Tuesday, June 21, 2005

Business transformation.
Change or perish!

Resisting change is a natural order of things. We get fat and happy with the way things are. Even if they are not ideal, it is easier tolerating the status quo than dealing with change and the unknown reality it can bring. But then the rules get changed on us by people we didn’t even see coming over the horizon. Take a little European company like Skype Technologies S.A. with a technology that lets people share their own resources with one another – legally.

Skype users allow the company to access their spare computing power and web connections as a collective resource to route phone calls between users. The network becomes a self-sustaining phone network. Users connect with other Skype users via headsets connected to their own computers. Better sound quality at no cost. Business Week Online gives an example … 35 employees at Meiosys, Inc., collectively connected to Skype. The company’s monthly long distance phone bill of $2,000 simply disappeared into the Internet. So, the folk at AT&T and MCI were sitting around fat and happy. No need to change, right? Think again. The once powerful phone companies are now losing an estimated 150,000 customers to Skype every day

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