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Yet, at the heart of the offering will be the PC with the Windows operating system running on it Administration of the forthcoming NET or XP server (code-named Whistler) is not a simple matter If this is the platform upon which the eHome vision is built, grandma will be excluded from receiving her information, news, and entertainment via streaming media What the streaming media industry needs, in the long run, is widespread FTTH However, either through lack of investment, lack of vision, or lack of policy to make it happen, the local loops may stay with antique copper connections, making it impossible for consumers to go cheaply enough to higher and higher bandwidths.

If the quality of bandwidth provision to the home doesn t improve radically, then the quality of streaming media services will not be acceptable to most consumers, who are already familiar with the quality offered by digital television services If the quality of the overall streaming media service, including bandwidth provision and the quality of the streaming media experience, remains as low as it currently is, nobody except curious technophiles will watch It s as simple as that..

Observed Return 9.00% 15.00% 3.00% 21.00% 42.00% Average Return 10.50% 10.50% 10.50% 10.50% Deviation of Return 1.50% 4.50% 13.50% 10.50% 0.00% Squared Deviation 0.000225 0.002025 0.018225 0.011025 0.0315

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Rosen chose his team carefully Today, his cost per head is somewhat higher than in the past, but there are far fewer people, and each one provides critical skills the organization formerly lacked Matching the right people to vital roles is no easy task Many managers are reluctant to jettison an employee who has served the company well, for example, even if his or her skill set does not meet the needs of the redesigned supply chain organization Other companies view the prospect of finding, recruiting, hiring, and training the people they really need as too complicated or time-consuming, so they transfer someone who did well in one position but is a poor fit for the slot being filled It s important to resist the temptation to force-fit a valued employee into a role for which he or she is not qualified..

For streaming media to succeed, people will need to trust the system to guard their privacy. In every transaction involving streaming media, there will be opportunities for private and personal information to be recorded and accessed. Consumers need to feel confident that unauthorized access to that information will never take place.

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The average annual return over the four years is 105 percent as shown in column 3 The sum of the deviations around an average is always equal to zero, as shown at the bottom of column 4 The sum of the squares of the deviations divided by (n 1) yields the variance of the returns in this case it is equal to [0315/(4 1)] 00105 The square root of the variance is the standard deviation of the distribution, in this case (00105)^(1 2) 1025 percent The standard deviation measures the spread of the observations around the average of the returns A high standard deviation means a big spread of returns and a high risk that the actual return will not equal the expected return In finance and economics, risk has both positive and negative implications.

Even worse than making wrong fits is designing an organization that is too strongly influenced by the skills and interests of existing employees. We worked with a computer peripherals company that was moving to an outsourced production model. The company engaged two contract manufacturers, each responsible for a major product line. The supply chain vice president created two relationship manager positions, knowing that managing each of these new relationships would be a full-time job. Not surprisingly, several current employees saw the new positions as an excellent opportunity. Although the new jobs called for a more sophisticated set of skills, the vice president found himself lobbied aggressively by internal candidates. He also was under tremendous pressure to just get someone in here. He ended up hiring both an internal candidate and an external hire a seasoned industry expert who had been managing a contract manufacturing relationship for several years. Not surprisingly, the home grown relationship manager struggled with his new responsibilities. After six months, he was replaced by a more qualified individual. The lesson Your supply chain strategy and associated processes will fail to move your company forward if you don t have the right people. Effective execution demands the right skills and capabilities. Define your organization around the end-to-end supply chain processes, identify the skills you need for each role, and then go shopping both inside and outside your company. Don t let the inventory on hand limit the success of your organization.

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