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- John Sumser, © TwoColorHat. All Rights Reserved.
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- John Sumser, © TwoColorHat. All Rights Reserved.
The video Resume is finally beginning to make a real appearance. The unfortunately named GetARealJob offers candidates the opportunity to prepare an interview and have it attached to a complex on-line resume. While the early entrants in video delivery are all hoping to profit from selling candidates on video attachments, we imagine that the reasonably near future makes video a standard. The interesting thing about the GetARealJob approach is that it could easily be duplicated as an adjunct feature for many current boards. At GetARealJob, the candidate tapes the interview using a VHS video camera. The tape is then sent to GetARealJob who converts it to a realvideo clip and hosts it online.
A system that processes video resumes in this way could easily be set up for under five thousand dollars. Able to process video at 10 "resumes" an hour, the cost to a job board would be five dollars per production unit. Shipping the video cassette is likely to be the most expensive part of the recipe. But, even at $10 or $12 per Resume, the resulting database would have a tremendous advantage over the competition. Expect to see these things multiply. It's one way to capitalize on the technical inflection point.
- John Sumser, © TwoColorHat. All Rights Reserved.
Because the two industries complement each other, this market based balancing act is the normal way things work. When you talk to long term users of desktop computers, they are more likely to remember buying software that had a lot of capability but performed slowly. The balancing side, when computers easily absorb the existing software are easily forgotten. Things seem to work smoothly when the hardware has more capacity than the available software.
We are currently sitting in one of those times when available hardware has a lot of excess capacity.
In our offices, there is a growing room full of machines that operate at 500hz with 20 Gigabytes of hard drive space. Just a year ago, we were excited about having one third of that capacity. (Mind you, we've been buying current hardware for our various video projects. Video takes a lot of capability and storage capacity.) We see no visible performance difference in standard office software, databases, Internet browsers and the like.
Meanwhile, the sophistication, quality and speed of the servers that are the Internet's processing backbone are improving dramatically with each passing day. Again, the hardware leads the software capability. While the servers are capable of complex transactions, the software that could analyze these transactions remains astonishingly primitive. Today, if you want to really understand the dynamics of your website, you have to develop the tools yourself. The industry standards (like Web Trends) are pathetically inadequate.
The industry moves we discussed yesterday indicate a broad move towards a service model that is priced as a percentage of the employment transaction, putting intense downward pressure on traditional headhunters. The third party firms are taking it from all sides. Just as the newspaper industry clearly lost the first round of the job board competition, third party firms are about to take it in the shorts from web enabled competitors. There's an open window, but the solutions involve software development. That is hardly a core strength of the Traditional Staffing Industry. It took actual declines in Recruitment Advertising revenue to prompt the newspapers into real action. We're currently betting that it will take the same dynamic to bring the old school Recruiting firms out of their slumber.
If you haven't had the chance, take a look at the current edition of our print newsletter. The major story concerns the web development efforts in a major third party firm. Hampered by low stock price and cash flow problems, the company is unable to drive meaningful investment into its web operation. Floundering without a serious long term strategy (or the resources to back it), the company offers no near-term web potential. Even though the current inflection points were entirely predictable, the company continues to sit at a juncture where its leverage could be great. The web development team is left to scrape improvements out of whole cloth.
The combination of the moves in the Electronic Recruiting industry and the excess capacity in desktop systems creates a huge opening for agile market entrants. The old school is slow to move and invest. They are burdened with outdated business models. This inflection point favors new entrants. Keep your eyes open, they're coming.
- John Sumser, © TwoColorHat. All Rights Reserved.
The market dynamics change like the seasons. Sometimes, the market is flooded with new entrants. Sometimes, the emphasis is on marketing and market development. Sometimes things simply move along. Sometimes, and they are few and far between, the industry seems to explode with new and useful ideas. We relish the times that explode our preconceptions. After all, the web is a revolution in progress. We are most entertained by companies who are sure that they know the answer.
Over the past several weeks, a series of product releases and news items have consistently blown our assumptions to shreds. For instance:
- John Sumser, © TwoColorHat. All Rights Reserved.
Along the road to publishing this edition of the print newsletter, we've undergone some changes here at IBN.
After two solid years of bouncing around the North American continent delivering classroom seminars, a couple of simple things dawned on us. First of all, it became increasingly clear that many job boards were going to be delivering free seminars as a part of their marketing strategy. It's a natural and important evolution. Internet Recruiting tools currently require a heavy dose of education before customers can effectively use them. Secondly, it became clear to us that classrooms are not effective in delivering the sorts of advanced techniques that we've pioneered.
As a result, we've split our training product line into two separate components. For the past couple of months, you've probably noticed the piece at the bottom of this page offering our onsite individualized training. By focusing on the specific needs of a specific company, we've been able to leave our customers glowing, effective and ready to move full tilt into the online recruiting game. We're convinced that this customized approach is a necessary part of building a solid online recruiting team. With a dozen, of these engagements under our belts, we can assure you that our customers end up extremely satisfied.
In the print newsletter, we're announcing the second part of our training initiative. Seminar In A Box, our CD based training program, will begin shipping on June 1, 1999. The idea is simple. Rather than taking a full day out of the workplace to digest relatively foreign ideas, we're building a day long training program that can be constantly reviewed by all of the people in an office. The courseware is built around our day long Advanced Searching and Sourcing Techniques seminar and includes video, text, testing and a completion certificate.
We are convinced that solid Electronic Recruiting can only happen in a work environment that shares a base level of competence. With a CD based training program, the workforce can be trained during slack hours. Because the material is reusable and repeatable, it's now possible to create a solid foundation of expertise within a company. We're proud of the fact that we're the first (as usual) to use the technology to reduce costs, increase benefits and further expand the capabilities of our customers.
We're offering the course at $295 for prepublication orders (through June 1, 1999). After that point, the package will sell for $395. Given the fact that similar seminars, held in hotel classrooms away from the workplace, retail for $995 per person (and more), we're sure that you'll agree that the offering is a bargain.
You can learn more about Seminar in a Box and get a copy of the order form by downloading the print newsletter. It's a great way to bring your entire office up the learning curve.
- John Sumser, © TwoColorHat. All Rights Reserved.
We've recently added Nicky Gordon to our staff. Nicki is a seasoned recruiting research professional and an acclaimed trainer with extensive hands-on experience solving sourcing problems with the Internet. She will be delivering these customized training programs in which:
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