A presentation by

Oren Harari, Ph.D

Edited version.

All rights reserved.

Do not copy or distributre

S.I.O.R.5.3.07

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

Producer of Work

Leader

of Enterprise

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.

www.harari.com

www.breakfromthepack.com

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

Jack Welch