LI report notes global investment in technology – how ’bout you?
If you do business on Long Island, you’re probably familiar with Pearl Kamer. She’s the Chief Economist of the Long Island Association, and publishes quarterly economic outlooks for the region.
Several years ago, before the dot com bust, I heard Ms Kamer speak within a few weeks of another area economist. The other fellow has a long list of credentials with area colleges and television stations. The gentleman’s economic assessment was quite encouraging – he saw ‘nothing but green lights ahead’ for the economy. Ms. Kamer on the other hand, spoke of her concern that Long Island’s boom was without meaningful job gains. She was worried that the construction boom was being fueled by overvalued home equity loans. She reminded the audience of a time not long ago when Long Island saw many homeowners walking away from properties that were ‘upside down’, and felt that skyrocketing property valuations would leave us in that situation. She left me a little shaken.
Of course you know which of the two economic prognosticators look correct today.
Since that prescient presentation, I have read Ms Kamer’s outlook statements carefully. Her latest installment for fourth quarter of 2009 can be read at (http://www.longislandassociation.org/UserFiles/File/PEARLDEC09.pdf). Her common sense summary rings true to me: ‘Although Wall Street is doing somewhat better, Main Street has yet to benefit from the improved economy‘. It’s worth reading.
The sentence that interested me the most: ‘American multinationals are spending more, primarily for their facilities abroad. Companies that have cut their workforce to the bone are investing in technology, software and other equipment that boosts productivity.’ I see this too. Almost every supermarket now has numerous self scan aisles (which were installed during the recession) . I also see it for families — with broadband adoption rates in the face of the recession. Verizon’s flagship FIOS product was launched during the recession, and managers claim adoption rates have been virtually unaffected. Ditto for the adoption rate of ’smartphones’ (the iPhone and its cousins) – which have been even called ‘recession proof‘. Technology continues to become a part of the fabric of our everyday lives – recession be damned.
At Desktop Solutions, during the recession we adopted a ’screen share’ service (Gotomeeting) which pays for itself many times over each month. We increased broadband at our office, adding some IP addresses — making the servers located there more accessible to our employees. We’ve pitched our tried and true postage machine. It was a time saver ten years ago, but makes no sense today, when a visit to the post office’s web site yields postage stamps delivered to our mailbox. We compared shipping services for our eCommerce sales, and switched to a lower cost alternative.
A client has improved customer service by creating an online sales rep dashboard that allows reps to see customer status updates online, instead of contacting customer service. Proactive messaging communicates updates on back orders, shipping issues and collection notices directly to the reps in the field. Less time is spent faxing and updating customers.
Another customer has lowered operational costs by creating a portal to communicate with their overseas suppliers. Instead of having to re-key thousands of order confirmations, invoices, and bills of lading previously received via fax, their suppliers now upload the data into an online logistics portal, where it can be imported directly into accounting and shipping software. This also shortens the delivery cycle with these suppliers, since communicating across the time difference is much less of an issue.
Has your Long Island business looked at ways in which you can invest in technology and reduce ongoing costs?
Please let us know with your comments — we’d love to hear from you!
