PUTTING THE X INTERNET TO WORK
As the Internet expands, two new waves of innovation -- comprising what Forrester calls the X Internet -- are already eclipsing the Web: an executable Net that greatly improves the online experience and an extended Net that connects the real world.

An executable Net that supplants today's Web will move code to user PCs and cause devices to captivate consumers in ways static pages never could. Today's news, sports, and weather offered on static Web pages is essentially the same content presented on paper, making the online experience more like reading in a dusty library than participating in a new medium.

The extended Internet is reshaping technology's role in business through Internet devices and applications which sense, analyze, and control data, therefore providing more real-time information than ever before about what is going on in the real world.


Navi RadjouNavi Radjou, Vice President

The X Internet presents opportunities for all companies. For certain industries, however, this is a make-or-break chance to streamline manually intensive processes and meet growing consumer requirements. For instance, 24 hours after the September 11 terrorist attacks, Wal-Mart knew that its stores had sold 116,000 American flags. Wal-Mart reported such aggregate sales data so quickly because its heavy investment in Net-enabled point-of-sale systems lets it -- and its suppliers -- track daily-store-level data. On the flip side, Wal-Mart's competitors' store-level data was at best 12 days old by the time their suppliers received it. To catch up with the No. 1 retailer, Wal-Mart's competitors must stop engaging suppliers in protracted forecasting exercises. Instead, they should upgrade their point-of-sale systems to Net-based systems and feed suppliers with live sales data.



Carl D. HoweCarl D. Howe, Principal Analyst

How can firms measure the X Internet's ROI?
The X Internet is really about doing more with what you already have. Companies have invested millions in PCs, devices, and bandwidth to support today's inefficient Web. Executable Internet applications let you exploit the power of that existing equipment, better satisfy the customer, and reduce bandwidth costs in the bargain.

Further out, the X Internet's ROI will be measured on how closely tied companies are to their customers. The extended Internet will let firms build networks that help them understand what customers need instead of simply waiting for an order. The big payoff of the X Internet will be better customer connections and real-time information about the business.

Specifically, how will X Internet technologies improve my company's CRM?
The executable Net provides the customer with a better experience of your company. Think of it as removing the busy signals from the customer support line -- the user can do what she wants to do faster and consume less bandwidth in the process.

The extended Net is also about connecting the digital to the physical world to anticipate customers' needs. If Staples.com can gather data about your supply cabinet -- that your floor needs more toner cartridges -- it can arrange to replenish the supply automatically.

How does the consumer benefit from business investments in the X Internet?
Consumers' online experiences will keep getting better over time. We'll see new applications that go way beyond the capabilities of browsers, yet rely on online data. For example, to let its users better understand what is happening in the stock market today, Smartmoney.com's Map of the Market tool provides its visitors with a richer, more interactive site visit than Yahoo! Finance does. Today, these applications might be simply about managing investments, but as the extended Internet takes hold, we'll experience such applications in homes and offices that sense what we want. In turn, people will stop worrying so much about the technology behind them. The other significant payoff for Smartmoney.com is that it uses less bandwidth in the process.


Carl D. Howe The X Internet promises a cost-effective way to deepen your relationship with your customers. Principal Analyst Carl Howe explains.


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