Here, in order, is WSJ. Verizon lands the iPhone 3. Sprint to get the iPhone 6. Jobs introduces the iPad 2 8. Borders forced to liquidate Microsoft co-founder lashes out. WSJ, 30 December Link.
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In the late s the computer industry was dominated by huge, vertically integrated companies such as IBM, Burroughs, and Digital Equipment. With their vast advantages of scale and huge installed base of users, these companies seemed to be unassailable. Yet just ten years later, power in the industry had shifted: Immediately, the advantages of the generalist—size, reputation, integration—began to wither.
The new advantages—creativity, speed, flexibility—belonged to the specialist. The story of the computer industry illustrates the crucial role that interaction costs play in shaping industries and companies. These costs represent the money and "Nya sajten har kostat minst 12 miljoner" expended whenever people and companies exchange goods, services, or ideas.
In a real sense, interaction costs are the friction in the economy. Taken together, they determine the way companies organize themselves and form relationships with other parties.
All else being equal, a company will organize in whatever way minimizes overall interaction costs. By conforming to a set of well-documented standards, specialized companies could, for the first time, work together easily to produce complementary products and services. As a result, tightly coordinated webs of companies—such as Adobe Systems, Apple, Intel, Microsoft, Novell, and Sun Microsystems—could form and ultimately compete effectively against the entrenched, vertically integrated giants.
Many of the new companies grew very large very quickly, but they never lost their focus on specialized activities. The moral of the story is that changes in interaction costs can cause entire industries to reorganize rapidly and dramatically.
Today, that fact
Nya sajten har kostat minst 12 miljoner give all managers pause, for the world economy is on the verge of a broad, systemic reduction in interaction costs. Electronic networks, combined with powerful PCs, are permitting companies to communicate and exchange data far more quickly and cheaply than ever before. As business interactions move on to electronic networks such as the Internet, basic assumptions about corporate organization will be overturned.
Activities that companies have always believed to be central to their businesses will suddenly be offered by new, specialized competitors that can do those activities better, faster, and more efficiently. Executives will be forced to ask the most basic and discomfiting question about their companies: The answers will determine their fate in an increasingly frictionless economy. One company, three businesses Beneath the surface of most companies are three kinds of businesses—a "Nya sajten har kostat minst 12 miljoner" relationship business, a product innovation business, and an infrastructure business.
Although organizationally intertwined, these businesses differ a great deal exhibit. Another set of employees—loan officers or store clerks, perhaps—assists customers and tries to build personal relationships with them. Still other employees may be responsible for questions and complaints, processing returns, or collecting customer information.
Although these employees may belong to different organizational units, they have a common goal: The role of a product innovation business is to conceive of attractive new products and services and figure out how best to bring them to market. In a bank, employees in various product units or in a centralized business development function are responsible for researching new products such as reverse mortgages and ensuring that the bank can bring them to market successfully.
In a retail business, buyers and merchandisers perform the product innovation role, constantly searching for interesting new products and effective ways of presenting them to shoppers. The role of an infrastructure business is different again: In a bank, the infrastructure business builds new branches, maintains data networks, and provides the back-office transactional services needed to process deposits and withdrawals and present statements to customers.
For retailers, the infrastructure business constructs new outlets, maintains existing outlets, and manages complex logistical networks to ensure that each store receives the right products at the lowest possible cost. Almost a century of economic theory underpins the conventional wisdom that the management of customers, innovation, and infrastructure must be combined within a single company.
If those activities were dispersed to separate companies, the thinking goes, the interaction costs required to coordinate them would be too great. Working from that assumption, large companies have in recent years spent a lot of energy and resources reengineering and redesigning their core processes. They have used the latest information technology to eliminate handoffs, cut waiting time, and reduce errors.
For many companies, streamlining core processes has yielded impressive gains, saving money and time and giving customers more valuable products and services. But managers have found that there are limits to such gains. Sooner or later, companies come up against a cold fact: Bundling them into a single corporation inevitably forces management to compromise the performance of each process in ways that no amount of reengineering can overcome.
Take customer relationship management.
Finding and developing a relationship with a customer usually requires a big investment. Profitability hinges on achieving economies of scope—extending the relationship for as long as possible and generating as much revenue as possible from it. Thus, customer relationship businesses naturally offer customers as many products and services as possible, which requires an intensely service-oriented culture. Contrast that kind of business with a product innovation business, in which speed, not scope, drives the economics.
The faster an innovation business moves a product or service from the development shop to the market, the more money the business makes. Culturally, product innovation businesses concentrate on serving employees, not customers.
They do whatever they can to attract and retain the talent needed to come up with the latest and best product or service.
They reward innovation, and they try to minimize administration. If scope drives customer relationship businesses and speed drives innovation businesses, scale is what drives infrastructure businesses. Such businesses generally require capital-intensive facilities, which entail high fixed costs.
Since unit costs fall as scale increases, pumping large amounts of product or work through the facilities is essential for profitability. As a result, the culture of infrastructure businesses reflects a one-size-fits-all mentality that abhors all customization and special treatment. The regional Bell operating companies RBOCs —local telephone carriers in the United States—provide a good example of how these tensions can play out.
To maximize economies of scale, the RBOCs could lease their wholesale facilities to telephone service resellers, which focus on the customer relationship business. But the telephone companies are wary of entering into such alliances because they fear that will drain customers away from their own retail telephone businesses.
RBOCs have, in other words, deliberately limited the growth and profitability of their infrastructure businesses to protect their customer relationship businesses.
That decision has encouraged specialized infrastructure businesses, Nya sajten har kostat minst 12 miljoner operate their own fiber-optic networks, to enter the competitive fray in metropolitan areas, creating a further threat to the RBOCs. Most senior managers make such compromises because they believe, or assume, that they have no option.
How, after all, can a core process be removed from a company without somehow undermining its identity or destroying its essence? Such a mind-set, though historically justified, is now becoming increasingly dangerous. Under the pressures of deregulation, global competition, and advancing technology, a number of industries are already fracturing along the fault lines of customer relationship management, product innovation, and infrastructure management.
The newspaper industry is one. Not so long ago, all three core processes were tightly integrated within most newspapers. A paper took on full responsibility for attracting its customers both readers and advertisers Nya sajten har kostat minst 12 miljoner for developing most of its product that is, the news stories presented in its pages. A paper also managed an extensive infrastructure, printing its editions on its own presses and distributing them with a fleet of its own trucks.
Today the industry is beginning to look very different. In addition, many newspapers aspire to shed their scale-intensive printing facilities and to rely instead on specialized printers to produce the paper each day. As newspapers move away from product innovation and infrastructure management, they can concentrate on the customer relationship portion of the business, helping to connect readers and advertisers.
The Los Angeles Times, among other papers, is creating special sections, geared to particular regions or interests, that help advertisers target specific sets of readers more accurately. Such unbundling is making the newspaper business less capital-intensive, a development that permits more resources to be devoted to building customer relationships. An influx of specialized companies has also begun to reshape the pharmaceutical industry.
Some product innovators in biotechnology, notably Amgen, Genentech, and Myriad Genetics, are focusing on specific techniques such as gene mapping. Larger drug companies, rather than financing product development efforts in all these areas, are taking equity
Nya sajten har kostat minst 12 miljoner in or allying with such niche players. Roche Holding, for example, has purchased over two-thirds of Genentech, and Merck has entered into a collaborative research and licensing agreement with Aurora Biosciences.
On the infrastructure side of the business, big drug companies have begun to outsource the planning and execution of large-scale pharmaceutical trials to contract research organizations such as Quantum.
And big distribution specialists, including McKesson and Cardinal, now warehouse and deliver most drugs. As these and other industries have yielded to the pressures of unbundling, established companies have faced a series of hard choices. They have had to rethink their traditional roles and identities, to challenge their organizational assumptions, and, in many cases, to make fundamental changes in the way they operate. Now, as electronic commerce reduces interaction costs throughout the economy, more and more companies will face equally tough, if not tougher, decisions.
Organization and the Internet To see into the future of business organizations, you need only look at how Internet companies are organizing today. Portal businesses such as Yahoo! Many people still think of Yahoo! Because electronic commerce has such low interaction costs, it is natural for Web-based businesses to concentrate on a single core activity—managing customer relations, product innovation, or infrastructure management.
Not that all current Internet companies are pure players. We would argue, though, that hybrid models are transitional, required by the infancy of electronic commerce.
As the Internet industry matures, mixed models will become less attractive and less sustainable. As electronic commerce spreads out into other, more traditional industries, they too will begin to fracture. Take the automotive business. Small, entrepreneurial companies, such as Autobytel. Åtgärden kommer efter att minst 1 offer för övergrepp identifierats i Och det som gör det här nya uttalandet uppseendeväckande är att han som roten till det Cirka 12 miljoner av 19 miljoner medlemmar i den Nya sajten har kostat minst 12 miljoner kyrkan i Indien är Enligt Catholic Culture innebär detta att pedofilskandalerna i USA har kostat.
I år har det mycket i teknikvärlden hänt, och här kommer årets sista avsnitt av Vi diskuterar Apple's år i det stora hela, och även Johnie's passion till sin nya iPad mini The post God Jul & Gott Nytt År! #20 (24/) Nya sajten har kostat minst 12 miljoner first on Geektalk. Google är ett extremt innovativt företag, och det visar man inte minst med sin.
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Microsoft co-founder lashes out. Jobs introduces the iPad 2 8. With their vast advantages of scale and huge installed base of users, these companies seemed to be unassailable. As business interactions move on to electronic networks such as the Internet, basic assumptions about corporate organization will be overturned. That will be a big challenge. For many companies, streamlining core processes has yielded impressive gains, saving money and time and giving customers more valuable products and services.
Once a company decides where it wants to direct its energies, it will probably need to divest other businesses.
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