BUSINESS TOOLS: Custom results from standard inputs.
Dr. Bruce Firestone
By Dr. Bruce Firestone - Founder of the Ottawa Senators
The Internet revolution is continuing at a fantastic pace-the changes are still happening but they are occurring with less hype and more substance-below the waterline, so to speak. Professor John Callahan, at Carleton University's Sprott School of Business and his research partner, Mr. Scott Mackenzie, have created a model for understanding the impact that the Internet is having on business showing that it is now possible for the first time in history to get custom outputs from standard inputs and processes.
What this means is that we have transitioned from the days of an artisan who produced one off creations to order through to mass produced products and now to made to order, custom products from standard processes and inputs (like the way Dell's web site allows each client to customize their PCs to their specifications using only standard Dell inputs and processes). By reversing out the design work to the customer, Dell has created a powerful position in the marketplace and become the largest and most profitable PC maker on the planet.
Let me give you another example of home builders. Ultimately, a home builder's web site will allow consumers to choose the model, lot and features they desire while the calculator displays the total cost. Alongside, e-business applications will allow pre-authorized suppliers to log on to the builder's web site to estimate the volume of work required and to bid on it. Scheduling, based on just-in-time delivery, will be net based. Payments will flow business to business via e-payments. Legal closings, land registry documentation, mortgage financings ... all will be web enabled. There is no doubt that efficiency will climb and productivity will increase.
That means that the entire global economy has to move up the food chain- and the only way to do this is to invest in education, medical care and social order, which happen to have been Canada's priorities for the last 50 years. We have it right, now we just need to execute the plan.
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Copyright. Dr. Bruce M. Firestone, Ottawa, Canada. October 9, 2002.
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