Distinct or … Extinct Tom Peters Seminar2000 eLink2000 Commerce One Las Vegas 19 September 2000

: Would Mr. Peters mind if we edited out of the handout the part about the eCommerce? It will upset our people.

The period 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 corporation as we know it, which is now 120 years old, is not likely to survive the next 25 years. Legally and financially, yes, but not structurally and economically. Peter Drucker, Business 2.0 (08.00)

Part I: Brand Inside Part II: Brand Outside Part III: Brand Leadership

Work I The Destruction Imperative!

It is generally much easier to kill an organization than change it substantially. Kevin Kelly, Out of Control

The [New] G e Way DYB.com

The Gales of Creative Destruction +29M = -44M + 73M +4M = +4M - 0M

Brand Inside Brand Org: Lean, Linked, Electronic & Malleable

And Now the Equivalent … White Collar Revolution!

A bureaucrat is an expensive microchip. Dan Sullivan, consultant and executive coach

Assetless Company John Bryan, CEO, on selling all Sara Lees manufacturing

Cisco, Dell = Brand-owning companies who sell Customer Satisfaction Source: David Schneider & Grady Means, MetaCapitalism

Brand Inside Brand Work: The WOW Project

The Raw Material … The WOW Project!

Reward excellent failures. Punish mediocre successes. Phil Daniels, Sydney exec

Brand Inside Brand Talent: The Great War for Talent

There is no talent shortage … if … you are a GPTW* *Great Place To Work

The Case

When land was the scarce resource, nations battled over it. The same is happening now for talented people. Stan Davis & Christopher Meyer, futureWEALTH

The Response

Home Depot: 7 new growth initiatives ($20B to $100B in 5-7 years) Arthur Blank: BEST PERSON IN THE WORLD TO HEAD EACH INITIATIVE E.g.: COO of IKEA to head international expansion Ed Michaels, War for Talent ( )

From 1, 2 or 3 [JW] to … Best talent in each industry segment to build best proprietary intangibles [EM] Source: Ed Michaels, War for Talent ( )

Top performing companies are two to four times more likely than the rest to pay what it takes to prevent losing top performers. Ed Michaels, War for Talent ( )

The Cracked Ones Let in the Light 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

This is the Age of Ageism: The real innovators dilemma isnt disruptive technologies; its the relentless rise of the quasi- adolescents who wield them. Michael Schrage

The challenge for IBM, AT&T and other mainstream companies is to re-instill a sense of adventure in recruits. Burke Stinson, AT&T

N.W.O.: Was-Is Pine-paneled Office Address: 1 Big Man Plaza Secretary Suit Formal Rank conscious Pretense (Failures are for fools.) I love Yes men Self-contained Seat 9B, UA233 Address: Typing: 60 WPM Casual M-F Approachable We are a HOT Team Screwing up is as normal as breathing I love Misfits! I love partners

Part I: Brand Inside Part II: Brand Outside Part III: Brand Leadership

Work II The Commodity Trap

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

We make over three new product announcements a day. Can you remember them? Our customers cant! Carly Fiorina

Brand Outside Strategy 1 : Lead the Customer!

Our strategies must be tied to leading edge customers on the attack. If we focus on the defensive customers, we will also become defensive. John Roth, CEO, Nortel

Brand Outside Strategy 2 : Use E-Commerce to Re-invent Everything!

OVERVIEW

Tomorrow Today: Cisco! 90% of $20B (=$50M/day) 75% mfg. outsourced; 50% of orders routed to supplier who ships direct Gross margin:65%; Net margin: 28% Savings in service and support from customer self-management: $550M

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]

COMMUNITY!/ CUSTOMER CONTROL!

Anne Busquet/ American Express Not: Age of the Internet Is: Age of 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)

Ciscos Secret Trust (Openness to partners!!!!!)

RADICAL STRATEGIES REQUIRED

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

One cannot be tentative about this. Excuses like channel conflict or marketing and sales arent 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]

REINVENT EVERYTHING

Jargon Bath! Bureaucracy free … Systemically integrated … Internet intense … Knowledge based … Time and location free … Instantly responsive … Customer centric … Mass customization enabled.

Translation … Bureaucracy free = Flat org, no B.S. Systemically integrated = Whole supply chain tightly wired/ friction free Internet intense = Do it all via the Web Knowledge based = Open access Time and location free = Whenever, wherever Instantly responsive = Speed demons Customer centric = Customer calls the shots Mass customization enabled = Every product and service rapidly tailored to client requirements

Message: There is no such thing as an effective B2B or Internet-supply chain strategy in a low-trust, bottlenecked- communication, six-layer organization.

WebWorld = Everything Web as a way to run your business innards Web as connector for your entire supply-demand chain Web as spiders 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 Life Web = Everything (P.D. to after-sales) Web forces you to focus on what you do best Web as entrée, at any size, to Worlds Best at Everything as next door neighbor

Supply Chain 2000: When Joe Employee at Company X launches his browser, hes taken to Company Xs personalized home page. He can interact with the entire scope of Company Xs world – customers, other employees, distributors, suppliers, manufacturers, consultants. The browser – that is, the portal – resembles a My Yahoo for Company X and hooks into every network associated with Company X. The real trick is that Joe Employee, business partners and customers dont have to be in the office. They can log on from their own cell phone, Palm Pilot, pager or home office system. Red Herring ( )

There is no use trying, said Alice. One cant believe impossible things. I daresay you havent had much practice, said the Queen. When I was your age, I always did it for half an hour a day. Why, sometimes Ive believed as many as six impossible things before breakfast. Lewis Carroll

The Web … A DREAMERS MEDIUM!

Inet … … allows you to dream dreams you could never have imagined before!

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 aint cheap. They are young!) Dont cut corners on infrastructure! Rem: Age of the Never Satisfied Customer! We aint seen nothin yet!

Banking is necessary. Banks are not. Dick Kovacevich, Norwest/ Wells

Brand Outside Strategy 3 : Fighting Back via Systems Integration!

THE CASE

GM/Ford/DaimlerChrysler (02-27) Covisint $240B (+$500B)

Solectron, IBM, Nortel, Matsushita, Seagate, Etc. E2Open.com $700 B

Goal? Drive profits to zero!* *Remember AMR and dynamic pricing.

Net Nips Real Estate Sales Fees Headline, p.1B, USAToday * *Homebytes.com, eHomes.com, YourHomeDirect.com, etc.

Message: BOX SELLERS LOSE!

THE RESPONSE

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

: HP bids $18,000,000,000 for PricewaterhouseCoopers IT consulting bus!

We want to be the air traffic controllers of electrons. Bob Nardelli, GE Power Systems

Part I: Brand Inside Part II: Brand Outside Part III: Brand Leadership

Brand Leadership Passion Rules!

Brand Leadership! A key – perhaps the key – to leadership is the effective communication of a story. Howard Gardner Leading Minds: An Anatomy of Leadership

Brand Leadership: ENTHUSIASM RULES! I am a dispenser of enthusiasm./ Ben Zander

A leader is a dealer in hope. Napoleon

Id rather regret the things I have done than the things I have not. Lucille Ball

Message: eCommerce is not a technology play! It is a relationship, partnership, organizational and communications play, made possible by new technologies.