Happy new year to our customers and visitors. We hope that 2010 will offer improved opportunities to all of you, although some of our clients have had a terrific 2009 and we wish you continued success.
Big changes are on the horizon -- some good but also with some challenges. As consumers retrench their finances, developers and service providers must continue to operate lean but effective operations. Though cost controls are as important as ever, investment cannot languish as many competitors are forging ahead with new technologies in wireless, IT, storage and efficiency.
We talk about these changes over the next several pages, and list several observations and ideas about how to remain competitive and yet remain at the forefront of various trends. It's an overused phrase, but 2010 may be a make-or-break year for many businesses, and thinking ahead and smarter will benefit those who invest the time to do so.
Big changes are on the horizon -- some good but also with some challenges. As consumers retrench their finances, developers and service providers must continue to operate lean but effective operations. Though cost controls are as important as ever, investment cannot languish as many competitors are forging ahead with new technologies in wireless, IT, storage and efficiency.
We talk about these changes over the next several pages, and list several observations and ideas about how to remain competitive and yet remain at the forefront of various trends. It's an overused phrase, but 2010 may be a make-or-break year for many businesses, and thinking ahead and smarter will benefit those who invest the time to do so.
Telecom
If 10 years of stock equity crashes, sales declines and fickle regulatory policy weren’t enough, there are still several large threats left for traditional telecom providers. Bailouts are not an option (yet -- but they may be needed one day). Cash flow used to be sufficient to fund new networks upgrades, but may soon be insufficient. See our Broadband: A Review article on the Consulting page to learn a little bit more about the future of telecom and broadband, which itself is particularly important due to its high-margin impact on telecom revenues.
Retail
There are many opinions about the effects of higher unemployment, lower credit and uncertain buying trends, but simply encouraging employees to do “figure eights”, pushing UPT’s and comps is not enough, and really never has been. What is clear to us is that you must address several principles to maximize sales: Improve your service, watch your costs and listen to your customers. It sounds simple, and is probably already written into your rule book, but it seems to be human nature to perpetually overlook these hallmarks of success. Look for more in our section on marketing aspects in January 2010.
Energy
Alternative energy sources like solar and wind seem to be far-off in the opinions of many, at least for large-scale GW roll-outs. We tend to disagree. Very interesting things are happening today, with solar in particular having dropped significantly in cost, well past the key $1.00/manufactured-watt barrier. Although incentives are often still an important part of a successful solar business case, continual improvements in manufacturing processes and recent drops in (albeit volatile) polysilicon prices, plus the surging growth CdTe thin-film technology such as that offered by First Solar and PrimeStar Solar, are making for some interesting options. And one thing is for certain: Solar will affect the way power is generated and used by all of us in the not-too-distant future.