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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 76.09-1.1%11:22 AM EST

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To: elmatador who wrote (26825)7/12/1999 12:09:00 PM
From: The Phoenix  Read Replies (3) of 77400
 
elmatador,

Interesting post... perhaps if you look at costs of running a business 10 years ago from a broader sense you might get some answers as to why investing in IT is critical today. Productivity is not the only measure of the benefits of true multiservice connectivity. Also, consider opportunity costs...or the cost of not innovating on the net.

Take a look at Barnes and Noble versus Amazon...should B&N not have a web presense. Look at all the retailers and wholesalers...heck people are buying groceries on the web. If brick and mortar companies don't innovate they'll be dinosaurs..they'll be Smith Corona.

Take a look at travel costs... should companies continue to travel when video or audio or other collaborative techniques can be used. The cost saved in travel probably pays for a good portion of IT investment.

Take a look at service providers... should they not deploy networks which deliver complete multiservice and new service to their customers as a way to increase revenues by selling new services? Keep in mind that for incumbents these investments are critical to competing against newer startup....much like the retailer model above.

Cost of order processing... This is a big win for cisco. To be sure much of Cisco sales are still conducted in a traditional fashion, but ordering is done via the web. I can assure you that the productivity benefits are real. Just look at Cisco's margins.

Please consider these aspects...and the 100's of other examples I haven't got the time to list. I think productivity is only a small measure of the need to continue to invest in IT...it is actually the life of the business these days.

OG

BTW: If I missed the point I apologize..your post could have used a bit of editing. ;-)
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