Friday, January 09, 2009

China's Move To Keep More Money At Home May Hurt US Borrowers.

China's Move To Keep More Money At Home May Hurt US Borrowers.

The New York Times (1/7, A1, Bradsher) reports in a front page story, "China has bought more than $1 trillion of American debt, but as the global downturn has intensified, Beijing is starting to keep more of its money at home, a move that could have painful effects for American borrowers." In the last five years, China has "spent as much as one-seventh of its entire economic output buying foreign debt, mostly American. ... But now Beijing is seeking to pay for its own $600 billion stimulus -- just as tax revenue is falling sharply as the Chinese economy slows." One "danger is that investors will demand higher returns for holding Treasury securities, which will put pressure on the United States government to increase the interest rates those securities pay. As those interest rates increase, they will put pressure on the interest rates that other borrowers pay."

Audi Reports Sales Increase For 2008.

Audi Reports Sales Increase For 2008

The Wall Street Journal (1/9, B3, Rauwald) reports, "In a rare bright spot among automakers, Audi AG Thursday said sales rose 4.1 percent in 2008 and were up 17 percent in December, powered by its new Q5 small sport-utility vehicle and the new generation of its A4 series." The news about "the performance of Audi...comes at a time when automakers around the globe are slashing production as demand for new cars in major markets such as the US, Western Europe, and Japan remains woeful." The Journal notes, "Audi has been increasing sales in recent years by revamping core models like its best-selling A4 and the TT with sleek looks and better technology while also extending its model lineup to include sport-utility vehicles and sports cars like the R8." In 2008, "Audi narrowed the gap with its two larger German rivals, partly because it is relatively less exposed to the eroding US market."

"On the year, the company saw increased demand in Europe and Asia. But the effects of the global financial crisis were keenly felt in the United States where 2008 saw an overall 6.1 percent drop in sales on the year, including nearly 10 percent in December to only 7,712 vehicles," the AP (1/8) added. "Audi AG said Thursday it sold a record of more than 1 million vehicles globally in 2008."

AMR Research Study Finds Supply Chain Technology Market Will Grow 7% Annually to $9.2B in 2012

AMR Research Study Finds Supply Chain Technology Market Will Grow 7% Annually to $9.2B in 2012

AMR Research today released a study that estimates the supply chain management (SCM) applications market will grow 7% annually for the next five years, despite the gloomy economic conditions of 2008. Now a $6.5B market, AMR Research forecasts steady growth will bring the SCM applications market close to $9.2B in 2012.

Based on its analysis, AMR Research predicts there is a high likelihood the economic challenges of the coming years will offer much greater opportunity for supply chain technology adoption.

“The supply chain, and the technologies that support it, will play an important role in helping companies deal and thrive in an economy that is going to be quite unlike anything we’ve seen in the post-war era,” said John Fontanella, vice president of research at AMR Research.

The study named five major forces that will be at work in the economy and society in the foreseeable future, and how the supply chain and the technologies that support it will help companies in the next five years.

  • High inflation – Inflation will force supply chain managers to play an important role in protecting product and company margins through cost control and increased efficiencies in their operations.
  • Rising commodity prices – Pressure from higher commodity prices will bring supply more in line with demand and reduce inventory levels from raw materials to the finished product.
  • Threats to brand security – Counterfeiting, the gray market, and questionable quality standards will make brand protection a top priority. Companies will look to adopt risk mitigation and global trade technologies as well as analytics to monitor distribution channel buy-and-sell patterns.
  • Sustainability becomes a component of corporate decision making – Public sentiment will force substantive measures by industry to become more environmentally friendly. This will present opportunities to more directly connect product development efforts with supply chain management to minimize waste and material usage.
  • Cash is king – Capital spending will come under great scrutiny as companies preserve cash. Technologies that increase the velocity of cash collection, including B2B e-commerce, will become a critical component of future initiatives.

The report also found that SAP, Oracle, and Manhattan Associates were the three largest SCM vendors by revenue in 2007, with a market share of 13%, 10%, and 5% respectively.

For more information about this report, please visit www.amrresearch.com or call (617) 542-6600.

About AMR Research:

Bold Ideas. Compelling Research. Pragmatic Advice. AMR Research is the No. 1 research firm focused on the intersection of business processes with value chain and enterprise technologies. Founded in 1986, AMR Research provides subscription advisory services and peer networking opportunities to operations and IT executives in the consumer products, life sciences, manufacturing, and retail sectors. To learn more about our research and services, visit www.amrresearch.com.

AMR Research Finds Global Manufacturing Execution System (MES) Market Revenue Crossed $1B Marker in 2004

AMR Research Finds Global Manufacturing Execution System (MES) Market Revenue Crossed $1B Marker in 2004

AMR Research released a report today that found global Manufacturing Execution System (MES) market revenue reached an estimated $1.06B in 2004, a 50% increase since 2001. Compliance initiatives and ERP maturity are the two major drivers that have combined to create a perfect environment for MES market expansion.

“In 2001, the vast majority of the Fortune 1000 manufacturers AMR Research surveyed were in the throes of massive ERP rollouts,” said Alison Smith, senior research analyst at AMR Research. “As these draw to a close, manufacturers are realizing that their ability to effectively measure and manage the performance of their manufacturing assets hasn’t proportionately improved.”

AMR Research’s recent report identifies three main reasons for this imbalance:

  • Focus on application rationalization: In the rush to rationalize ERP systems to support standardizing business initiatives during the dot-com era, manufacturing, inventory management, and plant scheduling played second fiddle.
  • Lack of a real-time enterprise: ERP systems require production actuals to deliver the next level of benefit to an organization. In the absence of real-time manufacturing data, ERP will continue to drive business on a set of erroneous data.
  • Myth of lower Total Cost of Ownership (TCO): While lower TCO and the prospect of maintaining a single, omnipotent application have been seductive selling points at the corporate level, reality is settling in at the plant level. If ERP has to be heavily customized to support manufacturing, as is often the case, lower TCO goes out the window.

Since 2001, an increasing number of companies have begun to use MES to make the connection between enterprise systems and manufacturing. Industry specific examples of this include:

  • The A&D market for MES grew from an estimated $23M in 2001 to $57M in 2004 – an increase of nearly 150%.
  • MES revenue from sales into the food, beverage, and consumer products segment more than doubled from $30M in 2001 to $61M in 2004. The increase is due to the need to rapidly and consistently manage production across a high mix of brands and globally distributed manufacturing facilities.
  • Quality control and warranty cost recovery initiatives in the automotive industry caused MES revenue from sales into this segment to hit $52M in 2004, up from $21M in 2001.
  • The computer, electronics, and semiconductor market grew 39%, from $201M in 2001 to $280M in 2004.

The AMR Research report found that despite consolidation in the last five years, the MES market continues to support a myriad of best-of-breed vendors; no single vendor dominates the market. AMR Research predicts large automation vendors such as GE Fanuc, Invensys, Rockwell, and Siemens will increase their footprints in specific vertical segments.

Automation and “pure-play” vendors saw the largest growth over the past three years. Automation vendor revenue grew $208M (75%) from 2001 to 2004 while pure-play vendors grew $140M (114%).

AMR Research first coined the term Manufacturing Execution Systems (MES) in November, 1990. The most recent report, “MES Market Rides Perfect Storm Through $1B Barrier,” provides detailed information on the market size, vendor coverage areas, and recommendations for users seeking to extend visibility into their production environments. For more information on the report, please contact AMR Research at 617-542-6600 or visit www.amrresearch.com.

About AMR Research:
AMR Research provides world class research and actionable advice for executives tasked with delivering enhanced business process performance and cost savings with the aid of technology. Five thousand leaders in the Global 1000 put their trust in AMR Research’s integrity, depth of industry expertise, and passion for customer service to support their most critical business initiatives, including supply chain transformation, new product introduction, customer profitability, compliance and governance, and IT benefit realization. More information is available at www.amrresearch.com.

Wednesday, January 07, 2009

Der ideale IT-Mitarbeiter 2010

URL: http://www.manager-magazin.de/it/artikel/0,2828,599793,00.html
07. Januar 2009, 08:10 Uhr

Prognosen

Der ideale IT-Mitarbeiter 2010

Von Andrea König

Nerds waren gestern: Der IT-Experte der Zukunft soll vor Publikum sprechen können und betriebswirtschaftlich denken. Eine Gartner-Analystin, ein Berater und eine Professorin geben Ratschläge für die Jobausrichtung in der IT-Branche.

München - Schon 2010 könnte es so weit sein, dass die am heftigsten umworbenen ITler gar nicht diejenigen mit den besten Technikkenntnissen sind. Die Programmierer und Support-Mitarbeiter werden dann nämlich weg sein, weil ihre Jobs ausgelagert wurden. Was die IT-Abteilungen dann brauchen, sind Generalisten.

Souveränes Auftreten: Der ITler der Zukunft sollte Kontakte knüpfen und pflegen können
Zur Großbildansicht

Souveränes Auftreten: Der ITler der Zukunft sollte Kontakte knüpfen und pflegen können

© Corbis
Sie sollten sowohl die technische als auch die unternehmerische Seite verstehen. Menschen, die IT-Pläne entwerfen und gleichzeitig umsetzen können. Und zwar so, dass die Firma davon profitiert. Zudem sollen Arbeitnehmer innerhalb der Firma und mit Kunden Kontakte pflegen können. Zu diesem Ergebnis kommen eine Gartner-Analystin, ein Berater und eine Professorin bei einer Befragung des IT-Magazins Computerworld.com.

Dass der ITler der Zukunft diese Fähigkeiten mitbringen sollte, darin sind sich drei Forschungsgruppen einig. Aber aus welchem Grund braucht man bald nur noch Generalisten? Das liegt unter anderem an Veränderungen im Konsumentenverhalten, einem Anstieg von Firmenfusionen, Outsourcing, der Verbreitung mobiler Anwendungen und der Zunahme gespeicherter Daten.

Hinzu kommt: Viele der 2010 besonders gefragten Fähigkeiten erwirbt man abseits der IT. Dazu zählen beispielsweise gestalterisches Talent, exzellentes mathematisches Verständnis oder die Gabe zum Sprechen vor Publikum. Fähigkeiten, die IT-Mitarbeiter heute nicht automatisch mitbringen.

Vorreiter sind Unternehmen wie Google, Ebay und Yahoo, die längst Mathematik- und Finanzgurus rekrutieren. Die nationale Akademie der Wissenschaften in den USA hat Lebensbereiche identifiziert, in denen technische Fertigkeiten mit artistischen kombiniert werden. Ein Beispiel dafür ist das Computerspielen.

Gartner-Analystin Diane Morello beschreibt die ideale Belegschaft in ihrer Studie "IT Professional Outlook" als "nach außen fokussiertes und unternehmensorientiertes Kompetenzzentrum". Kollegen werden noch stärker als heute geografisch getrennt sein. Deshalb sollten sie lernen, im Team zu arbeiten. Auch mit Menschen, die sie vorher noch nicht kannten. Erfahrungen im Projektmanagement und in der Entwicklung neuer Applikationen werden 2010 unverzichtbar sein, glaubt Morello. Das gilt für Dienstleister ebenso wie für Softwareentwickler und IT-Unternehmen.

Managementfähigkeiten werden immer gefragter, weiß Morello. Bis 2010 übernehmen sechs von zehn IT-Fachkräften auch betriebswirtschaftliche Aufgaben. Gartner sagt außerdem voraus, dass in den kommenden zwei Jahren 10 bis 15 Prozent der IT-Fachkräfte ihren Job verlassen werden. Teils, weil ihre Aufgaben automatisiert werden oder weil sie an ihrer Tätigkeit das Interesse verlieren.

IT und BWL: "Die betriebswirtschaftliche Seite wird wichtiger als die technologische"
Zur Großbildansicht

IT und BWL: "Die betriebswirtschaftliche Seite wird wichtiger als die technologische"

© corbis
"Die Hot Jobs 2010 sind die Jobs, in denen Voraussetzungen geschaffen werden: Unternehmensarchitekten, System-Analysten und Projektmanager", sagt David Foote, Chef der IT-Beratung Foote Partners. "Wenn ich IT-Experte wäre, würde ich mich für einen dieser Jobs entscheiden. Viele können das allerdings gar nicht, weil sie solche Technokraten sind."

"Die betriebswirtschaftliche Seite wird wichtiger als die technologische", weiß Kate Kaiser, Professorin an der Marquette Universität in Milwaukee. 2005 führte sie mit 104 CIOs eine Studie durch und bestimmte, welche Fähigkeiten man für den Job braucht.

IT-Fachkräfte, die auch nach 2010 Erfolg haben werden, verfügen auch über betriebswirtschaftliche Kenntnisse. Falls nicht, werden auch sie Jobs finden - in Nischen.

Morello, Foote und Kaiser geben im Folgenden einige Tipps für die Jobausrichtung:

Unternehmensbereich

Durch Fusionen und Ankäufe werden Firmen immer größer. Aber es braucht mehr als technische Integration, wenn zwei Firmen erfolgreich fusionieren sollen. Während Firmen die technischen Aspekte beherrschen, sind sie "miserabel darin, Kulturen zusammenzuführen", sagt Foote. Zukünftige Schlüsselrollen sagt er Unternehmensarchitekten voraus, die in den Bereichen Technologie, Sicherheit und Daten tätig sind.

Firmen wie Microsoft und IBM rekrutieren schon jetzt Unternehmensarchitekten. "Sie sagen, dass sie untergehen, wenn ihre Architektur einen bestimmten Level nicht erreicht", so Foote.

Gartner fragte bei Hunderten von CIOs nach, wo sie die Wachstumsmärkte sehen. "Das Ergebnis war einstimmig: Prozess- und Beziehungsmanagement wurden am höchsten eingestuft", sagt Morello.

Dass die unternehmerische Seite als immer wichtiger eingestuft wird, liegt auch am Outsourcing. Wenn Firmen mit Drittanbietern zusammenarbeiten, müssen sie in Mitarbeiter investieren, die den Kontakt pflegen.

Technologie-Infrastruktur und Services

Die Gartner-Studie kam außerdem zu dem Ergebnis, dass die Fähigkeiten im Bereich Technologie-Infrastruktur und Services den stärksten Rückgang erleben werden. Jobs wie Programmierung werden häufig durch Automatisierung ersetzt oder ausgelagert. Anders fällt die Zukunftsprognose für System-Auditoren aus. Ihre Bedeutung wächst. "Compliance verschwindet nicht - sie wird wichtiger", weiß Foote.

Datensicherheit

Auch das Bewusstsein für Datensicherheit wird mit den aktuellen Datenmissbrauchsfällen stärker. IT-Sicherheit zählt laut Kaiser zu den zehn Fähigkeiten, die in den kommenden fünf Jahren hohe Bedeutung in Unternehmen erlangen werden.

Weltweit beschäftigen Firmen 1,4 Millionen IT-Sicherheitsspezialisten, ermittelte eine IDC-Studie Anfang des Jahres. Bis 2010 werde diese Zahl auf zwei Millionen steigen, sagen die Forscher voraus.

Archivierung

Hat ein Unternehmen eine firmenweite Server-Strategie, braucht es auch eine firmenweite Archivierungs-Strategie und die Fähigkeit, diese anzuwenden. "Storage-Administratoren sind schon jetzt sehr gefragt und teuer", sagt Foote.

Applikationsentwicklung

Applikationen werden bis 2010 ausgelagert. Interne Entwicklung wird es nach wie vor geben - nur völlig anders als heute. Sie werde kundenorientierter und biete strategische Vorteile, glaubt Foote.

Internet

In der Onlinebanking-Industrie wollen Firmen das Geld ihrer Kunden verwalten - vom Kredit bis zum Rentenkonto. Um auch 2010 noch erfolgreich zu sein, brauchen die Banken nutzerfreundliche Webseiten mit künstlicher Intelligenz, Data-Mining und ausreichenden Kapazitäten für Datenlagerung, so Foote.

"Schnelle Applikations-Entwicklung und rasches Programmieren sind sehr gut bezahlte Jobs. Aber sie setzen Flinkheit und Flexibilität voraus", sagt der IT-Experte.

Footes Mantra für die kommenden zehn Jahre: "Wenn Sie denken, dass jetzt schon Konkurrenz auf dem Markt herrscht, warten sie auf 2010. Ein globales Spielfeld, Innovationen und immer schnelle Technologien machen gefragte Fähigkeiten immer unverzichtbarer, wenn man konkurrenzfähig bleiben möchte."

Manufacturers Go Back to Basics in 2009

Manufacturers Go Back to Basics in 2009

Posted on Monday, January 05, 2009 5:02:11 PM

Businesses will need to optimize existing manufacturing assets while looking to alternative tools to boost their technology infrastructures.With few signs of an economic recovery on the immediate horizon, manufacturers will continue to do more with less in 2009, industry experts said today.

Technology budgets will not vanish, observers said, but moving forward the emphasis will not be on standard infrastructure upgrades, but instead on technologies that lower the cost of doing business.

With that in mind, industry experts are predicting that technology investments in 2009 will center on optimizing existing assets, right-sizing the supply chain, increasing sustainability efforts, and optimizing product lifecycle management and knowledge management.

The roadblocks have been well-documented. According to the Institute for Supply Management (ISM), the manufacturing sector failed to grow in December for the fifth consecutive month, and the overall economy contracted for the third consecutive month. In addition, new orders have contracted for 13 consecutive months and are at the lowest level on record, dating to January 1948. In addition, order backlogs have fallen to the lowest level since the ISM began its Backlog of Orders Index in January 1993. As a result, manufacturers are reducing inventories and shutting down capacity to offset the slower rate of activity, ISM reported last week.

A recent report from analyst firm Manufacturing Insights, titled, “Worldwide Manufacturing 2009 Top 10 Predictions,” offers a twist on the doomsday predictions. “The downturn represents an opportunity for manufacturing companies to recalibrate their operations,” the report states. “Channel partners can be rationalized, inventories reduced, production assets modernized, and, most importantly, supply and demand can be rebalanced in preparation for a recovery.”

For the past five years, manufacturers have earned a return on assets by outsourcing, selling off plants, and doing things that got assets off the books to lower cost and manage return on assets, Bob Parker, group vice president at Manufacturing Insights, told Managing Automation.

“What’s changing is, this is an economic situation created by a financial crisis, which means the days of lots of liquidity and plenty of capital available to invest are gone,” Parker said. “So there is an emphasis on technology that helps deliver higher performance from the fixed assets they already have.”

Parker predicted that manufacturers will delay major enterprise application deployments, an assertion that AMR Research supported with a recent forecast indicating low single-digit growth for the enterprise software market in 2009 as a result of cost containment initiatives at customer sites.

Indeed, an October 2008 Managing Automation Outlook poll found that in the United States, about 30% of respondents said they will increase their technology budgets anywhere from 5% to more than 10%, compared with about 55% the prior year saying so. The technology areas in which manufacturers plan to spend in 2009 include: wireless communications, manufacturing intelligence software, business intelligence applications, and, despite AMR’s prediction, even ERP.

Where infrastructure investments are needed, however, manufacturers will increasingly turn to cloud computing, software–as-a-service, open source, and Web 2.0 tools as alternatives to traditional client/server deployment, experts say.

While most of the technology in play in 2009 will aim to reduce the cost of doing business, some breakout areas of innovation will begin to surface in 2009, particularly in digital manufacturing, an area Manufacturing Insights calls “Operations Technology.”

By investing in PLM and digital manufacturing technology, and understanding how a production process can change, manufacturers will become agile enough to allow shared manufacturing capacity — that is, the ability to create another manufacturer’s product, Parker said.

“The idea of manufacturing as a competitive weapon, especially if you can think [beyond the notion of] ‘it’s my plant and the only products [made here] are my products,’ can be extremely valuable,” Parker said.

Going forward, “we see the investment in digital manufacturing as an overall product lifecycle investment that will be a sacred cow that survives the ax,” Parker said.Manufacturing technoloy, technology budgets, Manufacturing contractionBusinesses will need to optimize existing manufacturing assets while looking to alternative tools to boost their technology infrastructures.

Manufacturers Go Back to Basics in 2009

Manufacturers Go Back to Basics in 2009

Posted on Monday, January 05, 2009 5:02:11 PM

Businesses will need to optimize existing manufacturing assets while looking to alternative tools to boost their technology infrastructures.With few signs of an economic recovery on the immediate horizon, manufacturers will continue to do more with less in 2009, industry experts said today.

Technology budgets will not vanish, observers said, but moving forward the emphasis will not be on standard infrastructure upgrades, but instead on technologies that lower the cost of doing business.

With that in mind, industry experts are predicting that technology investments in 2009 will center on optimizing existing assets, right-sizing the supply chain, increasing sustainability efforts, and optimizing product lifecycle management and knowledge management.

The roadblocks have been well-documented. According to the Institute for Supply Management (ISM), the manufacturing sector failed to grow in December for the fifth consecutive month, and the overall economy contracted for the third consecutive month. In addition, new orders have contracted for 13 consecutive months and are at the lowest level on record, dating to January 1948. In addition, order backlogs have fallen to the lowest level since the ISM began its Backlog of Orders Index in January 1993. As a result, manufacturers are reducing inventories and shutting down capacity to offset the slower rate of activity, ISM reported last week.

A recent report from analyst firm Manufacturing Insights, titled, “Worldwide Manufacturing 2009 Top 10 Predictions,” offers a twist on the doomsday predictions. “The downturn represents an opportunity for manufacturing companies to recalibrate their operations,” the report states. “Channel partners can be rationalized, inventories reduced, production assets modernized, and, most importantly, supply and demand can be rebalanced in preparation for a recovery.”

For the past five years, manufacturers have earned a return on assets by outsourcing, selling off plants, and doing things that got assets off the books to lower cost and manage return on assets, Bob Parker, group vice president at Manufacturing Insights, told Managing Automation.

“What’s changing is, this is an economic situation created by a financial crisis, which means the days of lots of liquidity and plenty of capital available to invest are gone,” Parker said. “So there is an emphasis on technology that helps deliver higher performance from the fixed assets they already have.”

Parker predicted that manufacturers will delay major enterprise application deployments, an assertion that AMR Research supported with a recent forecast indicating low single-digit growth for the enterprise software market in 2009 as a result of cost containment initiatives at customer sites.

Indeed, an October 2008 Managing Automation Outlook poll found that in the United States, about 30% of respondents said they will increase their technology budgets anywhere from 5% to more than 10%, compared with about 55% the prior year saying so. The technology areas in which manufacturers plan to spend in 2009 include: wireless communications, manufacturing intelligence software, business intelligence applications, and, despite AMR’s prediction, even ERP.

Where infrastructure investments are needed, however, manufacturers will increasingly turn to cloud computing, software–as-a-service, open source, and Web 2.0 tools as alternatives to traditional client/server deployment, experts say.

While most of the technology in play in 2009 will aim to reduce the cost of doing business, some breakout areas of innovation will begin to surface in 2009, particularly in digital manufacturing, an area Manufacturing Insights calls “Operations Technology.”

By investing in PLM and digital manufacturing technology, and understanding how a production process can change, manufacturers will become agile enough to allow shared manufacturing capacity — that is, the ability to create another manufacturer’s product, Parker said.

“The idea of manufacturing as a competitive weapon, especially if you can think [beyond the notion of] ‘it’s my plant and the only products [made here] are my products,’ can be extremely valuable,” Parker said.

Going forward, “we see the investment in digital manufacturing as an overall product lifecycle investment that will be a sacred cow that survives the ax,” Parker said.Manufacturing technoloy, technology budgets, Manufacturing contractionBusinesses will need to optimize existing manufacturing assets while looking to alternative tools to boost their technology infrastructures.

December US Auto Sales Dip 36 Percent

December US Auto Sales Dip 36 Percent.

On the front page of its Marketplace section, the Wall Street Journal (1/6, B1, Terlep, Dolan) reports, "US auto sales tumbled again in December, capping one of the worst years for the industry in decades and solidifying the view that more turmoil lies ahead in 2009." According to Autodata Corp, "sales of cars and light trucks fell 36 percent to 896,124 vehicles. ... That is an improvement over both November and October," but "continuing the pattern of recent months, December's vehicle sales fell as cash-strapped Americans simply stayed away from dealerships or had difficulty securing auto loans. For many consumers, worries about losing their jobs and sinking home values trumped the year-end rebates and financing deals automakers rolled out in the last few weeks."

        The AP (1/6, Krisher) notes, "Huge rebates and zero-percent loans couldn't overcome economic uncertainty as US auto sales plunged 36 percent in December, capping a dismal year that saw sales free-fall by 2.9 million vehicles from 2007." The AP points out, "Every major manufacturer reported drops of more than 30 percent in December."

        Another AP (1/6, Fowler) article adds that Chrysler said on Monday "its December sales dropped 53 percent because of the recession and fewer fleet sales, while Toyota Motor Corp. reported a 37 percent slide and Honda Motor Co. said its sales tumbled 35 percent." Additionally, "Ford Motor Co.'s US sales fell 32 percent in December. General Motors Corp. and Nissan Motor Co. both posted 31 percent declines."

        Subaru Posts Increased US Sales For 2008. The AP (1/6) reports, "Subaru said Monday its US sales crept higher in 2008 on strong demand for Forester and Impreza models. The Japanese company is the only major automaker so far to post an increase in yearly sales," which "rose by 0.3 percent." But, because the "big increase in Forester sales failed to overcome declines in its remaining models," Subaru's sales in December "fell 7.7 percent" from the previous year. According to Subaru, "Forester sales surged 36.4 percent in 2008. The company's updated 2008 model-year Forester was named sport/utility of the year in December by Motor Trend magazine."

        GM Reports 2008 China Sales Up Six Percent. The AP (1/6) reports, "General Motors Corp. (GM) said Tuesday its 2008 sales in China rose 6 percent to 1.09 million vehicles, but growth slowed as the market suffered from an economic downturn." GM is targeting "China's booming auto market to drive global sales growth as North American demand slumps." The "automaker reported 19 percent sales growth in 2007 including joint ventures." Kevin Wale, president of GM China, said "a series of natural disasters and an increase in fuel prices earlier in the year exacerbated the impact of the global economic downturn in China."

A protocol that could make the Internet more secure is finally being implemented

Tuesday, January 06, 2009

A New Web of Trust

A protocol that could make the Internet more secure is finally being implemented.

By Erica Naone

--- from technologyreview.com

A core element of the Internet that helps millions of computer systems locate each other is finally getting a much-needed upgrade. The domain name system (DNS) works a lot like the Internet's phone book, translating the URLs that users type into a browser into the numerical addresses used to identify the servers that host the requested site.

Recently, this 30-year-old system has begun showing its age.

Last year, a team of high-profile security researchers raced to repair a critical flaw in DNS that made it possible to hijack legitimate communications, potentially directing unsuspecting Web surfers to malicious Web pages. The patch that the team came up with reduced the immediate danger but wasn't meant to be a permanent solution.

Credit: Technology Review

For a long-term fix, many experts are now looking toDNSSEC, a protocol that verifies DNS messages with digital signatures. The Public Interest Registry, which handles the .org domain, is implementing DNSSEC across all Web addresses ending with this suffix, and it plans to complete the first phase of the process early this year. The U.S. government has committed to turning on DNSSEC for .gov as well, and the newly formedDNSSEC Industry Coalition is pushing to get the protocol adopted even more widely.

This is something of a turnaround. In the 14 years since DNSSEC was first conceived, the protocol struggled to gain widespread adoption because it was seen to unnecessarily increase the complexity of implementing DNS. The key to the DNS flaw discovered last year is that the protocol was designed during a more trusting time and does not bother to authenticate information. Dan Kaminsky, director of penetration testing at IOActive, a security company based in Seattle, realized that, if an attacker could worm his way into a DNS communication, he could redirect Web traffic in almost any way. Features have been added to DNS to reduce the threat that messages will be hijacked, but DNSSEC adds real authentication to the system for the first time.

Alexa Raad, CEO of the Public Interest Registry, notes that someone had to be the first to implement the new protocol. Before now, she says, the organizations responsible for domain names weren't moving to integrate DNSSEC because they'd either be sending out credentials to servers that weren't listening for them, or they'd be listening for credentials that wouldn't be there. Raad says that the Public Interest Registry started integrating DNSSEC well before Kaminsky's flaw was announced, hoping to encourage adoption of the protocol by setting an example. The revelations of Kaminsky's flaw simply helped intensify the debate, she says. "For the past two years, a lot of the debate around DNSSEC centered around, 'Do we need it? Are there other technologies? How viable is it?' I think the debate has completely moved away from that. We all understand that DNS is in fact broken. The only solution for that is, in fact, DNSSEC. The debate is now, 'How do we deploy?'"

DNSSEC is about creating a "chain of trust," adds Ram Mohan, CTO of Afilias, which has been working to help the Public Interest Registry handle its deployment. There are many places where DNSSEC must be switched on in order for the chain of trust to flow unbroken from the user to a website. Once a top-level domain (such as .org or .com) implements DNSSEC, any website under that domain can choose to turn on DNSSEC as well, which is an important link in the chain. Since Internet service providers such as Comcast have started supporting DNSSEC, Mohan says, it's becoming possible for some website visits to fall largely under the protection of DNSSEC.

Paul Vixie, president of the Internet Systems Consortium, which maintains BIND, the software most commonly used to process DNS messages, expects the move toward DNSSEC to snowball. "With .gov and .org signed, there's finally a market for DNSSEC technology and services," he says. "Now that some others are implementing DNSSEC, many others will want to be in the business of providing DNSSEC solutions, and that will in turn make it possible for a lot of fence-sitters to finally climb down and join us."

Kaminsky himself was initially neutral on DNSSEC as a possible solution to the flaw that he discovered with DNS. He now sees DNSSEC as a good solution, but cautions that work still needs to be done to help it scale up. Most important, he says: other root domains, which are at the core of all DNS transactions, need to use DNSSEC. Although DNS was never designed to be at the heart of authentication on the Internet, "it is, and it's time we start treating it that way," Kaminsky adds.

Mohan says that he's hopeful that more domains will implement DNSSEC soon. "It's about damn time that DNS got more secure," he says. "The integrity of DNS traffic is starting to be questioned with the advent of phishing and botnets and stuff like that. Here is a concrete thing that can be done that is proven to eliminate a clear problem."

Thursday, January 01, 2009

Concrete Company Installs Solar Panels To Power Maintenance Facility

Concrete Company Installs Solar Panels To Power Maintenance Facility.

WCBV-TV Boston (12/30, Brown) reported on the upgrades being made at Boston Sand and Gravel, "the 95-year-old firm [that] has built its reputation on concrete using natural resources." Recently, the company installed "more than 550 solar panels," which, "on a typical day," can "supply power to the company's maintenance facility." The set of panels is "going to supply 75 percent of [the] energy requirements here at the garage," a company official noted, adding that "it also frees up about 120,000 kilowatt hours for the rest of the power grid over the course of a year." WBCV noted that this represents "an example of the state's Commonwealth Solar program," through which "money is given to businesses and homeowners to encourage alternative energy." Energy and Environmental Affairs Secretary Ian Bowles said, "In the rebate, basically saying the state is roughly going to pay for half the cost of your installation."

Saturday, December 27, 2008

A stabbing pain

German neo-Nazis

A stabbing pain

Dec 18th 2008 | BERLIN
From The Economist print edition

An attack on a police chief revives fears of the far right


EPA Where to put neo-Nazi rubbish

ALOIS MANNICHL, police chief of Passau, in Bavaria, pursues neo-Nazis to great lengths. A group recently buried a leader in a coffin draped with the swastika. Mr Mannichl had it dug up. On December 13th they took their revenge. Crying “you will not trample the graves of our comrades any more, you leftist pig,” somebody stabbed and almost killed Mr Mannichl at the door of his house in Fürstenzell, near Passau. This brazen attack on a senior policeman brings a “completely new dimension” to violence by right-wing extremists, declared Bavaria’s interior minister, Joachim Herrmann.

Germany’s far right is a variegated but worrying fringe that pursues its xenophobic aims through electoral politics and sometimes murderous violence, fuelled by self-glorifying demonstrations and “hatecore” music. It is stronger in the east than in the west. The National Democratic Party of Germany (NPD) has seats in two east German state legislatures (another far right party has deputies in Brandenburg) and does well in local elections. It won 5% of the vote in Saxony’s local election in June, getting 25% in one town. The far right got 2.5% of the vote in Bavaria’s election in September.

The Bundesamt für Verfassungsschutz, Germany’s domestic intelligence agency, reckons that some 31,000 people belong to 180 far-right organisations around the country. But many more are thought to share some of their attitudes. A fifth of Germans—and nearly 40% of Bavarians—dislike foreigners, down from a quarter two years ago.

Far-right violence in Bavaria is mostly low-level thuggery by young skinheads. They and others were responsible for 82 violent crimes in 2007, nearly twice as many as in 2006; but the rate subsided in the first half of 2008. The police have so far been spared. Now some wonder if the far right may produce its version of the Baader-Meinhof gang, which conducted a reign of terror against prominent Germans in the 1970s. This seems far-fetched. But the stabbing of Mr Mannichl has renewed calls for the banning of the NPD, which has ties to a number of even less savoury groups.

Thanks largely to Mr Mannichl, the neo-Nazi scene in Passau, a town of 50,000 at the confluence of the Danube and two other rivers, is a weedy affair. There are no cells in Passau itself, says Karl Synek, a Green member of the town council. Two or three meet in the neighbourhood in the few bars and cafés whose owners tolerate them, including a café in Fürstenzell. But Passau is a “white spot” on the map where far-right groups are trying to gain a foothold with help from allies on the other side of the border with Austria, says Mr Synek. With luck, a recovered Mr Mannichl will soon return to Passau’s defences.

The way the brain buys

The science of shopping

The way the brain buys

Dec 18th 2008 | BASINGSTOKE, ENGLAND
From The Economist print edition

Retailers are making breakthroughs in understanding their customers’ minds. Here is what they know about you


IT MAY have occurred to you, during the course of a dismal trawl round a supermarket indistinguishable from every other supermarket you have ever been into, to wonder why they are all the same. The answer is more sinister than depressing. It is not because the companies that operate them lack imagination. It is because they are all versed in the science of persuading people to buy things—a science that, thanks to technological advances, is beginning to unlock the innermost secrets of the consumer’s mind.

In the Sainsbury’s in Hatch Warren, Basingstoke, south-west of London, it takes a while for the mind to get into a shopping mode. This is why the area immediately inside the entrance of a supermarket is known as the “decompression zone”. People need to slow down and take stock of the surroundings, even if they are regulars. In sales terms this area is a bit of a loss, so it tends to be used more for promotion. Even the multi-packs of beer piled up here are designed more to hint at bargains within than to be lugged round the aisles. Wal-Mart, the world’s biggest retailer, famously employs “greeters” at the entrance to its stores. Whether or not they boost sales, a friendly welcome is said to cut shoplifting. It is harder to steal from nice people.

Immediately to the left in Sainsbury’s is another familiar sight: a “chill zone” for browsing magazines, books and DVDs, tempting impromptu purchases and slowing customers down. But those on a serious mission will keep walking ahead—and the first thing they come to is the fresh fruit and vegetables section.

For shoppers, this makes no sense. Fruit and vegetables can be easily damaged, so they should be bought at the end, not the beginning, of a shopping trip. But psychology is at work here: selecting good wholesome fresh food is an uplifting way to start shopping, and it makes people feel less guilty about reaching for the stodgy stuff later on.

Shoppers already know that everyday items, like milk, are invariably placed towards the back of a store to provide more opportunity to tempt customers. This is why pharmacies are generally at the rear, even in “convenience” stores. But supermarkets know shoppers know this, so they use other tricks, like placing popular items halfway along a section so that people have to walk all along the aisle looking for them. The idea is to boost “dwell time”: the length of time people spend in a store.

Traditionally retailers measure “footfall”, as the number of people entering a store is known, but those numbers say nothing about where people go and how long they spend there. But nowadays, a ubiquitous piece of technology can fill the gap: the mobile phone. Path Intelligence, a British company working with the Massachusetts Institute of Technology, tracked people’s phones at Gunwharf Quays, a large retail and leisure centre in Portsmouth—not by monitoring calls, but by plotting the positions of handsets as they transmit automatically to cellular networks. It found that when dwell time rose 1% sales rose 1.3%.

Having walked to the end of the fruit and vegetable aisle, Basingstoke’s hard-core shoppers arrive at counters of prepared food, the fishmonger, the butcher and the deli. Then there is the in-store bakery, which can be smelt before it is seen. Even small supermarkets now use in-store bakeries. Mostly these bake pre-prepared items and frozen dough, and they have boomed even though central bakeries that deliver to a number of stores are much more efficient. They do it for the smell of freshly baked bread, which makes people hungry and thus encourages people to buy not just bread but also other food, including frozen stuff.

Most of the information that shoppers are bombarded with is visual: labels, price stickers and advertising. But the wafting bread aroma shows smell can usefully be stimulated too, says Simon Harrop, chief executive of BRAND sense agency, a British specialist in multi-sensory marketing. In the aisle by the laundry section he suggests introducing the smell of freshly laundered sheets. Even the sound of sheets being folded could be reproduced here and contained within the area using the latest audio technology. The Aroma Company, which Mr Harrop founded, has put the smell of coconut into the shops of Thompson, a British travel agent. Some suntan oils smell of coconut, so the scent is supposed to remind people of past holidays. The company even infuses the fresh smell of citrus into a range of clothing made by Odeur, a Swedish company. It can waft for up to 13 washes.

Such techniques are increasingly popular because of a deepening understanding about how shoppers make choices. People tell market researchers and “focus groups” that they make rational decisions about what to buy, considering things like price, selection or convenience. But subconscious forces, involving emotion and memories, are clearly also at work.

Scientists used to assume that emotion and rationality were opposed to each other, but Antonio Damasio, now professor of neuroscience at the University of Southern California, has found that people who lose the ability to perceive or experience emotions as the result of a brain injury find it hard or impossible to make any decisions at all. They can’t shop.

Oh, that’s what I want

Researchers are now exploring these mechanisms by observing the brain at work. One of the most promising techniques is functional magnetic resonance imaging (fMRI), which uses a large scanner to detect changes in the blood flow in parts of the brain that correspond to increases or decreases in mental activity. People lying inside the scanners are shown different products or brands and then asked questions about them. What they say is compared with what they are thinking by looking at cognitive or emotional activity. The idea is that if, say, a part of the brain that is associated with pleasure lights up, then the product could be a winner. This is immensely valuable information because eight out of ten new consumer products usually fail, despite test marketing on people who say they would buy the item—but whose subconscious may have been thinking something different.

“We are just at the frontier of the subconscious,” says Eric Spangenberg, dean of the College of Business at Washington State University and an expert on the subtleties of marketing. “We know it’s there, we know there are responses and we know it is significant.” But companies commissioning such studies keep the results secret for commercial reasons. This makes Dr Spangenberg sure of one thing: “What I think I know, they probably know way more.”

We are just at the frontier of the subconscious

Retailers and producers talk a lot about the “moment of truth”. This is not a philosophical notion, but the point when people standing in the aisle decide what to buy and reach to get it. The Basingstoke store illustrates some of the ways used to get shoppers’ hands to wobble in the direction of a particular product. At the instant coffee selection, for example, branded products from the big producers are arranged at eye-level while cheaper ones are lower down, along with the supermarket’s own-label products.

Often head offices will send out elaborate plans of where everything has to be placed; Albertsons, a big American supermarket chain, calls these a “plan-a-gram”. Spot-checks are carried out to make sure instructions are followed to the letter. The reason for this strictness is that big retailers demand “slotting fees” to put suppliers’ goods on their shelves, and these vary according to which positions are considered to be prime space.

But shelf-positioning is fiercely fought over, not just by those trying to sell goods, but also by those arguing over how best to manipulate shoppers. Never mind all the academic papers written on how best to stack shelves, retailers have their own views. While many stores reckon eye-level is the top spot, some think a little higher is better. Others charge more for goods placed on “end caps”—displays at the end of the aisles which they reckon to have the greatest visibility (although some experts say it all depends on the direction in which people gyrate around a store—and opinion on that is also divided). To be on the right-hand-side of an eye-level selection is often considered the very best place, because most people are right-handed and most people’s eyes drift rightwards. Some supermarkets reserve that for their own-label “premium” goods. And supermarkets may categorise things in different ways, so chapatis may not be with breads, but with ready-meals of the Indian variety. So, even though some suppliers could be paying around $50,000 per store a year for a few feet of shelf space, many customers still can’t find what they are looking for.

Technology is making the process of monitoring shopper behaviour easier—which is why the security cameras in a store may be doing a lot more than simply watching out for theft. Rajeev Sharma, of Pennsylvania State University, founded a company called VideoMining to automate the process. It uses image-recognition software to scan the pictures from security cameras of shoppers while they are making their selections. It is capable of looking at the actions of hundreds of thousands of people. It can measure how many went straight to one brand, the number that dithered and those that compared several, at the same time as sorting shoppers by age, gender and ethnicity.

VideoMining analysed people in convenience stores buying beer. Typically it would take them two minutes, with the majority going straight to one brand. “This shows their mind was already made up; they were on autopilot,” says Dr Sharma. So brewers should spend their marketing money outside, not inside, the store. The analysis can also help establish the return on investment to a new advertising campaign by showing what proportion of beer-buyers can be persuaded to consider rival brands. Another study in a supermarket some 12% of people spent 90 seconds looking at juices, studying the labels but not selecting any. In supermarket decision-making time, that is forever. This implies that shoppers are very interested in juices as a healthy alternative to carbonated drinks, but are not sure which to buy. So there is a lot of scope for persuasion.

Reducing the selection on offer might help too. Cassie Mogilner of Stanford University and her colleagues found in a study that consumers like unfamiliar products to be categorised—even if the categories are meaningless. In a study of different coffees they found people were more satisfied with their choice if it came from a categorised selection, although it did not matter if the categories were marked simply A, B and C, or “mild”, “dark roast” and “nutty”.

Despite all the new technology, simply talking to consumers remains one of the most effective ways to improve the “customer experience”. Scott Bearse, a retail expert with Deloitte Consulting in Boston, Massachusetts, has led projects observing and quizzing tens of thousands of customers about how they feel about shopping. It began when a client complained that he had mountains of data on the one in four people that entered his store and bought something, but knew hardly anything about the vast majority who left without making a purchase. The “customer conversion” rate varies between types of store: it could be around 20% in some department stores but reach almost 100% in a grocery. And within the same store the conversion rate will vary in different sections.

People say they leave shops empty-handed more often because they are “unable to decide” than because prices are too high, says Mr Bearse. Working out what turns customers off is not difficult, yet stores still struggle with these issues: goods out of stock, long queues at the checkouts and poor levels of service. Getting customers to try something is one of the best ways of getting them to buy, adds Mr Bearse. Deloitte found that customers using fitting rooms convert at a rate of 85% compared with 58% for those that do not do so.

Often a customer struggling to decide which of two items is best ends up not buying either. A third “decoy” item, which is not quite as good as the other two, can make the choice easier and more pleasurable, according to a new study using fMRI carried out by Akshay Rao, a professor of marketing at the University of Minnesota. Happier customers are more likely to buy. Dr Rao believes the deliberate use of irrelevant alternatives should work in selling all sorts of goods and services, from cable TV to holidays.

The notion of shoppers wearing brain-scanning hats would be ridiculous

A lack of price tags is another turn-off, although getting that right will become crucial with the increasing use of Radio Frequency Identification (RFID) tags. These contain far more information than bar codes and can be scanned remotely. People have been predicting for years that they would shortly become ubiquitous; but, with costs continuing to fall, they eventually will. Tills will then become redundant, because everything shoppers put in their trolleys will be automatically detected and charged to their credit cards.

The basic mechanisms to do this are already in place. A store or loyalty card can be fitted with an RFID tag to identify customers on arrival. A device on the trolley could monitor everything placed in it, check with past spending patterns and nudge customers: “You have just passed the Oriels, which you usually buy here.”

Mind over matter

Technology will also begin to identify customers’ emotions. Dr Sharma’s software has the potential to analyse expressions, like smiles and grimaces, which are hard to fake. And although fMRI scanners presently need a crane to move, something that provides a similar result might one day be worn on your head. Researchers believe it is possible to correlate brain patterns with changes in electrical activity in the brain, which can be measured with electroencephalography (EEG) using electrodes placed on the scalp. Small EEG machines are already available, especially for computer gamers, which fit on the head.

The notion of shoppers wearing brain-scanning hats would be ridiculous if it were not so alarming. Privacy groups are already concerned about the rise of electronic surveillance that records what people do, let alone what they might be thinking. The San Francisco-based Electronic Frontier Foundation is concerned that because RFID tags can be read at a distance by anyone with the necessary equipment they could create “privacy pollution”; being used to discover what is in not only someone’s shopping trolley, but also their cupboards.

To some degree shoppers would have to “buy in” to the process: a bit like having an account with an online retailer which comes with the explicit knowledge that your past purchases and browsing history will be monitored and used to pitch purchase suggestions. And if that makes shopping easier—especially if sweetened with discounts—then consumers might sign up to it. When Dr Sharma asks shoppers what they think about his video-monitoring he says most people do not mind.

But what if psychological selling is done stealthily? That way lies grave perils. It is the anger not of privacy groups that retailers should fear, but of customers at being manipulated from behind the scenes.

There have been backlashes before: “The Hidden Persuaders” by Vance Packard, an American journalist, caused a sensation when it was first published in 1957 by revealing physiological techniques used by advertisers, including subliminal messages. It is what got Dr Spangenberg interested in the subject. He thinks shopping science has limits. “I don’t think you are going to be able to make someone buy a car or a computer that they don’t need,” he says. “But you might persuade them to choose one model instead of another. And importantly, they wouldn’t know it.” But if they did realise psychological methods were being used to influence their choice, “the counteraction can be so huge it can put someone off buying anything at all,” he adds.

Which is probably why at the end of this shopping trip there is not much in the trolley. At least the temptations at the checkout are easy to avoid: a few celebrity magazines and bags of sweets at the eye-level of children. But that will change too.

Barry Salzman, the chief executive of YCD Multimedia in New York, has big plans for the area around a cash till. He is using digital video screens displaying ads that relate to what someone is buying and which can also be linked with facial-recognition software to refine the displays according to the customer’s age or sex. His system is already being used in Aroma Espresso Bars in America to present, say, an advert for a chocolate croissant to someone buying only a cappuccino.

But the checkout in this Sainsbury’s comes to a halt because the teenager at the till is not old enough to sell alcohol and can’t attract the attention of a supervisor for permission to ring up a multi-pack of beer, which is therefore left behind on the counter. The science of shopping is a marvellously sophisticated business; the practice is still a little more primitive.

Wednesday, December 24, 2008

The Year Online

Wednesday, December 24, 2008

The Year Online

The business of social networking, cloud computing, and a flaw in the fabric of the Internet top the most notable stories of 2008.

By Erica Naone

Socializing Networks
Our collective obsession with social-networking sites continued in 2008, as did their search for a viable business model. (See "Social Networking Is Not a Business.") Although economic conditions have been grim for the industry in the past few months (see "Are Social Networks Sinking?"), enthusiasm for the sites continues to run high. Twitter, a popular but non-money-making poster child for the whole Web 2.0 industry, spawned an ecosystem of competitors, knockoffs, plug-ins, and add-ons (see "A Brief History of Microblogging"), some of which struggled to stay afloat as the site strained under the ever-increasing amount of data produced and requested by its users. (See "Twitter's Growing Pains.") Users themselves struggled to manage information overload from multiple social-networking services, prompting some companies to come up with ways to streamline by sharing data. (See "Who Owns Your Friends?") However, one of the biggest networks, Facebook, took a different approach: it carved out a position apart from its competitors. (See "A New Divide in Social Networks.")

Sharing data: Joseph Smarr, chief platform architect at Plaxo.
Credit: Toby Burditt

Into the Cloud
Amid the economic turmoil, some good news was that Web companies became cheaper to start than ever before: they could simply lease access to computer power from a growing list of "cloud computing" providers. (See "Cheap Infrastructure.") On the other hand, since many infrastructure services are offered by large companies such as Amazon and Google, this raised questions about smaller companies' increasing dependence on these giants. (See "Web App Writers: Rejoice, Beware.") Amazon's popular storage service also began functioning as a way to draw companies into relying on more and more of Amazon's offerings. (See "Amazon Aims at Content Delivery.") And a variety of open-source solutions jumped into the mix, hoping to make it easier for companies to understand how these infrastructure services work, while, in some cases, also grabbing a bit of market share for themselves. (See "Reaching for the Clouds" and "Opening Up the Cloud.") Meanwhile, the old guard rushed to catch up. Apple's MobileMe stumbled initially, and few people seem to understand what Microsoft's LiveMesh was supposed to do. (See "Lost in the Clouds.") But Microsoft is pushing hard to realize a plan in which cloud computing augments software rather than replaces it. (See "Craig Mundie's Cloud Vision.")

Patching the Internet
The core protocols that keep the Internet running were never designed for the kind of use that the Web gets today, and in 2008, the strain began to show. In particular, one system that showed its age was the domain name system (DNS), which translates the Web addresses typed into a browser into a numerical address that connects that browser to a server. It was designed in a more trusting era, and security researcher Dan Kaminsky discovered a major flaw in the system that had the potential to throw Web security into disarray. (See "The Flaw at the Heart of the Internet.") Companies scrambled to come up with a fix for DNS, but it wasn't the only protocol that needed an update. The border gateway protocol, which handles routing, has struggled under growing traffic. (See "The Social Life of Routers.") And experts are working to update the cryptographic algorithm that secures many online transactions, hoping to have a solution in place before the current system gets out of date. (See "An Algorithm with No Secrets.")

Data Equality
The debate over network neutrality heated up this year, made more urgent by skyrocketing video and multimedia traffic. (See "Internet Gridlock.") Even as Internet service providers and file-sharing networks struggle toward uneasy peace (see "Supercharged File Sharing"), the Beijing Olympics made it clear that the debate isn't just about money. Internet censorship continues, and free-speech advocates reported that the Chinese rules for censorship seem not to be uniform, leaving major search engines to set their own guidelines. (See "Search Engines' Chinese Self-Censorship.") An embarrassing incident involving the Chinese version of Skype showed that U.S. companies need to take care when forming partnerships within countries subject to censorship. (See "China's Eye on Web Chatter.")