E-Commerce Still Needs the Human Touch

The rest of the world is going crazy about E-commerce, but I have reservations (''What every CEO should know about electronic business,'' Cover Story, Mar. 22). It's true this new distribution channel can reach markets that conventional advertising cannot, but what about customer service?

Every successful business model needs to focus on service. Companies that can combine Internet abilities with intelligent customer service will be the successful ones in the new millennium. A customer must feel appreciated. While Web sites allow customers to ''do the work themselves,'' a Web site cannot answer all questions. Eventually, a consumer needs to talk to a human.

Customers won't embrace E-commerce so much after they realize the frustrations surrounding automation. The days of relationship sales will revive again. Customer service is what makes a company successful, not a Web site.

Ron Kubick
Nanuet, N.Y.


Your story doesn't focus on a major consequence of the electronic value chain, which most global companies are beginning to discover: the multicultural challenge. Companies used to rely on expatriates to bridge differences between a company's national culture and other local cultures. E-business no longer requires as many expatriates. Players from the global company work and produce value remotely, though they may never see each other. They also face cultural clashes and blunders, which is one of the major constraints of globalization. Developing global reach through E-business requires multicultural adaptation.

Andre Guyard
Paris.

Midwest Express Is Alive and Well

In ''Straightened up and flying right'' (News: Analysis & Commentary, Apr. 5), you say that America West Airlines Inc. is the ''only one of 58 startups launched between 1978 and 1990'' that survived. Midwest Express Airlines started service in 1984 serving three cities with two airplanes. At the end of 1998, Midwest was serving 27 cities with 27 planes--and had been profitable for 12 straight years. The airline has also been named in several travel polls as having the best service in the air.

Robert E. McBride
Highlands Ranch, Colo.

Cable Technology Still Has the Edge

Your excellent article discusses the potential for the telcos to use digital subscriber lines (DSLs) as a cable-modem rival, now that the telcos have learned to price their services competitively (''Cable rushes the Net,'' News: Analysis & Commentary, Apr. 5).

However, a comprehensive end-to-end analysis of DSL vs. cable technology shows that under realistic operating conditions, cable's performance usually will be appreciably better. Also, most households' and storefront-size businesses' distribution wiring will not support DSL, and costly inside wiring will be required. In addition, DSL operates at advertised speeds at distances up to about 12,000 cable-feet from the central office on high-quality (newer) outside cable infrastructure. Subscribers in neighborhoods with older cable or beyond about two miles are out of luck.

Ronald O. Brown
Melrose, Mass.

Singapore Needs a More Open Government

In the past, I have been a critic of Singapore's leadership and have expressed concern about dynastic succession there. Nonetheless, your story on Lee Hsien Loong's stewardship of Singapore's economy and its monetary system provides evidence of his talents (''Remaking Singapore Inc.,'' International Business, Apr. 19). His actions taken in response to crisis show that bold reforms allowed Singapore to steal a march on neighboring countries.

Aside from his steady hand as the architect of economic reform, Lee has softened his hard edges through close encounters with the citizenry. He has also engaged some bright young advisers to collect and decipher feedback from different sectors of the community.

Although I wish him and the citizens of Singapore well, some caution might be in order in assessing the future prospects for the Lion City. Several more surprises are in store arising from the resolution of lending to and investments in its economically troubled neighbors. Singapore's banks and the custodians of its mandatory pension scheme, the Central Provident Fund, have considerable exposure in the crisis-torn economies of Indonesia, Malaysia, and Thailand.

Unfortunately, the tight control on information and the unlikely prospect of a parliamentary inquiry renders assessment of Singapore's affairs to be as daunting as was Kremlinology during the Soviet era. Success in the global market will require that Singapore's government become as open as its economy, and its political leaders become as accountable as its economic leaders.

Christopher Lingle
Hong Kong

Not All Top Students Go to Top B-Schools

I agree with ''Second-tier B-schools: Worth a second look'' (Personal Business, Apr. 5). In addition to their economic value, most such schools have students that are first-rate. I worked in teams with many students that scored above 700 on the GMAT. Many had worked for great companies, such as GE, Walt Disney, and Janus, some were top-gunners from the military, and there was an excellent international student ratio. There were also some with lesser GMAT scores and from less impressive companies, but I've found the mix of people in B-school to be representative of the mix in Corporate America.

I received training in some of the most cutting-edge tools. In some cases, the professors had formerly held significant positions at top-10 B-schools, such as the Wharton School and the University of Michigan School of Business Administration. Deploying these tools in my business unit in my first year on the job was highly regarded by the company.

I received strong training in communication and presentation skills. If you're in Corporate America, you know just how important it is to be able to convey results effectively. Finally, some of the regional schools, like the one I attended, offer unparalleled campus settings, social environments, and inspiring legends.

Brad Sandberg
Portland, Ore.

A Caveat on Distance Learning

''Welcome to the world of mba.com'' (Personal Business, Apr. 5) missed two important points about distance education. First, not all employers financially support distance education. I completed half of a distance MBA program with full financial reimbursement from my previous employer. I am paying for the second half of the program because my current employer does not reimburse distance-education tuition. My advice: Distance programs, even fully accredited ones, are still often viewed as ''mail-order degrees,'' so be careful.

Also, many excellent distance programs are available through universities outside the U.S. Anyone considering a distance-learning program should spend the extra time investigating the international options. If you haven't already done so, you will probably be quite surprised at what's out there.

John W. Kyle
Novi, Mich.

Leash Corporate Lobbyists before It's Too Late

It is heartening to read that many executives recognize the need for campaign-finance reform and are supporting it (''Campaign-finance reform: Can business break the logjam?'' Washington Outlook, Apr. 5). Reform will never capture the public's attention in the same way as bread-and-butter issues such as health care or Social Security, yet it is at the heart of restoring credibility to the American political process and putting control of politics back into the hands of citizens, where it belongs.

The importance of this issue can hardly be overstated. It is the excessive influence of corporations and other interest groups that has disenfranchised the average American, prevented reasoned debate on a variety of critical issues, from health care to global warming, and misapplied tax revenue to pork-barrel schemes.

Deplorable as these developments are, the danger to America is heightened by the increasing globalization of corporate entities, which raises the specter of not only American but foreign corporate entities' dominance of the American political process (DaimlerChrysler comes to mind).

Paul W. Rosenberger
Manhattan Beach, Calif.

David Kearns Had Help

In ''The mission'' (Social Issues, Mar. 22), you mentioned David Kearns's contribution to education, saying that as head of Xerox Corp., he was ''among the first corporate leaders to latch on to quality and employee involvement.''

My union (Amalgamated Clothing & Textile Workers Union, now called Union of Needle Trades, Industrial, and Textile Employees) has represented Xerox factory workers since 1937. We initiated employee-management teamwork as an alternative to sending the wire harness to Mexico to save an estimated $3 million, among other incentives. As an alternative, I suggested that we set up a team of workers to come up with a program that changed the work method and added some new equipment--and which eventually ended up saving more than $3 million and has kept wire harness manufacturing in the U.S.

It also led to teamwork in all manufacturing operations, which in turn facilitated Xerox regaining its profits and won Xerox the Baldrige Award in 1989. Kearns credited our union with that achievement. Today, we have stability and employment guarantees, and workers are involved in everything from product design to decision making.

Jack Sheinkman
President Emeritus
Amalgamated Clothing &
Textile Workers Union
New York


It was heartening to read your profile of David Kearns, particularly concerning his work in education reform. It failed, however, to mention his critical role in the creation and support of a national nonprofit research and development organization focusing on learning.

As chairman and CEO of Xerox, Kearns played a vital role in the founding of the Institute for Research on Learning in 1987. In the past 12 years, IRL has been creating more effective and enjoyable learning and work environments in schools, communities, and workplaces. As part of its work, IRL has developed a comprehensive middle-school math curriculum and is working on a program that will help parents become stronger supporters and advocates for their school-aged children.

Peter Henschel
Executive Director
Institute for Research on Learning
Menlo Park, Calif.

How One Outstanding CEO Does It

I found ''High-tech star'' (Cover Story, Mar. 15) encouraging and amusing. Encouraging because there's one CEO who understands the business he's in. Amusing because you see [Michael C.] Ruettgers as such a visionary. Clearly, he has been successful because he has good habits: He listens to customer needs and delivers value, lays out clear goals and plans well, gets his troops on board and focused, isn't afraid to get down in the trenches, and has a can-do attitude. If more CEOs did this, instead of just looking at the next quarter and their next paycheck, we would all be better off. Of course, this can't be done without getting your Guccis dirty.

Bruce Herman
Arlington Heights, Ill.


''Lower taxes? Oh, no thanks'' (News: Analysis & Commentary, Apr. 5) sounds like an endorsement of the status quo. I hope this is not what the author intended: The federal government is far too inefficient and far too heavily in debt for us to accept the status quo. Any government must strive to perform its functions as efficiently as possible and to tax its citizens at the lowest possible level. Our current government fails miserably on both counts.

Jack Haley
Warner Robins, Ga.

''Are companies borrowing themselves into trouble?'' (News: Analysis & Commentary, Apr. 19)

''Are companies borrowing themselves into trouble?'' (News: Analysis & Commentary, Apr. 19) misquoted the bank research firm Veribanc Inc. The total of seriously delinquent loans rose from $8.6 billion in December, 1997, to $10.4 billion in December, 1998. The figures in the story were for the total amount of commercial loans.