michael sheldon, ceo demystifying technology, enhancing corporate value & increasing the bottom...
TRANSCRIPT
Michael Sheldon, CEO
Demystifying Technology, Enhancing Corporate Value &
Increasing the Bottom Line
Surviving Hysteria?
Facts & Hysteria
• GOLD– From1833 to 2001 the compound annual
growth rate was 1.54%– From 2001 to now, we’ve seen an annual
compound annual growth rate of 15.57%– Even with this surge, the lifetime annual
growth rate is only 2.4%
» www.kitco.com
Facts & Hysteria
• Foreclosures– 50% of US foreclosures in 2008 came from 35 counties in
12 states– 20% of the US population lives in these 35 counties– Eight counties in Arizona, California, Florida and Nevada
were the source of 25% of the foreclosures– Existing home sales rose to a seasonally adjusted annual
rate of 4.7 millions units in February 2009, and only 860,000 homes were repossessed all of 2008
» USA Today
Facts & Hysteria
– The Stock Market• Investors have made money 100% of the 15-
year periods in the stock markets history• Since 1974, the value of the S&P 500 has
grown 1,250% from 63 to 850 (5/15/09 = 882)
Facts & Hysteria
• The Great Depression and Recent Recessions:
– 1938 -40: Unemployment grew to over 17%, the Stock Market dropped 89%, and bread lines were real; executives didn’t fly Gulfstreams to Washington D.C. looking for bailouts (Historical Statistics of the United States, Colonial Times to 1970. US Bureau of the Census 1975)
– 1974: The Stock Market dropped 50%, gas lines snaked around the block, and inflation became stagflation, i.e. inflation in a stagnant economy
– 1982: Inflation was over 10%, unemployment was over 10%, and the interest rate reached 17% on home mortgages (www.miseryindex.com, Freddie Mac)
– 2009: Unemployment is at 8.5%, there is no inflation, and the home mortgage rate is 4 3/8%. The Stock Market dropped 57% but it has recently risen from a low of 6400 to over 8,200 (US Department of Labor, www.usinflationcalculator.com, Yahoo Finance)
Did You Know?
…we are living in exponential times
If you were one in a million in China…
….there are 1,300 people just like you.
…we are living in exponential times
China will soon become the #1English speaking country in the world
…we are living in exponential times
The 25% of India’s population with the highest IQ’s
…is greater than the total population of the United States.
Translation: India has more honors kids than America has kidsTranslation: India has more honors kids than America has kids
…we are living in exponential times
The top 10 in-demand jobs in 2010…did not exist in 2004
We are currently preparing students for jobs that don’t yet exist, using technologies that haven’t been invented, in order to solve problems we don’t know are problems yet
…we are living in exponential times
The U.S. Department of Labor estimates that today's learner will have 10-14 jobs
…by the age of 38
…we are living in exponential times
1 in 4 workers has been with their current employer less than one year
1 in 2 have been there less than 5 years
…we are living in exponential times
1 in 8 couples married in the U.S. last year met online
…we are living in exponential times
There are over 200 million registered users on MySpace
If MySpace were a country, it would be the 5th largest in the world.
(between Indonesia and Brazil)(between Indonesia and Brazil)
…we are living in exponential times
Estimated that a weeks worth of the New York Times contains more information than a person was likely to come across in a lifetime in the 18th century
…we are living in exponential times
It is estimated that 4 Exabytes (4.0x10^19)of unique information will be generated this year – that is more than the previous 5000 years
…we are living in exponential times
# of years to reach market audience of 50 MillionRadio 38 YearsTV 13 YearsInternet 4 YearsiPod 3 YearsFacebook 2 Years
…we are living in exponential times
The First commercial text message was sent in 1992
…we are living in exponential times
Today the number of text messages sent and received everyday exceeds the total population of the planet
…we are living in exponential times
There are 31 billion searches on Google every month…
…in 2006 the number was 2.7 billion
…we are living in exponential times
The number of Internet devices in 1984 was 1,000
The number of Internet devices in 1992 was 1,000,000
The number of Internet devices in 2008 was 1,000,000,000
…we are living in exponential times…we are living in exponential times
The amount of new technical information is doubling every 2 years.
…we are living in exponential times…we are living in exponential times
That means for students starting a 4 year technical degree, half of what they learn in their first year of study will be outdated by their third year of study
…we are living in exponential times…we are living in exponential times
NTT of Japan successfully tested a fiber optic cable that pushes 14 trillion bits per second down a single strand of fiber
…we are living in exponential times…we are living in exponential times
That is 2,660 CD’s or 210 million phone calls every second.
It is currently tripling every six months and is expected to do so for the next 20 years.
…we are living in exponential times…we are living in exponential times
By 2013, a super computer will be built that exceeds the computational capabilities of the human brain.
Predictions are that by 2049 a $1,000 computer will exceed the computational capabilities of the entire human species
…we are living in exponential times…we are living in exponential times
During the course of presenting these tidbits of information
67 babies were born in the U.S.274 babies were born in China395 babies were born in India
…and 694,000 songs were downloaded illegally
…we are living in exponential times
US population * (US Census estimates) 2010 estimates 310 million2030 estimates 380 million
For Construction:…Estimates that by 2030 more than 50% of all buildings will
have been erected post 2007
What does it all mean?
• Change is inevitable• Part of your responsibility…like it or
not, is change management• Technology is part of change…shaping
it, enabling it, forcing it• Therefore, part of your job requires you
to deal with technology
Reality
Reality
2 schools on Technology
• No way, no how, no technology…period• Been there, done that, doesn’t work!
…if you have bought into technology and it is working for you…
…why are you here?
No Way, No How!
Sometimes AKA: “I’ve got a guy who is doing something for us in EXCEL”
Managerial AnemiaNot actively looking to improve or evolve the success of the
organization through continuous improvement, exploration and adoption of best practices, etc., is irresponsible stewardship
Resistance to changeUnable to change
Been There, Done That…
Timing and trap of technology…Inadequate understanding the processes to be
automated The application did not fit the process(es) intended
to improveThe users were unwilling or unable to
accept/adopt/use the technology/applicationIncomplete due diligenceWhat was available at the time may not solve the
problems
Reality
Reality
Reducing costs• You have to know your processes, and have a critical
eye towards improvement• First focus on the before and after…not the technology• Be modular – review process and steps which are
duplicated elsewhere, are manual, inefficient, administrative and repetitive
– Bid Mgmt– RFI Mgmt– Payment Mgmt– Project Mgmt– Accounting Mgmt– Document Mgmt
…Then ask and seek what can be automated
Reducing costs
Typical bill paymentA.)Receive and review billB.)Write and sign checkC.)Stuff envelop and affix
stampD.)Take to mail boxE.)Wait for check to processF.)Wait for bank statementG.)Reconcile account
Steps A-D…5-10 minutesSteps E,F,G…30 days
ONLINE bill paymentA.)Receive and review billB.)Log on to bank/payee
websiteC.)Select PayeeD.)Type in amountE.)Press “send”F.)Wait for payment to clearG.)Reconcile account
Steps A-E…<5 minutesSteps F,G…<2 days
Don’t Lose Profits Because of Inefficiency
Don’t Lose Profits Because of Inefficiency
Don’t Lose Profits Because of Inefficiency
Empower the team with technological collaboration
Mitigate Risk
Business Challenges
All Related to Reducing Costs
Focus on Efficiency
• Due Diligence for the use of technology– What do I want to improve?– What can I automate?– Can technology and automation replicate
my current process or do I have to change the way I do things?
– Is the change going to have positive or negative impact on employees and productivity?
Business Challenge:Seeing and Responding to Change with Agility
Business Challenge:Optimizing Resources
Business Challenge:Reduce Complexity
Intelligent Use of Technology
“IT will only [continue] to be a differentiator for construction
companies that use it intelligently.”Mark White, Construction Executive