Changes in Technology

The Internet is the broad new wave of technology, and we're just at the start of a ten-year cycle. The Internet has changed our ability to communicate and interact with people. We're just beginning to understand how that will change business processes and the interaction between companies and their customers. There is a very bright future ahead. You can do things differently, but it's a freeing experience. It's scary for some people, but it's a good thing.

Our pure Internet architecture has given us a 24-month lead over our competitors. Client/server lasted about ten years, and its major features were effectively limited to a better user interface and the ability to adapt faster. We saw the potential of the Internet as even broader:

1. The Internet lowers the cost of doing business by reducing the cost of deploying applications. It is a lot cheaper to deploy systems over a browser than to install code on client.

2. The Internet provides universal access to business that enables organizations to work collaboratively with their customers, partners, and suppliers. The most profound change of the Internet is that we now have an environment where clients, partners, and suppliers all have the same infrastructure to access systems as easily as consumers can access anything over their browsers, such as Yahoo! or Amazon. Businesses have the ability to change business processes and have access to information they never had before. Customers can place orders for products and report problems using self-service features. You can provide your partners with leads, and they can track them down.

A common problem for many businesses was that with channel partners to sell their products, there was little visibility into potential problems. The ability to expand the access to systems via the Internet can help run a more efficient business because it gives the decision-makers insight into what is really going on. Businesses are changing their processes. The Internet is the enabler for it. A simple example is FedEx. They gave you the ability to access their Web site to find out where your package is. For you it's a benefit. You can do it yourself. You don't have to worry about someone entering the number incorrectly. FedEx cut their costs dramatically by not having a staff call center. This is an example of a win-win, where the business process changed to give both parties better information on a timely basis and reduced costs. We're just beginning to see how processes can be changed to do this. It really does follow the macro trend. Companies no longer try to do everything themselves. Vertical integration went out with Henry Ford. You're now using partners or outsourcing, or you're doing virtual organizations that are doing things. But to be effective in those virtual organizations, you have to have access to the core information so people can make informed decisions so you don't lose things during translation. That's what the Internet enables products to give you. You can deploy the applications in a universal scheme.

Business processes are being enabled as Web services to reduce the cost of setting up collaboration. The drive for universal access is being aided by the development of standards to allow business process to be seen as a set of services that can be more easily accessed than the stiff interfaces that have been present in the past.

New devices are emerging; the reign of the PC as the dominant device for accessing the Internet is declining. Mobile workers want mobile access, whether it's by taking their data with them or accessing it via wireless technologies. People are demanding access to information from more convenient devices, such as PDAs and phones. These new types of devices will form an adjunct to the PC of today and will allow access instantly. By removing the barriers to information systems, a whole new class of users can be served, and their work can be made more effective.