The ABCs of Becoming IGC

nternet Generation Companies have three things in common: a) they recognize the transforming and organizing potential of the Internet, b) they are innovators, and c) they employ network technology to connect every facet of their business. If your company has what it takes to become an IGC, how do you get started?

IGCs start by building the bandwidth required to shape network technology and then begin to Web-enable existing operations to drive down operating and administrative costs. Then the company is in a position where fewer of its employees are needed to conduct basic operations or perform routine work, and more of them are in a position to use Web-enabled infrastructures as a basis to create new market opportunities and advantages that are difficult for competitors to copy.

A. Bandwidth

• The network must be able to transfer information quickly, so it's critical that hardware and software standards are established early on.
• Servers and their operating systems must be specified and database software, a management platform and desktop office suite software chosen.
• The intranets and extranets that require bandwidth are an important first step. However, the full potential of network technologies is only reached when applications move from passive information transmission and electronic brochures to interactive networks that empower communities - suppliers, strategic partners and customers - to transact online.

B. Web-Enable Existing Operations

Many activities currently performed by or with human help will be automated and committed to the Web over the next few years. Several factors should guide that process:

• A key early decision is determining which tools and activities - such as call-center software or document imaging - can be managed well using standard solutions. While the overall network architecture and some applications are amenable to off-the-shelf solutions, some will require customized algorithms.
• Web-enabling requires sophisticated project management and change management skills - and ongoing maintenance. Ensure that the right human resources to manage the project during development and to maintain it, once in place, are part of the plan.

C. Using IT/Networking to Be More Competitive

This third step allows people, whose time has been freed by Web-enabled operations, to get creative. Their innovations - for example, at Cemex, the transformation of a random delivery process into a complex, IT-driven, transport logistics business - change the market in a manner competitors struggle to replicate and that customers value. That innovation is then embedded in the networked infrastructure.

Resources

Peter J. Brews
Professor of International Management, Strategic Information Technology Management and Corporate Strategy
(919) 962-9834
To learn more about the Cisco case study, e-mail .

Joe Freddoso
Research Triangle Park Site Operations Director for Cisco Systems
(919) 392-7939

Jayashankar M. Swaminathan
Professor and Area Chair, Operations,
Technology and Innovation Management
(919) 843-8341