Contributed Column

The Digital Domain Part I

September 1998
by David A. Wolfe, technical instructor/Internet specialist, The SymQuest Group

TECHNOLOGY AND BUSINESS
There is no better example of the profound effect of technology on business than the evolution of the business document. The first writings were records of agricultural commerce. Today, much of our information technology serves to bring us large amounts of information and much of it ends up in printed form.

It's true that the percentage of the documents that are printed is declining. At the same time, the number of documents that are being created is skyrocketing. The net result is that the number of pages printed between now and the year 2000 will exceed the number of pages printed from 1450, when Gutenberg invented the printing press, until now.

Software "Office Suites"
The most visible change in the business document is the evolution of the compound document containing charts and graphics. Previously, a specialist drew a graph, chart or graphic by hand. The Macintosh and Windows operating systems run applications that produce these graphics on a PC.

It wasn't until the advent of the office suite that the author and the editor had access to the same set of tools as the user who created the graphic. Previously, if you were writing a report that included a graph and you wanted to make a change in that graph, you would contact the person who created it for you. Now, if you are using an office suite and you double-click on a graphic in the middle of the page, a menu of editing tools appears. Office suites provide all the tools that are needed to create compelling business communications.

The Internet as a Wide Area Network
The evolution of networking technologies provides the foundation for our new age of information sharing and collaboration. Until recently, the TCP/IP protocol was reserved for use by UNIX systems, scientific, educational and military computing. The basis of the Internet is an agreement to use the TCP/IP protocol for communication between computers. It is because of this agreement that the Internet is a worldwide network that is accessible to all.

Networked Output Devices
Finally, a new generation of output devices has brought the high-end capabilities that once were reserved for the print shop to small business. It is ironic that one of the reasons networking experienced the growth it did during the early '80s was that networks provided a way to share expensive peripherals such as laser printers. The widespread use of networks has given rise to the common practice of connecting even the most sophisticated output devices, such as high-end color copiers, high-end digital black and white copiers and high speed digital duplicators to the network, a practice that makes them available to all network users.

I recently taught a Web page design class to students who were not Web page designers. They were individuals with a diverse range of jobs. This company has implemented an intranet, a Web server that stores Web pages for internal use. My students are required to post any documents they generate on the Web server. Once this would have been a specialized form of communication created in the glass-enclosed computer room. The students use Web design tools to publish to the company intranet. The trend is to push the creation of these "documents" down to the front lines.

The bottom line in all this is that an individual, armed with an office suite and a connected output device can generate documents that appear to be created by a team and sent out for production. At the same time, the digital version of this document can be posted on a Web site, a bulletin board or emailed anywhere in the world.

The technologically empowered individual has both the freedom and the responsibility associated with these new capabilities. We have the freedom to create business communications that are compelling and will achieve our business goals. We have the responsibility to know our audiences and speak their languages. The creator-centric view of the world is no longer enough and can create confusion. A well-known online florist could not figure out why its Pacific Rim customers were ordering funeral arrangements during the month of February. In that culture, the colors of romance are purple and black. Assimilating the Valentine's Day holiday into their culture, they were ordering the flower arrangements that, to them, said, "I love you."

We have been given a rich set of tools, an expanded audience and transparent communication. It's up to us to create business communications that meet our objectives and create brand loyalty and the sense of customer intimacy that is the cornerstone of the new economy.

Next month, I'll have some specific recommendations and actions that will allow you to tap into technology-based solutions that build on this foundation, and will guide your business into the next century.

David A. Wolfe (david.wolfe@woofnet.com) is a technical instructor and Internet specialist with The SymQuest Group in South Burlington. He has been involved with information technology for more than 10 years. Wolfe is the editor of a number of Web sites and his personal site can be found at www.woofnet.com/~woof. He's working with companies and state agencies with Web technologies and is the program manager for Connectivity 2000 for Sales Professionals, a national sales training program for copier account managers.

The Digital Domain part II

October 1998
by David A. Wolfe, technical instructor/Internet specialist, The SymQuest Group

Last month I wrote about three elements of technology: office suites, the Internet as a public wide area network, and connected output devices. My premise is that installing an office suite gives you all the tools you need to create compelling business communications; that the Internet provides a way to collaborate and to publish compelling Web pages; and that connected output devices such as color imaging systems and digital copiers allow you to print jobs in-house. I also promised actions that you can take to capitalize on this convergence of technologies:

Upgrade
Im going to tell it straight. There are free operating systems that work fine on a 486 PC. The MacLC is incredibly simple to use. Neither will get you a seat at this table. Unfortunately, both the Windows operating environment and the three major office suite players -- Microsoft (Office97), Corel (WordPefect8), and Lotus (SmartSuite Millennium Edition) -- have added functionality and are much easier to use than their previous versions. Im recommending that you upgrade to Windows95 on a PC less than one year old and the latest office suite version, whoever the publisher.

Be realistic
You wont be comfortable with your new hardware/software for a while. One day of classroom training, no matter how expert, will ever completely replace practice. At the end of every class that I teach, I recommend that my students take 15 minutes a day to explore the software. One of the most valuable things about sending people (or yourself) to one of the computer training centers is that its a safe environment. You are not working on documents that are essential to your business. The classroom is set up to make you feel that its a good place to try out new things.

Get a direct connection to the Internet
If you are using a modem to get to the Internet at work, its time to look into a full-time connection. The prices of these sorts of accounts have dropped dramatically. When you are always connected the way you use information changes. Its just as easy to learn something about your sales prospect or competitor as not. Its like having a reference library, always current, for the price of the call.

Take a good look at whats so in your business
First, walk around and ask people to show you the three documents that most exemplify what they do. Ask them to describe how those three typical documents are put on paper. Next, ask them what they do for research. Where do they get their information? Finally, ask what keeps them from being able to leave the office at five.

Asking these kinds of questions can be difficult and getting honest answers is essential. Thats why consulting companies are often used for this kind of site survey. Your technology provider, whether it provides computers, copiers or applications, should be able to assist you in conducting this site survey.

There is only one thing of lasting value in business: innovation. Everything else eventually loses its impact. When you are upgrading or investing in new technology, dont settle for fixing the problem. Make your providers look at whats so, find out what your business goals are and suggest ways that their technology solution will meet those goals.

Steven Power, a sales management consultant with whom I teach, talks about the real result of successful sales training. Its not the deal, not the numbers, and not beating the competition (although thats nice). The real result is the benefits to your family and your lifestyle that success brings. If technology and technologists have their blind spots, its that we lose sight of the people and businesses we serve. Ask your vendor, how will this make me work faster, smarter and more cost effectively? And, by the way, any chance I can get out of the office by 5?

David A. Wolfe (david.wolfe@woofnet.com) is a technical instructor and Internet specialist with The SymQuest Group in South Burlington.

Vermont Needs Bankruptcy Reform

September 1998 Web site exclusive!
by Ann Lindberg, executive director, Vermont Retail Association

The economy is healthy, interest rates are low and employment is up. Entrepreneurs are opening new businesses in record numbers. But despite the fact that so many American families are enjoying unprecedented prosperity, an all-time record of 1.35 million personal bankruptcy petitions were filed last year in the United States. Why are so many Americans choosing to escape their debts at a time when the nation's economy is strong?

A critical factor is our fundamentally flawed bankruptcy laws. The current system allows people who have the ability to repay at least some of what they owe to walk away from their debts. More than 7 percent of all 1997 bankruptcy filers chose to file under Chapter 7, in which all debts are erased, regardless of their ability to repay those debts. Fewer than 30 percent choose Chapter 13, which requires the establishment of a repayment plan over time. And in Vermont, the split is even more dramatic more than 90 percent of Vermont filers chose to erase their debts through Chapter 7.

As a result of personal bankruptcies, more than $44 billion in consumer debt was erased last year. Those losses affect businesses of all types, but small businesses that extend credit are particularly harmed. Some of those losses, however, could have been repaid by wealthier Americans who used the loophole in the bankruptcy code to wipe away their debts. Studies show that as much as $4 billion could have been recovered if higher-income filers had repaid what they could afford last year. Instead, those losses were passed on to bill-paying customers of those small businesses in the form of higher interest rates and increased prices. In other words, customers who pay their bills on time end up footing the bill for those who could pay, but choose not to.

A solution is on the way. Earlier this summer, the U.S. House of Representatives passed The Bankruptcy Reform Act of 1998 (H.R. 3150). An overwhelming bipartisan majority voted for reform that will require higher-income filers to pay back what they can afford, while protecting the rights of Americans in desperate financial circumstances to obtain the complete debt relief and fresh start they deserve.

The bill creates a "needs-based" formula, using a debtor's income, living expenses and obligations, to determine his or her ability to repay some or all debts. Those who could afford to do so would be required to file a repayment plan under Chapter 13. But those making less than the national median income (currently approximately $51,000 for a family of four) would continue to have full access to complete bankruptcy relief under Chapter 7.

The legislation contains other important provisions as well. It features a requirement that all filers be informed of their options including alternatives to bankruptcy such as credit counseling prior to filing, and institutes a pilot program of financial management training so filers do not repeat their mistakes. The bill also gives priority to child support and alimony payments, underscoring the obligation of a parent to his or her children. But the heart of the bill is the "needs-based" formula that will require higher income filers to repay what they can.

The Senate will be considering a similar reform bill in early September. It is critical that sensible bankruptcy reform be enacted this year to close the loophole in current law, and to stop the unnecessary burden put on responsible, bill-paying citizens. Contact Senators Jeffords and Leahy to voice your support for restoring fairness and personal responsibility to our bankruptcy system.

Act 250 Update

July 1998
by Jon Anderson, Burak Anderson & Melloni PLC, Counsellors at Law

On April 6, 1998, the Vermont Environmental Board released a draft report describing how the impacts of growth on municipalities should be assessed under certain Act 250 criteria. Business people should follow carefully the further development of that report.

In particular, business people should work to maintain a simple common sense approach that a non-expert can apply in most cases rather than a model that would require extensive studies by economists. Business people should also oppose a broadening of the Wal-Mart decision, (St. Albans Group and Wal- Mart Stores, Inc. #6F0471, June 27, 1995) that would require all businesses to demonstrate that their expansion will not harm their competition. Without such efforts, the development process may grow still more expensive, and competition will decrease with little or no benefit for the environment.

General legal background
Four of Act 250's 10 criteria and approximately 25 subcriteria deal with the impacts of growth as follows:

• 9AImpact of Growth.

• 9HCosts of Scattered Development.

• 6Educational Services.

• 7Municipal or Governmental Services.

Case law applying these criteria may be summarized as follows: Consideration of these criteria has not required substantial economic analysis except in unusual cases. For example, in one case proposing a campground development resulting in greater use of a public beach, the Environmental Board reached a common sense result without economic analysis.

In Walter Smith, the applicant was required to submit to the Environmental Board a plan acceptable to the town of Westmore for additional policing or maintenance services that would be required due to campers from Applicant's campground using the north beach area. (Walter Smith, #7R0113, Jan. 2, 1974, at 2 of conditions). The board concluded: The development will cause an unreasonable burden on the ability of the town of Westmore to provide municipal and governmental services unless provisions are made to restrict the number of persons and vehicles using the north beach area and provisions made for policing and maintaining the beach area. (Id. at 8. Brooks, Richard O., Toward Community Sustainability: Vermont's Act 250, Criteria 7, fn 60. 1997)

The unusual cases in which the Environmental Board has previously required far-reaching economic analysis include only about three types of projects: 1) regional shopping centers, malls and large discount stores (i.e. Wal-Mart); 2) larger housing projects where school-age children might live; and perhaps 3) large infrastructure enhancements such as the construction of new electric or sewer lines.

In at least one of the cases where extensive economic analysis was required, the Wal-Mart decision, the Environmental Board took actions that had the effect of protecting certain businesses from competition. In that decision, the board required Wal-Mart to show that it would not put other, smaller retailers out of business in a manner that could harm the delivery of municipal services. This test could be justified for Wal-Mart because it competes with retailers located in downtowns that Vermonters have chosen to protect. No one has previously suggested, however, a willingness to use Act 250 to constrain competition outside the retail area. Indeed, the Environmental Board has refused to consider this issue as, for example, in the development of recycling centers. (Chittenden Recycling Services, 162 Vt. 84, 643 A.2d 1204, 1994)

The draft report
The Environmental Boards Draft Report appears to call for a significant broadening of categories of projects requiring extensive economic analyses. That Report, if adopted as Board policy, would subject projects likely to cause employment growth, which would affect population growth and income growth, which would affect growth in retail sales markets, housing values and tax base to the more extensive analysis. Naturally, many projects that would be beneficial to the state could be expected to cause such growth.

Further, the Draft Report goes so far as to suggest: "If residents moving to the area to take the jobs are likely to move to surrounding towns because of lower property values, provision of affordable housing in the host town may mitigate the school facility problems in surrounding towns."

This language suggests that a manufacturer might be required to develop affordable housing as a condition to building its factory offering well-paying jobs.

Finally, the Draft Report suggests a significant increase in the industries where competition would be constrained. For example, putative hotel and restaurant owners would be required to analyze the extent to which a hotel or other facility designed to serve tourists would compete with existing projects and/or the extent to which the proposed project would result in growth in tourism beyond that otherwise anticipated for the region.

Comment
To the extent the Draft Report would require comprehensive economic analysis for more projects, business people should be concerned. Where only a few types of developers have previously been required to produce extensive economic studies, the proponents of all projects subject to Act 250 review might need to do so in the future.

Of course, Vermonters agree that development should respect the environment. At the same time, we should not build unnecessary costs into the permit process that discourage even environmentally acceptable projects. The level of analysis that the Environmental Board applied in the campground case is usually sufficient. Few projects can or should have to sustain the level of scrutiny or pass the tests that are applied for new Wal-Marts.

Anderson's legal practice includes representation of applicants in Act 250 proceedings before District Environmental Commissions and the Vermont Environmental Board. He is a former president of the Vermont Bar Association's environmental law committee.