TIME Kapalua 4 February 2000

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TIMEKapalua4 February 2000
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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
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Microsoft R.O.W. (II)Microsoft GM
Ford Boeing Lockheed Martin Deere
Caterpillar USX Weyerhaeuser Union Pacific
Kodak Sears Marriott Safeway Kellogg
McDonalds Bank One General Mills American
Airlines United Airlines Delta Air Lines
US Airways Quaker OatsSource Yastrow
Marketing (through 11-23-99)
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No Wiggle Room! Incrementalism is
innovations worst enemy. Nicholas Negroponte
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Just Say No I dont intend to be known as the
King of the Tinkerers. CEO, large financial
services company (New York, 5-99)
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It means nothing less than the total reinvention
of this company.
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Jacques New New FordFord MicrosoftFord
Yahoo!Ford OracleFord HPEtc.Etc.
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The Commodity Trap
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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
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We make over three new product announcements a
day. Can you remember them? Our customers
cant!Carly Fiorina
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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
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BRAND POWER!
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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
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What Matters to Online Buyers1 Product
brand2 Retailer brandSource Business 2.0
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Opportunity No. 1Coca Cola 9Virgin
9Amazon.com 7Yahoo! 7Sun 3HP 2 (on a
1-10 scale)The Economist 2
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Time?????
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And with the Game Boy / Play Station
Generation???
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Strategy 1Lead the Customer!
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The customer is a rear view mirror, not a guide
to the future.George Colony, Forrester
ResearchIf you worship at the throne of the
voice of the customer, youll get only
incremental advances.Joseph Morone, President,
Bentley College
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Wealth in this new regime flows directly from
innovation, not optimization. That is, wealth is
not gained by perfecting the known, but by
imperfectly seizing the unknown.Kevin Kelly,
New Rules for the New Economy
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Amen!The Age of the Never Satisfied
CustomerRegis McKenna
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Strategy 2Master E-Commerce!
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30,000,000. ???
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Dells Web sales daily
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2X 100 days (Internet traffic)2X 9 months
(network capacity)Source Red Herring (1-00)
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In the network economy, the Website becomes the
companys 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
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Anne Busquet/ American ExpressNot Age of the
InternetIs Age of Customer Control
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Where does the Internet rank in priority? Its
No. 1, 2, 3, and 4. Jack Welch

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There are 2 Kinds of Defensevs.Offense
Fend off upstarts.Reinvent our marketspace!
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We want to be the air traffic controllers of
electrons.Bob Nardelli, GE Power Systems
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RR on Sara LeeThe most profitable businesses
in the future will act as knowledge brokers,
linking insights into whats available with
insights into the customers individual needs and
preferences.
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Strategy 3Its the Experience!
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Experiences are as distinct from services as
services are from goods.Joseph Pine James
Gilmore, The Experience Economy Work Is Theater
Every Business a Stage
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The Starbucks Fix Is on We have
identified a third place. And I really believe
that sets us apart. The third place is that place
thats not work or home. Its the place our
customers come for refuge.Nancy Orsolini,
District Manager
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This is the end of the pure product era. For
instance, car makers are beginning to understand
that the vehicle per se is a platform for
delivering services that drive the customer
experience.Carly Fiorina, HP _at_ Comdex 99
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Mantra Any good can be ing-edthe driving
experiencethe pumping experiencethe sitting
experiencethe reading experiencethe washing
experiencethe cooking experienceJoseph Pine
James Gilmore, The Experience Economy Work Is
Theater Every Business a Stage
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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
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Brand Work!
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Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec
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You really got to me. So many of our information
technology projects take on a life of their own,
and I know theyll never end up as more than
mediocre successes. CEO, F100 financial
services company (10-98)
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Characteristics of the Also Rans

• minimize risk
• respect the chain of command
• support the boss
• make budget

Source Fortune on most admired
global corporations (10/26/98)
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Brand Talent!
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Issue Y2KThe Great War for Talent!
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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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Put Yourself at Risk!
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We are in a brawl with no rules!
Paul Allaire
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Ann Richards DogmaShow up!Know your
message!PUT YOURSELF AT RISK!
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If things seem under control, youre just not
going fast enough.Mario Andretti