What's more, PMG said, companies with a record of strong supply-chain management performance were likely to have 60 percent to 100 percent better asset utilization. The need for optimizing one's supply chain isn't in dispute. The challenge lies in attracting investors who are patient enough to wait around for the results. That halcyon, short-lived age of backing ventures without black ink on the horizon has come to an abrupt halt. Burned by hundreds of dotcoms that possessed everything but a rational business model, investors are now adopting a more realistic view of the landscape.
Investors are very impatient and very unforgiving.
They see big investments in information technology, and they expect them to perform. To some extent, shareholder patience depends on the reason behind the expenditure, says Kauffman. Companies that break away from the pack are more likely to encounter a receptive investment community. Those that spend millions merely to catch up with the leaders will encounter a different attitude. That's one possible reason why Dell Computer has had an easier time of implementing its direct sales model than rival Compaq.