Distinct or … ExtinctTom Peters Seminar2000

Lincoln Mercury

eFutures ForumSeattle

18 August 2000

Summer 2000 …

KOA wires up!

An Age of Passion:1 Year = 1.5 Wal*Marts

03.27.99: $167B03.27.00: $555B

P.S.: Wal*Mart = #8 in 2000

It Makes John Chambers Smile!

“We have in our house, among two working parents, two teens and an 8-year-

old, five computers (both Mac and Windows), four cell phones, seven phone lines, two Palm Pilots, one DSL, two ISP

connections, a collection of personal domain names, a CD burner, a scanner

and one AOL account.”Michael Wolff, writer [as reported in New York 06.00]

No Wiggle Room!

“Incrementalism is innovation’s worst enemy.”

Nicholas Negroponte

“It means nothing less than the total

reinvention of this company.”

Jacques Nasser

“This whole ebusiness movement is the

most significant thing I’ve seen in my

business career.”

Richard Wagoner, Business 2.0,

08.22.00

“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)

NOW THAT’S B-I-G!

“The period 2000-2002 will bring the single greatest change in

worldwide economic and business conditions since we came down from the trees.”

David Schneider & Grady Means, MetaCapitalism

“There’s going to be a fundamental change in the

global economy unlike anything we have had since

the cavemen began bartering.”

Arnold Baker, Chief Economist, Sandia National Laboratories

Part I: Brand InsidePart II: Brand Outside

Part III: Brand Leadership

Brand Inside

Brand Org: Lean, Linked,

Electronic & Malleable

“We want to be the air traffic controllers

of electrons.”Bob Nardelli,

GE Power Systems

Cemex and FDX!

[Pervasive “Risk Markets”

“For a dollar a month, an Ohio insurance company will rent you a GPS receiver to

install in your car. As part of your policy, it signals how often, when, and which highways you drive and into which

neighborhoods you go. The premium you pay reflects your actual driving risk.”

Stan Davis & Christopher Meyer, futureWEALTH]

Brand Inside

Brand Talent: The Great War for Talent

“When land was the scarce resource, nations battled

over it. The same is happening now for talented people.”

Stan Davis & Christopher Meyer, futureWEALTH

John Chambers “Gets it”!!

“This is the Age of Ageism: The real innovator’s dilemma isn’t ‘disruptive technologies;’ it’s

the relentless rise of the quasi-adolescents who wield them.”

Michael Schrage

“A good plant engineer in a paper mill may create $100K to $300K in value per year. An

outstanding software product developer may create a product worth $1M to $300M. Talented people are less likely to wait their turn. We

used to view young people as trainees; now they are authorities. Arguably this is the first time the older generation can –

and must – leverage the younger generation very early in their careers”

Ed Michaels, War for Talent (05.17.00)

There is no “talent shortage” …

if …

you are a GPTW*

*Great Place To Work

“TAKE THIS QUICK QUIZ: Who manages more things at once? Who puts more effort into their appearance? Who usually takes care of the details? Who finds it

easier to meet new people? Who asks more questions in a conversation? Who is a better

listener? Who has more interest in communication skills? Who is more inclined to get involved?

Who encourages harmony and agreement? Who has better intuition? Who works with a longer ‘to do’ list? Who enjoys a recap to the day’s events? Who is

better at keeping in touch with others?”

Source: Selling Is a Woman’s Game: 15 Powerful Reasons Why Women Can Outsell Men, Nicki Joy &

Susan Kane-Benson

Part I: Brand InsidePart II: Brand Outside

Part III: Brand Leadership

Forces @ Work II

The Commodity Trap

“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

Brand Outside

Strategy 1:

Lead the Customer!

“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

Brand Outside

Strategy 2:Use E-Commerce to

Re-invent Everything!

OVERVIEW

www.cyveillance.com

08.12.2000/0509AM:

2,337,711,647

www.cyveillance.com

08.18.2000/0511AM:

2,380,854,946

144 Hours, 02 Minutes …

+43,143,299

Tomorrow Today: Cisco!

87% of $20B*(Cisco Connection ONLINE)

Save $500M(service and tech support)

* = $48,000,000 … per DAY

Enron: $400B in annual on-line trading transactions. [50% total bus.] Much stimulated by the

Web per se.

Schwab: $25B per week in asset transactions [80% of trades]

[Transition to e.Schwab: Rev. fell, then quickly doubled]

W.W. Grainger*

2X phone/fax

*$220B “MRO” market (per Business 2.0/02-00)

COMMUNITY!/ COMMUNITY SERVICES!

Tomorrow Today: Cisco!

87% of $20B(Cisco Connection ONLINE)

Save $500M(service and tech support)

C.Sat e >> C.Sat HCustomer Engineer

Chat Rooms/Collaborative Design ($1B “free” consulting)

Cherry PickingVertical Markets

Plasticsnet.com: $370B; sellers pay $5K to $8K for

“storefront”; 5% to 10% cut

Hook: community services (database, catalogs, forums,

industry job bank, etc.)

The Motley Fool Secret?

“Strangers helping strangers”“Fools’ Logic,” IW

Bruce Butterfield, CEO, The Forbes Group …

“self-forming groups”“catalyst for community”

“participant-determined world”

Source: Association Executive 4/00

B2C Success

“Genuine brand strength”

“Build community”Source: Geoffrey Moore

CUSTOMER PERSPECTIVE:

D.I.Y./ CONTROL

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

Anne Busquet/ American Express

Not: “Age of the Internet”

Is: “Age of Customer Control”

Amen!

“The Age of the Never Satisfied

Customer”Regis McKenna

I’net Freedom Manifesto

I AM IN CHARGE HERE! I CAN DO WHATEVER I NEED OR WANT TO DO

WHENEVER I WANT TO DO IT!

I Can Immediately …

Shop for $1,000,000 homes or $1.95 office supplies, at best price and with best advisors

Manage all my financial dealingsWork with my doc, or world’s best medical experts, or

humble support groups, on any health issueRecruit talent to help me with any project

Develop professional docs collaboratively, with anyoneShare my ideas with the worldChat with anyone, anywhere

Research anythingTake a course on any topic, from cooking to software

Stay in touch with my 90 year old momPlay a gajillion games to while away the time

“The Web enables total transparency. People with

access to relevant information are beginning to challenge any type of

authority. The stupid, loyal and humble customer, employee, patient

or citizen is dead.”

Kjell Nordstrom and Jonas Ridderstrale, Funky Business

K.I.S.S.

“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

“Most companies would do more business on the Internet if they

fired their entire marketing department and replaced it with

people who could produce interactive content that actually made it easier for users to buy.”

Jakob Nielsen, Nielsen Norman Group

Red Herring (01/00)

75% of online shoppers don’t complete their

purchase!

Case in Point …

L.L.Bean’s incredibly awful, amazingly

pathetic, hopelessly misleading, purely putrid “Web site” (TP/08.01.00)

Nielsen/Designing Web Usability

All Web projects are customer-interface projects! Simplicity rules!

Make it easy for customers to perform useful tasks!

Less “cool,” more useful!Speed rules!

RADICAL STRATEGIES

REQUIRED

“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!

“One cannot be tentative about this. Excuses like ‘channel

conflict’ or ‘marketing and sales aren’t ready’ cannot be allowed. Delay and you risk being cut out of your own market, perhaps not by traditional competitors but by companies you

never heard of 24 months ago.”

Jack Welch [07.00/Forbes.com]

ACT NOW, ACT FAST,

KEEP ACTING

“It’s better to be first with less than last with more. Success on

the Web isn’t just about time to market, it’s also about

‘time to learning.’ ”

Jeff Levy, eHatchery

SUMMARY: REINVENT

EVERYTHING

WebWorld = Everything

Web as a way to run your business’ innardsWeb as connector for your entire supply-demand chain Web as “spider’s web” which re-conceives the industry

Web/B2B as ultimate wake-up call to “commodity producers”

Web as the scourge of slack, inefficiency, sloth, bureaucracy, poor customer data

Web as an Encompassing Way of LifeWeb = Everything (P.D. to after-sales)

Web forces you to focus on what you do bestWeb as entrée, at any size, to World’s Best at Everything

as next door neighbor

“There is no use trying,” said Alice. “One can’t believe impossible things.”

“I dare say you haven’t had much practice,” said the Queen. “When I was

your age, I always did it for half an hour a day. Why, sometimes I’ve

believed as many as six impossible things before breakfast.”

Lewis Carroll

I’net …

… allows you to dream dreams you could never have imagined before!

The Web …

A DREAMER’S MEDIUM!

“It” is real! It is “Life and Death”!Dream BIG!

Start Now! Study Hard! Play Hard! Play Fast! Go on Offence!

Hire great folks! (They ain’t cheap. They are young!)

Don’t cut corners on infrastructure!

Rem: “Age of the Never Satisfied Customer”!

We ain’t seen nothin’ yet!

“Banking is

necessary. Banks are not.”

Dick Kovacevich, Norwest/ Wells

Brand Outside

Strategy 3:

It’s the Experience!

“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

“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 that’s not work or home. It’s the place our

customers come for refuge.”Nancy Orsolini, District Manager

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

“Car designers need to create a story. Every car provides an

opportunity to create an adventure. …“The Prowler makes you smile. Why? Because it’s focused. It has a plot, a

reason for being, a passion.”

Freeman Thomas, co-designer VW Beetle; designer Audi TT

Hmmmm(?): “Only” Words …

AdventureSmile FocusPlot

Passion

Story

“This story is bigger than shifting market share or selling a few more cars, or dodging the dealer by buying direct.

Rather, it’s about the redefinition of the automobile itself, and the relationship of its owner to its maker. Think of the auto as a

rolling wireless portal on wheels, connecting you to your kitchen, your bank,

your kids, your office.”

Business 2.0, “Four Wheel Drive,” 08.22.00

Brand Outside

Strategy 4:

Women Rule!

?????????

Home Furnishings … 94%Vacations … 92%

Houses … 91%Bank Account … 89%

Health Care … 75%Etc.

48% working wives > 50%80% checks

61% bills53% stock (mutual fund boom)

43% > $500K95% financial decisions/

29% single handed

Women … 49% of Web users; 6 of 10 new users; 83% of wired women are primary decision makers for family healthcare,

finances, education.

Source: Business Week (11-99)

OPPORTUNITY

NO. 1!*

[* No shit!]

Read This Book …

EVEolution: The Eight Truths of Marketing to Women

Faith Popcorn & Lys Marigold

Venus and Mars!

“Men and women don’t think the same way, don’t communicate the same

way, don’t buy for the same reasons.

“He simply wants the transaction to take place. She’s interested in creating a relationship. Every place women go,

they make connections.”

EVEolution: Truth No. 1

Connecting Your Female Consumers to Each

Other Connects Them to Your Brand

“The ‘Connection Proclivity’ in women starts early. When asked,

‘How was school today?’ a girl usually tells her mother every

detail of what happened, while a boy might grunt, ‘Fine.’ ”

EVEolution

Weight Watchers International “Model”

“What if ExxonMobil or Shell dipped into their credit card database to help commuting women

interview and make a choice of car pool partners?”

“What if American Express made a concerted effort to connect up female empty-nesters

through on-line and off-line programs, geared to help women re-enter the workforce with today’s

skills?”

EVEolution

The New New Jiffy Lube

“In the male mold, Jiffy Lube was going all out to deliver quick, efficient service. But, in the

female mold, women were being turned off by the ‘let’s get it fixed fast, no conversation

required’ experience.”

New JL: “Control over her environment. Comfort in the service setting. Trust that her car

is being serviced properly. Respect for her intelligence and ability.”

EVEolution

27 March 2000: email to TP from Shelley Rae Norbeck

“I make 1/3rd more money than my husband does. I have as much financial

‘pull’ in the relationship as he does. I’d say this is also true of most of my women

friends. Someone should wake up, smell the coffee and kiss our asses long enough

to sell us something! We have money to

spend and nobody wants it!”

Part I: Brand InsidePart II: Brand Outside

Part III: Brand Leadership

Brand Leadership

Passion Rules!

“Create a Cause, not a ‘business.’ ”

Gary Hamel, Fortune (06.00), on re-inventing a company (Exemplar #1:

Charles Schwab)

“Reward excellent failures. Punish

mediocre successes.”

Phil Daniels, Sydney exec

The greatest dangerfor most of us

is not that our aim istoo high

and we miss it,but that it is

too lowand we reach it.

Michelangelo