this is an extract of what I told Mr Luff .. perhaps he did not carefully read ALL of what I wrote before he wrote his letter to the PM?
" ..Yes, HCI was flawed right from the start, in it's assumption that there
is so great a "benefit" in people owning a personal computer that a
government needs to (indirectly) subsidize it. But we did not just sell
personal computers, we made them as well. Production requires a lot of
"risky" initial investment. RA obviously had made an investment decision
at that time, based on the reasonable assumption that any decrease in
the consumer market share due to saturation by "box shifters" like PC
World (or Tesco!) could be compensated for by shifting to HCI. This
assumption proved to be correct - up until the point HCI was stopped .."
IMHO (as Dougal perhaps remembers me saying from our many crew meetings) HCI was a BAD idea, and we should have moved a lot faster and a lot more agressively in response once it stopped. The problem was entirely with "management" - and that means Richard too - in not ADAPTING or EVOLVING fast enough, and in not living up to the (new) name of the company i.e. "technology" - by not DEVELOPING new audio-visual consumer products (other than the E-Box). As well as selling a complete range of home consumer electronics like Dixons Digital. After all, we couldn't be any worse than Dixons in terms of "technical support", and we had an "internet presence" and warehouse space.
Put it this way - we HAD an OPPORTUNITY. All the UK is going to go "digital television" in a few years. We already were set up in Production for connecting a PSU, DVD writer drive, and a hard disk to a computer mainboard - which could "upgrade" the video display from a DVD to HDMI, decode the DVD, and time shift record from a digital tuner. And even play PC games - if we used a "standard" mainboard and OS. But ALL we had to "satisfy" this opportunity was the "E-Box" - which was crap. Why not a full size optical drive - cheaper and more reliable? Why not enough space to put a "game quality" PCI-X video card - so "gamers" can play games in their living room? Why not a remote control built in - so it LOOKS like something you put under the telly? Why not an energy-saving on-off switch on the front and proper power management in the BIOS - so we could say how GREEN it was (unlike the el cheapo digibox recorder we also sold, that had a fan that ran ALL the time - even in standby)? Why not more than just one model?
We should have been able to source a local UK manufacturer for a range of PC cases that we designed ourselves, for a range of "E-Box" type computers, that would fit under the televisions that we assembled. We should have sold an "audio-video receiver", that would have also been designed to put under the telly, that would allow you to connect any USB MP3 player, that would connect to speakers and amplifiers that we could also assemble. We should have not given up on "production". Not when even now I STILL can't find any "convergence" of computer and "home entertainment" in Dixons Digital - yet.
However, I accept that HCI played a LARGE part in the demise of the company. We invested in a "production" capacity that in hindsight we should not have. And all Richard was doing last year was putting a positive spin on a bad situation.