FutureCreators

Capital Efficiency - one of the most unthought about elements that sits at the core of every business. www.future-creators.com  

Listen to Francis McInerney Discuss The Hubble Effect as It Applies to Business.

Francis McInerney discusses how China uses systems to manage business information and policies, and how this has effected businesses inside and outside of China. Francis discusses the impact on Western companies operating within China, and companies within China that wish to business with other countires.

Nikkei trades at only a few percent of where it would be if it had tracked the Dow since the Nikkei collapsed in December 1989.  It is only 50% of where it was then.  Greatest and longest equity wipe out in history. All those great Japanese brands of decades ago age gone, gone, gone. There are no Apples and Googles to replace them. What was once the second largest economy in the world will soon be a backwater off the coast of Asian, a weak Chinese feudatory. Why? FC metrics tell the story.  Information Velocities of Japanese companies aides are terminally slow ERP is patchy and often not used at all.  Rarely use the same instance for the same applications in different countries.  So customer information goes nowhere.  Cannot be translated into cash quickly or easily.  The unApple. No women anywhere.  In 30 years of advising Japanese CEOs -- I am the only foreigner ever to have done so, let alone for so long, I have only met one woman with direct reports and that was a few months ago. Business processes unchanged for 60+ years!! Francis McInerney [email protected]  

Japanese companies have no words to express the money being made from services — Apple’s growth area today — so they have no IT systems in place to harvest these revenues. They have one word — monozukuri (thing + make) — and don’t believe in anything that they cannot manufacture. So, nothing like a cloud-driven app enablement device is thinkable.  So, no Apples, Googles etc. Case of Panasonic.  Make solar panels and lithium batteries.  But doesn’t have the IT to connect these to a cloud server  for time of day energy arbitrage.  Why?  Its ERP allows for unit sales only.  Management would not allow any change in ERP, no matter how profitable the product/service. So the real money product — energy arbitrage — could not be offered.  They could only compete on price with China for hardware.  Lose! Francis McInerney Managing Director, North River Ventures LLC [email protected] Creating Scalable Profitability For the Zettabyte Era

The old phone companies have entered a period of sales decline, the first during an economic boom since 1870. The last time this happened was 1933 and it took 3 years of the Great Depression to do it.  This is one of the great inflection points of industrial history. The App Delivery Membrane that the telcos control so much of (wireline, wireless) is under enormous pressure.  It costs a fortune, it is old, it takes decades to replace/upgrade.  The damage from Sandy — 2012 — has still not been repaired in our neighborhood. I predicted in 2002 (“Management Failure”) analysis of the telcos that their capital inefficiency would tear them apart the instant revenues started to fall.  We are there now.  “Capital efficiency is the problem and capital efficiency will be the solution.” The capital-efficient solution will be to turn these legacy nets into shared assets like cell towers and data centers today (all the new parts of the net associated with the rapid growth of the App and App Enablement Membranes of the Cloud).  These shared assets are configured as Real Estate Investment Trusts for tax efficiency. There is no way VZ and AT&T can beat the clock to turn themselves into media empires fast enough.  They must deleverage first, as I said in 2002.  Only cellular growth has put off the evil day and now that is over. Steve Jobs understood this and, in effect, subcontracted the capital inefficient App Delivery Membrane of the Cloud to the telcos.    

Francis McInerney (interviewed by Robert Braathe) of North River Ventures discusses how Future Creators can assist IBM with their business development, growth and opportunities.

Francis McInerney discusses Verizon / Disney and his perspective on the possible acquisition.

Hear Francis McInerney speak with Robert Braathe about the Amazon Acquisition of Whole Foods.

Francis McInerney discusses Ericsson and their rating on the Management Grading System scale, comparing them to companies like Cisco and what it would take for Ericsson to improve.