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January 29, 2008

Zvents makes Local Search pop!

There is a class of web search engines that can prove even more useful than Google within a certain context. I'm talking, of course, about Vertical Search engines - the writer and tech strategist Sramana Mitra considers them Google's Achilles heel and Profy.com's Cyndy Aleo-Carreira seems to agree. This blog also has long held the position that vertical search represents a powerful mechanism to find information on the web, and is a key category to watch in the search wars of the future. [see: The rise of Vertical Search Engines from Aug 2006].

Another way of achieving a similar focus, in order to improve the relevance of search results, is by segmenting by location rather than by industry vertical - i.e. create a hyperlocal search engine that limits its search results to a given geographical area.

One such alternate search engine is Zvents, which is relentlessly focused on local information, of any sort. This company, which has been around since early 2005, has just introduced an advanced feature called Federated Local search - basically, its own version of Universal Search (recall that Google introduced its Universal Search feature with much fanfare last May).

Federated Local Search: Multi-Dimensional Results for Local Information

What does Universal Search mean, for a local search engine? Initially this was not very clear to me; an email discussion with Paul O'Brien, Director of Marketing at Zvents, inspired me to draw the following diagram:



The basic idea is to enable the user to implement a general-purpose search within a local context. This allows the user to find local information about a given topic, across many different dimensions. For example, a sports fan living in San Jose, CA who tries a local search for the term "hockey", would get the following different types of results:

  • Upcoming games for the San Jose Sharks, the local hockey team
  • The location of Roosevelt Park Roller Hockey Rink
  • The description and link for a local "Hockey Night" event
  • Results about relevant personalities (what Zvents calls "performers")
  • And other related links ...

Zvents has already partially implemented this vision, although some of the lower-ranked results could provide a better match. Hopefully these will improve in the future as the search index grows and the algorithm improves. A screen shot of this local Hockey search in Zvents is given below.



Similarly, here's a search for the term "Web 2.0" for Cupertino, CA:



Outcome: Relevance

The big advantage of this type of search, over a general-purpose Google or Yahoo! search, is that the user can obtain the benefits of a broad cross-section of results, while still constraining the search to a limited geographical area.

This is not a significant issue in highly developed, urban, technologically advanced areas like Silicon Valley, Boston or New York; but it could one day make a big difference for someone living in David Letterman's "home office" of Wahoo, NE , or even more important, someone trying to find the Boston Public School located in Boston, Ontario - as we've seen before, highly popular keywords tend to swamp nearby long-tail keywords in the search results for major search engines.

From a business model perspective, hyperlocal searches tend to provide highly qualified prospects for local merchants, so I would guess that this type of search is very easily monetizable in the long run.

From a user interface point-of-view, the NLP-like implementation of time period for the search engine ("when: tonight, this weekend, ...") is a nice touch; I tried different possibilities ("next month"), and it seemed to work just fine.

On a more technical note, Zvents has been making waves with the release of its open-source Bigtable clone called Hypertable, which adds a C++ option for this project.

Going forward, it will be interesting to see how Zvents scales to additional locations, and to additional dimensions within each locality. Will it make inroads into the market share for any of the major search engines, or into that of other locally-focused web sites like topix.com and craigslist?



January 27, 2008

Quintura Launches Site Search Widget

Alternative search engine Quintura, which I've mentioned before on this blog, has launched its site search widget. This widget allows site publishers to provide users with a specialized search limited to that specific site; it joins earlier offerings from Google, Yahoo!, Rollyo and Eurekster swiki in this space.

This blog was an early user of this widget. You can see a customized, Quintura-generated mini-tag cloud in the earlier post; a full-size tag cloud is also available. The widget is hosted by Quintura, so installation was a snap: once the site was indexed, all I had to do was to embed the widget code into my blog pages and provide some styling control.

The biggest benefit of using the Quintura solution, as I've said before, is the dynamic tag cloud that allows the user to navigate the search space; initial feedback from our readers here has been positive, but not enthusiastic.

The real benefits to both users and publishers will come when Quintura search results prove to be better than equivalent results from a mainstream search engine solution, such as Google; as long as the Google site search results are good enough, it will be hard for the Quintura widget to make significant inroads into the market share of the big-G juggernaut.

This widget release is currently in private beta; an invite for this beta is available over on ReadWriteWeb.



January 22, 2008

Disambiguation of Search Results? Yup, Google's got that

Just last week, in an email exchange with another search blogger, I wondered when Google would provide options for disambiguation of search results.

When you think about it, that's an obvious requirement for the Results page of any serious search engine. If I query for the search term "Java" - does it mean that I'm looking for results about the programming language, the coffee, or the island in Indonesia?

There's no way for the search engine to be able to tell, although personalization could provide clues. The easiest solution, as I wrote back in 2006, is for the search engine to just ask - which is why Wikipedia offers this page: Java (disambiguation) . Alternatively, the results can be grouped into various categories for the user to choose from, which is another way of doing the same thing.

Until now, Google has been mostly following a third option, which is to simply pick the most popular category regardless of the user's real preference; this can lead to some strange results, as highlighted in my earlier post on deconstructing real Google searches. But this approach doesn't really cut it, since it ignores all the unpopular search results - it's very possible that the long-tail searches can collectively make up a market share that rivals or exceeds the relatively few "popular" searches.

There has also been a limited amount of disambiguation offered by Google's "related searches" feature.

Well, no more. Google appears to be experimenting with offering disambiguation directly by grouping search results into categories. See the screen shot below, that shows Google search results for the query: "freebase" . Effectively, the results page seems to be asking: do you mean, the free semantic web database, or the other kind, associated with drugs? Or a third alternative: FreeBase - a free Windows software program to configure the Apple AirPort Base Station.

The use of horizontal ruled lines to separate the sections, is a nice touch!



Obviously this is some type of test; I certainly hope it's successful. I can't wait to see this feature become mainstream among the major search engines. It will be a big step forward in Search!



January 21, 2008

SPARQL: Query Language for the Semantic Web

The W3C has announced the publication of SPARQL , a language for querying distributed data on the web. Similar to the way SQL is a generic language used to query relational databases regardless of vendor, SPARQL will allow users and applications to create queries that express high-level goals across many different data sources, regardless of the database technology or data format involved.

From the W3C press release:

"Trying to use the Semantic Web without SPARQL is like trying to use a relational database without SQL," explained Tim Berners-Lee, W3C Director. "SPARQL makes it possible to query information from databases and other diverse sources in the wild, across the Web."

The combination of the SPARQL query language and protocol creates a Web service in its purest sense; running on top of HTTP or SOAP, it provides a standard Web service for anything which asks a question.

"SPARQL's focus on querying the data models saves time for developers; there's no need for a host of little Web services to retrieve different aspects of the state of a system," explained Lee Feigenbaum, Chair of the RDF Data Access Working Group. "This allows the user of the SPARQL endpoint to ask any question -- it is as though they could design their own interface instead of having to work with a limited set of fixed services."

The press release goes on to say that the SPARQL specification defines both a query language and a protocol, and works well with other Semantic Web technologies from the W3C: RDF, RDF Schema, OWL and GRDDL.

InfoWorld has a great article explaining this development in more detail [via Dave Cobley at Altiss ]:

Already available in 14 known implementations, SPARQL is designed to be used at the scale of the Web to allow queries over distributed data sources independent of format. It also can be used for mashing up Web 2.0 data.


I see this as a very positive development for the Semantic Web field in general. At its core, the operation of the Semantic Web is composed of the following basic functions:

  • Creating content with meaning (either implicit, like XML, or explicit, like Tags)
  • Understanding or extracting the information from a block of content
  • Classifying the blocks of content (into a hierarchy, taxonomy or folksonomy)
  • Presenting the information in a variety of forms (web, mobile, web services API, mashups, embedded devices and so on)
  • Finding the information of interest; this information may have to be derived from the content provided

The rise of easy-to-use self-publishing tools has led to an explosion in the amount of content available on the Web, and being able to find the answer to a question from this mountain of information is vital.

But first users have to be able to express what they are looking for, in a meaningful way. It is this need that is being addressed by SPARQL, which allows users to formulate intelligent queries. These queries can then be used by agents and applications on our behalf to find us the information we need.



January 15, 2008

Indirect Business Models for Blogs

Fred Wilson wrote an interesting post yesterday on the A VC blog: The Long Tail Of Business Models , in response to an earlier article about Media Business Models by Chris Anderson, who first popularized the Long Tail concept.

In his post, Wilson gives us a long list of monetization strategies for FREE content, such as blogs; some of which are very popular strategies and others not so much. A few of the less common ones are reproduced below:


  • Lead generation (you pay for qualified names of potential customers)
  • Subscription revenues
  • Rental of subscriber lists
  • Licensing of brand (people pay to use a media brand as implied endorsement)
  • Alternate output (pdf; print/print-on-demand; customized Shared Book style; etc.)
  • Live events
  • Cost Per Install (popular with top Facebook apps who can help others get installs)
  • Sponsorships (ads of some sort that are sold based on time, not on the number of impressions)
  • Listings (paying a time based amount to list something like a job or real estate on your website)
  • Streaming Audio Advertising (like radio advertising delivered in the audio stream after a certain amount of audio content has been delivered)
  • Streaming Video Advertising (like streaming audio but in video)
  • API Fees (charging third parties to access your API)

The full list is available in his post. Overall, this is extremely valuable for any publisher of free content.

To Wilson's list, I would add the following strategies for generating indirect revenue - i.e. more in line with Business Development. These strategies are not directly monetizable, but equally real all the same, and can be converted into actual income with a bit of effort.

Indirect Revenue Strategies for Blogs

  • Lead-In to Consulting Business; this is more specific than, but a subset of, generic referrals and lead generation
  • Book Writing Opportunities; your blog allows you to gain credibility, build an audience and interact directly with your readers
  • Lead-In to Education Business, such as Classes and Webinars
  • Gather Market Intelligence, using Polls, Surveys, Feedback et al
  • Networking (in the good sense of the word) - you can find others with similar thoughts and interests
  • Define your own Viral Meme; for example, here's one viral term: "Web 2.0"

In addition, of course, there are the intangibles, such as name recognition for authors, increased visibility for brands and fresh content - which equates to increased traffic and SEO benefits - for publishers.

If you know of any additional ideas for indirect monetization, please leave a comment below (or comment on either of the main articles referred to).



January 09, 2008

Deconstructing real Google searches - why Powerset matters

I was looking at the log files for my blog today, as I regularly do, and I was suddenly struck by the variety of search queries in Google for which users were getting referred to my posts. I write often about the different flavors of search - including vertical search, parametric search, semantic search, and so on - so users with queries about Search often land here. But do they always find what they're looking for?

Some Real-life Search Results

Let us examine some of the actual Google queries - in the form of referring URLs - that led users to my blog. In most cases, Google did a fine job of matching the content to the query; in some cases, it was a somewhat random match at best; finally, in a few cases, the Google search algorithms are clearly getting confused. It is this third case that is the most interesting.

The Good

In many cases, the match was quite straightforward and very relevant. Some examples are given below.
1.

Query: http://www.google.fr/search?q=Guru+Avinash+Kaushik& ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:fr:official& client=firefox-a
ResultA conversation with Avinash Kaushik, Web Analytics Guru

Well, can't argue with that!

2.

Query: http://www.google.cn/search?sourceid=navclient&aq=t& hl=zh-CN&ie=UTF-8&rlz=1T4XNLA_zh-CNCN246CN247& q=vertical+search
ResultThe rise of Vertical Search Engines (VSEs)

Query:    http://www.google.com/search?
q=wikipedia+to+try+and+compete+with+google& ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official& client=firefox-a
ResultWikipedia Search to compete with Google

Again, can't argue with those.

3.

Query:  http://www.google.com/search?hl=en& q=search+technology+exits
ResultSo You've Built an Alternative Search Engine - Now What?

This is actually pretty awesome, the algorithm has figured out "search technology" and "exits"; in fact, this post does talk about exit strategies for search engines, so it's a great match.

The Bad

Some search queries are so vague that the matches you get are bound to be somewhat random. I don't blame Google for the following matches:

4.

Query:  http://www.google.com/search?hl=en& q=conceptual+architecture
ResultA Conceptual Architecture for Search

Is the search string too vague? Although technically this post matches the search query, I'm guessing that this is not what the user intended to look for.

5.

Query: http://www.google.com/search?hl=en&safe=off& client=firefox-a&rls=org.mozilla%3Aen-US%3Aofficial& hs=pGP&q=disruptive+technologies+blog& btnG=Search
ResultDisruptive technologies for 2007

While the words match, and possibly this may satisfy the user, I get the sense that the user was looking for a blog dedicated to discussing disruptive technologies, not a single post. But who knows? Again, too vague!

In the future, I wonder how soon Search technology will progress to the point where the UI will automatically ask the user for more information to qualify search terms that are too general or vague. A little while ago, I envisioned a similar scenario ( Vertical Search, with authority ) when taking a look at the search engine MetaMojo, which has taken some steps in this direction.

The Ugly

In a few cases, though, the proximity of certain keywords fools the search algorithms. Consider the following matches:

6.

Query: http://www.google.com/search? q=best+search+engine+for+directions&ie=utf-8& oe=utf-8&aq=t&rls=org.mozilla:en-US:official& client=firefox-a
ResultFuture Directions in Search

A post about "future directions in Search" is not a post about "search engines for directions", although the text itself is undoubtedly a close match.

7.

Query:  http://www.google.com/search?hl=en& q=people+search+software+compared&btnG=Search
ResultSearch and the Dumbness of Crowds

Hmm? This is a popular post, but I'm not sure if it helps the user, who is not trying to compare search strategies (as this post does); instead, the user appears to be trying to compare people search engines.

Are these good matches? While the content of the posts bears a superficial resemblance to the text in the respective queries, the results are not relevant to the requested user searches.

The Larger Problem

The samples given above are not that important; the matches from my blog do not always show up at the top of the search results and although these are real referrals, not many users will actually click on these links in the Results page. But these examples point to a deeper underlying issue, one that will be far from easy to fix in the general sense.

All the major search engines currently rely on the proximity of keywords and search terms to match results. But that approach can be misleading, causing the search engine to systematically produce incorrect results under certain conditions.

To demonstrate, let us take a look at three general use cases.

[Note: The examples given below are all drawn from Google. To be fair, all the major search engines use similar algorithms, and all suffer from similar problems. For its part, Google handles billions of queries every day, usually very competently. As the reigning market leader, though, Google is the obvious target - it goes with the territory!]

1. Difficulty of Finding Long Tail Results

Take Britney Spears. Given the current popularity of articles, pictures and videos of the superstar singer, the results for practically any query with the word "spears" in it will be loaded with matches about her - especially if the search involves television or entertainment in any way.

Let's say you're watching the movie Zulu and you start wondering what those large spears that all the extras are waving about, are made of. So, you go to Google and type in "movie spears material" - this is an obviously insufficient description, as the screen shot below shows.




What happens if you expand on the query further - say: "what are movie spears made out of?" - does it help? Here's a screen shot.




The general issue here is that articles about very popular subjects accumulate high levels of PageRank and then totally overwhelm long tail results. This makes it very difficult for a user to find information about unusual topics that happen to lie near these subjects.

2. Keyword Ordering

Since the major search engines focus only on the proximity of keywords without context, a user search that's similar to a popular concept gets swamped with those results, even if the order of keywords in the query has been reversed. For example, a tragic occurrence that's common in modern life is that of a bicycle getting hit by a car. Much less common is the possibility of a car getting hit by a bicycle, although it does happen. How would you search for the latter? Try typing "car hit by bicycle" into Google; here's a screen shot of what you get.  [Note the third result, which is actually relevant to this search!]



3. Keyword Relationships

Since the major search engines focus only on the keywords in the search phrase, all sense of the relationship between the search terms is lost. For example, users commonly change the meaning of search terms by using negations and prepositions; it is also fairly common to look for the less common members of a set.

This takes us into the realm of natural language processing (NLP). Without NLP, the nuances of these query modifications are totally invisible to the search algorithms.

For example, a query such as "Famous Science fiction writers other than Isaac Asimov" is doomed to failure. A screen shot of this search in Google is given below. Most of the returned results are about Isaac Asimov, even when the user is explicitly trying to exclude him from the list of authors found.



All of the searches shown above look like gimmicks - queries designed intentionally to mislead Google's search algorithms. And in a sense, they are; these specific queries can be easily fixed by tweaking the search engine. Nevertheless, these queries do point to a real need: the value of understanding the meaning behind both the query and the content indexed.

Semantic Search

That's where the concept of semantic search comes in. I attended a media event earlier this year at stealth search startup Powerset (see: Powerset is Not a Google-killer! ) which showcased a live demo of their search engine, currently in closed alpha, that highlighted solutions to exactly this type of issue.

For example, type "What was said about Jesus" into a major search engine, and you usually get a whole list of results that consist of the teachings of Jesus; this means that the search engine entirely missed the concepts of passive voice and "about". The Powerset results, on the other hand, were consistently on target (for the demo, anyway!).

In other words, when you look at just the keywords in the query, you don't really understand what the user is looking for; by looking at them within context, by taking into account the qualifiers, the prepositions, the negatives, and other such nuances, you can create a semantic graph of the query. The same case can be made for semantic parsing of the content indexed. Put the two together, as Powerset does, and you can get a much better feel for relevance of results.

What about Google? I'm sure the smart folks in Google's search-quality team are busily working on this problem as well. I look forward to the time when the major search engines handle long tail queries more accurately and make Search a better experience for all of us.



January 07, 2008

Techmeme: Web 2.0 Discovery, with a Web 1.0 twist!

Jeremiah Owyang wrote an interesting post yesterday: The Five Members of the Techmeme Family - in which he lists the different types of bloggers that end up on Techmeme. I think he's right on the money; as an avid follower of the site, I've seen the same dynamics at play.

For technology watchers and bloggers, Techmeme is a gold mine, an invaluable resource that constantly highlights breaking news, unique perspectives and interesting blog posts. Through the site, I've discovered some amazing writers and their high-quality work: Scott Karp on Can Blogs Do Journalism? , Fred Wilson's incisive post - What My Kids Tell Me About The Future of Media , Jeremy Liew's ongoing series about the Semantic Web - Meaning = Data + Structure , Dale Dougherty's wonderful post on Journalism is Burning Or How Breaking News is Broken and so many others.

In his post, Owyang also looks at how posts are rated on Techmeme. What's interesting about it is that the person who breaks the story does not necessarily get the lead; a more mainstream news source or blogger often becomes the "top node", even if all he or she is doing is to repeat the story without any additional content or unique insight. This is a reasonable approach from an automated content discovery perspective, but it sometimes gives funny results.

As Owyang says:

...

The Breaker: This can be mainstream news source or a mainstream blogger that discovers the story from the Original News Source and blogs it, as a result, they often become the top node, even if they aren’t the original source. It seems as if some websites are naturally geared to be an “H1″ even if they are resonators.

The Resonator: Also referred to as those who echo or copy, they repeat what was already said, adding little or no additional content, news or opinion.

...



As an example, consider this Techmeme snapshot from 5:55 PM ET, December 31, 2007 - the image below shows a fragment of that page.



At that time, the big news of the moment was about an executive defection, er, employment change - Steve Souders, Chief Performance Yahoo, left his post at Yahoo! to join Google.

What is interesting to note is the ordering of the various stories on the Techmeme web site.

The lead story on this topic is the Silicon Alley Insider post by Henry Blodget - an A-list blogger. Now, Mr. Blodget is a fine writer and SAI is a great blog, but this particular story that leads is written mostly as a breaking-news flash, with minimal opinion and no particular startling insights. (Where is the story behind the story ?)

However, the story had already been broken by techno.blog on the previous day (according to the respective blog post time stamps), so it wasn't really breaking news by the time it appeared on Silicon Alley Insider. And others - for example, Donna Bogatin and Ashkan Karbasfrooshan - provide a lot more additional content and, arguably, much more insight. So how did the big-T pick Blodget's post as the lead?

My belief is that the Techmeme algorithms choose their lead based on the prominence of the source and on the links to a given post (which two factors are generally highly correlated, in any case).

This is fine and generally works well. Are there other options, other algorithms that can be used to choose the lead for a developing story, that could highlight the more meaty posts? A few possibilities come to mind:

  • Reader Votes: Within the set of posts for a developing story, allow readers to vote for the ones they like best, so that the most popular ones rise to the top.
  • Link Count: Examine the cross-linking between posts to leverage the implicit knowledge therein, similar to Google's PageRank algorithm. I believe Techmeme already incorporates this to some extent.
  • Bookmark Count: Examine the incidence of social bookmarks for different posts, for popular bookmarking services like del.icio.us .
  • Human Editors: Use human editors to select the top leads. Of course, this may prove too expensive and/or cumbersome.
  • Author Markup: Enable authors to include metadata in some standard format for their posts. By using markup or tags such as "news", "opinion", "analysis", "multi-idea" and so on, authors could indicate the type of their post to the selection engine. Admittedly, this approach is susceptible to gaming, although it could be combined with voting to improve quality.

Over time, the significance of "prominence" as a measure of content quality is eroding - especially for blog posts in particular. As the web evolves, Techmeme and other sites are sure to experiment with these and other alternative approaches; it will be interesting to see which ones emerge as the winners.



January 06, 2008

Conference Discount: Web 2.0 Conference & Expo from WebGuild

The WebGuild Web 2.0 Conference and Expo is being held on January 29, 2008 at the Marriott Santa Clara in California. It covers popular Web 2.0 topics and technologies, including: Community, Widgets, OpenID, Metrics, Mobile, development for Facebook, Offline apps, Social Advertising, and many others.

The list of speakers is also impressive, representing a variety of companies - Yahoo!, Google, Oracle, AOL, Zoho, Salesforce.com, TIBCO, Omniture and others.



WebGuild's Web 2.0 Website Awards will also be presented at the conference; categories include "Coolest Widget Ever", "Best Web 2.0 Design and User Experience" and my favorite, "Most Promising Web 2.0 Startup".

We have a special discount for readers of this blog: a 25% discount or $100 off the list price of $399. Use the discount code "web20" when registering; this code must be entered into the coupon box in Google Checkout.

[Note: This is the Web 2.0 Conference from WebGuild, not to be confused with the other Web 2.0 Expo from O'Reilly.]



January 01, 2008

Enterprise 2.0: Battle of the IT Supply Chains

My dad pointed me to this fascinating article on IT Outsourcing from Information Week: The Second Decade Of Offshore Outsourcing: Where We're Headed by Mary Hayes Weier. It's a long article but well worth reading. The author captures a growing trend in the outsourcing of IT software: as offshore service providers move up the value chain, from tech support and quality assurance, to software design and development, business process re-engineering and eventually to providing direct business value, the relationship between these vendors and their Enterprise clients is changing. Instead of outsourcing specific, contained projects, companies are looking at IT development vendors as strategic partners - essentially, suppliers of IT business value. An example interaction, from the article:

A BT Wholesale executive team recently gave a presentation in Bangalore called "Joining The Dots," intended to help contract workers from Infosys, TCS, and Tech Mahindra understand BT's strategy and the role IT and process engineers play in it. The team explained BT Wholesale's market segments, key competitors, new products, and what it plans to launch over the next few years. "It's about spending time with people and explaining our objectives rather than just describing a piece of software they need to deliver by Friday," Selley says. "We want those employees to bring ideas back to us, too. It's been far too unidirectional between the U.S. and U.K. and suppliers in India."

The focus is no longer primarily on the cost savings obtained through offshoring, but rather on acquiring talent quickly, getting closer to customers - who are increasingly overseas as well - and creating global IT value chains that span people, processes & technology. Outsourcing companies (and in turn, their outsourcing vendors) are now valued partners in the software supply chain, and have a direct impact on the competitiveness of the enterprise.

This reminds me of the changes the automotive industry went through years ago.

Automotive Supply Chains

For example, authors Bill Jackson and Michael Pfitzmann compared different approaches to automotive supplier partnerships in their article Win-Win Sourcing in Strategy+Business magazine (via Evolving Excellence ):

This is one of many ways in which far-reaching manufacturers like Honda and Toyota rewrite the conventional rules of procurement.
...
With this approach, manufacturers and suppliers share a long-term commitment to improving each other’s capabilities, starting by working together to eliminate wasted effort and inefficiencies. The two sides, instead of being at odds, collaborate openly on lowering costs and raising overall performance, with the expectation that this mutuality will continue over many years, benefiting both companies.
...
Contrast this with the alternative ingrained in many companies’ purchasing departments: price-based sourcing. Essentially, this approach pits the interests of the supplier against those of the manufacturer. Each side reveals as little information as possible, for fear of giving the opposing side an edge.

Many others have made this point as well, such as the Economist's View blog: Why Toyota is Better than GM and Ford ; and MRO today: The supply chain is the difference maker .

This enlightened approach is already becoming an accepted view. Toyota sees its suppliers as partners; they, in turn, see their suppliers as partners; and so on. So the competition is not between the Toyota and General Motors; it is really a competition between Toyota's entire supply chain (Toyota, Tier 1 suppliers, Tier 2 suppliers, Tier 3 suppliers ...) and GM's supply chain (GM, GM Tier 1 suppliers, Tier 2 suppliers, Tier 3 suppliers, ...).

IT Supply Chains

Are there close parallels between these two approaches: BT Wholesale's interaction and shared strategy with its IT offshoring vendors - Infosys, TCS, and Tech Mahindra; and Honda and Toyota's closely cooperative relationship with their own vendors?



What are the implications of these changes for the IT outsourcing vendors, and for their Enterprises customers? If the parallel with the automotive industry holds, will we soon see the 1st tier IT software suppliers start to increasingly outsource pieces of their own projects, and so on, until there is a multi-tier supply chain in IT for software projects, business process optimization and quality enhancement? Projecting forward, how much further will offshore IT vendors go in providing value as a part of the business network of the larger enterprise?



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