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A 40 percent profitability advantage, where profitability is expressed as earnings before income and tax as a percentage of revenue Average total supply chain costs just above 8 percent of revenue, versus 10 percent for companies with less mature supply chain practices Superior customer service, with 25 percent less inventory investment

4

Incorporated in 1988, Citigroup (C: www.citigroup.com/ ) is a diversified global finance holding company that services almost 200 million customer accounts and employs 268,000 employees in over 100 countries. Citigroup is the world s largest financial institution. It conducts its activities through subsidiaries that are leaders in their respective fields: Citibank in commercial banking, Salomon Smith Barney in investment banking and brokerage activities, Travelers Property Casualty Corp. in property and casualty insurance, and the Travelers Insurance Company in life insurance and annuity products. Citigroup divides its operations and businesses into several groups: Global Consumer, Global Corporate, Global Investment Management and Private Banking, and Investment Activities.

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Trade Center attack, where streaming Web sites were unable to cope with the demand, are unacceptable. The network must scale and remain resilient to load and fault conditions. Once again, all the necessary techniques are known and ready for deployment. The question is whether or not the investments will be made to provide assured quality of service.

Advancing your company s supply chain performance means moving from where you are today to a future state that includes next-generation processes and infrastructure, including information systems. Technology is only one part of the story and it isn t the first chapter. Throughout this book we have noted where the five core disciplines can and should be enabled by effec-

Consumers require a single standard to emerge. If one does not, the majority of consumers will elect one. While there are vigorous efforts to standardize the technology underlying streaming media, proprietary solutions largely prevail today. This is a good thing when the technology is emerging and innovation is required, but a poor thing when the technology is seeking to attract the early majority of consumers. MPEG-4 seems to be gaining momentum as the emergent streaming media standard, but there are still issues surrounding Web transport standards. In particular, edge caching is still in flux. Thereafter, the biggest obstacles to standardization concern IP routers, whose vendors have not widely adopted either multicasting capabilities or quality-ofservice protocols. Because of the sheer size of the installed base, it may take many years to phase out or upgrade legacy routing equipment.

Content producers are still in love with analog production methods and quality requirements. We have seen that these are not well suited to digital content production for niche audiences and are overkill for production and distribution systems that do not progressively degrade the content via generation loss and induced system noise. In other words, audiovisual production techniques are too slow, unwieldy, and needlessly expensive for streaming media applications. Streaming media audiences are much too fragmented to support expensive production methods, though the on-demand nature of streaming media means that the content can go on earning revenue long after its first release. Production tools need to be highly automated and desktop tools are required for cost effectiveness. For production operations that require a great deal of computing power, such as video effects processing or ray

Global Consumer provides banking, lending, investment services, and insurance to consumers and small businesses throughout the world These products are provided by the following operating entities: Citibanking North America, Citibank Online, Mortgage Banking, North American Cards, CitiFinancial, and Primerica Financial Services Global Corporate provides investment advice, investment banking services, and commercial banking services to corporations, governments, and institutions in over 100 countries through its Corporate and Investment Bank (CIB) It underwrites and distributes debt and equity securities for corporations and for foreign, state, governmental, and governmental-sponsored agencies Global Investment Management and Private Banking offer a broad range of asset management, insurance, and annuity products Traveler s Life and Annuity, Citigroup Asset Management, and Citigroup Private Bank provide these products to institutional, and high net worth retail clients Investment Activities consist primarily of Citigroup s venture capital activities and special situations regarding Citigroup s lending activities to foreign entities.

Stage 4: Cross-Enterprise Collaboration Stage 3: External Integration Strategic partners throughout the global supply chain collaborate to: Identify joint business objectives and action plans Enforce common processes and data sharing De ne, monitor, and react to performance metrics A collaborative supply chain strategy enabled by advanced information technology enables: Alignment of supply chain partners business objectives and associated processes Real-time planning, decision making, and response to customer requirements

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