Change and Innovation in Financial Guidance...

In my first blog this year, “2009 –Year of Change”, I’ve mentioned this...

“It is great to see certain leaders stating that they will desist giving Quarterly projections!!!”

refering to GE’s decision to stop giving Quarterly Earnings. Now, according to Microsoft’s recent quarterly results,

“Microsoft is no longer able to offer quantitative revenue and EPS guidance for the balance of this fiscal year due to the volatility of market conditions”

To me it sounded revolutionary as this allows CEOs to focus on long-term growth rather than focusing energy meeting short-term quarterly earnings to please the analysts and the stock market. While this has already resulted in some down swings for MSFT stock, I think, it will be good for larger companies like GE and MSFT.

With a 50+ billion revenue stream, this change becomes more necessary to de-focus on short term and to take strategic long term initiatives.

Now that the external quarterly pressure is gone, I am sure, these companies will be meticulous in driving themselves to setting aggressive quarterly targets and drive operational efficiency to measure, monitor and meet them internally.

All the best GE and Microsoft... You are leading the “Change and Innovation in Financial Guidance”

Disruptive “Mobile” Innovation - Get...Set...Embrace...

Today Microsoft announced Q2 results and here is one of the possible reasoning right in the second paragraph.

“Client revenue declined 8% as a result of PC market weakness and a continued shift to lower priced netbooks”

In the light of this comment, I would like to point a quote from my blog dated 27 Sep 08 “I am a PC”
“ keep in mind, this is the era of mobile, ultra mobile, compact and ultra compact PCs…”

It is proven beyond doubt - “Small is Beautiful” and consumers will realize the power when innovations in mobile computing converge with Software As A Service or Cloud Services.

If you are still in doubt, read the story on "The President Obama's" determination towards mobility

The High Security Risk Attached to Obama’s Belt and Obama Gets His BlackBerry

Get...Set... Embrace... "Disruptive “Mobile” Innovations"

2009 - Year of "Change" and "Disruptive Innovation"

We have already seen the ideologies fall, Wall Street crash, big names winding down or seeking government help all across the globe and economies tumble into recession.

We have seen the many CEOs diminished and some come stronger in the wake of these changes and difficult times. We have seen businesses cashing in on the opportunity and some losing out in these troubled times.

It is great to see certain leaders stating that they will desist giving Quarterly projections!!!

For the first time we witnessed our savings diminish, our home prices go down, consumers get into their shells and we are hearing the term “Deflation” & seeing the effects of it.

2009  has come... How does the future looks like? What exciting things it holds for us?

Glazing the Crystal, I could see the year 2009 will be the year of Change and Disruptive Innovation.

1. Old way of doing things will no longer guarantee success; be it manufacturing, hardware, software or services

2. Newer disruptions out of the current crisis will emerge, but will take some more time

3. Leaders will be challenged and the most flexible ones will survive

4. Organizations that bet on and keep their most valued assets “People” with a long term perspective will succeed

5. There is nothing called stable / secure / comfortable. Be prepared for change and disruption will be the driving force.

6. It’s NOT just the hard skills or the soft skills that will reward. Those with a combination of both, speciality with generalist skills will take it all.

7. Social will rule; we are not only a Flat world, but a connected world; Collective wisdom or wisdom of the crowd will affect the way we perceive certain things.

8. Portable and ultra portable will be the order of the day in computing. SAAS, Cloud, NetPCs, Mobile Computing, 3G, affordability are all the at the top of the inflexion point.

9. While lower oil prices may dampen the efforts, a conscious desire for alternative energy has been kick started; we shall see breakthrough innovations in this area.

10. It’s NOT just the efficiency, capacity and price that will be differentiators. Quality, Usability, Perceived Value delivered and on top, social pride will be way to win over consumer hearts and minds.

Let me stop here and wish you all a Very Happy New Year 2009...