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Strategies & Market Trends : The New Economy and its Winners

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To: Lizzie Tudor who wrote (17827)8/18/2003 3:44:35 AM
From: Lachesis Atropos  Read Replies (1) of 57684
 
Lizzie, one has to take into account that the companies are learning how to allocate resources efficiently--computer automation via web is still a fairly new technology. Now is the time companies will be realizing a return on investment. Also,in some cases a 486 can do a job better (at a lower cost) than a Pentium II. Some computers function as dumb terminals. Compile debug test cycles are done on faster boxes. No need to upgrade.

Another point is that many companies, Telco’s are a good example, have empowered their customers. What was initially handled by call centers has been automated by web applications. Just before WCOM fell it did get an enterprise web portal developed which enabled them to close a few call centers.

To sum up, good employment numbers and capex are not necessary conditions for companies to show good earnings. Wise allocation of resources and automation reduce employees, expenses and increase profits.

Lawrence
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