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 + Kellogg
Source: 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 Oats
Source: 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 CarPoint
Ford + Yahoo!
Ford + Oracle
Ford + HP/MCIWorldcom
Etc.
Etc.
TP2000: A Broken Record
GE Power Systems
Anheuser Busch
FitLinxx
Yellow Freight
Fidelity
Time Inc.
American Medical Association
Web
Total Reinvention
Consumer Control
Speed
Terror/
Opportunity
Brand 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
Culture Change
Now!
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
If people say
something is ‘good’, it
means someone else is
already doing it.”
‘crazy.’
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 $10B
Save $500M (service and tech
support)
C.Sat e >> C.Sat H
Customer 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.com
ae = 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 postsales 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 free
Internet intense = Do it all via the Web
Knowledge based = Open access
Time and location free = Whenever, wherever
“Instantly” responsive = Speed demons
Customer centric = Customer calls the shots
Mass 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
design.”
Robert Hayes
it’s
All Equal Except …
“At Sony we assume that all products of
our competitors have basically the same
technology, price, performance and
Design is the only thing
that differentiates one product
from another in the
marketplace.”
features.
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
Design is the
fundamental soul of a
meaning of design.
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
Companies will
thrive on the basis of their stories and
myths. Companies will need to understand that
to how we work with others.
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/ Story
Soul
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!