Innovation Insights
From the desk of Braden Kelley
September, 2008 - Vol 2, Issue 6
In This Issue
The World is Not Flat - Now What?
Ask the Consultant
Other People's Money
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Greetings!
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I hope this newsletter finds you engaged and enthused in your current endeavors. 

The innovation community is gaining traction, but still in need of more members. I'm adding more innovation video content as I find it, and the articles from several thought leaders are continuously updated. Please feel free to ask questions or start discussions there on any innovation topic.

In October I will be attending Business Innovation Factory in Providence, RI and in November I will be leading a 5-day seminar on Mastering Value Innovation in Dubai, UAE. Perhaps our paths will cross at one of those events.

The World is Not Flat - Now What?
 
World is Not FlatWith rising fuel costs and inflation continuing to run in double digits in countries like India and China, the falling dollar, and rising oil prices pushing up transportation costs, is the world really flat as Thomas L. Friedman claimed in 2005?

With the cost of shipping a container from China to the USA nearly tripling by some reports from $3,000 to $8,000 and cargo ships dropping their top speeds by 20% during the crossing to save fuel (decreasing speed to market and just-in-time capabilities), will companies continue to globalize their supply chains?

Will some companies reverse the globalization of their supply chains?
 
Ask the Consultant - Question #1
 
Ask the Consultant
Brian Shields poses the following:

"Can you post/comment on what you think it will take to "fix" General Motors (GM)? I would very much appreciate your views on the subject."

Well, Brian, here you go:

GM has an extremely difficult challenge ahead, and continuing to follow Toyota will not get them out of the pickle they are in. GM lost $15.5 Billion last quarter and expect to bleed red ink every month for the foreseeable future. GM claims to be well capitalized and capable of operating through 2008 and 2009 without difficulty. However, GM's so-called conservative forecasts are likely to be optimistic as America's credit spigot is turned off and Americans are forced to live closer to their true means. The tightening of home lending standards will spread to auto lending standards (if it hasn't already), putting added pressure on auto sales. Finally to top it all off, GM faces higher than normal vehicle returns at the end of leases, with GM suffering losses in the resale of those vehicles.

So what is GM to do?
 
 
Other People's Money
 
Live Search CashbackAs Google's share of the search business approaches 70%, Microsoft is left needing a bold move to remain relevant.

While Live Search is a good product, Cashback will not save them from the Google monster.

Let's look at the problem that they are trying to solve. Or rather, let's look at what Microsoft is trying to achieve in the search business. Ultimately, Microsoft is trying to become the ad platform of choice. Being the search engine of choice would be nice too, but it is not their primary goal.

So if Microsoft wants to be the ad platform of choice, what do they need to do?
 
 
Please introduce others to this newsletter using the "Forward email" link at the bottom.
 
If I haven't heard from you in a while, please drop me a line or comment on my blog.
 
I'm always happy to hear from my good friends and colleagues.  

And, I encourage you to join all the innovation experts in the innovation community.

All the best,
Braden Kelley
Chief Innovator
Business Strategy Innovation
(206) 349-8931
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Would you like me to come and speak on an innovation topic to your corporate, non-profit, or conference event for FREE*? As a thanks to those who subscribe to this newsletter, I will waive my speaking fee for the first five mutually interesting speaking requests I receive this year.

* Speaking fee is waived for chosen engagements, but travel expenses still apply 
Offer Expires: December 31, 2008 (or after the first five free speaking engagements are booked)