Major workflow processes in telecommunications compa-nies can be re-engineered without having to embark on a large systems development effort. For example, the corporate purchasing function has typically evolved into a highly bureaucratic process where business practices have changed little over the years. However, purchasing considerations can have a major strategic impact. A major reason for the 1995 breakup of AT&T was that the regional Bell operating companies (RBOCs) were becoming increasingly uncomfortable purchasing AT&T equipment, given the company's recent moves into local service. Since purchased expenses often amount to 40 percent or more of a company's expense base, small improvements can have a big impact on the bottom line. Furthermore, attacking these expenses does not require the large systems development efforts or massive head-count reductions associated with other re-engineering projects. As the telecommunications industry becomes increasingly deregulated, these savings can go a long way toward making individual companies more cost-effective.
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