Category Archives: Sustainable Economic Development

Knowledge Process Outsourcing: Get Smart Now!

On 12 June, the transition from a service-based economy to a knowledge-based economy was the focus of this blog. This is the second in a series of articles regarding our competitiveness in the knowledge-based economy and the marketing opportunities associated with this competitiveness. Today’s topic is Knowledge Process Outsourcing (KPO). It is the one area of outsourcing in which the USA remains competitive (having ceded Information Technology Outsourcing (ITO) and Business Process Outsourcing (BPO) to India, China and other developing nations).

KPO consists of activities such as investment research services, marketing research, analytics and intelligence, engineering research and development, pharma/bio-tech research and development, legal research services, animation, content/publishing and education/e-learning. It is the fastest growing segment of outsourcing with a compound annual growth rate of 58 percent for the period 2005-2010. Steady growth in KPO services is projected to continue well into the next decade.

In a paper published on 1 March 2010, Gereffi and Fernandez-Stark identify the top ten KPO firms as of 2009 based on total revenues. Below is a listing of the headquarters of record for each firm identified in their article. Industry consolidation is making the determination of country-of-origin almost impossible.

Top 10 Knowledge Process Outsourcing Firms (2009):

  1. Gartner, Stamford, Connecticut, USA
  2. Genpact, Gurgaon, Haryana, India
  3. WNS, Mumbai, Maharashtra, India
  4. Forrester Research, Cambridge, Massachusetts, USA
  5. Evalueserve, New Delhi, India
  6. Integreon Managed Solutions, Los Angeles, California, USA
  7. CPA Global, St. Helier, Jersey, UK
  8. Pangea3, New York, New York, USA
  9. Fractal Analytics, Jersey City, New Jersey, USA
  10. Boston Analytics, Cambridge, Massachusetts, USA

To remain competitive in KPO services and in the knowledge-based economy requires more education, not less. In marketing, the future for students with demonstrable skills in marketing research, marketing analytics and metrics, digital marketing, inbound marketing, content-based marketing and database marketing looks promising. Most of these jobs require strong mathematical and analytical skills as well as an understanding of basic HTML, JavaScript, CSS and XHTML/XML coding.

Regionally, the outlook for jobs in the knowledge-based economy is positive. Five of the top ten KPO firms have headquarters located in the north-eastern corridor and two are located the Boston area. Somewhat optimistically, a recent posting on HubSpot identifies Boston as the future “Hub” or center of all things marketing.

The economic well-being of our region is dependent upon the success of our KPO and service firms. The success of these firms is predicated, in part, on the availability of highly educated marketing talent. Your future and their future demand that you get smart now.

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Open Source in Higher Education: Envisioning Change

“Although I do not, with some enthusiasts, believe that the human condition will ever advance to such a state of perfection as that there shall no longer be pain or vice in the world, yet I believe it susceptible of much improvement, and most of all in matters of government and religion; and that the diffusion of knowledge among the people is to be the instrument by which it is to be effected.”Thomas Jefferson to Pierre Samuel Dupont de Nemours, 1816. ME 14:491

 

Recently, the cost of public and private higher education has received attention in the mass media. In May, the New York Times published a series of articles (Plan B, Weighing the Costs and Student Loans) highlighting much of what is wrong with the current model: Colleges and Universities have priced themselves out of the middle-class market. State investment in public higher education is dwindling to the point that the designation of the public university is becoming a misnomer. At best, the new paradigm for public universities is that they are state-assisted. At worst, the harsh reality for public universities is that they are merely state-located (i.e., operating much like private universities but under the state banner). Rather than address the debate regarding who should shoulder the burden of the cost of higher education (the state versus the individual), my purpose is to highlight innovative efforts to address the problem, and thus remain true to Jefferson’s Utopian vision of an educated populace.

 

A Hidden Cost of Attending College: Textbooks

As of 1 July 2010, the Federal Government as part of the Higher Education Reauthorization Act has decreed that faculty must publicize their textbooks for an upcoming semester at the time students register. Failure to comply will result in a loss of Title IV Federal Financial Aid for the University. The purpose of the act is to provide students with full and transparent information regarding the cost of their course selections (thus, eliminating or mitigating the hidden cost). Textbooks are expensive and can cost students between $500 and $1,000 per semester (depending upon the course of study).

Creative open source alternatives are emerging to address this issue. The OpenCourseWare Consortium, launched in 2005, grew out of the MIT OpenCourseWare project launched in 1999. More than 200 colleges and universities world-wide participate in the OpenCourseWare Consortium. Professors and students can obtain syllabi, lectures and course materials from the website. (As an aside, MIT OCW announced on 12 May 2010 that it was adopting the python-based open source publishing environment Plone for its open courseware content management).

 

Another good resource for instructors looking for open source materials to use in their courses is the Multimedia Educational Resource for Learning and Online Teaching, or MERLOT. MERLOT serves as a repository for all things open source that pertain to education. It interfaces with the OpenCourseWare Consortium so there is some overlap in materials available for adoption. Both resources provide an affordable, high quality, open source option to professors who are concerned about the burden of the price of textbooks on their students.

And finally, a new textbook publishing model has been established by an innovative company called Flat World Knowledge (disclosure: I have a non-compensated professional affiliation with Flat World Knowledge). Launched in 2007, Flat World is quickly turning the textbook publishing industry on its head. Already the recipient of numerous awards for its innovative approach, an article regarding its disruptive business model may be accessed here.

 

As more textbooks become available via Flat World, complete with supporting or ancillary materials (powerpoint lecture slides, audio lectures, testbanks), it is expected that the adoption of these textbooks will grow exponentially. A colleague (Dr. Godwin Ariguzo) and I used the Flat World Knowledge marketing principles book to build the marketing principles course for the next innovative endeavor highlighted: The University of the People.

Free Access to Higher Education Online: The University of the People

Founded by award-winning entrepreneur Mr. Shai Reshef, the University of the People commenced classes on 10 September 2009. With the backing of the United Nations’ Global Alliance for ICT and Development and in partnership with the Yale Law School Information Society Project (ISP), the University of the People utilizes the active learning methodology or “learning-by-teaching” model. Courses are developed by content experts (disclosure: I am a non-compensated course developer for the University of the People) and offered as online courses using the Moodle open-source learning platform.

 

Think about it: providing students in the developing world with free access to higher education. It’s very Jeffersonian and may be the much-needed catalyst for sustainable economic development on a global basis. Intolerance is an outcome of ignorance. Likewise, ignorance begets poverty. By providing open access to higher education, one can envision a more tolerant Utopian world where the gap between haves and have-nots is diminished.

Envisioning Change

So what does all of this have to do with the status of higher education in the US? Clearly the need for an innovative new model is apparent: one in which barriers to access are removed or at the very least, tolerable. Innovative instructional methodologies and content delivery systems are reducing the need for huge investments in fixed assets by universities. It’s not hard to envision a time when the traditional four-year on-campus university residential experience becomes a thing of the past. After all, colleges and universities are the penultimate content marketers. To survive in challenging economic times calls for a radical shift in the concept of the university, course delivery and the college experience. Innovations in technology are making it possible to deliver courses asynchronously. I’m hopeful that in the near future, you’ll be accessing my marketing and international business courses from your mobile phone. I’m even more hopeful that I’ll be delivering these courses to you from my beach house after spending the morning surfing with Izzy Paskowitz (my Father’s day fantasy).

The open source movement is making the fantasy of access to free education a reality. It’s too bad that it didn’t happen in Jefferson’s lifetime. Happy Father’s Day.

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Tipping Point? More Like Ignition Point! The Rapid Ascension to the Knowledge-Based Economy and What it Means for Marketers

We’ve crossed into new territory and our ascension has been fostered by the rapid cycle of technological innovation, the proliferation of information technology infrastructure and the number of people connected to each other in real-time.

In a recent article about the Sectors of the Economy, Matt Rosenberg does a good job of defining the primary, secondary, tertiary, quaternary and quinary sectors of economic activity. As you know, most of the developed nation/states on the planet possess highly developed third-stage (tertiary stage) economies in which over 75 percent of economic activity is generated by service activities (including government). In the graphic below, this sector of economic activity is highlighted with a star to illustrate its importance to those of us living in developed countries.

Few have noticed that the countries in the developed world are shifting from a tertiary stage of economic activity to the quaternary stage of economic activity: a knowledge-based economy. Clearly the degree of connectedness has contributed to this almost imperceptible transition to the knowledge-based economy. So, although somewhat late and in the spirit of the World Cup, let’s officially declare the knowledge-based economy open for competition. As illustrated here, although service-based economic activities remain dominant, knowledge-based activities represent the growth area.

What does this have to do with marketing? Almost all of what exists in the realm of social media contributes to knowledge. New experts are emerging based on their knowledge of social media, best practices, diffusing knowledge and establishing their personal brand using content marketing.

Copyblogger provides an excellent overview of content marketing (Content Marketing 101), but the essence is that the content provider embraces, either explicitly or implicitly, the concept of open source and provides content for free. Thus, the answer to the question “What if we gave it away?” is that doing so builds networks and relationships that offer opportunities for monetization. In essence, content marketing is analogous to the primary economic sector activity of farming: you plant a seed (content), add water and fertilizer (more content) and wait for it to germinate and grow.

How is this marketing? In the knowledge-based economy, you (the knowledge provider) build your network globally through demonstrating mastery of some sought-after service (e.g., metrics and platforms ala HubSpot, knowledge and research ala Forrester, good content and innovative branding ala Chris Brogan). Marketing is the foundation of the knowledge-based economy.

For those of you already competing in the knowledge-based economy: congratulations on being innovators. For the rest of you, jump in now and become an early adopter before the landscape becomes too crowded to allow you to gain a foothold. Some knowledge required.

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