White Paper: The On Demand Economy

In the past four years, we have seen it all: stock market meltdowns, terrorism, bankruptcies, scandals and corporate layoffs. Today’s CEOs are navigating in rough water and must turn new external realities into opportunities for their organization.

Information technology, the growth engine and productivity producer of the 1990s, is at the center of the change we face. A set of enabling and constraining drivers will guide CEOs and CIOs as they focus IT investments on building competitive differentiation rather than maintaining existing systems. A new organizational construct, the On Demand Enterprise, is emerging to help us address this change.

Characteristics of the On Demand Enterprise include abilities to:

· Flexibly respond and deliver to spot demand levels with no long-term commitments.

· Dynamically grow or shrink based on the variability of demand for products and services.

· Operate anytime, anywhere, under any condition.

· Dynamically minimize asset and labor content per unit of production.

· Provide real-time transparency of operations both for external and internal visibility.

It is essential to understand what has happened over the past four years, what we have learned, what the new drivers of economic prosperity will be and how best to structure an enterprise for maximum performance. CEOs have to rethink the structure of their markets and their organizations based on new external realities and new opportunities. Such opportunities will produce dramatic, positive change to organizations and the world economy as a whole.

Changes will result in new enterprise structures and new supply chains, which will form the backbone of the On Demand Economy.

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