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Tech & The District

 
Tech the way we see it: insights and musings on technology PR, policy and the District, from H&K’s D.C. Tech Team.

  • Fine Tuning the Tech Market

    Today, the Big Three of the auto industry faced Washington, but changes are reaching far beyond the lines of one business area. Just as the auto and banking industries have felt the economic crunch, tech companies from blue chip to Web 2.0 have been appearing in headlines with talk of mergers, closures and even new business ventures in hopes of riding out the slump.

    Here are a few changes in the tech landscape since Election Day:

    So what does it all mean? In a thriving economy, companies that may have had inferior services or products were able to exist and live off the surplus in capital. Now that funds are limited, consumers are cutting back spending. Perhaps we can look to lessons learned from the ever decreasing value of the Big Three in the auto industry and apply them to the tech space.

    Hopefully, we will only get the best of the best mobile service, laptops, and innovation, including a phase out of poorly crafted Web sites in an overpopulated Internet space. One result could be leniency in regulation, permitting larger companies to push out competition and raise prices.

    Either way, as we approach the holiday season, NPR warned me last week to not be surprised when I hear an influx of commercials announcing layaway options rather than in-store credit card offers... so put away your plastic and start saving those pennies the good ol' fashioned way!

    (Note: H&K works in some parts of the world with Verizon Business, Yahoo!, Microsoft and MGM.)

  • Tech Sector Making a Societal Impact

    Some of the most prominent initiatives companies are implementing, particularly in the tech sector, can have a major societal impact.

    Originally thought of as a "nice to have" for most companies environmental responsibility policies are going mainstream, and more corporations are beginning to invest in them. Why? Because these initiatives can be influential for two very important audiences: internal and external.

    What I find most interesting is how some companies frame their environmental policies. For example, Google last month unveiled a $4.4 trillion plan that aims to end U.S. dependence on fossil fuels for electricity generation. Everyone is talking about energy these days, even President-elect Barack Obama. So, on the surface, it makes sense that Google would jump on this very relevant bandwagon. However, digging a bit deeper, we see other fundamental reasons why Google might focus on energy. Google is the largest consumer of energy in the world. By investing in a program to reduce fossil fuels, Google is able to balance both its core business objectives of reducing cost and increasing profit, and the desire to be a good corporate citizen. Part of Microsoft's environmental campaign has centered around the environment as well. The company has also posted a climate change policy statement as well. Some of the programs Yahoo! has implemented include a commuter program for its employees, local green initiatives in the community and an established green team (such as the one launching this week at H&K!)

    Cisco Systems is another company with a fairly extensive environmental program. While some of its competitors, such as Juniper Networks, continue to build their programs, Cisco has taken an important step towards being a more environmentally-friendly company by developing more energy efficient technology and reducing waste of its discarded products. I also like Verizon's policy which encourages employee engagement in its environmental programs from the CEO all the way down, which could really boost morale within the company.

    Starbucks is taking a similar approach to Google in its desire to preserve natural resources. We've talked about how much energy Google consumes; now think about how much water Starbucks consumes in a day. The company has therefore focused on implementing a clean water program to provide fresh drinking water to underdeveloped countries, and partners with NGOs, such as Conservation International.

    What companies do you feel are developing the best environmental policies? Is it vital for companies to engage in these programs in order to be successful? Will President Obama's new energy policies, once fully developed, force companies to make changes to their current environmental plans?

    Either way, this space is one that bears watching in the near future!

    *Hill & Knowlton works with Yahoo!, Microsoft, Cisco, Starbucks and Verizon in some parts of the world.

  • Week in Events: November 17-23, 2008

    What do all of this week's events have in common?  They're all located just minutes from Metro.  This week, exercise your creative side, discuss national broadband policy and check out special appearances by Senator Chirs Dodd, former Senate Majority Leader Tom Daschle and Federal Reserve Bank of Richmond President Jeffrey M. Lacker.

  • Week in Events: November 10-16, 2008

    This week, have dinner with Wolfgang Puck and look out for more opportunities to network with industry professionals, as well as an appearance by the Treasury Department's Phillip Swagel.  Also, check out this sketch from Dana Milbank of the Washington Post.  Is this any indication of what the Assistant Secretary will say at this week's Titans Breakfast Series?

     

  • Congratulations Mr President-elect!

    After a long race and two eminently capable final choices for the American people, we now know who's going to be taking over 1600 Pennsylvania Ave in January.

    Many others have the details on how and why the race was won - and in no small part because of the use of recent online innovations in voter engagement, activation and money-raising. For comprehensive analyses of the race, check out the usual suspects like CNN.

    However, for those of us wondering what this all means, the team here at H&K DC has been putting some thought into just that...

    We have just published a preview of the President-elect's agenda - click here to check it out. It includes our sense on what those of us in the tech space need to be thinking about. I've included our initial thoughts below.

    Attachment: Preview Agenda.JPG (8231 bytes)

    http://nowwhat.hnkdev.com/

    Advancing Technology:  Creating a Transparent and Connected Democracy

    Rarely does anything move as swiftly as technology - especially not governments. The challenge of adopting policies that can keep pace with ever-evolving technological advances is a significant one. Almost all American lawmakers would agree that it is critical to get the laws and regulations governing the development of technology right in order to ensure the nation's leading role in global innovation and promote a healthy U.S. economy. However, opinions vary on what exactly it would mean to "get it right," and in the new political environment in the United States, it is safe to say the Democratic Party's opinions are likely going to be the ones that are enacted into law.

    To begin, President-elect Barack Obama has stated his commitment to creating a transparent and connected democracy, in part through opening up the government to citizens and using technology to "reform government and improve the exchange of information between the federal government and citizens while ensuring the security of our networks." In essence, Obama is likely to apply some of the technologies he used during his successful campaign to the federal government. Hardware and software companies, along with consultants who can provide expertise to the government on how to achieve those goals, could find business opportunities to share their knowledge and products with the government.

    Obama also has said he would create a new position of the nation's first Chief Technology Officer (CTO) to "ensure that our government and all its agencies have the right infrastructure, policies and services for the 21st century." This demonstrates the importance Obama will place on network safety and cyber security.

    Potential business opportunities for technology companies may also exist with other Obama proposals, such as his promotion of health information technology, encouragement to modernize public safety networks with new technologies, and support for "green" technological advances to address energy and environment issues. In particular, a much talked about second economic stimulus package that is likely to be considered in the lame duck session or early in 2009 will almost assuredly contain a big infrastructure and environmental component, and technology companies should find good opportunities to work on that initiative.

    However, it is very likely that companies will need to show a commitment to American job creation in their messaging to avoid scrutiny and possible regulation. As you'll note elsewhere in this report, Obama has made it clear that he will take action to reward those companies that create American jobs and remove any incentives for sending jobs overseas.

    Given the speed of movement in the technology industry, the political appointments at the Federal Communications Commission (FCC), Federal Trade Commission (FTC) and Commerce Department of an Obama Administration will be critical
  • T-minus 24 Hours...

    At this time tomorrow, Americans all across the country will be making their way to the polls (or laughing at those standing in the long lines if they are among the estimated 24.4 million who voted early), checking that oh-so-important box next to the name of the ticket they feel best qualified to lead our country for at least the next four years.

    So you may ask, what is the feeling in D.C. today, around the H&K office where less than two blocks away, curtains will be measured, china chosen and portraits hung starting this January?

    In two words: slightly chaotic.  Not sure if it's the election or the fact that HBO is filming an upcoming Sarah Jessica Parker series on the street adjacent to our office, but there is a definite buzz around here - almost like the city is on a caffeine high.  Obama vs. McCain banter is higher than ever and everyone is chatting about their Election Night plans.

    Outside things are just as other-worldly.  The popular breakfast/lunch spot across the street, Corner Bakery, has a sign posted that it will be open late tomorrow night - in case someone wants to make a run for baby bundt cakes and lattes while watching the returns? 

    To top it all off, the Redskins are playing the Pittsburgh Steelers in Monday Night Football tonight.  And so comes into play the Redskins Rule: if the Redskins win their last home game before a presidential election, the incumbent party held on to the White House. If they lose, the challenging party took over.  This has been true since 1937.  I can just see the Terrible Towels flying now.

    One thing is for sure: I can't wait for tomorrow.  And if you do nothing else of importance this week - get out and vote tomorrow!

  • Week in Events: November 3-9, 2008

    We're finally here:  election week.  McCain and Obama duke it out in what may officially be called the last round of a tumultuous campaign year.  The only thing more certain than whom the leading candidates will be casting their vote for come election day is the significance of this defining moment in American politics and technology.  Also look out for:

  • Tech or Treat!

    Happy Halloween from the D.C. Hill & Knowlton Tech team! If you're in D.C. you should definitely check out some of these events!

    Here are a few of pumpkins from our carving contest here in the office! We may be a little biased but our Tech 'O Tasker (in the back) is the best!

     

  • What is "White Space"? Why Does Dolly Care?

    Being based in D.C. and working in the Telco policy world, I've found myself immersed in the "white space" debate currently being duked out amongst wireless and other technology companies. You may be asking yourself what Dolly Parton, NFL and Joel Osteen have to do with this debate. Let's start at the beginning.

    What is "white space"?  White spaces are unused pockets of the TV spectrum that will become available when broadcasters move completely to digital television next year. The Digital TV transition will occur February 17, 2009 (that's another story).

    There are two options that the FCC is considering. The unlicensed route will make the "white space" spectrum available for free and with little regulation. The licensed route is the traditional method of auctioning off the spectrum, similar to the 700 MHz auction earlier this year.

    "Wi-Fi on Steroids?" (I prefer Red Bull).  Some high tech companies are advocating the unlicensed use of the spectrum, while others disagree and prefer the traditional licensed route.

    As for the fight on the hill, Rep. John Dingell of Michigan and Sen. Hillary Rodham Clinton of New York are for the licensed spectrum and Sen. John Kerry of Massachusetts is on the unlicensed side.

    This is where Dolly Parton comes in.

     


    Dolly Parton and several major sports leagues are opposed to the unlicensed use due to interference in wireless microphones that are used in concerts and by referees.

    In a letter to the FCC, Parton says:

    "As someone who uses the white spaces and knows the value of them for the work that I and many of my friends do around the country, I ask the FCC to recognize the entertainment industry's valuable contribution to the cultural life, I can unequivocally confirm that the importance of clear, consistent wireless microphone broadcasts simply cannot be overstated. This industry relies on wireless technology and is in jeopardy of being irreversibly devastated by the commission's pending decision."

    Who thought Dolly would ever care about (and be a user) "white space?"

    Federal Communications Commission (FCC) Chairman Kevin Martin is proposing that the FCC vote on the unlicensed use of the "white space" next Tuesday, November 4, at its monthly open meeting.   We'll be watching closely for its decision.  With so many items on the agenda for this meeting (including the Sprint-Clearwire merger), who knows if they will even get to "white spaces."

  • A new set of challenges for U.S. companies in China

    As many of you probably remember, back in the 1970's, 80's and even into the early 90's anti-American sentiment was one of the biggest challenges to doing business and selling U.S. products and brands in China. Luckily, those sentiments have changed and U.S., European, even some Japanese brands are in high-demand today. So if we've finally hugged-it-out, what are the new, 21st century challenges for U.S. companies and products trying to navigate the world's biggest market?

    Just walking the streets and malls of Beijing and Shanghai, I think the two key words in China today are "choice" and "discretion." There are more choices than ever in China when it comes to every product imaginable; computers, sneakers, soap, you name it.  In the past there were one or two choices if you wanted to buy a product; the Chinese brand or the foreign brand. Now, every brand sells here. And consumers are exercising unbelievable discretion when buying global brands. There was a time when Chinese consumers would just buy any global brand they could find. Now they're becoming connoisseurs picking products and brands from a wide catalogue of choices.  The next set of challenges here for U.S. companies is increased competition. The trick I believe is to offer a good quality product, localize your marketing strategy and don't rely on the pure novelty of it being a foriegn brand to help sell it in China anymore.

  • Week in Events: October 27-November 2, 2008

    It may be raining outside, but the District has never looked more alive!  This week, look out for former CEO and eBay President Meg Whitman, Congressman Tom Davis and a chance to network with emerging and top technology professionals in government and the private sector.

  • 15% is not standard practice here

    No matter how much I like the policy here, I still can't get over the fact that it's totally appropriate to yell across the room at your waiter, shout at random waiters on top of your own, spit on the floor if you so chose but it's not appropriate to leave even the smallest of tips. I'm learning a lot on this trip.

  • One place attack ads don’t play

    Despite an increasingly competitive PC market in China, the one thing you won't see a lot of is competitive de-positioning. Whether it's some of the work we do on competitive behind the scenes or obvious things like having an executive pointing out flaws in other's business models or products, culturally this is not considered an ethical and valid approach. I'm learning that here, even in a competitive market where even small margins mean big sales, companies are reluctant to challenge other company's claims and products. Commenting on other companies just doesn't happen. The message is extremely one-sided.  The mantra is talk only about the positive attributes of your company and if a reporter asks about a competitor the response is always; "no comment."

    As more of our U.S. clients head to China for conferences, press conferences and media tours, I thought this would helpful advice for you to pass along to clients making the trip. Please just scrub your messaging to be less direct than we would here in the U.S.

  • This week in Events

    Events for October 20-26, 2008

    The DC Metropolitan area is where technology and policy converge.  The District's unique location and international significance present local PR professionals with an unparalleled opportunity.  But now, we're opening the doors of this influential city to bring you the latest.  Each week Tech & The District will deliver the most noteworthy events to keep you in the loop.

  • Dude, You're Getting a...Samsung?

    Samsung announced last week that it will enter the PC market in the U.S.  The company has plans to introduce five new notebooks, including a few "netbooks," those uber-small laptops that are all the rage right now.

    The timing of this announcement seemed interesting to me, considering that according to Gartner's third quarter marketshare report, the economic crunch in the U.S. is now starting to take its toll on the PC market here.  It seems to me that emerging markets might be a better target at the moment to launch a low-cost netbook, when people are looking for various price points and are potentially investing in their first PC.

    Economic crunch aside, isn't the PC market somewhat saturated?  According to Gartner and IDC, HP continues to maintain its lead in worldwide marketshare over Dell, but between the two companies, they have almost one-third of the market, while other vendors fight for table scraps.  I think there are big opportunities for Samsung if it is able to capitalize on the economic situation here in the U.S. - but either way it's an interesting time for companies looking to break into the U.S.

    (Note:  H&K works with HP and Samsung.)

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