globalshop 2000 chicago 3.27.00
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GlobalShop 2000 Chicago 3.27.00. Getting Right Down to Brass Tacks … Bricks & Mortar? Clicks & Mortar? All Clicks All the time?. #1 : ANY IDIOT WHO THINKS CONSUMERS ARE GOING TO GIVE UP THE IN-STORE SHOPPING EXPERIENCE FOR THE INTERNET IS JUST THAT. AN IDIOT. - PowerPoint PPT PresentationTRANSCRIPT
GlobalShop 2000
Chicago 3.27.00
Getting Right Down to Brass Tacks …
Bricks & Mortar?
Clicks & Mortar?
All Clicks All the time?
#1: ANY IDIOT WHO THINKS CONSUMERS ARE GOING
TO GIVE UP THE IN-STORE SHOPPING
EXPERIENCE FOR THE INTERNET IS JUST THAT.
AN IDIOT.
#2: ANY IDIOT WHO THINKS WE ARE STILL GOING TO
BE HANGING OUT IN STORES 15 YEARS FROM
NOW IS JUST THAT. AN IDIOT.
TP: ANY IDIOT WHO THINKS THEY KNOW WHICH ONE
OF THE ABOVE TWO STATEMENTS IS TRUE
IS JUST THAT. AN IDIOT.
Hen scratches @ 37,000 feet …
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
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 OatsSource: Yastrow Marketing (through 11-23-99)
No Wiggle Room!
“Incrementalism is innovation’s worst
enemy.” Nicholas Negroponte
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)
64/24
Goal?
“It means nothing less than the total
reinvention of this company.”
Jacques’ New New Ford
Ford + MSN CarPointFord + Yahoo!Ford + Oracle
Ford + HP/MCIWorldcomEtc.Etc.
TP2000: A Broken Record
GE Power SystemsAnheuser Busch
FitLinxxYellow Freight
FidelityTime Inc.
American Medical Association
WebTotal ReinventionConsumer Control
SpeedTerror/
OpportunityBrand Power
“There is probably going to be more confusion in
the business world in the next decade than there has been in any decade
in history.”Steve Case (2-00)
“We are in a
brawl with no rules.”
Paul Allaire
S.A.V.
Seminar Y2K
Brand Everything:Distinct or Extinct!
Forget > Learn
“The problem is never how to get new, innovative thoughts into your mind, but how to get old ones out.”
Dee Hock
“Steve Ross had a wonderful philosophy: People get fired for
not making mistakes.”Bob Pittman
C.E.O. to
C.D.O.
Brand Inside 1
Brand Org!
And Now the Equivalent …
White Collar Revolution!
“The coefficient of friction associated with the grunge
of business is amazing!”
Michael Schrage
“Assetless Company”
J.B.
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.”
“We want to be the air traffic controllers
of electrons.”Bob Nardelli,
GE Power Systems
Brand Inside 2
Brand Work!
“Reward excellent failures. Punish
mediocre successes.”
Phil Daniels, Sydney exec
“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)
“Every project we take on starts with a question:
How can we do what’s never been done
before?”Stuart Hornery, CEO, Lend Lease
Brand Inside 3
Brand You!
DISTINCT … OR EXTINCT!
“If there is nothing very special about your work, no matter how hard you apply yourself, you won’t get noticed and that increasingly means you won’t get paid much, either.”
Michael Goldhaber, Wired
“You are the storyteller of your own life, and you
can create your own legend or not.”
Isabel Allende
The Cluetrain Manifesto Recommends …
Relax!Have a sense of humor!
Find your voice and use it!Tell the truth!Don’t panic!
Enjoy yourself!Be Brave!
Be curious!Play more!
Dream always!Listen up!Rap on!
Brand Inside 4
Brand Talent!
Issue Y2K
The Great War for Talent!
There is no “talent shortage” …
if …
you are a GPTW*
*Great Place To Work
“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
Axiom: Never hire anyone without an aberration in their
background. (Find the One Ton Cookie Man!)
Talent = Brand
Brand Outside=
Brand Inside
“Consumers don’t simply buy products, they buy attitudes as well. When confronted with proliferation and
diversity, choices become increasingly informed by belief. [Consumers] want to know who is behind the products that they buy. They want to know the
company. They want to know what you think.”
Jesper Kunde, Corporate Religion
Culture Change is not “Corporate.”Culture Change is not a “Program.”
Culture change does not take “Years.”Culture Change does not start “Today.”
Culture Change starts Right Now!Culture Change
Lives in the Moment!Culture Change is
Entirely in Your Hands!
Brand Outside
Context:
No “Commodities”!
“We make over three new product announcements a
day. Can you remember them?
Our customers can’t!”Carly Fiorina
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
“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
The “10X/10X Phenomenon”
10 Times Better/
10 Times Less Different
“When we did it ‘right’ it was still pretty
ordinary.”
Barry Gibbons on
“Nightmare No. 1”
Pretzel Crumb-less-ness Plus …
“The Ritz Carlton Experience enlivens the senses, instills
well-being and fulfills even the unexpressed wishes and needs of
the guest.”
from the Ritz Carlton Credo
“You do not merely want to be the best of the best. You
want to be considered the only ones who do
what you do.”
Jerry Garcia
Brand Outside
Strategy 1:
Lead the Customer!
“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
Good = Bad/ 1 of 30,000
“We are crazy. We should do something when people say it is
‘crazy.’ If people say something is ‘good’, it
means someone else is already doing it.”
Hajime Mitarai, Canon
Amen!
“The Age of the Never Satisfied
Customer”Regis McKenna
Brand Outside
Strategy 2:
Use E-Commerce
to Re-invent the Business!
$35,000,000. = ???
Dell’s Web sales … daily
2X = 100 days (Internet traffic)
2X = 9 months (network capacity)
Source: Red Herring (1-00)
I-24 to 1-28: BizRate.com Online Shopping Index [Consumer Goods]
52 Weeks: +622%
Source: The Industry Standard/02-00
Tomorrow Today: Cisco!
$7B of $10BSave $500M (service and tech
support)
C.Sat e >> C.Sat HCustomer Engineer Chat Rooms ($1B?)
W.W. Grainger*
2X phone/fax
*$220B “MRO” market (per Business 2.0/02-00)
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
Shop in your Underwear
Source: SM’d logo for www.ae.comae = American Eagle Outfitters
Psych 101: Strongest Force on Earth?
My need to be in perceived control of
my universe!
Anne Busquet/ American Express
Not: “Age of the Internet”
Is: “Age of Customer Control”
“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
“Where does the Internet rank in priority?
It’s No. 1, 2, 3, and 4.” Jack Welch
There are 2 Kinds of …
Defense*
vs.
Offense**
*Fend off upstarts.**Reinvent our marketspace!
Jargon Bath!
Bureaucracy free …Systemically integrated …
Internet intense …Knowledge based …
Time and location free …“Instantly” responsive …
Customer centric …Mass customization enabled.
Translation …
Bureaucracy free = Flat org, no B.S.Systemically integrated = Whole supply chain
tightly wired/ friction freeInternet intense = Do it all via the Web
Knowledge based = Open accessTime and location free = Whenever, wherever
“Instantly” responsive = Speed demonsCustomer centric = Customer calls the shotsMass customization enabled = Every product
and service rapidly tailored to client requirements
The Final Word …
“Banking is necessary.
Banks are not.”Dick Kovacevich, CEO, Wells
Fargo Bank
Brand Outside
Strategy 3:
Design Rules!
And Tomorrow …
“Fifteen years ago companies competed on price. Now It’s
quality. Tomorrow it’s design.”Robert Hayes
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
Object of Desire!
“Every now and then, a design comes along that radically changes the way we think about a particular object. Case in
point: the iMac. Suddenly, a computer is no longer an anonymous box. It is a
sculpture, an object of desire, something that you look at.”
Katherine McCoy, Michael McCoy, Illinois Institute of Technology
Design as Soul
“We don’t have a good language to talk about this kind of thing. In most people’s
vocabularies, design means veneer. … But to me, nothing could be further from the
meaning of design. Design is the fundamental soul of a
man-made creation.”Steve Jobs
Brand Outside
Strategy 4:
It’s the Experience!
“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
Safe, On Time and …
“We defined personality as a market niche. We seek to
amuse, to surprise, to entertain.”
Herb Kelleher, Main Man, LUV Airlines
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
BEWARE THE SHEEP SYNDROME!*
*This is “soul work.”
Brand Outside
BRAND POWER!
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]
“Corporate Religion is a completely new way of thinking about companies. Today, the product is still the main communication
highway in the company. When companies make the shift to selling solutions, brands and
attitudes … communicating the company’s attitudes and values
becomes the decisive parameter for success. It demands that you find out
who you are as a company.”Jesper Kunde, Corporate Religion
“We are in the twilight of a society based on data. As information and intelligence become the domain of computers, society will place more value on the one human ability that cannot be automated: emotion.
Imagination, myth, ritual - the language of emotion - will affect everything from our purchasing decisions
to how we work with others. Companies will thrive on the basis of their stories and
myths. Companies will need to understand that their products are less important than their stories.”
Rolf Jensen, Copenhagen Institute for Future Studies
“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
Bill Ford’s Passions!
Design Revisited/ Design as Principal Brand Statement
Overall point of view/ StorySoul
Integrated/ Inclusive/ NOT PIECEMEAL
Yes/ or No/ not Maybe
Rules of Radical Marketing
Love + Respect Your Customers!Just Say No … to Market Research!Hire only Passionate Missionaries!Create a Community of Customers!
Celebrate Craziness!Be insanely True to the Brand!
Sam Hill & Glenn Rifkin, Radical Marketing (e.g., Harley, Virgin, The Dead, HBS, NBA)
Brand Leadership
Lead Out Loud!
Brand Leadership!
“A key – perhaps the key – to leadership is the effective
communication of a story.”
Howard Gardner Leading Minds: An Anatomy of Leadership
Ann Richards’ Dogma
Show up!
Know your message!
PUT YOURSELF AT RISK EVERY DAY!
How sweet it is!