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Tom Peters’
We Are in a Brawl with No Rules
Phoenix Technologies/10.13.2002
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TP’s 7 Phoenix Technologies Biases
1. Great institution.2. Great product.3. (Potentially) great story.4. Hopelessly under-branded.5. Awesome opportunities—product & branding.6. Scope ought to be expanded (dramatically)—“the Cisco of my computer’s innards.”7. Engineering is cool—but there’s more to life.8. Success: a marketer-to-marketer sale, not an engineer-to-engineer sale.
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I. Confusion Reigns.
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“We are in a
brawl with no rules.”
Paul Allaire
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II. Destruction Rules.
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“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
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“In 25 years, you’ll probably be able to get the
sum total of all human knowledge on a personal
device.”Greg Blonder, VC [was Chief Technical
Adviser for Corporate Strategy @ AT&T] [Barron’s 11.13.2000]
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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
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“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
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No Wiggle Room!
“Incrementalism is innovation’s worst enemy.”
Nicholas Negroponte
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“IT MAY SOMEDAY BE SAID THAT THE 21ST CENTURY BEGAN ON SEPTEMBER 11, 2001. …
“Al-Qaeda represents a new and profoundly dangerous kind of
organization—one that might be called a ‘virtual state.’ On September a virtual
state proved that modern societies are vulnerable as never before.”—Time/09.09.2002
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“Dawn Meyerreicks, CTO of the Defense Intelligence Systems Agency, made one of the most fateful military calls of the 21st century. After 9/11 … her office
quickly leased all the available transponders covering Central Asia. The implications should change everything about U.S. military thinking in the
years ahead.
“The U.S. Air Force had kicked off its fight against the Taliban with an ineffective bombing campaign, and Washington was anguishing over whether to send in a few Army divisions. Donald Rumsfeld told Gen. Tommy Franks to
give the initiative to 250 Special Forces already on the ground. They used satellite phones, Predator surveillance drones, and GPS- and laser-based
targeting systems to make the air strikes brutally effective.
“In effect, they ‘Napsterized’ the battlefield by cutting out the middlemen (much of the military’s command and control) and working directly with the
real players. … The data came in so fast that HQ revised operating procedures to allow intelligence analysts and attack planners to work directly
together. Their favorite tool, incidentally, was instant messaging over a secure network.”—Ned Desmond/“Broadband’s New Killer App”/
Business 2.0/ OCT2002
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III. B-I-G “Value Added” Wins.
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The Big Day!
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09.11.2000: HP bids
$18,000,000,000for
PricewaterhouseCoopersconsulting business!
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“These days, building the best server isn’t enough. That’s the
price of entry.”Ann Livermore, Hewlett-Packard
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Gerstner’s IBM: Systems Integrator of
choice. Global Services:
$35B. Pledge/’99: Business Partner Charter. 72 strategic partners,
aim for 200. Drop many in-house
programs/products. (BW/12.01).
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“We want to be the air traffic
controllers of electrons.”
Bob Nardelli, GE Power Systems
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“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
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“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
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IV. “Value Added” = Scintillating Customer
Experiences.
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“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
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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 that’s not work or home. It’s the place our
customers come for refuge.”Nancy Orsolini, District Manager
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“Club Med is more than just a ‘resort’; it’s a means of rediscovering oneself, of inventing an
entirely new ‘me.’ ”
Source: Jean-Marie Dru, Disruption
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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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WHAT CAN BROWN DO FOR YOU?
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The “Experience Ladder”
Experiences Services
Goods Raw Materials
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Bob Lutz: “I see us as being in the art business. Art,
entertainment and mobile sculpture, which,
coincidentally, also happens to provide transportation.”
Source: NYT 10.19.01
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“Lexus sells its cars as containers
for our sound systems. It’s
marvelous.”—Sidney Harman/
Harman International
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Ladder Position Measure
Solutions Success(Experiences)
Services Satisfaction
Goods Six-sigma
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It’s All About EXPERIENCES: “Trapper” to “Wildlife Damage-control Professional”
Trapper: <$20 per beaver pelt.
WDCP: $150/“problem beaver”; $750-$1,000 for flood-control
piping … so that beavers can stay.
Source: WSJ/05.21.2002
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V. Experiences Plus: The “Dream Fulfillment Business.”
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DREAM: “A dream is a complete moment in the life of a client.
Important experiences that tempt the client to commit substantial resources. The essence of the desires of the consumer. The
opportunity to help clients become what they want to be.” —Gian Luigi
Longinotti-Buitoni
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Common Products “Dream” Products
Maxwell House StarbucksBVD Victoria’s SecretPayless FerragamoHyundai FerrariSuzuki Harley DavidsonAtlantic City AcapulcoNew Jersey CaliforniaCarter KennedyConners Pele
Source: Gian Luigi Longinotti-Buitoni
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The marketing of Dreams (Dreamketing)
Dreamketing: Touching the clients’ dreams.
Dreamketing: The art of telling stories and entertaining.
Dreamketing: Promote the dream, not the product.
Dreamketing: Build the brand around the main dream.
Dreamketing: Build the “buzz,” the “hype,” the “cult.”
Source: Gian Luigi Longinotti-Buitoni
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VI. Brands Rule!
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“Salt is salt is salt. Right? Not when it
comes in a blue box with
a picture of a little girl carrying an umbrella. Morton International continues
to dominate the U.S. salt market even though it charges more for a product that is demonstrably the same as many other
products on the shelf.”
Tom Asaker, Humanfactor Marketing
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What Can [Can’t] Be Branded?
“Branding is not a problem if you have the right mentality. You go to your team and you pin up a
$200 Swiss Army Watch. Competing in the ridiculously crowded sub-$200 watch market,
they made it into a brand name, named after the most irrelevant and useless thing in history [the
Swiss Army]. And you say, ‘Gang, if they can do it, we can do it.’ ”
Barry Gibbons
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The Heart of Branding …
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“WHAT’S OUR
STORY?”
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“Most companies tend to equate branding with the company’s marketing. Design a new marketing
campaign and, voilà, you’re on course. They are wrong. The task is much bigger. It is about fulfilling our potential … not about a new logo, no matter how
clever. WHAT IS MY MISSION IN LIFE? WHAT DO I WANT TO CONVEY TO PEOPLE? HOW DO
I MAKE SURE THAT WHAT I HAVE TO OFFER THE WORLD IS ACTUALLY UNIQUE? The brand has to give of itself, the company has to give of itself, the management has to give of itself. To
put it bluntly, it is a matter of whether – or not – you want to be … UNIQUE … NOW.”
Jesper Kunde, Unique Now ... or Never
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TP’s plea: No jargon!
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“EXACTLY HOW ARE WE
DRAMATICALLY DIFFERENT?”
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“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
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Can Be Done in Tech: “Don’t Leave Home Without Us.”
IBM*Intel
Microsoft*NortonCisco*
*Clearly did not have the best technology
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VII. Leadership:
GO FOR IT!
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Bill Parcells’ World/ Brand You World!
BLAME NOBODY!EXPECT NOTHING!DO SOMETHING!
NY Post (9/99)
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“If things seem under control, you’re just not
going fast enough.”
Mario Andretti
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“Reward excellent failures. Punish
mediocre successes.”
Phil Daniels, Sydney exec
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TP’s 7 Phoenix Technologies Biases
1. Great institution.2. Great product.3. (Potentially) great story.4. Hopelessly under-branded.5. Awesome opportunities—product & branding.6. Scope ought to be expanded (dramatically)—“the Cisco of my computer’s innards.”7. Engineering is cool—but there’s more to life.8. Success: a marketer-to-marketer sale, not an engineer-to-engineer sale.
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“Let’s make a dent in the universe.”
Steve Jobs
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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
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Thank You!