Issue 200 - When There is Blood in the Streets

Several weeks ago I wrote about "Reflections 08" In this issue we will focus on Outlook 09. One of my vendors (Progress Software) recently invited me to attend a Conference in Florida for their Application Partners. The keynote speaker Adam Fein (www.pembrokeconsulting.com) spoke about his publication Outlook 2009. Today’s newsletter will focus on Adam’s thoughts about our current conditions.

Blood in the Streets In our meeting with Adam he focused on the current conditions and how it will affect investments in hardware and software which was the focus of our Conference. He feels through his research the current credit crunch will have a negative impact on investment in Information Technology.

That obvious result being said it was more interesting that the SMB (small, medium business) market in his opinion will be increasing their investment in Information Technology. Why is that? Well one of the factors is small businesses (defined us under 50M) where most of my readers are unlike large Companies like Ford, GM and Microsoft to name a few are loath to lay off people because they tend to be family businesses and operate with a little more care and understanding then those other guys who just look at numbers and cut out quickly people so they can align their cost cost structure to their reduced revenue . Pleasing Wall Street and stockholders are usually things not in the front of our minds in running our businesses therefore we focus on how to squeeze blood out of a rock.

According to Mr. Fein in a recent survey of 150 wholesale distributors nationwide (under 50M Revenue) in a variety of markets he found the following when asked what was the most important outcome of increased spending in Technology.

Spending Outcomes

Mr. Fein then made the following points for End User Strategies for surviving the slowdown:
(Editors Note: You folks are the end users)

Improve Productivity (by spending ), #1 point in survey
Improve Productivity (by cutting)
Be cautious with credit
Strategic acquisitions of people and Companies

As Mr. Fein stated “Companies with the skill, the will, and the till will succeed in this environment”

In closing thanks Adam for the great economic insight you have brought to our readership and all our readers need to heed where they are at so they can position themselves in a positive way to come out stronger than they came in.

About Adam:

Adam J. Fein, Ph.D., is available as a speaker or facilitator for corporate meetings, retreats, conferences, and tradeshows on a for-fee basis. Dr. Fein has delivered over 250 presentations to an estimated 55,000 executives from a wide range of industries. He also provides high-level Executive Briefing planning sessions for executives and their board members during retreats or other corporate events.

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