Tom Peters/Y2K Seminar Chamber of Commerce

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Tom Peters/Y2K Seminar Chamber of Commerce
IndustryDammamSaudi Arabia30 May 2000
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BiasesAmericanCalifornianSilicon Valley
Resident 29 yearsI ardently believe in
the power of free markets and animated
entrepreneurs.
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1 Year 1.5 WalMarts03.27.99
167B03.27.00 555BP.S. WalMart 8 in 2000
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Pentium III 800MHz 42,893.00/Hermes Scarf
1,964.29Saving Private Ryan on DVD
874.75Mercedes-Benz 18.98Hot-rolled steel
0.19Source Fortune (3.20.00)
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Researchers say they have found a way to mate
human cells with circuitry in a bionic chip
The tiny device smaller and thinner than a
strand of hair combines a healthy human cell
with an electronic circuitry chip.AP/AOL/02-00
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No Wiggle Room! Incrementalism is innovations
worst enemy. Nicholas Negroponte
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Just Say No I dont intend to be known as the
King of the Tinkerers. CEO, large financial
services company (New York, 5-99)
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It means nothing less than the total reinvention
of this company.
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Jacques New New FordFord MSN CarPointFord
Yahoo!Ford OracleFord HP/MCIWorldcomEtc.Et
c.
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Theres going to be a fundamental change in
the global economy unlike anything we have had
since the cavemen began bartering.Arnold
Baker, Chief Economist, Sandia National
Laboratories
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I genuinely believe we are living through the
greatest intellectual moment in history.Matt
Ridley, Genome
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We are in a brawl with no rules.Paul Allaire
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Forget gt LearnThe problem is never
how to get new, innovative thoughts into your
mind, but how to get old ones out.
Dee Hock
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It is generally much easier to kill an
organization than change it substantially.
Kevin Kelly, Out of Control
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Seminar Y2K Brand EverythingDistinct or
Extinct!
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When asked to name just one big merger that had
lived up to expectations, the cochairman of
Goldman Sachs Investment Policy Committee
answered Im sure there are success stories out
there, but at this moment I draw a blank.
Mark Sirower, The Synergy Trap
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Talent and a 2T enterprise??????
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Acquisitions are about buying market share. Our
challenge is to create markets. There is a big
difference. Peter Job, CEO, Reuters
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Our ideal acquisition is a small startup that
has a great technology product on the drawing
board that is going to come out in six to twelve
months. We buy the engineers and the next
generation product.
John Chambers, Cisco
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R DIntels venture fund 275 investments,
8BSource Fast Company , eCompany
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Net World!Act now. Analyze later.Avram
Miller
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It used to be that the big ate the small. Now
the fast eat the slow.Geoff Yang, IVP/
(Institutional Venture Partners)
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C.E.O. to C.D.O.
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The Gales of Creative Destruction29M -44M
73M4M 4M - 0M
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Brand InsideBrand Org!
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108 X 5vs. 8 X 1 540 vs. 8
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And Now the Equivalent White Collar
Revolution!
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The Pincer 5Destructive entrepreneurs/ Global
CompetitionWhite Collar RobotsTHE INTERNET!
E.g. GM Ford DaimlerChryslerGlobal
Outsourcing E.g. India, MexicoSpeed!!
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RR on Assetless JB Sara LeeThe most
profitable businesses in the future will act as
knowledge brokers, linking insights into whats
available with insights into the customers
individual needs and preferences.
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The -!! in the middleJim Clark on
Healtheon/WebMD twixt docs, patients,
insurers and providers 275B of 400B in waste
source Michael Lewis, The New New Thing
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We want to be the air traffic controllers of
electrons.Bob Nardelli, GE Power Systems
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Buzzsaw.comBuilders, Owners, Architects,
Contractors, Suppliers4T industry5,300
commercial bldg. projects specs on-line 70 per
day
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12/31/00 (per Newsweek 04.24.00)75 of U.S.
universities will have on-line offerings/ 5.8
million studentsUnbundling profs jobs (star
lecturer, facilitator)/ Repackage content as
multi-media eventAAUP is angry! (Good
news!)355 studies Equal results! (and one
teachers union study that disagrees!)
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These are L.A.D.T.I.R.S.Life-and-death-to
tal-industry-reinvention-struggles
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Brand InsideBrand Work!
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So What will be the Basic Building Block of
the New Org Unit?
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Why are there no books on how to create a Cool,
Rocking, WOW-producing Finance Department?
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NAPM You are the Rock Stars of the B2B Age!
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support function / cost center /
bureaucratic dragor Rock Stars of the
Age of Talent
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Department Head to Managing Partner, HR
IS, etc. Inc.
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PSF 1.0Professional Service Firm Conversion Kit
/ Release 1.0
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The 7Ps of PSF 1.0Projects!Passion!Provocati
on!Partnership!Politics!Professionalism!Perfor
mance!
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Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec
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But Does It Matter ????On time, on budget
who cares? anon. seminar participant (4/99)
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You really got to me. So many of our information
technology projects take on a life of their own,
and I know theyll never end up as more than
mediocre successes. CEO, F100 financial
services company (10-98)
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Every project we take on starts with a question
How can we do whats never been done
before?Stuart Hornery, CEO, Lend Lease
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Culture of PrototypingEffective prototyping
may be the most valuable core competence an
innovative organization can hope to
have.Michael Schrage

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You cant be a serious innovator unless and
until you are ready, willing and able to
seriously play. Serious play is not an
oxymoron it is the essence of innovation.Micha
el Schrage, Serious Play
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The greatest dangerfor most of usis not that
our aim istoo highand we miss it,but that it
istoo lowand we reach it.Michelangelo
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Characteristics of the Also Rans

• minimize risk
• respect the chain of command
• support the boss
• make budget

Source Fortune on most admired
global corporations (10/26/98)
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1) Turn ignition key.2) Shift into drive.3)
Press foot firmly on the throat of
mediocrity.Source Mercedes ad
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Brand InsideBrand You!
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The fundamental unit of the new economy is not
the corporation, but the individual. Tasks arent
assigned and controlled through a stable chain of
command but are carried out autonomously by
independent contractors - e-lancers - who join
together in fluid and temporary networks to sell
goods and services. When the job is done, the
network dissolves and its members become
independent again, circulating through the
economy, seeking the next assignment.
Thomas Malone and Robert Laubacher

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DISTINCT OR EXTINCT!If there is
nothing very special about your work, no matter
how hard you apply yourself, you wont get
noticed and that increasingly means you wont get
paid much, either.
Wired
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Personal Brand Equity Evaluation

• I am known for 2 to 3 things next year at this
  time Ill also be known for 1 more thing.
• My current Project is challenging me
• New things Ive learned in the last 90 days
  include
• My public recognition program consists of
• Additions to my Rolodex in the last 90 days
  include
• My resume is discernibly different from last
  years at this time

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R.D.A.Rate 15?, 25?Therefore Formal
Investment Strategy/R.I.P.
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H.R. to H.E.D. ???HumanEnablement
Department
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• Firms will not manage the careers of their
  employees. They will provide opportunities to
  enable the employee to develop identity and
  adaptability and
• thus be in charge of his or her own career.
• Tim Hall et al., The New Protean Career
  Contract

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Seminar Y2K/Brand InsideMessage Distinct or
Extinct!
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Brand InsideBrand Talent!
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When land was the scarce resource, nations
battled over it. The same is happening now for
talented people.Stan Davis Christopher
Meyer, futureWEALTH
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Issue Y2KThe Great War for Talent!
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Alan Kay on PARCs Bob Taylor He was a
connoisseur of talent.
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A Connoisseur of Talent

• Spends time on Talent!
• Becomes a student of Talent!
• Puts Talent on the agenda!
• Practices D.I.Y.
• Uses Plain English! (If you want sunny ask
  for sunny!)
• Creates Workspaces that foster energy,
  entrepreneurship and creativity!
• Recruits from oddball places!/ Recruits
  Oddballs!

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Talent war, Web-speed!Every resume or
employment question that comes to Lucent via the
Web gets answered in 30 minutes or less.
24/7.Red Herring 06.00, on Lucent Director
of Recruitment Jim Baughman
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A Connoisseur of Talent

• Recruits M.I. (Gardner Logical-mathematical,
  linguistic, artistic, musical, bodily-kinesthetic,
  intrapersonal-self, interpersonal-others)
• Recruits arts!
• Becomes de facto C.D.O. (Chief Diversity Officer)
• Turns the pay scale upside down!/ Pays Talent!
• Rewards Promotes all on Talent Development
  Skills!
• Spouts the Gospel of Renewal! (R.D.A./ R.I.P.)

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Our business needs a massive transfusion of
talent. And talent, I believe, is most likely to
be found among non-conformists, dissenters and
rebels. David Ogilvy
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What Do We Do With Him?He grew his hair long,
played guitar in a rock band, chased girls, got
into trouble. At age 17 he was flogged by his
house master, who described him as the most
difficult boy Ive ever had to deal with.
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Elect Him Prime Minister!Tony Blair
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Conformity is the enemy of freedom and the
jailer of growth.J.F.K.
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Talent Brand
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Brand OutsideContextNo Commodities!
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In the Beginning The audit has become a
commodity.Big 5 audit partner to TP
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Quality Not Enough!Quality as defined by few
defects is becoming the price of entry for
automotive marketers rather than a competitive
advantage.J.D. Power
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Quality Not Enough!While everything may be
better, it is also increasingly the
same.Special issue on retailing, The
Sameness of Things, The New York Times
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Whats Special?Customers will try low cost
providers because the Majors have not given them
any clear reason not to.Leading Insurance
Industry Analyst (10-98)
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We make over three new product announcements a
day. Can you remember them? Our customers
cant!Carly Fiorina
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The surplus society has a surplus of similar
companies, employing similar people, with similar
educational backgrounds, working in similar jobs,
coming up with similar ideas, producing similar
things, with similar prices and similar
quality.Kjell Nordstrom and Jonas
Ridderstrale, Funky Business
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The 10X/10X Phenomenon10 Times Better/10
Times Less Different
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When we did it right it was still pretty
ordinary.Barry Gibbons on Nightmare No. 1
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Pretzel Crumb-less-ness Plus The Ritz Carlton
Experience enlivens the senses, instills
well-being and fulfills even the unexpressed
wishes and needs of the guest.from the Ritz
Carlton Credo
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Context No to inevitable commoditizationS1
Lead the Customer!S2 Master E-Commerce!S3
Think Global!S4 Women Rule! S5 Design Rules!
(too)S6 Its the Experience!Net Glorious Age
of the BRAND!
83
Context No to inevitable commoditizationS1
Lead the Customer!S2 Master E-Commerce!S3
Think Global!S4 Women Rule!S5 Design Rules!
(too)S6 Its the Experience!Net Glorious Age
of the BRAND!
84
Brand OutsideStrategy 1Lead the Customer!
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The customer is a rear view mirror, not a guide
to the future.George Colony, Forrester
ResearchIf you worship at the throne of the
voice of the customer, youll get only
incremental advances.Joseph Morone, President,
Bentley College
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Wealth in this new regime flows directly from
innovation, not optimization. That is, wealth is
not gained by perfecting the known, but by
imperfectly seizing the unknown.Kevin Kelly,
New Rules for the New Economy
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Amen!The Age of the Never Satisfied
CustomerRegis McKenna
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Context No to inevitable commoditizationS1
Lead the Customer!S2 Master E-Commerce!S3
Think Global!S4 Women Rule!S5 Design Rules!
(too)S6 Its the Experience!Net Glorious Age
of the BRAND!
89
Brand OutsideStrategy 2Use E-Commerce to
Re-invent the Business!
90
????35,000,000.
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Dells Web sales daily
92
2X 100 days (Internet traffic)2X 9 months
(network capacity)Source Red Herring (1-00)
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Web World/05.001B pages/7B hotlinks/1M per
dayFor the first time in history, people
everywhere have access to the thoughts, products
and writings of a large and growing percentage
of the earths population.The New
Yorker/05.29.00
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Tomorrow Today Cisco!90 of 14.4BSave 500M
(service and tech support)C.Sat e gtgt C.Sat
HCustomer Engineer Chat Rooms (1B?)
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B2B1999 2004 50X2004 7.4Source
GartnerGroup (per Reuters 1-26-00)
T
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GM/Ford/DaimlerChrysler (02-27)Covisint240B
(500B)I.P.O.
97
B2B No.1CarStation (auto-body shops),
ChemConnect (chemicals), Collabria (commercial
printing), DigitalThink (corporate training),
E-Steel (steel), Medibuy (medical supplies),
Portera (knowledge workers), Etc., Etc., Etc.,
Etc.
98
Goal?Drive profits to zero!Remember AMR
and dynamic pricing.
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Welcome to D.I.Y. Nation!Changes in business
processes will emphasize self service. Your costs
as a business go down and perceived service goes
up because customers are conducting it
themselves. Ray Lane, Oracle
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Anne Busquet/ American ExpressNot Age of the
InternetIs Age of Customer Control
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The Supply Side The Age of the ChoiceboardThe
War of the ChoiceboardsSource Adrian
Slywotzky, HBR 1-2/2000 lt1
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The Web enables total transparency. People with
access to relevant information are beginning to
challenge any type of authority. The stupid,
loyal and humble customer, employee, patient or
citizen is dead.Kjell Nordstrom and Jonas
Ridderstrale, Funky Business
103
In the network economy, the Website becomes the
companys primary interface to the customer. The
user interface becomes the marketing materials,
store front, store interior, sales staff and
post-sales support all rolled into one.Jakob
Nielsen, Designing Web Usability
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Banking is necessary. Banks are not.Dick
Kovacevich, Norwest/ Wells
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Even if executives of established businesses
grasp the impact of new technologies they still
face a massive competitive disadvantage precisely
because they are incumbents. They do complex
financial calculations and get bogged down in
internal political debates. Insurgents have no
such inhibitions. Philip Evans Thomas
Wurster, Blown to Bits
106

• if they set up a completely independent
  organization and let that organization attack the
  parent.
• Clayton Christensen, The
  Innovators Dilemma

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Where does the Internet rank in priority? Its
No. 1, 2, 3, and 4. Jack Welch

108
Ge Miscellany Polymerland 75 to
WebAppliances 5 to 20 cents Web vs. call
Service Rep 20 million calls per yearSource
Fast Company
109
There are 2 Kinds of Defensevs.Offense
Fend off upstarts.Reinvent our marketspace!
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BIG GUYS old economy That Get
ItFordGEMerrill LynchEnronWalMart
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No Room for Competent SortsBeer
WholesalersPersonal Trainers FitLinxxFinancial
PlannersCar Dealers LVA, MVA vs.
HVA Web-enhanced
112
Web Strategy GE Power SystemsLaunch and
Learn(4 sites in 30 days)
113
Its better to be first with less than last with
more. Success on the Web isnt just about time
to market, its also about time to learning.
Jeff Levy, eHatchery
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He who has the quickest O.O.D.A. Loops
wins!Observe. Orient. Decide. Act. / Col.
John Boyd
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Jargon Bath!Bureaucracy free Systemically
integrated Internet intense Knowledge based
Time and location free Instantly responsive
Customer centric Mass customization enabled.
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Translation Bureaucracy free Flat org, no
B.S.Systemically integrated Whole supply chain
tightly wired/ friction freeInternet intense
Do it all via the WebKnowledge based Open
accessTime and location free Whenever,
whereverInstantly responsive Speed
demonsCustomer centric Customer calls the
shotsMass customization enabled Every product
and service rapidly tailored to client
requirements
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E-business is the final nail in the coffin for
bureaucracy at GE.Jack Welch/GE Annual Report
2000
118
Context No to inevitable commoditizationS1
Lead the Customer!S2 Master E-Commerce!S3
Think Global!S4 Women Rule!S5 Design Rules!
(too)S6 Its the Experience!Net Glorious Age
of the BRAND!
119
Brand OutsideStrategy 3Think Global!
120
Rule 1 Theres no such thing as too small to
be global.
121
Rule 2If it is truly good then its good
enough for THE WORLD.
122
Rule 3When?Now.
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Rule 4Hang out vigorously!
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Rule 5 Find a modest-sized partner who
loves/ gets you!
125
Rule 6Tailor!! But dont give away the store.
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Rule 7Quality Guru Phil Crosby Do it right
the first time! notwithstanding, youll not
likely get it right the first time!
127
Context No to inevitable commoditizationS1
Lead the Customer!S2 Master E-Commerce!S3
Think Global!S4 Women Rule! S5 Design Rules!
(too)S6 Its the Experience!Net Glorious Age
of the BRAND!
128
Brand OutsideStrategy 4Women Rule!
129
For What Its Worth A view from the West
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?????????Home Furnishings 94Vacations
92Houses 91Bank Account 89Health Care
75Etc.
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3.3T 1.5T 4.8T Larger than Japan!
132
Most Under-reported story!9M/28M(1 of 4)/3.6T
gt Germany 400K in 72 132 since
92Sources NFWBO, Cognetics, Business Wire
(030600)
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Women 49 of Web users 6 of 10 new users 83
of wired women are primary decision makers for
family healthcare, finances, education.Source
Business Week (11-99)
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Yeow!1970 12000 50
135
Context No to inevitable commoditizationS1
Lead the Customer!S2 Master E-Commerce!S3
Think Global!S4 Women Rule! S5 Design Rules!
(too)S6 Its the Experience!Net Glorious Age
of the BRAND!
136
Brand OutsideStrategy 5Design Rules!
137
And Tomorrow Fifteen years ago companies
competed on price. Now Its quality. Tomorrow
its design.Robert Hayes
138
All Equal Except At Sony we assume that all
products of our competitors have basically the
same technology, price, performance and features.
Design is the only thing that differentiates one
product from another in the marketplace.Norio
Ohga
139
Design is treated like a religion at
BMW.Fortune (10/98)
140
Design as SoulWe dont have a good language to
talk about this kind of thing. In most peoples
vocabularies, design means veneer. But to me,
nothing could be further from the meaning of
design. Design is the fundamental soul of a
man-made creation.Steve Jobs
141
Context No to inevitable commoditizationS1
Lead the Customer!S2 Master E-Commerce!S3
Think Global!S4 Women Rule! S5 Design Rules!
(too)S6 Its the Experience!Net Glorious Age
of the BRAND!
142
Brand OutsideStrategy 6Its the Experience!
143
Experiences are as distinct from services as
services are from goods.Joseph Pine James
Gilmore, The Experience Economy Work Is Theatre
Every Business a Stage
144
Mantra Any good can be ing-edthe driving
experiencethe pumping experiencethe sitting
experiencethe reading experiencethe washing
experiencethe cooking experienceJoseph Pine
James Gilmore, The Experience Economy Work Is
Theatre Every Business a Stage
145
Experience Rebel Lifestyle!What we sell is
the ability for a 43-year-old accountant to dress
in black leather, ride through small towns and
have people be afraid of him.Harley exec,
quoted in Results-based Leadership
146
This is the end of the pure product era. For
instance, car makers are beginning to understand
that the car is a platform for delivering
services that drive the customer
experience.Carly Fiorina, HP _at_ Comdex 99
147
Context No to inevitable commoditizationS1
Lead the Customer!S2 Master E-Commerce!S3
Think Global!S4 Women Rule! S5 Design Rules!
(too)S6 Its the Experience!Net Glorious Age
of the BRAND!
148
Brand OutsideBRAND POWER!
149
Brand It! Now, More Than Ever!The increasing
difficulty in differentiating between products
and the speed with which competitors take up
innovations will assist in the rise and rise of
the brand.Gillian Law and Nick Grant,
Management New Zealand
150
No Room for Brands?NikeSaturnCNNAmerica
OnlineCharles SchwabStarbucksThe GapIntelEtc.
151
Brand Trust!Most buyers do not have a clue
whether anybody else makes a better
microprocessor, but Intel Inside has become a
trust mark - a trademark that consumers put
their faith in.The Economist
152
Consumers dont simply buy products, they buy
attitudes as well. When confronted with
proliferation and diversity, choices become
increasingly informed by belief. Consumers want
to know who is behind the products that they buy.
They want to know the company. They want to know
what you think.Jesper Kunde, Corporate
Religion
153
Corporate Religion is a completely new way of
thinking about companies. Today, the product is
still the main communication highway in the
company. When companies make the shift to selling
solutions, brands and attitudes communicating
the companys attitudes and values becomes the
decisive parameter for success. It demands that
you find out who you are as a company.Jesper
Kunde, Corporate Religion
154
Brand Power Calling the Corporate
Shrink!Organizational Psychotherapy/WHO WE
ARE!
155
Brand You Must Care!Success means never
letting the competition define you. Instead you
have to define yourself based on a point of view
you care deeply about. Tom Chappell, Toms of
Maine
156
We are in the twilight of a society based on
data. As information and intelligence become the
domain of computers, society will place more
value on the one human ability that cannot be
automated emotion. Imagination, myth, ritual -
the language of emotion - will affect everything
from our purchasing decisions to how we work with
others. Companies will thrive on the basis of
their stories and myths. Companies will need to
understand that their products are less important
than their stories.Rolf Jensen, Copenhagen
Institute for Future Studies
157
Rules of Radical MarketingLove Respect Your
Customers!Hire only Passionate
Missionaries!Create a Community of
Customers!Celebrate Craziness!Be insanely True
to the Brand!Sam Hill Glenn Rifkin, Radical
Marketing (e.g., Harley, Virgin, The Dead, HBS,
NBA)
158
Context No to inevitable commoditizationS1
Lead the Customer!S2 Master E-Commerce!S3
Think Global!S4 Women Rule! S5 Design Rules!
(too)S6 Its the Experience!Net Glorious Age
of the BRAND!
159
Brand LeadershipPassion Rules!
160
Brand Leadership!A key perhaps the key to
leadership is the effective communication of a
story.Howard Gardner Leading Minds An
Anatomy of Leadership
161
Leadership is a performance. You have to be
conscious of your behavior, because everybody
else is. Carly Fiorina
162
Brand LeadershipENTHUSIASM RULES!I am a
dispenser of enthusiasm./ Ben Zander
163
I dont care how old you are. I focus on energy
level.David Beirne, VC/Headhunter, on Dotcom
recruiting
164
Talent War, Marketplace WarThe successful
company has to create an environment that imbues
its employees with a sense of passion.Joe
Nocera, eCompany, on David Pottruck
165
The challenge for IBM, ATT and other mainstream
companies is to re-instill a sense of adventure
in recruits.Burke Stinson, ATT
166
Ann Richards DogmaShow up!Know your
message!PUT YOURSELF AT RISK EVERY DAY!
167
(Personal) Accountability?!WHERE WERE YOU
DURING THE GREAT ENTERPRISE REVOLUTION OF Y2K?
168
If things seem under control, youre just not
going fast enough.Mario Andretti