Effective Next-generation WAN Architecture

Effective Next-generation WAN Architecture WAN Architecture Get robust, scalable, and easy-to-use management tools that can handle the complexity of your multiservice and packet voice network.   WAN provides extensive, reliable, and scalable element management capabilities to help you rapidly deploy and manage services. The high-performance carrier-class element and network management product is deployed worldwide in some of the largest service provider networks. It can operate as a standalone system or can be integrated as an element using its northbound interfaces for highly efficient flow-through operations Enhanced operator workflow and usability simplify configuration, fault monitoring, and troubleshooting operations. The enterprise business is changing as new types of payroll systems.. As the number of branches continues to increase, the reliable and secure delivery of these evolving services demands a network that can similarly evolve to meet these demands and enable business success. IT professionals require higher network performance, scalability, availability, security, and service capabilities. The Branch-WAN payroll system architecture is developed to address these key areas of customer concerns. To meet these requirements, the Branch-WAN payroll system architecture features scalable and resilient network infrastructure, integrated security, wireless, and payroll system intelligence to provide seamless service capabilities that include Unified Communication, media collaboration, and data/Web 2.0. Architecture This is dedicated to delivering solutions that meet and exceed customers business and technology requirements by integrating best technologies, services, and platforms. The WAN Payroll system architecture is part of a comprehensive approach to providing an end-to-end enterprise network architecture. This model is known as Places in the Network architecture. The architecture addresses the differing requirements for systems design and deployment in the three principal network areas: the campus, the data center, Internet edge, and the WAN. See Figure 1 Figure 1: Architecture When discussing an enterprise network, it is important to consider that most networks are built from a discreet set of interconnected, architectural elements-each of which has its own requirements. A branch office, for example, may not have the same scalability requirements as a data center, but has a greater need for reduced form-factor devices with high-value integrated services. The typical corporate campus network offers users high speed and secure network connectivity, Unified Communication services, wireless services, and access to corporate payroll systems and databases. A well-engineered network must offer workers at branch sites the same network services as campus workers, to maximize productivity and ensure business objectives are met. The Branch-WAN payroll system architecture offers an end-to- end system design that delivers a flexible, scalable, and secure network that supports advanced network services for branch office workers. Figure 2: WAN Payroll system architecture (Frame work)   Ã‚   The WAN payroll system architecture shown in Figure 2 has the following layers: †¢Network Infrastructure-The foundation that provides routing, switching, quality-of-service (QoS), high availability, and other functionalities to ensure that the network is scalable, flexible, and resilient. †¢Integrated Security-This layer extends the corporate security policy to the branch, providing network infrastructure protection, secure communication, threat mitigation, and network monitoring across both the Branch and WAN PINs. †¢Wireless-this layer provides user network connectivity anywhere within the enterprise, giving employees greater flexibility, and increased productivity. †¢Payroll system Intelligence-this layer provides various payroll system optimization techniques using optimization (i.e., TCP flow optimization, data redundancy elimination) and control for payroll system classification and prioritization using QoS. This optimizes use of the WAN bandwidth and, enables branch users to access the same payroll systems as campus users, with similar user experience. †¢Management-this layer provides the ability to easily provision and monitor the network. With these layers, it is imperative that unified communication (i.e., Unified Communication), Media Collaboration (i.e., Tele presence, IP Video Surveillance, Desktop Video, and Digital Media Systems), and Data Web 2.0 (i.e., collaboration payroll systems) work seamlessly across the Branch-WAN solution. Technologies Considered Types: There are number of WAN technologies like point to point connection, circuit switching and packet switching. The WAN communication which is carried over a leased line is called point to point connection. In a point to point network the message from the customers end is traveled to the remote user via an ISP. Circuit switching is the data communication which is stared when there is need to communicate and it is terminated afterwards. It is like a telephone call. When the two users arte connected and identified, the data is transferred in other words voice is transferred. When the transmission of the data is complete the call is disconnected again. Packet switching data network is a WAN technology in which the network of the user is established in the carriers system. The examples of packet switching network include asynchronous transfer mode (ATM), switched multi megabyte data services (SMDS) and frame relay. Optimization The purpose of WAN optimization is to eliminate the flaws in the packet data transfer in shared WAN systems. There are many techniques of optimizing the WAN technology. These optimization techniques include duplication, compression, cashing, protocol spoofing, traffic shaping, equalizing, connection limits and simple rate limits. The process of duplication sends a reference of the actual data, this helps in preventing from data redundancy. In order to present data patterns in an efficient manner compression is used. The process of caching reduces the bandwidth up to 30%. The multiple requests are tied in one bundle using protocol spoofing. Traffic shaping controls the amount of data handling and also monitors and guides the data traffic. When the data is sent according to the priority of the data usage it is known as equalizing. Connection limit averts from the access grid locks in access points and routers due to the lack of service or peer to peer connection. Simple rate limits the users from getting more than the data which has been fixed for their use. The purport of WAN optimization is to overcome the difficulties such as expensive bandwidth and to decrease the users experience time. The scalability of WAN is nowadays an important consideration and hence WAN optimization is used to target such issues as well. The typical small branch design includes a 1.5 Mbps Ethernet private WAN connection. The router terminates the VPN and routing from the central site and implements QoS policy. The router also hosts the following integrated services: †¢Security (Firewall, IPS) †¢Unified Communications (SRST, FXO / FXS ports) †¢Payroll system intelligence The branch also includes a Layer-2 access switch with the following key features: †¢Power-over-Ethernet (PoE) †¢DHCP snooping †¢Spanning tree †¢Class-of-Service (CoS) on access ports †¢QoS †¢Port security †¢Dynamic Address Repayroll system architecture Protocol (ARP) Inspection Wireless LAN may be implemented with a router module or standalone controller/switch. New Issues The key to an effective next-generation WAN architecture? Match technologies and services to interconnection requirements. Herewith a blueprint: Data center-to-data center connectivity: Data center interconnectivity requires high-capacity, low latency links. Although multiprotocol label-switching (MPLS) can do the trick, its often an expensive solution. Telecom architects are increasingly turning to solutions such as carrier Ethernet (either point-to-point or virtual private LAN service, VPLS), or dark fiber or wavelength services. Seventy-one percent of organizations will be deploying some form of carrier Ethernet by the end of 2010, typically for data center-to-data center connectivity. Why? Three reasons: First is cost. On a per-megabit-per-second basis, carrier Ethernet can run 25% to 50% lower than other technologies. Second is bandwidth: with Carrier Ethernet, users are able to procure up to 10Gbps of bandwidth (the equivalent of 2.5 OC-768 circuits). As a result, as bandwidth requirements increase, carrier Ethernet becomes more appealing. Finally, theres the ease of deployment and management. Users report that carrier Ethernet is straightforward to install, and performs reliably. Right off the bat, it worked like a charm, says the CIO of a midsized professional services firm. Data center-to-branch, and branch-to-branch, connectivity: Most organizations (80%) have deployed MPLS, and plan to continue using it for site-to-site connectivity (at least for midsized-to-large sites). Some firms mostly leading-edge organizations are also looking at rolling out carrier Ethernet for the core WAN. The primary challenge? Availability. Carrier Ethernet isnt as widely-available as MPLS. Remote-site and micro branch connectivity: For smaller sites, companies are exploring a range of connectivity options. An Internet VPN is one approach (and one thats increasingly common). A more innovative approach is to deploy 4G wireless technologies, either direct to the router or to each individual employee. Again, the challenge here is availability: Most carriers are just beginning to roll out broadband wireless (in the U.S. at least). Another problem is capacity: Carriers havent designed their networks for use as wired-WAN replacements. References: en.wikipedia.org/wiki/Application_architecture apparchguide.codeplex.com/ www.amazon.com/PatternsApplication-Architecture/0321127420

Blue Crabs :: essays research papers

The scientific name given to the blue crab was derived from Latin and Greek: Calli, beautiful; nectes, swimmer; and sapidus, savory. Thus, a literal transition might be the beautiful savory swimmer.   Ã‚  Ã‚  Ã‚  Ã‚  The blue crab is an important and interesting species. The blue crab is a species whose life history involves a complex cycle of planktonic, nektonic, and benthic stages which occur throughout the marine environment in a variety of habitats. The blue crab is one of the more abundant estuarine invertebrates and supports important commercial and recreational fisheries along the Atlantic and Gulf coasts. The blue crab plays an important role in the marine food web, providing prey for many species and a predator on other species. The blue crab is a highly prized commodity to consumers.   Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  Eight species of Callinectes have been documented in the Gulf of Mexico: C. bocourti, C. danae, C. ornatus, C. exasperatus, C. marginatus, C. similis and C. rathbunae, and Callinectes sapidus.   Ã‚  Ã‚  Ã‚  Ã‚  The original range of the blue crab is from Nova Scotia and throughout the Gulf of Mexico to northern Argentina. The blue crab is rarely found north of Cape Cod, but has been recorded in Maine and Nova Scotia. The blue crab has been introduced into Europe, North Africa, and Southwest Asia. Introductions into the Mediterranean Sea and surrounding waters have produced breeding populations whereas others were probably temporary occurrences. The blue crab also has been introduced into Japan.   Ã‚  Ã‚  Ã‚  Ã‚  Blue crabs are one of the most common marine invertebrates and are generally abundant throughout the oceans. Peak abundance of adult crabs occurs during the warmer months. During winter, crabs are found in areas of tidal exchange in the lower estuary. Juvenile blue crabs are most abundant in waters of low to intermediate salinity during the winter months.   Ã‚  Ã‚  Ã‚  Ã‚  Males become sexually mature at the 18 or 19th molt but may continue to grow and molt an additional 3-4 times thereafter. Female crabs were initially thought to rarely, if ever, molt again following their mature molt. However, mature females undergoing a second molt have been verified.

Link Manufacturing Process and Product Life Cycles

133 Link manufacturing process and product life cycles Focusing on the process gives a new dimension to strategy Robert H. Hayes and Steven C. Wheelwright Although the product life cycle concept may have value for managers, its emphasis on marketing can make it inadequate for strategic planners. These authors point out that using a process life cycle can help a company choose among its various manufacturing and marketing options. Using the concept of a â€Å"product-process matrix,† they show how a company's position reflects its weaknesses and strengths, and they discuss the implications for corporate strategy. Mr. Hayes is professor of business administration at the Harvard Business School. He is currently serving as faculty chairman of and teaching at Harvard's Senior Managers Program in Vevcy, Switzerland. One of his previous articles in HBR is â€Å"How Should You Organize Manufacturing? † (coauthor, Roger W. Schmenner, JanuaryFchruary 1978). Mr. Wheelwright is associate professor of business administration at the Harvard Business School. He is currently teaching in the MBA program and is faculty chairman of Harvard's executive program on Manufacturing in Corporate Strategy. One of his previous HBR articles is â€Å"Corporate Forecasting: Promise and Reality,† [coauthor, Darral G. Clarke, NovemberDecember 1976). The regularity of the growth cyeles of living organisms has always fascinated thoughtful observers and has invited a variety of attempts to apply the same principles—of a predictable sequence of rapid growth followed by maturation, decline, and death-to companies and selected industries. One such concept, known as the â€Å"product life cycle/' has been studied in a wide range of organizational settings. However, there are sufficient opposing theories to raise the doubts of people like N. K. Dhalla and S. Yuspeh, who argued in these same pages a few years ago that businessmen should forget the product life cycle concept. Irrespective of whether the product life cycle pattern is a general rule or holds only for specific cases, it does provide a useful and provocative framework for thinking about the growth and development of a new p roduct, a company, or an entire industry. One of the major shortcomings of this approach, however, is that it concentrates on the marketing implieations of the life cycle pattern. In so doing, it implies that other aspects of the business and industry environment move in concert with the market life cycle. While such a view may help one to think back on the kinds of ehanges that occur in different industries, an individual company will often find it too simplistic for use in its strategic planning. In fact, the concept may even be misleading in strategic planning. In this article we suggest that separating the product life cycle concept from a related but distinct phenomenon that we will call the â€Å"process life I TJie Product Life Cycle and Internationa! Trade. Louis T. Wells, |r. , ed. ICambridge, Mass. ; HarvaiiJ University Press, 1D71I, im example. proviJcs evidence from a number of industries that argues for broad application of this concept, 2. N. K. Dhalla and S. Yuspirh, â€Å"Forget the Priidutt Life Cycle Cnni;epU† HBR I3nuary-February 197(1, p. 101. 134 Harvard Business Review January-February 1979 cycle† facilitates the understanding of the strategic options available to a company, particularly with regard to its manufacturing function. The product-process matrix The process life cycle has heen attracting increasing attention from husiness managers and researchers over the past several years. ^ Just as a product and market pass through a series of major stages, so does the production process used in the manufacture of that product. The process evolution typically hegins with a â€Å"fluid† process—one that is highly flexible, hut not very cost efficient—and proceeds toward increasing standardization, mechanization, and automation. This evolution culminates in a â€Å"systemic process† that is very efficient hut much more capital intensive, nterrelated, and hence less flexible than the original fluid process. Using a product-process matrix, Exhibit I suggests one way in which the interaction of both the product and the process life cycle stages can he represented. The rows of this matrix represent the major stages through whieh a production process tends to pass in going from the fluid form in the top row to the sys temic form in the bottom row. The columns represent the product life cycle phases, going from the great variety associated with startup on the left-hand side to standardized commodity products on the right-hand side. Diagonal position A company [or a husiness unit within a diversified company) can be characterized as occupying a particular region in the matrix, determined by the stage of the product life cycle and its choice of production process for that product. Some simple examples may clarify this. Typical of a company positioned in the upper left-hand comer is a commercial printer. In such a company, each job is unique and a jumbled flow or job shop process is usually selected as being most effective in meeting those product requirements. In such a job shop, jobs arrive in different forms and require different tasks, and thus the equipment tends to be relatively general purpose. Also, that equipment is seldom used at ioo% capacity, the workers typically have a wide range of production skills, and each joh takes much longer to go through the plant than the lahor hours required by that job. Further down the diagonal in this matrix, the manufacturer of heavy equipment usually chooses a production structure characterized as a â€Å"disconnected line flow† process. Although the company may make a numher of products (a customer may even be able to order a somewhat customized unit), economies of scale in manufacturing usually lead such companies to offer several hasic models with a variety of options. This enables manufacturing to move from a job shop to a flow pattern in which batches of a given model proceed irregularly through a series of work stations, or possihly even a lowvolume assembly line. Even further down the diagonal, for a product like automobiles or major home appliances, a company will generally choose to ake only a few models and use a relatively mechanized and connected production process, such as a moving assembly line. Such a process matches the product life cycle requirements that the automobile companies must satisfy with the economies availahle from a standardized and automated process. Finally, down in the far right-hand comer of the matrix, one would find refinery operations, such as oil or sugar processing, where the pro duct is a commodity and the process is continuous. Although such operations are highly specialized, inflexible, and capital intensive, their disadvantages are more than offset by the low variable costs arising from a high volume passing through a standardized process. In Exhibit 7, two corners in the matrix are void of industries or individual companies. The upper right-hand comer eharacterizes a commodity product produced by a job-shop process that is simply not economical. Thus there are no companies or industries located in that sector. Similarly, the lower left-hand corner represents a one-of-a-kind product that is made by continuous or very specific processes. Such processes are simply too inflexible for such unique product requirements. Off the diagonal The examples cited thus far have been the more familiar â€Å"diagonal cases,† in which a certain kind of product structure is matehed with its â€Å"natural† process structure. But a company may seek a position 3. For example, William ), Abernathy and Philip L. Townscnd, â€Å"TechnoloRy, Pioductivity, and Process Changes,† in Tachnalo^icdl Forfcoitinj: iind Social Cbange, Volume VII, No. 4, 1975, p. ^79) Abcmathy and lames Ulierback, â€Å"DyQ. mic Model of Process and Product Innovation,† Omega, Volume HI, No. 6, 1975, p. 6i9i Abernathy and Uuerback, â€Å"Innovation and the Evolution of Technology in the Firm,† Harvard Business School Working P. iper |HBS 7S->fiR, Revised |unc 197^!. Process life cycles 135 Exhibit I Matching major stages of product and process life cycles Product structure Product life cycle stage I Low volume-low standardization, on e of a kind Multiple products low volume Few major products higher volume IV High volume-high standardization. commodity products Process structure Process life cycle stage Jumbled flow (job shop) Commercial printer Disconnected line Mow (batch) Heavy equipment Connected line flow (assembly line) Automobile assembly IV Continuous flow off the diagonal instead of right on it, to its competitive advantage. Rolls-Royce Ltd. still makes a limited product line of motor cars using a process that is more like a job shop than an assembly line. A company that allows itself to drift from the diagonal without understanding the likely implications of such a shift is asking for trouhle. This is apparently the case with several companies in the factory housing industry that allowed their manufacturing operations to become too capital intensive and too de- 136 Harvard Business Review January-February 1979 pendent on stable, high-volume production in the early 1970s. As one might expect, when a company moves too far away from the diagonal, it hecomes increasingly dissimilar from its competitors. This may or may not, depending on its success in achieving focus and exploiting the advantages of its niche, make it more vulnerable to attack. Coordinating marketing and manufacturing may become more difficult as the two areas confront increasingly different opportunities and pressures. Not infrequently, companies find that either inadvertently or by conscious choice they are at positions on the matrix very dissimilar from those of their competitors and must consider drastic remedial action. Most small companies that enter a mature industry start off this way, of course, which provides one explanation of both the strengths and the weaknesses of their situation. One example of a company's matching its movements on these two dimensions with changes in its industry is that of Zenith Radio Corporation in the mid-1960s. Zenith had generally followed a strategy of maintaining a high degree of flexibility in its manufacturing facilities for color television receivers. We would characterize this process structure at that time as being stage 2. When planning additional capacity for color TV manufacturing in 1966 [during the height of the rapid growth in the market), however. Zenith chose to expand production capacity in a way that represented a clear move down the process dimension, toward the matrix diagonal, by consolidating color TV assembly in two large plants. One of these was in a relatively low-cost labor area in the United States. While Zenith continued to have facilities that were more flexible than those of other companies in the industry, this decision reflected corporate management's assessment of the need to stay within range of the industry on tbe process dimension so that its excellent marketing strategy would not be constrained by inefficient manufacturing. It is interesting that seven years later Zenith made a similar decision to keep all of its production of color television chasses in the United States, rather than lose the flexibility and incur the costs of moving production to the Far East. This decision, in conjunction with others made in the past five years, is now being called into question. Using our terminology. Zenith again finds itself too far above the diagonal, in comparison with its large, primarily Japanese, competitors, most of whom have mechanized their production processes, positioned them in low-wage countries, and embarked on other costreduction programs. Incorporating this additional dimension into strategic planning encourages more creative thinking about organizational competence and competitive advantage. It also can lead to more informed predictions about the changes that are likely to occur in a particular industry and to consideration of the strategies that might be followed in responding to such charges. Finally, it provides a natural way to involve manufacturing managers in the planning process so that they can relate their opportunities and decisions more effectively with marketing strategy and corporate goals. The experience of the late 1960s and early 1970s suggests that major competitive advantages can accrue to companies that are able to integrate their manufacturing and marketing organization with a common strategy. ^ Using the concept We will explore three issues that follow from the product-process life cycle: [1) the concept of distinctive competence, [2) the management implications of selecting a particular product-process combination, considering the competition, and |3) the organizing of different operating units so that they can specialize on separate portions of the total manufacturing task while still maintaining overall coordination. Distinctive competence Most companies like to think of themselves as being particularly good relative to their competitors in certain areas, and they try to avoid competition in others. Their objective is to guard this distinctive competence against outside attacks or internal aimlessncss and to exploit it where possible. From time to time, unfortunately, management becomes preoccupied with marketing concerns and loses sight of the value of manufacturing abilities. When this happens, it thinks about strategy in terms only of the product and market dimension within a product life cycle context. In effect, management concentrates resources and planning efforts on a relatively narrow column of the matrix shown in Exhibit 1 on page r35. 4. See â€Å"Manufacturing—Missing Link in Corporate Stiatcgy,† by Wickham Skinner, HBR May-June 1969, p. i]6. Process life cycles 137 Exhibit II Expanded product-process matrix Product structure Product lite cycle stage III Low volume —low standardization, one of a kind Process structure Process life cycle stage Multiple products low volume Few major products higher volume IV High volume-fiigh standardization. commodity products Key management tasks Flexibilityquality †¢ Fast reaction †¢ Loading plant, estimating capacity †¢Estimating costs and delivery times †¢ Breaking bottlenecks †¢ Order tracing and expediting †¢ Systematizing diverse elements †¢ Developing standards and methods, improvement †¢ Balancing process stages †¢ Managing large, specialized, and complex operations †¢ Meeling material requirements †¢ Running equipment at peak efficiency †¢ Timing expansion and technological change †¢ Raising required capital Jumbled flow (lobshop) Disconnected line flow (batch) Connected line flow (assembly line) IV Continuous flow Hone Dependabilitycost Flexibility-quality Dependability-cosi dominant competitive mode †¢ Custom design †¢ General purpose †¢ High margins †¢ †¢ †¢ †¢ Custom design Ouality control Service High margins †¢ Standardized design †¢ Volume manufacturing †¢ Finished goods inventory †¢ Distribution †¢ Backup suppliers †¢ Vertical integration †¢ Long runs †¢ Specialized equipment and processes †¢ Economies of scale †¢ Standardized material The advantage of the two-dimensional point of view is that it permits a company to be more precise about what its distinctive competence really is and to concentrate its attentions on a restricted set of process decisions and alternatives, as well as a re- stricted set of marketing alternatives. Real focus is maintained only when the emphasis is on a single â€Å"patch† in the matrix—a process focus as well as a product or market focus. As suggested by Wickham Skinner, narrowing the focus of the business unit's 138 Harvard Business Review January-February 1979 ctivities and the supporting manufacturing plant's activities may greatly increase the chance of success for the organization/' Thinking about both process and product dimensions can affect the way a company defines its â€Å"product. † For example, we recently explored the case of a specialized manufacturer of printed circuit boards. Management's initial assessment of its position on the m. atrix was that it was producing a lowvolume, one-of-a-kind product using a highly connected assembly line process. (This would place it in the lower left comer of the matrix. On further reflection, however, management decided that while the company specialized in small production batches, the â€Å"product† it really was offering was a design capability for special purpose circuit boards. In a sense, then, it was mass producing designs rather than boards. Hence, the company was not far off the diagonal after all. This knowledge of the company's distinctive competence was helpful to management as it considered different projects and decisions, only some of which were supportive of the company's actual position on the matrix. Effects of position As a company undertakes different combinations of product and process, management problems change. It is the interaction between these two that determines which tasks will be critical for a given company or industry. Along the process structure dimension, for example, the key competitive advantage of a jumbled flow operation is its flexibility to both product and volume changes. As one moves toward more standardized processes, the competitive emphasis generally shifts from flexibility and quality (measured in terms of product specialization) to reliability, predictability, and cost. A similar sequence of competitive emphases occurs as a company moves along the product structure dimension. These movements in priorities are illustrated in Exhibit 11 For a given product structure, a company whose competitive emphasis is on quality or new product development would choose a much more flexible production operation than would a competitor who has the same product structure but who follows a cost-minimizing strategy. Alternatively, a company that chooses a given process structure reinforces the characteristics of that structure by adopting the corresponding product structure. The former approach 5. â€Å"The Focused Factory,† HBR May-June 1974, p. 113. 6. Robert H. Hayes and Roger W. Schmenner, â€Å"How Should You Organize Manufacturing? † HBR January-February iy78, p. 105. positions the company above the diagonal, while the latter positions it somewhere along it. A company's location on the matrix should take into account its traditional orientation. Many companies tend to be relatively aggressive along the dimension—product or process-where they feel most competent and take the other dimension as â€Å"given† by the industry and environment. For example, a marketing-oriented company seeking to be responsive to the needs of a given market is more likely to emphasize flexibility and quality than tbe manufacturing-oriented company that seeks to mold the market to its cost or process leadership. An example of these two competitive approaches in the electric motor industry is provided by the contrast between Reliance Electric and Emerson Electric. Reliance, on the one hand, has apparently chosen production processes that place it above the diagonal for a given product and market, and the company emphasizes product customizing and performance. Emerson, on the other hand, tends to position itself below the diagonal and emphasizes cost reduction. As a result of this difference in emphasis, the majority of Reliance's products are in the upper left quadrant, while Emerson's products tend to be in the lower right quadrant. Even where the two companies' product lines overlap. Reliance is likely to use a more fluid process for that product, while Emerson is more likely to use a standardized process. Eaeh company has sought to develop a set of competitive skills in manufacturing and marketing that will make it more effective within its selected quadrants. Concentrating on the upper left versus the lower right quadrant has many additional implications for a company. The management that chooses to compete primarily in the upper left has to decide when to drop or abandon a product or market, while for the management choosing to compete in the lower right a major decision is when to eater the market. In the latter case, the company can watch the market develop and does not have as much need for flexibility as do companies that position themselves in the upper left, since product and market changes typically occur less frequently during the later phases of the product life cycle. Such thinking about both product and process expertise is particularly useful in selecting the match of these two dimensions for a new product. Those familiar with the digital watch industry may recall that in the early 1970s Texas Instruments introduced a jewelry line digital watch. This product represented a matrix combination in the upper left-hand quadrant, as shown in Exhibit U. Unfortunately, this line Process life cycles 139 of watches was disappointing to Texas Instruments, in terms of both volume and profitability. Early in 1976, therefore, TI introduced a digital watch selling for $19. 95. With only one electronic module and a connected line flow production process, this watch represented a combination of product and process further down the diagonal and much more in keeping with TI's traditional strengths and emphases. Organizing operations If management considers the process structure dimension of organizational competence and strategy, it can usually focus its operating units much more effectively on their individual tasks. For example, many companies face the problem of how to organize production of spare parts for their primary products. While increasing volume of the primary products may have caused the company to move down the diagonal, the follow-on demand for spare parts may require a combination of product and process structures more toward the upper left-hand corner of the matrix. There are many more items to be manufactured, each in smaller volume, and the appropriate process tends to be more flexible than may be the case for the primary product. To accomodate the specific requirements of spare parts production, a cohipany might develop a separate facility for them or simply separate their production within the same facility. Probably the least appropriate approach is to leave such production undifferentiated from the production of the basic product, since this would require the plant to span too broad a range of both product and process, making it less efficient and less effective for both categories of product. The choice of product and process structures will determine the kind of manufacturing problems that will be important for management. Some of the key tasks related to a particular process structure are indicated on the right side of Exhibit U. Recognizing the impact that the company's position on the matrix has on these important tasks will often suggest changes in various aspects of the policies and procedures the company uses in managing its manufacturing function, particularly in its manufacturing control system. Also, measures used to monitor and evaluate the company's manufacturing performance must reflect the matrix position selected if such measures are to be both useful and consistent with the corporate goals and strategy. Such a task-oriented analysis might help a company avoid the loss of control over manufacturing that often results when a standard set of control mechanisms is applied to all products and processes. It also suggests the need for different types of management skills [and managers], depending on the company's major manufacturing tasks and dominant competitive modes. While a fairly narrow focus may be required for success in any single product market, companies that are large enough can [and do) effectively produce multiple products in multiple markets. These are often in different stages of the product life cycle. However, for such an operation to be successful, a company must separate and organize its manufacturing facilities to best meet the needs of each product and then develop sales volumes that are large enough to make those manufacturing units competitive. An example of separating a company's total manufacturing capability into specialized units is provided by the Lynchburg Foundry, a wholly owned subsidiary of the Mead Corporation. This foundry has five plants in Virginia. As Exhibit U shows, these plants represent different positions on the matrix. One plant is a job shop, making mostly one-of-akind products. Two plants use a decoupled batch process and make several major products. A fourth plant is a paced assembly line operation that makes only a few products, mainly for the automative market. The fifth plant is a highly automated pipe plant, making what is largely a commodity item. While the basic technology is somewhat different in each plant, there are many similarities. However, the production layout, the manufacturing processes, and the control systems are very different. This company chose to design its plants so that each would meet the needs of a specific segment of the market in the most competitive manner. Its success would suggest that this has been an effective way to match manufacturing capabilities with market demand. Companies that specialize their operating units according to the needs of specific, narrowly defined patches on the matrix will often encounter problems in integrating those units into a coordinated whole. A recent article suggested that a company can be most successful by organizing its manufacturing function around either a product-market focus or a process focus. * That is, individual units will either manage themselves relatively autonomously, responding directly to the needs of the markets they serve, or they will be divided according to process stages (for example, fabrication, subassembly, and final assembly), all coordinated by a central staff. Companies in the major materials industriessteel companies and oil companies, for exampleprovide classic examples of process-organized manu- 140 Harvard Business Review January-February 1979 facturing organizations. Most companies that broaden the span of their process through vertical integration tend to adopt such an organzation, at least initially. Then again, companies that adopt a product- or market-oriented organization in manufacturing tend to have a strong market orientation and are unwilling to accept the organizational rigidity and lengthened response time that usually accompany centralized coordination. Most companies in the packaging industry provide examples of such product- and market-focused manufacturing organizations. Regional plants that serve geographical market areas are set up to reduce transportation costs and provide better response to market requirements. A number of companies that historically have organized themselves around products or markets have found that, as their products matured and as they have moved to become more vertically integrated, a conflict has arisen between their original productorganized manufacturing facilities and the needs of their process-oriented internal supply units. As the competitive emphasis has shifted toward cost, companies moving along the diagonal have tended to evolve from a product-oriented manufacturing organization to a process-oriented one. However, at some point, such companies often discover that their operations have hecome so complex with increased volume and increased stages of inhouse production that they defy centralized coordination and management must revert to a more product-oriented organization within a divisionalized structure. ct line with a manufacturing system—a set of people, plants, equipment, technology, policies, and control procedures—that will permit a relatively high degree of flexibility and a relatively low capital intensity? Or should it prefer a system that will permit lower cost production with a loss of some flexibility to change [in products, production volumes, and equipment) and usually a higher degree of capital intensity? This choice will position the company above or below its competito rs along the vertical dimension of our matrix. There are, of course, several dynamic aspects of corporate competitiveness where the concepts of matching the product life cycle with the process life cycle can be applied. In this article, however, we have dealt only with the more static aspects of selecting a position on the matrix. We will discuss in a forthcoming article how a company's position on the product-process matrix might change over time and the traps that it can fall into if the implications of such moves are not carefully evaluated. Strategy implications We can now pull together a number of threads and summarize their implications for corporate strategy. Companies must make a series of interrelated marketing and manufacturing decisions. These choices must be continually reviewed and sometimes changed as the company's products and competitors evolve and mature. A company may choose a product or marketing strategy that gives it a broader or narrower product line than its principal competitors. Such a choice positions it to the left or right of its competitors, along the horizontal dimension of our matrix. Having made this decision, the company has a further choice to make: Should it produce this prod-

Research That Influenced me Most Admission Essay

Roots of Democracy Whether we consider research, art or study, we will see that in any type of intellectual human activities there are two possible impulses: a voluntary desire to reach the result, which is generally independent of any influence, and an order, which can be either paid for or simply imposed upon an individual involved in the activity. The latter type is often thought to be more important, as it provides not only the opportunity for the activity to be organized, but also for the intellectuals to earn their living. Personally I disagree with this opinion and believe that voluntary and independent research, study or any other creative activity are much more important and efficient. To start with, unlike paid research, voluntary activities tend to be more objective. They are independent from financial influence of the ordering party and, thus, can interpret the acquired data freely without being afraid of whether the ordering party likes it or not. Moreover, voluntary activities provide intellectuals with more freedom, as they are not limited by any deadlines. This can give them a possibility to plan their own schedule. Besides, voluntary activities can result in the invention of absolutely innovative technologies because the ideas and imagination of an artist or a researcher are not restricted by the official trends. So, taking all the above mentioned into account, one may say that voluntary research, studies or creative activities are the roots of democracy, as they result in the creation of something truly original and independent from the influence of the funding sources, such as governments or big multinationals and are characterized by the novelty of thought.