Thursday, October 07, 2010

$1 Trillion In Savings

ceramic piggy bankImage via Wikipedia
CNet: Tech CEOs find $1 trillion in government savings: save $1 trillion over the next decade.
When I read this headline I thought someone came up with an app that will help people lose weight, because if America could somehow go to its 1980 obesity levels - which was bad enough - America would save $1 trillion in health care costs. But no, these tech CEOs have something else on mind.

This headline also made me think that although Obama 08 did a great job of grassroots campaigning, it pretty much wrote the book on it, we are not there yet when it comes to grassroots governing where everybody is involved. Just like Dean 2004 was not there yet when it came to grassroots campaigning, Obama 08 is not there yet when it comes to grassroots governing.
CNet: Tech CEOs find $1 trillion in government savings: First off, the organization believes the federal government should consolidate its many data centers to reduce IT overhead.
No kidding.
CNet: Tech CEOs find $1 trillion in government savings: Secondly, the organization contends that the U.S. government should "streamline" its supply chain and make goods-and-service procurement more standardized.
Talk about business sense.
CNet: Tech CEOs find $1 trillion in government savings: $200 billion could be saved over the next 10 years by analyzing payments being disbursed through Medicare, federal grants, and tax refunds. ..... the government should rely on "electronic self-service" to save $50 billion; sell or auction off many of the "14,000 excess, and 55,000 underutilized buildings in the federal inventory" for a $150 billion savings; cut down on energy use to save $20 billion; and migrate to more shared services for another $50 billion in savings.
The best part of these suggestions might not be that they are totally doable, and they will save a ton of money, but that in implementing them the US federal government will become more transparent, more agile, in short a better government. I say let's go do it.

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eBooks: Yet Another Technology Looking For Business Models

Bill and Melinda Gates during their visit to t...Image via Wikipedia
CNet: New study suggests e-book piracy is on the rise
It started with music. Movies and books will not be spared, are not being spared. It is a mindfood thing. The Internet is like this vast farm custom made for the production and consumption of mindfood in its various forms.

The first instinct of the industries has been to fight the technology. It is not true that people seem to have this unbeatable thirst to steal that which comes out during the night that is the internet. People like the convenience of the digital format. In digital formats these products - books, movies, music - take no space. Your device does not count, it is not music, it is not a book, it is no movie.

Just like the pharmaceutical industry does not have the same static price globally - it charges less in the poor countries and even gives it out for free in some - the textbook industry has to be the same way.

Maybe the price of that eBook is not $9.99. Maybe the price of that song is not 99 cents. Those prices have to go down. And they have to go even further down in the Global South.

And then the industry has to make peace with the fact that there will be some leakage. Like Bill Gates said a long time ago about China, "We want them to pay for our software, but if they are going to steal it anyway, we want them to steal our software." That has to be the spirit. Have you even been to a supermarket where some guy/gal is standing outside an eatery giving away free samples? It might be just one bite, but it is good business. I get the impression even free is a business model. When you are not raking in the cash, you are giving stuff away for free and you are building your brand.

Even when people don't give you cash, they give you mindshare. The whole advertising industry revolves around that mindshare. Don't complain when you get it.

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