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LUCENTTECHNOLOGIES:DavidW.HoytACHIEVINGTHE“IMPOSSIBLE”BYUSINGPROVISIONINGANDPOSTPONEMENTContent37263134384347575962OpportunityHistoryofLucent5ESSDigitalSwitchTheOriginalProcessLucent’sManufacturingProblemsPostponementRelievingConstraintsProvisioningandParallelProcessingOrganizationalIssuesResultsandConclusionOpportunity1998SaudiArabiaManydigitalswitchesneedtobereplacedY2KcompliantMillionsofdollarsSignificantadditionalbusiness5ESSDigitalSwitch→23-25weeksTresCantos(Spain)→InsufficientCapacityOklahomaCity(US)→DifferentengineeringsystemOvercomecapacityconstraintsImprovedeliverytimeOpportunity1998SaudiArabiaManydigitalswitchesneedtobereplacedY2KcompliantMillionsofdollarsSignificantadditionalbusiness5ESSDigitalSwitch→23-25weeksTresCantos(Spain)→InsufficientCapacityOklahomaCity(US)→DifferentengineeringsystemOvercomecapacityconstraintsImprovedeliverytimeOpportunity1998SaudiArabiaManydigitalswitchesneedtobereplacedY2KcompliantMillionsofdollarsSignificantadditionalbusiness5ESSDigitalSwitch→23-25weeksTresCantos(Spain)→InsufficientCapacityOklahomaCity(US)→DifferentengineeringsystemOvercomecapacityconstraintsImprovedeliverytimeOpportunity1998SaudiArabiaManydigitalswitchesneedtobereplacedY2KcompliantMillionsofdollarsSignificantadditionalbusiness5ESSDigitalSwitch→23-25weeksTresCantos(Spain)→InsufficientCapacityOklahomaCity(US)→DifferentengineeringsystemOvercomecapacityconstraintsImprovedeliverytimeHistoryofLucent1877BellTelephoneCompany1880AT&TLongLine1885AT&T(AmericaTelephoneandTelegraphCompany)1899AmericaBell/BellSystem→AT&T1925BellLaboratories←3%outputofAT&TCommunication/RadioAstronomySemi-conductor/ComputerScienceC/Unix/Telephone/Transistor/DigitalSwitchCommunicationsSatellite/OpticalFiberInformationTheory(Shannon)MonopolyPositioninAmericaandCanadaHistoryofLucent1877BellTelephoneCompany1880AT&TLongLine1885AT&T(AmericaTelephoneandTelegraphCompany)1899AmericaBell/BellSystem→AT&T1925BellLaboratories←3%outputofAT&TCommunication/RadioAstronomySemi-conductor/ComputerScienceC/Unix/Telephone/Transistor/DigitalSwitchCommunicationsSatellite/OpticalFiberInformationTheory(Shannon)MonopolyPositioninAmericaandCanadaHistoryofLucent1877BellTelephoneCompany1880AT&TLongLine1885AT&T(AmericaTelephoneandTelegraphCompany)1899AmericaBell/BellSystem→AT&T1925BellLaboratories←3%outputofAT&TCommunication/RadioAstronomySemi-conductor/ComputerScienceC/Unix/Telephone/Transistor/DigitalSwitchCommunicationsSatellite/OpticalFiberInformationTheory(Shannon)MonopolyPositioninAmericaandCanadaHistoryofLucent1877BellTelephoneCompany1880AT&TLongLine1885AT&T(AmericaTelephoneandTelegraphCompany)1899AmericaBell/BellSystem→AT&T1925BellLaboratories←3%outputofAT&TCommunication/RadioAstronomySemi-conductor/ComputerScienceC/Unix/Telephone/Transistor/DigitalSwitchCommunicationsSatellite/OpticalFiberInformationTheory(Shannon)MonopolyPositioninAmericaandCanadaHistoryofLucent1877BellTelephoneCompany1880AT&TLongLine1885AT&T(AmericaTelephoneandTelegraphCompany)1899AmericaBell/BellSystem→AT&T1925BellLaboratories←3%outputofAT&TCommunication/RadioAstronomySemi-conductor/ComputerScienceC/Unix/Telephone/Transistor/DigitalSwitchCommunicationsSatellite/OpticalFiberInformationTheory(Shannon)MonopolyPositioninAmericaandCanadaHistoryofLucent1984UnitedStatesantitrustlawAT&T(MaBell)and7BabyBellsMarketshare/Profit/R&DExpenseCommunication/Semi-conductor1995Backtothetop1996SeparationAT&T:TelecommunicationServiceLucent:EquipmentManufactureNCR:Computer2005AcquisitionbySBCHistoryofLucent1984UnitedStatesantitrustlawAT&T(MaBell)and7BabyBellsMarketshare/Profit/R&DExpenseCommunication/Semi-conductor1995Backtothetop1996SeparationAT&T:TelecommunicationServiceLucent:EquipmentManufactureNCR:Computer2005AcquisitionbySBCHistoryofLucent1984UnitedStatesantitrustlawAT&T(MaBell)and7BabyBellsMarketshare/Profit/R&DExpenseCommunication/Semi-conductor1995Backtothetop1996SeparationAT&T:TelecommunicationServiceLucent:EquipmentManufactureNCR:Computer2005AcquisitionbySBCHistoryofLucent1984UnitedStatesantitrustlawAT&T(MaBell)and7BabyBellsMarketshare/Profit/R&DExpenseCommunication/Semi-conductor1995Backtothetop1996SeparationAT&T:TelecommunicationServiceLucent:EquipmentManufactureNCR:Computer2005AcquisitionbySBCHistoryofLucent1984UnitedStatesantitrustlawAT&T(MaBell)and7BabyBellsMarketshare/Profit/R&DExpenseCommunication/Semi-conductor1995Backtothetop1996SeparationAT&T:TelecommunicationServiceLucent:EquipmentManufactureNCR:Computer2005AcquisitionbySBCHistoryofLucentLucent→OrderofSprintandMCI1996Listing,90+countries,4unitsNetworkSystems→50%revenuesTheDot-comBubbleMassAccountsReceivables2000CrumbletodustCarlyFiorinaAvayaofLucentBellLabsAlcatel,CISCOHistoryofLucentLucent→OrderofSprintandMCI1996Listing,90+countries,4unitsNetworkSystems→50%revenuesTheDot-comBubbleMassAccountsReceivables2000CrumbletodustCarlyFiorinaAvayaofLucentBellLabsAlcatel,CISCOHistoryofLucentLucent→OrderofSprintandMCI1996Listing,90+countries,4unitsNetworkSystems→50%revenuesTheDot-comBubbleMassAccountsReceivables2000CrumbletodustCarlyFiorinaAvayaofL