X·麦肯锡普华永道Case2-PwC.docVIP

PricwaterhouseCoopers CASE DISCUSSION BUSINESS/STRATEGY Interview Case Study #2 Telekenesis Inc. PricewaterhouseCoopers has recently proposed on, and appears to have won, a major engagement to create an information technology strategy for Telekenesis. PricwaterhouseCoopers has worked for Telekenesis in the past, but has not done any significant work for over a year and a half. This is PricwaterhouseCoopers’ first substantial engagement with the company. Company Background Telekenesis was formed in 1992 by executives from four former Regional Bell Operating Companies (RBOCs) and two principals in Silicon Valley technology start-ups. One of the principals is from a start-up company that pioneered a new kind of wireless propagation technology. Telekenesis was founded on the principle that the current telecommunications industry is populated with companies who are almost congenitally incapable of optimizing their form of organization and culture to meet the competitive challenges of the 1990s. The founders believe that local loop technology, which relies on communication devices which are peers in a large technology community, where every device has a permanent and unchangeable identification, is the silver bullet of the telecommunications industry, and that the RBOCs are not ready or willing to exploit it. Local loop technology (LLT) is considered by RBOC management to be radical, unproven and unreliable. Telekenesis Inc. is modestly profitable, with $131,000,000 in sales and approximately 200,000 customers spread out over four adjacent, mostly rural geographies. Approximately 90% of its sales come from four small local telephone companies. The companys strategy is to use the operating experience and customer positioning of the four local telephone companies to develop and implement local loop wireless service or LLWS (often pronounced laws). The concept behind this service is based on the fact that the current phone companies control wiring to and from a