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Volume 8, #4_____________________________________________________________________
June, 1989
The
Executive
Committee Responds To Employee Questions
Update
On
The Apple-Digital Joint Development Effort by John Rose,
group manager, PC Integration
Digital
Is
Rapidly
Reducing CFC Use
Digital
In
The U.S. Adopts Policy On Illegal And Controlled
Substances
Digital
Selects
Olivetti As Pc Supplier In Europe
Enterprise
Integration
Services Organization Formed
Low-End
Network
And Communications Strategic Business Unit Formed
We had to delay salary increases in the U.S.
because of difficult changes Digital is now facing, due to both
internal and external pressures. These pressures come from shifts
in the general business climate, from competition, from advancing
technology and from the changes we’ve made in the way we do
business.
This is an exciting, fast moving business, and
we must continue to make substantial investments in the
technology and products we need for the future. When sales in the
computer industry in general slow for one reason or another, we
have to reduce our costs and better focus our efforts to maintain
profit levels.
We need to shape the company into business
units we can understand and manage and that can set clear
directions for the sales force. We need to focus our efforts and
assets toward customers, and make sure the people who deal
directly with customers have good training and clear signals.
We have the best people, the best products and
magnificent technology. We’ve been able to introduce products
faster this last year than we’ve ever dreamed we’d be able to do.
We’ve promised a 50 per cent improvement each year in our VAX
systems. We’ve introduced a whole line of UNIX-based systems.
We’ve just got one problem: while we were
developing products and technology, we needed to sell more of what
we had. We’ve been through pressures like these before and handled
them well. It’s all part of being in a dynamic business.
At times like these, managers should look at
employees as they would their own families. You’d encourage them
to grow and to learn. You would be firm with them and hold them to
plans.
You’d also challenge them and make the job
exciting. That’s what we should do with everyone who works for
us. When we find that we have an imbalance of people — too many
here and too few there, too many with this skill and too few with
that — it’s our responsibility to work that out thoughtfully and
with careful consideration.
If we do that right, then I believe we can grow
to become a much larger company with about the same number of
people we have today. That means jobs are going to get bigger, and
opportunities will be opening for our people to grow.
Q: How should I handle the tough questions
employees are asking me, i.e., the individual problems of matching
people and skills and work?
A: Base your responses on some of our core
values, and remember that there is no all-encompassing formula.
"Do the right thing" truly applies here. Treat people with
respect. Listen to them. Work with them and also manage them.
Don’t set false expectations, and remain open and honest at all
times. Give people responsibility and be clear about the goals and
expectations you have of them.
Q: What should I do with the suggestions people
bring to me?
A: If the ideas are sound and resolution is
within your realm of responsibility, take action. If good ideas
require additional approval or cooperation, take responsibility to
champion them. We want to encourage employees to look at the part
of the business where they work and make suggestions. Good ideas
come from everywhere.
Q: In 1982, the delay in salary increases was
worldwide. Why did the Executive Committee decide to institute a
U.S.-only salary delay this time?
A: U.S. sales have been flat in FY89, and
profits are down necessitating a review of our cost structure.
Business in Europe and GIA is strong. This action will be reviewed
on a country-by-country basis to determine whether similar steps
are necessary.
Q: How long will the delay in salary increases
be in place?
A: The delay begins on July 2. It will be
closely monitored and reviewed at the end of the quarter.
Q: Will all people in the U.S. be equally
affected by this?
A: Yes. It applies to both exempt and
non-exempt employees. And whatever the length of the delay, it
will be the same for everyone.
Q: If we have nearly a billion dollars in cash,
why do we need to do this?
A: This is a highly competitive business. We
need this cash reserve in order to make substantial investments in
future products and technology. New product development is a
necessity, not a luxury. We have to address our cost problems so
we can afford these necessary, on-going investments.
Q: Will an employee’s salary review date change
permanently?
A: Yes. Every employee’s salary review date
will advance according to the length of the salary increase delay.
In addition, the timing of an increase also may be extended
further based on the employee’s performance and position in the
salary range.
Q: In the U.S., should performance reviews
continue during this period? If so, how will they be used?
A: Yes. In the U.S., performance reviews should
continue. Following policy, an employee’s job performance should
be reviewed annually. Performance ratings should be entered onto
the Employee Master File. These may be used as the most recent
ratings when Salary Planning begins.
Q: Were alternative actions considered?
A: Yes. We have taken steps to minimize
external hiring, except in critical areas, and to minimize
discretionary spending. Overall, we are striving to operate more
efficiently. This means we need more people in some areas and
fewer in others. We have to remain flexible.
Is this a prelude to a layoff?
There is no layoff planned.
Are there too many employees?
There’s an imbalance in the supply and location
of employees. There are too many people in some places and too few
in others; too many with some skills and too few with others.
That’s what happens when technology and work requirements change.
Q: Employees who have been with Digital for
several years have seen this "state of the company" before. What
steps are being taken to assure that we won’t keep having the same
problems and issues every three to five years?
A: Given the dynamic state of the computer
industry, we expect that the "state of the company" will always be
changing. This is normal and we will always be somewhere on the
change curve. With each business cycle we expect to become
smarter.
Q: Why is the company having these problems
today? Didn’t our strategies work?
A: During the last several quarters, revenues
were less than anticipated, and our product has changed to meet
customer needs. Thus, we have to adjust our cost structure.
>O ><0 •••• •• ••
Q: What is the company doing to respond to flat
sales in the U.S.?
A: We’ve got the products that customers want
now, and we’re making changes to help bring that message to them
more efficiently and effectively. To put more focus on dealing
with customers, the U.S. is implementing innovative programs like
"All Hands on DEC" and is continuing programs like the Executive
Partnership Program that help leverage sales. Everyone is
currently helping our U.S. sales force close orders.
Q: What about early retirement programs?
A: These measures aren’t being considered.
Q: Is Digital considering any other programs
that would encourage people to seek employment elsewhere?
A: Our primary efforts will always be focused
on investing in the reskilling and development of our employees.
As in the past, we will only enter in other types of programs if
they are compatible with our values. Anything of this nature would
be implemented on a business-by-business basis.
Q: What is the likelihood of a takeover?
A: It does not seem likely. We are not seeking
to be taken over and have made it clear that we would resist such
an attempt. The stronger our business and the higher our stock
price, the less likely such an attempt becomes.
Q: What should I do if I think I might be more
effective elsewhere in the company?
A: You should make sure that your skills are
being used to their fullest advantage. If you believe you can
contribute more in another part of the company, see your manager
and discuss this honestly and openly. If you want to leam new
skills that are needed by Digital, you and your manager may
explore new possibilities for training and professional
development.
Q: I’m hearing that we all have to maximize our
contributions. What does that mean?
A: We need all employees to contribute their
best and ensure that they are doing meaningful work. We all must
be willing to develop new skills. Workinglonghourswon’t
necessarily maximize your contribution, although some people have
to do that once in awhile when there is a business need.
Q: Why are so many things changing all at once?
A: Styles of computing are changing. Customers
want more power and capabilities right on the desk. The product
mix that we sell has changed accordingly and so must our cost
structure. We have new leadership products, but these products
need new organization and cost models to optimize our marketing
and selling efforts. We are working very hard to make these
changes as rapidly as possible.
There is tremendous turmoil in the computer
industry today. Mergers, acquisitions, shakeouts, and failures
occur every day. As quickly as competitors go out of business, new
ones take their place. Aside from Hewlett-Packard and IBM, the
list of the companies we consider our top competitors has changed
completely over the last 10 years.
In addition, our competition was primarily
U.S.-based. Now we face more international competition, as well as
our U.S. competitors in a global arena.
It’s an exciting and challenging time for which
we’re extremely well positioned. But to meet this increasing and
diverse competition, we must be more efficient and effective at
executing our strategies. In so doing, we’ll come out stronger
than we are today.
In particular, we need to do a better job of
integrating the various groups that represent Digital to the
customer. Over the years, we have developed strong, capable, and
outstanding functional organizations in the Field. Ironically,
because of that very success, it has become even harder for us to
integrate the groups, so that we can present one solution and one
face to the customer. Dave Grainger is taking on this challenge as
part of his new role as vice president of U.S. Sales and Services.
Our European organization, because of its
multi-country environment, has already looked closely at the
problem of interfacing with customers with cross-functional teams.
We are learning from their experience and are adopting what is
appropriate for use in the U.S.; GIA is moving in a similar
direction in its larger countries.
To make it easier for the customer to do
business with Digital, we want to decentralize decision-making to
the district level. We will maintain profit and loss
responsibility in the different service groups, but their goals
will be integrated so that we can respond quickly to competitive
situations and customer needs. If our bid prices need adjustment,
a local-level individual will decide on behalf of the company.
We’ve also been working to get customers closer
to our Manufacturing organization. Instead of having
intermediaries between the customer and the manufacturing plants,
we are facilitating a closer coupling. Thanks to this effort,
we’ve already seen significant reduction in the number of weeks of
backlog and inventory required to successfully manage the
business.
We expect to achieve major advantages in sales
efficiency and manufacturing as we develop more complete solutions
for our customers and package our products that way. Today, we
still have more of a component than a systems approach and are not
doing as much as needed to package complete systems. When there
are many components, it is difficult for sales reps and customers
to configure systems and to quote and process orders, etc. The
solution to this problem starts in the Engineering organizations,
and we’re working with them on that.
Meanwhile, technology is changing. Standards
and open systems are becoming more important to our customers,
many of whom are turning to distributed computing, using smaller,
more cost-effective systems. That means there is more pressure on
us for productivity in selling and competitive pricing. Over time,
these changes will play to our strengths as the leading company in
distributed systems, local area networking, and systems
integration.
Another area of competitive advantage is our
account management program. We need to add broader geographic
account coverage to our traditional approach so we can take
advantage of our international size and scope. That is why we are
asking the account managers for our largest accounts to plan the
resources required to support and execute our strategies with
those accounts. The account manager will develop the strategies,
draw up the plans, and budget the resources required. The district
managers will respond to these plans and assign appropriate
resources to the accounts.
Wherever in the world the account is
headquartered, plans will be developed by the people who are
responsible for that customer. We intend to manage about 200
accounts this way.
This is a major competitive advantage for
Digital with its large multi-national accounts — one strategy
implemented across broad geographies. It will also help us work
together more collaboratively on a global basis — fostering
cross-geographic, as well as crossfunctional teamwork.
Eighteen months ago, I was concerned because
this company had a problem, and few people seemed to see it. Many
customers were looking for workstations, and we didn’t have what
they wanted, and we didn’t even look like we were heading in that
direction. Our product lineup needed to be refreshed.
Eighteen months ago, we compared our products
and our strategy to IBM and felt good. Meanwhile we were letting
Sun and Hewlett-Packard increase their share of the workstation
market. The lesson here is that you can’t just measure your
products against your biggest competitor. You’ve got to measure
them in each market segment against the best in the industry, no
matter how big or small the competitors might be.
Now we have the best of the best. Tests show
it, and our sales people are hearing it from customers. In the
last 18 months we’ve made amazing changes in our product strategy,
adding VAX and RISC workstations and servers, UNIX* and DECwindows
software and more. We’ve made a rapid change that has let us take
advantage of the fastest-growing part of the computer market.
In some ways, what is going on now reminds me
of 1968, when there was a major shift in computing style from
mainframes to minicomputers. Today we’re seeing a shift from
timesharing to a workstation style of computing. Our new desktop
products are bringing advanced computing to people who could
never use it before. This is an exciting, expanding market, with
new applications. Thanks to the changes we’ve made over the last
18 months, we’re positioned to be leaders in this fast-growing
market.
When we announce our new products, sometimes we
don’t toot our horn as loudly as we could. We like to emphasize
the continuity and evolution of our product strategy. We’ve done
this within the context of our unified architecture. As a result,
the compatibility that we offer from the desktop to the data
center is unmatched in the industry. The continuity of our product
strategy and our commitment to preserving past investments is
highly valued by our customers. Our architecture is the key to
providing this capability for our customers, and has also enabled
us to extend our environment to support multiple vendor
platforms.
In addition, this architecture has helped us
respond to market changes so that we stay competitive. Our ability
to build on existing designs, or "product platforms," enables us
to move new products from ideas to the production line very
quickly. These platforms give us tremendous flexibility; but,
given the fast pace of technology, there is no room for
complacency. A machine you announce today can become obsolete in
just a few years. We have to stay ahead of new technologies and
changes in the market.
So I feel good now about our products. But we
need to stay watchful and flexible and willing to adapt. We have
to continue to respond to the needs of customers and to the
opportunities offered by new technology. That’s how you make
quality products and make unique contributions to the industry.
That’s how you succeed in this business that we’ve chosen and
enjoy.
*UNIX is a registered trademark of American
Telephone & Telegraph Company.
A year and a half ago, Digital made two
strategic announcements - the Joint Development Agreement with
Apple* and the Network Applications Support Program (NAS). Today,
Macintosh* integration is an important part of Digital’s desktop
strategy; and Apple and Digital are on schedule in their joint
development effort.
Just last month, Digital licensed its Local
Area Transport (LAT) technology to Apple as an extension of the
existing Apple/Digital joint development and technology exchange
agreement. On May 9, Apple and Digital made six new application
programming interfaces (APIs) and tools available to application
developers. These announcements reflect the priorities Apple and
Digital had set to provide enabling technologies and developer
tools first, as a foundation for future products.
The goal of Network Applications Support is to
offer end users common access to services located anywhere on the
enterprise-wide network, regardless of their desktop device, and
without changing the desktop environment to which they are
accustomed. Those environments include VMS, UNIX, MS-DOS, OS/2 and
Macintosh operating systems. The network services we will provide
include basic connectivity, applications access, communications,
and information and resource sharing. NAS is the context in which
to understand the development effort between Digital and Apple.
The Apple-Digital effort was initiated in
response to requests we both had from customers. This agreement
calls for Digital and Apple to share such proprietary technologies
as VMS, DECnet, Macintosh OS, and AppleTalk* software; to get our
engineers working together to develop technical specifications;
and to develop connectivity products for the seamless integration
of the Macintosh and VMS environments.
The joint development program seeks to
integrate Macintosh and VAX computers into a common information
environment by providing greater functionality to users and
integration between AppleTalk and DECnet network systems. This
required developing the enabling technologies and architectures,
engineering collaboration on connectivity products, and working
with third-party developers.
File sharing is one of a number of services we
will offer that allow Macintosh users to share, gather, store, and
distribute information from various sources located on an
enterprise-wide network, without having to be concerned about the
differences between VAX and Macintosh computers. The file service
allows Macintosh users to share files stored on a VAX/VMS server.
And if VMS Services for MS-DOS software is running on the same
server, then Macintosh and MS-DOS users can even share files.
Macintosh file sharing capability is available from third-parties
such as Alisa Systems and Pacer Software today. Digital has
licensed the file and print services for Macintosh from Alisa
Systems for inclusion in our future Macintosh integration product.
Digital and Apple customers also want to be
able to easily share documents that contain text, graphics,
spreadsheets, scanned images, and data among different
applications and systems. And independent software developers are
eager to write applications that will handle such documents
easily, regardless of the environment. Therefore, Apple will
support Digital's Compound Document Architecture (CDA) with DDIF
(Digital Document Interchange Format), which provides a complete
environment for the creation, display, printing, filing,
retrieval, processing, distribution and interchange of compound
documents and their data.
We also plan to provide access from Macintosh
to Digital’s Rdb/VMS relational database products, by offering
both SQL/Services and CL/1 clients for Macintosh, which will open
up enterprise-wide databases to Macintosh users and application
developers.
In addition, Digital and Apple are working to
allow terminal emulation of Digital terminals by Macintoshes for
access to computers on the DECnet/OSI network. The terminal
emulator we offer for Macintoshes will use LAT technology to
provide efficient, multisession capability and take advantage of
the speeds offered by Ethernet. This will bring Digital’s
enterprise-wide networks, applications, and processing right into
the Macintosh terminal.
Digital and Apple also are jointly developing
support for the X Window standard. The X Window system is an
industry standard set of software components that let developers
build applications with a modern, graphics based interface
independent of hardware platforms. The Macintosh X server will
allow a Macintosh to act as a display device for VAX DECwin- dows
clients without losing the user-friendly interface functions of
the Macintosh.
Communication services under development
include electronic mail for Macintosh users on a Digital network.
Apple and Digital have focused much of their
early efforts on independent application developers because they
will be important to the ultimate success of this program. Last
August, we delivered the technical framework specification to
developers, defined the long-term standards to be used, and
delivered three technical specifications.
In May of this year, we made the key APIs and
tools available to developers. Digital and Apple are delivering
the open interfaces so developers can focus on high-value
capabilities for users and build a new generation of cooperative
networked applications.
A standardized framework with open interfaces
and tools means that developers get a longterm, stable
development platform and they can now concentrate on applications
that deliver end-user value. Developers can now concentrate on
user applications where the real value and creativity are to be
found.
In sum, Digital will sell, distribute and
support a Macintosh integration product set, resulting from the
joint development effort with Apple, worldwide. With these
products, Macintosh users will be able to use any VAX/VMS system
as a high-capacity file server, database engine, print server,
mail server and router, and compute server.
*Apple, Macintosh, and AppleTalk are trademarks
of Apple Computer, Inc. CL/1 is a trademark of Network
Innovations.
Last year, Digital announced its intention to
reduce and, where possible, eliminate its use of
chlorofluorocarbons (CFCs). By the end of 1988 Digital had already
reduced its CFC use by more than 55% (compared to the base year of
1986). This was in response to worldwide concern that these
materials react in the upper atmosphere to destroy the layer of
ozone that filters out ultraviolet radiation.
CFCs are commonly used in many applications —
from cleaning circuit modules and chips during manufacture, to air
conditioning, and to refrigeration in cafeterias. The same
properties that make CFCs safe for use as solvents also make them
stable enough to get to the stratosphere where they react with the
protective ozone layer.
"Recent scientific findings are prompting
countries around the world to step up their restriction and
elimination programs. They are now aiming to reduce CFC usage by
80-85% of 1986 levels by 1995," says Stephen Greene, manager,
Corporate Environmental Affairs.
"We believe our reductions in CFC use in 1989
will be just as impressive as those in 1988. But Digital will soon
face the problem of diminishing returns — trying to deal with
critical applications where no substitute for CFCs is available or
where a great deal of research still must be done. The problem is
made more difficult as new CFC materials are added to the list of
targeted chemicals."
One high visibility area where progress has
been made is cafeterias. Digital is now using styrofoam trays and
food containers that were not made with CFCs, and, incidentally, a
recycling program is being tried out to deal with plastic waste.
Digital is now using aqueous (water-based)
cleaning for most of its circuit boards, and has had promising
results in using aqueous cleaning in surface mount and storage
device manufacturing processes.
Halons, which are used to protect against fire
hazards and which are included in the CFC restrictions, have no
known substitutes. But Digital is working to reduce or eliminate
the fire hazards the halons protect against. This work also
involves new plastic formulations.
"By combining technical knowledge with
management commitment, Digital is doing its part to protect the
ozone layer," concludes Steve.
Six months ago, Digital changed the way it does
business in the education market, with introduction of a series of
programs known as the "The Education Initiative." We changed the
way we deliver products, services and support to respond more
directly to the needs of our education customers and to increase
our market share over the next five years.
Historically, schools have been primarily
interested in getting increased computing power. Computer
manufacturers, including Digital, responded with research
contracts, equipment donations, etc., to provide low-cost ways for
institutions to get the processing power they needed.
Today, the cost issues that institutions face
go beyond hardware acquisition. With the widespread proliferation
of workstations and personal computers, the need for software
applications for students, faculty, researchers, and
administrators has grown tremendously. As a result, it has become
increasingly difficult for schools to tie all this equipment and
software together in useful ways and to control the cost of
network management, software acquisitions, software support,
hardware service, training and user support. In other words, the
problem shifted from acquiring computing power towards controlling
the overall cost of ownership.
In the Education Initiative, we give customers
choices, letting them share certain responsibilities with us —
reducing our costs — and in return we offer them reduced cost of
ownership.
In the first program, Campuswide Software
License Grant, we grant virtually all non-roy- alty software
licenses at no charge to educational institutions. This grant
covers more than 190 layered products plus the VMS operating
system and the ULTRIX operating system. Unlike other vendors’
grant programs, the software can be used for any
function-administration, research, instruction or MIS. We give
the school one license, and they decide how they are going to
distribute the software across the campus, without paying further
fees. In return for the license grants, Digital asks the school to
set up a central resource for managing the licenses, tracking them
and reporting to us on their use.
Before, educational institutions had to be very
selective in their software purchases. Now they can give users
access to a wealth of software technology, allowing them to
experiment and learn, with no concern about licensing cost.
In addition, software for which Digital must
pay a royalty fee and products for personal computers is made
available to the education community at discounts of 40-75 % off
commercial list price.
A related program — the Education Software
Library — offers support for a portfolio of VAX software products
that are widely used in the education community, including the VMS
and ULTRIX operating systems and more than 40 layered products. In
this partnership, the school establishes a central site on campus
to handle purchasing and distribution of software and first-line
support for users. In return, Digital provides, at reduced cost,
initial media and documentation, updates, and direct access to
senior software support specialists for those calls really needing
Digital’s expertise.
In a new hardware self-maintenance program, the
Campus Service Agreement, the customer also is required to set up
a technical assistance center, which handles initial on-site
labor. And Digital provides all the products and services
essential to successful selfmaintenance, including backup
technical specialist support on an as-needed basis. The charge is
only about 28% of the DECservice monthly contract fee.
Another program, the Education Grant Program,
provides grants toward the purchase of new systems packaged with
paid-up licenses for VMS, ULTRIX, DECnet, or VAXcluster software
Finally, the TEI-DECdirect program offers
education customers an automatic 30 percent discount on products
that can be ordered through DECdirect and the Electronic Store and
special discounts on VAXstation 3100 and DECstation 3100
workstation systems.
The Education Initiative provides customers
with easy-to-implement programs that reduce their overall cost of
ownership. And it gives the sales force a powerful tool for
building stronger relationships with customers at a high level,
developing new areas of opportunity within accounts, simplifying
the negotiation of special allowances, and closing business. It
also opens the door to making long-term, campus-wide sales in
addition to one-time sales to individual departments.
The Education Initiative provides customers
with easy-to-implement programs that reduce their overall cost of
ownership. And it gives the sales force a powerful tool for
building stronger relationships with customers, developing new
areas of opportunity within accounts, simplifying the negotiation
of special allowances, and closing business. It also opens the
door to making long-term, campus-wide sales in addition to
one-time sales to individual departments.
We arrived at this plan by re-evaluating the
needs of a particular set of customers and readjusting our overall
business model for them. These customers were more interested in
their total cost of ownership than in hardware price. Working as a
cross-functional team, including the Software Products Group,
Services, Marketing, Sales, and Business Management, we focused
on our total revenue stream, rather than just the initial sale. We
were able to identify ways to reduce our on-going cost of doing
business with these customers and to put together a package of
discounts, grants, and service agreements that not only satisfies
these customers but also provides Digital with a healthy profit.
The Education Initiative is now a factor in
closing virtually all education sales. As of early May, some 120
institutions had signed up for the Campuswide Software License
Grant program alone, and another 380 were in the process of
completing a contract.
Response from customers has been very positive.
The president of EDUCOM, the leading education computing
association, said, "I hope that this announcement sets a standard
to which the whole computing industry will aspire. It is really a
strong measure of Digital’s commitment to higher education."
In order to comply with Federal regulations in
the U.S., Digital is required to publish an employee policy on
illegal and controlled substances. This policy must be part of a
program that will also include information on the Employee
Assistance Program (EAP), supervisor training, and, in some
specified cases, procedures for identifying drug users. The laws
are still being developed and defined by the U.S. government and
the courts. Digital and other companies are reviewing and
commenting on the regulations and their interpretation.
"Digital has no plans to implement a
company-wide drug testing program," explains Erline Belton,
manager, Corporate Employee Relations. "Our intention is to limit
drug testing, if required, only to the areas required by law or
legal contract.
"We have always had a concern for the privacy
of our employees and we value the importance of trust in our work
environment. However, we also understand the issues involved with
Employees found to be in violation of this
policy are in violation of Personnel policy, section 6.24,
"Employee Conduct," and are subject to discipline up to and
including termination.
Practice
Employees may seek or be referred for voluntary
assistance in order to address problems associated with substance
use, abuse or dependency. Digital provides an employee assistance
program (EAP) for all employees across the United States to
provide such referrals.
Managers who suspect substance abuse outside
the work environment should limit the scope of their direct
management to unacceptable workplace behaviors and performance, in
accordance with Personnel policies, unless otherwise required by
law or legal obligation.
Such laws or legal obligations may require that
an employee be removed from a particular position. Managers should
work with Personnel and EAP to advise the employee of assistance
options. On questions regarding law or legal obligations,
Personnel should consult with the Law Department.
From time to time, Digital may be required to
implement programs for identifying illegal drug use, including
drug testing. All programs must be approved by the Executive
Committee.
In implementing this policy, managers must be
sensitive to employee concerns and aware of the potential
liability of issues involving allegations of illegal conduct or
discussions of employee medical situations. Personnel policy 6.18,
"Employee Privacy," is a key reference in this regard.
One of the most valued assets of any company is
its corporate logo. Our logo gives instant source recognition to
our products, services, and literature. We must protect it through
proper and consistent use, and must ensure that those outside the
company do not misuse it.
Digital’s logo is registered in the U.S. Patent
and Trademark Office. Under the U.S. Trademark Act, a composite
design mark, i.e., one containing a word in special typography
inside a design such as our seven rectangular blocks, has to be
used in the form registered. Failure to so use such a trademark
can possibly lead to loss of rights in it when it comes due for
renewal. Similar provisions apply under foreign trademark
statutes.
Beyond the legal reasons, it is important to
display Digital’s logo consistently for marketing reasons. We want
it to be instantly recognizable to our customers and the general
public as a source-of-origin designator for our goods and
services. The combination of lower case letters within seven
rectangular boxes is the most essential element of Digital’s logo
as registered. Other than the specific word processing facsimile
provided below, a graphic rendition of the logo should be
completely faithful to the printed masters as published in the
Company Identity Manual. The only acceptable change is symmetric
size scaling. If you cannot use the electronic form below, then do
not use this logo in your document at all.
Sidney Diamond, former Commissioner of the U.S.
Patent and Trademark Office, summed up this legal and marketing
policy well: "There should be a special form for the trademark and
it is important to stick to it. Many companies issue style sheets
and specifications, sometimes in the form of engineering drawings,
giving the exact proportions of the letters and proper
relationships among all parts of the mark. To avoid blurring the
image of the trademark in consumers’ minds, a standard form of
trademark display should be established and appropriate steps
should be taken to see to it that this form is used without
departure."
Managers should keep in mind that:
o The logo is used as a graphic element, never
within a sentence.
o When referring to the company within text,
you should use our trade name "Digital" in upper-lower case.
o Using "DIGITAL" in all caps signifies its use
as a trademark or a service mark.
o The term "DEC" should be used as a trademark
for our products and as a service mark for our services, but not
in reference to the company itself (apart from its approved use on
stock market quote tapes).
It is obvious that the logo must be properly
used on all documents that may be seen outside the company, but
employees must take the same care with documents for internal use
only. For example, internal misuse of "THERMOS" by employees of
its owner, King-Seeley, was a factor that prompted a U.S. Federal
Court to declare that this one-time trademark for vacuum bottles
had lost its trademark significance. This decision indicated that
if the employees inside a company did not even use their company’s
trademark correctly, that is convincing proof that it isn’t a
trademark that the courts should protect.
All employees are responsible for correctly
using Digital’s logo and the trademarks of Digital and other
companies in both internal and external documents. A periodically
updated list of trademarks can be found in our Corporate Videotex
Library. Select "ADMINISTRATION" from the main menu, then "LAW",
or type "VTX LAW" at DCL.
An electronic copy of the logo approved for use
in word processing can be extracted from the Company Identity VAX
NOTES conference (IAMOK :: COMPANY IDENTITY). That conference also
includes detailed information on the use of the logo in graphics
applications, electronic publishing documents and in videotex. Be
wary of opinions expressed in general discussion forums such as
VAX NOTES conferences other than the Company Identity conference,
as these may or may not reflect correct legal positions regarding
trademark and logo usage.
General questions on style sheets or the
Company Identity Manual may be directed to Peter Phillips @CFO.
Specific questions on the use of electronic forms of Digital’s
logo may be directed to Gene Kusekoski @VRO.
Digital and Olivetti have reached an agreement
under which Olivetti will supply Digital with personal computers
for distribution throughout Europe. The computers, to be
manufactured to Digital specifications in Olivetti plants based
in Italy, will be marketed and serviced through Digital’s sales
and service groups.
Olivetti shipments, comprised of systems based
on Intel 80286, 80386SX and 80386 microprocessors, will form the
basis of Digital’s new family of DECstation PC products for
European customers and will be a key element in Digital’s European
range of desktop systems. Olivetti, based in Ivrea, Italy, is the
largest European information technology group and among the top 10
worldwide.
The Enterprise Integration Services (EIS)
organization has been created to position Digital as a leader in
systems integration and in integrating the enterprise for our
customers. Based on successful systems integration pilots in the
U.S., Europe and GIA, EIS maximizes Digital’s ability to solve
customers’ systems integration problems. These solutions typically
range from a $1 million custom-designed solution to complex,
multigeography, cross-functional, multi-vendor programs from $50
million on up in which Digital would act as a prime contractor or
a major subcontractor.
Russ Gullotti has been named vice president,
Corporate Enterprise Integration Services, reporting to Don
Busiek, vice president, Professional Services. Russ joined Digital
in 1977 as Nashua plant manager. In 1979, he became Computer
Special Systems (CSS) Worldwide Manufacturing manager. The
following year, he joined Computer Systems Manufacturing as Salem
plant manager. He rejoined CSS in 1982 as U.S. Area manager. He
also served as Worldwide Business Operations manager and as CSS
manager. Most recently, Russ was vice president of CSS.
Bill Ferry has been appointed vice president,
Enterprise Integration Services, U.S., reporting to Russ and to
Dave Grainger, vice president, U.S. Sales and Service. Bill joined
Digital in 1978 as a finance manager in Software Services. He was
appointed Corporate Software Product Services manager in 1980,
and named U.S. Software Services manager in January 1986. In March
1987, Bill was appointed vice president, U.S. Software Services.
A major focus of EIS
is to maximize cross-functional support, skills, and resources
necessary to win and deliver business worldwide. To accomplish
this, the EIS manager, in addition to managing the Software
Services function, the Systems Integration business, and the
Program Management Office, will be responsible for the host
management of Educational «
Services and CSS in their respective geographies.
Also reporting to Russ will be David Barlow,
vice president, EIS Europe, and Jerry Montague, vice president,
EIS GIA. David and Jerry will also report to their respective
geography managers — Pier Carlo Falotti (Europe), and Dick Poulsen
(GIA).
A new group, the Low End Network and
Communications Strategic Business Unit, has been formed, reporting
to Ralph Dormitzer. Jim Liu will be directly responsible for
managing the engineering. This SBU will focus on connectivity
solutions for low-end products within a departmental workgroup,
and for connecting these workgroups with enterprise networks. The
focus of the business unit is to provide low cost, easy-to-use
solutions
that fit the low end business models for highly
competitive markets. Its work will complement that of Networks
and Communications.
Ralph has been with Digital since 1982, and has
held various management positions in Engineering Technology and
product development. He was also one of the key contributors to
the development of DECconnect system, DEC423 technology, Thinwire
Ethernet and low cost Ethernet packaging.
Jim also joined Digital in 1982. Since then, he
has held engineering management positions responsible for the
development of DECconnect system, DEC423 technology, T1 and
Ethernet fiber backbone, cable simplification, and low cost
Ethernet development.
Tom Colatosti has been named
Organization and Workforce Development manger, reporting to Dave
Grainger, vice president, U.S. Sales and Services. In this
position, Tom will be providing leadership to the entire U.S.
organization to optimize resources. He will be responsible for
establishing the strategic framework and directing program teams
to position the organization and the workforce to meet the
business challenges of growth, profitability and quality. Tom
joined Digital in 1973. He served for five years as the U.S.
Finance and Administration manager and four years as the Canadian
Finance manager. Most recently he was the assistant corporate
controller.
Dick Doerr has been named director, U.S.
Worksystems Sales, reporting to Dom LaCava, vice president, Low
End Systems, and Dave Grainger, vice president, U.S. Sales and
Services. Dick will be located in the Palo Alto, Calif., area. He
joined Digital in 1986 and most recently served as Area Sales
manager in the Southwest Area. Prior to Digital, Dick spent 14
years with Xerox Corp.
Joe Ford has been named Marketing
manager for Digital’s Field operations in the Far East, reporting
to Bobby Choonavala, vice president, Far East Operations, and
Bruce Ryan, vice president, GIA Sales and Marketing. Joe has 17
years of Digital experience in sales, marketing and product line
management. Most recently Joe has been managing the U.S. Sales and
Marketing Programs organization.
George "Bud" Keating has been named GIA
Field Service manager, reporting to Don Zereski, vice president,
Field Service, and Dick Poulsen, vice president, GIA. Bud joined
Digital in 1981 and has held a number of positions in Field
Service at the corporate level. Most recently, he was manager of
the Business Ventures Group and was also responsible for the
introduction and start-up of the Field Service Enterprise Services
business.
Doug Wood has been appointed manager,
Channels Architecture and Planning, reporting to Joe Arayas,
Channels Business Strategy Group manager. Doug will be responsible
for developing and managing Channels Marketing’s strategic
planning activities, and for developing Digital’s Channels
Portfolio - the mechanisms for providing what the customer
desires. Doug has over 10 years’ experience at Digital in sales
and sales management and eight years in product marketing, where
he developed and managed Digital’s electronic engineering and
technical CASE markets.
In the U.S., the next edition of the Digital
Quarterly Report is scheduled to be broadcast Tuesday, June 6, at
noon and again at 4 PM (Eastern Daylight Savings Time). The
program will feature excerpts from the recent State of the Company
meeting, which included presentations by Ken Olsen and a dozen
other senior managers. In addition, Jack Shields, senior vice
president, will appear on the program to discuss recent business
developments.
The June 6th broadcast will focus on the
Company philosophy and values; an overview of our cost structure
and its future implications; the objectives of Digital’s new
Corporate Enterprise Integration Services; and the steps being
taken to simplify operations and increase sales in the U.S. You
can find the location of the Digital Video Network (DVN) closest
to you in LIVE WIRE, by selecting item 99 on the U.S. News menu.