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Distinct or … ExtinctTom Peters Seminar2000
Lincoln Mercury
eFutures ForumSeattle
18 August 2000
Summer 2000 …
KOA wires up!
An Age of Passion:1 Year = 1.5 Wal*Marts
03.27.99: $167B03.27.00: $555B
P.S.: Wal*Mart = #8 in 2000
It Makes John Chambers Smile!
“We have in our house, among two working parents, two teens and an 8-year-
old, five computers (both Mac and Windows), four cell phones, seven phone lines, two Palm Pilots, one DSL, two ISP
connections, a collection of personal domain names, a CD burner, a scanner
and one AOL account.”Michael Wolff, writer [as reported in New York 06.00]
No Wiggle Room!
“Incrementalism is innovation’s worst enemy.”
Nicholas Negroponte
“It means nothing less than the total
reinvention of this company.”
Jacques Nasser
“This whole ebusiness movement is the
most significant thing I’ve seen in my
business career.”
Richard Wagoner, Business 2.0,
08.22.00
“There is probably going to be more confusion in
the business world in the next decade than there has been in any decade
in history.”Steve Case (2-00)
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
“There’s 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
Part I: Brand InsidePart II: Brand Outside
Part III: Brand Leadership
Brand Inside
Brand Org: Lean, Linked,
Electronic & Malleable
“We want to be the air traffic controllers
of electrons.”Bob Nardelli,
GE Power Systems
Cemex and FDX!
[Pervasive “Risk Markets”
“For a dollar a month, an Ohio insurance company will rent you a GPS receiver to
install in your car. As part of your policy, it signals how often, when, and which highways you drive and into which
neighborhoods you go. The premium you pay reflects your actual driving risk.”
Stan Davis & Christopher Meyer, futureWEALTH]
Brand Inside
Brand Talent: The Great War for Talent
“When land was the scarce resource, nations battled
over it. The same is happening now for talented people.”
Stan Davis & Christopher Meyer, futureWEALTH
John Chambers “Gets it”!!
“This is the Age of Ageism: The real innovator’s dilemma isn’t ‘disruptive technologies;’ it’s
the relentless rise of the quasi-adolescents who wield them.”
Michael Schrage
“A good plant engineer in a paper mill may create $100K to $300K in value per year. An
outstanding software product developer may create a product worth $1M to $300M. Talented people are less likely to wait their turn. We
used to view young people as trainees; now they are authorities. Arguably this is the first time the older generation can –
and must – leverage the younger generation very early in their careers”
Ed Michaels, War for Talent (05.17.00)
There is no “talent shortage” …
if …
you are a GPTW*
*Great Place To Work
“TAKE THIS QUICK QUIZ: Who manages more things at once? Who puts more effort into their appearance? Who usually takes care of the details? Who finds it
easier to meet new people? Who asks more questions in a conversation? Who is a better
listener? Who has more interest in communication skills? Who is more inclined to get involved?
Who encourages harmony and agreement? Who has better intuition? Who works with a longer ‘to do’ list? Who enjoys a recap to the day’s events? Who is
better at keeping in touch with others?”
Source: Selling Is a Woman’s Game: 15 Powerful Reasons Why Women Can Outsell Men, Nicki Joy &
Susan Kane-Benson
Part I: Brand InsidePart II: Brand Outside
Part III: Brand Leadership
Forces @ Work II
The Commodity Trap
“The ‘surplus society’ has a surplus of similar companies, employing similar
people, with similar educational backgrounds, coming up with similar ideas, producing similar things, with similar prices and similar quality.”
Kjell Nordstrom and Jonas Ridderstrale, Funky Business
Brand Outside
Strategy 1:
Lead the Customer!
“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
Brand Outside
Strategy 2:Use E-Commerce to
Re-invent Everything!
OVERVIEW
www.cyveillance.com
08.12.2000/0509AM:
2,337,711,647
www.cyveillance.com
08.18.2000/0511AM:
2,380,854,946
144 Hours, 02 Minutes …
+43,143,299
Tomorrow Today: Cisco!
87% of $20B*(Cisco Connection ONLINE)
Save $500M(service and tech support)
* = $48,000,000 … per DAY
Enron: $400B in annual on-line trading transactions. [50% total bus.] Much stimulated by the
Web per se.
Schwab: $25B per week in asset transactions [80% of trades]
[Transition to e.Schwab: Rev. fell, then quickly doubled]
W.W. Grainger*
2X phone/fax
*$220B “MRO” market (per Business 2.0/02-00)
COMMUNITY!/ COMMUNITY SERVICES!
Tomorrow Today: Cisco!
87% of $20B(Cisco Connection ONLINE)
Save $500M(service and tech support)
C.Sat e >> C.Sat HCustomer Engineer
Chat Rooms/Collaborative Design ($1B “free” consulting)
Cherry PickingVertical Markets
Plasticsnet.com: $370B; sellers pay $5K to $8K for
“storefront”; 5% to 10% cut
Hook: community services (database, catalogs, forums,
industry job bank, etc.)
The Motley Fool Secret?
“Strangers helping strangers”“Fools’ Logic,” IW
Bruce Butterfield, CEO, The Forbes Group …
“self-forming groups”“catalyst for community”
“participant-determined world”
Source: Association Executive 4/00
B2C Success
“Genuine brand strength”
“Build community”Source: Geoffrey Moore
CUSTOMER PERSPECTIVE:
D.I.Y./ CONTROL
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
Shop in your Underwear
Source: SM’d logo for www.ae.comae = American Eagle Outfitters
Anne Busquet/ American Express
Not: “Age of the Internet”
Is: “Age of Customer Control”
Amen!
“The Age of the Never Satisfied
Customer”Regis McKenna
I’net Freedom Manifesto
I AM IN CHARGE HERE! I CAN DO WHATEVER I NEED OR WANT TO DO
WHENEVER I WANT TO DO IT!
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
“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
K.I.S.S.
“In the network economy, the Website becomes the company’s 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
“Most companies would do more business on the Internet if they
fired their entire marketing department and replaced it with
people who could produce interactive content that actually made it easier for users to buy.”
Jakob Nielsen, Nielsen Norman Group
Red Herring (01/00)
75% of online shoppers don’t complete their
purchase!
Case in Point …
L.L.Bean’s incredibly awful, amazingly
pathetic, hopelessly misleading, purely putrid “Web site” (TP/08.01.00)
Nielsen/Designing Web Usability
All Web projects are customer-interface projects! Simplicity rules!
Make it easy for customers to perform useful tasks!
Less “cool,” more useful!Speed rules!
RADICAL STRATEGIES
REQUIRED
“Where does the Internet rank in priority?
It’s No. 1, 2, 3, and 4.” Jack Welch
There are 2 Kinds of …
Defense*
vs.
Offense**
*Fend off upstarts.**Reinvent our marketspace!
“One cannot be tentative about this. Excuses like ‘channel
conflict’ or ‘marketing and sales aren’t ready’ cannot be allowed. Delay and you risk being cut out of your own market, perhaps not by traditional competitors but by companies you
never heard of 24 months ago.”
Jack Welch [07.00/Forbes.com]
ACT NOW, ACT FAST,
KEEP ACTING
“It’s better to be first with less than last with more. Success on
the Web isn’t just about time to market, it’s also about
‘time to learning.’ ”
Jeff Levy, eHatchery
SUMMARY: REINVENT
EVERYTHING
WebWorld = Everything
Web as a way to run your business’ innardsWeb as connector for your entire supply-demand chain Web as “spider’s web” which re-conceives the industry
Web/B2B as ultimate wake-up call to “commodity producers”
Web as the scourge of slack, inefficiency, sloth, bureaucracy, poor customer data
Web as an Encompassing Way of LifeWeb = Everything (P.D. to after-sales)
Web forces you to focus on what you do bestWeb as entrée, at any size, to World’s Best at Everything
as next door neighbor
“There is no use trying,” said Alice. “One can’t believe impossible things.”
“I dare say you haven’t had much practice,” said the Queen. “When I was
your age, I always did it for half an hour a day. Why, sometimes I’ve
believed as many as six impossible things before breakfast.”
Lewis Carroll
I’net …
… allows you to dream dreams you could never have imagined before!
The Web …
A DREAMER’S MEDIUM!
“It” is real! It is “Life and Death”!Dream BIG!
Start Now! Study Hard! Play Hard! Play Fast! Go on Offence!
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!
“Banking is
necessary. Banks are not.”
Dick Kovacevich, Norwest/ Wells
Brand Outside
Strategy 3:
It’s the Experience!
“Experiences are as distinct from services as services are from
goods.”Joseph Pine & James Gilmore, The
Experience Economy: Work Is Theater & 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 …
AdventureSmile FocusPlot
Passion
Story
“This story is bigger than shifting market share or selling a few more cars, or dodging the dealer by buying direct.
Rather, it’s about the redefinition of the automobile itself, and the relationship of its owner to its maker. Think of the auto as a
rolling wireless portal on wheels, connecting you to your kitchen, your bank,
your kids, your office.”
Business 2.0, “Four Wheel Drive,” 08.22.00
Brand Outside
Strategy 4:
Women Rule!
?????????
Home Furnishings … 94%Vacations … 92%
Houses … 91%Bank Account … 89%
Health Care … 75%Etc.
48% working wives > 50%80% checks
61% bills53% stock (mutual fund boom)
43% > $500K95% financial decisions/
29% single handed
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)
OPPORTUNITY
NO. 1!*
[* No shit!]
Read This Book …
EVEolution: The Eight Truths of Marketing to Women
Faith Popcorn & Lys Marigold
Venus and Mars!
“Men and women don’t think the same way, don’t communicate the same
way, don’t buy for the same reasons.
“He simply wants the transaction to take place. She’s interested in creating a relationship. Every place women go,
they make connections.”
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
The New New Jiffy Lube
“In the male mold, Jiffy Lube was going all out to deliver quick, efficient service. But, in the
female mold, women were being turned off by the ‘let’s get it fixed fast, no conversation
required’ experience.”
New JL: “Control over her environment. Comfort in the service setting. Trust that her car
is being serviced properly. Respect for her intelligence and ability.”
EVEolution
27 March 2000: email to TP from Shelley Rae Norbeck
“I make 1/3rd more money than my husband does. I have as much financial
‘pull’ in the relationship as he does. I’d say this is also true of most of my women
friends. Someone should wake up, smell the coffee and kiss our asses long enough
to sell us something! We have money to
spend and nobody wants it!”
Part I: Brand InsidePart II: Brand Outside
Part III: Brand Leadership
Brand Leadership
Passion Rules!
“Create a Cause, not a ‘business.’ ”
Gary Hamel, Fortune (06.00), on re-inventing a company (Exemplar #1:
Charles Schwab)
“Reward excellent failures. Punish
mediocre successes.”
Phil Daniels, Sydney exec
The greatest dangerfor most of us
is not that our aim istoo high
and we miss it,but that it is
too lowand we reach it.
Michelangelo