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Volume 8, #7_______________________________________________________________ October, 1989
Moving Toward An Account Focus In The Field by Dave Grainger, vice president, U.S. Sales and Services
Message To Sales, Delivered By The Executive Committee At ’Summer Session’
Helping Employees Deal With Changing Business Needs
Proper Use Of Digital Computers, Systems And Networks
Dare To Make A Difference by Jack Smith, senior vice president, Engineering, Manufacturing and Product Marketing
The Importance Of Information Security At Digital by Jim Schweitzer, corporate manager, Information Security
Universities Are Porting Software To Digital’s RISC Workstations
Colby Chandler Nominated For Board Of Directors
Gary Eichhorn Appointed Vice President
Sharon Keillor Named CSS Vice President
Distributed Software Systems Group Formed
The current market environment requires more timely and responsive decision making. Our customers require this, and Digital requires this in order to win more new business.
The most significant element in this direction is the emphasis we are placing on account management to drive our customer focus. This account emphasis also positions us to continue to build the industry focus we have been working towards. We are moving planning and budgeting responsibility as close as possible to our customers, by further empowering our unit managers and large account managers. They will be capable of mobilizing Digital resources to solve customer problems.
Our relentless efforts to destroy red tape will continue, as we work towards simplifying and improving our environment, systems, and processes.
The organization of Digital’s U.S. sales force will be very simple, easy to understand, and will allow the freedom to make adjustments for local or special conditions.
The account will be the basic building block of the Sales organization. A sales unit may consist of one very large account or may consist of many smaller accounts.
The sales account does the basic budgeting for the sales department. Each account or group of accounts will budget expenses, the capital it will use, and the results it will commit to.
Plans must be reviewed and, when satisfactory, be approved. The latter process is the "senior management’s" way of making sure plans make sense.
We will not have many measurements. Primarily, they will be orders, and a way of measuring a return on expense and future investments.
The account sales unit will cover all the geography covered by that company. There will be one budget for each company and investments will be made and returns will be realized in whatever part of the world most appropriate.
The account is the basic budgeting element. Therefore, the sum of account budgets will often exceed the volume of business within a geographic boundary. It is not necessary to evaluate investments within the context of a district or geography.
The accounting system will automatically deliver all the orders, all of the expenses, and all the capital investments incurred by the sales unit in total and by the districts in which they are incurred. These will be reported once a month.
For each six to twelve units, there will be a district. The budget of the district is not the total of all the units in that district but is the cost incurred by the district to supply the services it gives the units and is, therefore, relatively small and can be managed relative to the services given.
In this light, the district continues to play a critical leadership role. The district is responsible for ensuring we make this change; that means helping, coaching, supporting, and assuring the success of each unit. The district will help the units achieve their budgets and offer services and management support, as well as represent Digital when more senior presence is desired.
There will be six to eight sales geographies in the country. These will be groupings of districts. The districts and the geographies will be measured on the obvious measure of the services, help, and training they give, but we will also add up the results of all the units represented in their geographies to see how well these services have done in helping business, morale, enthusiasm, and the competence of the units. The units are very clear and obvious, and these will be important measurements of the districts and geographies.
While we will organize in sales by account, this organization will allow us freedom to do things such as make certain districts aimed at specific industry markets, when this is the obvious thing to do. But we will not claim to organize the entire field by industry.
The U.S. government, managed by Harvey Weiss, and the reseller area, managed by Jay Atlas, continue as specialized geographies with specialized districts. In those cases, the geographies also have a marketing function. Industry Marketing and large account management report to Bob Hughes.
It’s important that we simplify the organization quickly so everyone understands exactlv
how we operate and that we get on with the business. We will rebudget units to reflect this way of organizing and have it all in operating shape early in December and have it instituted the first of the calendar year.
The redoing of the budgets shouldn't be terribly time-consuming because they’re done. However, as each unit balances the expenses with the promised returns, they will undoubtedly face the question of how much more business they get with more investments. In some cases, when they realize what they are investing, they will be much more bold in what they promised in way of return.
We have learned and accomplished a great deal over the last few months, and I am excited about this next step in our direction. It represents significant progress in our continuing goal to simplify our decision-making processes and operating environment, and position our resources as close as possible to our customers.
(This summer over 6.000 Digital sales professionals from North America and some from the Far East went through a three-day intensive training program on the campus of Brown University in Rhode Island. The program was designed to arm the company’s sales people with the most current product knowledge in order to help them work with customers to solve business problems. The following article is based on a speech delivered to Summer Session participants by various members of the Executive Committee.)
The best strategy will work only if the company as a whole has the commitment, support, values and organization necessary to implement it. This means effectively communicating with each other, and working together to satisfy the customer.
Customers are asking for more, and we have to deliver more. This is especially true during times when industry growth is slow, and it feels like resources are less available. Wall Street and industry analysts are expecting us to withdraw, let go of people, cut back. Competitors have stepped up their attacks.
At times like these, we have to be bold and take the offensive. We have spent too much time letting the competition define who we are and what customers need. Now is the time for us to seize the high ground, solve every customer problem, maximize every opportunity, and remember our competitors’ weaknesses, not just their strengths. We are not just seeking to "survive," but to grow, and to lead. With the best products, best people and our financial position, there is no reason we can’t be a $20 billion business in a few years.
For the company to succeed, we must become more customer-focused. Our sales force provides the support to the customer, and the rest of us provide support to them.
We have restructured the sales force to be more account-focused. The new structure of the sales organization will give sales people the authority they need to innovate, take appropriate risks and sell successfully. This means making account teams the basis of our business.
From now on. business starts with the account plan. Every account team and every office will have a plan that they work towards. They propose the investments, manage them, and are accountable for them. They make the decisions, and close the business.
Part of our charge to the sales force today is to entrust you with the ability to set your own goals and have the satisfaction that comes from accomplishing them. Don't wait for the rules to come down from corporate. You are the ones who will be deciding what to do next. And once you’ve decided, it is your responsibility to do it.
To meet our goals, we need the best educated sales force in the industry, and the support of the best specialists. Our sales people need the right support, in the right amount, at the right time. An immediate remedy is our "All Hands on DEC" program. Close to 2000 Digital employees contributed their time and expertise to make this district support program work. Through "All Hands on DEC" we have placed 150 people, on a full-time basis, into Sales as competitive sales specialists, and in telemarketing sales and installed base sales. We estimate the program resulted in $150 million in incremental revenue. "All Hands on DEC" will continue, and will improve as we learn to respond more effectively.
We also are addressing the longer-term issue of support. First, Sales Support will now be managed day-to-day by sales management at the district level, including performance reviews and prioritizing of work. District sales will decide how to allocate support. This year we plan to hire over 1000 sales and sales support personnel. This aggressive hiring program is dependent on the ability of Sales management to recruit internal Digital employees.
Second, budgeting for sales support specialists will be done by the groups that develop products and applications. This allows tighter links between these groups and Sales Support so we have even higher quality products and can ensure solutions that respond to customers’ needs.
This is why we are creating Digital Competency Centers (DCCs) — application-specific solution centers which complement existing resources like Application Centers for Technology and Systems Integration Centers. Sales Support will exist in the DCCs, tied closely to our product, application and systems engineering organizations. With DCCs, we can really do the complete job for the customer.
Two DCCs are already planned — one in New York for the financial services industry, and one in Detroit for discrete manufacturing. Additional facilities are in the works for all of the industry groups.
Our sales people also told us they needed product and competitive training. This Summer Session is a response. Further sessions of Digital University are being planning. The Digital School of Networking was held in Boston in July. Sales Support is scheduled for Q2 this year; and follow-on Digital University programs will be scheduled throughout the year.
Sales people have also asked us to make it easier for them to do business, so they can spend their time selling, not enmeshed in red tape. Here are some of the major issues and what we're doing about them:
Pricing and price books. A major effort is under way to simplify price books, improve their accuracy, and communicate major price and term condition changes well in advance. We have also added many sales administrators in each district to reduce the administrative workload and let sales people have more time for selling.
Product Information Disclosures (PlDs). Our customers need to have a clear understanding of our future products for their planning. That means getting the information directly from the engineers to Sales in a timely manner.
We are doubling our technical support hotlines in Atlanta and Colorado Springs. We are doubling their capacity. We also have created a special government system hotline that is providing fast answers for our sales people who call on government customers. Our goal is to give sales people instant answers so that they can give instant responses to our customers.
Order Processing. We want a simple, one-step, on-line process for price quotes, order placement, and status. Artificial Intelligence (Al) Engineering and the Field are engaged in a high-priority effort to implement a greatly simplified configurator within the next six months. In FY90 you will also see continued expansion of our "Fast Ship" Program and full-scale introduction of electronic data integration (EDI) capability for both suppliers and customers.
Rewards and recognition. We’ve made a number of improvements in this area, including DECATHLON selection on a district instead of an area basis. We are evaluating the inclusion of full credit for International Sales and sales through OEMs for this year's metrics. In addition, we are addressing the need for team recognition, not just at the management level, but at the account/customer level where it really counts and where it absolutely must occur.
Metrics. Measurements must be intended first and foremost for encouraging self-motivation; and secondly, for encouraging motivation between peers. When metrics are out of "sync" with the business goals of the company, they are unacceptable. When metrics are out of "sync" with the values of the company, they are doubly unacceptable.
Our responsibility is to help make sales goals clear and to support the sales effort. Your responsibility is to sell successfully, acting in accordance with the values of the company: honesty, quality, integrity and commitment to the customer.
Our primary goals are to achieve quality in our relationships with customers and quality in our products. We want to produce what customers need, and completely satisfy their expectations before, during and after the sale. Short-term profit and growth come as a result of all of us doing our job the right way.
To succeed, we need to deal with customers on the basis of their long-term goals, making sure every sale delivers the expected value. When we sell our products and services, we also are selling the corporation and all its people. That means acting with complete integrity and clarifying customer expectations in advance in a way that the customer can understand. Finally, it means meeting all commitments once they are made.
When we founded this company, we believed that doing the right thing for the customer would eventually result in the right thing for us. It still works that way.
To explain all the capabilities Digital has to offer, we have to have the best sales force in the industry — the best trained and the most knowledgeable about customers’ needs. In an industry whose products are changing as rapidly as ours, that means a commitment to constant renewal of knowledge and skills — on-going learning to understand our products and strategies.
Our sales people have to be business partners and entrepreneurs, working with customers to help them define their critical needs for the 1990s. Each and every one of you must know your customer, Digital’s products, the competitors’ products, the difference, and how to make use of our internal resources. And each and every one of us must work with you to make that easy.
Our commitment is to put the power in your hands. Your responsibility is to use it effectively. Take the offensive. Solve your customers’ needs and maximize your opportunities. Focus on the weaknesses of the competition and sell against them. Grab industry leadership and extend the lead.
We are confident and enthusiastic about our future. We have the best products, the best people, tremendous financial resources, and magnificent technology.
We’re listening, and we’re responding. With your knowledge of our leadership products and applications, the competition is in trouble.
Digital in the U.S. continues to take a variety of steps to improve workforce planning, and to help employees affected by changes in the company’s business to find and prepare themselves for other career opportunities within the company.
"Change is a normal part of our business," explains Jack Smith, senior vice president, Engineering, Manufacturing and Product Marketing. "We have to be in constant transition, and we have to continue to manage it effectively.
"Right now, we have to continue to streamline our overhead functions so we can continue to grow our direct revenue-producing resources aggressively. And, at the same time, we need to invest much more heavily in software development. We’re making these transition moves so we’ll be in a better position to grow."
Don Hunt and Annette Albright have been leading workforce planning efforts in Manufacturing. Engineering and Marketing (MEM); and Tom Colatosti and Sally Cunningham in the Field, with their respective committees. In addition, these four people come together in a Cross Organization Task Force that includes Rob Ayres, senior group Personnel manager for Corporate Operations and chair of the Task Force; Ron Glover, senior attorney; Dave Grainger, vice president, U.S. Sales and Services; Bill Hanson, vice president, Manufacturing Operations; Dom LaCava, vice president, Low End Systems; Bruce Ryan, Controller; and Ted Sares, corporate manager of Transition. From a cross-organizational level, they look at these issues on a U.S.-wide basis, share what they have learned and deal with administrative barriers that might otherwise hamper such efforts.
"Digital always has had workforce imbalances — too many people in some places and too few in others," explains Tom Colatosti. "This is because new technology continually affects the work that needs to be done. Such imbalances can be resolved to a great degree by the movement of people, which is what we’re focusing on now."
Programs to help identified employees deal with changes in the business typically start at the local level on a business-by-business basis. As the various functions and sites have become more integrated and interdependent, these programs now need more cross-functional cooperation to be fully effective.
"We continue to take a multi-dimensional approach to this issue, with employee choice as the cornerstone," observes Ted Sares. "We continually evaluate the resources of the company on a business-by-business basis to determine if there are any imbalances in the supply, skills and/or locations of available employees. We have a number of programs designed to move available employees into other jobs in Digital or into new work, to help those employees who choose to leave Digital, and to take advantage of normal turnover through attrition. Each organization may choose to use a different selection of options. In highly selective cases, subject to a stringent approval process, including the Cross Organization Task Force, financial support may be considered to provide a ’bridge’ for employees seeking outplacement."
"We began tracking these efforts throughout the U.S. in July 1988," notes Annette Albright. "Since then we have helped over 900 employees find new jobs within Digital. These people were from both Engineering and Manufacturing. We’ve dealt with some product cancellations in engineering groups and had an effort in Salem, N.H., starting last November. Also, there have been similar but smaller efforts in other places."
Last November people at Digital’s Salem, N.H., Computer Systems Manufacturing (CSM) plant were notified that the plant was being rechartered, and Computer Special Systems (previously in several buildings in southern New Hampshire) was to occupy the Salem plant. A voluntary incentive plan is now being offered to about 500 employees, all of whom are still associated with the transition program in Salem. N.H., and its associated business units in Merrimack, N.H., and Marlboro, Franklin, Westford and Westminster, Mass. It provides an allowance, based on years of service, and other benefits, for a limited time, to help employees who choose to leave Digital.
"From dealing with plants that have gone through changes like this in the past, we have gained understanding and experience in dealing with the effect this can have on people’s careers," says Annette. "We don’t have all the answers. It’s never easy. But we always try to handle these situations as sensitively and competently as possible. Our goal is to provide affected employees with a wide variety of choices."
"Digital has been going through these kinds of changes for more than 20 years," explains Don Hunt. "At first, all of Engineering and Manufacturing was in the Maynard Mill. Then we shifted much of Manufacturing out of the Mill to places like Westfield and Westminster, Massachusetts. A number of people chose to move to the new plants. But others, who preferred to stay in Maynard, learned new skills and found new jobs inside Digital. Back then we were growing at 25-30% per year, and there were many job opportunities available within the company.
"Since then, jobs haven't always been plentiful, but the process of dealing with change has been similar. Westminster used to be the hub for all systems that we shipped to customers. Nothing went to a customer until it went through Final Assembly and Test (FA&T) in Westminster. Then advances in design and in manufacturing processes and procedures eliminated the need for FA&T, making it possible to provide higher quality products at less cost. Today, Westminster is a distribution and warehouse facility as well as a major manufacturer of software.
"Likewise, Phoenix, which used to be a major terminal plant, went through major changes, as did Albuquerque, N.M., which used to be a video plant. Most Digital plants have gone through such evolutions — some more than once.
"The business of the company keeps changing, so the business of the plants must change. When that happens, we try to help people adjust and give them choices and opportunities. That’s the way it’s always been at Digital," he concludes.
Don Hunt explains that any of five different factors can lead to the need for people to gain new skills and make changes in their careers — and that four of these factors are very positive and important for the company’s continued success.
o A technology change leads to an improvement in product design, so old products are replaced by new and better ones.
o A process or manufacturing technology change leads to new ways to build products, o Innovative efforts lead to new ways of working more efficiently and effectively.
o Changes in markets and in company-wide strategies for penetrating those markets lead to changing where various products are built.
"When these kinds of changes occur, that means our products and processes are improving," says Don. "We’re becoming more cost-competitive, and we’re responding to customer needs. The net result may be that some people have to adjust their careers; but without these changes, a company becomes stagnant and simply can't compete.
"The fifth cause is that, being human, and having to take risks to succeed in business, we sometimes make mistakes. For instance, we sometimes overestimate the demand for a particular product and gear up with more people and other resources than we later need. On the other hand, much of the company’s success and growth has been the result of good risktaking. We’ve made great strides in improving our forecasting, but there is always an element of unpredictability in this dynamic and exciting business.
"Philosophically, we have to come to grips with the fact that continuous change is a natural part of our business," Don concludes. "We all have to be flexible, strive to learn new skills, and keep up with the changing needs of the business."
Digital recently updated its worldwide policy defining the appropriate use of Digital’s computers, systems and networks. This version includes a philosophy statement that reaffirms the importance of our systems and network utilities as business tools. It also defines "misuse" and spells out the responsibilities of all employees and managers.
Because it is important that all employees understand this policy, it is being published here in its entirety. This policy is effective immediately and will be available in the U.S. in videotex and hardcopy form on or before November 1. (Numbers refer to other policies in the the U.S. Peronnel Policies and Procedures Manual, also known as the "Orange Book.) Outside of the U.S., this policy is being distributed by Personnel organizations.
Systems and network utilities are powerful business tools, encouraging creativity and the exchange of ideas needed to maintain our competitive edge. These tools allow for instantaneous creation of "electronic" organizations to focus worldwide resources on urgent tasks. We want to encourage our people to use these tools in accordance with company philosophy and values.
Our peer-to-peer, open computing environment reflects our corporate culture. We sell this concept to customers, and business and society are clearly moving towards this way of operating. We believe that what we sell to our customers will get better if we use it ourselves.
Information, and the ability to freely communicate it are valuable assets that play a significant role in Digital’s success. The protection and appropriate use of these assets is everyone’s responsibility. We must strike a balance between encouraging open systems and protecting these assets if they are to continue to support our success.
Digital owns and operates computers, systems and networks primarily to support the company’s business activities. Systems should be used to enhance the cost effectiveness and efficient running of the business, to assist employees in being more effective in executing their duties and responsibilities, to enhance our employees’ ability to operate our computer systems, to foster appropriate open and efficient communications and to perpetuate the use of computers in day-to-day activities.
Employees should remember that computers, systems and networks like paper files, notebooks etc., are company assets provided to employees to assist them in performing their work. These tools, and the work product they contain are company property and are therefore subject to company review and control. The efficient operation of these vital resources is critical to the success of the business, and it is therefore the responsibility of all employees to use the computer resources provided to them by the company appropriately.
For the purpose of this policy, improper use includes, but is not limited to the use of Digital owned and/or operated systems, networks and conferences for the purpose of gaining unauthorized access to internal or external computer systems or accounts, for personal purposes that are contrary to company philosophy or policy, for purposes that interfere or compete with the company’s business activities, or for purposes of individual financial gain. Examples of misuse include, but are not limited to, transmitting sexual or ethnic jokes or slurs, soliciting other employees, developing chain letters, making defamatory statements, disclosing private facts about any individual or organization, inappropriate disclosure of company proprietary or confidential information, permitting unauthorized access, etc.
Cost center managers - cost center managers are responsible for effective use of the company’s assets, which includes networking and computers. They may delegate that responsibility to other individuals, but they are ultimately responsible for making sure these policies are adhered to.
Systems managers - all employees must ensure that computers, systems and networks that they manage are clearly operating in support of company business activities. System managers must immediately investigate and report any incident of misuse by an employee to the employee’s manager.
Managers - managers should periodically remind employees about the appropriate use of company computer resources and, monitor these resources to insure that they are being used in accordance with this policy.
Employees - employees are expected to use company sponsored computer resources and their time at work (as determined by their manager) in accordance with this policy and to support company business activities. In addition, employees should report all potential misuse to their manager.
Conference moderators - conference (notesfile) moderators are expected to periodically review the contents of the conferences they moderate to insure that material contained in those files meets the letter and spirit of this policy. Moderators are expected to remove any material that does not comply with these standards, and should report violations of this policy to the appropriate systems or cost center manager.
Digital provides systems to its employees to maintain computer conferences (notes files) in direct support of company business (i.e., product development, financial analysis, business planning, etc.). Digital also permits access to these systems to communicate matters of opinions and common interests.
In all cases a computer conference must have an identified conference moderator as defined above. Where the conference directly supports the company’s business, the conference
moderator and the responsible systems manager may elect to restrict access to the conference. Digital classified information may only be placed in a conference with restricted access. Conferences created to communicate matters of opinion and common interests may not be used for solicitations of any kind, and must be open to all employees.
In addition, these conferences may not be used to promote behavior which is contrary to the company’s values or policy (i.e., they may not promote discrimination, disrespect for the individual, violence, etc.). It is the responsibility of employees who utilize such notes files to do so in a manner consistent with both the letter and spirit of this policy and the company’s values. The company reserves the right to terminate any notes file it believes is inappropriate or in violation of this policy.
Responsibility for content of messages sent or posted on network
Messages mailed or posted over the Digital network are the responsibility of the original author. Posting these materials in a notes file/conference without the explicit permission of the author is prohibited and is a violation of this policy.
When forwarding messages or posting them to conferences, removal or falsification of the original message header (which indicates the author) is prohibited.
Because networks, computer systems and accounts are resources the company provides to its employees, the company reserves the right to access those networks, systems and accounts as it deems necessary.
Managers who suspect systems are being used improperly should discuss the problem with the employee in question and, if appropriate, involve security. In cases where improper use has been clearly established, the employee should be dealt with in accordance with the corrective action and disciplinary policy (6.21).
(The following article is based on a commencement address delivered at Wentworth Institute in Boston, Mass.)
The nature of the business world has changed dramatically in recent years. We used to believe we belonged to an "American Century," that America’s strong economic infrastruc ture and technological leadership would remain dominant for the foreseeable future. But today, we see the emergence of a truly global economy, with competition emerging from the Pacific Rim, and from an integrating Europe.
When I started out with Digital thirty-plus years ago, our competition consisted of perhaps three or four major players most of whom had worked together or at least knew of each other. Today, the scope of competition as well as the number of competitors has increased dramatically. There are not only competing computer companies, but competition for every part that goes into a computer system: chips, terminals, memories, software, networks.
The speed at which things change also has increased dramatically. In the computer industry, I have seen the lifetime of new products change from years to months, start up companies emerge overnight to become billion-dollar players, and billion-dollar players disappear seemingly overnight - their markets vanished, their products too slow and their technology obsolete.
Out of turmoil, traditionally comes opportunity. The companies that not only survive, but thrive, will be those whose employees are the most productive, innovative, and motivated. In the future, I expect that only companies that encourage employees to be creative and make a difference will ultimately succeed.
Making a difference many times involves risk, and risk can result in failure. Today, too much corporate focus is concentrated on averting failure, rather than creating success; success that can only come from making a difference and taking the necessary risks.
Unfortunately, our financial and investment institutions have nurtured a riskless environment. They want to minimize risk. They desire consistency and, most of all, predictability. They have forgotten that it was risk-taking that made this industry and this economy what they are today. What I see all too often in business, particularly at the entry level, is coaching of our young people to conform and to passively accept things as they are. The emphasis is on fitting in. Making a difference involves too much risk.
Many of us in business have forgotten our most distinctive human characteristic — creativity. This reminds me of the difference between the architect and the bee. Both are capable of creating the most elaborate and marvelous of structures, but with one important distinction. The architect imagines the structure in his mind before he creates it, he changes the approach many times - his burning desire is to make a difference — to do it better and better in his mind’s eye. The bee builds the same marvel instinctively from a set of unchanging instructions — over and over again. No difference — no improvements — basic survival being the only goal.
In other words, it is our imagination, our vision and our ability to be creative that distinguishes us as humans. Too many young people are being coached to simply conform. This is not the way to succeed.
Digital recently jumped into the forefront of the expanding workstation market with the introduction of our RISC-based DECstation 3100 system. The technology for this product was acquired outside Digital from a small innovative chip-maker called MIPS. This acquisition represented a major turnaround in the way Digital introduces its technology. And what made it happen was not the great foresight of senior management, not the superiority of our long-range planning, but the dedication of two individuals. They took the initiative and decided this is the way we had to go. They had creative ideas about technological innovation within Digital and were determined to make a difference — and they did.
Don’t let anything stand in your way. It is your right to share your ideas and have them heard. Any organization that doesn’t allow this to happen is not going to survive in the long run.
Believe you can make a difference. You are, today, our best educated and most knowledgeable generation — fiber optics, robotics, CAD/CAM systems, local area networks, lasers — the great achievements of my generation are common-place to you, taken-for-granted — pushing you to new heights of imagination and creativity. All that is required is your own determination and belief in yourself.
The future is full of opportunity. See what needs to be done and do it — the power and the knowledge is in your hands. Create solutions and implement them. Follow your vision and believe in yourself. Great success awaits those of you who dare to make a difference.
Most high technology companies spend from seven to ten percent of their revenues on information generation, processing and delivery. Using that rule of thumb, computers and networks and the people who process information for the company cost Digital over $1 billion each year. That makes information one of our most expensive resources.
Industrial espionage goes on all of the time. In a case a few years ago at another company in Europe, a computer operator was paid a year’s wages to print an extra, unauthorized copy of a report for outsiders. Someone thought the report was valuable.
We need to remember how critical information is in an industry where competitive position depends on Digital being able to design and produce a family of new products every two or three years. If our business plans should be exposed, we could lose our competitive position. A competitor who knows our plans and understands our reasons for choosing certain technologies can make fast, cheap decisions, without the expensive research we have had to do. We could be undersold, lose a market niche, or suffer irreparable damage.
Finally, we need to preserve our reputation. If we cannot successfully protect our own information, how can our customers depend on us to provide computers and networks that will protect their information?
To be certain that we do everything possible to provide security to Digital information, the Information Security Strategy Committee (ISSC) has been established. This committee is responsible for identifying information security issues, providing resources to develop solutions, and seeing that the solutions are implemented across the company, worldwide.
The ISSC has representatives from all parts of Digital. Current issues being addressed include improvement of network emergency procedures, development and installation of security tools, and the creation of an information security business architecture.
The ISSC meets quarterly, and will be developing proposals for new policies and standards to improve practical procedures for information security, to simplify directives, and to accommodate new technologies. Since Digital runs on Digital products, this work implies the delivery of Digital products with ever better security features.
The message is that Digital will continue to be a leader in information security. It’s an essential part of our business.
Through the recently announced DECstation Innovators Program, university researchers and faculty are busy on more than 50 projects to port more than 130 well-known software applications to Digital’s family of RISC workstations. Several applications from the program are already available for customers, and approximately 400 DECstation 3100 configurations have been acquired by participating universities.
Engineering and product marketing people chose key applications and invited target universities around the world to participate in the program. In exchange for partial summer support for project personnel and special prices for DECstation 3100 systems, each university developed a proposal outlining the scope of its project and the distribution mechanisms it will use to make the software easily available. Most of the applications are in the public domain and will be available over national networks and through organizations like DECUS. The remaining applications are distributed through more formal channels directly by the universities for modest fees.
"Historically, universities are among the early adapters of new technologies," explains Jack McCredie, director. External Research Program. "They led demands for a RISC-based ULTRIX workstation and were among the first customers placing volume orders after Digital's system was announced last January. By working with the leading universities and faculty to port key applications, Digital is ensuring an even broader, early beachhead in the strategic education market. By establishing credibility and gaining university commitment to Digital’s RISC technology, successful penetration into the more commercial markets is more likely to follow."
About half of the participating universities are in the U.S., 40% in Europe, and the remainder in Canada and Australia. "This program accelerates the porting of valuable applications to this new RISC platform, and it enables universities to acquire more systems than they would otherwise be able to afford," adds Jack.
"Coupled with the Engineering Systems Group’s ’Call-to-Arms’ effort (with its 34 software development firms also porting applications), this program demonstrates Digital’s commitment to meeting customer needs and to the RISC-based ULTRIX workstation arena."
A few examples of participating schools are: Johns Hopkins (astronomy), CalTech (engineering), Vienna Technical University (artificial intelligence), University of Oslo (artificial intelligence), University of Ottowa (chemistry). University of Antwerp (engineering), Brigham Young University(engineering) and the University of California at Berkeley (computer-aided design).
"We will re-evaluate the program this fall", notes Jack, "but it already looks like an excellent model for how we can work with many groups and meet multiple goals. This approach gives us better applications and better research, it builds better educational and research computing environments for the universities, and it expands our existing ties and presence with our many university partners."
Colby Chandler, chairman and chief executive officer of Eastman Kodak Company, has been nominated for election to Digital’s Board of Directors. Digital’s 1989 Annual Meeting of Stockholders is scheduled to be held on November 6.
In announcing the nomination. President Ken Olsen said, "Colby Chandler is a distinguished business leader with a global long-term vision and a focus on improving U.S. manufacturing quality and productivity. Digital and Kodak have worked together on projects for a number of years, and we’ve developed great confidence and admiration for Colby Chandler."
Mr. Chandler began his Kodak career in 1950 as an engineer at Kodak Park. He subsequently held management positions in quality control and technical services before being named in 1962 as recipient of a Sloan Fellowship to study at the Massachusetts Institute of Technology.
From 1963 to 1971. Mr. Chandler held various management positions in the Color Print & Processing Organization. He was named director of Corporate Photographic Program Development in 1971, and in 1972 elected an assistant vice-president of the company. In 1974, he was named general manager, U.S. and Canadian Photographic Division, elected a member of the board of directors, and an executive vice-president of the company.
He was elected president of Eastman Kodak Company in 1977, and became chairman and chief executive officer in July 1983.
Mr. Chandler serves on the board of directors of Ford Motor Company, JC Penney Company, and Citicorp. In addition, he serves as chairman of the President’s Export Council. His other business affiliations include The Business Roundtable, The Business Council, The Business-Higher Education Forum, and the Council on Competitiveness. His public service commitments include service as a board member for the United Negro College Fund, the National Organization on Disability, and the United Way of Greater Rochester.
Gary Eichhorn has been appointed General Systems Business and Laboratory Data Products/- Science vice president. He continues to report to Peter Smith, vice president, Product Marketing, and is still responsible for the LDP/Science marketing group which he has managed for the past 2 1/2 years. LDP/Science develops and markets complete solutions for scientists and researchers worldwide.
Gary joined Digital in 1975 as a Sales associate and has held a number of sales and sales management positions, including District Sales manager for the Northeast Accounts and Applications District in Boston, Mass. Previous to his management of LDP, Gary was Product Marketing Programs manager, responsible for a number of corporate marketing programs as well as developing key linkages between Product Marketing and Engineering.
The General Systems Business Group, a new organization within Product Marketing, will develop and market complete systems for companies with revenues of less than $100 million across all industries and applications, and will work closely with the U.S., European, and GIA sales and service organizations as well as with MicroVAX and other key engineering groups to implement a complete plan.
The Independent Software Vendor Group (ISVG) continues to report to Gary as well. This group will maintain its focus on insuring that Digital has a broad base of applications optimized to its client-server architecture on both VMS and ULTRIX platforms.
Sharon Keillor has been named Computer Special Systems (CSS) vice president, reporting to Don Busiek, vice president, Professional Services. She will continue to manage the Software Services Engineering organization, a position she has held since 1983.
Sharon is chartered to help create and support the Enterprise Integration Services (EIS) organization and to better integrate these functions in support of that group. In this capacity, she also will report to Russ Gullotti, vice president, Corporate EIS.
She joined Digital nine years ago as Corporate Software Service Training manager. Later she assumed management responsibility for Digital Management Education (DME). Prior to coming to Digital, she held positions at several universities, including the University of Massachusetts.
A new Distributed Software Systems Group (DSSG) is now responsible for the development of the operating systems and much of the layered software for Digital’s distributed system environment. This group is headed by Bill Strecker, vice president, who reports to Jack Smith, senior vice president, Engineering, Manufacturing and Product Marketing.
"A traditional source of Digital’s uniqueness is its networked computing," explains Jack. "But, our customers are demanding that we go beyond the simple connectivity of networking and move to true distributed systems. These distributed systems will have the functionality. manageability, and security of traditional central systems. DSSG will insure that Digital has the industry-leading heterogeneous distributed systems for the 1990s."
The new group includes such organizations as: Open Systems Software Business (OS/SB), VMS Software, PC Integration Software, Software Development Technology (SDT), Secure Systems Engineering, the Security Program Office, and Corporate Standards.
OS/SB, previously managed by Bill Heffner, is be managed by Roger Heinen. VMS Software, previously managed by Kurt Friedrich, is now managed by Rick Spitz. Kurt Friedrich will establish and manage new integrating functions to insure that the central mission of DSSG is accomplished. Bill Keating continues to manage STD. PC Integration Software continues to be managed by Joe Carchidi, who now reports jointly to Bill Strecker and John Rose, group manager, PC Integration.
In addition, a Software Strategy Committee will be formed, including representatives from DSSG. other Central Engineering groups, Product Marketing, and Field Engineering. The Committee will establish Digital’s Distributed Systems architecture and insure that all of Digital’s software fits that architecture.
"Superficially, the new organization resembles the old Systems Software Group, which was divided into three pieces a year ago," notes Bill. "But it includes a lot more and has a new focus. For instance, a new group within DSSG will be responsible for implementation of distributed computing strategies across the company. DSSG also includes PC software because of the increasing importance of PCs and PC integration in the overall computing environment we are building. In addition, we will work to build a strong business and marketing focus for all of software. At the same time, we expect that the Software Strategy Committee will do for software architecture what the Systems Task force once did for all of engineering — integrating software across the company."
Bob Hult has been named Corporate Internal Audit manager, reporting to Bruce J. Ryan, vice president and Corporate Controller. Bob joined Digital in 1972 and has had extensive financial management experience in Corporate Operations, European Headquarters, Manufacturing and Customer Services. Most recently he was Customer Services Finance manager.
John Doherty has been appointed to the newly created pole of Recognition manager for Sales, Sendees, Marketing and International (SSMI), reporting to John Mercier, SSMI Compensation and Benefits manager, and Dick Walsh, Field Personnel vice president. He will be responsible for developing and implementing the overall SSMI recognition strategy in support of business needs. For the past two years, John has been Corporate Personnel Policies and Procedures manager. He joined Digital in 1974 and has served in such positions as Human Resources manager for Software Services, CSS and Educational Services; line manager in the Product Support organization; and Personnel manager.
Randy Levine has been named manager of the Scientific Applications Marketing Group in LDP/Science Marketing, reporting to Gary Eichhorn, vice president. Randy has been with LDP/Science since 1985 and with Digital since 1982. He has been manager of LDP’s Product Marketing and Planning Group and acting manager of LDP’s Laboratory Applications Marketing Group. Prior to joining Digital, he taught astronomy and conducted research in astrophysics at Harvard College Observatory.
Dennis Pearce has been appointed Administration manager for Educational Services, reporting to Pat Cataldo, vice president, Educational Services, and to Mike Kalagher, U.S. Administration manager. Dennis has been with Digital for 13 years. In his most recent assignment, he was Educational Services Manufacturing/Distribution manager responsible for worldwide distribution of Educational Services’ products.
Bob Stewart, Corporate Consulting Engineer, is now technical director, Workstations, reporting to Don Gaubatz, group manager. In this position, he is responsible for the systems and graphics architecture of all VAX-based and RISC-based workstation products. Bob began his career with Digital in 1971 after he completed his undergraduate and graduate work at MIT. He made major contributions to the PDP-11/45 and the PDP-11/70 systems. Subsequently, he moved to the VAX group where he worked on the VAX-11/780 system. the VAX CI architecture and implementation, and the VAX 8000 family of products. His contribution to these products is recorded in the many patents that he has been awarded during his 18 years at Digital.
Tony Wallace has been appointed Finance
the Customer Services organization, reporting to Don Zereski, vice
Corporate Customer Services. For the past three years, he has been
Internal Audit manager. He also has held key financial management
High Performance and Clusters, Peripherals and Supplies, and CSS.
Digital in 1980 after spending 10 years with Itek Corp.