1. Phase Zero October 2004 Phase Zero - October 2004 Page 1 jim@crupi.com

2. Phase Zero October 2004 Phase Zero - October 2004 Page 2 Computer: What Gender?  In order to get their attention, you have to turn them on  They have a lot of data, but are clueless  They are suppose to solve your problems, but half the time they are the problem  As soon as you commit to one, you realize that, if you had waited a little bit longer, you could have had a better model. Women Felt Computer was Masculine

3. Phase Zero October 2004 Phase Zero - October 2004 Page 3 Computer: What Gender?  No one but their creator understands their internal logic  Language used to communicate with other computers is incomprehensible to anyone else  Even your smallest mistakes are stored in long-term memory for later retrieval  As soon as you commit to one, you start spending half your paycheck on accessories Men Felt Computer was Feminine

4. Phase Zero October 2004 Phase Zero - October 2004 Page 4 Social Media Revolution

5. Phase Zero October 2004 Phase Zero - October 2004 Page 5 There is a moment when the center feels in its bones that the ground beneath it is moving, whether it likes it or not. Transformation

6. Phase Zero October 2004 Phase Zero - October 2004 Page 6 Change is hard because people OVERESTIMATE the value of what they are giving up and UNDERESTIMATE the value of what they may gain by giving it up

7. Phase Zero October 2004 Phase Zero - October 2004 Page 7 Trends  Ubiquity of Information  Branding technology [Apps]  Aging population changes capital use  Global integration  Capital flows, migration, and demographics to south and midwest  Technology integration changes business design and nature of competition  Interest rates rise  Information exhaust generates money making opportunities  Collaboration becomes work norm as do virtual companies supported by networks, common values and objectives

8. Phase Zero October 2004 Phase Zero - October 2004 Page 8 New Realities  Value leads quality  Belief for knowledge  Take away my resources [Vietnam]  Decision Speed [Cycle Authority Up, Tip of Customer ]  Aim beyond what you can plan for  Market of customers > every customer a market  OODA  Not What I Say, It is what you hear

9. Phase Zero October 2004 Phase Zero - October 2004 Page 9 Paradigm Shifts Separate NetworksIntegrated Networks Dedicated BandwidthShared Bandwidth Low IntegrationHigh Integration Limited StandardsGlobal Standards Few SuppliersGlobal Sourcing Low Satellite CapacityHigh Satellite Capacity High Cost StorageLow Cost Storage Low Service IntegrationHigh Service Integration

10. Phase Zero October 2004 Phase Zero - October 2004 Page 10 Tennis Ball Exercise

11. Phase Zero October 2004 Phase Zero - October 2004 Page 11 Five Questions  What business are we in?  How do we get closer to the customer?  What kind of business model can we create?  Where do we digitize our business?  How do we build A global presence?

12. Phase Zero October 2004 Phase Zero - October 2004 Page 12 Know Your EngineMotorcyclesAutomobiles Outboard Motors Snowmobiles LawnmowersGenerators Engine ? ? ? ?

13. Phase Zero October 2004 Phase Zero - October 2004 Page 13 Not what to think, but how to think! You are a NAILBA competitor – What would you do to take business away from you.

14. Phase Zero October 2004 Phase Zero - October 2004 Page 14 Three Organizations Source: Adapted from McWhinney, Norokosky, Smith and Webber.