The future of Denmark as a country being able to focus to information technology and innovation is threatened in a degree never seen before.
And the force behind this threat is the existing firms in the business. A too relaxed set of laws aimed at preventing anti-trust movement and price agreements is the cause of these problems.
One of the people who is commenting frequently on this blog wrote me last week with a story about how people in the information technology business are prevented from establishing their own firms or even move from one job to another. There is a link to his blog-entry about this subject.
We all know that an employer can demand that his employees sign a contract when being hired for a certain job, but most people also know that if such a contract state that the employee must refrain from working in a certain line of business the employee should be compensated for this period. So the lesson learned is that you as employer can prevent one of your men from being a competitor or working for such firm but it costs.
So how do you as employer get this protection for free? The answer is that you team up with some of the huge firms developing the software most firms use so you can create a syndicate where all agree that the employees have to take bogus courses in order to service the customers. It is a smart move where you create a submarket with its own price structure and if done good then the entire balance between demand and price is corrupted.
Take one of the largest software firms in the world. If you are a firm with about 50-250 employee you will most likely use their program as the ERP-system in your firm. Such a program solves your accounting problems and it has modules for Sales, purchase, project, sales-/marketing, salaries and stock. Only the Danish office for anti-trust control believes that this major firm which also produces the most widespread operating system in the world has no controlling factor on the market.
They get a large number of complaints from their customers, which are the firms delivering the systems to firms worldwide. The complaint was that due to the financial crisis the price for one hour of aid from a consultant being expert in this program had been cut in half. The customers were not making the huge load of money on their work anymore. So they asked for help and they got it.
Suddenly this spring the major software firm announced that you as consultant firm with their products in your stock you have to take additional exams and have to be a certain number of people with their private little education to remain in the business. It was simply a question about engage in a merger with another firm or simply to choose to go out of business.
The man on the street then ask: “Why do the employees not participate in courses so they can remain in business?”
The simple answer is: “There are no courses”.
In an effort to reduce the number of consultants in business and the prices up they have asked the 8 firms where you can get these specific courses not to have them scheduled for the next 6 months.
Who is losing in this game?
- The Customers, which are found in the Danish industry.
- The employees in the business who will risk their job or their future when they are unable to start on their own.
- Our society because we live from firms which become subcontractors to existing firms or starts up reverse engineering existing product to make them better.