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Why did this take so long? Amit believes that by
examining the pace of adoption of technologies by
businesses, it becomes clear that "many had unrealistic
expectations in thinking that profound changes can
happen in merely six months. It took 15 to 20 years
for PCs to be widely adopted by businesses." Also,
Amit thinks it took peer pressure among CEO-types
to accelerate the pace of adoption.
"When they meet each other at big summits or even
at social gatherings, they begin to believe. They see
and listen to the experiences of other CEOs with
a gadget or an idea and say, 'Hmmm, maybe I should
do that, too'," said Amit. "That is often what drives
big changes."
While consumers certainly see e-change in their
lives – be it with shopping on line, booking travel, or
e-banking – it is in the business arena that the change
will continue to burgeon, he said.
Amit sees on the horizon more and more large and
small firms that will be managed through a digital
dashboard. No longer will there be 30-day accounting
or inventory control. This information will be at the
fingertips of executives. It will enable them to be flexible
and responsive to a rapidly changing business
environment. Everyone will trade with everyone else
at any time, which will require both buyer and seller
to know what the state of manufacture and delivery is
instantly.
"Our research suggests that consolidation of databases
within firms is the foundation for enabling collaboration
among firms. The emergence of web
services technologies will eventually facilitate interaction
among complex information systems of firms
which, after overcoming a range of barriers that still
exist, will enhance revenues and reduce costs and
thereby create value."
Amit believes that many of the innovations that will
eventually change how business is conducted in entire
industries are brought to market by entrepreneurs.
FreeMarkets, Inc., which operates business-to-business
online auctions, is a case in point. Yet other innovations
emerge out of collaborations among industry incumbents.
One example Amit provides is Covisent. The
platform, developed by original equipment manufacturers
(OEMs) in the U.S. automotive industry, has
standardized the procurement platform for automotive
parts and changed procurement practices in the entire
industry.
Increased collaboration in the automotive industry,
Amit noted, is also driven by Product Data
Management (PDM) systems, which will enable,
among other things, collaborative designs.
"The introduction of Covisent, along with the growing
use of eAuctions by OEMs, has been painful for all
suppliers and vendors as they had to change how business
is conducted, but it has reduced the transaction
costs and has made the market more efficient," said Amit.
Amit tries to keep his own life efficient. He said he
does his best to refine his travel schedule so he moves
around a lot and then gets to stay at home for longer
periods. He and his wife Ava live in Philadelphia and
have two children. Their son, Amos, is 24 and a first-year
analyst in the technology investment banking
group of a leading investment bank in Northern
California. Their daughter, Karen, 23, starts graduate school
in the fall.
When he travels, as Thornhill noted, he often enjoys fitting
in a mix – either skiing or catamaran sailing or, colleague
Zott said, a good meal with his colleagues.
"Raffi was brought up as a child by parents and grandparents
who had lived a long time in Germany, so he actually
speaks German extremely well, with a Berlin accent, even
though he never lived there," said Zott. "He also appreciates
good German traditions, like 'Kuchen mit Schlagzane' – cake
with whipped cream in the afternoon."
"It is obvious that Raffi enjoys what he does tremendously.
This is why he is so very committed to Wharton, to his
research, teaching, and programs he leads," said Zott.
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