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Organizations tend to develop far-reaching plans to describe their strategic ambitions, tactics, goals, milestones, and budgets. However, these plans in and of themselves do not create value. Instead, they merely describe the path and the prize.
December 2, 2013 | Authored By: Ronald Blitstein
The critical 20th-century management skill — making things and people fit into systems that execute efficiently — will inevitably be transcended by a different 21st-century critical management skill: creating the conditions in which people of widely varying backgrounds, behaviors, and inclinations can maximize their particular contributions to economic value. This is certainly happening in most firms in developed economies, yet most managers (especially IT managers) have not yet come to grips with it. With this Executive Report, we move away from our usual format and revisit an "ahead of the curve" Council Opinion by the Cutter Business Technology Council, which highlights what has now become a major corporate movement.
Assertion 191: The current mode of flat-rate pricing for wired and wireless data communications discourages space-efficient software, encourages unlimited consumption, and is unsustainable. Rising capital and operating expenses to keep pace with increasing demand will force carrier pricing upward. Simultaneously, customers will tire of subsidizing peak users, pressuring prices downward. A pay-per-use model can address both issues.