Category Archives: Miscellaneous

Cambrian House: Crowdsourced Software

Not long after my Crowdsourcing post in the Purchasing Innovation series went up over at e-Sourcing Forum, JR posted a comment letting me know that a company up here (North of the Border) was already doing it commercially, in one of Canada’s IT hotspots (although you might not know it if you visited during stampede week). Cambrian House, located in downtown Calgary, has been up and running since February and has already turned out some revenue generating products. To date, they have launched CVR for Parents, AdWord Alerts, Pod Blast Video, Prezzle , Renoworks Homeowner Edition, Desktop Playground , and Cambrian Code.

It’s true that a couple of their projects have already been suspended due to lack of interest, but its also true that some are going stronger than ever. One of the advantages of the crowdsourcing model applied to software is the ability to greatly accelerate initial development lifecycles and get working betas to market really quickly. Instead of waiting months or, more often, years to find out if a new product idea is going to fly, you can now have the answer in months, or sometimes even weeks!

Furthermore, they’ve also proven that when crowds of like minded people get together, they can have an impact on communities, locally and globally. They’ve already made charitable donations as an organization, including one to the local Mustard Seed (a non-profit, Christian humanitarian organization that responds compassionately to the needs of the inner-city’s less fortunate) and fed Google worldwide.

So how does Cambrian house work? It’s simple. An idea is submitted, be it from an employee, an advisor, or a random individual who stumbles across the site, the best ideas (as judged by the team) are thrown out to the crowds (through the world wide web) to test and comment on, those that get traction are then built by development crowds constituted of those individuals interested in seeing the product brought to market, Cambrian House handles the sales and marketing, and those who worked on the product (including the idea generator) get royalties. And for those who like graphics, Cambrian House has a nice assembly line graphic (Flash 8 required) for you.

Right now, most of the projects are pretty small – but there’s nothing stopping crowdsourcing from working at the enterprise level. After all, viewed the right way, it’s just a logical extension of open source development, the difference being that the contributors get paid (allowing them to develop the software they want to work on full time, instead of in what hours they have left after fulfilling the requirements of their full time job, since we all need to pay the bills) and there is a support organization to help them market and sell the product, allowing them to do what they do best – develop great products!

In my crowdsourcing post, I predicted that “the view of sourcing will slowly shift from that of a reactive business unit that aggregates needs and demands into a proactive business unit that is looked upon as an enabler, problem solver, and even forecaster of future trends and consulted by the other units of the business“. In software terms, where many professionals now work as contractors and independent consultants, I believe that the innovative organizations will shift from outsourcing projects to big traditional consulting firms that throw whatever warm bodies happen to be on the bench at the time at the project, with varying degrees of success, to using crowdsourcing firms that specialize in large-scale and distributed project management and bringing together the right resources for the task under the crowdsourcing model.

EPEAT: Electronic Product Environmental Assessment Tool

EPEAT, short for Electronic Product Environmental Assessment Tool, designed to identify high-performance, environmentally friendly computer equipment through an online, searchable database, goes live today.

As per a recent press release, “The database lists products that meet the tough new green computer standard for desktop computers, laptops, and monitors. EPEAT is as easy-to-use evaluation tool that allows the comparison and selection of electronic products based on environmental attributes, in addition to cost and performance considerations. EPEAT-registered products meet minimum performance standards in areas such as energy efficiency, toxicity reduction and material selection.”

In addition, “EPEAT is already referenced in $32.25 billion worth of computer contracts, including contracts issued by the Department of Defense, Department of Homeland Security, NASA, the Commonwealth of Massachusetts, and the City of San Jose, California.”

As you are well aware, I am a big fan of going and staying green, so I applaud the construction of a publicly available resource such as this.

More information is available on the website, and, according to the press release I received, if you still have questions, you can contact Kiren Gopal.

Si, Se Puede! (Yes, Procurement is Able!)

While browsing through the European Leaders Network portal earlier this month, I came across the article “Firms yet to realise procurement potential” and then the article “Increased competition for procurement professionals” in rapid succession. To me, the connection is obvious. As Tim Minahan points out in Supply Excellence [WayBackMachine], great supply management organizations use a simple strategy to stay on top: buy the best talent.

The first article notes that a recent study by PA Consulting Group found that only a quarter of leading organisations have realized the full potential of best procurement practice and that current firms are focusing too much effort on reducing procurement overheads, which does not deliver significant benefits. After all, as the study explains, “The disproportionate focus on reducing procurement overheads risks undermining the ability of many organisations’ procurement functions to deliver significant sustainable benefit.”

The quoted study concludes that CEOs and CFOs must invest in procurement capability through restructuring the procurement function in order to achieve a genuine transformation. This transformation can be achieved by extending the capabilities of their staff, rotating them to increase awareness, and recruiting to fill identified skills gaps.

However, what it overlooks is the importance of having top performers on your team to lead the way and mentor your junior staff. The reality is that top results often come from efforts led by top performers who have the best ideas and the most relevant experience and expertise in the job they do. I believe that is the main reason competition for professionals is heating up, as pointed out by the second article, which notes that competition for procurement professionals has hit an all time high.

The second article references the 2006 Salary Survey by recruitment company PSD and supply chain consultancy State of Flux that found competition for high-calibre procurement professionals has risen as more companies demand candidates who have well rounded commercial skills in addition to their purchasing backgrounds. The survey found that salaries in the technology and banking sectors are up ten percent while regional senior salaries have risen five percent.

Given the constantly increasing demand for experienced procurement professionals and the limited talent pool, what can you do? Focus on retaining the top performers that you already have and on moving them up into senior roles where they can help you groom your future all-stars into top performers down the road. After all, as Dr. Joseph Robert Carter, the Avnet Professor of Supply Chain Management and Department Chair at the W.P. Carey School of Business at Arizona State University, says, the key to great supply chain performance is to 1. Train your existing team. 2. Repeat step #1.

*Si, Se Puede!, a famous quote attributed to, Cesar Chavez translates as “Yes, we are able!”

Staying Green

About a month ago in my Sourcing Innovation series, I wrote a post entitled Green with Envy that described the many benefits a buying organization can achieve by “going green“.

It looks like this trend is here to stay. In Wired’s recent article “Carbon Killers”, they point out that for some companies, going green is generating serious greenbacks.

GE has currently pledged to roll back their greenhouse gas emissions 1 percent by 2012 (as compared to a projected rise of 40 percent). Why? In addition to reducing waste, reducing energy costs, avoiding environmental taxes, and reducing production cycles, green policies are starting to pay huge dividends in public relations and marketing buzz. For example, FedEx has announced plans to cut emissions through the use of hybrid delivery trucks. Furthermore, the global market’s appetite for green technology is heating up. If you are a US multi-national, chances are you want to do business in Europe and Asia, regions that have not only accepted, but are enforcing, the limits on greenhouse gases imposed by the Kyoto Protocol. (With 164 countries agreeing to the protocol, it’s not something you can ignore if you want to do business globally.)

After all, with the climate already changing thanks to global warming, as per this recent CNET news article, the smart money eyes climate change. The smart companies are trying to mitigate risk and seeking out opportunities in fields such as clean energy. Climate change and associated policies that arise to deal with it are going to fundamentally alter the makeup of many world economies. Companies that fail to embrace this coming change will probably lose out in the long run, therefore going green now is a good way to ensure a successful future.

Fortunately, going and staying green is becoming a whole lot easier with technologies produced by companies such as Atlanta-based CoalTek Inc.. CoalTek has developed a patent-pending technology that can convert raw-coal into “designer coal”, by way of electromagnetics, that contains less moisture, ash, sulfer and mercury. This allows the coal to burn more efficiently and cleanly, reducing energy costs and pollution. CoalTek is not alone. Denver-based KFx Inc. is also in the clean coal market. Furthermore, earlier this year Southern Co. and the US Department of Energy launched a $557M coal gasification project in Central Florida designed to produce the “cleanest, most efficient facility” in the world when it is completed in 2010.

Furthermore, as the CNET article points out, like health issues related to asbestos and tobacco did in the past, climate change could lead to lawsuits and target companies that either contribute to global warming or did not take sufficient steps to address regulations.