1. Connect ! Tom Peters/01.30.2003

2. All to All

3. “A Big Electronics Show Is All About Connections” —headline, New York Times/ 01.13.2003/ Consumer Electronics Show > COMDEX

4. NOKIA Connecting People

5. UBIQUITY! “It’s the cars, not the tires, that squeal”: NYT/Circuits/10.25.01): E-ZPass (6M in NE), tests with McD’s, gas stations and parking lots next. OnStar (GM/1.5M). Plus: “black boxes,” GPS (the case of the $450 ticket), CA smog offenders.

6. “Dawn Meyerreicks, CTO of the Defense Intelligence Systems Agency, made one of the most fateful military calls of the 21 st 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

7. Imagination!

8. Forget>“Learn” “The problem is never how to get new, innovative thoughts into your mind, but how to get the old ones out.” Dee Hock

9. “Most of our predictions are based on very linear thinking. That’s why they will most likely be wrong.” Vinod Khosla, in “GIGATRENDS,” Wired 04.01

10. “There’s no use trying,” said Alice. “One can’t believe impossible things.” “I daresay 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

11. I’net … … allows you to dream dreams you could never have dreamed before!

12. “Don’t rebuild. Reimagine.” The New York Times Magazine on the future of the WTC space in Lower Manhattan/09.08.2002

13. “Suppose—just suppose—that the Web is a new world we’re just beginning to inhabit. We’re like the earlier European settlers in the United States, living on the edge of the forest. We don’t know what’s there and we don’t know exactly what we need to do to find out: Do we pack mountain climbing gear, desert wear, canoes, or all three? Of course while the settlers may not have known what the geography of the New World was going to be, they at least knew that there was a geography. The Web, on the other hand, has no geography, no landscape. It has no distance. It has nothing natural in it. It has few rules of behavior and fewer lines of authority. Common sense doesn’t hold here, and uncommon sense hasn’t yet emerged.” David Weinberger, Small Pieces Loosely Joined

14. “Imagine a world where a citizen could search the globe to assemble “my government,” the ultimate in customized, customer-centric services. Health care from the Netherlands, business incorporation in Malaysia …” Don Tapscott

15. “The e-conomy is one of re-intermediation, where new technologies make it possible to radically increase complexity and efficiency with the introduction of new marketplaces. In these markets, value chains constantly reorganize as the demands of the consumer and business change.” Thomas Koulopoulos, Delphi Group

16. Wild, Wacky, Weird!

17. Impact No. 1/ Logistics & Distribution: Wal*Mart … Dell … Amazon.com … Autobytel.com … FedEx … UPS … Ryder … Cisco … Etc. … Etc. … Ad Infinitum.

18. Autobytel: $400. Wal*Mart: 13%. Source: BW(05.13.2002)

19. 2.5G, 3G, 4G Windows Symbian Java Bluetooth Wi-Fi PCs-PDAs-Cell“phones” E-business vs. M-business Etc.

20. NTT/DoCoMo/i-motion/“remote control for your life”/“If Tokyo and DoCoMo are the first capitals of the wireless Internet industry, Helsinki and Nokia have been the wellsprings of mobile telephony—Finland leads the world in both Internet connections and mobile phones per capita.” Source: Howard Rheingold/Smart Mobs

21. Outsider’s view: (1) Billions are being spent, even in a down market. (2) NOBODY HAS A CLUE AS TO WHO THE WINNERS—AND LOSERS— WILL BE. (3) Yet you must play. Now. Hard. Fast.

22. The Real “News”: X1,000,000 TowTruckNet.com

23. Yikes!

24. “We’re in the Internet age, and the average patient can’t email their doctor.” Donald Berwick, Harvard Med School

25. “In an era when terrorists use satellite phones and encrypted email, US gatekeepers stand armed against them with pencils and paperwork, and archaic computer systems that don’t talk to each other.” Boston Globe (09.30.2001)

26. “Once devised in Riyadh, the tasking order took hours to get to the Navy’s six aircraft carriers—because the Navy had failed years earlier to procure the proper communications gear that would have connected the Navy with its Air Force counterparts. … To compensate for the lack of communications capability, the Navy was forced to fly a daily cargo mission from the Persian Gulf and Red Sea to Riyadh in order to pick up a computer printout of the air mission tasking order, then fly back to the carriers, run photocopy machines at full tilt, and distribute the documents to the air wing squadrons that were planning the next strike.” –Bill Owens, Lifting the Fog of War

27. “Many flaws remained—flaws not from poor performance, but from an ingrained command hierarchy and an outmoded concept of war that had taken root during World War II and then during the cold war. Desert Storm was a joint military operation in name rather than in fact. … The battlefield was divided among service components. … The fiefdoms existed not only because of tradition, service rivalry and the egos of the commanders; they were also there because of technological limitations. We did not have the communications capability to do it differently.” –Bill Owens, Lifting the Fog of War

28. “SOS : Emergency Agencies Often Unable to Talk to Each Other” —headline, p1, USA Today/11.20.2002

29. Defective Orgs!

30. “The organizations we created have become tyrants. They have taken control, holding us fettered, creating barriers that hinder rather than help our businesses. The lines that we drew on our neat organizational diagrams have turned into walls that no one can scale or penetrate or even peer over.” —Frank Lekanne Deprez & René Tissen, Zero Space: Moving Beyond Organizational Limits.

31. “The coefficient of friction associated with the grunge of business is amazing!” Michael Schrage

32. [ Words to Live By … “Hierarchy is an organization with its face toward the CEO and its ass toward the customer.” Kjell Nordström and Jonas Ridderstråle, Funky Business]

33. “The corporation as we know it, which is now 120 years old, is not likely to survive the next 25 years. Legally and financially, yes, but not structurally and economically.” Peter Drucker, Business 2.0 (08.00)

34. “E-business is the final nail in the coffin for bureaucracy at GE.” Jack Welch/ GE Annual Report 2000

35. “Hyperlinks subvert hierarchy!” The Cluetrain ManifestoCluetrain

36. Corporate Resistance to “It” “It all goes back to fear of losing control!” The Cluetrain Manifesto

37. m-“On” or Out of the Loop “Managers in Finland always keep their phones on. Customers expect fast reactions. And if you can’t reach a superior, you make many decisions yourself. Managers who want to influence decisions of subordinates must keep their phones open.” —Risto Linturi, Finnish m-guru, in Howard Rheingold’s Smart Mobs

38. “A bureaucrat is an expensive microchip.” Dan Sullivan, consultant and executive coach

39. E.g. … Jeff Immelt: 75% of “admin, back room, finance” “digitalized” in 3 years. Source: BW (01.28.02)

40. BW Cover/02.2003 “ IS YOUR JOB NEXT? A New Round of GLOBALIZATION Is Sending Upscale Jobs Offshore. They Include Chip Design, Basic Research—even Financial Analysis. Can America Lose These Jobs and Still Prosper?”

41. “The Futility of Size … “[Regarding this issue] the new process of virtualization fully asserts itself. Virtualization is the recognition that territorial size does not solve economic problems. … Economic access must become the substitute for increasing domain.” Richard Rosecrance, The Rise of the Virtual State

42. [“Don’t own nothin’ if you can help it. If you can, rent your shoes.” F.G.]

43. “The new dependence on productive assets located within someone else’s state represents an unprecedented trust in the integrity and peacefulness of strangers.” “In its pure form – an ideal model toward which many states are tending – the virtual state carries within it the possibility of an entirely new system of world politics.” Richard Rosecrance, The Rise of the Virtual State

44. “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]

45. “This is the first meter of a 10-kilometer race. Eventually, all markets will come to resemble today’s foreign exchange market.” Hamid Biglari, Head of Corporate Strategy, Citigroup, in “GIGATRENDS”, Wired 04.01

46. Glimpses of the Future

47. “Our entire facility is digital. No paper, no film, no medical records. Nothing. And it’s all integrated—from the lab to X-ray to records to physician order entry. Patients don’t have to wait for anything. The information from the physician’s office is in registration and vice versa. The referring physician is immediately sent an email telling him his patient has shown up. … It’s wireless in-house. We have 800 notebook computers that are wireless. Physicians can walk around with a computer that’s pre-programmed. If the physician wants, we’ll go out and wire their house so they can sit on the couch and connect to the network. They can review a chart from 100 miles away.” — David Veillette, CEO, Indiana Heart Hospital (Healthleaders/12.2002)

48. Read It Closely: “We don’t sell insurance anymore. We sell speed.” Peter Lewis, Progressive

49. “By combining powerful computer technology and other modern information-based systems we could make a revitalized, leaner military force that is designed to outsee, outmaneuver and outfight any foe.” —Bill Owens, Lifting the Fog of War

50. From: Weapon v. Weapon To: Org structure v. Org structure

51. “The 1990s was a decade of multiple revolutions—political, economic, technological— that changed so thoroughly the way we live that the past no longer seems a good guide to the future (in fact the past seems precisely the wrong guide). So it is in the world of military affairs. The RMA is our opportunity to use the new information technology to change the very nature of the military—in a way that could reinvigorate American political, diplomatic and economic leadership in the world for decades to come.” –Bill Owens, Lifting the Fog of War

52. “[The RMA] means creating a synergy in new weapons, sensors and communications that is made possible by the successful melding of the technological applications with an information- age military organization.” –Bill Owens, Lifting the Fog of War

53. “Substituting information for armor is a disconcerting notion to a tank soldier. … Soldiers will learn that battle field awareness can be as comforting as armor.” Source: “A Different War,” Peter Boyer (The New Yorker/07.01.2002)

54. “If early soldiers idealized Napoleon or Patton, network-centric warriors admire Wal*Mart, where point-of-sale scanners share information on a near real- time basis with suppliers and also produce data that is mined to help leaders develop new strategic or tactical plans. Wal*Mart is an example of translating information into competitive advantage.” —Tom Stewart, Business 2.0

55. RMA: (1) Battlespace awareness. (2) C4I. (Command, control, communications, computers & intelligence.) (3) Precision force use.

56. The New Infantry Battalion/ New York Times/12.01.2002 “Pentagon’s Urgent Search for Speed.” 270 soldiers (1/3 rd normal complement); 140 robotic off-road armored trucks. “Every soldier is a sensor.” “Revolutionary capabilities.” Find-to-hit: 45 minutes to 15 minutes … in just one year.

57. Old: Heavy. Seek direct contact. New: Stryker brigade. Stealth. Avoid direct contact—“choose your moment.” “Depend heavily on information technology, and enhanced intelligence, surveillance and reconnaissance capabilities.” Source: “A Different War,” Peter Boyer (The New Yorker/07.01.2002)

58. “We must not only transform our armed forces but the Defense Department that serves them— by encouraging a culture of creativity and intelligent risktaking. We must promote a more entrepreneurial approach: one that encourages people to be proactive, not reactive, and to behave less like bureaucrats and more like venture capitalists; one that does not wait for threats to emerge and be ‘validated,’ but rather anticipates them before they appear and develops new capabilities to dissuade them and deter them.” —Donald Rumsfeld, Foreign Affairs

59. Eric’s Army Flat. Fast. Agile. Adaptable. Light … But Lethal. Brand You/ Talent/ “I Am An ARMY Of One.” Info-intense. Network-centric.

60. “A seismic shift is underway in healthcare. The Internet is delivering vast knowledge and new choices to consumers—raising their expectations and, in many cases, handing them the controls. [Healthcare] consumers are driving radical, fundamental change.” Deloitte Research, “Winning the Loyalty of the eHealth Consumer”

61. Duh???*: “We’ve come up with a solution. … We’ve begun to create a form of communications that is much better than we had before, and that’s allowed us to gather better data. We’ve finally realized that we have an interplay with other hospitals and with pre-hospital.”—Dr. Ben Honigman, ER, U. Colorado Hospital, on “diverts” (Denver Post/05.05.02) *Internet + Data + Open data exchange + Barrier busting

62. Masters of information acquisition, manipulation, dissemination, and utilization. Networkmeisters. Agile. Temporary. Virtual is thy name. Motto: Applied information is power/wealth.

63. What’s the Common Denominator? The Dutch … the British … the Rothschilds … Cargill … Sumitomo … the KGB … the CIA … Mossad … Enron … Wal*Mart … McKinsey … FedEx … UPS … Mr. Speaker … Henry Kissinger … Executive secretaries … the Corner Grocer … Women-in- general?

64. Question Authority!

65. “Parents, doctors, stockbrokers, even military leaders are starting to lose the authority they once had. There are all these roles premised on access to privileged information. … What we are witnessing is a collapse of that advantage, prestige and authority.” Michael Lewis, next

66. “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 Nordström and Jonas Ridderstråle, Funky Business

67. “Supply Chain” 2000: “When Joe Employee at Company X launches his browser, he’s taken to Company X’s personalized home page. He can interact with the entire scope of Company X’s world – customers, other employees, distributors, suppliers, manufacturers, consultants. The browser – that is, the portal – resembles a My Yahoo for Company X and hooks into every network associated with Company X. The real trick is that Joe Employee, business partners and customers don’t have to be in the office. They can log on from a cell phone, Palm Pilot, pager or home office system.” Red Herring (09.2000)

68. “In the second half of the twentieth century a new society of individuals emerged—a breed of people unlike any the world has ever seen. Educated, informed, traveled, they work with their brains, not their bodies. They do not assume that their lives can be patterned after their parents’ or grandparents’. Throughout human history, the problem of identity was settled in one way—I am my mother’s daughter; I am my father's son. But in a discontinuous and irreversible break with the past, today’s individuals seek the experiences and insights that enable them to find the elusive pattern in the stone, the singular pattern that is ‘me.’ ” —Shoshana Zuboff & James Maxmin, The Support Economy

69. Pulling It All Together I

70. “UPS wants to take over the sweet spot in the endless loop of goods, information and capital that all the packages [it moves] represent.” ecompany.com/06.01 (E.g., UPS Logistics manages the logistics of 4.5M Ford vehicles, from 21 mfg. sites to 6,000 NA dealers)

71. WHAT CAN BROWN DO FOR YOU?

72. Nardelli’s goal ($50B to $100B by 2005): “… move Home Depot beyond selling ‘goods’ to selling ‘home services.’ … He wants to capture home improvement dollars wherever and however they are spent.” E.g.: “house calls” (At-Home Service: $10B by ’05?) … “pros shops” (Pro Set) … “home project management” (Project Management System … “a deeper selling relationship”). Source: USA Today/06.14.2002

73. “Our mission is to go from being the world’s premier timeshare—which is a large idea in a small industry—to being what we call the market makers for global travel and leisure. We need to enable developers to be involved in more travel and leisure products, rather than just the timeshare side.”— Ken May, RCI (Source: Developments)

74. Is There a There There: The Ericsson Case 1. 50+% Mfg to Solectron/Flextronics 2. Substantial R&D to India 3. Division for licensing technology 4. JV with Sony on “crown jewel” handsets 5. Net: “a wireless specialist that depends on services more than manufacturing, on knowledge more than metal” Source: BW/11.04.02

75. HUMANA’s Dreams. Emphesys: “Put everything on the Internet.” CEO Mike McCallister, charge to 200-person “outside” I’net unit: “Imagine an ideal Web-based health insurance system and then create a product as close as possible to that vision.” Start with own employees: SmartSuite. Member employees: “Plan their own coverage and shoulder more costs.” Dell is model: “Fully customized health for every individual.” Marketing pitch for employers: “Buy choice for employees through a single source—Humana.” Source: Fortune/05.27.2002

76. “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

77. 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).

78. Everybody’s Doin’ It! “The leading Indian outsourcers reckon that the key to their long-term prosperity is bagging ever larger deals and moving ever higher up the value chain.” —The Economist/01.11.2003

79. From “Tank” to Future Combat System (e.g., “virtual tank”) Analogous to switch from “circuit breaker makers” to GE Industrial Systems, or “guys in brown trucks” to “Let Brown do it.” Source: “A Different War,” Peter Boyer (The New Yorker/07.01.2002)

80. “ 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

81. The “Experience Ladder” Experiences Services Goods Raw Materials

82. Ladder Position Measure Solutions Success (Experiences) Services Satisfaction Goods Six-sigma

83. Pulling It All Together II

84. Case: CRM

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

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

87. “CRM has, almost universally, failed to live up to expectations.” Butler Group (UK)

88. Psych 101: Strongest Force on Earth? My need to be in perceived control of my universe!

89. 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

90. No! No! No! FT: “The aim [of CRM] is to make customers feel as they did in the pre- electronic age when service was more personal.” Rebuttal: (1) Service sucked in the “pre-electronic” age. (2) NewGen believes in the screen! (So do I.)

91. CGE&Y (Paul Cole): “Pleasant Transaction” vs. “Systemic Opportunity.” “Better job of what we do today” vs. “Re- think overall enterprise strategy.”

92. Message CRM: Madness = 600 CRM vendors. ???: “Do it all” or “do something.” Past: over-invest in low- value customers. Idea: better experience, not off-load work to customer. Relationship = f(dialogue & knowledge & duration). Key: new attitudes, DESTRUCTION of functional barriers to info & action.

93. Revolution Now!

94. “Ebusiness is about rebuilding the organization from the ground up. Most companies today are not built to exploit the Internet. Their business processes, their approvals, their hierarchies, the number of people they employ … all of that is wrong for running an ebusiness.” Ray Lane, Kleiner Perkins

95. Message: eCommerce is not a technology play! It is a relationship, partnership, organizational and communications play, made possible by new technologies.

96. Message: There is no such thing as an effective B2B or Internet-supply chain strategy in a low-trust, bottlenecked- communication, six-layer organization.

97. WebWorld = Everything Web as a way to run your business’s innards Web 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 Life Web = Everything (P.D. to after-sales) Web forces you to focus on what you do best Web as entrée, at any size, to World’s Best at Everything as next door neighbor

98. Jargon Bath! Bureaucracy free … Systemically integrated … Internet intense … Knowledge based … Time and location free … “Instantly” responsive … Customer centric … Mass customization enabled.

99. 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

100. From: Supply-chain Optimization To: Design-chain Optimization Source: Cadence Design Systems

101. Q : Is that all there is? A : Quite possibly. “Roche’s New Scientific Method”— Fast Company. And? X-Functional Teams (NO STOVEPIPES!). “Fail fast.” “The only way to embrace a technological revolution, Roche has discovered, is to unleash an organizational revolution.”

102. Innovation & Speed’s “New Basics”* 1. XFTs are the “culture.” 2. Project-centric. 3. Open “talent market.” 4. “Cause-based” projects. 5. Ubiquitous “open systems” IS—at home & throughout supply chain. Web based. 6. F-L-A-T. 7. EVP (S.O.U.B), etc. *Innovation, Speed, CRM, “Experience”/ “Solution” demand this

103. “If you don’t like change, you’re going to like irrelevance even less.” —General Eric Shinseki, Chief of Staff, U. S. Army