Further to my last response, the following story brings out the power of this up cycle.
It's not just more chips.
It's not just the Internet.
It's an overwhelming transformation of fundamental business processes essential for improving productivity of each and every successful business.
Companies will either evolve or die. Darwin's survival of the species or Schumpeter's Creative Destruction is at work.
We're witnessing the most rapid improvement in productivity brought about by innovation and silicon ever.
JMHO,
Ian.
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Monday February 7, 10:42 pm Eastern Time
Toshiba aims to cut costs 20 pct in 3 yrs
TOKYO, Feb 8 (Reuters) - Electronics maker Toshiba Corp said on Tuesday it aims to cut production
costs by 20 percent in the next three years through procurement reforms, including trimming its number
of components and materials suppliers to 5,000 from 7,500.
Toshiba plans to review its current procurement practices as part of its next three-year business plan to
be drawn up by the end of March, it said.
The company plans to conduct 80 percent of its total procurement through the Internet in the next
business year starting in April, a Toshiba spokeswoman said. She did not indicate the current percentage.
It will also increase the use of dollar-based transactions in procurement overseas, in order to reduce foreign exchange risks, she said.
In January, Matsushita Electric Industrial Co Ltd said it planned to order most of its domestic parts and materials for electronics
manufacturing, worth 2.2 trillion yen annually, through the Internet by March 2001.
Toshiba's shares closed the Tuesday morning session at 847 yen, down three yen or 0.35 percent. |
