VOLUME 1, NUMBER 3 | FALL 1998
DataWorks and Platinum Merger Ahead Platinum Software and DataWorks Corporation will soon merge into a new, more formidable company that addresses the midrange market for enterprise resource planning (ERP) systems. While the announcement was a shock to many, including Wall Street both companys' stock dropped the next day a sobering look at the market in general resulted. George Klaus, Platinum CEO, explained that the combined company would be better able to meet the growth dynamics of the ERP and midrange manufacturing marketplace. He said, "Looking ahead to the new millennium, we see an opportunity to accelerate our growth and build critical mass right in our own backyard." Whether he meant the geographical backyard both DataWorks and Platinum are located in southern California or the market both have ERP offerings, although Platinum is perhaps better known for its financial, human resource and "front office" applications. Klaus' counterpart at DataWorks, CEO Stu Clifton, commented, "The combination allows us to meet the new requirements for customer functionality and increase our worldwide market penetration." Clifton will become the vice chairman at the combined company which will maintain the Platinum name. In another Platinum announcement, the company noted it has begun expansion in the Asian market with an ERP solution targeted to midsized companies, especially those worried about the Year 2000 issue. This excursion is based on previously acquired products, not the DataWorks offerings. Platinum had bought Clientele Software and FocusSoft recently, adding the ERP suites from those companies to its line. Paul Han, Asian regional manager for Platinum commented that, "Many companies require software that covers the front office and back office. Platinum has developed a fully integrated software that meets this need."
Success: A State of Mind According to Vijay Govindarajan, professor of International Business, Amos Tuck School of Business Administration at Dartmouth College, becoming a successful manager in a global firm in the next century is going to take a global mind-set. "For the past decade, companies talked about �going global' but their idea of being global only meant selling a product overseas," Govindarajan says. "Companies that really want to operate globally must cultivate a global mind-set, must open themselves to cultural diversity and be prepared to adopt successful practices and good ideas wherever they are found. To this end, senior management teams should be international in composition, experience and outlook." Govindarajan uses the following test to see if executives have an international or global mind-set. To qualify, one must be able to answer "yes" to every question. Pencils ready?
To exhibit a global mind-set, Govindarajan thinks an organization's management team must have two important features: a deep understanding of the world's diversity and a strong ability to integrate diverse world views. Many companies do not have managers with the necessary outlook and that is an impediment to global growth. "It's what keeps CEOs awake at night," Govindarajan says. "While it may seem obvious that a global firm needs managers with �global brains' there are almost no programs to train managers to have these global instincts. A central task of senior management, therefore, is to identify talented managers and prepare them for global positions and future leadership. More than ever, corporate survival and prosperity depend on developing a cadre of leaders who can operate effectively in a global marketplace. A truly global company moves knowledge, not just products, from one country to another. It's the key to capturing the global opportunities that exist." To further explore this issue, Govindarajan prepared a short questionnaire for CEOs, too. Again, any "no" answers reflect the lack of a global mind-set for the company.
Pencils down, time to check your global mind-set scores. Pain in the Future? Senior executives expect their companies to be significantly hit over the next year by the global economic crisis according to a poll of top human resource executives. The survey, conducted by The Conference Board during its 1998 Human Resources Conference, covered 155 HR executives from a broad cross-section of industries. Some 43 percent of those surveyed feel the world economic crisis will have significant impact on their firms with an additional 47 percent anticipating a moderate impact. Only 10 percent say that the issue won't matter. Companies are continuing to have problems attracting and holding critical employees. Most are also struggling to get employees and managers to understand the overall business strategy of the company. Only 7 percent of those polled express no problems with employment issues. However, only 5 percent say their employees understand the company's business strategy, and the figure for managers 17 percent is not much better. Worse is the figure of 66 percent who believe that their company is sometimes, rarely or never interested in bringing HR along as a major part of that strategy. And remember, this comes from HR executives. And, perhaps as a result of this line of thinking, a small number 16 percent would stay in human resources if they could change careers. Two percent aspire to become CEOs. The rest are interested in career changes that range from teaching to becoming chefs.
Not Worth Killing for Anymore There was a time when stories, true or not, talked about youngsters who would literally kill for a pair of sneakers. Not just any sneakers, of course, but those of the famous, well-advertised brands that became the symbol of chic. Nike, Reebok and other athletic shoe companies were the glamour brands of the footwear industry. Some things are never forever. A researcher at Ball State University in Muncie, Ind., thinks that companies like this are on the downside and might not rebound quickly. Trendy, expensive footwear has suddenly become unfashionable for today's teens, the ones who spend an estimated $105 billion (U.S.) annually on retail products. James Lowry, a marketing professor at Ball State says, "In the last few years, Nike has done a wonderful job catering to the teen market. They signed up athletes the kids could look up to and made it extremely fashionable to wear Nike products. The trend started to change when teens moved away from Nike athletic shoes and started wearing brown leather work shoes and hiking boots. Once a trend like that starts, it is very difficult to reverse it. While Nike was popular for years, it may be years before it regains that status." Even so, Nike remains the leader in the athletic shoe market with 45 percent of its domestic (U.S.) footwear market, worth about $9 billion (U.S.). Teens and their parents are shying away from products endorsed by athletes who are in trouble for drug and alcohol abuse, sexual assault and driving under the influence of alcohol. Unfortunately, some of those who fall into this category have been endorsing shoes for this market. "The shoe companies have found that many of these athletes aren't good role models for kids," Lowry explains. "They have come to realize that a person making an endorsement doesn't necessarily generate sales. Today, those athletes are not able to convince the kids to buy the products." Even so, while prices won't fall most companies will not be able to increase prices for a pair of basketball shoes which, in some cases, already sell for as much as $140 (U.S.). Marketing to a fickle clientele can be stressful.
Mentoring - Keeping the Movement Going When someone decides to enter the engineering profession, they often have mixed emotions. In many ways, today's engineers devote the same efforts and time to their career development as do doctors, lawyers and investment bankers, but with fewer anticipated rewards at least financially. This can cause some promising students to drop out of engineering and science, depriving industry of their skills. Significantly, women are all too often the ones who are lost to the engineering field. To help prevent this, a project called MentorNet has been developed at San Jose State University (SJSU) in the heart of Silicon Valley. Started a year ago, MentorNet uses the Internet and e-mail to connect female engineering, science and math students with volunteer mentors working in scientific and technical fields throughout private industry. By using the technologies of electronic communication, the location of the mentor in relation to the student becomes irrelevant. The project, offered nationwide, is provided through the Women in Engineering Programs & Advocate Network and is headquartered at SJSU. Start-up funding came from the Intel and AT&T; Foundations. With women comprising 46 percent of the workforce but less than 9 percent of all U.S. engineers, there is an obvious need to foster more creative ways to keep women involved in the field. According to Carol Muller, executive director of MentorNet, "Women still face gender-specific obstacles when studying and preparing for careers in engineering and other sciences. There is solid evidence that mentoring can help address this disparity. Through e-mail and other emerging technologies, MentorNet can reach more women than would be possible with traditional mentoring." During the pilot program this year, 204 female students studying at 15 U.S. colleges and universities were connected with both female and male mentors working in industry. Participants work at AT&T;, Intel, DuPont, IBM, Merck, Motorola, Oracle and Microsoft as well as many smaller companies. MentorNet provides web-based training materials, newsletters and support for both mentors and students. Making a good match can be difficult so counseling is available when issues of compatibility arise. The success of MentorNet is still awaiting judgment but the early results are encouraging. More than 90 percent of the initial mentors participating indicate they would continue and 87 percent of the students would recommend the experience to others. According to Muller, "Mentors who can't take the time involved to set up and travel to a face-to-face meeting may be able to spend 15-20 minutes a week on e-mail. It's convenient, efficient and effective. Geographic distance between mentor and student is not important." For more information or to sign up, contact Muller at [email protected], or (408) 924-4070. The MentorNet Web site is http://www.mentornet.net.
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