San Diego's Technology Workers Build Innovative Development

Technology workers are an important part of the American economy and represent one of the fastest growing occupations in the country. Technology workers feed the business and economic engines within San Diego but  face some wider challenges. Three technology executives with a a combined 4 billion dollars in revenue and 9,000 employees  highlighted the state of local talent in San Diego on Connect (1). There are a few additional ideas that can further the conversation.

A great portion of society relies on technology and the easy transference of information and resources.  Knowledge intensive industries need this easy flow of information that moves within and between companies. Technology workers help to foster that transference and use information to its maximum extent ensuring information develops other sectors.

Technology workers are important for modern companies and help push industries to develop at a faster rate. For example, investment in IT contributes to worker manufacturing productivity (Chaodong, et. al., 2011). Workers that are able to update their skills and use technology effectively  will speed up the rate of production.

Developing home grown talent was not always on the priority list. Because supply was not always sufficient companies outsourced many of their technology worker needs to cheaper economies (Shao & David, 2007).  Having a sufficient local supply skilled technology workers helps keep jobs local.

It should also be remember that having the right kind of local talent in growing industries makes San Diego more ripe for business investment. The type of highly skilled and information intensive businesses in the area need a solid funnel of people to manage the transference of that information. Companies invest in places where the components to growth can be found.

Despite these apparent advantages there are other problems beyond the technology sector itself. With recruiting and developing technology workers that are willing to stay in San Diego. People may love the beaches but hate the cost of living near those beaches. The executives mentioned high state taxes, poor infrastructure, high cost of housing, small airport, and the slow pace of government responsiveness to issues.  The problems cited are more on a level that impacts multiple businesses versus a specific industry but nevertheless should be calculated into corporate strategies.

Chaodon, H. et. al. (2011). Information technology investment and manufacturing worker productivity. Journal of Computer Information Systems, 52 (2). 

Shao, B. & David, J. (2007). The impact of offshore outsourcing on IT workers in developed countries. Communications of the ACM, 50 (2).

 

The Importance of Information Flow for Business Development

The flow of information helps entities integrate operations and services that lead to a more efficient system. It doesn’t matter if we are discussing a single company, a group of companies, or an entire hub of economic activity. The process of encouraging proper information transfer and collaborative problem solving is important for moving an organism to its highest state of existence. 

Imagine for a moment how well your body works if your feet didn’t communicate with your brain and your brain had no way of talking to the hands. You would have a difficult time walking, grabbing items, and otherwise functioning. You would eventually starve and pass away. The same occurs in companies and economic hubs when elements can’t communicate together. 

Glazer in his book Smart vs. Dumb Service Strategies: A Framework for Ebusiness Intensity discusses the importance of information flow in developing an entity for higher levels of performance (2001). He makes three distinctions where information integration can be beneficial: 

Downward flow: The flow of information between companies and customers (i.e. the in and outflow of information). 

Upward Flow: The flow of information between suppliers and the company (i.e. efficient operations by integration of networked operations). 

Internal Flow: The flow of information held internally by a company (i.e. collaboration of internal elements). 

Within any entity there is a need to ensure information to and from stakeholders is being used to improve the overall system.  That information needs to flow includes customer to company, company to supplier, and department to department.  Without that ability the system becomes dysfunctional and non-competitive. Improving the flow of information can make a difference in an organism’s ability to effectively adjust to its environment and succeed. 

How that improvement in information flow occurs depends on the type of organism but generally relates to meetings, positive relationships, egalitarian structure, information postings, open cultures, surveys, collaboration, and promotion. The organization must fully and functionally accept the inherent nature that new information should be encouraged, accepted, and capitalized on. 

Glazer, R. (2001). Smart vs. Dumb Service Strategies: A framework for EBusiness Intensity. New York, Armonk E-Service.

Effective Negotiation-Turning a "No" into a "Yes"

Effective negotiations skills have a significant place in business as contracts, labor agreements, positions, raises, and even work conditions are often negotiated. As people move up the ranks in position and skill they will likely become involved in negotiations as their positions are no longer bound by clear definitions that define entry level positions. Whether you are negotiating on the behalf of a company or with a company consider a few tips that can turn a "no" into a "yes".

All negotiations come with an end game that includes a place where both parties agree to a particular contract or understanding. Getting to that place where both parties accept a specific outcome is the more difficult task. There will be banter, game playing, and information sharing that brings both parties from A to Z.

At its heart, negotiation is about sharing perspective. When both parties are open to understanding each other and coming to a conclusion the process may take less time and effort than when two parties have mental barriers. The closer the perspectives and basic fundamental understandings of both parties the more likely a fast resolution will result.

When work is needed parties share information and seek to use leverage. Sharing information and leverage are really the only two levels of negotiation. Leverage isn't necessarily coercive but it can be depending on the circumstances and perspective of the parties. For example, a union can threaten to walk out of negotiation if the company is not willing to budge on a particular point.

A complex web of leverage upon leverage can develop where one party offers something of value or is willing to take it away an item of value depending on the action and reaction of the other party. After subsequent rounds of offering different solutions the parties will naturally begin to share some levels of perspective where each party knows what the other wants and finding the fastest way to get there is the best bet.

Both sides come with some level of enthusiasm but with incorrect assumptions of what they can get out of the negotiation. After sharing information and using leverage both parties come to a better understanding of the likely outcomes. The less adversarial the parties the more likely they are able to come to this understanding without the bruised egos.

Turning a "no" into "yes" requires using information and leverage to its maximum potential. Providing that information which strengthens ones position is necessary. Yet one should neglect their opponent least they entrench them into a position where they are not likely to budge thereby costing more money and effort than is necessary.

Understand your position and your opponents positions to define the limits. Seek to find a way in which both parties can get what they want creating a win-win situation. If this is not possible then it is necessary to discussing other options that may be acceptable to both parties. It may not be the best scenario but it could result in something that is acceptable.

Make sure you are prepared with the facts and figures needed to judge and weigh each option as it will save considerable time. Know what your opponent wants and their end point where the figures can no longer add up for them. Ensure you know your own companies positions and what lines it cannot cross. Create benchmarks for entry, acceptable, and best case scenarios.

Converting "no" to "yes" is a process of creating an understanding in your opponent and your own team. It is often necessary to give information, facts, and figures in a way that leads one to a conclusion. Don't underestimate your opponent as they also have a strategy and methodology to get your agreement. Make sure that you maintain control of the negotiation process by being proactive and influencing the nature of the conversation when possible. This is more likely if you are armed with information.

Does Data and Our Personalities Impact How We Invest?

Data is used to understand the environment and make investment decisions about new products and services that directly impact the stock market. Recently, the Institute of Supply Management made an accidental miscalculation on the May Purchasing Manufacturers' Index by published 53.2 and then revising that estimate to 56 after the error was discovered (Strumpf, 2014). Due to the importance of that economic indicator stocks bounced downward and then leaped upwards 26 points after the revision.  The change made sense with investors who saw a tough winter and potential spring rebound. 

Stocks can be finicky on new data. The information provided from credible sources, often released from large institutions, are given more weight than smaller publishers. This doesn’t change the fact that they are still a single reference point that when taken in isolation can lead to inaccurate perception. A single switch of a number, miscalculation, or ignored measurement can change the results dramatically. A small mistake can have much wider market implications.

Market over reaction to news is not something new. For example, press releases of companies hiring consulting firms and making other strategic decisions can have an impact on stocks (Bergh & Gibbons, 2011). News naturally impacts how investors perceive the environment according to their strategies and learned problem solving matrix. This phonomenon is experience when government policy releases create a positive or negative reaction on the market. 

Hyper active stock trading lies in the personalities of the investors and their investment strategies. Naturally investors who seek quick returns are likely to be more reactive to new information in an attempt to gain quickly or avoid loss. You can see this in the activities of day traders who take short gains and long-term investors who wait out the market. Each uses strategies derived from their personalities.

The phenomenon of impulsive reaction or reflective contemplation has been experienced in a number of different experiments. A study by Ledzinska, et. al. (2014) found that the time it took for participants to read instructions in a computer task and formulate a search strategy was related to their reflection-impulsivity diagnosis (R-I). The study highlights how some personalities brush the surface information and others contemplate the deeper meaning of that information.

In the investment world data is extremely important for decision making. When data is drawn from multiple sources it is generally stronger and more accurate than when derived from a single source. Savvy investors seek both breadth and depth in their information. The totality of the information allows large investors to make more accurate determinations of stock choices. Width is seen as using multiple markets and depth moves into the logic behind the calculations. Having knowledge of major market trends and how the individual data pieces are calculated helps to avoid rash decision-making when erroneous information is accidentally presented.

Ledzinska, M., et. al. (2014). Cognitive styles could be implicitly assess in the internet environment: reflection-impulsivity is manifested in individual manner of search for information. Journal of Baltic Science Education, 13 (1). 

Bergh, D. & Gibbons, P. (2011). The stock market reaction to the hiring of management consultants: a signaling theory approach. Journal of Management Studies, 48 (3). 

Strumpf, D. (June, 2014). Stocks End Up Despite Jolt From Erroneous Economic Data. The Wall Street Journal. Retrieved August 2^nd, 2014 from http://online.wsj.com/article/BT-CO-20140602-711023.html

How Does Information Networking Create an Export Region?

Export driven economies fuel themselves through an octane boost of information. Information makes their way into opportunity finding, employment, and development. With the right methods of information transference regions can further develop their export driving economies by understanding how innovation fulfills demand-side and supply-side economics. Paul McPhee (2012) explores innovation strategy information spillover contributions as an important catalyst in simulating exports and employment. 

Local development exists within a national context. Local stakeholders and business members work together to create development. Local networks and supply chains also rely on greater information links in national networks to be successful (Bathelt, 2005).  In other words, there exists the tighter information transference within local networks and wider networks within the nation. Even though the author doesn’t state this it can also include information and resource vines throughout the globe.

This is demonstrated by international organizations that seek investment locations that have assets, organizational and institutional structures that support innovation information that fosters development (Paniccia, 2002).  As a bounded rationality such organizations draw in this information to create new products and services that have market relevancy. Without the information sources full development is not possible due to a lack of development feed.

We can find a number of examples within the market. In Australia clusters formed from networks of regionally based firms within the wine, fishing, film, education, and tourism industries that collaborate and innovate collectively and individually through alliance, commissions, federations, and associations (Roberts and Enright, 2004).  Each industry has the opportunity to work with other industries in both the local setting as well as the national setting to create new products and services. Local clusters exist within a wider national and international context.

The author found that information transference fostered exportation of products and services. A process of increasing the sourcing, generation, transferring, and sharing of information within regional networks is necessary to increase export related employment. This information is used for mutual development that impacts demand-side and then export-side growth.  When information transference speeds up the opportunities from growth and exportation also increase and this can lead to higher levels of regional employment.

Comment: The study lends support to the concept that tighter formations of economic vines exist in clusters and these clusters are woven into regional hubs that are connected to other hubs both within a nation as well as across the globe. The success of local economies is based in the ability to quickly and easily transfer information and resources through their economic hubs. These hubs use their resources to create newer and better products.

Bathelt, H. (2005) Cluster relations in the media industry: Exploring the ‘distanced neighbour’ paradox in Leipzig. Regional Studies, 39, pp. 105-127.

McPhee, P. (2012). Export driven regional development: a comparison of policies based on tiberi-vipraio-hodgkinson innovation strategies and networked information flows. Australasian Journal of Regional Studies, 18 (1). 

Pannicia, I. (2002) Industrial Districts: Evolution and Competitiveness in Italian Firms, Edwards Elgar, Cheltenham

Roberts, B. H. and Enright, M. (2004) Industry clusters in Australia: Recent trends and prospects. European Planning Studies, 12(1), pp. 99-121.