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In 1979, Maritime Engines and Motors (MEM), a medium-sized British rm manufacturing outboard engines and motors for pleasure craft, was considering the introduction of a new product based on modi cations to one of its best-selling models Recently, this model had been banned in the USA because it did not meet federal emission standards Fortunately this was not an important market for MEM, but the managing director was concerned that similar emission controls might be introduced in Britain Consequently, MEM was considering introducing a new motor with a redesigned carburation system using conventional but up-to-date technology However, the existing model was so well established that any change to its design might cause a loss of market share, and in any event the new product might soon be overtaken by motors using microchip technology produced by a German competitor.

Between 2001 and 2005, the device volumes were still relatively low and the technology not yet mature enough to provide really compelling convergence devices By the middle of 2006, things were starting to change; Nokia had introduced their extremely successful Nseries range14 of multimedia computers and demonstrated the potential for a single model, the N70, to sell several million units At the same time, technology was evolving to make larger displays a reality at a mass-market price point A larger display made mobile Internet use a more realistic proposition and that, combined with the high pro tability of premium phones, renewed interest from outside the industry Internet giant Google and luxury device maker Apple started investing heavily to create their own offerings, Android and the iPhone range.

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Simultaneously, mobile network operators and service providers called for an end to fragmentation so that they could develop applications and services that would work across the whole range of devices Many companies saw the free and open nature of Linux as a potential solution It promised to be an operating system that could provide the basis for a platform that the industry could collaborate to develop However, initially Linux s only real quali cations for this role were that it was robust, free and had an enthusiastic developer community Having been designed and developed for desktop computers, its size, start-up time, power consumption and lack of support for typical mobile device hardware meant that a lot of work was needed to create a serious candidate To meet this challenge, groups such as the Mobile Linux Initiative and the CE Linux Forum were started.

A decision tree showing different possible scenarios was developed and supported by a nancial model that calculated the Net Present Value (NPV) of each scenario over a 10-year planning horizon The rst part of the decision tree developed is shown in Figure 141 The tree starts with a decision node representing the choice between going for the new, redesigned product or staying with the old one If the new product option were chosen it was estimated that there was a 04 probability of various signi cant possible sources of trouble in introducing the new product Nodes A E were followed by further branches showing possible scenarios relating to sales levels and the penetration into the market of products using microchip technology The numbers above each node correspond to the expected NPV in millions of pounds of all scenarios to the right of the node in the tree.

For example, when a newspaper company runs its presses, a certain amount of newsprint paper is wasted to test the ink colors, optimize the press, and other factors It is called uncontrollable because it cannot be entirely prevented However, changes in processes, methods, and equipment may help reduce this waste Companies will need a way to measure controllable and uncontrollable production waste, because reducing production waste is a key goal in an adaptive business network Working capital charges The company must track f inancial measurements such as the cash-to-cash cycle When a product is manufactured, it costs money, but it may be months before the company sells and then collects payment for that product This ties up the company s working capital The longer products sit in inventory, the more working capital a company needs to operate, and the costs of carrying the inventory can be substantial.

As their efforts started to pay off, other groups began building on their work to create more complete platforms Unfortunately, rather too many groups were all trying.

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