Distinct or … ExtinctTom Peters Seminar2000

2000 ASTA World Travel Congress

Las Vegas26September

N.W.O./Auto Mirror per Gentex: Portal for Wireless, Internet, Navigation, Etc.

Cell phones, Voice mail, email, Internet access

Mike Charles. Stanford history

prof. Whirlpool fridge. Out

of 2% milk. Tap keypad on door. Webvan delivers in hours. Next, he sends his

washer an email …Source: Business Week (09.00)

NOW THAT’S B-I-G!

“The period 2000-2002 will bring the single greatest change in

worldwide economic and business conditions since we came down from the trees.”

David Schneider & Grady Means, MetaCapitalism

The Organization:

Lean, Linked & Electronic

And Now the Equivalent …

White Collar Revolution!

RR on “Assetless” [J.B.] Sara Lee

“The most profitable businesses in the future will act as knowledge brokers, linking insights into what’s available

with insights into the customer’s individual needs

and preferences.”

Advance Paradigm

Data on 165,000,000 prescriptions per year; docs and insurers have access to

records

Reduces med errors; saves $2.88 per scrip [prescribing errors]; docs save

$14,000 per year in review time

Rev in ’99: $2B; $477M in ’98Source: Business Week (09.00)

The Individual:

Distinct … or

Extinct

DISTINCT … OR EXTINCT!

“If there is nothing very special about your work, no matter how hard you apply yourself, you won’t get noticed and that increasingly means you won’t get paid much, either.”

Michael Goldhaber, Wired

The Problem:

The Commodity Trap

Quality Not Enough!

“While everything may be better, it is also

increasingly the same.”Paul Goldberger on retail, “The Sameness

of Things,” The New York Times

“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

Funky Business: “To succeed we must stop being so **!#*+%!

normal. In a winner-takes-all world,

normal = nothing.”

Fighting Back:

Use E-Commerce to Re-invent Everything!

www.cyveillance.com

08.30.2000/1221AM:

2,461,940,629

www.cyveillance.com

09.26.2000/0438AM:

2,661,492,286

27 days, 4 hours, 17 minutes …

+199,551,657

Tomorrow Today: Cisco!

90% of $20B (=$50M/day)

Savings in service and support from customer self-

management: $550M

COMMUNITY SERVICES!/CUSTOMER CONTROL!

Tomorrow Today: Cisco!

90% of $20B; save $550M

C.Sat e >> C.Sat H

Customer Engineer Chat Rooms/Collaborative

Design ($1B “free” consulting) (45,000 customer problems a week solved via

customer collaboration)

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

Anne Busquet/ American Express

Not: “Age of the Internet”

Is: “Age of Customer Control”

I Can Immediately …

Shop for $1,000,000 homes or $1.95 office supplies, at best price and with best advisors

Manage all my financial dealingsWork with my doc, or world’s best medical experts, or

humble support groups, on any health issueRecruit talent to help me with any project

Develop professional docs collaboratively, with anyoneShare my ideas with the worldChat with anyone, anywhere

Research anythingTake a course on any topic, from cooking to software

Stay in touch with my 90 year old momPlay a gajillion games to while away the time

Message: One can do [very] sophisticated

stuff on the Web!

“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

“The moral is that in an imperfect world of customer

service, most customers prefer to cut to the chase

and help themselves.”

Adrian Slywotzky & David Morrison, Mercer Consulting

SWA

Simple!!!!!!!!!!!! (customers call because the process is so easy they can’t

believe they’re done)

30% of revenues directly from site (vs. 6% for others)

Source: Business Week (09.00)

Amen!

“The Age of the Never Satisfied

Customer”Regis McKenna

Progressive

“We don’t sell insurance anymore.

We sell speed.” – Peter Lewis

Digital cameras, wireless Net links,

etc.: SOME CLAIMS PAID WITHIN 20 MINUTES!

Source: Business Week (09.00)

Shop in your Underwear

Source: SM’d logo for www.ae.comae = American Eagle Outfitters

“Banking is

necessary. Banks are not.”

Dick Kovacevich, Wells Fargo

“It” is real! It is “Life and Death”!Dream BIG!

Start Now! Study Hard! Play Hard! Play Fast! Go on Offense!

Hire great folks! (They ain’t cheap. They are young!)

Don’t cut corners on infrastructure!

Rem: “Age of the Never Satisfied Customer”!

We ain’t seen nothin’ yet!

Fighting Back:

Providing Value-added Services!

B2B

1999 – 2004: 50X

2004: $7.4 TrillionSource: GartnerGroup (per Reuters 1-26-00)

“Net Nips Real Estate Sales Fees”

Headline, p.1B, USAToday 07.05.00*

*Homebytes.com, eHomes.com, YourHomeDirect.com, etc.

Message: “BOX” SELLERS LOSE!

Message: Racing up the V.A. Ladder. Doing More & More … & More & More & More … for/with the Customer and the Supply-Demand Chain!

09.11.2000: HP bids $18,000,000,000

for PricewaterhouseCoopers

Consulting bus! (31,000 bods)

“We want to be the air traffic

controllers of electrons.”

Bob Nardelli, GE Power Systems

Can you ignore, dismiss, and mainly

grouse about air travel & hotels for

the likes of me????

Fighting Back:

It’s the Experience!

“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

“The [Starbucks] Fix” Is on …

“We have identified a ‘third place.’ And I really believe that sets us apart. The third place is

that place that’s not work or home. It’s the place our

customers come for refuge.”Nancy Orsolini, District Manager

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

“Car designers need to create a story. Every car provides an

opportunity to create an adventure. …“The Prowler makes you smile. Why? Because it’s focused. It has a plot, a

reason for being, a passion.”

Freeman Thomas, co-designer VW Beetle; designer Audi TT

Hmmmm(?): “Only” Words …

StoryAdventure

Smile Focus

PlotPassion

WHAT’S THE [your] PLOT?

PlotWilliams Sonoma = 6 [was 10]

Crate & Barrel = 8Sharper Image = 9+

Smith & Hawken = 8+Vermont Country Store = 8+

Garnet Hill = 9L.L. Bean = 5 [was 9+]

Land’s End = 7+Colonial Williamsburg = ?

Fighting Back:

Women Rule!

$4.8T > Japan

9/27.5/3.6T > Germany

?????????

Home Furnishings … 94%Vacations … 92%

Houses … 91%Bank Account … 89%

Health Care … 75%Etc.

Women … 50+%(!!!) of Web users; 6 of 10 new users; 83% of wired women are primary decision makers for family

healthcare, finances, education.

Source: Business Week; Jupiter Communications

Yeow!

1970 … 1%

2002 … 50%

OPPORTUNITY

NO. 1!

Read This Book …

EVEolution: The Eight Truths of Marketing to Women

Faith Popcorn & Lys Marigold

EVEolution: Truth No. 1

Connecting Your Female Consumers to Each

Other Connects Them to Your Brand

“The ‘Connection Proclivity’ in women starts early. When asked,

‘How was school today?’ a girl usually tells her mother every

detail of what happened, while a boy might grunt, ‘Fine.’ ”

EVEolution

Weight Watchers International “Model”

“What if ExxonMobil or Shell dipped into their credit card database to help commuting women

interview and make a choice of car pool partners?”

“What if American Express made a concerted effort to connect up female empty-nesters

through on-line and off-line programs, geared to help women re-enter the workforce with today’s

skills?”

EVEolution

Speaking of Enormous

[Missed] [Huge] Opportunities ...

Subject: Marketers & Stupidity

It’s 18-44, stupid!

Subject: Marketers & Stupidity

Or is it: 18-44 is stupid, stupid!

2000-2010 Stats

18-44: -1%55+: +21%

(55-64: +47%)

Aging/“Elderly”

$$$$$$$$$$$$“I’m in charge!”

Priorities: Aging/“Elderly”

Experiences … Convenience … Comfort

… Access … Respect!

Fighting Back:

BRAND POWER!

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, Tom’s of Maine

“In the funky village, real competition no longer revolves

around marketshare. We are competing for attention –

mindshare and heartshare.”Kjell Nordstrom and Jonas Ridderstrale,

Funky Business

Leadership:

Passion Rules!

“Create a Cause, not a ‘business.’ ”

Gary Hamel, Fortune (06.00), on re-inventing a company (Exemplar #1:

Charles Schwab)

Brand Leadership:ENTHUSIASM RULES!

“I am a dispenser of enthusiasm.”/ Ben

Zander