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Distinct or … Extinct Tom Peters Seminar2000 2000 ASTA World Travel Congress Las Vegas 26September.

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Presentation on theme: "Distinct or … Extinct Tom Peters Seminar2000 2000 ASTA World Travel Congress Las Vegas 26September."— Presentation transcript:

1 Distinct or … Extinct Tom Peters Seminar2000 2000 ASTA World Travel Congress Las Vegas 26September

2 N.W.O./Auto Mirror per Gentex: Portal for Wireless, Internet, Navigation, Etc. Cell phones, Voice mail, email, Internet access

3 Mike Charles. Stanford history prof. Whirlpool fridge. Out of 2% milk. Tap keypad on door. Webvan delivers in hours. Next, he sends his washer an email … Source: Business Week (09.00)

4 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

5 The Organization: Lean, Linked & Electronic

6 And Now the Equivalent … White Collar Revolution!

7 RR on “Assetless” [J.B.] 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.”

8 Advance Paradigm Data on 165,000,000 prescriptions per year; docs and insurers have access to records Reduces med errors; saves $2.88 per scrip [prescribing errors]; docs save $14,000 per year in review time Rev in ’99: $2B; $477M in ’98 Source: Business Week (09.00)

9 The Individual: Distinct … or Extinct

10 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

11 The Problem: The Commodity Trap

12 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

13 “The ‘surplus society’ has a surplus of similar companies, employing similar people, with similar educational backgrounds, working in similar jobs, coming up with similar ideas, producing similar things, with similar prices and similar quality.” Kjell Nordstrom and Jonas Ridderstrale, Funky Business

14 Funky Business: “To succeed we must stop being so **!#*+%! normal. In a winner-takes-all world, normal = nothing.”

15 Fighting Back: Use E-Commerce to Re-invent Everything!

16 www.cyveillance.com 08.30.2000/1221AM: 2,461,940,629

17 www.cyveillance.com 09.26.2000/0438AM: 2,661,492,286

18 27 days, 4 hours, 17 minutes … +199,551,657

19 Tomorrow Today: Cisco! 90% of $20B (=$50M/day) Savings in service and support from customer self- management: $550M

20 COMMUNITY SERVICES!/ CUSTOMER CONTROL!

21 Tomorrow Today: Cisco! 90% of $20B; save $550M C.Sat e >> C.Sat H Customer Engineer Chat Rooms/Collaborative Design ($1B “free” consulting) (45,000 customer problems a week solved via customer collaboration)

22 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

23 Anne Busquet/ American Express Not: “Age of the Internet” Is: “Age of Customer Control”

24 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 dealings Work with my doc, or world’s best medical experts, or humble support groups, on any health issue Recruit talent to help me with any project Develop professional docs collaboratively, with anyone Share my ideas with the world Chat with anyone, anywhere Research anything Take a course on any topic, from cooking to software Stay in touch with my 90 year old mom Play a gajillion games to while away the time

25 Message: One can do [very] sophisticated stuff on the Web!

26 “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

27 “The moral is that in an imperfect world of customer service, most customers prefer to cut to the chase and help themselves.” Adrian Slywotzky & David Morrison, Mercer Consulting

28 SWA Simple!!!!!!!!!!!! (customers call because the process is so easy they can’t believe they’re done) 30% of revenues directly from site (vs. 6% for others) Source: Business Week (09.00)

29 Amen! “The Age of the Never Satisfied Customer” Regis McKenna

30 Progressive “We don’t sell insurance anymore. We sell speed.” – Peter Lewis Digital cameras, wireless Net links, etc.: SOME CLAIMS PAID WITHIN 20 MINUTES! Source: Business Week (09.00)

31 Shop in your Underwear Source: SM’d logo for www.ae.com ae = American Eagle Outfitters

32 “Banking is necessary. Banks are not.” Dick Kovacevich, Wells Fargo

33 “It” is real! It is “Life and Death”! Dream BIG! Start Now! Study Hard! Play Hard! Play Fast! Go on Offense! 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!

34 Fighting Back: Providing Value- added Services!

35 B2B 1999 – 2004: 50X 2004: $7.4 Trillion Source: GartnerGroup (per Reuters 1-26-00)

36 “Net Nips Real Estate Sales Fees” Headline, p.1B, USAToday 07.05.00* *Homebytes.com, eHomes.com, YourHomeDirect.com, etc.

37 Message: “BOX” SELLERS LOSE!

38 Message: Racing up the V.A. Ladder. Doing More & More … & More & More & More … for/with the Customer and the Supply-Demand Chain!

39 09.11.2000: HP bids $18,000,000,000 for PricewaterhouseCoopers Consulting bus! (31,000 bods)

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

41 Can you ignore, dismiss, and mainly grouse about air travel & hotels for the likes of me????

42 Fighting Back: It’s the Experience!

43 “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

44 “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

45 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

46 “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

47 Hmmmm(?): “Only” Words … Story Adventure Smile Focus Plot Passion

48 WHAT’S THE [your] PLOT?

49 Plot Williams Sonoma = 6 [was 10] Crate & Barrel = 8 Sharper Image = 9+ Smith & Hawken = 8+ Vermont Country Store = 8+ Garnet Hill = 9 L.L. Bean = 5 [was 9+] Land’s End = 7+ Colonial Williamsburg = ?

50 Fighting Back: Women Rule!

51 $4.8T > Japan 9/27.5/3.6T > Germany

52 ????????? Home Furnishings … 94% Vacations … 92% Houses … 91% Bank Account … 89% Health Care … 75% Etc.

53 Women … 50+% (!!!) of Web users; 6 of 10 new users; 83% of wired women are primary decision makers for family healthcare, finances, education. Source: Business Week; Jupiter Communications

54 Yeow! 1970 … 1% 2002 … 50%

55 OPPORTUNITY NO. 1!

56 Read This Book … EVEolution: The Eight Truths of Marketing to Women Faith Popcorn & Lys Marigold Faith Popcorn

57 EVEolution: Truth No. 1 Connecting Your Female Consumers to Each Other Connects Them to Your Brand

58 “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

59 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

60 Speaking of Enormous [Missed] [Huge] Opportunities...

61 Subject: Marketers & Stupidity It’s 18-44, stupid!

62 Subject: Marketers & Stupidity Or is it: 18-44 is stupid, stupid!

63 2000-2010 Stats 18-44: -1% 55+: +21% (55-64: +47%)

64 Aging/“Elderly” $$$$$$$$$$$$ “I’m in charge!”

65 Priorities: Aging/“Elderly” Experiences … Convenience … Comfort … Access … Respect!

66 Fighting Back: BRAND POWER!

67 Brand = You Must Care! “Success means never letting the competition define you. Instead you have to define yourself based on a point of view you care deeply about.” Tom Chappell, Tom’s of Maine

68 “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

69 Leadership: Passion Rules!

70 “Create a Cause, not a ‘business.’ ” Gary Hamel, Fortune (06.00), on re- inventing a company (Exemplar #1: Charles Schwab)

71 Brand Leadership: ENTHUSIASM RULES! “I am a dispenser of enthusiasm.”/ Ben Zander


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