not caused by putting us all on an economic Mercator projection, an equal free-trade footing. In the good old days, it used to be fair and equitable: you’d send a nutter like Marco Polo off on his Silk Road to scam the Kublai Khan with some cheap Venetian costume jewelry, and the fool would come home with spaghetti – home being Italy, mind you! Let’s call this one “Bucket A”: arguments for or against the notion that the world’s haves and have-nots will benefit very differently from the effects of globalization. If the upper left-hand corner of your paycheck says “The World Bank Group,” you’ll likely be a naysayer, arguing that global inequality has risen as a function of increased globalization for a number of factual reasons that are measured in something called the “Gini coefficient,” and the explication thereof would stretch the scope of this blog as much an A-Rod-professed monogamy. Know that your blogger – like most civilized people – categorically condemns the exploitation of impoverished workers and joins with militant fervor in the persecution of all exploiters of child labor (if you can, check out our friend David Arkless’s and his company Manpower’s support of http://www.notforsalecampaign.org/ – a rather worthwhile cause!).

Some of the other, softer, and more academic arguments brought forth by the anti-Davos crowd (rash boarders, by and large, who eschew après-ski and raclette with Angelina Jolie) have to do mainly with agriculture subsidies in rich countries (thereby lowering the market price for poor farmers’ crops), the non-existence or at best weakened state of labor unions in destitute regions, and – oh behold, the Bugaboo! – the rapid growth of offshore outsourcing. In “Bucket B” we shall lump all arguments either in favor of or opposed to the notion that globalization will revert all “things” back to their normal mean. And all these things are purportedly economic, technological, political, cultural, social, and perhaps even ecological in nature (you can appreciate how complicated a well-rounded treatment of globalization can get – and most of them alas are as cohesive as Destiny’s Child). Think of it as the global equilibrium point, where say a big media company in the States is outsourcing all of its IT development to India, where the Indian IT developers – because of these two interlocking economic trends called global wage arbitrage and purchase price parity – are making a respectable middle-class living, allowing them in turn to tune into, as it so happens, their client’s satellite TV channel to watch the admittedly timeless episodes of Rachel and Friends, thus sending about $1.50 in revenues back to Burbank, California for each $1.00 spent on outsourcing. The labor savings and the incremental foreign revenues are strengthening the firm in the U.S. such that it can afford to hire more domestic workers. A spiraling win-win scenario, or so it would appear, were it not for the pesky competition all now filing into Bangalore, tilting the local supply-and-demand ratio towards ever inflating wages. Over time, as you would expect, the Bengaḷūrus will be able to command the same level of pay as the good folks back home in Burbank. That’s what “mean reversion” means in this case: everyone’s making the same rupees and watching the same TV shows (where the largest common denominator will, thank heavens, also be the lowest one – watch out Slumdog, here come Jessica Simpson’s hair extensions).

Aforementioned Buckets A and B deal with resource re-distribution and societal re-shaping, respectively. It is perhaps intuitive that according to the KOF (ETH Zürich) Index of Globalization, Belgium, Austria, and Sweden rank first among the world’s most globalized nations (and that despite ABBA!), while Iran, Burundi, and North Korea are plotting away in impressive isolation. Cynics will contend that although the driving forces behind globalization are well understood, corporations (mostly again in rich countries) are in the driver’s seat, and thus it is hardly surprising that globalization will follow a corporate, and almost by definition, opaque agenda. Others point to the “avengers” of globalization, those that are part of a nation’s diaspora, the reverse exodus of Western-trained workers back to their country of origin (such as the legions of highly educated and very successful Indians in Silicon Valley, for example, returning home to start new businesses in India). And of course, there are those who watch Roy Rogers movies on TCM and eat lots of apple pie and claim that the United States will never fall behind, because we – and nobody else! – have the monopoly on innovation. (I’ve got something innovative for you, and it’s not the Xbox 360: here in the States we’ve got more massage therapists entering the workforce every year than computer scientists; and we’re now graduating more social workers from our colleges than engineers – of course, there’s absolutely nothing wrong with massage therapy or social work, quite the contrary, but you shouldn’t then wonder why someone moved your cheese all the way from Chennai, or why there are as many Indians on the list of the top-ten richest people in the world as there are Americans.)

I’ll close with a contention that may well be controversial: our conception of globalization is about as relevant today as Paul Bremer’s last lecture in the Sunni auditorium at Baghdad University on why “Democracy is not a spectator sport.” Globalization has been a decidedly Western concept ever since the Greco-Roman world established trade links with the Parthians and the Han. It’s pretty evident that the Chinese and the Indians – the only two countries with more than a billion people each which together make up nearly 40% of the world’s population – find our notions of global connectivity, integration, and interdependence about as quaint as a Quaker’s chuckle. Bucket A, Bucket B, pro or con, it really doesn’t matter. You might as well try to explain to an Indian “classical” musician the difference between Mozart and Miles Davis or insist to a Chinese that opera is all about stout white men crooning Verdi. Give it another 30 years, and China will produce 40% of the world GDP, with the U.S. (15%) and the EU (5%) lagging emphatically behind. With Chinese economic hegemony and supremacy in hardware, and India’s leadership in software and an unrelenting focus on scientific and technical education, and a potential coming together of two powerful allies at the purposeful exclusion of the United States, the economic, political, and social constructs of the West have lost their relevance as far as the Dragon and the Tiger are concerned (notwithstanding the tragic reality that both countries will still have to lift hundreds of millions out of abject poverty.)

Please feel free to contact me (christophe.kolb@talenttrust.com) should you or your company be thinking about establishing an offshore presence in either India or China. Our company Talent Trust (http://www.talenttrust.com/) has a ten-year history and successful track record of doing business in both countries and helping our clients successfully navigate some of the challenges of globalization.

Recruitment on the Orient Express: A Brief Primer on Doing IT Business in Eastern Europe

There is no pain, no sorrow, and no suffering in Philip Sanner’s world. His world is made of optimism – both manifest and militant – where charisma is a virtue not a curse, and good things happen because they can. And here in Sanner-Land not even little children cry, but only sales managers wince should they fail to make target. For in Philip’s worldview (or rather ‘Weltanschauung’ in his vernacular), there is little tolerance for failure; pity them who produce downward-sloping revenues, disappointing earnings, or bungled forecasts. Sure, they will get another chance to make good before they meet their maker, for a) Philip is a humanist, and b) this is Germany, after all, home to that fabulous invention called “Social Capitalism” (everybody here gets a second chance, and a third, and a fourth …).

Please, meet Philip Sanner, Herr General-Direktor (let me translate for you: director-general) of Elan’s Central- and Eastern European operations. Elan, of course, is the single largest pure-play – as they say – IT staffing firm in Europe, a wholly-owned subsidiary of Manpower, the global leader in the employment services industry. Sanner’s (please call me “Philip”) purview encompasses a business territory that once, over centuries past, was home to such pleasant sports as: the laggards of the Völkerwanderung, the last Roman conquerors-turned-ill-advised-tourists of Germania, the always charming Visigoths, the Carolingians, the on-and-off-again Huns, various Ottoman invaders ca. 1683 and ca. 1960s-1970s, and – needless to say – some of the most undesirable males the 20th century had produced.

Philip is part of the $16 billion business firmament of Elan/Manpower. Philip is a terrific business leader, and his team loves him, for he is firm but always fair, likes to lead strictly by example, and brings out the best in them. He subscribes to some unusual motivational methods though, normally observed at organizations such as the United States Navy SEALs or the British Army Special Air Service; when a mollycoddled German middle-manager publicly labors under the misapprehension that coming in second at a sales contest is the same as being “second winner,” he’s promptly enlightened by his director-general that “there is no such thing as the second winner, only the first loser.” Lovely.

I’ve personally known Philip “number-two-will-never-do” Sanner for over five years, and I’m proud to say we’re solid business partners and also friends now. We’ve launched a joint line of business called “global resourcing” or “remote staff augmentation” that is getting healthy traction across his territories, providing Elan’s clients with highly skilled IT professionals located offshore (for more information about the Elan-Talent Trust partnership see the ‘Harness Global Resourcing’ section at http://www.elansolutions.com/ as well as the dedicated services site http://www.elanglobalresourcing.com). I’m now sitting down in Philip’s palatial regional head-office here in Frankfurt – which, in terms of size and grandeur, makes Pope Julius II’s private study look shoddy by comparison. I’m always looking up to Philip, not only because he is one of the more successful IT staffing leaders in Europe; or because he rules his territories with an iron fist befitting one Götz von Berlichingen, every German’s favorite kick-ass knight; no, I’m craning skywards ‘cause Philip is an implausibly imposing 2.1 meters tall, as such barely meeting Frankfurt’s traffic height limitations for bridges and tunnels, and would have made a most respectable ‘Potsdam Giant’ under Friedrich Wilhelm I of Prussia.

By background Philip is an Entrepreneur with a capital “E” – and as opposed to most of his colleagues who are regular employees who may well be entrepreneurial (small “e”) in their respective jobs, he’s built real businesses from scratch, all in the IT staffing space, the last one of which he’s sold to Elan now eleven years ago. He joined Elan’s management ranks in ever-increasing roles of responsibility, while keeping his Entrepreneurial passion for the business, and he exudes the confidence of someone who’s been in the biz for twenty-odd years and seen it all, or – someone who’s just sold every self-doubt in the world to Mephistopheles himself.

But today Philip is even more buoyant than usual, though his habitual outer calm – which makes any funambulist appear fidgety – scantly betrays his excitement at having just sold a 200-person outsourced Level-1-2-3 support center deal to one of Europe’s largest technology firms. The center will be located in an Eastern European country where the client already has “strategic assets,” which is euphemism for owning a very large building with not nearly enough clever people in it, and a local hiring manager with little hair left to pull out, for the competition for IT talent has become fierce across Eastern Europe. That’s when we sit down to discuss the state of IT recruitment in different countries and to discern different staffing options for the client engagement at hand. And that’s when I decide to turn the discussion into an interview of sorts, where I’m asking the questions, and Philip is providing the answers, and this hopefully for the benefit of our readers. (As an aside, the interview is conducted in English, and although Philip’s English is excellent, to the American ear he sounds exactly like you-know-who from Hogan’s Heroes; an accent – he explains – he’s had since he was twelve and that he’s carefully cultivated ever since – for personal branding purposes, he says – not to be mixed up with your run-of-the-mill Cambridge grads roaming the mean streets of Frankfurt.)

Christophe: Hallo Philip, you’re the archetype of the modern German business man: with more degrees than a thermometer, you speak more languages than the good people of Babel, and you run out of passport pages faster than one can say “Welcome to Bosnia and Herzegovina, Herr Sanner.” Dispensing with all jokes now, how much do you actually travel per year, what countries do you visit, and how do you divide your time?

Philip: Well, although we’ve only recently begun to set up an office infrastructure proper throughout Eastern Europe – at this point we’ve got two main offices in Poland and two offices in the Czech Republic – we’re starting to see promising signs of growth throughout the whole region. Just as a caveat, put in context with the rest of Elan, Eastern Europe is still very small and nascent but clearly a region with lots of growth potential. In addition to Poland and the Czech Republic, Elan is active in Bulgaria, Romania, Ukraine, and Russia. Not to bore you with geography, but this leaves all the following countries untouched: Hungary, Slovakia, and Slovenia (in what we call “Central Europe”), Albania, Bosnia and Herzegovina, Croatia, Macedonia, Montenegro, and Serbia (in “South-Eastern Europe”), Estonia, Latvia, and Lithuania (the Baltic states, although we’ve got pretty good representation up there through our parent company Manpower), the “Transcaucasias,” i.e. Armenia, Azerbaijan, and Georgia, and finally the former Soviet states Belarus and Moldova. I’ve personally been to all but Azerbaijan and Moldova, and unless you’re boarding a good 100+ intra-European flights per year, you’re not going to get a grasp of the business in all these different countries. Lucky me, I guess … Let me just add that you should think of our Poland- and Czech-based offices as regional “hubs of excellence.” Clients with high-volume staffing needs (500+ people) in these and also adjacent countries come to us for strategic advice, established fulfillment capabilities, and a deep understanding of local market dynamics. Although we’re the market leader in both Poland and CZ, a close collaboration with our strategic clients is still required to drive successful outcomes.

Christophe: If you had to make a short-list, which are the top countries in terms of demand for IT skills?

Philip: They are in order of greatest staffing demand: Czech Republic, Poland, Russia, Ukraine, and Slovakia. Note that we at Elan would consider Poland and Russia as already mature markets for IT staffing.

Christophe: And what about the top countries now in terms of supply of IT skills?

Philip: Definitely Poland and CZ again as well as the Ukraine. What these three have in common is an educated, flexible, and rapidly-expanding workforce. All three countries posses well-established, efficient, and remarkably practice-oriented educational systems so that they can produce new and especially relevant skills with – please pardon my saying so – “hungry” individuals eager to learn the latest and most in-demand skills at a rapid pace, thereby shifting quickly towards new and emerging technologies.

Christophe: Along similar lines, which countries are on your “favorite list” when it comes to supplying IT workers for “cross-border” deployment (meaning as travelling guest workers in other countries on finite-term assignments) or for near-/offshoring (in other words, the resources remain in country but do the work remotely for a client in a different country altogether)?

Philip: In that regard both Romania and Bulgaria top the list – both are super-hot right now for both Microsoft and SAP skills – closely followed by Poland. We literally have a plethora of IT services and support centers in Kraków. Manpower’s big American clients, for example, are setting up shop in Poland and CZ with just remarkable speed – ramping up to 3,000 employees per center is pretty much the norm within a very short period of time … you ain’t seen nothing yet, as I believe you boys would say over there, until you’ve seen what Elan can do for you here. Obviously both Poland and CZ are not the cheapest places in the region, but American firms in particular are hoping that long-term investments will help offset and indeed reduce upfront operational spend and will yield significant improvements in overall IT efficiencies.

Christophe: Please excuse my saying so, but as far as political and legal systems are concerned, the whole of what we call Eastern Europe is to me just like my mother-in-law’s Hungarian Goulash: it all looks the same, it’s pretty clumpy and sticky, certainly not for the faint-of-heart, and you shouldn’t have too much of it, and you really don’t want to know what it’s made of … Any truth to that? How would you navigate the different sets of country laws?

Philip: Tricky, specially for the uninitiated or, as you say, the faint-of-heart. Don’t do it, if you haven’t done it before. Developing and implementing local trading procedures are just absolutely key. This is never easy under the best of circumstances and particularly challenging as “flexible IT hiring” and related workforce management practices represent a hybrid between HR and the procurement function. If you’re thinking about programmatic training, high-volume hiring, outsourcing, temp-to-perm worker transitions and other types of work transfers, a deep – and I mean “substantially deep” – knowledge of local legislation and labor laws are required.

Christophe: Speaking of the letter of the law, which can be intimidating when that letter is part of a foreign language, what Eastern European countries would you rate as being the most “Western-friendly”?

Philip: Not surprisingly, Poland, Czech Republic, and Hungary are the favorites here, as these countries represent parts of many clients’ fully and globally integrated resourcing strategies. Through historical and cultural ties, they are closely aligned to such Western ‘powerhouses’ as Germany and France. Furthermore, these countries have a perhaps surprisingly – at least to some in ‘the so-called West’ – effective approach to human capital management. They just “get it” when it comes to servicing the demands of next-gen hiring managers: here it’s all about the stability, predictability, and rapid mobilization of talent pools.

Christophe: How is this now for a ‘loaded question’ – your advice to anyone looking for a reputable resourcing partner in Eastern Europe?

Philip: My mother used to spank me harder as a child when I would eat all the cookie dough! C’mon, is that all you’ve got? Seriously, you’ve got to do your due diligence. And I mean solid due diligence with multiple reference checks. Be careful to include in that check-list overall and of course specific technological capabilities and not just price as a differentiator. You are in the quality business – picking a quality partner will ‘pay back.’ Sound business processes and underlying systems are important as well. Make sure to pick a partner with a strong management team, matching cultural values – yes “values”! – and someone with the right and relevant business expertise. Someone you can relate to as a business partner, as you would say in the West, except they’re here in the East.

Christophe: I think I like your mother. Second to last question: if you had one country to pick in the region, which one and for what reason?

Philip: I’m hesitating, really I am … OK, it’d be Poland for me. It’s just the location, it’s so easy to get around, and it’s safe. The workforce there is adaptable, and they are able to identify technology trends early on, and they can ramp up new skills and capabilities very quickly. Their language skills are remarkable: English, German, French – all top. And the Poles are the most effective social networkers I know – I mean using Web 2.0 for recruitment purposes. Listen, if you’re not on LinkedIn, you definitely cannot be Polish. And, please, let’s not forget about kuchnia polska: where else would you go for your fill of Bigos and Pierogi?

Christophe: Final question, as promised: your favorite travel destination or story?

Philip: I’ve tried to re-classify France as an emerging market for Elan so that I could spend more time in Paris at Le Marche des Enfants Rouges – that didn’t seem to fly. Just give me the wine, the food, the cheese, and the Bohemian way of life, and I’d be a lucky man!

Christophe: Philip, you already are a lucky man! Congratulations on all your success in Eastern Europe, and I thank you for this interview.