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Communiqué

Communiqué is the regular newsletter from DeNové

Obama's commitment to technology

US President, Barrack Obama, has given the Americans hope and the chance to believe in a new American dream. As when John F. Kennedy entered the Oval Office in 1960, Barrack Obama will provide what the economy needs most - renewed self-confidence to foster growth for both business and industry. To kick-start this growth, the President has put a stimulus package together which is estimated at between $700bn (£475bn) and $1 trillion.

Obama strongly believes that America risks being left behind in the global economy. In his eyes, economies lying in Asia-Pacific pose the greatest threat to US-based industry, particularly in the technology and telecommunications sectors. Obama believes that “revolutionary advances” need to be made in these fields which will, in turn, help to bolster and reshape not only the American but also the global economy.

During his presidential campaign, Barrack Obama made it clear that he believed the Bush administration had come to represent one of the “most anti-science administrations in American history”. The new President is convinced that investment in technology will see the evolution of “home-grown innovations”, which will in turn help ensure the competitiveness the American technology sector needs in order to retain a leadership position. This will in turn stimulate growth in employment in America and in American based companies abroad. To support this, Obama’s administration will, without doubt, pursue an iron-fisted, liberal trade policy. This approach will aim to ensure that American technological commodities and services are treated fairly throughout the world.

Sometime in the next few days, showing his wholehearted commitment to the technology cause, Barrack Obama will appoint America’s first Chief Technology Officer, whose job it will be to ensure that the American government and all its agencies have the right infrastructure, policies and services in place for the 21st century. To quote the new President, “the 21st century tools of technology and telecommunications have unleashed the forces of globalization on a previously unimagined scale. They have flattened communications and labour markets and have contributed to a period of unprecedented innovation, making us more productive, connected global citizens. By maximizing the power of technology, we can strengthen the quality and affordability of our health care, advance climate-friendly energy development and deployment, improve education throughout the country”.

Obama’s mission is clear; he intends to make sure that America remains the major player, if not “world leader”, in technology.

 

Procurement - Europe presses the acclerator

Just before Christmas and in light of the economic crisis, the European Council invited the European Commission to adopt a number of measures as a response to the down turn. The result is the public procurement Directive 2004/18/EC which will allow accelerated procurement procedures where justified on the grounds of urgency.

The Commission has stated that the nature of the current economic situation “can justify the use of the accelerated procedure”. The Directive will reduce considerably the overall time limit of the procedure from 87 to 30 days. This new Directive will apply throughout 2009 and 2010 for all major public projects.

Finance permitting, this action may now see many EU countries seeking to bolster their economies with the aid of more rapid deployment of major public sector investment projects.


DeNové joins Intellect

In January 2009, DeNové joined Intellect, the leading UK trade association for the technology sector. Intellect’s focus encompasses Information and Communications Technologies (ICT), Electronics Manufacturing and Design, and Consumer Electronics (CE), including where these apply to defence and space-related programmes.

By joining Intellect, DeNové aims to share and expand its experience and expertise with fellow members to ensure that they are best placed to tackle the challenges we all face now and in the future.

 

NL & F - Setting the pace for road pricing

For years now, governments across Europe have deliberated, teetered and toyed with the idea of implementing automated road pricing schemes that charge on the basis of distance driven. Some would argue that this is the fairest way to charge for road use because you pay for what you get. As technology also allows for charges to be based on the time of day and the location/class of the road, charging regimes can be formulated to be fair and equitable. Some would also say that the absurdity of driving 130km in an hour on a motorway only then to queue at 0km per hour for the next fifteen minutes because you must hand €5.5 to the nice toll gate operator really needs to become a thing of the past.


The issue of electronic road pricing is still a political ‘hot potato’ in some countries, often as a result of cemented myths such as ‘the technology doesn’t work’, ‘the charges will be ruinous’, ‘human rights will be violated’. However, a number of countries are already eating the potato and are looking good on it, notably Germany which, since the beginning of 2005, has successfully charged all heavy goods vehicles a ‘free flow’, distance-based charge across its entire 12,500 km national motorway infrastructure. This scheme yields the German government € billions every year and, because it charges ‘greener’ vehicles less per km, has influenced haulage companies to invest in cleaner vehicles.

Other countries including Austria, Czech Republic, and Switzerland are also trail blazers for automated road pricing, having already implemented schemes themselves, and now, France and the Netherlands have stepped forward with plans to procure large-scale, national, distance-base road pricing systems of their own.

The electronic tolling market seems to be gathering momentum. The U.K., having led this drive some years ago, is now some way behind its neighbours. Its leaders have laid a national plan to one side and left implementation decisions to the outcome of local politicians, public opinion and referenda, which, heavily influenced by vociferous interest groups, have so far resulted in resounding rejection.  

Leaving the U.K. aside, the electronic tolling market in Europe is now yielding some of the largest national contracts ever seen as other countries continue their journey along their national roadmap for road charging. Who will be the winners in the competition for these contracts? Which companies are best placed to provide the systems and services required? In the summer of 2008, DeNové worked with Frost & Sullivan who analysed key competitors in this market and rated them in terms of electronic tolling capabilities and perceived brand value. The matrix below shows the results of this analysis. DeNové will be keeping an eye on this highly competitive scenario as the distance based electronic tolling market moves faster…and faster!

 



Market Review

Customer bail-out at Satyam?

On 7th January 2009, Satyam’s Chairman resigned after announcing that he had falsified company accounts. On 10th January 2009, the Company Law Board in India decided to dismiss the entire board of Satyam and appointed 10 new Government approved directors, throwing the firm into considerable turmoil.

Satyam is one of India’s largest applications development firms serving some of the world’s highest profile brands, including BMW, DuPont, General Electric, Sony and Unilever. The mood amongst their customers can be imagined as, at best, nervous and now may be the time for a fresh approach by competitive suppliers.

Contact us for further information on opportunities for new business acquisition.

UK presses ahead with major ICT procurements

SOCA, the UK Serious Organised Crime Agency, issued a tender notice for a radical overhaul of their entire ICT services. The estimated contract values up to £800m.

Other key contacts soon to be published include back office outsourcing at Chesterfield  City Council and Cambridgeshire County Council.

Contact us for more information on how to best approach and secure these opportunities.


 



Transport Select Committee continues its inquiry into UK road pricing

On 28th January 2009, the House of Commons Transport Select Committee continued its investigation into the need and/or alternatives to road pricing in order to reduce congestion and manage capacity on the UK’s roads. Witnesses for this session included Michèle Dix from Transport for London, Kulveer Ranger from the London Mayoral Team, Shona Johnston representing the Local Government Association and Graham Dalton, Chief Executive of the Highways Agency.

Contact us for summary feedback of this session.

Technology shares show remarkable resilience

Despite the headlines confirming the demise into Chapter 11 protection of Canadian technology giant, Nortel, technology shares appear to be showing remarkable resilience. It is interesting to observe that technology stocks have, in the main, not shown the erosion typical of most other sectors. The reasons for this are complex, but one theory suggests that technology companies have experienced extreme cyclical up and down swings sufficiently often so as to have developed structures and processes that are battle-hardened to fast-changing economic fortunes. Perhaps other sectors could do well to take a closer look at their technology cousins and learn.



 

 

 

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