Topics Include: Technology Tidbits, Innovation in a Downturn, Hodgson Launches TANDBERG Initiatives

Technology Tidbits

London is the Capital of Twitter

A recent BBC's Newsnight program reported that London is the top Twitter-using city in the world for the second year in a row, beating out even techno-nerd capital San Francisco for the honors. Who knew the English had so much inane chatter to share? Well, perhaps a few folks in Hodgson's offices had an inkling.

Google Brand Worth $100 Billion

Millward Brown Optimor recently released its annual brand ranking BrandZ Top 100, which identifies the world's most valuable global brands as measured by their dollar value. Leading the list was Google, whose brand was valued at a whopping $100 billion. Microsoft came in second with a $76.2 billion valuation, and Coca-Cola came in third with a brand valuation of $67.6 billion. The complete report breaks down brand valuations in categories in case you want to see how your favorite car, beer, retail store, etc., ranks in brand value.

Innovation in a Downturn

If the current economy is playing havoc with your current business model, maybe that's a good thing. A recent report from McKinsey states that great technological strides often come in the midst of an economic downturn. Digital computers were invented during the Great Depression, the Ethernet during the 1970s oil crisis, and IBM personal computers in the early 1980s recession. Despite what Al Gore says, the World Wide Web really emerged from the recession of the early 1990s, and it was during the last recession in the early 2000s that innovative companies like Apple, Amazon, and Google began staking out leadership positions with iTunes, "cloud computing", and links between search engines and advertising.

It's usually during a recession that competitive pecking order changes dramatically. Nearly 40 percent of the US industrial companies in the top quartile of their sectors lost their place in the 2000-01 recession. Most often, their reversal of fortune happened because the company wasn't able to adapt to new ways of doing business.

While the internet was at the heart of the dot . com bubble and the last recession (I know, I was there), this time around its innovations are setting the stage for new growth. Here are the two technologies that I think have the most potential for changing current business models:

• The expansion of broadband data networks and of social applications–both wired and wireless–which have become nearly ubiquitous. No longer just for social networks–we are seeing a significant and growing use of the technology to connect professionally, share knowledge and collaborate on work projects. Examples as diverse as the current mobile phone application development system and the trend toward having consumers' rate products and participate in product development show how digital workplaces are creating market efficiencies.
• The development of tiny, embedded sensors that are built into products and that help create sources of new data across these expanding networks. New "smart" products can self monitor, track usage, and be sold much more efficiently. Airplane manufacturers are now selling thrust, rather than engines. Guarantees on product "uptime" can now be made, based on sensors that alert when maintenance is needed. What used to be marketed as a product is now a service.

During a downturn, there's a tendency to want to manage for survival. But, in doing so, make sure you aren't managing so conservatively that you miss a competitive opportunity. Major innovations can create new business models and result in competitive advantages that can be sustained long after a downturn has passed. Play your cards right and maybe your organization will be leading the next BrandZ Top 100 listing.