The InformationWeek -- Blogs


Topics:  

  • Email this page E-mail this page
  • Print this page Print this page
  • Bookmark and Share
  • icon

The New Shareholders In High-Tech Business


Posted by Patricia Keefe, Feb 27, 2006 05:53 PM

It used to be pretty much that what happened in high tech stayed in high tech. Companies did or did not develop products, enter markets, or craft strategies based on pretty straightforward, standard business criteria.

Was the technology doable? Did it work? Was there a viable market? And at what price point, and via what channel? Was there value for shareholders? Could reviewers be appeased? Would the press show up? Only geeks got whipped up over the details.


It's not that simple anymore. Increasingly, technology companies are finding their business plans coming under the harsh glare of a much broader spotlight. It's not just the techies, the IT departments, and the shareholders scrutinizing their every move. Now it's lobbying groups, Congress, international watchdogs, and ordinary consumers weighing in at every turn. These are the new shareholders, if you will. Everyone has something to say and some issue to flog, and they're getting harder to ignore. For example:

  • Google wants to launch its Search Across Computers feature in Google Desktop 3? It will have to respond to privacy concerns.

  • AOL wants to launch a paid certified E-mail service? It's going to have to contend with fears that its service will upset the Internet neutrality applecart, as MoveOn.org and a soon-to-be-revealed number of other groups mobilize the protest.

  • Microsoft wants to do business overseas? It will have to deal with antitrust concerns around the globe.

  • Internet service providers--Google, Microsoft, Yahoo, and Cisco--want to open up shop in China? They'll have to decipher the following riddle: What exactly does being a good corporate citizen abroad mean?

  • Search engine companies and telecom providers want to hang on to user activity records and data? As people on both sides of the law start eyeing that information, users are starting to demand more specifics about what data is being kept and for how long. They're also starting to ask, along with other groups, for stronger legal protections.

    It's no longer just about the technology, or even the business for that matter. Technology has done such a good job of servicing or involving itself with every facet of our lives that it has opened the door to a whole new realm of issues and a whole new class of "shareholders." It seems that today you can expect to see global protests, online petitions, congressional hearings, threats of legislation, etc., etc. Misguided or not, it's going to get interesting.

    High-tech companies will keep innovating, of course, but this turn of events means they're going to have to think through the ramifications of their services a lot more deeply than they ever did before, and security is going to have to become a driver in the development process.

    A good example is RFID. Just when it seemed the tagging technology might be picking up some momentum, supporters watching the news these last two weeks probably found much cause for dismay.

    Red flags are being waved everywhere: We don’t have enough skilled people to deploy RFID, cheaper chips are short-changing security, privacy issues aren't being addressed, and cell phones may pose a threat to RFID chips.

    It's enough to give even the most ardent proponent of RFID pause. But that pause may be just what the market needs. There are issues that need to be addressed, and some solutions and compromises will undoubtedly have to be worked out in order to smooth the way for RFID to go firmly forward. The good thing here is that discussions are starting to take place. Technology has long since slipped its business-only bonds, but it's only now catching up to the dialogue it needs to have if it wants to play to a broader audience. The new shareholders are out there, and they want to talk. Is high tech ready?

    « For Apple, There's No Business Like Show Business | Main | CA Takes An Indirect Route To Sales Success »



  • Sign Up Now
    For InformationWeek News Alerts




    This is a public forum. United Business Media and its affiliates are not responsible for and do not control what is posted herein. United Business Media makes no warranties or guarantees concerning any advice dispensed by its staff members or readers.

    Community standards in this comment area do not permit hate language, excessive profanity, or other patently offensive language. Please be aware that all information posted to this comment area becomes the property of United Business Media LLC and may be edited and republished in print or electronic format as outlined in United Business Media's Terms of Service.

    Important Note: This comment area is NOT intended for commercial messages or solicitations of business.




     
     

    1. Sequential Programming: Like Eating Peas with a Straw.
    2. Biomolecular device using self-assembled DNA nanostructures?
    3. Coreinfo v2.0: A Simple Utility to Understand the Manycore Complexity in Windows


    Join The InformationWeek Group On LinkedIn


                               


    1. More Reasons Why Linux Misses The Desktop
    2. Too Much Netbook For Too Litl?
    3. Verizon: $350 ETF Is A Go
    4. Motorola Explains Why Droid Doesn't Have Multi-Touch


    1. Florida Hospital Dials Up iPhones For Nurses
    2. Full Nelson: A Web Presence Needs Sizzle, My Nizzle
    3. Is Antivirus Software Dead?
    4. Practical Analysis: The Fastest-Growing Security Threat
    5. InformationWeek Analytics Research: Federated Search
    6. Securing The Cyber Supply Chain

     

      Ars Technica
    Boing Boing
    Channel 9 Forums
    CRN Blogs
    Dr.Dobb's Portal: Blogs
    Engadget
    Gizmodo
    GrokLaw
      Lifehacker
    Schneier on Security
    Slashdot
    TechCrunch
    Techdirt
    Techmeme
    Valleywag

      DECEMBER 2008
    NOVEMBER 2008
    OCTOBER 2008
    SEPTEMBER 2008
    AUGUST 2008
    JULY 2008
    JUNE 2008
    MAY 2008
      APRIL 2008
    MARCH 2008
    FEBRUARY 2008
    JANUARY 2008
    DECEMBER 2007
    NOVEMBER 2007
    OCTOBER 2007
    SEPTEMBER 2007