Telemarketing in Australia

Life for telemarketers in Australia will not necessarily get better, according to new regulations that are planned. Soon, they will no longer be able to cold call people, and only be allowed to call those that are known to them and those that haven't opt out from being called.

Earlier, the industry was threatened with a total ban, as the government had established that the industry put together various databases to create customer profiles. But a turn around by the industry made it possible for them to continue to use certain tools.

The article is not that clear in its statements about the exact intend of the regulation, but we don't believe that the industry will simply die. It might just be that they call other countries - We recently were called by someone from Japan under the pretext that they expand in Malaysia and if we would be interested in a meeting.

Or they scan the internet for addresses and telephone numbers, or just pretend to know someone in a household. Not a good number to start a communication, but a way anyway.

(By Asia Business Consulting)

Lawsuits triggered by actions in the virtual world?

How is that? Online gaming and playing games is a growing business for many companies and it is fun for those who participate in it - if you stay inside the line, meaning, if you don't become addicted to it and can still differentiate between the real and the virtual world. Or, if no one is going to cheat you. It costs money to participate - telephone costs, if you dial-up (which can be very expensive), or the normal monthly fees to participate in the game. Now, as it is nearly always the case, cottage industry develops around successful business models - sometimes good ones, sometimes bad ones.

In China, there just happened a bad one - a man who was apparently very active in a game called "Mir 3", managed, after a long time, to earn enough virtual money to buy a virtual sword from an opponent - only to discover a couple of days later, that the sword has been deleted by the company. Reason stated by the company, called Optisp: It was illegally duplicated. "Optisp said it discovered four swords with the same code in the No. 6 service area, proving the swords were duplicates.

"Some top-grade players duplicate high-level equipment by copying their programs. Then they sell them to earn money," said Zhang Hua, the attorney for Optisp. "This isn't allowed by the cyber game rules because it will destroy balance in the game." Okay, they state, that it is forbidden to use dupblicates, but the player didn't know. So how? Who is the one who has done the damage, since the player didn't have a clue, what happened. You can see, that a new industry or diversification develops. Lawyers now can add - experienced in solving online and virtual cases - to their business card. Or how else?

(By Asia Business Consulting)

Sony - or a giant stumbles

Sony, the juggernaut from Japan, is just another gian that keeps stumbling, showing that endless profits and constant growth is not always achievable.

It now indicates that it needs another year of restructuring, before it gets on top of things again The company intends to spend US$3.2 billion over three years to reduce personnel and pull out of unprofitable operations.

Hm - isn't this always the beginning of a decline? Major restructuring, losses, and layoffs? At least the company is not blaming external situations only (or did they), as other companies like to do to cover up internal mistakes. Have you checked your business environment recently?

(By Asia Business Consulting)

David Bowie gets it!

A lot has been said about downloading of music and the actions, that the recording industry is taking against it, despite the fact, that newer studies clearly indicate good reasons for downloading of music, show that it doesn't harm music sales, and in fact,that it actually promotes it.

Anyway, David Bowie goes a step further what The Times (London) calls: "Just steal my great songs". Bowie urges his fans (and others) to mix classic Bowie songs with material from his latest album, “Reality,” to create a “mash-up” — a track that uses vocals from one song superimposed over the backing tracks of another. MSNBC says that the technique has long been employed by record producers easily accessible to thousands of “bedroom DJs” — a fact that has alarmed record companies battling for control of Internet music distribution. And when a star like Bowie endorses it, they get even more scared, right? In fact, Bowie asks those who "play with his songs" to submit them to him, as an MP3 single, and the winner is bound to win a car. David Bowie sees this as appropriation of his must. We agree!

(By Asia Business Consulting)

Samsung sets up Brand Plazas

Following the footsteps of Apple Computers that set up experience stores around the globe and Somy, which did so in the US, Samsung is now following as well. The New Straits Times (Malaysia) of April 28, 2004, reports that the company will set up 3 brand plazas in the country to let consumers experience the Samsung feel.

(By Asia Business Consulting)

Gadgets - or ... are we getting personal?

Zero Sum/ Guerilla Research interviewed some 1,500 individuals in London's CBD, and found out that 68% of personalised devices were given 'male' names, with only 20% allocated a 'female' name. Okay, the article, published in Gizmodo, talks about bluetooth statistics and also provides some background to the findings. But the interesting fact is that just the day earlier, BBC described a situation where people started to get more personal with or develop some kind of loyalty their computers.

And sure it is true - you don't want to sit at a different computer all the time since there might be staff on it that is personal. Or that the setting has been personalised. But we spend a lot of time with our handphones - socialise via SMS, put work into our Pocket PC or play on it - in Japan, elderly people like to purchase robot pets. so sure, gadgets become more personalised, things change and humans adopt to it. While in earlier decades, we gave names to our soft toys, now we name our mobile phone - so what is the name of your gadget?

(By Asia Business Consulting)

SK Telecom launches personal security feature

SK Telecom, a leading telecommunications company in Korea launched a laudable feature. The Korea Herold reports the feature allows subscribers to instantly send text messages and map images of their location in case of emergency.

The satellite global positioning system-based technology allows the subscribers to send their information to four listed people with the push of a button. The receivers may then track the location of the caller for 48 hours as long as the cell phone remains on.

In times of terrorism, or during tragic accidents like the one that happened in neighbouring North Korea, this clearly is something that might be worthwhile noting.

(By Asia Business Consulting)

Handset market continues to heat up

We reported recently that Asian mobile phone makers rock the boat and were able to gain a tremendous market share over the last couple of years, mainly on the expense of Nokia, Motorola but also Sony Ericsson. BusinessWeek, in its April 26 edition, states that in March, 2003, phones made by by traditional powers Nokia, Motorola, and Sony Ericsson Mobile Communications totaled 60% of sales at LetsTalk.com, a popular cellular Web site. A year later, that has fallen to 44%. Meanwhile, leading Asian manufacturers Samsung, LG, and NEC have grabbed 43% of sales, up from 11% in March, 2003.

Well, the battle continues and recently, Sony Ericsson was able to bounce back with some great new models. Sony Ericsson is looking to regain its seat in the elite group of the top five mobile phone makers, selling 8.8 million handsets during the first quarter, 50,000 more than its closest Korean rival, LG Electronics Inc.

The advantage for the consumer? Greater offers, better prices, better services. Mobile operators area also increasingly linking up with handset providers, thus giving leverage to those, which company can best adjust to the taste of the consumer.

(By Asia Business Consulting)

Performance Management

Watson Wyatt, a Human Resource Consulting Firm from the US published new results, stating that only three out of ten US worker agree that their company's performance management programme actually improves performance.

Watson Wyatt's survey covered a total of 1,190 employees. Of those, 61 percent feel their performance appraisal was accurate and 54 percent say employees with better reviews get better raises and bonuses.

However, only 30 percent of employees give their performance management system good marks in helping them to improve their performance.

In addition, less than 40 percent say the system establishes clear performance goals, generates honest feedback or capitalizes on technology to streamline the process.

Let's give some data:

Aspect of Performance Management Strongly agree e /Agree

Program helps poor performers improve 19%
Program has helped me improve my performance 30%
Program establishes clear performance goals for current year 35%
Program does a good job of giving honest feedback 36%
Program uses technology to streamline performance management
process 38%
Program rewards better-reviewed employees with better
raises/bonuses 54%
I was evaluated accurately in my recent performance appraisal 61%

We don't know what type of performance review was evaluated here as there are many different types. Still the numbers above clearly indicates failure. And the failure of this can already be found in the early stages of the recruitment process. Are people getting hired that are fit for the job and fit its requirements? Do we hire the best person for the job? If we are certain, than why do we test the person's performance in such a stringent manner? Is a performance review motivating? May be it motivates for a short while and may only those who are praised or feel, they have been evaluated accurately - but the numbers up there are also not too good about this. How does someone feel who is being told that he or she didn't perform well?

One more thought - times are changing, so someone that was hired earlier accurately and was the talent required for the position might have missed the boat to upgrade his or her skills. It can also be that the job requirements have changed - but this is only partially the problem of the person but also of the company that didn't provide the opportunities to upgrade the person's skills set.

(By Asia Business Consulting)

Trousers made in 2 minutes

It appears that we report a bit about the funny side of life today. We read an article that there is a man in Hong Kong, who is able to make a pair of trousers, from measuring to final cutting in just 108 seconds. It is a tailor who is in business for the past 40 years and who wants to enter the Guinness Book of World Records.

He must also be rich - just think about his productivity and output, as long as the quality is good, and the trouser is fashionable!!

(By Asia Business Consulting)

Pollution in Jakarta

The Star (Malaysia) reports today about pollution levels in Jakarta, Indonesia. Apparently, there were only 7 days in the whole of last year, when the air was clean, compared to 22 days back in 2002. Level ratings were not provided in the article.

Jakarta is definetly a very polluted city, probably followed closely by Kuala Lumpur and Bangkok, and cities in China.

Pollution will cause huge costs for health "maintenance" in those countries. The cities are choking with traffic, and industries located in the surrounding frequently blow their "exhaust" just out.

A recent article in the New Straits Times (April 6, 2004) provided a beautiful calculation for lost productivity caused by traffic jams. It wrote that if the average productive person in KL spends an extra 1 1/2 hours on the road every day, five days a week, 7 1/2 hours (or RM90) is lost. The RM90 are based on a annual per capita income of Malaysians of RM14,954 with that of KL residents standing at about RM28,000. On this basis, KL folk earn RM12 an hour.)

In a year, one stands to lose 360 hours (RM4,320). If there are 100,000 people losing productive time every day, 36 million man hours (or 98,630 years) are lost annually. In financial terms, this is a staggering RM432 million. All this excludes road maintenance, car wear etc, and of course health - our original topic.

(By Asia Business Consulting)

China and the Internet

It is sad that good developments always (always?) have to go hand in hand with something less desirable. Shanghai has announced that they require cybercafe operators to install cameras to monitor users. The campaign, planned for the next 6 months, is suppose to scrutinise the viewing of pronographic or superstitious sites and to keep out visitors under the age of 16.

This accompanies the rise of China as an economic superpower where mobile phone usage and internet penetration is just surging and surging and surging.

(By Asia Business Consulting)

Education in Malaysia

Everybody knows that educating is expensive but also, that education can boost a nation’s competitiveness. What to do? Combine the two. In Malaysia, Prime Minster Abdullah Badawi proposes a ringgit-for-ringgit education savings scheme with a RM10,000 per child top up maximum is expected to be launched soon for families with an income of RM1,000 and below. Parents have to save RM10,000 and the government is topping this with another RM10,000. While this is not the world – one US dollar equals 3.80 Ringgit. However, it is a start to get something going. Let’s just hope that the money doesn’t end up in consumer goods or is used to ship in for car purchases.

(By Asia Business Consulting)

Temasek goes for Thailand

Temasek Holdings, the state-owned investment agency of Singapore eyes Thailand’s banking sector. This is, as we recorded earlier, a reaction to the governments intention of having Singaporean companies expand across the region.

Temasek will contribute to a 10 billion Baht fund with the Thai Government Pension Fund and Brunei Investment Agency to invest in Thailand. The New Straits Times (Malaysia) quotes Thai Finance Minister Somkid Jatusripitak as saying that Temasek is really interested in Thailand’s smaller airports and Thai banks. Could there be a link to the success of Malaysia’s budget airline Air Asia and the effort of Singapore to get its own budget airline running? Air Asia didn’t get a landing permission for Changi Airport Singapore, and its intentions to shuttle passengers from neighbouring Johor State in Malaysia to Singapore were thwarted as well.

(By Asia Business Consulting)

Malaysian police goes after truant students

Malaysian police starts to pick up students that play truant. Today, 14 students were picked up as they played games in a Cybercafe. Okay, there has been a lot of violence in Malaysian schools recently, and the discussion is hot. We admit that schools are important. It is also known and parents agree about this that teachers in Malaysia are not always the best equipped to educate kids. Companies are quoted as saying that kids don’t have the skills nowadays to cope in the working life. Can the conclusion been drawn that kids learn the wrong staff in school? Is school competing against cybercafes? Is a new and better, more modern, more innovative curriculum needed? Just some thinking!

(By Asia Business Consulting)

Anti-corruption fights increase national incomes and decrease child mortality

We reported earlier our opinion that the "new openess" that is blowing through the polical landscapes in Asia would be a competitive weapon for countries going forward.

Recent research by the Worldbank confirms this - in the box accompanying an ongoing online survey i stated that the fight against corruption and the improvement of the rule of law can increase national incomes by about 400% in the long term and decrease child mortality by 75%. The Worldbank calls this the 400 percent governance divident.

(By Asia Business Consulting)

Biometric cards in use in Singapore's Changi airport

Terrorism is boosting at least two industries - the military, and the security industry. In fact, in was said that after September. 11, 2001, the industry securing "anything" - people, buildings plus the accompanying equipment - would be one of the fastest growing industries over the enxt couple of years. How right this was.

As sad as it is, Singapore is probably high on the target list for terrorists, from the Souteast Asian terror organisation JE, which is said to be linked to Al Queda.

The good part is that the country is small and unified - may be this is one of the positive examples of a more authoritarian democracy - that the government can quickly go into action, when needed. Now, it is reported that Changi Airport, the leading airport in the region, and a tremendous example of a drive towards a constant improvement of customer satisfaction improvements, is introducing biometric cards, probably next year. This card will assist in identifying a person by his fingerprint, the iris of the eyes or voice. Reports state that the latest technology will be embedded in computer-coded cards of 90,000 airport staff, tenants or contractors who will use them for entry into restricted areas.

Biometric passports will be coming, but it will take a longer time before they will be introduced. Privacy issues could be raised, but then, tell this the victims of terror attacks.

(By Asia Business Consulting)

AGM Meetings in Asia

The Star Malaysia reported yesterday that shareholders in Singapore come to AGM meetings not to learn about the performance of a company in the past quarter or other relevant changes that took place in the company, no, they come for the food. And the come prepared - rushing out of the meeting the moment the doors to the buffet is open.

And those shareholders have their favourites: Seafood items go first - good staff like king prawns, lobsters and smoked salmon - followed by chocolate cakes, puddings and mango tartlets. Last goes cheaper items, that everyone can easily afford, like sandwiches or noodles.

We were shortly thinking that to be an owner of shares would be an easy way to get through the year with your food supply secured - just buy a share in each company and you will be invited often enough for real good food. Problem? Well, AGM's only take place every quarter or so, so something in between is missing.

It is easy to complain about corrupt companies in the US but then, there, shareholders wake up and punish the companies and the CEOs etc, by selling the shares. Is there shareholder activism in Asia? Well, there is, in Hong Kong. Proton's shareprice fall last Friday quite heavily as shareholders sold off the shares, after hearing about the alleged appointment of the former Prime Minister Mahatir in Malaysia as advisor to Proton, without stronger involvement of the Board of Directors.

Is this a sign of change? Or is change in Asia more real in actions such as initiated by Lafarge Malayan Cement that might take away with food in their upcoming AGM on May 12, and just serve coffee or tea.

(By Asia Business Consulting)

Golf in the US

There appears to be a new tendency in the US to rush slow players during golf courses on in order to avoid a backlog of other group of players.

I am sure that wouldn't work in Asia - here, playing golf is social networking where the emphasis is on playing golf, of course, but as much is put on talking business and getting to know each other.

(By Asia Business Consulting)

The desktop area - a heaven for bacteria

I read yesterday an article (AWSJ, April 16, 2004), that basically states that one needs to wash hands BEFORE using the toilet if you work on a computer.

This is because the area surrounding a desktop has 400 times as much bacteria per square inch as the toilet seat. The keyboard and the mouse about 67 times and 34 times respectively. All because we eat so much when we work and don't clean up after us. Makes us think and shutter!

(By Asia Business Consulting)

Employer's snooping on employees

We recently wrote about it already and described legislative moves introduced in Australia and the EU to forego the attempt of employers to invade further the privacy of their employees.

BusinessWeek now describes an even scarier situation in an article quoting Faith Popcorn, a famour futurist working in the US.

Let's start with the positive aspects: In the article she describes quite a lot of different situations that are actually positive - like less travelling (well, some might regret this), but more virtual meetings. More working from home, because of the improvement in technologies.

She foresees that your employer "will take care of you" - providing you with food, clothing needs, movies.

It states that employers will be able to monitor worker's stress level to send them off for a break if the levels get too high! Or if the cholestrol level is getting too high, the employer sends you different kind of food.

Firstly - if the employer is knowing everything about me, the company should be able to provide me with healthy food in the first place. But, what worries us is that if employers can monitor employees in such a way, i get the creepy feeling of Big Brother is watching me - where is the privacy? There is none, accoring to Popcorn.

We sincerely hope that she is off the mark - she was right by predicting that TV's will become flat, a couple of years back - but please, not this time!!

(By Asia Business Consulting)

Bleeding Edge: Sony and Toppan Printing Company

In Japan, Sony Corp and Toppan Printing Company have developed an optical disk primarily from paper and capable of storing larg volumes (25 GB) of high-definition images.

While this sounds good, the article doesn't provide more background information. We just hope that recycled paper can be used for the discs and disc in their current format could provide hope for the trees. Disc made from paper doesn't seem to give much hope for trees and forests.

(By Asia Business Consulting)

Corporate Culture at Samsung and LG

Samsung and LG are both rocking conglomerates in S-Korea. We wrote yesterday about the tremendous success of Samsung, and the Korean Herald today describes the difference of these two companies in terms of culture.

The report is based on an online survey of 18,000 college students. LG is associated with trendy females, and Samsung with formally dressed corporate businesspersons.

In LG Electronics, employees wear casual but are not allowed to go beyond certain levels.

But then, if you remember, yesterday's write up described the strong growth of Samsung and in the hidden empire of Samsung, there is a group of 110 employees, working in the design area for mobile phones. And they are on their own, so to speak, isolated from the "conservative" culture. And they rock - they can do what they want as they are the ones that bring out the inspiring ideas for great products - they come up with the design and they ask the engineers to put in the functions and displays of the phones. It is said that they are trendy 20-somethings with platinum-dyed hair and baggy hip-hop style jeans. So here we go - a crucial part in Samsung is "liberated".

Of course, you have another Samsung - the one that is in semiconductors, were discipline is required.

Two more points drive home the statement that the companies see the world different. LG's slogan is "Great Company, Great People", while Samsung writes "Being with the Customer, Challenge to the World, Create the Future."

Both great companies, both differently positioned and both successful - but also a testimony that culture is important to stay ahead of the game. By the way - have you checked your cultural situation recently?

(By Asia Business Consulting)

Global handphone market

The global handphone market sure is an exciting area to observe. Until recently, Nokia seemed to be the undisputed leader, as companies, such as Motorola stumpled and Siemens phones were close to disappearing. Ericsson had to combine operations with Sony, in order to survive. From the lower end coming was Samsung, initially, and numerous smaller handphone market producers from China started to enter the market.

Recently, and is often happening to giants in an industry, Nokia began to stumple. since The most exciting one was and is Samsung - its sales are practically flat since about three years, and it failed to attract buyers to the upper end of the market.

Samsung, on the other hand, is booming, and it is expected that the company announces growth of 62% for the first quarter of 2004 . It plans to roll out 130 models in 2004, compared to Nokia's 40 - gaining visibility in retail shops and thus creating top-of-mind awareness. It has developed a strong focus on the high end of the market, and puts features into place that are wanted by consumers.

It speaks for itself that the head of Samsung's handset business says:"We believe in creating the wave, not riding it" and, "Cellphones aren't like any other electronic devices. There isn't a single other electronic gadget you have around 16 hours a day, every day of the year. Consumers are developing a strong emotional bond with their handsets." (AWSJ, April 15, 2004).

Our comment? Just great - right attitude, a will to execute and the spirit to go the distance!!

(By Asia Business Consulting)

Satyam Comuter Services Ltd investing in Malaysia

Satyam is an Indian consulting and IT services company. The company is working in 45 countries and employs 12,000IT engineers.

The company is just one example of a changing environment, where companies from countries formerly described "Third World" start expanding overseas.

The company just announced that it is going to invest in Malaysia, transfering its outsourcing work to the country. Yes, you read correctly. It transfers its outsourcing line - a move, thus, from India to Malaysia. A triumph of globalisation, and successful triggle-down effects.

(By Asia Business Consulting)

Who will get Proton in Malaysia?

Malaysia's car market is the biggest in Southeast Asia - however, Thailand is rapidly building itself up as the Detroit of the East.

Over the last couple of years, Proton as a local company lost market share to its competitors, Perodua, another local company, but also against foreign competition. This despite the fact that the company is still heavily protected by duties imposed on foreign imports. Foreign imports gained due to cost efficiencies in operations gained elsewhere that probably allowed them to pass on savings to their Malaysian customers.

Proton reshuffled its organisation during this week. Under the reorganisation, Proton swapped shares with a new holdings company, called Proton Holdings, which will have four divisions, namely manufacturing, sales, engineering and ancillary equipment.

Its CEO was under fire to resign, but he stayed in power, while the number of members in the board of directors was reduced. As new advisor appointed was former Prime Minister, Tun Dr. Mahatir Mohamad, who kind of established the company and defended its independence in earlier years.

Over the years, there always were rumuors that Proton as a company would have to allow a foreign stakeholder to enter the company - and it always denied. And so did other foreign market players that were mentioned. Until recently, Mitsubishi had a larger share, but they sold most of it already. Proton's leadership states that they would only look for strategic partners, not to sell a stake - which could be, given the fact that they had a kind of unhappy relationship with Mitsubishi.

Which player could come in? Nissan is looking at other partnerships in Malaysia, so they will also be out of the picture. Mitsubishi and via it, DaimlerChrysler, won't have much interest - they sold off the stake they had, and Daimler is already in big trouble. Ford? May be, but they also struggle at home. Now General Motors is in discussion, and they deny their interest. Another European brand, like Volkswagen? The company is kind of weak in Asia, beside China.

Something will surely come up in the next couple of weeks - if someone denies too loud, some truth is always in it - let's see about it. Or, do you have any suggestions?

(By Asia Business Consulting)

Lucky telephone number 135 8585 8585

The price for this telephone number? More than US$1 million - auctioned from the China online auctionside Eachnet.com, with a starting price of US$12.

Well, the number loosely translates into "let me be rich, be rich, be rich, be rich" - but it is quite a heavy sum to stay rich in the first place. Luckily, people don't change number that often !

But Eachnet.com also stated, that an offside negotiation between buyer and seller might come up with a different price altogether.

(By Asia Business Consulting)

Daum Communications sues Microsoft

One more hit against Microsoft. Daum Communications of Korea sued the company for US$9 million in an antitrust suit, demanding that Microsoft unbundles its Microsoft Messenger Software from its Windows XP operating system.

This is just one shot in a market where Daum Communications, MSN, a company called Naver.com, Dreamwiz and Yahoo compete in the Korean instant messenger market.

It is just that Microsoft is such a favourite target!

(By Asia Business Consulting)

Open Korea

Korea's Chaebol's (or conglomerates) became famous during the economic crisis of 1997, as many of them developed in a free-wheeling and uncontrolled way driven by a strong need for expansion, which was very much government supported.

Korea nearly collapsed during the crisis, and a huge IMF loan brought it back onto its feet. The economy became consumer driven, banks, which provided money to chaebol's before the crisis, targeted their policy to consumers. Here, another challenge might open for the economy, because many of them are now close to default, but this is another story.

Korea restructured the economy, which was accompanied often by pain - rising unemployment, labour unrest and company collapses - Daewo might be just one example.

But they opened up the economy and cleaned up - still clean up, the remainders of a past gone. during this time, foreigners were allowed to take over companies or acquire stakes.

An article by the Korea Herald showed the strength that foreign companies have gained in this
Asian powerhouse:

Samsung: 57.1%
LG 32.9%
Hyndai Motor: 47.4%
SK: 42.8%
Hanjin: 28.9%
Hanhwa: 18.1%
Hyundai Heavy Industries: 19.3%
Kumho Asiana: 8.8%
Doosan: 1.6%
Dongbu: 19.3%
There is a correlation between economic booms, opening of an economy, and general per-capita growth. And probably confidence. Korea contrasts with Indonesia, for example, which, over the past couple of years, meddled with the sale of stakes in some of their companies and never really managed to take off after the crisis. Change is painful, and of course, some countries don't like to see when their companies "end up in the hands of foreigners". But it happens all the time, in the West and in the US. Companies rise and fall and so do countries.

(By Asia Business Consulting)

China's rural labour force

This number floats across the news wires since a couple of days - apparently, there is a rural surplus of 150 million labourers in China. This is dramatic - compare this with the total population of the US - which is slighly more than 200 million, or the whole population of Western Europe, which totals about 450 million, if I am not totally wrong. But the 150 million in China that is the socalled surplus (what a crude word), is part of the 480 million total workforce. And those guys are underemployed or unemployed.

This makes continuous growth imperative - the country needs to have some trickle-down effects of its dramatic growth in the coastal regions to rural areas.

Challenges here?

How to manage immigration from rural to urban centers. Clearly, urban centers are centers of attraction for the population in impoverished areas.
The need to develop a sufficient number of emploment places in rural areas. This can be seen as a tool to slow down migration from rural to urban centers - but it won't prevent it.
Environmental devastation - as rural population grows, it might see the need to develop areas in the surrounding, that are environmentally unsustainable
Overheating of the economy - while the economy needs to grow, there is always the danger that certain segments overheat and bring the bubble down.
It is very important for China to continue to develop the ICT industry. Recent studies indicated that the population in the US migrated lesser than they did earlier - one reason seen behind this could be that there is no need to go to the workplaces anymore, but that ICT enables population to work anywhere anyting. However, it will take a long time for China to get to this stage, as only growth in income allows ICT to flourish.

It would also be good to look to India and see how this country manages the development of its rural sector.

(By Asia Business Consulting)

Video downloading service

We are not reading Japanese, so we are not able to access able to access Rakuten's homepage on the web, which is a pity - well, may be also a hint to the company to translate their webpage, or, if existing, to place a related English Section button on a more visible location.

Rakuten is a leading e-shopping mall operator in Japan and announced that they want to start a music video distribution service. This will be done in cooperation with Avex Inc., a leading producer of CDs and video software.

Costs per music video song is US$1.50, which many might consider expensive. While the selection is still small with only 360 music videos on offer and apparently limited to Japanese stars, it is a start. We wonder how related associations in the US react to this news.

(By Asia Business Consulting)

China growth, and Asean

I just found some interesting statistic that indicate the growing regional integration in Asia - The New Straits Times (Malaysia) reports that exports from ASEAN countries to China grew rapidly in 2003:

Philippines = 58%
Thailand = 55%
Singapore = 41%
Indonesia = 30%
Malaysia = 22%

We have to say that there are some dangers here. China needs a lot of commodity products to fuel its expansion. Al the countries above, on the other hand, struggle to compete with China for their traditional markets, such as the US or Europe. In order to compete with China for markets in the future, ASEAN markets need to upgrade their economies, climb the value added ladder. What we are worried about is that those growth numbers might put companies in a nice slumber - and that they will wake up rudely in a couple of years time and forgot to undertake necessary steps to bolster their economic business foundations.

(By Asia Business Consulting)

Amazon.com launches A9.com

Amazon.com finally launched it, a search engine that might place it in competition with all the other search engines, speak Google or Yahoo. Difference here? It is even simpler than Google.

It is a search engine that is tied-up with the bookstore in the manner that it shows you leads users directly to books and the search can actually go to the relevant bookpages after signing in. It also keeps your search history, if you signed-up for it -both great features, that keeps you coming back and might drive traffic to Amazon and benefit their sales.

In addition, one can take notes on any webpage, like a diary, if one installs the toolbar as well. Which works similar to their book review - which lets people evaluate books - now users can evaluate webpages - does this finally take the rubbish out of the Internet? It also helps in the sense that it provides links like - people who searched for this, also searched for that... Can be a useful feature, overall.

(By Asia Business Consulting)

Question here - how many toolbars do I need as a user? Yahoo is offering one, Amazon now and so on and so on.

Overall, the search engine is great bu there might be a lot of privacy concerns that come up, as it happened with Google's GMail ?

But the search engine market gets crowded with good players. The entry barriers are down, so where does this now leave Google and Yahoo?

Google and GMail

I didn't write about it for a while, but now, there is a lot of concern going around that GMail by Google would invade your privacy. It might - we admit that, although the service is not yet out. But then, if you are concerned about privacy, sign up somewhere else? There is Yahoo Mail with 6 MB and Hotmail with 2 MB. Are you sure they don't read your mail? Access it? How do they know it is Spam or not and filter it out? Have you customised your own personal Yahoo webpage? According to your profile? Do you feel secured and is your private issues safe? Uploaded pictures to your online photoalbum? Signed up for Friendster or any other dating service? Remember the discussion about the Passport feature in Microsoft?

I wrote earlier, that SMS is being saved by telecommunication companies. How do you know, they don't read and measure the text for clues with their CRM software?

I also wrote earlier that employers snoop on employees and their habits of browsing the Internet or even read their mails - where is the uproar here?

Sun Microsystems CEO once said something about privacy in the Internet - I am not getting the full quote back from my memory, but it was stating that users of the Internet can forget about privacy.

As sad as it is, Big Brother knows a lot about you already. May be the discussion about GMail is good - but may be we should widen the net - I mean, the discussion to include other issues as well. Or start with GMail and work our way up the line.

(By Asia Business Consulting)

Reputation, the value chain and personal branding

I don't know how you feel about it, but it happens more and more often to me that people in an elevator see you coming and still, they try to close the door in front of you.

It happens twice to me this week alone - never happened that often before in Kuala Lumpur. And it is not done accidentally - I reach the elevator and can see the persons inside - mostly, it is only one or two.

And they look guilty, knowing that this wasn't the most polite way of treating others.

Does this enhance ones own personal reputation? No - since it might be possible that I see them again, will recognise them, and talk about them to my friends around.

It is like a car that cuts in front of you, speeds and threatens others or behaves "unruly" and you can see that they have a promotional emblem somewhere with a company logo. Does it make the company look better for you? Or would you remember this incident?

(By Asia Business Consulting)

Dell interview in Fortune Magazine

You just "gotta luv this company". Fortune interviewed Michael Dell, founder and new chairman of Dell, and Kevin Rollins, the new CEO.

One of the questions asked by Fortune inquired about workload sharing and who is travelling where, when there is need to travel.Kevin's response was nice, but Michael Dell just said that "they pull out the strategic management tool. That's a coin with my name on one side and Kevin's on the other."

But, joke aside, they also talk about the need to invest in countries and offshore, if needed, to those countries (e.g.; India), if a company actually wants to make money there as well. so, if Dell wants its products to be sold in India, it also needs to have a presence there, needs to globalise. Another point that we loved was the discussion about productivity growth - they bring the example that in the US about 3.5% of the global population is living, but that the country needs to increase its productivity to keep its share of global wealth of 53%. Interesting point, for sure!

(By Asia Business Consulting)

IBM grows stronger in offshoring business after acquisition

IBM Business Consulting just announced the acquisition of a call center outsourcing firm in India, called Daksh.

Daksh has about 6,000 employees and is the third largest BPO company in India. Daksh offers call center and back office BPO services.

What are the consequences, or why is this happening?

Well, companies still do outsource and increase their strength in the outsourcing business, despite all what is being said in the US. The train just rolls on, and we need to get used to it;
It is said that this is the first foreign buyout of an Indian BPO business, putting a rubber stamp on the location as first address for BPO.

It could start a first consolidation in the call center market in India, since many local players in India - especially the smaller ones - don't have the funds to expand.

It is interesting to see the movement of MNCs into the market, when on the other side of the Atlantic, Indian companies begin to locate close to the US - speak Canda - or even in the US - something which is called nearsourcing.

The same day IBM announced the deal, Infosys Technologies, the second-largest softwre maker in India announced that they would invest US$ 20 million in the US to create jobs - high end jobs - in consulting. While this overall wave might still be small, Asia Business Consulting expects such deals to grow, when the US economy gathers steam and expands further.

(By Asia Business Consulting)

VOIP in China

The Asian Wall Street Journal (AWSJ) shows that China leapfroged the US and Europe in the usage of VOIP.

The reasons are pretty clear :

The country is vast and for a long time, there was hardly any fixed line connection in many parts of the country. It is of course easier now to initiate the deployment of the newer technology first. The carriers that came into being 5 years ago after the deregulation of the industry in China save a lot of cash installing Internet based equipment instead of traditional switches. Thus, they didn't experience the conflict of interest players in the US experience, who see VOIP (or other technology for that matter) as threat to their business model.

The economic growth of China. It is raising ahead with an annual GDP growth of 8% or more. So more and more people crossed the line to the middle class - China was hugely successful in eliminating poverty. And naturally, those people want to have telephone services. The AWSJ writes that of the 300 million with phone services in China today, just over half of them got the service in the past 4 years;
Accompanying this point is a general price decline in the service - AWSJ quotes that the costs for domestic long-distance calls is less than a "Nickel" per minute and that a call to the US costs only 25 cents per minute vis-a-vis US$ 1 a few years back.

We are not commenting on this now, as the numbers speak for themselves. Anyone who wants to comment?

(By Asia Business Consulting)

Bad apples in the outsourcing business

BBC runs a report today about mounting privacy concerns for data within Indians call centers. Apparently, criminals offered personnel in those call centers large amount of money to get access to credit card data.

Let’s reiterate the overall picture in the call center industry:

The industry is booming, and that means that there are a lot of market entries from good, and also from bad companies. They hire and hire and hire – just to fill the seats in the centers. The question is what do they do to ensure the quality of those that are hired – do they just hire anybody who walks into the door, or do they have certain procedures and backchecks? Companies might outsource to cut costs. Now, the speculation is possible that if one company wants to save costs, they might do this firstly, by outsourcing in the first place (also outsourcing does not necessarily save costs), and secondly, they might look for a cheap service provider in India, China, Malaysia or the Philippines. And it is here, where the trap is opening – a company can quickly choose the wrong provider.

What to make of this? Well, as usual, companies planning to outsource need make sure that their overseas partners are reliable. Not just the technology, but also the people employed. They might want to check some of the recruitment and training procedures in call centers.

(By Asia Business Consulting)

Sushi and women

In China, a Japanese restaurant was reprimanded as it served Sushi on the naked body of two women. The restaurant manager stated as reason, that the “purpose of this promotion was to spread Japanese culture.”

Thank you very much – I thought Japanese culture would look differently. Japanese food is great, their technology fantastic – just think Sony.

But the serving of food on the body of naked women? I don’t think that this has much to do with culture.

Sorry!

(By Asia Business Consulting)

Great news - Education gets a boost

Intel is riding the wave. Education is one of the key pillars of an economy to keep booming and climb the value added ladder. While this is recognised globally, far too many countries still see education and associated costs for the government as a burden to the society – roughly speaking. Just look at countries like Germany, once the economic powerhouse of Europe, but with a rapidly deteriorating education system. This decline might even correlate with the recent economic troubles of the country.

IT systems integration into schools – and from early ages onwards – is a sure bet for a country. Just look around and see the many activities offered to children before primary school, that involve IT.

Craig Barrett, Intel’s CEO now urges governments in ASEAN to further educational systems through better use of IT.

To quote: “"Working together, we can train 1 million teachers to integrate technology into lesson plans, outfit 100,000 schools with wireless communications and computing capabilities, and deploy 10 million computers in classrooms over the next five years in Southeast Asia.” Graig is famous for his rantings on the short comings of the US educational system - is he on his way to develop a new career?

(By Asia Business Consulting)

Is this the end of the security guard as we know him?

There are always stories around that promote web-based surveillance of ones own property while away at work. Advertisements picture users peeping into their computer and have a view on their garden, living rooms, to see, if there are burglars in the house, or the grandma checks, if the children are doing their homework. At least, something like that.

In Korea, Korea’s largest mobile operator SK Telecom now launches a service that allows subscribers their network to view images of their homes via their mobile phones. Neat – and the system will even send text messages or SMS, if an intruder is detected.()

This is a very possible service in Korea, where broadband is really widespread and thus, such services are viable. How would it look like in other countries? Where there are many black spots still, in mobile service coverage? As such, we don't believe in the end of the security guard as we know him - at least, for now.

(By Asia Business Consulting)

Tech Sites and Customer Service

It happens all the time - one is sending an inquiry to a company or a governmental department via their online webpage. Most of the time, a "Thank You" pops up followed by message that someone would get in touch soon. And than? The waiting begins - and continues, until the person gives up, and tries to find different ways to get an issue solved. Sounds familiar?

Well, CNet Asia reports today about a study by a research and consulting firm based in Welsh (for those who don't know - this is a part of the UK). They examined 61 top computer and services companies, according to a number of factors, such as simplicity, privacy, transparency and responsiveness.

"One third of the companies don't reply to e-mail inquiries and nearly one third share personal data with third parties without getting permission from customers."

The findings don't sound good at all - Hewlett-Packard was rated highest, followed by IBM and Xerox. It is not clear if Asian companies were in the study, so the mentioning of some other companies show that a lot of Western companies were included. CNet also doesn't show the bad apples - so there is no learning from experience for customers in the article.

(By Asia Business Consulting)

Children watching TV

Everybody knows this and everybody still does it - to let children watch too much TV is not necessarily a good thing. Salon.com reports on a study, that states that every hour preschoolers watch TV would increase the chances of having attention and concentration problems by 10% in their later life.

It is just too easy nowadays to switch on the TV and get entertained - Cartoon Channel, Disney etc. The problem is that it is a constant boom, boom, boom - action, action, action, besides the violence. It is also a problem that parents frequently don't highlight the background of the story - if they are in. In Asia, kids are often alone in the afternoon, with parents working and only the maid around. So what is easier than switching on the TV?

One advantage is often forgotten, so - kids can learn English while watching TV. I heard of a lot of children, who mastered the language, learnt it while watching TV. It is the general surrounding or environment that is important - what else is in a kid's environment that inspires them? Do the parents read books, or talk? Bring the children out to places that show diversity and something different?

As usual, everything has its pro and con, and too much of everything is bad. But we had the MTV generation starting in the 1980s and they turned out quite okay. We had the rockers in the 1970s, and the Punks in the Western world. So every generation has its problems - and will get a handle on it. Society will shape accordingly and values change - this might be something that should be studied in much more detail.

(By Asia Business Consulting)

Flextronics International is rocking

I don't know, if you are aware of Flextronics, but the company is rocking. Flextronics is the biggest contract manufacturers with sales of US$13 billion in 200 and it appears that an earlier bet to increase R&D spending during the economic crisis falling the dot.com bust is paying off.

Flextronics as a contract manufacturer makes everything, from mobile phones to building the XBox. This allows the provider to concentrate on marketing, and improving the experience of consumers by developing innovative ideas (okay, this is a very very short definition).

The company focuses a lot on slashing costs and improving operational efficiency in the supply chain. Its Vice President states that "they are constantly looking for fractions of a penny". And this helps in increasing their profit margins in an industry, where big profit margins are an exception rather than the rule. Ultimately, the company is hiring and heavily expanding.

Why do we like the company? Well, because it does a lot of things right:

It increased its revenues, even when the market wasn't good
It increased R&D even so the market slowed down - a strategy that appears to frequently pay off - see Intel, as another example
It doesn't necessarily retrench people to save costs, but focus its attention elsewhere.

(By Asia Business Consulting)

Researching impact of mobile phones

It is not the first time someone looks at the impact of mobile phones on our lifes, and it won't be the last one. But it is the first time, that someone is actually establishing an institute to degain a better understanding, and that is great. NTT DoCoMo, the leader of mobile communication in Japan, and a major innovator in the industry, is just doing this, as has been reported.

Okay, they are not stating the funds the institute is receiving, and who is employed in it. But at lesat they are saying that the institute is independent from DoCoMo's business.

The objective of the institute is to gain an understanding of the upsides of mobile phones and its downsides. And to identify ways to increase the upsides and to limit the downsides. If it is successful, may be I will never get any spam send to my mobile? And they will identify ways that a mobile phone will be a real and true experience? And the institute will show me ways to limit the impact of those whose mobile rings, while they are in the cinemas, or elsewhere, where a handphone is just troublesome? If this is happening, it would be great!

(By Asia Business Consulting)

Indonesia heading for elections

It is a huge country, expanding over several timezones. To picture it for our readers outside of Asia, it is as big as if you would take a plane in Lonon and fly down to turkey. That's how big the country is and that's also a showing for its diversity. Over 220 million inhabitants, and 147 million Indonesians are called for in the elections.

Indonesia needs stability - urgently. Okay, the Rupiah, its currency, stabilised under the rule of Megawati, the current president, - it is now 1 US$ to Rp. 8,700, and so has inflation, which stands at about 7%. That is great, considering that the rate was once US$1 to Rp. 20,000, during the economic crises, some years back, and inflation was kind of running for a long time. But to blame the economic crisis on its current situation - tremendously high poverty level, high un- and underemployment, declining Foreign Direct Investment - is wrong - this is nearly 7 years back! Korea has made it out of it, Thailand, the Philippines and Malaysia as well!

So what is wrong with Indonesia? May be it is the flip flop over privatisation issues that bogged down the country, the general uncertainty over security issues - think about the bombings in Bali and the hotel bombing in Jakarta. Think about riots on the roads in Jakarta, and the killings in the Moluccas. Think also about corruption, and the surroundings of how Megawati came to power.

This doesn't give the stability, the country needs urgently, and that the President is only elected in a couple of months after the current election let us assume that to reach the goal of stability is still a long walk.

(By Asia Business Consulting)

Congratulations India

I read yesterday in the AWSJ that India's economy grew 10.4% from a year earlier in the quarter ending December 2003.

This is faster than the red hot growth of China, probably making it the fastest growing economy in the world, or, at least in Asia. The growth came through a continued surge in agriculture. While we are not necessarily a fan of supporting agriculture to sustain growth - the terms of trade just doesn't make it in the long run - this is good news for the country, where the majority of people still depend on agriculture and poverty level are high.

So keep it going, India!

(By Asia Business Consulting)

Google offers 1 GB e-mail package

It came across through various message boards yesterday, that Google would offer its users a free 1 GB e-mail box, but was also dismissed as an April Fools joke in many of the blogs and user groups reporting about it. Now Hoovers reports about it as well, and let's hope, they didn't fall for it. What still worries me about this is the huge offer of 1 GB - which makes it too big to be true!

We signed up at Google, to receive news about a possible launch date.

Learning: Never promote great new staff on April Fools Day - just kidding.

The objective is to enable users to never have another e-mail box, and that users would never be in the position to delete messages. As we do know Google, it will have great search capabilities, something that is sorely missing from any available package, be it Hotmail, Yahoo, Outlook or Lotus Notes.

Aside the mails will be ads from companies - robots will finetune the ads to the context of the message.

Does this make Google to look like Yahoo? We hope not!

(By Asia Business Consulting)

MP3 phones in Korea

Just like anywhere else, the Korean Association of Phonogram Producers and Korea Music Copyright Association complaints about online piracy and illegal downloading practices.

This now let to the delay of mobile phones that would have been able to play MP 3 music. Samsung Electronics was suppose to launch such mobile phone today, however, the association managed to to throw some stones into the gian'ts way. They insist that the sound of illegally downloaded music on MP 3 mobile phones would be of lower quality.

It is not clear how they want to control the installation of illegal music on mobile phones to ensure lower quality, but already, Samsung says that eventually, such music should be of the same quality.

(By Asia Business Consulting)

China's steel industry expands

China's economy is red hot, and there is some fear that the economy is overheating. Yeterday wa reported that a GDP growth rate of 9% is very likely for the first half of 2004.

The country sucks in foreign direct investment (FDI) in record rates, and commodity prices all across the globe are rising, just to feed China's hunger - China consumes 30% of global steel consumption. Which is new, considering that they experienced price declines over the last couple of years and were seen as "boring" amongst investors or those looking for jobs.

Now, Chinese steel makers start expanding abroad. Companies, such as Laiwu Steel Group, or Baosteel look overseas for opportunity, into countries such as Brazil, Australia, South America or the US.

Of course they do this to be able to continue feeding their thirst at home. Isn't this called securing the supply lines? And, wait a minute - aren't we scared that they "conquer the world"? No -we are not. They now create workplaces in other countries - the AWSJ reported that un the US, a shuttered Minnesota mine was reopened late 2003 under a new ownership agreement between Chinese steelmaker Laiwu Steel Group and Cleveland-Cliffs to buy EVTAC Mining, which earlier, had filed for bankruptcy and in the process, laid of 400 workers.

This again shows that globalisation creates opportunities, all across the globe, in a variety of locations. And we believe it is great!

(By Asia Business Consulting)

Employers snooping on employees

Over the last couple of years, surveillance of employee behaviour in the workplace has become more prevalent. This relates to checking of e-mails, or banning of certain webpages and may be others, such as installing cameras to monitor their behaviour. Arguments put forward said that companies have a right to protect their assets from hacking attacks, from possible virus attacks and that the monitoring would increase employee productivity. It says that employees wouldn't be distracted and they could focus on their work.

Now comes the backslash from regulators, that were worried about the possible infringement into privacy. The EU is preparing "radical new rules" to prevent Europe's "bosses" from snooping. The directive will force employersto abide by a list of rules to ensure they only invade the privacy of their staff in strictly limited circumstances.

This follows other opposition that was articulated in the UK by the Midland's branch of the Trade Unions Congress. They say that snooping isn't just taking liberties, but pure folly. That productivity would go down, ill-health and sick leave goes up and that the workforce feel more like felons than valued employees. Already, 63% of people in the UK prefer to send personal e-mail from home, as 38% of employes admitted monitoring their employee's e-mail.

Yesterday news wsa published saying that in Australia that employers will be banned from spying on employees private e-mails and that they will be bared from using equipment such as video cameras and tracking devices to cast an electronic eye over "the shoulder of their emmployees". Under the laws, employers will have to show a reasonable suspicion of wrongdoing by employees in order to look at their private correspondence. A survey last month found nearly half the people questioned resented their employer rifling through their emails.

But more than half the people involved used the internet for private exchanges during office hours and a third said they spent between 20 and 30 minutes each day on personal emails. A survey of 100 major companies a few years ago showed that 75% of them were monitoring emails without employees' knowledge.

In the US respondents to yet another survey said that 24% of respondents admitted using a company's computer for sexual or romantic purposes.

Now - what is now the correct position, if there is any anyway? Is surving around the web, playing games during worktime counterproductive? Does the employee as "human capital" belong to the company? Surely, a company needs to protect its assets. Surely, accessing gaming sides, or pornography during worktime is not allowable.

But considering that we are heading towards a new talent war, considering that companies are flatter, and employees empowered, it really is not possible to demand engagement and loyalty from employees when they are monitored, or not allowed to do anything that is not related to work activity. Going to the kitchen and exchanging news with other employees around the water heater was once seen as a way to support knowledge exchange between employees - and wasn't banned.

Employees want to be treated as responsible adults, not as children that need some rules. We are not supporting the access of pornography - don't get us wrong. But we believe that just because a small pecentage of employees might cross the limits, the remainders also need to be monitored?

It is about communication with employees, setting the rules of the game, creating loyalty and supporting responsible behaviour. Develop a social setting in a company, not one that is characterised by fear, and mistrust.

What do you think?

(By Asia Business Consulting)