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1. A Pitiful Showing …

Tom Peters’ Manifestos2002 The Solutions Imperative: From “Customer Satisfaction” to “Customer Success” Oracle/03.06.2002. 1. A Pitiful Showing ….

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1. A Pitiful Showing …

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  1. Tom Peters’ Manifestos2002The Solutions Imperative:From “Customer Satisfaction” to “Customer Success”Oracle/03.06.2002

  2. 1. A Pitiful Showing …

  3. Forbes100 from 1917 to 1987: 39 members of the Class of ’17 were alive in ’87; 18 in ’87 F100; 18 F100 “survivors” underperformed the market by 20%; just 2 (2%), GE & Kodak, outperformed the market 1917 to 1987.S&P 500 from 1957 to 1997: 74 members of the Class of ’57 were alive in ’97; 12 (2.4%) of 500 outperformed the market from 1957 to 1997.Source: Dick Foster & Sarah Kaplan, Creative Destruction: Why Companies That Are Built to Last Underperform the Market

  4. “Good management was the most powerful reason [leading firms] failed to stay atop their industries.Precisely because these firms listened to their customers, invested aggressively in technologies that would provide their customers more and better products of the sort they wanted, and because they carefully studied market trends and systematically allocated investment capital to innovations that promised the best returns, they lost their positions of leadership.”Clayton Christensen, The Innovator’s Dilemma

  5. 2. Base Case …

  6. “While everything may be better, it is also increasingly the same.”Paul Goldberger on retail, “The Sameness of Things,”The New York Times

  7. “The ‘surplus society’ has a surplus of similar companies, employing similarpeople, with similar educational backgrounds, working in similar jobs, coming up with similarideas, producing similar things, with similarprices and similarquality.”Kjell Nordstrom and Jonas Ridderstrale,Funky Business

  8. “Companies have defined so much ‘best practice’ that they are now more or less identical.”Jesper Kunde, A Unique Moment

  9. “Customers will try ‘low cost providers’ … because the Majors have not given them any clear reason not to.”Leading Insurance Industry Analyst

  10. SWA > American + Continental + Delta + Northwest + United + USAirways.Source: Boston Globe (12.22.2001)

  11. Getting Beyond Lip Service!“No longer are we only an insurance provider. Today, we also offer our customers the products and services that help them achieve their dreams, whether it’s financial security, buying a car, paying for home repairs, or even taking a dream vacation.”—Martin Feinstein, CEO, Farmers Group

  12. 2002: Same-Same-Same …Farmers = GE = Oracle = MCAA = Biotech & Pharmaceutical Trainers = Omnicom = Oracle (?????)

  13. GE/IS: “We don’t sell circuit breakers.”Farmers: “We don’t sell insurance.”Oracle: “We don’t sell apps-in-boxes.”MCAA: “We don’t sell ‘a job.’”B&T Trainers: “We don’t sell pills.”Omnicom: “We don’t sell ads.”(Seagate: “We sell the sexiest boxes … and we’re proud of it.”)

  14. 3. Searching for New Bases for Value Added …

  15. The Big Day!

  16. 09.11.2000: HP bids $18,000,000,000for PricewaterhouseCoopersconsulting business!

  17. “These days, building the best server isn’t enough. That’s the price of entry.”Ann Livermore, Hewlett-Packard

  18. “We make over three new product announcements a day. Can you remember them? Our customers can’t!”Carly Fiorina

  19. HP … Sun … GE … IBM … UPS … UTC … General Mills … Springs … Anheuser-Busch … Carpet One … Delphi … Etc. … Etc.

  20. “We want to be the air traffic controllers of electrons.”Bob Nardelli, GE Power Systems

  21. “Customer Satisfaction” to “Customer Success”“We’re getting better at [Six Sigma] every day. But we really need to think about the customer’s profitability. Are customers’ bottom lines really benefiting from what we provide them?”Bob Nardelli, GE Power Systems

  22. HP … Sun … GE … IBM … UPS … UTC … General Mills … Springs … Anheuser-Busch … Carpet One … Delphi … Etc. … Etc.

  23. Gerstner’s IBM: Systems Integrator of choice. (BW/12.01). Global Services: $35B. Pledge/’99: Business Partner Charter. 72 strategic partners, aim for 200. Drop many in-house programs/products.

  24. HP … Sun … GE … IBM… UPS … UTC … General Mills … Springs … Anheuser-Busch … Carpet One … Delphi … Etc. … Etc.

  25. “UPS wants to take over the sweet spot in the endless loop of goods, information and capital that all the packages [it moves] represent.”ecompany.com/06.01 (E.g., UPS Logistics manages the logistics of 4.5M Ford vehicles, from 21 mfg. sites to 6,000 NA dealers)

  26. HP … Sun … GE … IBM… UPS … UTC … General Mills … Springs … Anheuser-Busch … Carpet One … Delphi … Etc. … Etc.

  27. New Springs = TurnkeyCollections.Flexible sourcing.Packaging.Merchandising.Promotion.Systems & Site mgt.

  28. Omnicom: 57% (of $6B) from marketing services

  29. Who was the number one employer of architectureschool grads in the U.S. last year?

  30. The Pursuit of … Whatever: Accenture to “do” AT&T’s sales & customer service … for $2.6B/5 years … savings to AT&T of 50%. Accenture to “do” Avaya’s corporate learning & training. Source: BW (02.04.2002)

  31. “VISIONS OF A BRAND-NAME OFFICE EMPIRE.Sam Zell is not a man plagued by self doubt. Mr. Zell controls public companies that own nearly 700 office buildings in the United States. … Now Mr. Zell says he will transform the real estate market by turning those REITs into national brands. … Mr. Zell believes [clients] will start to view those offices as something more than a commodity chosen chiefly by price and location.”–New York Times (12.16.2001)

  32. Problem: Everybody is going after the same space!

  33. 4. Cut The [Internal] Crap …

  34. 100square feet

  35. Dell’s OptiPlex FacilityBig Job: 6 to 8 hours.(80,000 per day)Parts Inventory:100square feet.

  36. The Real “New Economy”“Only a few times in history have interaction costs radically changed—one was the railroads, then the telegraph and telephone. We’re going through another one right now.”Jeff Skilling, Enron

  37. “In an era when terrorists use satellite phones and encrypted email, US gatekeepers stand armed against them with pencils and paperwork, and archaic computer systems that don’t talk to each other.”Boston Globe (09.30.2001)

  38. “Once devised in Riyadh, the tasking order took hours to get to the Navy’s six aircraft carriers—because the Navy had failed years earlier to procure the proper communications gear that would have connected the Navy with its Air Force counterparts. … To compensate for the lack of communications capability, the Navy was forced to fly a daily cargo mission from the Persian Gulf and Red Sea to Riyadh in order to pick up a computer printout of the air mission tasking order, then fly back to the carriers, run photocopy machines at full tilt, and distribute the documents to the air wing squadrons that were planning the next strike.” –Bill Owens, Lifting the Fog of War

  39. “CRM has, almost universally, failed to live up to expectations.”Butler Group (UK)

  40. CGE&Y (Paul Cole): “Pleasant Transaction” vs.“Systemic Opportunity.”“Better job of what we do today” vs.“Re-think overall enterprise strategy.”

  41. Read It Closely:“We don’t sell insurance anymore.Wesell speed.”Peter Lewis, Progressive

  42. WebWorld = EverythingWeb as a way to run your business’s innardsWeb as connector for your entire supply-demand chainWebas “spider’s web” which re-conceives the industryWeb/B2B as ultimate wake-up call to “commodity producers”Web as the scourge of slack, inefficiency, sloth, bureaucracy, poor customer dataWeb as an Encompassing Way of LifeWeb = Everything (P.D. to after-sales)Web forces you to focus on what you do bestWebas entrée, at any size, to World’s Best at Everything as next door neighbor

  43. Message: eCommerce is not a technology play! It is a relationship, partnership, organizational and communications play, made possible by new technologies.

  44. Message: There is no such thing as an effective B2B or Internet-supply chain strategy in a low-trust, bottlenecked-communication, six-layer organization.

  45. “Ebusiness is about rebuilding the organization from the ground up. Most companies today are not built to exploit the Internet. Their business processes, their approvals, their hierarchies, the number of people they employ … all of that is wrong for running an ebusiness.”Ray Lane, Kleiner Perkins

  46. “Suppose – just suppose – that the Web is a new world we’re just beginning to inhabit. We’re like the earlier European settlers in the United States, living on the edge of the forest. We don’t know what’s there and we don’t know exactly what we need to do to find out: Do we pack mountain climbing gear, desert wear, canoes, or all three? Of course while the settlers may not have known what the geography of the New World was going to be, they at least knew that there was a geography. The Web, on the other hand, has no geography, no landscape. It has no distance. It has nothing natural in it. It has few rules of behavior and fewer lines of authority. Common sense doesn’t hold here, and uncommon sense hasn’t yet emerged.” David Weinberger, Small Pieces Loosely Joined

  47. 5. The V.A./Solutions Imperative = The Talent Imperative …

  48. Model 25/8/53: Sports Franchise GM

  49. From “1, 2 or you’re out” [JW] to …“BestTalent in each industry segment to build best proprietary intangibles”[EM]Source: Ed Michaels, War for Talent (05.17.00)

  50. The Cracked Ones Let in the Light“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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