article skilling speech aa energy conference drive succeed enron prefers toyota gm prosper new energy economy enron coo jeffrey k skilling says oil gas companies need trash traditional business models instead reshape resemble toyota captured imagination pocketbook u consumers 30 years ago somewhat back future treatise enron expects continue monumental success skilling told arthur andersen energy conference attendees define industry rather skills base toyota changed u auto industry outsourcing production offering customers exactly wanted cheaper faster energy industry thing future told houston audience 1982 energy industry rigid industry said pointing similar business model used general motors ford motor co companies every bit manufacturing process keeping pieces within corporate structure toyota turned things upside customer wanted different radio toyota relied outside producers stop production line please customer able faster enron used model shape achievements packaging components customers save time money energy companies adopting method many ways skilling said enron views toyota energy industry feel provide components package way customer wants pervasive trend seeing industry enron shareholder return 1 333 10 years january 1990 november 2000 saw changes required new technology deregulation redefined core competencies grew pipeline business skilling said remain successful houston based corporation plans continue morph hinges one good idea enron 1980 vertically integrated structures dominated industry structures starting break energy industry reason deregulation fundamentally better business structure two reasons supplied cheaper cost components allows change much quickly instead bigger energy companies skilling said expects see many smaller companies maybe thousands tied together electronically vertically transformation interaction costs collapsing across economy example interaction costs skilling used bank tellers 1985 cost bank 1 50 transaction bank internet today costs bank less penny drop interaction costs major reason enron finds bandwidth market attractive 1995 length time provision bandwidth six eight months today two three months next year skilling predicts take one second bandwidth demand next year said added enron plans leader field similarly long term gas contracts 1982 took two three years execute 1989 took nine months three years ago took two weeks execute today using enrononline similar internet trading systems takes less one second sudden world changed manufacture cost interactive costs collapse think see collapse demise integrated energy companies around world skilling said survive skilling advised companies virtually reintegrate need old vertically integrated mind set tough give know still power producers buying gas reserves get makes sense whatsoever get online lowest cost business strategy dependent hard row hoe stage production become increasingly competitive next 10 years predicted enron president competing three people west texas thousands around world opportunities exist said companies go flow find ways compete create low cost dependable market interfaces provide packaged turnkey solutions customers complex structures differentiation customization threat old way business said tremendous opportunity things customer never able suggested new energy model based brainpower networking offering real options customers moving quickly entrepreneurial enron whole premise able change responding reacting environment getting components together packaging customer