The Perils of Being a Visionary

October 25, 2012

Audience Participation I

• Raise your hand if you have heard of a Segway Personal Transporter

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• Raise your hands if you have used a Segway

The Future Of Transportation: In 2001

Segway PT “Personal Transporter”• Invented by Dean Kamen• Introduced in December 2001

Insiders predicted that the Segway would: • Revolutionize urban transportation and

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Sources

Photo: Time Specials, “The 50 Worst Inventions” (http://www.time.com/time/specials/packages/article/0,28804,1991915_1991909_1991902,00.html)

Quotes: The Guardian (http://m.guardiannews.com/ms/p/gnm/us/view.m?id=15&gid=/world/2001/dec/04/engineering.highereducation)

• Revolutionize urban transportation and design

• Reduce overdependence on oil• Have a more profound impact on

humankind than the development of the personal computer

The Future Of Transportation: Reality

2001•Introduced

2002•Trouble with local laws on usage (sidewalk vs. roadway)

2003•Recalled all scooters (6,000 total)

2004•Losing money; all original funds have been depleted

2009•Acquired by U.K. businessman, James Heselden

Today•Low adoption

3Sources

Timeline: Wall Street Journal Technology Blog , “Digits” (http://blogs.wsj.com/digits/2010/09/27/from-hype-to-disaster-segways-timeline/)

• Segway currently exists as a novelty• Primary uses include tourist attractions and use by local

police and other mobile security forces

roadway) depleted

Audience Participation II

• Raise your hand if you have heard of the internet

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• Keep your hand in the air if you have used the internet in the past year

The Future Of The Internet: In 1995

“I predict the Internet will soon go spectacularly supernova and in 1996

catastrophically collapse.”

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Robert Metcalfe

• 1995 InfoWorld column• Founder of 3Com• Co-inventor of Ethernet Technology

Sources

Photo: Computer History Museum (http://www.computerhistory.org/fellowawards/hall/bios/Bob,Metcalfe/)

Quote: Scientific American (http://www.scientificamerican.com/article.cfm?id=pogue-all-time-worst-tech-predictions)

The Future Of The Internet: Reality

The Internet has survived without a

major collapse, and has seen the number of

users worldwide

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increase 358% in the last 10 years

Source

Chart: International Telecommunications Union [ITU] (http://www.itu.int/ict/statistics)

So What Does This Mean?

Was the 80% direct channel share prediction wrong?

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7Source

Photo: Tech Hive (http://www.techhive.com/article/244601/geeky_magic_8_ball_serves_up_fortunes_still_gives_vague_answers.html)

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Why Haven’t We Reached 80% Yet?

GOAL:

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9/11

Bankruptcies

MergersFinancial Crisis/ Transformation

GOAL:Sustained ProfitabilitySelf-relianceManage The BusinessInvest In The product

So What Does This Mean?

Airlines want to solve two financial challenges

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Transparency and consumer options

Direct channel sales are cheaper than third party sales

Delta Is Looking To DifferentiateEconomy, First/Business and Basic Economy options are

presented

Customer has the option to login and be recognized

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Customers are able to see

aircraft amenities

Search can be customized

Is 60% Attainable?

If third party channels can…

– Evolve– Innovate

It is aggressive, but attainable – Is it necessary?

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– Innovate– Be flexible– Be cost-effective– Deliver value to customer

and supplier

…they have the potential to thrive

Direct Direct SalesSales

Third Third PartyParty

4 D’s Of Delta’s Distribution Strategy

Do not disrupt back office functions you rely on; do not negatively affect managed travel programs

Invest in, and provide, a superior customer experience – better recognition of the customer during the shopping experience

Do no harm

Deepen customer engagement

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during the shopping experience

Develop and implement new, innovative technology that enables a shift from “commodity” minded distribution to more customized “merchandising”

Across all channels, enable the consumer to quickly and easily recognize the product and service value provided by Delta

De-commoditize

Differentiate

Thank You!Thank You!

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