2000 WORLD CONGRESS IN INFORMATION TECHNOLOGY
JUNE 12, 2000
"INVENT/REINVENT: STRATEGIC IMPERATIVES FOR THE INTERNET ERA"
© Copyright 2000 Hewlett-Packard Development Company, L.P
All rights reserved. Do not use without written permission from HP.
Thank you very much and good morning.
How fitting it is to be speaking in the year 2000 on "Information
Technology and its impact on the world economics", for I believe
we are entering the Renaissance.
What do I mean by that? All of us of course have been talking
about, watching, driving, and participating in the march of
Information Technology for decades. We have been a part of
its unprecedented power to unleash productivity, to create
wealth, to determine new winners and to unseat some old ones.
And yet, the true capability of technology is only now beginning
to unfold. Technology is now entering its transformational
phase. For now technology can truly touch, not just business,
but can also touch human lives, in positive and in powerful
ways. Technology now has the power to transform I believe
everyone and everything.
Now, the term Renaissance of course means a full flowering
of capabilities as well as a burst of inventiveness and creativity.
As I speak about the transformational power of technology,
I want also to speak of the prime virtue in this new information
age. That prime virtue is invention and reinvention. The ability
to create something new from what already exists, the ability
to see an old problem in a new way. And how appropriate to
speak of invention and reinvention here in Taiwan.
This year is HP's 30th anniversary in Taiwan. From our tiny
start in 1970, we have grown to a US$4.5 billion dollar purchaser
and partner in the year 2000, and seen the words "Made in
Taiwan" come to mean high quality, world class technology.
The Taiwanese people understand what invention and reinvention
are all about. And it is that spirit of invention that now
propels President Chen in his "Green Silicon Island" initiative.
So let me begin with a vision of what this new information
age looks like. This is an age where people can connect anytime,
anywhere to useful e-services of all kinds. Where any application,
any process, any problem, any asset, can be turned into a
service and delivered over the Net. Where useful e-services
are running on always-on infrastructure and are delivered
to information appliances that are pervasive, that are personal,
that are simple. This is a world where you don't work the
Web, the Web works for you. This is a world where technology
becomes useful and significant.
We believe this world is characterized by 3 vectors of technology,
and power lies at the inner sections of those 3 vectors of
tech. Let me talk with you about each vector in turn.
Any process, any problem, any asset, can and will be turned
into a service and delivered over the Web. Let me give you
a few examples here in Asia. One of the early examples is
the creation of mobile e-services at the New Zealand stock
exchange. In March, the exchange implemented Asia's first
wireless, WAP-enabled trading system. Customers can now trade
their stocks and securities directly using a WAP-phone or
a mobile PDA. Investors don't have to go through a broker,
so of course transaction costs drop. This initiative is already
attracting a whole new breed of investors.
To help with this process of invention, HP is opening 20
mobile e-services bazaars all over the world. These are venues
for application developers and communications companies to
spearhead the creation of mobile e-services and the technologies
required making transactions and interactions possible on
a whole new range of devices without wires.
The first Asian mobile e-services bazaar was opened in Singapore
6 months ago, and in the next 6 months, we will open 3 additional
centers in Beijing, Tokyo and Bangkok with another coming
soon in Bangalore. Two hundred companies have signed up worldwide
and over 100 are from Asia.
In Japan, Singapore and Australia, HP has established what
we call the "garage" jumpstart program, which offers flexible
financing schemes to help Internet companies to build, run,
and market their business as services on the Net. Taiwan's
Uni-Serve is one of the first companies here to provide applications
delivered on line on a pay-per-use basis, or what we call
"applications-on-tap".... by providing integrated circuit
electronic design applications and offering their services
to Taiwan manufacturers. Portals like these will be important
for Taiwan's businesses. Because, while Taiwan is now mainly
a manufacturing economy, manufacturers here are re-thinking
their assets in the new economy... realizing that their assets
are no longer just factories and equipment, but also knowledge-knowledge
of customers, suppliers, and employees. Remember in e-services
any asset can be turned into a service and delivered over
Let me give you another interesting example, which I think
speaks to the transformational power of technology to be used
now to attack age-old problems. We have a process in the United
States called food distribution. It is a process that is broken.
It is broken because each day millions and millions and millions
of pounds of food go to waste and lots of distribution capacity
remains unused, and meanwhile charities lack the food they
need to feed people in need. This is a broken process-excess
supply and unfulfilled demand. At HP, working with partners
turned this process into an e-services, we call this e-services
resource link, and through this service, we dynamically locate
and broker, excess food, excess distribution capability and
charities who have hungry people and put them together. And
since we turned that service up in October, 1999, millions
and millions of pounds of food have been distributed everyday.
Think about the power of e-services, if it can transform
a process of food distribution, think about its power to transform
a process like education.
So the first vector of technology is e-services.
The second vector of tech is information appliances. Anything
and everything will become intelligent. Anything and everything
will become connected. Anything and everything will become
person-aware and context-aware. So that it can be intuitive
and personal, and simple and easy to use. You may think of
information appliances today as a cell phone, or a PDA, or
a pager, you should begin to think about information appliances
as something intuitive like wrist watch.
If you think it is ironic that HP is talking about information
appliances, we introduced the first information appliance
in the early 70's, when we introduced the handheld calculator.
And also in the early 70's in our labs, was a watch, and
the vision of that watch was that it would be an intelligent
connected device. At the end of this year, we will be delivering
into the market place, with Swatch, an intelligent connected
wristwatch. If you think that's a little strange, we are using
this pilot wrist watch today in Switzerland, and when passengers
walk through a train, the train knows who they are from the
wrist watch and debits the amount of the fare from their bank
account through the watch. This is not the world of science
fiction, this is a world that is coming today. Think also,
I mentioned the handheld calculator, this summer we will be
introducing a learning appliance. It looks like a handheld
calculator, it is the size and shape and form of a handheld
calculator, but it is in fact, a Web enabled device focused
on middle school applications. So that if your child is sitting
in biology class and is perhaps bored, your teacher can link
them to a rainforest in Peru. Or if your child is studying
a foreign language, your teacher can link your child to a
classroom in a country half way around the world, so that
they can converse with their colleagues in the language they
Today in HP labs we are working on molecular computing and
an atomic resolution storage computing that occurs in 8 or
10 molecules storage capability that is atoms thick.
This is a world where everything will be intelligent, everything
can and will be connected.
And finally the 3rd vector of technology.
An always-on Internet infrastructure. Think about an infrastructure
now that must be reliable enough, secure enough, available
enough to handle trillions of e-services and billions of information
appliances. This infrastructure must be as available as oxygen,
as reliable as the sun and the moon. Now we have built this
world in HP, so we know it is not a figment of our imagination,
we have built this world in our labs, we have built a world
where the infrastructure is always on, always available and
where everything is connected, everything is intelligent.
This world, this world of e-services and information appliances
and an always-on infrastructure and the power of thinking
about that world the intersection, this world is bringing
forth torrent of new invention and creativity. As we enter
this new world, where everyone and everything is connected,
where every asset, every process, every problem, every opportunity
can become a service delivered over the Net. We leave behind
the old notions of the industrial revolution.
The Industrial Age was symbolized by the machine, and mechanics
were the order of the day. But now, the solid ground we once
depended on in that mechanistic era is dematerializing. Borders
and boundaries of any kind --between countries, between time
zones, between companies, ideas and institutions are dissolving.
The speed of change is accelerating. This new landscape is
no longer a machine, but rather I believe, a biological system.
A company is no longer a static set of lines and boxes on
an organization chart, or simply rows and columns of numbers
and figures. A company is a living system, operating in an
ecosystem of other living systems.
Biology, rather than mechanics, is the lens through which
the Information Age must be seen...and it is the companies
and the governments, that understand best how to compete and
create in a world of ecosystems that will be most successful.
Biology, of course suggests permeability, openness to new
influences, new ideas, new ways of looking at things, and
it suggests adaptability, the ability of willingness to embrace
change. And that is, of course, what invention and reinvention
are all about. It is why invention and reinvention are the
prime virtues of the Information Age.
Because biology, I think, is so relevant to this Renaissance,
I will quote Charles Darwin. Because I think his words have
much to teach us as we stand on the brink of this new millenium.
Darwin said "It is not the strongest of the species who survive,
nor the most intelligent, but those who are most adaptive
I use the word "invent" in the broadest terms. For me, it
means the creation ... of an idea, a device, a solution, an
organization, a work of art. So anybody, anywhere, can be
an inventor. And to reinvent ... means taking an invention
that was created to meet a past need ... and recreating it
so that it meets a need in the present ... and in the future.
These processes of invention and reinvention are never finished,
in the new landscape. Just as evolution never stops, neither
can invention. And this is an economy and a marketplace that
has demanded inventive thinking like no other time in history.
Never have we been so compelled to prepare solutions for future
problems ... because the future is now rushing at us with
When I say "inventive thinking," I mean:
- Turning problems upside-down, and looking at them from
new angles, I mean
- Taking the initiative to create the future -- rather than
just respond to it, and
- Accepting radical ideas when approaching a problem.
I believe this is a necessary behavior for any person or
any organization that wants to be a player in the Internet
economy. Change can be difficult, but as Darwin teaches, change
is necessary for survival.
And so, every company, every institution, needs to rethink
how they reach and keep customers, how they make money, how
they differentiate and compete in a world where transactions
and interactions can happen anywhere, any time, and all the
As we undertake the reinventing of HP, we remember that an
undisputed, market-leading company is like a healthy system,
it is in fact a living system, and there are four major components
that must work together in harmony. The four components are:
- Structure and Processes
- Rewards and Metrics
- Culture and Behavior
First is Strategy: the mind that our business what are we
going to do? What are we not going to do? Why do we do it?
For what purpose do we strive? Next is structure & processes.
How we get our work done? Structures have to be tightly aligned
to deliver on strategy. Processes are what hold organizations
together. And those processes must be integrated, streamlined
and working at world-class efficiency so we can deliver quickly
Rewards and Metrics are what we value, what we motivate,
what we encourage, what gets measured in an organization,
what gets rewarded, isn't in fact gets done. In any organization
that wants to lead, you need rewards and metrics that encourage
and support the behaviors that are required to win in this
And last, but by no means least, is Culture and Behavior.
Who are we? What do we believe? What are our values?
In HP, we talk about preserving the best, and reinventing
the rest. And what we preserve is our value, the things we
most deeply believe in. Values like trust, respect, integrity,
collaboration and contribution to our customer as well as
to the community, in which we live and work.
And our behaviors the things that create our mindset and
our attitudes we call our "Rules of Garage". And those rules
begin with simple statement.... Believe you can change the
world and end with believes together we can do anything.
Now in this new era, we are company of living systems defined
by their strategies, their structures and processes, the reward
and metrics, and their culture and behavior. I believe as
well a new kind of leadership is required.
If invention and creativity are prime virtues of this new
age, then the leadership is not about controlling decision-making.
Leadership isn't about setting boundaries. Of strategies,
what do we choose to do? What do we choose not to do? Abstructuring
processes, how do we get our work done? Of rewards and matrices,
what do we value? What do we encourage? And culture and behavior,
what do we believe? And then within those boundaries, the
role of leadership is to set people free, to empower them,
to create and invent.
This new age requires the reinvention also of government
and of the relationship between government and industry. New
leadership and new collaboration are required. Because together
the institution of government and industry and face some dounting
challenges as well as some wonderful opportunities.
Together, government and industry must collaborate, in new
- Consumer trust
Why do I pick up these three? Because they are also public
feeling issues that touch us all. These are also policy issues
that can help accelerate the Renaissance, or if handle poorly,
can retard it progress and limit its promise.
So, we must reinvent the world trading system and I am extremely
pleased that we are making good progress in this regard.
Japan, the U.S., Europe and other countries has wrapped up
their negotiations with Taiwan and China. And it is likely
that these two economies will be admitted into the World Trade
Organization this fall.
As you know, just a few weeks ago, the U.S. House of Representatives
passed a bill to grant "Permanent Normal Trade Relations"
status to China... and thereby ensuring full U.S. participation
in trade with both China and Taiwan. We hope that the U.S.
Senate will pass the same legislation very shortly. Both of
these actions are historic and will have an enormous impact
on how the world's IT and Internet economies develop and expand.
I believe that Taiwan's and China's entry into the WTO...
will enable a faster, broader and deeper expansion of new
economy and e-services benefits to the world's people... and
all for the common good. I personally and HP as an institution
have been front and center in the Washington debate about
trade and stable relations with China, Taiwan and the region.
WTO entry and continued stability in the region... promise
enormous benefits to us all.
Beyond the economic benefits to countries, I also believe
that fully connecting Taiwan and China to the world trading
ecosystem ... does much to equip workers here and on the mainland
with skills and opportunities to participate in the global
Open trade for electronic commerce and information technology
is clearly critical for the healthy growth of e-services and
for information age. But we must also address a host of other
potential policy barriers that can restrict the healthy growth
of e-commerce. We need to work hard to achieve greater public
policy compatibility across our globe's many borders. And
one of the most critical challenges we face ... is how to
help fully realize the possibilities of the new landscape
... by building consumer trust in this virtual world.
Inspiring trust of course depends on a broad range of ethical
business practices. It's the ongoing commitment to our customers...
that leads to business success. If customer trust us, they
will vote, they vote with their money. And it is why public
policy compatibility is crucial.
The borderless nature of this technology calls for increasingly
compatible public policies. Policies that will coordinate
-- not conflict -- between states, regions, and countries.
The big questions are ...How will we as business and government
leaders ... protect consumers and promote trust ... in the
on-line world of this New Economy? How should we address issues
of online privacy? How should we resolve consumer disputes
in Internet transactions? How should we protect individuals
and our businesses against cyber-terrorism?
Cyber security truly brings home the reality of this new
and borderless economy. With each "cyber attack," which can
strike from any part of the world ... trust and confidence
in the online world is shaken.
HP is participating in an industry-wide coalition to address
this issue. The coalition is developing a voluntary mechanism
to share cyber-security information among IT companies ...
establishing a communication system to alert companies to
attacks and identifying solutions to those attacks.
As for privacy... while industry self-regulation may not
be the complete solution, I believe the private sector has
done a good job of responding to privacy concerns during the
seminal growth of e-commerce. Still, I know we can and must
In fact, Hewlett-Packard is making an offer that we hope
will encourage many more companies to join HP ... as a member
of the U. S. Better Business Bureau "Privacy Seal" program.
Beginning this month through September, HP will pay other
companies' application fees and up to $5,000 for each company's
first year of membership to join the BBBOnLine Privacy Seal
program. We are also offering limited, free consultation from
HP's Privacy Manager to help each company get started.
In fact, the BBB program has been singled out by the European
Commission as the kind of program that gives them confidence
that an American 'safe harbor' will meet European adequacy
standards for privacy.
Here in Taiwan, as an example what we are doing in Asia.
HP is a founding member of SOSA - Secure Online Shopping Association
here. In fact, the chairman is sitting here. Ho-ming Huang
is the chairman of SOSA.
But of course beyond these industrial lead efforts, to truly
earn the trust of consumers, we can't stop there. We also
need to expand self-regulatory efforts all around the world.
Because consumers need to have confidence that when they do
business across national borders, that there will be a redress
system if anything goes wrong with the transaction.
It would be difficult -- and probably not cost-effective
-- for the court system to resolve consumer complaints when
the business is based in another country.
That's why we have been working with the Better Business
Bureau, trade associations, consumer groups and countries
around the world, to develop a system of 3rd party mediation
to help resolve trans-border consumer complaints.
In both the privacy and dispute settlement areas, I'm personally
working with some 60+ CEO colleagues from around the world
in the Global Business Dialogue on Electronic Commerce. Our
goal is to develop a worldwide industry consensus on minimum
requirements for effective privacy and ADR systems.
But aside from our self-regulatory efforts, new government
policies to regulate the new landscape will also take shape.
We in business recognize that government has an important
role to play in all of these issues and particularly perhaps
in protecting consumers. As these policies are invented, we
only ask that the policy process be one of communication and
collaboration - between business, government, and consumers.
Now as we are entering the Renaissance information age, technology
is capable of bridging great distances, but it can also create
a great divide. And this is why, I believe, at the heart of
everything is "Education". And because technology now is moving
so quickly, education is the single most important priority
that I believe, government and this industry must address
Education is the only way to bridge the digital divide, and
create a world that we at HP call e-inclusion. A word that
technology and opportunity are accessible and available to
But because of the pace of change, if we do not collaborate
between government and industry all around the world in new
inventive ways, we will loss the generation, the children
will lose the whole country as they try enter into this information
age and share in its promise. This must become an urgent priority.
Hewlett-Packard has over the last two decades, devoted a
billion dollars to education and communities around the world.
And promoting e-inclusion will continue to become at the heart
of what we do when we mean contribution to the community which
we even work.
Promoting e-inclusion requires urgent commitment and powerful
collaboration and truly inventive solutions.
I have talked about a vision for the Renaissance of the Information
Age. I have spoken of the need for invention and reinvention
of companies, of policies, of ecosystems between governments
and industry around the key issues of trade, consumer trust,
education and e-inclusion.
I am an optimist. And I do believe we are entering a Renaissance
of creativity and invention, a world where technology can
be used to not only create wealth but to transform lives and
build bridges. And yet, we can fail to achieve the promise
of this Renaissance. We can fail if we forget that in the
end this is all about people. Technology is only as valuable
as the use to which it is put.
60 years ago, Bill Hewlett and Dave Packard talked about
inventing the useful and the significant. By useful, they
meant it truly makes a difference in people's lives. By significant,
they mean it touches many lives.
Today at Hewlett-Packard we are inspired to Invent for the
I believe all of us can now invent at a level Bill and Dave
never imagined. And we can impact the world for the better
beyond what they ever dreamed. We can do well and do good.
But only, if we ground what we are thinking and inventing
and doing in people. We must keep our vision of technology
and our economic theories and policies focused on people.
It is too easy to let the wave of invention and transformations
obscure where both come from, and who both should serve.
And so as we enter the Renaissance of the Information Age,
as we apply the power of technology to both New Age problems
like cyber-terrorism and age-old problems like exclusion and
ignorance. Let us not forget that the prime virtue of this
New World, invention, is all about people.
Thank you very much.
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