time kapalua 4 february 2000. microsoft = r.o.w. microsoft > gm + ford + boeing + lockheed martin...
TRANSCRIPT
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TIME
Kapalua4 February 2000
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Microsoft = R.O.W.
Microsoft > GM + Ford + Boeing + Lockheed Martin + Deere + Caterpillar + USX + Weyerhaeuser + Union Pacific + Kodak + Sears + Marriott + Safeway + KelloggSource: Business Week data through 5-99
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Microsoft = R.O.W. (II)
Microsoft > GM + Ford + Boeing + Lockheed
Martin + Deere + Caterpillar + USX + Weyerhaeuser + Union Pacific + Kodak + Sears + Marriott + Safeway + Kellogg +
McDonald’s + Bank One + General Mills + American Airlines + United Airlines + + Delta Air Lines + US Airways + Quaker Oats
Source: Yastrow Marketing (through 11-23-99)
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No Wiggle Room!
“Incrementalism is innovation’s worst enemy.”
Nicholas Negroponte
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Just Say No …
“I don’t intend to be known as the ‘King of the
Tinkerers.’ ”CEO, large financial services company
(New York, 5-99)
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“It means nothing less than the total
reinvention of this company.”
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Jacques’ New New Ford
Ford + MicrosoftFord + Yahoo!Ford + Oracle
Ford + HPEtc.Etc.
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The “Commodity
Trap”
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Quality Not Enough!
“While everything may be better, it is also increasingly
the same.”
Paul Goldberger on retail, “The Sameness of Things,” The New York Times
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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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“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
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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 Matters to Online Buyers”*
#1: Product brand
#2: Retailer brand
*Source: Business 2.0
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Opportunity No. 1
Coca Cola … 9Virgin … 9
Amazon.com … 7Yahoo! … 7
Sun … 3HP … 2 (on a 1-10 scale)
The Economist … 2
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Time?????
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And with the Game Boy / Play Station
Generation???
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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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Strategy 2:Master
E-Commerce!
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$30,000,000. = ???
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Dell’s Web sales … daily
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2X = 100 days (Internet traffic)
2X = 9 months (network capacity)
Source: Red Herring (1-00)
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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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Anne Busquet/ American Express
Not: “Age of the Internet”
Is: “Age of Customer Control”
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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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There are 2 Kinds of …
Defense*
vs.
Offense**
*Fend off upstarts.**Reinvent our marketspace!
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“We want to be the air traffic controllers
of electrons.”Bob Nardelli,
GE Power Systems
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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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Strategy 3:
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 Theater & Every Business a Stage
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“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
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“This is the end of the pure product era. For instance, car
makers are beginning to understand that the vehicle
per se 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 driving experiencethe pumping experience
the sitting experiencethe reading experiencethe washing experiencethe cooking experience
Joseph Pine & James Gilmore, The Experience Economy: Work Is Theater & 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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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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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 Talent!
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Issue Y2K
The Great War for Talent!
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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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Put Yourself at Risk!
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“We are in a brawl with no rules!” Paul Allaire
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Ann Richards’ Dogma
Show up!
Know your message!
PUT YOURSELF AT RISK!
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“If things seem under control, you’re just
not going fast enough.”
Mario Andretti