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The Association for Manufacturing Technology The Breakers 8 April 2000
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Pentium III 800MHz: $42,893.00/# Hermes Scarf: $1,964.29 Saving Private Ryan on DVD: $874.75 Mercedes-Benz: $18.98 Hot-rolled steel: $0.19 Source: Fortune (3.20.00)
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“It means nothing less than the total reinvention of this company.”
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Jacques’ New New Ford Ford + MSN CarPoint Ford + Yahoo! Ford + Oracle Ford + HP/MCIWorldcom Etc. Etc.
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Forces @ Work The Destruction Imperative!
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Forget > Learn “The problem is never how to get new, innovative thoughts into your mind, but how to get old ones out.” Dee Hock
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“We chose not to do a discounted cash flow analysis of their future earnings. We wanted their talent and we wanted their intellectual property.” Art Reidel, CEO, Pharsight
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“Our ideal acquisition is a small startup that has a great technology product on the drawing board that is going to come out in six to twelve months. We buy the engineers and the next generation product. …” John Chambers, Cisco
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C.E.O. to C.D.O.
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Brand Inside Brand Org!
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RR on Sara Lee “The most profitable businesses in the future will act as knowledge brokers, linking insights into what’s available with insights into the customer’s individual needs and preferences.”
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The “&-!!+#$% in the middle”* Jim Clark on Healtheon/WebMD * ’twixt docs, patients and providers; $300B in waste (?); source: Michael Lewis, The New New Thing
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“We want to be the air traffic controllers of electrons.” Bob Nardelli, GE Power Systems
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Brand Inside Brand Work!
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“Reward excellent failures. Punish mediocre successes.” Phil Daniels, Sydney exec
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“You really got to me. So many of our information technology projects take on a life of their own, and I know they’ll never end up as more than ‘mediocre successes.’ ” CEO, F100 financial services company (10-98)
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“Every project we take on starts with a question: How can we do what’s never been done before?” Stuart Hornery, CEO, Lend Lease
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Characteristics of the “Also Rans” “minimize risk” “respect the chain of command” “support the boss” “make budget” Source: Fortune on “most admired global corporations” (10/26/98)
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Brand Inside Brand Talent!
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Issue Y2K The Great War for Talent!
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There is no “talent shortage” … if … you are a GPTW* *Great Place To Work
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“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
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The NAESP …
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Attributes of Those Who “Made” the 10th Grade History Book –Committed! –Determined to make a difference! –Focused! –Passionate! –Irrational about their life’s project! –Ahead of their time / Paradigm busters! –Impatient! / Action Obsessed
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Attributes of Those Who “Made” the 10 th Grade History Book –Made lots of people mad! –Flouted the chain of command! –Creative / Quirky / Peculiar! / Rebels! / Irreverent! –Masters of improv / Thrive on chaos / Exploit chaos!
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Attributes of Those Who “Made” the 10 th Grade History Book –Forgiveness > Permission –Bone honest! –Flawed as the dickens! – “In touch” with their followers’ aspirations –Damn good at what they do!
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Talent = Brand
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Brand Outside = Brand Inside
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Brand Outside Context: No “Commodities”!
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“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
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Quality Not Enough! “Quality as defined by few defects is becoming the price of entry for automotive marketers rather than a competitive advantage.” J.D. Power
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“We make over three new product announcements a day. Can you remember them? Our customers can’t!” Carly Fiorina
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Brand Outside Strategy 1 : Lead the Customer!
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“The customer is a rear view mirror, not a guide to the future.” George Colony, Forrester Research “If you worship at the throne of the voice of the customer, you’ll get only incremental advances.” Joseph Morone, President, Bentley College
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“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
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Amen! “The Age of the Never Satisfied Customer” Regis McKenna
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Brand Outside Strategy 2 : Use E-Commerce to Re-invent the Business!
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2X = 100 days (Internet traffic) 2X = 9 months (network capacity) Source: Red Herring (1-00)
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Dell’s Web sales … daily ?
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$35,000,000.
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Tomorrow Today: Cisco! $7B of $10B Save $500M (service and tech support) C.Sat e >> C.Sat H Customer Engineer Chat Rooms ($1B?)
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B2B 1999 – 2004: 50X 2004: $7.4 Source: GartnerGroup (per Reuters 1-26-00) T
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GM/Ford/DaimlerChrysler (02-27) Auto parts supply “Co.” $240B (+$500B) I.P.O.
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W.W. Grainger* 2X phone/fax *$220B “MRO” market (per Business 2.0/02-00)
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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
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Anne Busquet/ American Express Not: “Age of the Internet” Is: “Age of Customer Control”
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“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
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“Where does the Internet rank in priority? It’s No. 1, 2, 3, and 4.” Jack Welch
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Web Strategy: GE Power Systems “Launch and Learn” (4 sites in 30 days)
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There are 2 Kinds of … Defense* vs. Offense** *Fend off upstarts. ** Reinvent our marketspace!
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Jargon Bath! Bureaucracy free … Systemically integrated … Internet intense … Knowledge based … Time and location free … “Instantly” responsive … Customer centric … Mass customization enabled.
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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
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Brand Outside Strategy 3 : Think Global!
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Rule #1 If “it” is [truly] good … then it’s good enough for … THE WORLD.
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Rule #2 There’s no such thing as “too small to be global.” [GET A LIFE.]
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Rule # 3 When? Now.
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Rule #4 Hang out … vigorously!
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Rule #5 Glom onto a [modest-sized] partner … who loves/ “gets” you!
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Rule #6 Tailor!! [But don’t give away the store.]
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Rule #7 Phil Crosby notwithstanding, you’ll not [likely] “get it right the first time”!
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Brand Outside Strategy 4 : Design Rules!
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And Tomorrow … “Fifteen years ago companies competed on price. Now It’s quality. Tomorrow it’s design.” Robert Hayes
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All Equal Except … “At Sony we assume that all products of our competitors have basically the same technology, price, performance and features. Design is the only thing that differentiates one product from another in the marketplace.” Norio Ohga
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“Design is treated like a religion at BMW.” Fortune (10/98)
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The I.D. [International Design] Forty* Airstream … Alfred A. Knopf … Apple Computer … Amazon.com … Bloomberg … Caterpillar … CNN … Disney … FedEx … Gillette … IBM … Martha Stewart … New Balance … Nickelodeon … Patagonia … The New York Yankees … 3M … Etc. * List No. 1, 1999
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Design as Principal Brand Statement Overall point of view/Story/Soul Integrated/Inclusive/ NOT PIECEMEAL Yes/ or No/ not Maybe
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Brand Outside Strategy 5 : It’s the Experience!
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“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
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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
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“This is the end of the pure product era. For instance, car makers are beginning to understand that the car is a platform for delivering services that drive the customer experience.” Carly Fiorina, HP @ Comdex ’99
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Mantra: “Any good can be ing -ed” the driv ing experience the pump ing experience the sitt ing experience the read ing experience the wash ing experience the cook ing experience Joseph Pine & James Gilmore, The Experience Economy: Work Is Theatre & Every Business a Stage
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Brand Outside BRAND POWER!
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Brand It! Now, More Than Ever! “The increasing difficulty in differentiating between products and the speed with which competitors take up innovations will assist in the rise and rise of the brand.” Gillian Law and Nick Grant, Management [New Zealand]
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What Can [Can’t] Be Branded? “Branding is not a problem if you have the right mentality. You go to your team and you pin up a $200 Swiss Army Watch. Competing in the ridiculously crowded sub-$200 watch market, they made it into a brand name, named after the most irrelevant and useless thing in history [the Swiss Army]. And you say, ‘Gang, if they can do it, we can do it.’ ” Barry Gibbons
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“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
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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
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Brand Leadership Passion Rules!
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Brand Leadership! “A key – perhaps the key – to leadership is the effective communication of a story.” Howard Gardner Leading Minds: An Anatomy of Leadership
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Ann Richards’ Dogma Show up! Know your message! PUT YOURSELF AT RISK EVERY DAY!
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