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IBN: Defining Excellence in Electronic Recruiting

interbiznet this week (through October 27, 2000)

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It is better
to not be on
the web than
to be on and
not know why
John Sumser

Reality
is more
complex
than
it seems.
John Gall

It's better to
do a few things
really well than
than to do
a lot of things
badly.
If you can't
make the necessary
commitments of
time and energy
to your
electronic
marketing
efforts
scale back
your plan.
John Sumser

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Consolidation

(October 27, 2000) The web flattens and disintermediates. It encourages serial communications between peers. It resists top down governance. It grows too fast (and slips into too many cracks) to administer. It flickers and then burns. People want to be free; information just follows them.

Technology is a funny word to use to describe the work people are doing in our industry. While the real work looks like Database Administration and design, the mysterious implications of the word 'technology' keep us from seeing the simple things that are getting done. If asked, we'd suggest that the word 'technology' be limited to real invention, not clever ways of using existing tools. The reason that our industry continues to grow is that there is no real technology underlying the business.

It boils down to a service that automatically underlines important classified ads in an electronic newspaper. As delicious as that may be, it's automatic highlighting and nothing more. The investment required to start a business in this space is small; bootstrapping is possible; capital is often a 'nice to have'.

Coupled with the historical reality that no single entity has owned more than a 4% market share, the easy to duplicate technology in our business means that Electronic Recruiting businesses will continue to proliferate. Consolidation (even though some large ventures are failing) is not close at hand.

Rather than forecasting the emergence of one or several large dominators, we expect the continuing fragmentation of the market. It's only the web doing what it does best. We are simultaneously blessed and damned by the free market infrastructure in our business.

- John Sumser

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Richard Johnson, CEO of Hotjobs.com, says "Our technology is the best in the space." So why haven't they turned a profit yet?

THE 2001 Electronic Recruiting Index

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