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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Don Lloyd who wrote (87256)	12/19/2000 11:41:31 PM
From: Hawkmoon	Read Replies (2) \| Respond to of 132070

In this case the advances must be seen not only as an expense, but as a real cost of survival in a competitive marketplace. Geezus, I wish I was as succinct and focused as you are... You're absolutely right in that we're seeing product lifecycles accelerated to the point where it is becoming difficult to grasp. Whether it be Moore's law, or the increase in attenuation range for fiber optic signals, we're seeing technology grow at such leaps and bounds that companies are forced to upgrade solely in order to remain viable as competitive operations. I'll take Corvis as an example. Apparently, if I recall correctly, their optical switching systems permit ranges in the thousands of miles between hubs. The fact that certain companies will derive a competitive advantage over their peers by reducing overhead costs (having fewer hubs) is a tremendous motivator in the upgrade or die mentality. The very nature of this cut-throat competition displays some the reasons for the current profit recession. However, when the shakeout is over, those corporations still left standing will be the ones who have the tremendous revenue and profit potential. The Europeans and Asians seem to be standing by the sidelines, waiting to see what standard is eventually arrived at, while the US leads the way in this technological revolution. But they may be taking a serious risk in not stepping forward more aggressively in decentralizing their economic systems and promoting entrepreneurial ingenuity. (btw, I'm not saying they are completely backward, but just lagging US emphasis on technological improvements and offering few alternatives of their own). Regards, Ron

To: Don Lloyd who wrote (87256)	12/22/2000 4:38:50 AM
From: Cogito	Respond to of 132070

>>The problem is that a given advance in productivity or technology that a given company may incorporate does NOT guarantee an increase in profits, especially if the company's competitors have access to the same advances.<< Don - Among the many lucid points you made, this one jumped out at me. As a network systems consultant, I agree completely that the availability of computers, network technology, the internet, etc. certainly does not guarantee an increase in profits. However, I don't think it's because the same technologies are available to all competing companies, and therefore they will all benefit equally. In my experience, many companies spend fortunes on technology without deriving much benefit at all. The reason is that all that technology is of little use unless it's deployed according to plans that take the underlying business processes into account. Dell is a good example of a company that has succeeded in harnessing technology to support virtually all of their business functions, from ordering to procurement to manufacturing to support, in such a way as to greatly enhance their profits. There are far more examples, however, of companies that have spent a lot of money on technology, but haven't seen the benefits hit either the top or bottom lines to any meaningful degree. It's late and I'm tired, and I suspect I may not be making my point clearly, but I think this is an important thing to realize. You can give two competing companies the exact same computer and network systems and get two very different results. Hence, there is still the very real possibility that any company can use widely available technology to vanquish its competition. - Allen