How Lucent uses the Net to help it cut costs and turn information into 
business opportunities.

     CHALLENGE               SOLUTION                  PAYOFF

Needed to slash costs    Use the Web to auto-     Helped to reduce
without slashing jobs    mate clerical functions  costs from 24.2%
                         and paperwork            of revenue in 1996
                                                  to 21.3% this year

Customers who wanted     Internal Web sites       Customers bypass
Lucent to prepare cost-  let customers prepare    the waiting list
benefit analyses on      their own cost-benefit   that delayed work
equipment had to wait    reports, using special   by days, giving
days or weeks            Q&A templates            Lucent an edge
                                                  over rivals on
                                                  customer service

It used to take days     Internal Web site        Sales force can
for the sales force      and business intel-      tap data instantly
to get key informa-      ligence software         via their laptops,
tion about competi-      keep sales teams up      helping them to
tors' contract wins      to date on competi-      customize and close
and losses               tors' movements          deals in hours
                                                  rather than days

Administrative costs     Internal Web sites       Unit's sales rose
at Lucent's Texas-       were created to speed    20% and headcount
based Power Systems      transactions and         fell 16% during FY99,
unit were rising         eliminate paperwork      thanks to convenience
                         on product orders        and faster service