06.24.09

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On Novell and Turnaround

Posted in America, Apple, Finance, Microsoft, Novell at 5:46 pm by Dr. Roy Schestowitz

Chicago skyline

Summary: Corrective remarks about a new paper from the University of Michigan

THE Mad Hatter has just sent us a new paper [PDF], describing it as “a hot one — paper which has Novell down as a “turn around success”, which was a real surprise to me. The paper is about how the North American big 3 could increase market share and profits by building more fuel efficient cars.”

“This is the exact wording”, he added.

“Fixing Detroit: How Far, How Fast, How Fuel Efficient”, a report by the University of Michigan concludes that improving fuel economy would be very profitable for Detroit automakers.

“This is interesting,” adds The Mad Hatter, “The same arguments could be made about Microsoft as are being made about Chrysler/Ford/GM, in that with Vista and Vista 7 Microsoft is ignoring its customers, and not producing what the customers want. This is reflected by the growth of Linux (and Microsoft’s panicked efforts to control or stop it) and the growth of Apple.”

“…Novell, like Sun, better serves as an example of a company that failed to make a turnaround happen.”There is something more than debatable in the suggestion that Novell experienced a “turn around success”. It is reminiscent of a very recent book that wrongly describes Microsoft as a company that changed its behaviour.

We take an issue with the hypothesis in this paper where Novell is used as an example because Novell, like Sun, better serves as an example of a company that failed to make a turnaround happen. Jack Messman failed miserably and Ron Hovsepian just sold out to a competitor in exchange for a temporary supply of cash and a lifeline that came at a considerably high cost. Now that Novell is likely to be split apart [1, 2, 3, 4, 5] it does not seem like a bright idea, not in retrospect anyway. Like with EDS and other acquired companies, Novell will possibly sell the weak parts of the company and let that buyer do the layoffs.

All in all, the paper in question [PDF] seems like interesting work which is worth reading. It came from the prestigious University of Michigan, which is one of the highest-ranking public universities in the United States.

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2 Comments

  1. The Mad Hatter said,

    June 28, 2009 at 2:05 pm

    Gravatar

    Talking about Twitter, it’s interesting seeing who shows up, I recognised Doug Mahugh and Alex Brown. Do you recognise anyone else?

    jlundstocholm

    1. Currently Browsing: http://hvdf2.tkabout 2 hours ago from TwitterBar

    2. @dmahugh ‘kastellet’ is a nice place :-)about 23 hours ago from TwitterFon in reply to dmahugh

    3. Where can I but this in Denmark? #foulaquier http://twitpic.com/8lbr21 day ago from TwitterFon

    4. @AndersBreinholt Spændende – hvad er den gode grund?11:37 AM Jun 27th from TwitterFon in reply to AndersBreinholt

    5. @al3xbrown @ikofish just remember, that picture was made especially for you guys :-)5:53 AM Jun 27th from TwitterFon

    6. http://yfrog.com/5f4vnj #sc342:19 AM Jun 27th from Power Twitter

    7. @dmahugh I’d imagine it is beer/drink #9:06 AM Jun 26th from TwitterFon

    8. So true … RT @WitteDK RT @cheeky_geeky: This just in: a famous person has died -http://digg.com/d1utjD (via @cath_sitterding) #comic5:14 AM Jun 26th from Power Twitter

    9. Transforminators: RT @WitteDK så Megan Fox 2- Sandtyvene (http://bit.ly/TcxFK) i går, og synes det er super underholdning!2:49 AM Jun 26th from Power Twitter

    10. @orcmid you want to have serial values for dates in strict?11:18 PM Jun 25th from TwitterFon

    11. Scouting for lost Americans roaming the streets10:55 AM Jun 25th from TwitterFon

    12. Don’t you mean “ODF elephant” in the room? RT @dmahugh (…) Its a new role for me, being the ODF person in the room. #sc34 #openmalaysia5:19 AM Jun 25th from Power Twitter

    13. @woutervugt I’m not saying Outlook should not use HTML – I use it a lot myself. I simply think they should display it properly.4:29 AM Jun 25th from web in reply to woutervugt

    14. Rt @femalenerd Valgsvindlere har lært for lidt statistik: http://bit.ly/kCROZ (fraudsters fixing Iran election should study statistics)3:59 AM Jun 25th from web

    15. @palnatoke Det er sgu da meget smart … “nudie-pictures in the comfort of Twitter”3:32 AM Jun 25th from Power Twitter in reply to palnatoke

    16. @WitteDK point taken :o) Udtalelsen er min – men i øvrigt inspireret af http://bit.ly/pXnIv fra #TropicThunder3:14 AM Jun 25th from Power Twitter in reply to WitteDK

    17. @WitteDK Er det ikke RT-funktionen du tænker på?3:08 AM Jun 25th from Power Twitter in reply to WitteDK

    18. “Mark Sanford is not on the Appalachian Trail. He’s “up” somewhere, but it ain’t on no trail”. http://bit.ly/wlKJo3:07 AM Jun 25th from Power Twitter

    19. @nitoen er “paradigmeskift” med på Bullshit-bingo pladen i år? #reboot112:59 AM Jun 25th from Power Twitter in reply to nitoen

    20. Hmmm … #twitterfon has stopped showing mentions and DM’s. It gives me the count of messages – but not the mentions/DM’s themselves2:58 AM Jun 25th from Power Twitter

    Roy Schestowitz Reply:

    Yes, the anti-ODFers have been Twitting among themselves a great deal.

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