Avicon Introduces New Standard for Measuring the Performance of eBusiness and Supply Chain Initiatives.

NATICK, Mass.--(BUSINESS WIRE)--Oct. 12, 1999--

IPC Ratio(TM) Measures Success by Comparing Cycle Times for

Information, Product and Cash Across Extended Enterprise

Avicon, today announced the "IPC Ratio," an integrated approach to measuring business performance in the eBusiness economy. This new approach provides unparalleled visibility into an organization's success by comparing and analyzing cycle times for Information, Product and Cash across the extended enterprise.

"The Internet has brought about a fundamental change in business processes, much the same way electricity changed businesses a hundred years ago. Never has time been a more critical resource. New business models are emerging daily that will impact your relationships with customers and suppliers worldwide, yet there exists no adequate or complete measure to evaluate a business' value add to its customers and shareholders. Responsiveness and agility to opportunities within the value chain are attributes that will separate organizations that will succeed and from those that will falter," said Jim McGwin, vice president of Supply Chain Management at Avicon. "Companies need tools to measure both ongoing business processes and to evaluate strategies across their Supply Chains. The IPC Ratio will assist companies in gauging the cycle time impact on the key elements of value - Information, Product and Cash."

"Avicon's Information:Product:Cash Ratio provides us the ability to measure two key dynamics in the supply chain, the clockspeed (velocity) of information dissemination to resources at key profit points and the utilization of that information by practitioners who have to deal with the day-to-day," said Bob Daniell, director of Supply Chain Management Programs, Siemens. "For example, think of the optimization tools today that help identify demand-and-supply-schedule hiccups. When you see how your plan matches up against deployment of inventory within your supply chains, the ability to determine how appropriate your response is can be captured through the measurement of IPC-based ratios."

By being able to measure the flow of product, information and cash across the extended enterprise, organizations can identify areas for improvement in their business processes and information systems. Avicon's IPC Ratio provides a new higher-level view of what makes a business successful in the Internet economy. It highlights bottlenecks in common problem areas such as information cycles and cash cycles which, when not addressed, can inhibit an organization's ability to leverage its investments.

"By focusing on optimizing the eValue Chain, organizations will become dynamic, agile and responsive. They will experience improved bottom-line profits and performance, and maximum returns for customers and stockholders." said John Leary, president and CEO of Avicon. "The IPC Ratio is a key element of any successful eValue Chain initiative. It helps organizations assess and understand the impact of their initiatives on the business as a whole."

The IPC Ratio is an ongoing management tool utilized across all Avicon consulting engagements. In Avicon's "eValue Chain Roadmap", Avicon strategists help clients realize their optimal IPC Ratio(TM). It can be used to measure continuous improvement of strategic initiatives that span across the entire value chain or tactical implementations at a department level.

About Avicon

Avicon is a strategy and information technology consulting firm that helps companies build eValue Chain solutions. Its approach is to provide clients with leading edge knowledge in eBusiness, value chain integration, and information technology implementation. Avicon's consulting staff is made up of seasoned practitioners who have provided process and technology solutions to companies leading the charge in eValue Chain integration.

Avicon's services include design and implementation of value chain strategies, trading partner collaboration and packaged application implementation and integration. Headquartered in Natick, Massachusetts, Avicon is on the web at www.avicon.com.