Business Transformations and Infrastructure Capabilities

In the early 1990s, the telecommunications firm GTE Corporation faced regulatory changes and increased competition. As Charles Lee, GTE’s chairman and chief executive, commented, “GTE needed to become a leaner, quicker and more aggressive player.”1 GTE began a five-year transformation program in 1992, aimed at ensuring the future of the company by rethinking work processes, improving efficiencies, and providing value to the customer. The transformation is on target to achieve annual savings of $1 billion through redesigned processes that enhance current business and support new business growth.

GTE’s innovative processes were strongly dependent on information technology capabilities. ...

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