Archive for the ‘IT Trends’ Category
Every business starts from the question: ”Which direction to take, how to choose the right niche…”. Most start-ups choose software development as the direction to start with because of quite low launching costs, easiness to start the business, high popularity of IT and the well-known postulate “software will eat the world”. But when choosing IT sphere it is quite important to understand this market and find new perspective areas in it. As investors and business angels are much more eager to invest not in what is popular today, but what will be the future of tomorrow.
In my article I would like to draw your attention to some trends that seem promising in my opinion
The Internet of things
The Internet of Things is likely to have a staggering impact on our daily life and become an inherent part of such areas as electricity, transportation, industrial control, retail, utilities management, healthcare, petroleum etc. For example, GE predicts that the oil and gas industry will be able to save more than $90 billion a year thanks to the reduced operating costs and fuel consumption that smart components will deliver. The health care sector may save more than $63 billion because of improved resource usage and modern equipment.
Also the Industrial Internet will make transport more economical, and safer too. Jumbo jets, loaded with sensors that record every detail of their flights, will help engineers to design safer aero-planes and know which parts need to be replaced. On the road, fleets of trucks and even ordinary drivers will be able to tap into the web, monitoring traffic in real time, with automated programs suggesting alternative routes in case of accidents/traffic congestion.
Of course, all of these benefits mean plenty of business opportunities for those who are brave enough to make the first step. Profits will grow exponentially as the Internet of Things itself matures. Today, there’s around 1.3 billion connected devices in the world, but by 2020 this could well exceed 12.5 billion devices. Similarly, the M2M (machine-2-machine) industry is said to be worth around $121 billion a year today. By 2020, that value will grow to almost $950 billion, according to the Carbon War Room. Don’t lose your chance!
Computer Science health
This sphere suit startups that plan to develop software to diagnose and treat diseases (i’m not taking about Biotech, but about Information Technology). As a rule it is a noninvasive methodology. The technology will help to avoid costly and dangerous procedures: instead of an operation it will be enough to use a specialized device Different kinds of fitness applications have already filled the market. Apps that evaluate sleep state and help to wake up at the most opportune moment, that evaluate quality, caloric value and allergenicity of food are not a rarity anymore. More and more people keep track of their daily activity: number of steps made, calories burned, heart rate etc by using bracelets and kardiosensors. But the real revolution will produce a system that will combine sensor data and sensor condition of the body with genetic information. The Apps will give an opportunity to influence the physical state, recommending an appropriate lifestyle and a specific diet, supplements and medicines.
In 2012 and 2013 we saw significant data breaches across multiple industries and governments impacting millions of users. For instance, according to a recent study conducted by Ponemon Institute, nearly 1.5 million Americans have been victims of medical identity theft. Individuals whose medical information has been stolen often deal with erroneous medical expenses, insurance issues and incorrect data on medical records that can lead to fatal medical errors. And data security issues compromise more than patient privacy and personal data.
Is this an uncertain future we will have to live with? Can we accept degraded privacy and security and billions of dollars in lost revenue, damage, reduction in brand value and remediation costs?
Such issues will become the concern of more and more enterprise leaders. Thus, Data Security could be the biggest challenge for startups.
“Green Energy” field
We live in the world of limited subsoil resources. We may experience and in fact we do already experience their shortage. The time of “users” is close to the end and the era of “creators” is coming instead. The “creators” are sure, that the potential of the “Green Energy” is huge… and they are right. Every fifth kWh is got from renewable energy sources in the developed countries. Let’s see what is happening in the world:
Elon Musk, the creator of PayPal, has opened a company that produces electric cars Tesla. For three years they have produced quite expansive super-cars and rectified technologies …btw the technologies are still being improved ( hope you understand what I’m driving at…). Also the super-cars require refueling …with the help of solar batteries, which are quite widespread in the USA and Western Europe. By the way it is predicted that America, South Canada and most of Europe will be covered with solar stations by the end of 2015 year (another niche ;) ) and the solar batteries will be used not only for the refueling).
What I’m driving at …want to say that there will be need in different applications (including mobile apps as well) for its ordering, managing etc.
In conclusion I would like to wish you to find your niche and not be afraid of putting your ideas out and trying them. Good luck and thanks for the reading :)
Skype ID: elviragolyak
Business Development Manager (LI page)
Altabel Group – Professional Software Development
Every discipline has its own vocabulary, and project management is no exception. Part of the process of successfully deploying project management in your organization is to standardize the terminology. That way, when one person talks about risks, scope, issues, requirements, and other project management concerns, everyone else knows what he or she is referring to. This glossary contains common terms used in project management and can help start the standardization process in your organization.
There may be external circumstances or events that must occur for the project to be successful (or that should happen to increase your chances of success). If you believe that the probability of the event occurring is acceptable, you could list it as an assumption. An assumption has a probability between 0 and 100%; that is, it is not impossible that the event will occur (0%), and it is not a fact (100%) — it is somewhere in between. Assumptions are important because they set the context in which the entire remainder of the project is defined. If an assumption doesn’t come through, the estimate and the rest of the project definition may no longer be valid.
Client / customers
The person or group that is the direct beneficiary of a project or service is the client / customer. These are the people for whom the project is being undertaken (indirect beneficiaries are stakeholders). In many organizations, internal beneficiaries are called “clients” and external beneficiaries are called “customers,” but this is not a hard and fast rule.
Constraints are limitations that are outside the control of the project team and need to be managed around. They are not necessarily problems. However, the project manager should be aware of constraints because they represent limitations that the project must execute within. Date constraints, for instance, imply that certain events (perhaps the end of the project) must occur by certain dates. Resources are almost always a constraint, since they are not available in an unlimited supply.
The cost variance (CV) is used to measure the cost difference between a project’s earned value (EV) and the actual cost (AC) to deliver progress to date (CV = EV – AC). In application, positive CVs indicate the project is under budget, since it is delivering more value than incurring cost. If the project has a negative CV, it is over budget. Even positive CVs should be examined for root cause.
The critical path is the sequence of activities that must be completed on schedule for the entire project to be completed on schedule. It is the longest duration path through the workplan. If an activity on the critical path is delayed by one day, the entire project will be delayed by one day (unless another activity on the critical path can be accelerated by one day).
A deliverable is any tangible outcome that is produced by the project. All projects create deliverables, which can be documents, plans, computer systems, buildings, aircraft, etc. Internal deliverables are produced as a consequence of executing the project and are usually needed only by the project team. External deliverables are created for clients and stakeholders. Your project may create one or many deliverables.
Earned value (EV) is an EV management term used to determine the total work completed at a specific point in time. A project’s EV is determined by adding up all the budgeted costs for every task in the project schedule. The actual EV calculation can use a variety of calculation methods, including 0-100%, 50-50%, or an actual percentage to determine a task’s credited value.
The functional manager is the person you report to within your functional organization. Typically, this is the person who does your performance review. The project manager may also be a functional manager, but he or she does not have to be. If your project manager is different from your functional manager, your organization is probably utilizing matrix management.
A Gantt chart is a bar chart that depicts activities as blocks over time. The beginning and end of the block correspond to the beginning and end-date of the activity.
An issue is a major problem that will impede the project’s progress and that can’t be resolved by the project manager and project team without outside help. Project managers should proactively deal with issues through a defined issues management process.
Lifecycle refers to the process used to build the deliverables produced by the project. There are many models for a project lifecycle. For software development, the entire lifecycle might consist of planning, analysis, design, construct/test, implementation, and support; this is an example of a “waterfall” lifecycle. Other lifecycles include iterative development, package implementation, and research and development. Each of these lifecycle models represents an approach to building on your project’s deliverables.
A milestone is a scheduling event that signifies the completion of a major deliverable or a set of related deliverables. A milestone, by definition, has duration of zero and no effort. There is no work associated with a milestone. It is a flag in the workplan to signify that some other work has completed. Usually, a milestone is used as a project checkpoint to validate how the project is progressing. In many cases there is a decision, such as validating that the project is ready to proceed, that needs to be made at a milestone.
An objective is a concrete statement that describes what the project is trying to achieve. The objective should be written at a low level, so that it can be evaluated at the conclusion of a project to see whether it was achieved. Project success is determined based on whether the project objectives were achieved. A technique for writing an objective is to make sure it is Specific, Measurable, Attainable/Achievable, Realistic, and Timebound (SMART).
A program is the umbrella structure established to manage a series of related projects. The program does not produce any project deliverables — the project teams produce them all. The purpose of the program is to provide overall direction and guidance, to make sure the related projects are communicating effectively, to provide a central point of contact and focus for the client and the project teams, and to determine how individual projects should be defined to ensure that all the work gets completed successfully.
A program manager is the person with the authority to manage a program. (Note that this is a role. The program manager may also be responsible for one or more of the projects within the program.) The program manager leads the overall planning and management of the program. All project managers within the program report to the program manager.
A project is a temporary structure to organize and manage work and ultimately to build a specific defined deliverable or set of deliverables. By definition, all projects are unique, which is one reason it is difficult to compare different projects to one another.
The project baseline is used to establish the original set of budget and schedule estimates based on the approved project scope prior to project execution. Effective project managers compare the project baseline to the current project status to determine specific cost or schedule variances.
Project definition (charter)
Before you start a project, it is important to know the overall objectives of the project, as well as the scope, deliverables, risks, assumptions, project organization chart, etc. The project definition (or charter) is the document that holds this relevant information. The project manager is responsible for creating the project definition. The document should be approved by the sponsor to signify that the project manager and the sponsor are in agreement on these important aspects of the project.
Project Management Office
The Project Management Office (PMO) is an organization within a company that develops and enforces project management processes, tools, and techniques. A PMO may form at a program level, a department level, or at an enterprise level. A PMO typically provides support for program or portfolio governance, project portfolio management, resource management, and issue and risk management.
The project manager is the person with the authority to manage a project. The project manager is 100% responsible for the processes used to manage the project. He or she also has people management responsibilities for team members, although this is shared with the team member’s functional manager. The processes used to manage the project include defining the work, building the workplan and budget, managing the workplan and budget, scope management, issues management, risk management, etc.
A phase is a major logical grouping of work on a project. It also represents the completion of a major deliverable or set of related deliverables. On an IT development project, logical phases might be planning, analysis, design, construct (including testing), and implementation.
The project plan (not to be confused with the project schedule) is the document that describes the processes, tools, and techniques used to manage and control the project. Common processes include specific project level processes such as change management, issue management, risk management, document management, and time management for project schedule updates.
Project schedule / work schedule
The project schedule is commonly associated with Microsoft Project or a similar scheduling tool. The project schedule is the series of tasks with durations, resources, and specific dependencies that forecasts the project end date.
The project team consists of the full-time and part-time resources assigned to work on the deliverables of the project. They are responsible for understanding the work to be completed; completing assigned work within the budget, timeline, and quality expectations; informing the project manager of issues, scope changes, and risk and quality concerns; and proactively communicating status and managing expectations.
Request for proposal
The request for proposal (RFP) is a formal request used by organizations to identify potential solutions and services from a list of vendors. Based on the RFP, the organization will identify a smaller list of vendors to issue a request for quotation.
Request for quotation
A request for quotation is a formal request for a vendor to provide actual costs for a specific service or scope of work. The client typically provides a vendor with a set of requirements and instructions on how to respond to the request. The vendor provides its response, including details about the solution, assumptions, and pricing.
Requirements are descriptions of how a product or service should act, appear, or perform. Requirements generally refer to the features and functions of the deliverables you are building on your project. Requirements are considered to be a part of project scope. High-level scope is defined in your project definition (charter). The requirements form the detailed scope. After your requirements are approved, they can be changed through the scope change management process.
There may be potential external events that will have a negative impact on your project if they occur. Risk refers to the combination of the probability the event will occur and the impact on the project if the event occurs. If the combination of the probability of the occurrence and the impact to the project is too high, you should identify the potential event as a risk and put a proactive plan in place to manage the risk.
The schedule variance (SV) is an EV management term used to measure the project’s schedule performance by comparing the project’s EV to the project baselined planned value (PV). The formula is SV = EV – PV. A positive SV indicates the project is ahead of schedule, while a negative SV indicates the project is behind schedule.
Scope is the way you describe the boundaries of the project; it defines what the project will deliver and what it will not deliver. High-level scope is set in your project definition (charter) and includes all of your deliverables and the boundaries of your project. The detailed scope is identified through your business requirements. Any changes to your project deliverables, boundaries, or requirements would require approval through scope change management.
Scope change management
The purpose of scope change management is to manage change that occurs to previously approved scope statements and requirements. Scope is defined and approved in the scope section of the project definition (charter) and the more detailed business requirements. If the scope or the business requirements change during the project (and usually this means the client wants additional items), the estimates for cost, effort, and duration may no longer be valid. If the sponsor agrees to include the new work in the project scope, the project manager has the right to expect that the current budget and deadline will be modified (usually increased) to reflect this additional work. This new estimated cost, effort, and duration become the approved target.
Sometimes the project manager thinks that scope management means having to tell the client “no.” That makes the project manager nervous and uncomfortable. However, the good news is that managing scope is all about getting the sponsor to make the decisions that will result in changes to project scope.
Sponsor (executive sponsor and project sponsor)
The sponsor is the person who has ultimate authority over the project. The executive sponsor provides project funding, resolves issues and scope changes, approves major deliverables, and provides high-level direction. He or she also champions the project within the organization. Depending on the project and the organizational level of the executive sponsor, he or she may delegate day-to-day tactical management to a project sponsor. If assigned, the project sponsor represents the executive sponsor on a day-to-day basis and makes most of the decisions requiring sponsor approval. If the decision is large enough, the project sponsor will take it to the executive sponsor.
Specific people or groups who have a stake in the outcome of the project are stakeholders. Normally stakeholders are from within the company and may include internal clients, management, employees, administrators, etc. A project can also have external stakeholders, including suppliers, investors, community groups, and government organizations.
A steering committee is usually a group of high-level stakeholders who are responsible for providing guidance on overall strategic direction. They don’t take the place of a sponsor but help spread the strategic input and buy-in to a larger portion of the organization. The steering committee is especially valuable if your project has an impact in multiple organizations because it allows input from those organizations into decisions that affect them.
A waterfall methodology is a predictive life cycle methodology with sequential phases, which include Analysis, Design, Development, Testing, and Deployment. Predictive methodologies work well when the requirements and design are well defined, as found in the construction or manufacturing processes. For software projects, an agile methodology is recommended despite the abundance of waterfall methodologies found across industries.
Work breakdown structure
The work breakdown structure (WBS) is a list of major deliverables that the project team will complete during the project. The WBS is organized in a hierarchy and is typically decomposed into several sub-levels. A WBS can be used to visually define the project into smaller chunks, so the team can better understand and plan the activities needed to complete the deliverables. Diagramming tools such as Microsoft Visio or mind mapping tools such as Mindjet or MindGeniuscan be used to build a visual WBS.
The project workplan tells you how you will complete the project. It describes the activities required, the sequence of the work, who is assigned to the work, an estimate of how much effort is required, when the work is due, and other information of interest to the project manager. The workplan allows the project manager to identify the work required to complete the project and also allows the project manager to monitor the work to determine whether the project is on schedule.
Agile project management terminology
An agile methodology is an adaptive systems development lifecycle methodology that delivers software in incremental chunks known as iterations or sprints. In agile development, time is fixed, and scope is allowed to float from one iteration to another based on the team’s user story progress. An agile methodology is best used when requirements are not well defined.
Burn down chart
A burn down chart is a graphical view of the remaining work left versus the time in an iteration. A project backlog or hours can be expressed on the vertical axis, while time is indicated on the horizontal axis. A burn down chart is often used to determine when work will be completed on a project or an iteration.
An epic is a set of related user stories. They are also considered a “really big user story.”
An iteration is an iterative development concept that establishes a short time frame to deliver a set of software features or user stories. Each iteration includes typical waterfall activities such as analysis, design, development, and testing, yet they are time boxed within a one to four week window. At the end of an iteration, the progress is reviewed with the business customer, and recommended changes can be incorporated into future iterations.
Planning Poker is an estimation game created by Mike Cohn of Mountain Goat Software. Planning Poker is used to estimate individual user stories as a team activity. The team gathers and reviews user stories one at a time. As stories are presented, the team discusses the user story and provides an estimate of the work from their own deck of cards. All estimates are presented and discussed until the team arrives at a consensus.
A release is a set of working software delivered to the business customer resulting from a set of iterations. During release planning, teams will review a product backlog to organize user stories into the specific releases and iterations that deliver a functional product to the business customer.
Scrum is an iterative development methodology used to manage software projects. In scrum-based projects, there isn’t a specific project manager directing project team tasks; the team is self-directed, with co-located team members relying on communication over documentation for effective project delivery.
A sprint is a scrum-based agile methodology concept that is similar to an iteration. A sprint is time boxed to deliver a specific set of user stories and produce working features within a set time period. During sprint planning, the business customer or product owner specifies the user story priority, and the development team commits to the scope for a given sprint. During a sprint, user stories can be removed from the sprint scope, but new stories cannot be added; this allows project teams to focus on the goals of the sprint and deliver rapidly.
A story point is a relative estimation method used to determine the size of user stories so teams can determine how much work can be done during an iteration. Story points can be expressed in a simple Fibonacci sequence, t-shirt sizes, or a relative number. By adding up the number of user stories and associated story points, the project team can establish its velocity for future iteration planning.
A user story is an agile version of a project requirement. A user story is comprised of a couple of sentences that defines who, what, and why for a given requirement and can be documented on index cards or sticky notes. User stories are written by the business user to communicate the software need or want. User stories are intended to be concise, as communication between the business and development team is used to elaborate the user story and develop working software.
Hope this glossary will help your IT project teams standardize on frequently used project management terms, from critical path to work breakdown structure to scrum.
Despite the fact that Sweden has not always been a welfare state, now it is quite a stable and prosperous country with a good standard of living, a country, which is constantly developing. Let’s see how this development influences IT market, for example.
Sweden is making large annual investments in education and research and it is well-known for its good education level. Development has also come into information and communications technology, where Sweden is one of the leading countries in the world. However, the current problem in labor market is that there is not enough workforce in service companies, information technology, school system and health care sectors. Despite high technology level, Swedish people love their nature and concern for nature is playing a big role in future decisions. That is why Sweden is also putting a lot of effort to improve the environmental technology, which will be one of the most important industries in the future.
- Swedish IT sector
is strongly bound to the development of society. Sweden has many successful companies in IT and telecommunication sector and the companies have a great capacity of innovation. However from 34 000 of companies in Swedish ICT sector are micro enterprises with under 100 000€ turnover.
IT sector can be divided into four sub-sectors: Software and IT services, Tele-and data communications, manufacture of hardware and retail and services of computer . IT sector in Sweden is mostly dominated by the software market. Most of them have specialized in systems software for communications, business systems and applications software for telecommunications.
Software products and IT services earn 32% of the turnover in IT-sector. The growth in the software products and IT services has been very strong. The turnover has increased 32.5% between the year 2005 and 2009. The second in the IT-sector is Telecom and datacom services with 27.3%, manufacture of hardware comes next with 24.5% and the fourth largest is retail and servicing the hardware.
Swedish IT- sector employs about 3.9% of the total Swedish work force. Despite the economic recession, Swedish IT sector has stayed healthy. The main reason of IT sectors welfare is that the companies in Sweden believe that the IT-services and IT-products are essential for survival in the future. IT solutions are the key factor when it comes to make the business more effective and environmentally friendly. That is why the companies are putting effort to develop the IT solutions. Especially environmentally friendly solutions are the focus in the future in Sweden. Almost every company uses computers (97%) and 96% of them have an access to Internet. Internet has increased its significance in doing business.
- Mobile services
Are an increasing trend in business life. Already 60% of all companies are using mobile Internet connections in 2010. Swedish people are interested in a product which can increase their customers’ competitiveness and increase the company’s value for its owners, customers and another interest groups.
Swedish people are open-minded to test new services and products. The good thing is that they might accept the new product or service very easily, but the challenge is to keep the product or service updated. People in Sweden are well educated and they are looking all the time new innovative ways to run the business.
- The majority of companies cost are spent on software research and development. So they are willing to invest on software if they can see the product useful for the business. The most favorable applications are such as ERP, CRM, financial management and information software, on which the companies are spending about 60% of their founds.
-The environmental study concentrated more on macro indicators which means background forces behind the company’s activities such as social, technological, economical and political environment.
-Sweden’s lifestyle and culture form an ideal market place, because they are open-minded to test new services and products. The people are well educated and they are all the time searching for new innovation solutions to run their business. The positive point is that the customers are willing to accept new innovation, but they can also replace it when they can find a better solution. So the major challenge is to keep the product development up.
- Sweden is one of the leading countries in the development of information and communications technology. Almost every company has computer and Internet access and already 60% of all companies had a mobile Internet connection in 2010. So, mobile phones are becoming more and more important on daily business.
- Swedish people are putting a lot of effort to improve the environmental technology, so this “eco” thinking has a strong position in Swedish culture.
- Sweden is making a lot effort to software research and development and they want to be the top leaders in the software markets by 2020.
-The global software leaders Microsoft, International Business Machines (IBM), Oracle and SAP are also leading the Swedish software markets, but they are controlling particular areas of software branch which is why the local companies have also acquired a good position on the market.
-Swedish software and IT services have a larger number of companies than the other sub-sectors, but most of them are small companies.
- IT outsourcing has been a steadily growing part of the Swedish IT market, which is considered to be the largest market within the Nordic region and the 3rd largest in Europe. Every year more Swedish companies decide to outsource. The majority of Swedish companies decide to outsource due to conditions such as a shortage of IT domestic skills and high costs of performing in-house solutions, or a need to re-focus on core competencies. In order to avoid multiplied risks associated to outsourcing.
And what tendencies in Swedish IT market would you like to point out? It is interesting to know your opinion!
We said goodbye to the year 2013 and welcomed the year 2014. Businesses had time to reflect on the last year and now it is high time for business leaders to look at the projected trends of 2014 to ensure their organization is prepared for what is next.
The top ten technologies and trends that will be strategic for most organizations in 2014 have been recently highlighted by analysts at Gartner, Inc. It has been also emphasized that the most important trend for all enterprises is to determine their strategic technology and to follow it over the next three years.
Let’s have a deeper look at which technological trends are expected to make up IT market in 2014:
Mobile Device Diversity and Management
The consequences of the bring your own device (BYOD) trend is doubling or even tripling the size of the mobile workforce and it’s placing a tremendous strain on IT and finance departments. Gartner said that through 2018, the growing variety of mobile devices, computing styles and user contexts will make everything-anywhere strategies “unachievable.” Organizations need to totally review their BYOD policies and place emphasis on expectation about what employees can and cannot do and balance confidentiality and privacy requirements.
The Internet of Everything
The Internet is expanding beyond PCs and mobile devices into enterprise assets such as field equipment, and consumer items such as cars and televisions. The problem is that most enterprises and technology vendors have yet to explore the possibilities of an expanded internet and are not operationally or organizationally ready. Imagine digitizing the most important products, services and assets. The combination of data streams and services created by digitizing everything creates four basic usage models – Manage; Monetize; Operate; Extend. These four basic models can be applied to any of the four “internets” (people, things, information and places). Enterprises should not limit themselves to thinking that only the Internet of Things (i.e., assets and machines) has the potential to leverage these four models. Enterprises from all industries (heavy, mixed, and weightless) can leverage these four models.
As the power and capability of many mobile devices increases, the increased demand on networks, the cost of networks, and the need to manage bandwidth use “creates incentives, in some cases, to minimize the cloud application computing and storage footprint, and to exploit the intelligence and storage of the client device.” As mobile users continue to demand more complex uses of their mobile technologies, it will drive a need for higher levels of server-side computing and storage capacity.
The Era of the Personal Cloud
It is predicted that the push for more personal cloud technologies will lead to a shift toward services and away from devices. Previously, devices were of the highest priority. Now that will change. The type of device one has will be less important, although the devices will still be necessary. Users will use a collection of devices, with the PC remaining one of many options, but none of the devices will be the primary hub. It’s the personal cloud that will take on that role. Access to the cloud and the content stored or shared from the cloud will be managed and secured, rather than solely focusing on the device itself.
Software Defined Anything
Gartner sees an increased role for software in the datacenter. Software is now able to data center more hardware more efficiently and easily than ever imagined before. With Software-Defined Everything, the computing infrastructure is virtualized and delivered as a service. As it grows, more and more standards and regulations will pop up over 2014. Vendors are expected to be in particular reluctant to adopt standards that will affect the bottom line. However, on the bright side, it said the end consumer will benefit from simplicity, cost reduction opportunities and the possibility for consolidation.
These are intelligent personal assistants, smart advisors, advanced global industrial systems, autonomous vehicles. This seems to be the next big thing as it has a huge potential for future development. Analytics from Gartner predicts that through 2020 the smart machines will become a part of everyday life as well as have widespread and deep business impact. So there is a lot of success to be found for those who jump on board the trend early.
According to Gartner, 3D printing is not just for printing toys and jewelry. It is supposed to have a high impact on many industries, including consumer products, industrial and manufacturing. The sales of 3D printers are expected to grow by 75 percent in 2014 and almost double in 2015.
Looking at all these predictions can be a bit confusing and frightning for some enterprise organizations. However, it is essential to look at these trends with a long‐term mindset. Many of these trends will be a continual evolution for organizations over the next several years. It’s time to think strategically about the state of technology and evaluate how it can shape the future of your business.
What do you think of these predictions? Is there smth missed or wrong in your opinion? Please feel free to share your thoughts :)
When people want to start up a company they dream of having something like such global giants as Microsoft, Apple, Google, etc. but it isn’t easy and a lot of factors should be taken into account, including the country traditions, the government general policy in the field of entrepreneurship, the public attitude towards the innovative ideas, the existence of the precise set of tools to stimulate innovation, human capital and research, infrastructure and many others. Why is it easy to set up new companies in one country and difficult in another? To answer this question I investigated the experience of Scandinavian states in this field. Why precisely Scandinavia?
Nordic countries seem to be in the forefront of this development. Having given us Ericsson, Skype and Spotify Scandinavia has become a global leader in IT, mobile and multimedia development, and the pace of innovation shows no sign of slowing. The list of prosperous start – up companies itself is inspiring: Spotify, iZettle, SoundCloud, Klarna, Uber, Fishbrain, Sticky Wrapp in Sweden. I needn’t even mention such giants from Denmark as the app developer Podio and Unwire, a mobile platform provider which enables the hosting of TV content on mobile phone. Or let’s take Bird Step from Norway which continues to bring a raft of leading-edge mobile connectivity products to market. By the way, Sweden is currently No.1 in the world for IT, according to the latest Global Information Technology Report. In fact, all three Scandinavian countries are among the top 10.
I think, the reasons why start ups are so popular in Scandinavia are the following:
-political and economic factors play a key role. Scandinavian strong welfare system makes people feel safer and enables them to take risk to start their own company. Government support for tech innovation is evident in basic conveniences such as free Wi-Fi, and each administration has introduced specific measures to encourage tech development;
-clustering– the pooling of ideas by a group of organisations for common gain. Vivid example of this is creation of the Movation innovation partnership by 7 Norwegian tech companies in 2006 and the Nordic Tech Five linking universities in Denmark, Norway, Finland and Sweden. It has become possible due to the compact nature of the region which encourages a shared sense of purpose and a willingness to help each other out.
- tech culture and general positive attitude of Scandinavians to innovation is the biggest factor in Scandinavian supremacy. Scandinavian people pick up trends quickly. The same goes for new markets and technology. Common people are willing to embrace new technology, specifically regarding IT and communication. In 2009, a survey in Denmark found 72% of the population used the internet every day, people are not afraid of the internet in Scandinavia, everyone buys online. Isn’t it a dream for any country when old Nordic grannies surf the net, school children use laptops in exams and parents allow their kids online without fearing for their safety? It is a nation embracing IT.
- history and tradition play a crucial part in start-up trends, too. This enthusiasm for innovation, particularly mobile innovation, goes back decades. Sweden, for example, is very strong in engineering, from building the first telephones, to the global expansion of Nokia. Engineering has always been sought after, and tech is just the latest manifestation of that.
- strong support of tech talents and fierce competition for talents. All top-ranked Nordic universities enclose student incubators that offer everything from free working space to specific courses and mentor programs to encourage and foster virtuous entrepreneurship. To start a company Scandinavian entrepreneurs could find world class engineers and designers.
- scale advantage. The small scale of the Scandinavian market is used by Nordic start-ups to their advantage. They are more organized, disciplined and mobile.
- nation’s infrastructure – telecommunications, education and institutions – has helped deliver high broadband and mobile penetration and a tech-savvy population. The Internet in Scandinavian countries is pretty ubiquitous, affordable, and the average speed for both down- and upload is good.
- rapid globalization of Scandinavian start-ups. Nordic people have got more international quickly which makes it an advantage. Moreover, most Swedes, Norwegians and Danes are skilled English speakers which is a big advantage for start-ups to become international.
- great informal network which unites experienced and new entrepreneurs. The amount of knowledge sharing among community members is huge. The advice websites for start-up businesses are really popular. People help each other and share best practice information.
- availability of Venture capital helps start-ups make a good start, too. The amount of Venture capital available in relation to the GDP is higher in Scandinavia than in the rest of Europe.
- accelerator programmes for startups developed in Scandinavian countries are a relatively new, ‘modern’ breed of business incubators which attract small teams and provide a number of technology companies with seed funding, mentoring, training like SICS and Bonnier’s Accelerator in Sweden, beta FACTORY in Norway, Startup boot camp Mobility and Accelerace in Denmark.
- long, dark, and cold Scandinavian winters encourage people to stay inside and noodle away at creative endeavors, such as programming or gaming. So, when Scandinavians don’t chop wood they sit in front of the internet and consume. :)
As a conclusion, I’d like to say that there are probably many more aspects. And we don’t deny that Scandinavia has its challenges as well. Not everything is perfect, and there are exceptions to every rule. But simply judging from the quantity (and quality) of its entrepreneurial outcome the climate for starting your own company seems to be pretty good there in the north. Ladies and gentlemen, that’s why Scandinavia is winning. Feel free to add your thoughts in the comments!