PlantSuccess Newsletter

Volume III, Issue 13

25 June 2003

 

Dear Subscriber:

It has become virtually impossible for anyone in business, certainly in the US, to be unaffected by Microsoft every day. Although it is not unusual for a limited number of companies to have a major impact on the lives of large numbers of people, it is unique for one company to have such an impact on so many for so long. The size and impact of Microsoft is measured and described in many ways – always huge – yet, paradoxically, the company has earned a reputation for being very responsive to changing requirements of market conditions.

Just how big is Microsoft? A common measure of relative size is Fortune’s Global 500:  Wal-Mart ranks 1st with annual revenues of $220 billion, ExxonMobil is 2nd, GM is 3rd … Microsoft is ranked 175th with $25 billion in revenue plus an industry leading $8 billion in profit. A measure for investors is market capitalization: MSFT is at $270 billion (a long way from the $500 billion level of 1999) and back to being #2 behind GE at $292 billion. By comparison, ExxonMobil’s market cap is $245 billion and GM’s is $20 billion!

The company has been incredibly successful and these numbers are huge by any standard, making a recent e-mail to company employees from CEO Steve Ballmer all the more remarkable. Titled “The Microsoft Business Plan,” Ballmer laid out a six-point plan for “operationalizing” the company’s priorities, to wit:

  1. Providing “integrated innovation”
  2. Delivering superior customer responsiveness
  3. Offering the best platform for developers
  4. Providing high-value “experiences” and services
  5. Generating enthusiasm for the company’s products
  6. Making improvements in employee talent and productivity.

I’ve seen a lot of business plans and a lot of communications from executives to employees, seldom anything like this. Following the rule of CMII, this is clear, concise and consistent and will get the job done.

Ballmer takes issue with skeptics who have questioned IT’s strategic advantage. Advances in software, he wrote, “will be one of the biggest sources of value creation for customers.”

PlantSuccess also is about value creation. Innovative managers from leading process manufacturers discuss effective implementations of engineering IT including business drivers, impact on work processes and integration requirements. Sessions are actively moderated; a lively Q&A is assured.

PlantSuccess also attracts sponsors with the demonstrated ability to provide the products and resources necessary to meet the demands of managing the physical plant and its corresponding information through the multiple phases of the plant lifecycle.

AVEVA, a valued sponsor of PlantSuccess and a long-term provider of highly valued software, held its annual ISEIT conference at The Woodlands in Houston last week. The event featured keynoter Mike Miller, CIO of Jacobs Engineering, and presentations by senior managers from DuPont, Merck, NETCO, SAIC, Shell, Foster-Wheeler, KBR, Paragon and other users plus presentations from AVEVA application experts.

AVEVA announced the release of VNET Navigator, a web-centric solution for the collaboration of plant models, schematics and component data that should be very useful in plant management. Learn more about VNET Navigator at www.aveva.com and from AVEVA personnel in the Solutions Marketplace at PlantSuccess Northeast 2003, 15-16 October at the PHL Airport Marriott. Visit www.PlantSuccess.com for more information and join us.

Best regards,

Carl. Howk, Chairman

 

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Current Links   

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Gain an understanding of what Web services are and what they can do.

From Gartner’s Matthew Hotle, A Conceptual Evolution from Process to Web Services:Web services" are not the same as "things done over the Web." To clarify the definition, we track the evolution of manual processes over time into Web services, without targeting a specific Web services technology.

An interesting, comprehensive article on Web services, the summary: “Without a common vernacular, Web services will remain a hype-laden panacea for business and technical staffs. By gaining an understanding of what services really are, and what they’re capable of doing, application development staff can prepare themselves and their business partners for the realistic benefits that can be realized through service-oriented development.” READ MORE.

 

Building “Digital Loyalty Networks.”

A very interesting, lengthy article from Deloitte Research, with the intriguing title, “Profiting from Continuous Differentiation in the Global Chemicals Industry.” The article cites frequent PlantSuccess contributors Dow Chemical and Rohm and Haas as among those manufacturers looking to compete on a basis other than price or product differentiation.

The Executive Summary includes: “While the chemicals industry struggles to remain profitable and meet its cost of capital, our research on nearly 100 major global chemical companies in North America, Asia-Pacific, Europe, Latin America and South America found that those with effective digital loyalty networks were on average 95 percent more profitable than those that lacked the core elements of such networks.” READ MORE 

 

The PlantSuccess Newsletter generates a substantial number of visits to our website, we welcome the interest and the access to previous issues of the Newsletter which are available there. If you'd like to share this newsletter with a colleague, just forward a copy. Subscribe or cancel by sending a request to Carl.Howk@PlantSuccess.com

 

Full links to Volume III, Issue 13 Newsletter articles:

 

  1. www.aveva.com
  2. www.PlantSuccess.com
  3. www.gartner.com/NewsLetterServlet?fcn=activityPublisher&unique=619505&link=3485&doc_cd=114689
  4. www.deloitte.com/dtt/cda/doc/content/dtt_Mfg_ProfitingFromContinuous_061603.pdf
  5. www.PlantSuccess.com