Business Archives - Page 54 of 67 - Michael Horesh Business Coach and Mentor

17 July 2010

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Categories: Business, Israel

Sver Ploscker is one of Israel’s leading economic journalists. So, when his latest column echoed my thoughts on Israeli high tech, I was very pleased but saddened in one breath.

Yes, sure, my ego was gently stroked. However, he was also indicating that not all is looking so rosy for the future of the power house of the Israeli economy.

Ploscker based his thoughts around an interview with Haim Shani, the director-general of the finance ministry. Now Shani is no ordinary bureaucrat. When he was convinced to join the civil service, he had to give up on his successful post as CEO of Nice Systems, one of Israel’s largest software houses.

As Shani reports, high tech accounts for around 40% of Israel’s exports and 15% of its wealth. So, if something was to go wrong there, the country could be in trouble.

What seems to concern analysts is the “start” of the process. “Innovation”, that key buzz word, is no longer so paramount. Shani notes that less scientific degrees are being awarded. There is less local money available at seed stage. In fact he noted how more money is poured into real estate, locally and overseas, rather than into industry.

The discussionwas not totally pessimistic. However, the conclusion is clear. There is a clear need to evaluate quickly how to apply Israel’s many strengths and capabilities with changing global commercial trends.

15 July 2010

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Categories: Business, Israel

“Obviously we will set up a Facebook (marketing) operation in Israel.” Thus says their VP Advertising exec, David Fischer, in an interview with the Hebrew paper “The Marker”. And the company will join other megas like Siemens, Microsoft and Intel with significant operations in the Holyland.

Great news indeed, but is it merely covering up a more disturbing trend. Is the Israeli high tech boom, which has been running for nearly 20 years, reaching the end of its path?

The success of the recent decade, despite wars and recessions, has been staggering. GDP has risen over 3% per annum on average. Using OECD, Israel invests over 4.0% of its income in new industry. The country continues to rank amongst world leaders in patent generation. Jerusalem has become a centre for the solar technology. Etc, etc, etc.

And yet, something is not quite right. There are numerous reports that overall funding of new investments has not picked up since the credit crisis. A new index for biomed shares has proved to be a disappointment – although admittedly it was launched in a difficult period for stocks globally.

Michael Eisenberg is a leading local commentator. In the first of a 2-part article, he observes that “the world of technology is rapidly changing around us and we are not doing enough to address the challenges.” Eisenberg’s specific complaint refers to human resources – too many start ups chasing too few people, many of whom are trained in the wrong disciplines such as dot-net.

Eisenberg used the example of Conduit. It is no secret that this Rehovot based company has sales that have gone viral, rapidly . And yet, despite great benefits for employees, Eisenberg writes how they are finding it difficult to recruit the correct talent.

Eisenberg’s key theme of the wrong resources in wrong areas was rammed home to me yesterday. I attended an innovation seminar, organised by various public bodies in Jerusalem. For example, Bioline was there, again stressing the message that the capital city has much to offer towards the growth of the country.

The lead talk was given by a senior figure from the Office of the Chief Scientist. One of his slides proudly showed how despite the recession, his team has increased investment in new projects. And as he continued his explanation, revealing the breakdown between sectors such as telecoms, life sciences and others, somebody whispered quietly “where is the figure for cleantech projects”?

Where indeed? This new industry was not on the chart. That says something, and sends out a message unease.

The high tech and communications industrial revolution has been rapid. Globalisation is the buzz theme. Has Israel become too confident and not realised that the world’s innovative streak is now rushing ahead, without her up front?

13 July 2010

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Categories: Business, Israel

I dislike my mobile server, Orange. I recently wrote how their sales force botched a basic 101 course in customer care.

If that episode was not stupid enough, a few days ago Orange completely failed a “retake exam”. You see, I gave them a second chance and inquired about special deals, if you are located overseas.

I could not get a straight answer. They forgot to mention VAT or daily service charges, depending on the proposed deal. And when I asked who could help set up the phone as you go abroad, it turns out that the “help desk” ar the airport closes around 7.00pm, one of the busiest flight times of the day!

Let me be clear: For the moment, I am very unhappy with Orange. And for all their smily adverts and thousands of wonderful workers, nobody seems interested. Why should they care as the profit levels keep on shooting up?

This week, the Ministry of Communications has proposed allowing a fourth mobile supplier on to the market. The established teams have cried that there is no room. Surly, this was not out of self-interest!?!

Where the Israeli mobile industry leads, the specs sector is right behind. My wife wanted one pair of new glasses. This week, she went into several shops, mainly branches of large chains. We are talking about little bits of plastic, nicely cut, and coated with aluring colours.

Everything was exorbitantly priced. She could receive a 1+1 deal, but if she took one item only, it would be the same price as …2! She was offered multifocals, when she does not need them! She was offered……well everything she did not need, and was made to feel a fool for not accepting the chance to go into overdraft. Thankfully, she did not agree to any sales’ terms, and we got to eat a meal that night.

As she put it, all the assistants were simply shooting themselves in the foot, as her next stop is to consider laser surgery! She has an appointment on Thursday.

The internet and professional literature is awash with techniques on customer care. The Israeli retail sector is booming. Maybe the Israeli consumer should encourage a recession, and that way they will begin to be treated properly.

12 July 2010

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Categories: Business, Israel

I previously wrote about how Israeli high tech deservedly receives coverage in international media. Business Monitor International has just published its latest survey of technology from the Holy Land.

It makes for impressive reading for a country with only 7.5 million people and surrounded by geopolitical concerns. And the future outlook remains optimistic:

The Israeli IT market has a number of positive fundamentals, which should keep it in positive territory during BMI’s five-year forecast period. Household computer penetration of around 75% offers potential for further growth. High internet penetration and growing broadband penetration are drivers for the retail segment, while the financial services sector accounts for about 15% of Israeli IT spending.

I have copied the article in full below:

2010-07-11 22:24:05 – Recently published research from Business Monitor International, “Israel Information Technology Report Q3 2010”, is now available at Fast Market Research

BMI projects that the Israeli IT market will have a value of US$4.9bn in 2010. The Israeli IT market should gain enough momentum from key sectors to expand at a compound annual growth rate (CAGR) of 6% over BMI’s 2010-2014 forecast period, thanks to stable demand from defence and government sectors as well as opportunities in verticals like financial services and small and medium-sized enterprises (SMEs).

Spending is expected to resume single-digit growth in 2010 after a contraction in 2009. In early 2010, there were reports of a pick-up in the flow of projects. Vendors reported that demand had revived in the key financial services vertical, where new projects included an US$11mn IT outsourcing tender by the First International Bank of Israel. Healthcare, the public sector and utilities were also generating projects.

The Israeli IT market has a number of positive fundamentals, which should keep it in positive territory during BMI’s five-year forecast period. Household computer penetration of around 75% offers potential for further growth. High internet penetration and growing broadband penetration are drivers for the retail segment, while the financial services sector accounts for about 15% of Israeli IT spending.

Industry Developments

In 2009, Israel’s high-tech sector suffered as demand for high-tech exports dropped by at least 10-15%, with as many as 10,000 sector jobs feared to be at risk. This represented a major concern for the Israeli government given that high-tech accounted for around 10% of Israel’s economy, with annual sales estimated at around US$25bn. Major IT firms were retrenching in Israel, including SAP, Cisco and HP. IT is viewed as an important policy tool for the Israeli government’s 2008-2010 socio-economic policy framework. In 2009, the National Economic Council recently submitted a policy agenda to the government, which specified two main policy tracks of reducing poverty and achieving balanced growth. The first track was expected to emerge as the main priority.

As part of its modernisation agenda, the government is pressing ahead with various other strands of its egovernment project. Among other initiatives, there has also been spending on computers in healthcare and the nationwide paperless court initiative. The e-government programme is leading to increased demand for computers, with the Israeli government reaching supply agreements with vendors like Dell and HP.

Competitive Landscape

The Israeli IT services market is competitive, with leading multinational competitors IBM and HP – following its merger with EDS – both estimated to have Israeli IT services market shares of around 10%. HP Israel’s software division hosts HP’s biggest research and development (R&D) centre worldwide, and the company also has significant production facilities in Israel.

Leading IT services vendors, including Israeli companies Ness Technologies and Matrix as well as US company IBM, experienced mixed fortunes in the Israeli market in 2009. Ness Israel reported a 17% decline in full-year 2009 revenues compared with 2008, although around one-third of this was due to foreign currency effects. Meanwhile, market leader Matrix reported wins in a number of key sectors including healthcare, financial services, defence and government.

In 2010, Microsoft Israel, which as an annual turnover of around US$1bn, hopes that sales of its Windows 7 operating system, launched in October 2009, will boost its sales. Microsoft anticipated that support from leading PC makers would underpin success for the new system, despite some caution from businesses. Israel is also an important R&D centre for Microsoft, and in 2010 the company’s Israel R&D centre launched a new unified access gateway (UAG) product.

Computer Sales

The Israeli computer hardware market, including desktops, notebooks, servers and accessories, is projected at US$2.2bn in 2010, up from US$2.1bn in 2009. The market is expected to grow at a CAGR of 5% over the forecast period to reach US$2.6bn in 2014. Spending is expected to resume single-digit growth in 2010, after a contraction in 2009 due to the economic slowdown and unemployment hitting consumer demand for electronics goods. Household consumption moved into negative territory in 2009, and although there was a slight recovery in H209, trading conditions remained tough.

Software

Israeli software spending is projected at US$1.0bn in 2010, up from US$973mn in 2009. The packaged software segment is expected to grow at a CAGR of around 7% over the forecast period. Businesses are expected to remain cautious, deferring investments or looking for ‘good enough’ solutions to immediate problems. However, there should still be several growth areas going forward.

Spending on software is shifting towards the SME segment, which forms the mainstay of the Israeli business sector. Spending on enterprise solutions has grown since 2007, with reviving or emerging areas of opportunity including security, customer relationship management (CRM) solutions and business intelligence. In terms of verticals, the financial sector has been a mainstay of demand, with other key opportunities including defence and healthcare.

IT Services

The IT services segment is estimated at US$1.6bn in 2010, and this is expected to grow at a CAGR of 7% over the forecast period to reach US$2.1bn in 2014. In early 2010, there were reports of a pick-up in the flow of projects, but growth is expected to reach a higher trajectory in the second half of our five-year forecast period.

Government and defence are two key sectors likely to be a continued source of opportunities, because the factors driving spending in each case are not particularly sensitive to economic vicissitudes. Another key area of opportunity is healthcare IT. Despite failing to capitalise in the past, Israel is starting to emerge as a desirable location for packaged applications and localisation services.

E-Readiness

Israel’s relatively high PC penetration and the growing availability of broadband access mean that internet penetration is likely to continue its upward trajectory. The government has announced that it intends to make a big effort to narrow the digital gaps that manifest themselves across various demographic lines.

Israel’s strong broadband growth has long relied on a handful of developments across the market. These include the competition between Bezeq and the cable companies, with five major internet service providers (ISPs) vying for market share from both the corporate and residential markets, which enjoy high PC penetration rates, advanced telecoms infrastructure and minimal regulatory intervention. Another development likely to stimulate growth is the introduction of local loop unbundling (LLU), which will give alternative operators access to Bezeq’s network and will stimulate much greater competition. LLU was due to be implemented by end-2009.

For more information or to purchase this report, go to:
– www.fastmr.com/prod/71664_israel_information_technology_report_q ..

About Business Monitor International

Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets. BMI offers three main areas of expertise: Country Risk BMI’s country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports. Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports. View more research from Business Monitor International at www.fastmr.com/catalog/publishers.aspx?pubid=1010

11 July 2010

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Categories: Business, Israel

It’s the time of year, when Red Herring announces its picks for the new up-and-coming tech giants. Yet again, the number of Israeli firms are disproportionate to other countries.

Examples abound. In the North America category, the winner is Contendo, which provides internet acceleration software. Barely in existence for two years and with its HQ in sunny California, the founders and development are very much centered in the Holy Land.

In the European category, 8 of the top 100 firms selected are Israeli. I was particularly impressed by TaKaDu, when I saw it demonstrated last year. The software offers local authorities a simple and effective method to monitor water loss, thus saving millions in costs and wastage of a valuable resource.

Red Herring is not the only media watching Israeli companies. This weekend, I was reading the latest edition of Fast Company, which ran a special focus on WeCU. Based in Caesarea, this small outfit has developed a software-hardware-behaviour science combine, which detects intent. Applicable when handling airport security or workplace sensitivities, this proven approach does not require any physical or spoken contact with the “target”.

I know that the tech was evaluated by one of the arms of the American military, which unofficially indicated that WeCU are ahead of their competitors in the field. The company is currently completing another round of field trials.

CNBC has recently focused on creative companies. Three of the 25 named are from Israel. Of these, a biz dev colleague told me that he was exceptionally impressed by the skills of BriefCam, and he has taken them in to the UK market.

I have covered here homeland security, cleantech, internet, video surveillance, and more. On Friday, I had a long conversation with a Danish lecturer on renewal and change. He asked what Israeli culture possesses that allows for so much innovation. The answer is not straight forward. Whatever the analysis, the international community will continue to focus on Israel, when discussing new technologies.

8 July 2010

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Categories: Business, Israel

It is with some irony that I learnt that the word “goal” comes from Old French, something for their current failing national football team to reflect on.

In business, the word “goal” is used in its original form – a limit or boundary to seek out.

No – it is not just the World Cup bug that made me link the two concepts. This week, I was trying to explain to a young company the importance of setting targets and planning towards them. Otherwise, you tend to drift, lose focus, procrastinate. In fact, you often end up being totally busy, doing nothing commercially worthwhile.

“How to set business goals” is a well-worn phrase on google. Amazingly, most managers do not set them, and even fewer are reported to differentiate between short and long term targets.

I was speaking to a company that has been asked to make cutbacks by HQ. They have gone over budget and now sales are down. Salaried positions will have to be sacrificed to ensure that profit margins are protected. All very politically and financially correct.

Correct, until somebody then asked how they were going to increase sales. There were no resources available to invest in this seemingly irrelevant activity. 5 minutes of extra checking revealed that competitors are enjoying a boom. Big ouch!

A simple analysis revealed that HQ had been insisting that the unit toe the line as imposed from the top. As everybody ran around to please the “senders of e-mail”, all sides of the party forgot why they were in business; to sell in order to make a profit. Years of continued success have been converted in to….an empty hole with no end in sight.

In both my case studies, a large outfit and a small set up, the planning boards are coming out very quickly. The first team are looking closely at where they want their new firm to be by the end of year one. The second group is taking a near and far term approach, once HQ can realise that there is more to life than a piece of paper with numbers.

7 July 2010

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Categories: Business, Israel

BT (British Telecom)’s division, Openreach has just completed an US$800 m deal with Israel’s ECI. The UK’s broadband unit will be overhauled, delivering a faster and improved service for tens of millions of users.

Israel remains one of the UK’s main trading partners – both imports and exports. Overall, the figures were down around 25% in 2009, probably due to the global credit crisis. However, the first 5 months of 2010 have seen a sharp rebound of nearly 40%.

The outgoing British ambassador to Israel, Sir Tom Phillips, drove improved trade relations as one of the main themes of his tenure. And there have been some notable successes. Recent examples have included: –

Nice Systems, one of Israel’s premier risk software solutions, signed an extensive contract with the UK-based outsourcing company, Teleperformance.
Laline Candles will be investing in 30 new shops on the British mainland in the next 5 years.
Easy Jet’s new Tel Aviv route has been reporting 90% capacity
The Israeli Ministry of National Infrastructure has hired a UK consultancy to resolve disputes with overseas contractors in the energy sector.

And so the list goes on. Just last week, the new website of the Israel Britain Chamber of Commerce went live. It has listed news items on a series of bilateral contracts. Gas, cleantech, mobiles and even catering are just some of the sectors featured.

Within the next few months, there will be a new ambassador in Tel Aviv. The Israeli trade attache in London will return to be replaced by a very experienced colleague. The Chamber of Commerce has just elected a new Chairman. Together, these people have a strong act to follow, but with an excellent base and support from which to proceed onwards.

5 July 2010

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Categories: Business, Israel, Jerusalem, Palestinian Society

Last week, the Tel Aviv Stock Exchange held its 10th annual soiree in London. The big guns of the Israeli economy were there, led by Esther Levanon, the dynamic CEO of the exchange.

Levanon proudly recalled that once the Israeli economy used to be compared to that of Greece. Today, with Israel now a member of the elite in the MSCI exchanges, her position there is worth that of Greece, Portugal and Ireland combined.

Stanley Fischer, the governor of the Bank of Israel, and with an excellent reputation on the world banking stage, was hauled out in front of loads of tape recorders and video cameras. Fischer was ready to launch his speech at any given moment:

Israel banks encourage savings and rarely lend more than 70% of mortgage values.
Israeli workers cut their hours in the recession to protect jobs
The high tech sector now contributes to 51% of the value of the country’s exports.

The micro stats are just as impressive:

Unemployment is 7.2% and decreasing, as opposed to 10.0% in the USA and in Europe.
Israel has maintained its current account surplus
It maintains a 4.0% growth rate in most years
It invests 4.9% of its GDP (2.3% for the OECD)
Its public sector debt barely grew during the recession, where as the OECD average reflected a near 20% change.

Message: Israel is the place to invest

As the financial daily, “The Marker” pointed out – don’t mention the lousy education system or the economic concentration available in the hands of a few families, and life for Israel’s financial planners could seem almost perfect.

4 July 2010

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Categories: Business, Israel, Palestinian Society

It is politically correct to accept that Gaza’s economic woes are cause by Israeli policies. However, if you use IMF and World Bank stats, 3 points are immediately evident of Gaza’s history:

Under Egyptian rule up to 1967, the area was an economic no-go area with life expectancy under 60
With Israel in charge, growth leapt to over 5% per annum until 1999.
Bring on the Intifada and then Hamas rule, and its back to disaster time.

Fertile Gaza, with an economy that could be really successful, suffers from unemployment, poor sanitation and an authoritarian government.

For all the repeated criticism of Israel from UNRWA, NGOs, the Turkish Prime Minister and others, there is no starvation in Gaza. Consumer goods exist in quantity. There are even official tariffs to protect some local manufacturers and keep out imports. Hamas has refused to move even one Palestinian family from the refugee camps and into former Israeli towns.

I found a recent Newsweek article illuminating:-

While the three-year-old ban on many imports has posed a hardship for most Gazans, smugglers have been able to deliver these items through a network of tunnels connecting Gaza with Egypt. An Israeli television news segment—aired last week and widely discussed here—shows Palestinian shop owners on the phone with their Israeli suppliers, coordinating the delivery of goods by sea to Cyprus and onto Sinai, where they’re carted to Gaza through the tunnels.

So not much of a blockade. So what is likely to change now that Netanyahu has bowed again to international pressure and accepted most of Obama’s demands?

Will there be less firing on Israeli civilians, the main cause of Israeli hostility? Maybe – not out of love, but because Hamas has seen how the propaganda front can be more rewarding than firing thousands of missiles.

Ironically, if imports arrive directly into Gaza, prices may rise and Hamas may lose a source of its income. Hundreds will lose work in the tunnel industry and Hamas will cease to take its graft from the reduced contraband. Maybe, the activities will transferred to the overland ports of entry and “normality” will be restored.

Israel has agreed to up the numbers of trucks allowed to enter Gaza daily from around 100 to 150. Maybe exports can start up, which will produce a real bonus for the economy. The fact that NGOs have failed to call for this until now reveals how their focus was often directed against Israel than on behalf of Palestinians.

What would truly make a difference is if Hamas were to recognise Israel’s right to exist. In the West Bank, where the economy has grown by around 8% in the past 12 months, there is now cooperation over sewage schemes and alternative wind energy. Rami Levy, one of Israel’s largest supermarket chains, has a new branch near Bethlehem open to all.

Why don’t world politicians force Hamas to do something that is obvious, necessary, simple and humane; to recognise Israel and to live in peace with the state? Think how much we would ALL be better off.

2 July 2010

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Categories: Business

Yesterday, I wrote that there is no genetic code or magic formula to setting up a successful new business.

We can mention the need for dedication, loads of unexpected luck, hard work and many more factors. With my clients, I always stress the importance of dedicated planning from the outset.

I also like to draw their attention to the stories of those who have made it through the early stages. So I was very pleased to come across a page on the BBC website, which is dedicated to the anecdotes of successful entrepreneurs.

There are 10 separate videos; men and women, various age brackets, services and high tech, slow and immediate triumphs. Each clip lasts up to 10 minutes.

All the participants open up to the camera, and there are summaries of their key pointers or advice: Some of my favourites are: –

‘The right mental attitude’. (Yes, it ain’t always pretty or fair).
‘The simpler your idea, the better’. (You do not have the resources for too much).
‘Don’t wait – do it now’ (How many of us procrastinate?)
‘Stay focussed on your idea – don’t get distracted’ (Or else it’s back to procrastination).
‘Don’t embark on a start-up single-handedly’. (Even the best sports players have a coach).

There are some excellent individual moments of triumph in these stories. What they all seem to share is passion and commitment. And that should be a strong message for anybody just starting out.

Good luck!

1 July 2010

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Categories: Business

Most of us are tempted. We want to start out on our own, because we see dollar signs in front of our eyes.

However, the fact is that there is no special formula to achieving mega sales overnight. Perseverance, luck and creativity will play their parts. As I have written before, beginnings are rarely easy, and this is just as true in the world of commerce.

In my business mentoring, I come across interesting people with a tremendous range of talents and ideas. Sooner rather than later, several get stuck. The issues range from procrastination to lack of knowledge. Often, they are forced to come to a realisation that what is a simple task or step for most entrepreneurs actually drives fear into others. We all have our own wall.

As ever, there is no one single rule to follow in order to run a small company successfully.

Be warned: working for yourself isn’t for everyone. Just because you’re a great technician at what you do doesn’t mean you’ll automatically be a great entrepreneur, too. They’re two totally different hats to wear. Running the show solo requires ample amounts of determination, discipline, and fearlessness……..Marla Tabaka, a business coach who writes The Successful Soloist blog

In my mentoring, I encourage people to check their base approach – why they believe that they will succeed. Its one of those seemingly innocuous probes that takes us into many different facets.

A parallel approach was raised by Dr Robert Brookes , who recalled the work of Stephen Covey’s book, The Seven Habits of Highly Effective People. Covey was really asking how we want to be remembered at our funeral and rged that we adopt specific patterns of behaviour. His “First Three Habits” surround moving from dependence to independence

Habit 1: Be Proactive
Habit 2: Begin with the End in Mind
Habit 3: Put First Things First

That’s right: Covey could have been talking about setting up a business.

30 June 2010

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Categories: Business, Israel

Cleantech 2010 in Tel Aviv is Israel’s premiere platform, allowing the Holy Land to show off its technologies in this latest industrial revolution. The country may offer barely 400 companies in the field, but its capabilities are being copied by many others.

Better Place is driven by an Israeli – American CEO, Mr Shai Agassy, who intends that Israel will host the world’s first all-electric car network within the next 12 months. IDE operates 2 huge desalination plants in Israel and has been commissioned to expand an existing operation in China. Siemens has already invested hundreds of millions in Israeli solar technology, with a new agreement announced this week. Personally, I am involved in an exciting biomass project, successfully converting poisoned waste into energy.

I can mentioned algae farms. We can discuss wind technology, which redirects the direction of the air around the turbines. And there is much more out there on google.

But it goes further than that, much of it is unseen. Israel’s electricity company is completing a pilot project, involving 150 internet users. They have access to a 100 mega line, way faster and cheaper than anything currently available. Within approximately 30 months, it is expected that the whole country will have access to the same service.

And the OECD in its first report on Israeli agriculture has confirmed the important skills that the country possesses. The press release is none too encouraging, probably the sign of some childish internal politics. However, the content is extremely positive.

According to the report, ………, a string of reforms in (Israel’s agriculture) sector between 1990 and 2007 caused a 60% rise in output leading to an annual average growth rate of 2.2%, higher than any other industry and higher than in most OECD countries.

The report states that Israel enjoys advantages in season and expertise, which allow it to successfully export many of its crops to the European market, but that its primary source of agricultural export is in technology. According to the document, in 2007 agricultural technology exports amounted to $2.2 billion, eclipsing agro-food exports.

It is nearly a year ago since McKinsey confirmed Israel’s strong positioning in the cleantech sector. This month’s exhibition and news serves to consolidate and publicise these significant global advances.

28 June 2010

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Categories: Business, Israel

With the click of a button, an unhappy client could send your company or its sales into a tailspin. “Don’t underestimate the power of a disgruntled customer,” says Rebecca Morgan, who authored Calming Upset Customers.

Isn’t that obvious? Well, apparently not. We all know the stories of Dell and other multinationals who lost mega sales and many branding points by treating customers with arrogance. It would seem that bigger you are, there is a greater danger that you are less responsive to your income source.

Take the Israeli mobile operator, Orange, or Partner as it is sometimes known. It has a large and enticing website, with even larger profits to match. I called them to verify my latest monthly bill.

Do you think that I could get the customer service team to admit that there was a mistake? You must be joking. I asked for an explanation of how I was being charged. She responded. I said that her words did not match the line-by-line items. She said that her words also appeared on the bill. So what? What did that help me?

Her solution: Would I like to hear about a better deal? Nothing about how to resolve the discrepancy. So much for being a help desk.

In fact all my questions and comments were treated with the same kind of answer. In other words, the lady was well-trained and found a textbook response to each issue. Her problem was that she sounded just like… a textbook. Has nobody taught Orange staff that formalities do not work? In fact, they are offensive!

Anyway, I accepted the chance to hear about a different pricing system. So sexy voice number two comes on the phone to stroke my wounded ego. Yes, I deliberately use mixed metaphors, because I assume that this is part of “their” game. In effect, this was an insult to my intelligence, but they did not seem to understand that.

The new offer was clear. No penalty clause for changing programmes. But when pushed, she did admit that I had to commit to being on the scheme for 18 months. Why? Because “we are trying to help you”.

Sounds caring, yes? No, a thousand times, NO. If they wanted to help, they would just move me over to the new scheme immediately, no strings attached. Genuine assistance is something you learn about in the first lesson of the service for dummies course, which it would appear that Orange employees are not allowed to study.

As for the 18 months commitment, which other retail brand demands such loyalty from you? Does Safeway say that you can only shop with them, if you make all you purchases at their outlets for the whole month? Does your bank demand that you keep all your accounts with them? Do have you have to service your car at the same garage every time?

The 18 month rule is an abuse of the consumers right to freedom of choice, and it encourages Orange and their competitors to offer out lousy customer service.

And who is to blame? Well, let’s start with the regulators, but that is another blog altogether.

27 June 2010

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Categories: Business, Israel

EUREKA is a pan-European agency, investing €1.5 billion annually in start ups and emerging industries. Israel is considered one of the 5 most active partners of the project. For example, in 2008, it was associated with 40 of the 300 approved projects.

So, it comes as no surprise that this weekend, Israel was officially awarded the Presidency of EUREKA , succeeding Germany. In fact, of the 150 new initiatives, Israel will be concerned with 23 of them. Not bad, considering that Israel has only been a member since the year 2000.

Robert-Jan Smits, the deputy director-general of EUREKA, was quoted as seeing the Israeli leadership as a positive move for all. As reported in the Hebrew newspaper, Yediot,: –

Israel is a very good example of taking r&d seriously. Many European countries can learn from the way Israel’s government is involved in investing in industry. Israel has an educated workforce, excellent innovation and incubators…..

It will be interesting to see in what direction Israel will lead EUREKA. There has already been much talk of allowing in other countries, notably from Latin America. Israel’s minister for trade and industry, Fuad Ben Eliezer has also made it clear that he wants to bring Egypt into this exclusive club.

25 June 2010

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Categories: Business, Israel

Many analysts have commented how Israel’s successful high tech economy is a fact driven by necessity. Never was this more true than in the fields of medical devices and applications.

Specifically, look at the example of wound healing, a subject that reaches out to the civilian and heavy military markets alike in Israel. Estimates calculate the value of the global market at around US$9 billion.

And here’s the catch. Many of the global players with something significant to offer are Israeli:

Israel will have the world’s largest company for burn and chronic wound treatments, if all goes according to plan in a complex merger deal between Clal Biotechnology Industries Ltd. (TASE: CBI) portfolio companies MediWound Ltd. and Polyheal Ltd., which will come under the control of Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA). Under the proposed deal, MediWound will acquire full control of Polyheal, and Teva will gradually increase its stake in MediWound to 51%.

There are several other, but lesser known, Israeli companies, which operate in the field. One is called Cupron. It offers a copper-based platform technology, which is known to support skin regeneration. Could it make stitches in the skin an irrelevant subject?

These discoveries, shoved into the media limelight, come at a time, when there are growing shouts for economies to boycott Israeli products. The hypocrisy of such a world campaign is drawn out by these very products.

Can you imagine an organiser for these unilateral moves, which are often basted on hate turning round, saying: “I refuse Israeli treatment on my skin”? What nonsense!

23 June 2010

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Categories: Business, Israel, Jerusalem

I am one of the moderators at JBNF, a monthly meet up forum for business folk in the Jerusalem region. This week, we conducted a frantic session of speed dating; 40+ people getting to know each other’s commercial strengths inside 90 minutes.

I was drained by the end of it. And yet, the results were clear as people left the hall. It was more than the swapping of business cards. Meetings were being fixed up. Interviews and site visits were arranged. Seminar material was being snatched up. And much more.

Interspersed amongst the one-on-ones, we arranged for 3 guests speakers to give tips about how to network; the importance and structure of an elevator speech, how to listen to others with empathy, moving out of our comfort zones – these were just a few of the themes mentioned.

What did it boil down to? When you network, you are showing off your own brand. And remember:

Before seeking the spotlight, the first question you should answer is, “What do I have to offer that no one else can?”

I told the story of how so many of us, when faced with a reception where we know nobody, end up spending most of our time creating an in-depth relationship with a glass of orange juice. In fact, a quick look around will probably reveal 30 other people in a similar situation. The trick is to start talking to them and to create new hubs of contacts. Draw them in to your circle – after all, as they are probably just as bored as you, they will be only to happy to talk to you.

And that’s the point. Moving out of your comfort zone may not be easy at first. However, as most of us find once we have moved on, the new level is just as satisfying as your previous set up. Surprise!

22 June 2010

3 Comments

Categories: Business, Israel

There must be dozens of countries around the world, that every 4 years have hopes of getting to the World Cup Finals but continuously miss out.

Israel is a strong member of that not-so-unique contingent. In fact, similar comments can be made of it efforts at the Olympics. Far more is spoken and written than actually done…done, that is on the playing fields and track.

You see, Israel often has a major part at these sporting triumphs, although the role is confined to behind the scenes. For example, for the past decade, numerous companies from the Holy Land have secured contracts for security at the Olympics, and this includes software and hardware providers.

South Africa 2010 is no exception to the rule. LiveU is based north of Tel Aviv and connects real time video links to any camera within seconds. Barely in operation 4 years, by January 2010, their tech was used to capture behind the scenes action at the Grammy awards.

And as the current footballing grand prix plods on, LiveU has taken tens of its units to the World Cup. Clients renting their “black box” include media giants such as NBC and AP. Another line of sales are buses showing games as they are played.

40 workers, a growing line of investment partners and a small office in America. Amazing how simple it can be if you want to make it big. And millions around the world are now benefitting.

21 June 2010

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Categories: Business, Israel

I have just received my invitation to an exciting meeting of the “Council for the Improvement of Jerusalem”. Maybe long-winded in name, but the event will be designed to save future resources.

What the presenters will be talking about is a housing project for the caiptal, where the 50-100 new apartments will recycle their waste. The bottom line is that energy demands of the homes will be met without external support. Significantly, one of the key speeches will be given by Tamar Goldman, whose father Arnold Goldman has been a pioneer in the solar energy industry.

The presentation is scheduled to take place just 2 weeks after Israel’s annual showcase event: Cleantech. As the organisers point out….

There are 320 companies in Israel that can be defined as specializing in the CleanTech field. In the last two years, over 300 million dollars have been invested in the CleanTech industry. In the last two years, over 13 investment bodies were established in the CleanTech industry.

For a country of only 7.5m people, that is a remarkable achievement.

And while Israel is often mentioned for its strengths in solar and biomass technology, necessity has forced the country to take a lead in water purification. As the summer heat intensifies, I read this week that from a base of zero in 2004, this year nearly 300 million cubic meters of water will be made fit for drinking by purification. That stat will more than double by the year 2020.

These are not empty words. Earlier this month Tigo Energy raised US$10 million in ew financing. Israeli cleantech is definitely on the map.

20 June 2010

1 Comment

Categories: Business, Israel

What is the value of innovation to an economy?

When talking about Israel, the IMD Buiness School has noted how innovation has helped Israel out of the global recession quicker than most. Innovation has helped Israel to reach the levels of OECD membership. I have wondered if Israel has discovered the DNA of innovation.

A boutique Israeli software house, QMarkets, has taken the concept of innovation one stage further. It provides companies with a formal platform, allowing senior managers to engage with the ideas of their employees and then to act on them.

My colleagues and I have been involved with QMarkets for around two years now, particularly in the UK and European markets. For example, last month, EDG, a significant international consultancy group, started a series of trials with the company. This has been followed with orders from a large energy supplier in the UK and a European telecon giant, with several pilots also in the pipeline.

A true sign of Qmarkets emergence was its positioning on the prestigious executive internet TV channel, “Meet The Boss.” Here, Michael Stilger, the company’s director of Global Solutions, outlined the concept of “innovation led growth”. Bottom line: Instead of investing in a production line or a software, promoting or encouraging innovation will impact directly on a firm’s internal procedures – that is to say, more sales and /or less costs.

From there, it is only a short step to see why the economy will benefit at a macro level from innovation. Interested?

15 June 2010

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Categories: Business, Israel

One anonymous financial expert and blogger sees Israel’s housing market heading for a crash, taking the rest of the economy with it.

There are near daily comments in the Israeli press, arguing in parallel whether the financial mandarins are getting the real estate market right or wrong. Is it a bubble or not?

To judge from one anecdotal piece of evidence, the answer is that the banks confident that they are in control. Only today I was informed that two leading finance houses were fighting each other to grant a large loan to be secured against a significant piece of land. Certainly, not everything is rotting in the garden.

Yuval Steinitz is the current Minister of Finance, whose Jerusalem office is a brief drive away from the Holy Sites in the city. He can boast of a doctorate in philosophy, but has a limited background in economics. And yet, he is sitting fairly pretty at the moment. After all, even the most conservative estimate put growth in 2010 at over 3%.

An interview in a weekend paper demonstrates that Steinitz is aware of potential pitfalls. But for him, real estate is just one of several structural issues that are being actively tackled. For example, the government is ensuring that more flats are available to first time buyers, while mortgages regulations are being tightened.

Elsewhere, more investment will be placed to encourage the ultra orthodox and Arab communities to enter the workforce, when historically this has not been the situation. In order to address the “brain drain abroad”, high tech will receive more benefits, especially regarding the employment of local talent. The ministry of defence will have to justify financially new large programmes.

Steinitz also mentione that protection of pension plans, tax benefits for industry and other sacred cows are all being revisited. The aim is to ensure that the base structure of the economy matches the needs of the country over the coming decade.

In the next few days, Israel will officially become a member of the OECD. It is a club that Israel deserves to be part of, now and in the future.

Pages

More concerns about Israeli high tech

Israeli high tech dream – time to wake up?

More Israeli firms join Orange in failing customers

Economic value of Israeli high tech

Israeli tech companies draw global praise

What’s a goal worth?

Boost in British trade with Israel

How Jerusalem and Athens differ today

Gaza’s economic woes – what happens if the blockade is rescinded

Want to start a new business? Some case studies

So you want to start a new business…..

OECD confirms Israel “green and clean”

Orange, Israel, fails 101 “service for dummies” course

Eureka – EU blesses the world of start ups

Israel wounds a $9 billion market

When “branding” meets “networking”…

How tech brings you a better world cup

Israel puts cleantech back on the map

Innovation led growth

Having faith in the holy economy

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