Reimann: Why do you think US companies have troubles in determining the end of the life cycles of the product, and how do you think they might be able to improve that capability?

 

Tang: I don’t know. I don’t know about US companies, but I have a lot of experience with IBM. And from consulting what I find is that managers and executives who own these stone aged products, their career depends on them. They fear the product getting killed. They can’t get any place else. Furthermore, partly also their own faults is while they are are maintaining these antiquated products, they are not developing new skills themselves, which position them better job and better positions. So they feel threatened, therefore they will find ten thousands reasons why these products should be kept going. I think there are a number of things we can do. First, by the way, this goes to you particularly, you have to develop new skills constantly. When I graduated from the college, I was told that the half life of what you learn is four years. I believe that the half life of what you learn in school is probably two years. So in two years, if you haven’t learned the things that the fresh MBA is getting, you are already obsolete. I find that nobody has to tell you that you are obsolete. They can tell that you know. And when you know you behave that way, people can tell, it is kind of doom loop. How can we do better, that is one way. The other way, I think the management right now is very ruthless. They don’t care who you are, how long you work. If they don’t have any use for you, good bye. I don’t think that is good policy because like I said, 70% of system level knowledge is carried right here. I think that companies have to create environments and ways of which they can train people for better positions. And companies ought to be able to recognize, people ought to be able to recognize that moving somebody laterally so that they can learn new skills, maybe even with a pay cut, is not a bad thing because there is a body of knowledge and experience that goes with that person and what they learn meaning to them is deeper than what you get somebody who doesn’t have any experience.