“Nine Emerging Minitrends to Watch” by Dr. John H. Vanston, MINITRENDS Author & Chairman, TFI

December 28, 2010

Happy holidays to Minitrends blog readers! We appreciate your interest in our Minitrends posts and activities. As we start the new year, there will be many opportunities for those who are alert enough to recognize emerging trends, perceptive enough to realize their importance, and clever enough to take advantage of them. Here I suggest nine Minitrends—emerging trends that will become significantly important within 2-5 years, but are not yet generally recognized—that are well worth examining for possible action by those ambitious individuals who seek to start new ventures or keep existing businesses innovative and competitive.

Unlike megatrends, Minitrends are of a scope and importance to offer attractive opportunities to individual entrepreneurs, decision-makers in small and mid-size businesses, innovative thinkers in large companies, and adventuresome investors. In my new book, MINITRENDS: How Innovators & Entrepreneurs & Discover & Profit From Business & Technology Trends, I categorize the nine Minitrends below to those most applicable to different-sized groups. (In the book, I also discuss the background, current trends, and business opportunities of each of these Minitrends in more depth.)  I do the same categorization below, but in reality, all provide opportunities to perceptive individuals in all-sized businesses.

Minitrends Particularly Applicable to Individuals or Small Groups of Individuals:

1. Expanding Involvement in Virtual Worlds (Free Virtual Worlds book excerpt available):

Virtual worlds are computer-based platforms that allow participants to engage in a wide range of real-world type activities, e.g., buying and building virtual world property, furnishing virtual world homes and offices, producing and selling virtual world goods, traveling, taking part in virtual world social activities such as parties and fundraisers, and communicating with other participants. Increasingly, virtual worlds are being used for educational purposes, product advertisements, new product modeling and testing, identification of new markets, and uncovering unexpected problems with new marketing programs.

2. Support for People Working at Home:

Although an increasing number of people are now conducting all or part of their work at home, these people often find they miss interacting with others and miss the convenience of facilities, equipment, and administrative support. A number of solutions are emerging to better meet the needs and desires of people working at home, including small offices or meeting rooms that can be rented by the day or the hour; chat rooms where people can meet informally to discuss ideas; semiformal groups that meet regularly to establish person-to-person interactions; and temporary support staffs organized to provide administrative assistance as needed.

3. Expanding Capabilities of Advanced Websites:

Although the World Wide Web had proven to be extremely popular, many believed a more interactive platform that took advantage of the Web’s power to communicate would be desirable (Web 2.0). Programmers are now expanding the capabilities of the Web to substitute computer activities for human activities, particularly activities that are repetitive, burdensome, and uninteresting (Web 3.0). Many believe Web 3.0 will eventually lead to effective artificial intelligence that can interact with humans in natural language.

Minitrends Particularly Applicable to Small and Medium-Size Companies:

4. Increasing Interest in Privacy:

Recent advances in technology, together with an increasing willingness of many to make personal information more easily available are threatening traditional concepts of privacy in terms of messaging, personal profiles, and identity. Techniques for countering these invasions of privacy, such as personal caution, technology aids, and group action are now being developed.

5. New Approaches to Giving and Receiving Advice:

Individuals and organizations commonly seek expert advice when making important decisions. In providing such advice, large consulting firms with large, multidisciplinary staffs, well-structured processes and procedures, huge computer capabilities, and long-standing reputations have traditionally had a major advantage. However, the ever-increasing power and ubiquity of information gathering, processing, and communicating technologies, small and medium-size consulting groups are often able to give more focused, timely, and user-friendly advice than the larger firms.

6. Evolution of Meaningful Maturity:

The twin trends of increasing life spans and decreasing retirement ages have caused a steady increase in retirement years. Because of social, personal interest, and/or financial reasons, many older individuals are either staying in their jobs longer or returning to the workforce. Their ability to utilize their experience, skills, and dedication effectively will depend on their current capabilities, their desires, and open opportunities to those willing to assist them.

Minitrends Particularly Applicable to Large Companies:

7. Advances in Digital Manufacturing:

Advanced digital manufacturing (ADM) processes build complex, custom-made parts by the addition of successive layers of material rather than traditional machining processes that cut, bend, and machine a part from stock material. The processes allow quicker production of prototypes and small production runs at a much lower cost. Recent ADM advances, including improved yield rates, reduced time-to-market, increasing variety of materials, and advances in 3D modeling software, have made ADM processes increasingly attractive to many manufacturers.

8. Increasing Electricity Use in Manufacturing:

The characteristics of electric power, such as high power density, no heat transfer medium requirements, controlled energy distribution, reduced material waste, and less environmental impacts, provide a number of benefits to manufacturing processes. Its use, however, has been limited by its relatively high cost. A number of factors, including advances in control technologies, changing customer needs, global competition, and increasing concern about the environment, are driving an increasing growth in the use of electricity in industrial processes.

9. New Applications of Nanotechnology:

When many substances are reduced to nano-size (100 nanometers or less) they often exhibit very different physical, electrical, chemical, and optical properties from the same substance at macro-size. These new properties often provide very unique and useful characteristics to nano-materials that can be used in a wide range of practical applications, such as cancer treatment, very high strength materials, special electronic systems, and water purification. Improved production techniques, decreased costs, and growing experience and understanding are increasing the practical applications of nanotechnologies

Minitrend involvement can give you a way to separate yourself from your colleagues and contemporaries. It provides a means for materially improving your business situation, your financial standing, and your personal satisfaction. I hope the Minitrends listed above will assist you or inspire you to launch your own exciting, profitable Minitrend Adventure that allows you to utilize your imagination, your logic, your innovative nature, and your basic good sense in the coming year.

Copyright 2011. Please feel free to reprint this article in whole or part with due credit to: “by Dr. John H. Vanston, MINITRENDS Author and Chairman, Technology Futures, Inc.” Thanks!

New Employment Trend: No Employment

November 19, 2010

A pair of stories in The Wall Street Journal on Friday, November 19, illustrate a growing trend for startup companies: avoiding hiring any employees.

Pulitzer-Prize winning journalist, Mark Whitehouse, who recently joined the Journal‘s New York office as a senior economics correspondent after years working in Russia, profiled financial analysis startup, MCAP Research, in Montclair, New Jersey, which epitomizes the lean, new startup environment by eschewing any significant capital investments or hiring employees.

The firm was started two years ago by Efrem Meretab, a native of Eritrea, who gave up his job as a stock analyst to open the ultra-lean company. Whitehouse says,

His experience demonstrates how advances in technology and communications are allowing some small companies to sell products world-wide without creating many jobs in the U.S. or spending much money on things made in the U.S.

Whitehouse cites two main factors driving the company’s lean profile: outsourcing programming to the Ukraine and Pakistan while taking advantage of Amazon’s cloud instead of purchasing servers. We have discussed the trend toward cloud computing in many posts on this blog, but never for the solopreneur.

A related story also written by Mark Whitehouse with Justin Lahart, a former CNN/Money correspondent who covers economics for the Journal, reports that startups are not contributing to the growth in employment usually associated with periods of economic recovery.

The number of companies with at least one employee fell by 100,000, or 2%, in the year that ended March 31, the Labor Department reported Thursday. That was the second worst performance in 18 years, the worst being the 3.4% drop in the previous year.

Startups were first hammered by the recession, with more closing that opening since 2008, then strangled by tight capital markets. Angel investing still has not recovered, according to the Center for Venture Research at the University of New Hampshire, which reports that less has been invested in the first half of 2010 than during the recession years of 2008 and 2009.

In their new book, MINITRENDS, John and Carrie Vanston devote a significant portion of the book to new business opportunities serving a growing work-at-home workforce. In a previous post on this blog, we discussed how cloud computing has enabled temp agencies to apply the same just-in-time inventory to the workforce that auto companies have brought to manufacturing.

Without capital to grow their businesses, and with access to a global marketplace of contract workers, companies have learned to prosper by renting rather than buying assets and outsourcing services. If the Vanstons are correct — and their track record (PDF) on such predictions is excellent — the solopreneur will no longer be a trend coming out of this recession but the new standard operating procedure.

We welcome your thoughts about this ultra-lean method of bootstrapping high-tech businesses.

STEVE O’KEEFE
News Editor, Minitrends Blog

Source: “Starting a Global Business, With No U.S. Employees,” The Wall Street Journal, 11/19/10
Source: “Few Businesses Sprout, With Even Fewer Jobs,” The Wall Street Journal, 11/19/10
Photo courtesy of psd (Paul Downey), used under its Creative Commons license.

Nonprofits Take Social Networking to New Heights

November 12, 2010

Social networking is a megatrend that has been gaining momentum since bulletin boards first made it possible for people to schmooze online in the 1980s. Out of this megatrend have come numerous Minitrends that investors have profitably mined over the past five years, including social bookmarking, tagging, and location-based networks such as Foursquare.

Steve Monfort, a writer for NASDAQ.com, recently reported on the growing trend of small businesses hiring more people to handle social media:

A recent American Express survey shows that 40 percent of small businesses are using social networking to promote their offerings, up from 10 percent a year ago.

While small businesses are just warming-up to social networking, nonprofit organizations were among the earliest to embrace the trend. By now, everyone has heard about “text-to-give,” which was used by the American Red Cross to collect $30 million from cellphone users for earthquake relief in Haiti last year. According to nonprofit tech guru Tonia Zampieri, sales and marketing manager for LoyaltyClicks, a division of Smart Online, text-to-give is so 2009.

Smart Online recently conducted a survey into technology trends for nonprofit organizations. The results were reported on NTEN, the Nonprofit Technology Network, just a few days ago. They indicate that over 90% of nonprofits actively use social networking (compared with only 40% of small businesses, according to American Express). The breakdown: 91% use Facebook, 63% use Twitter, 45% use YouTube, and 35% use LinkedIn.

You would think that level of penetration would be cheered by the nonprofit experts at LoyaltyClicks. But Zampieri has found a weakness in charity tech: mobile myopia. She writes:

[O]nly 16% of the surveyed nonprofits plan on having mobile websites in 2011, while 19% plan on having smartphone applications.

Zampieri cites a Nielson study that almost one-quarter of the time people are online is spent using social networks — and that half of that social networking is done with mobile devices. Then she provides “compelling reasons why a mobile website or a mobile application might work better for your organization” than, for example, old-fashioned text-to-give:

• donations aren’t limited to $5 or $10
• donations are received immediately
• you capture and control crucial data about your donors
• any size charity can use this technology, not just giants
• it’s a permanent tool, not just a one-shot appeal

For inspiring examples about the way nonprofit organizations are innovating with social networking, we recommend a recent Mashable story on “5 Must-Follow Non-Profits Making a Difference With Social Media.” The article is a run-up to the annual Mashable Awards which will be held January 6, 2011, at the Consumer Electronics Show (CES) in Las Vegas.

I was particularly impressed by the way the Brooklyn Museum has made use of a wide variety of social networking Minitrends to engage visitors and benefactors both online and in person. The museum has a dedicated mobile site (LoyaltyClicks would approve) that allows browsers to tag the museum’s 94,000 piece collection, making it easier for visitors to locate must-see art based on other patrons’ comments. They also use Foursquare to provide restaurant suggestions and other ideas to fill out a trip to the museum.

If you have any other examples of nonprofits who are making innovative uses of social networking applications, we’d like to hear about them. And so would Mashable! The Mashable Awards are open for nomination until November 29.

STEVE O’KEEFE
News Editor, Minitrends Blog

Source: “Job growth anticipated in cloud computing, apps, social media,” NASDAQ.com News, 10/15/10
Source: “Technology Trends for Nonprofits in 2011,” NTEN, the Nonprofit Technology Network, 11/08/10
Source: “5 Must-Follow Non-Profits Making a Difference With Social Media,” Mashable, 11/06/10
Image courtesy of Lisa Brewster, used under its Creative Commons license.

Employment Trends in the Midwest

November 10, 2010

Looking at the new map showing political party control of the state legislatures in the United States, one trend is obvious. In the November 2 election, Republicans took control of four Midwestern states — Wisconsin, Michigan, Indiana and Ohio — plus Pennsylvania.

These states are the heart of America’s manufacturing sector. While manufacturing has been badly hit in the Great Recession, employment in that sector has been on the decline for a long time. Since 1998, the manufacturing sector has lost over 4 million jobs, with employment declining almost 3% per year. Something needs to be done to regain the manufacturing jobs lost in this region. Exactly what is the subject of considerable debate.

The news portal, MichiganLive, or Mlive, presented one scenario last Sunday. In a commentary on the election, Rick Haglund contrasts the platform of defeated Democratic gubernatorial nominee, Virg Bernero, who advocated revitalizing the manufacturing sector, with the promises of incoming Republican governor, Rick Snyder, who seeks to shift Michigan’s economy toward the service sector. Haglund says,

Rick Snyder repeatedly said Michigan must reinvent its economy to become more innovative, entrepreneurial and globally competitive. Using computer industry jargon, the self-described nerd labeled his post-industrial plan ‘Michigan 3.0.’ (Agricultural was 1.0; the Industrial Revolution was 2.0.)

Haglund is himself a victim of the shifting winds of the economy. The veteran journalist used to work for Booth Newspapers. Today, he is a paid blogger and freelance writer. Haglund turned to Federal Reserve Bank senior economist, William Strauss, to provide a historical perspective on employment trends. Here are some of the findings:

• In 1950, manufacturing employed 31% of non-farm workers. In 2009, that was down to just 9.1%.
• In the same period, manufacturing output climbed 600%, reflecting enormous increases in productivity from a shrinking number of workers.
• Increased productivity has led to declining prices, with the result that manufacturing makes up only 12% of gross domestic product, down from 27% in 1950.

The question, then, is where to place all these workers who are no longer needed in manufacturing. In one of the most bizarre ideas yet, The Huffington Post writer Raymond J. Learsy, a legendary commodities trader and a member of the Woodrow Wilson International Center for Scholars, suggests the Midwest should grow more wheat!

Learsy sees a global food shortage in the works, with Russia suspending grain exports due to the fires that destroyed so much crop land last summer. In an extraordinary bit of hyperbole, Learsy says, “Now is the moment for a government with vision to lay the groundwork and prepare the breadbasket of America to renew itself and prepare for the destiny that will be thrust upon it.”

A reality check with the Bureau of Labor Statistics shows the agricultural sector shedding almost a million jobs in the last decade, with employment declining 17%. Employment in agriculture and manufacturing have both been declining at about the same pace, and are expected to continue declining in the coming decade.

So what sectors of the job market are expected to grow in the coming decade? Education, health care, and construction lead the list. Where do you think the Midwest should look for job growth in the coming decade? Farming? Manufacturing? Education? We’re anxious to hear your comments — they couldn’t be any more far-fetched than some of the suggestions we’ve encountered.

STEVE O’KEEFE
News Editor, Minitrends Blog

Source: “Rick Snyder has right vision for Michigan’s economy, but can he pull it off?,” MichiganLive, 11/07/10
Source: “Food — The American Midwest at the Cusp of an Economic Renaissance,” The Huffington Post, 11/07/10
Source: “Industry Output and Employment Projections to 2018,” U.S. Bureau of Labor Statistics, 11/09
Map of “2010 Post-Election Party Control of State Legislatures,” courtesy of the National Conference of State Legislatures.

Trends Favor Working from Home

November 8, 2010

A Santa Clara company is combining the hottest technology trends with shifting demographic trends to revolutionize the business of customer service representatives. The firm is called LiveOps, and it’s fair to say the owners have their heads in the clouds.

Cloud computing, that is. LiveOps offers several major technology solutions for businesses based on cloud computing. One is called “Workforce in the Cloud,” an on-demand workforce for outsourced call centers. If you operate a call center, you know there are slow times when most of the employees are idle, and peak times where you really could use more staff to handle the volume.

LiveOps solves that problem by allowing you to scale up or down the number of customer service reps available in half-hour increments! The company claims it operates the world’s largest virtual call center, with over 20,000 agents available to handle whatever their clients need.

But don’t think that LiveOps has those agents on a cloud somewhere waiting to be called. LiveOps hires independent contractors on the same basis as it sells its services: in half-hour increments. Work-from-home agents can choose the times they are willing to be available with 30-minute contracts. LiveOps is thus riding the trend of work-from-home contractors that John and Carrie Vanston explore in their new book, MINITRENDS.

“It is estimated that as much as twenty-five percent of all white collar work is now being done in private residences,” say the Vanstons, whose book points out several promising Minitrends in providing services for work-at-home contractors.

LiveOps was profiled in a USA Today article last month by Paul Davidson, who covers economic news for “the nation’s newspaper.” Davidson says that a stunning “68% of the 593,000 jobs added by private employers” since September are temp workers. The trend the Vanston’s explore in their book is accelerating.

Davidson looks at the ups and downs of the issue in a lengthy feature article in a newspaper not known for its depth. The upside is mostly for employers, who find that firing all their workers, losing the company headquarters, and avoiding all those benefits and taxes is liberating. Even if it translates into lower revenues, profits usually improve.

For the employees, the picture is not so rosy. They tend to lose benefits and stability, but enjoy an increase in flexibility and independence. Sometimes they earn more as contract workers than they made as employees.

“It appears likely that the fraction of people working at home will continue to grow,” say the Vanstons. “As a result, the need for support services and facilities — and the market for providing them — will also grow for the foreseeable future.”

STEVE O’KEEFE
News Editor, Minitrends Blog

Source: “Freelance workers reshape companies and jobs,” USA Today, 10/13/10.
Source: MINITRENDS: How Innovators & Entrepreneurs Discover & Profit From Business & Technology Trends, Technology Futures, Inc., pp. 78-81.
Image by Dave Dugdale of rentvine, used under its Creative Commons license.