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Sitting passively and watching, as the information is rationed out, is no longer a satisfactory experience For some idea about what streaming media might do to change the paradigm, consider the PointCast network (now infogate), which was once the doyen of the media industry Using proprietary technology and networks, PointCast delivered a personalized newspaper to the desktop Unlike a newspaper, however, the visual experience was similar to one of the cable infochannels, like MSNBC There was moving video, with ticker tape scrolling banners and side bar graphics Although horrendously expensive, in terms of the percentage of corporate bandwidth the system required to operate, when bandwidth was not plentiful anyway, PointCast nevertheless showed the way forward for the streaming media industry In many respects, it was the inspiration for much of the subsequent streaming media technology development The key to PointCast was personalization and localization.

boost asset utilization, more and more companies are using external partners to execute some or all of their make activities, such as production, testing, certification, and packaging. This requires sharing performance objectives and processes across this extended network. There are four principles for process excellence in make:

EXHIBIT 6-5

You could receive active alerts on breaking news of interest to you, by keyword For example, you could set the system up to alert you with news of your.

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Focus on business priorities. All make scheduling decisions should integrate customer and market priorities. Your company s business managers should provide these priorities as formally defined business rules. Give priority to key accounts and higher-margin products when resources and production capacity are limited. Aim for speed and flexibility, not just low costs. Reduce cycle times and inventory levels with demand-pull and other lean manufacturing techniques. For example, when time or cost prohibits making customized products, finish products to a generic level and only finalize them on receipt of a customer order. Speed and flexibility require almost real-time visibility. Timely and accurate information on key areas, such as order status, production output, line stoppages, quality performance, and inventory levels, is needed to support rapid adjustments to the production schedule. Set and monitor quality standards. Capture and review quality information at each step of the production process based on preset standards. Timely data on quality must be accessible to everyone involved in manufacturing activities and then analyzed using a structured approach such as Six Sigma. This focus on quality should cover the whole product life cycle. Products should be traceable at the lot and unit levels to ensure that the source of quality problems can be identified and corrected. Synchronize all manufacturing activities. Provide information on production schedules, consumption, and inventory levels to suppliers so that they can better monitor and respond to demand. Define and agree on rules to guide supplier decision making for replenishment. To ensure that production schedules are both feasible and accurate, production rules, information, and performance data need to be managed; this requires defining and maintaining formalized processes and accountabilities both internally and with supply partners.

Recall that Cisco does not have debt or preferred stock outstanding, which makes the calculation of Cisco s WACC relatively easy. Cisco s WACC is its cost of equity, which we calculate under the cost of equity section above, to be 10.04 percent. Cisco is a high-tech firm in a quickly changing industry where obsolescence is a major concern. Cisco s WACC is considerably higher than the WACC for ConEd, a regulated company in the stodgy utility industry. As can be seen by these two examples, the discounting mechanism is the way that the capital asset pricing model introduces risk differences into valuing a stock.

IBM stock s going above $120, or with a storm alert for your home town. Information was drawn from reputable and leading content providers, including some of the more respected newspapers and television news networks. The beauty of the system was that the information could follow you, passing your alerts and news via your cell phone, pager, e-mail, or ICQ* account, if you were away from the desktop. Infogate, the successor to PointCast, is based on open Internet standards, unlike its ancestor. With seven years of development behind it and with three million downloads, the new infogate system is worthy of examination, as a taste of another way of presenting information to busy people who don t have time to sit around and watch and wait. This chapter will show that streaming media will be watched more than television and for many more compelling reasons. It will form a pervasive part of our everyday living and help us conquer the information glut we all must face.

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