Enron Mail

From:general.announcement@enron.com
To:all.worldwide@enron.com
Subject:Global Technology Organization Update
Cc:
Bcc:
Date:Fri, 3 Sep 1999 11:27:00 -0700 (PDT)

TO: All Enron Employees

FROM: Mike McConnell

RE: Global Technology Organization Update

The purpose of this memo is to clarify and provide an update of some of the=
=20
activities within the new Global Technology function. A company-wide=20
technology meeting is scheduled for September 27th at the Hyatt Regency for=
=20
all technology employees (details to follow) to discuss our overall strateg=
y,=20
but I did not want any further delay in addressing some of these items now=
=20
and in a corporate-wide communication.

Recognizing that the world is becoming increasingly digital and networked,=
=20
Enron=01,s Office of the Chairman has determined that Information Technolog=
y has=20
the potential to be a significant, offensive, commercial business expanding=
=20
from its traditional support function. To achieve the vision of a truly=20
=01+wired=01, Enron, the Global Technology group has been established to po=
sition=20
Enron as the leader in eCommerce by developing and executing a global=20
eBusiness strategy to further leverage our leading position in the energy a=
nd=20
technology businesses. We will also more fully integrate Enron as one=20
company by leveraging the benefits of network economies, knowledge manageme=
nt=20
and the advantages of rapid, frictionless information flow across all=20
businesses. By consolidating formerly separate IT functions run by separat=
e=20
CIO=01,s, we hope to realize significant gains in information sharing and=
=20
levering of technologies, products, ideas and intellectual capital. While=
=20
retaining accountability to individual business units, we will optimize the=
=20
full spectrum of the technology group's capabilities through a more=20
centralized organization.

We have already taken several steps to reach our goals as stated above. A=
=20
technology management committee was created which meets every Monday and=20
includes every CIO. In this meeting we discuss Enron=01,s overall corporat=
e=20
activities and ways to improve the use of IT within Enron. This group will=
=20
be expanding as the organization continues to grow. We have also added two=
=20
senior management players to the technology organization. Jay Fitzgerald=
=20
will be joining the group as Managing Director, Global eCommerce. Also,=20
David Pope has joined the group as a Vice President in the London office to=
=20
add additional senior level commercial skills and to work on technology=20
related transactions and eCommerce. They are both members of the technolog=
y=20
management committee. With regard to the previous EI business units, Evere=
tt=20
Plante continues to have responsibility and accountability as CIO. The=20
regional offices are a top priority with regard to improving IT=20
infrastructure and developing a proactive technology strategy. Over the ne=
xt=20
several months we will be refining the IT organizational structure to insur=
e=20
that we are positioned to meet the exciting technology and eCommerce=20
opportunities at Enron.

As part of a larger EES energy management transaction, a strategic=20
partnership with IBM is currently being negotiated and examined. We are i=
n=20
active discussions with IBM to form an alliance to assist Enron in moving=
=20
forward with our technology vision and to capitalize on IBM=01,s strength a=
nd=20
expertise. The purpose of this transaction is to increase our capabilities=
=20
and move intellectual capital around within Enron to leverage our business=
=20
needs and existing strengths. The scope of the transaction is still being=
=20
developed and it will affect each organization in different ways. Technolog=
y=20
is one of our key growth areas and we will continue to invest and develop o=
ur=20
technology professionals.=20

Two other initiatives are under development. Enron is implementing the new=
=20
mySAP.com procurement portal. I believe that this will provide us with bot=
h=20
a new eCommerce initiative and will provide a mechanism to reduce Enron=01,=
s=20
procurement costs. Also, we are in the process of adding commercial staff =
in=20
the various regions to include a technology origination position to be a pa=
rt=20
of the commercial staff and examine technology opportunities. The goal is =
to=20
provide additional technology expertise and the ability to quickly review n=
ew=20
or leveraged business opportunities to all areas of the world.

As we clarify our needs in the future, we will be looking at expanding the=
=20
eCommerce group within the technology organization. The group's activities=
=20
will include building new businesses, acquisitions and investment=20
opportunities that lever Enron=01,s capabilities on a global basis. There =
are=20
also other very exciting initiatives under development that will be discuss=
ed=20
in the follow-up meeting.

I look forward to addressing the technology employees in the near future. =
I=20
am very excited about the expanding future of the technology group and look=
=20
forward to the tremendous opportunities available to us.

Management Committee members
Philippe Bibi
Mohammad Fahim
Jay Fitzgerald
Tom Mathews
Mike McConnell
Mark Pickering
Everett Plant
David Pope
Jenny Rub