NAPM International Purchasing Conference

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NAPMInternational Purchasing Conference
Educational ExhibitNew Orleans30 April 2000
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WOW!
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Larry BillYour Moment!
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No Wiggle Room! Incrementalism is innovations
worst enemy. Nicholas Negroponte
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It means nothing less than the total reinvention
of this company.
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Jacques New New FordFord MSN CarPointFord
Yahoo!Ford OracleFord HP/MCIWorldcomEtc.Et
c.
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NAPM Not Purchasing!NAPM Not Supply Chain
Mgt.NAPM TE/IR!Total Enterprise/Industry
Reinvention!
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Forces _at_ WorkThe Destruction Imperative!
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Forget LearnThe problem is never
how to get new, innovative thoughts into your
mind, but how to get old ones out.
Dee Hock
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Steve Ross had a wonderful philosophy People
get fired for not making mistakes.Bob Pittman
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The Gales of Creative Destruction29M -44M
73M4M 4M - 0M
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Brand InsideBrand Org!
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108 X 5vs. 8 X 1 540 vs. 8
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And Now the Equivalent White Collar
Revolution!
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The Pincer 5Destructive entrepreneurs/ Global
CompetitionWhite Collar RobotsTHE INTERNET!
E.g. GM Ford DaimlerChryslerGlobal
Outsourcing E.g. India, MexicoSpeed!!
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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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The -!! in the middleJim Clark on
Healtheon/WebMD twixt docs, patients,
insurers and providers 275B of 400B in waste
source Michael Lewis, The New New Thing
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Incidentally CEO Jeff ArnoldAge 30First
Start-up Age 24
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We want to be the air traffic controllers of
electrons.Bob Nardelli, GE Power Systems
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Buzzsaw.comBuilders, Owners, Architects,
Contractors, Suppliers4T industry5,300
commercial bldg.-project specs on-line 70 per
day
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Message Supply Chain Integration demands
total reinvention of the corporate structure,
systems and culture. E.g.
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E-business is the final nail in the coffin for
bureaucracy at GE.Jack Welch/GE Annual Report
2000
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Magic!Internetworked Marketsmeet
Intranetworked WorkersSource The
Cluetrain Manifesto The End of Business as Usual
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Hyperlinks subvert hierarchy!The Cluetrain
Manifesto
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GET IT? The Character of the Web, per The
Cluetrain Manifesto HyperlinkedDecentralizedH
ypertimeOpen, direct accessRich dataBroken no
one owns it or controls itBorderless
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Words to Live By Hierarchy is an
organization with its face toward the CEO and its
ass toward the customer.Kjell Nordstrom and
Jonas Ridderstrale, Funky Business
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Brand InsideBrand Work!
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Why are there no books on how to create a Cool,
Rocking, WOW-producing Purchasing Department?
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You are the Rock Stars of the B2B Age!
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I.e. Welcome to the Y2K New Orleans Jazz and
Real Cool Purchasing Dudes Festival!
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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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Every project we take on starts with a question
How can we do whats never been done
before?Stuart Hornery, CEO, Lend Lease
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The greatest dangerfor most of usis not that
our aim istoo highand we miss it,but that it
istoo lowand we reach it.Michelangelo
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Brand InsideBrand Talent!
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Issue Y2KThe Great War for Talent!
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There is no talent shortage if you are
a GPTWGreat Place To Work
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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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The NAESP
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Attributes of Those Who Made the 10th Grade
History Book

• Committed!
• Determined to make a difference!
• Focused!
• Passionate!
• Irrational about their lifes project!
• Ahead of their time / Paradigm busters!
• Impatient! / Action Obsessed

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Attributes of Those Who Made the 10th Grade
History Book

• Made lots of people mad!
• Flouted the chain of command!
• Creative / Quirky / Peculiar! / Rebels! /
  Irreverent!
• Masters of improv / Thrive on chaos / Exploit
  chaos!

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Attributes of Those Who Made the 10th Grade
History Book

• Forgiveness Permission
• Bone honest!
• Flawed as the dickens!
• In touch with their followers aspirations
• Damn good at what they do!

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??????????????????He grew his hair long,
played guitar in a rock band, chased girls, got
into trouble. At age 17 he was flogged by his
house master, who described him as the most
difficult boy Ive ever had to deal with.
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Tony Blairtalk/May 2000
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Brand OutsideContextNo Commodities!
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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
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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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Were getting better at Six Sigma every day.
But we really need to think about the customers
profitability. Are customers bottom lines really
benefiting from what we provide them?Bob
Nardelli, GE Power Systems
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Message (Bud) The distributor is dead. Long
live the value-added, knowledge-intensive
business partner.
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Brand OutsideStrategy 1Lead the Customer!
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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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My NAPM Message 04.30.00 LEADERSHIP!PERIOD!
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Brand OutsideStrategy 2Use E-Commerce to
Re-invent the Business!
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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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Tomorrow Today Cisco!70Save 500M (service
and tech support)Customer Engineer Chat Rooms
(1B?) C.Sat e C.Sat HEarths MVC
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Cherry PickingVertical MarketsPlasticsnet.com
370B sellers pay 5K to 8K for storefront
5 to 10 cut Hook community services
(database, catalogs, forums, industry job bank,
etc.)
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Message COMMUNITY!/ COMMUNITY SERVICES!
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Begin by filling the stadium. Then offer more
and more services. Hopefully, as you add more on
top, the site becomes more integrated with the
work process, until it is invaluable.Carl
Bass, CEO, Buzzsaw.com
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Community Somewhat mediated, segmented chat
rooms (must be managed/ seeded)User-friendly
technical/ professional infoIndustry
intelligenceSome very timely stuff/
attractorsHotlinks by the gazillion (to
professional and unrelated stuff)Expert/ advisor
opinions (info, chats, etc.)Opportunity for
users to build own Web page
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Message B2B is not the cost cutting program
du jour!
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Message Remember the Soft stuff!Soft
Hard Waterman Peters
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Message Paradox TRUST RULES!
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Speaking of paradoxes
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B2B1999 2004 50X2004 7.4Source
GartnerGroup (per Reuters 1-26-00)
T
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GM/Ford/DaimlerChrysler (02-27)Auto parts
supply Co.240B (500B)I.P.O.
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Goal?Drive profits to zero!Remember AMR
and dynamic pricing.
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Anne Busquet/ American ExpressNot Age of the
InternetIs Age of Customer Control
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Jack on the Webs Naked TruthYou desperately
want to have enough technology in your product
offering, so that you dont end up being in a
commodity situation.
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Where does the Internet rank in priority? Its
No. 1, 2, 3, and 4. Jack Welch

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Web Strategy GE Power SystemsLaunch and
Learn(4 sites in 30 days)
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There are 2 Kinds of Defensevs.Offense
Fend off upstarts.Reinvent our marketspace!
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Jargon Bath!Bureaucracy free Systemically
integrated Internet intense Knowledge based
Time and location free Instantly responsive
Customer centric Mass customization enabled.
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Translation Bureaucracy free Flat org, no
B.S.Systemically integrated Whole supply chain
tightly wired/ friction freeInternet intense
Do it all via the WebKnowledge based Open
accessTime and location free Whenever,
whereverInstantly responsive Speed
demonsCustomer centric Customer calls the
shotsMass customization enabled Every product
and service rapidly tailored to client
requirements
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Brand OutsideStrategy 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 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
thats not work or home. Its the place our
customers come for refuge.Nancy Orsolini,
District Manager
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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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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
Theatre Every Business a Stage
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Think Supply Chain-ingB2B-ing
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This is the end of the pure product era. For
instance, car makers are beginning to understand
that the car is a platform for delivering
services that drive the customer
experience.Carly Fiorina, HP _at_ Comdex 99
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Brand LeadershipPassion Rules!
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Brand Leadership!A key perhaps the key to
leadership is the effective communication of a
story.Howard Gardner Leading Minds An
Anatomy of Leadership
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Brand LeadershipENTHUSIASM RULES!I am a
dispenser of enthusiasm./ Ben Zander
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Message to NAPM You are Re-invention
Evangelists!
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Ann Richards DogmaShow up!Know your
message!PUT YOURSELF AT RISK EVERY DAY!
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This is your moment. This is your game to lose
or WIN. Now!