PDF of this tutorialAs humans, we all follow a common decision-making process: first we recognize, then we commit. We may commit quickly or slowly, and the intensity of our commitment may vary, but in any case, there must first be recognition and an understanding of why we need to commit. To commit to revolutionizing one’s business processes, one must first understand what forces are driving the market.
The Pace of Change
For a century, the telephone and its network have remained relatively constant. Over the years, it expanded but primarily existed for person-to-person voice communication. In the last two decades, the telephone business, led by fax, wireless telephony, and the Internet, has been anything but constant. Today, telecommunications is at the heart of the most dynamic innovation that has ever been seen in industry. Coupled with equally impressive advances in computer technology, computer speed, and computer acceptance, these two industries are driving and revolutionizing not only how we communicate but also what we communicate.
Data has surpassed voice as the predominant media over the telecom network. E-mail volume surpasses post-office volume. A trip to the store is replaced by ".com-click." Intranetworked supply chains replace purchasing orders. Innovation, rapid time to market, worldwide access, and value to the customer are hallmarks of this revolution.
For example, network bandwidth has been growing at a rate of 36 percent per year. This rate is expected to increase to 43 percent. In 2005, bandwidth will have increased by 10 times over 1998 levels (see Figure 1).
Figure 1. Bandwidth Increase
Certainly, the growth in data bandwidth is attributable to the popularity and value of the Internet. Fueling this bandwidth demand is the growth of Internet hosts. Hosts are expected to exceed one billion in the year 2003, which means that the number will increase by 10 times every 2 years (see Figure 2).
Figure 2. Internet Host Growth
The personal computer (PC) makes the Internet real and available to millions of individuals and businesses. Without the PC, the Internet would be just so many packets of data used by a select few businesses. With processing speeds living up to Moore’s Law and increasing at 60 percent per year, and with costs dropping to within the reach of millions of new customers, the computer is helping fan the Internet flame into a wildfire (see Figure 3).
Figure 3. PC Speeds
What does all this mean to the reader? The telecommunications industry is experiencing and driving change at an unprecedented rate, resulting in revolutionary new ways of communicating and conducting business. No statistic demonstrates this more than the rate at which new technology is being adopted. It has taken the Internet only 7 years to reach the level of adoption it took the telephone 35 years to achieve. This technology adoption rate, greater by five times, represents a critical issue for today’s business leaders (see Figure 4).
Figure 4. Technology Adoption Curve
At this rate of technology innovation and adoption, can one’s business afford to miss a technology cycle?
If the answer is no, there is a way to change one’s business and accelerate it to run at or ahead of market speed: revolutionize it.
This revolution touches each process in the business engine that creates value for customers and stakeholders. If goals are set high, the following are some of the results to be expected:
- process-improve design and development to reduce time to market by 50 percent and introduce twice as many new products to market in the same time frame with the same resources
- never miss a technology cycle but, rather, compress it to one’s advantage
- process-improve the order-fulfillment cycle by creating a seamless, frictionless process from order entry to invoice
- delight and amaze customers with how easy it is to do business with the company
- push top-line growth as a market leader
- improve cost per sales dollar dramatically by optimizing resource utilization
- satisfy investors with earnings growth
These are the results of revolutionary change. They are exciting, and the need for change is compelling.
