A presentation by Oren Harari, Ph.D Edited version. All rights reserved. Do not copy or distributre S.I.O.R

Success Complacency Failure

Factors Collide Deregulation Demographic Changes Rising Customer Expectations Technological Advance More Choices NEW REALITY New Knowledge Global Shifts New Competitors

Symptoms of a Copycat Economy Overcapacity Gluts Shakeouts Price Wars Maturation Saturation Convergence

Commodity Hell “Either you innovate or you’re in commodity hell. If you do what everybody else does, you have a low margin business. That’s not where we want to be.” “While they share many attributes, there is one thing that sets all great companies apart—they define and lead the agendas for their industries.”

Being Relevant in a Copycat Economy Commodity & Imitation

“In business, paranoia is not psychosis; it’s a reality and it’s probably survival.” venture capitalist, Frederich Adler

The Total Value Concept Generic Value Expected Value Augmented Value Potential Value

Welcome to “My Virtual Model Experience”

Brand design: glass, stainless steel, wood Hub: experiential, interactive “Clean”, clutterless: minimal (and only great) products Easy Pay, easy help Genius Bar; the Studio Huge buzz $4000/sq.ft (Saks $362; Best Buy $930)

From To responding leading

Take your customer to an impossible place

“WOW!” glow tingle bewitch dazzle thrill delight

New Value:The Customer’s Perspective Does the vendor know me (my business) so well that he/she can anticipate what I might want before I do? And proactively shows me? How effective is the vendor in devising a creative solution to my real problems and unique needs? (Even unspoken ones?) Is it all easy? Is it fun? Am I amazed by the whole deal? Can I count on this vendor to continually come up with great ideas? IS MY LIFE (OR BUSINESS) BETTER?

“Being a good leader is finding a bunch of people going in one direction and jumping in front of them. That’s what I did. I saw all these things happening, so I called Waylon and we came down to Austin and acted like we started the whole thing. We didn’t start nothing. It was going on.” Willie Nelson

“The secret of good business is knowing the bad business to turn away.” Jan Carlzon

Fastest growing! Triple margins! Loyal customers! Hmm, not bad….

DOMINATE! OR LEAVE

Not a “plan”, not a “job”, but... Starbucks Whole Foods IBM Atlanticare Samsung … A CALLING … A TRUE MISSION … A HIGHER CAUSE Columbia Forest Google Ikea Harley-Davidson

YOU CAN’T DO IT ALONE

Tough Balance

Radical innovation in: 1.Value proposition & customer care 2.Transparency & collaboration: Value Adding Partnership 3.Web and people applications 4.Speed & efficiencies 5.Performance & accountability

“Leadership is the art of accomplishing more than the science of management says is possible.”

B.H.A.G.!!!

“Optimism is a force multiplier.” Grounded optimism. Unrealistic expectations.

“You can’t behave in a calm, rational manner. You’ve got to be out there on the lunatic fringe.” Jack Welch