Journal Detail

Journal 6 – Technology

December 2002

Despite the stock market boom and resulting backlash of the late 1990s, a number of organizations still believed that innovative technologies could truly transform our world and developed capabilities that rely on this infrastructure. This issue focuses on how innovative technologies can enable organizations to improve their overall corporate strategies and the way they operate.

The dot com crisis has caused more damage to the financial services industry than merely loss of investment capital or market capitalization. What it has done is to divert management attention away from focusing on the true benefits of new disruptive technologies to how the bursting of the dot com fueled speculative bubble has created an environment that most senior management had not experienced in the lifetimes.

While most would agree that during the stock market boom of the late 1990’s certain share prices were highly questionable, the resulting backlash that pursued can also be viewed as excessive. The spiraling stock market, which many attribute to the so-called dot com companies, resulted in many questioning the fundamental justifications behind employing Internet as a tool for businesses. Senior executives dismissed most references to this medium, and its potential benefits, by pointing to the over-optimistic perspectives that were held by the investment community prior to the crash. Suggesting that anyone who believes in the tremendous capabilities of this new infrastructure is just as over-optimistic as his predecessors who invested in the shares of those companies that operated under its banner during the 1990's. As a result, many firms did not take an objective view of this new medium and failed to take full advantage of it to achieve the two most important objectives they have today, managing costs and improving revenues.

However, despite the tremendous negative publicity that this new medium received, a number of organizations continued to believe in how these innovative technologies can truly transform our world and developed capabilities that rely on this infrastructure. The result has been the development of technologies as advanced as web services, which allow different systems to communicate with one another both within and without organizations. As a result of these continuous innovations, it is now possible to imagine a world in which STP is no longer just a buzzword.

Recognizing the contribution of the Internet to our world is one thing, but being able to address it in a way that actually helps executives recognize how it can help their overall corporate strategy is another. That is why the articles selected in this paper do not focus on the underlying architecture, but on how they can enable organizations to improve the way they operate.

We hope that you find the articles in this issue helpful and continue to support the journal by submitting your ideas to us. We further hope that we have achieved one of the objectives that we share with the technology sector, to help present new technologies in a way that can be useful to senior financial executives.