Coping with change

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Coping with change

• Ian Benn
• Managing Director
• Brass Consulting

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Coping with change

• An astonishing place to be
• The rise of the power brand
• Partnership the new core competence
• Dot com madness

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Coping with change
An astonishing place to be The past is a
foreign country they do things differently
there - S E Hinton, The Outsiders
Change
Change
Change
Change
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What would you rather
OR
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1990s

• Fall of the Berlin Wall
• Globalisation
• Population movements
• Economic growth
• Internet/Technology
• Human Genome project
• New generation political leaders

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2000s

• Globalisation backlash
• Ambulance chasers
• Dot Bomb
• September 11
• Holy wars around the world
• and we are only 750 days in!

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Economic Outlook
IT DOES not matter where you are, America,
Europe or Japan Share values have been dropping
across the industrial world Economist.com 06
March 2001
There's a bit more optimism out there, and there
is some muttering about turning points," said
David Thwaites, a European strategist at BNP
Paribas in London. ft.com 06 March 2001
Barry Hyman, market strategist for Ehrenkrantz,
King Nussbaum believes the recent strength in
the market is more than just a short-term
rally businessweek.com 06 March 2001
Stocks are continuing their broad-based rally,
with NYSE and Nasdaq breadth solidly positive.
Volume is surprisingly strong businessweek
.com 06 March 2001
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Stock Market
Price
High
Low
Nasdaq-100 Index 36 months
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Financial analysis explained!
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Nasdaq 2 year view
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Nasdaq 10 year view
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A view on business innovation

• Where do radical new business concepts
  come from? The answer is this new
  business concepts are always, always the
  product of lucky foresight
• - Gary Hamel, Leading the Revolution, 2000

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SMS Messaging
The SMS market in the EU reached one billion
short messages per month in April 1999.The
market doubled in about six months
150 million
75 million
70 million
70 million
70 million
60 million
60 million
60 million
50 million
25 million
15 million
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September 11 and IT strategy
Meta Group Oct 2001
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Coping with change

• The rise of the power brand

Nike is leveraging the deep emotional connection
that people have with sports and fitness. With
Starbucks, we see how coffee has woven itself
into the fabric of peoples lives, and thats our
opportunity to create a frame of mind thats
unique. - Scott Bedbury, CMO Starbucks, ex-CMO
Nike
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Brand versus infrastructure
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Fortune Magazine Most admired companies
Company 2000 1999

• General Electric 1 1
• Cisco Systems 2 8
• Microsoft 3 2
• Intel 4 4
• Wal-Mart 5 7
• Sony 6 14
• Dell 7 9
• Nokia 8 New entrant
• Home Depot 9 20
• Toyota 10 16

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Coping with change

• Partnership the new core competence

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Core competence and the birth of the outsourcer

• Strip out non-core
• Build around the brand essence
• The third way
• but are you sure?

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The future of outsourcing

• Trust the new core competence
• Value over cost
• Standard Transactional Highways

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IT Business Models

• Managed Services
• Outsource
• External
• ASP
• Pay-as-you-Grow
• Capacity on Demand
• Industry/consortia vs. Vendor sale
• Dont just leave it to procurement

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Coping with change

• Dot com madness
• I took the initiative in creating the internet
• - Al Gore, 1999
• If Al Gore invented the internet, I invented the
  spellcheck
• - Dan Quayle, 1999

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Why I love the web

• Efficient
• Cheap
• Reach
• Fast
• Martini!
• The marketeers dream

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Why I loathe the web

• Differentiation
• Interpretation of data
• Using the web when you are cross
• Dis-intermediation

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Why dot com was never going to win

• Product
• Control
• Trust
• Recognition
• Customer relationship
• Cost of delivery

hoo
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Building a scorecard

• Product Control Trust Recognition
  Customer Cost of
• 
  Relationship Delivery

Dot Com Existing Business
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Cost of delivery - The new venture trap

• Duplicated costs
• Little business relevance
• Back on the standard transactional highway

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So what to do?

• Accelerating change demands flexibility
• Flexibility demands a change in attitudes to
  relationships
• Non-core are you sure?
• IT needs are high but vendors are desperate so
  timing is great
• Dont underestimate the internet just because
  most people got it wrong first time out

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Coping with change

• Ian Benn
• Managing Director
• Brass Consulting
• itbenn_at_cs.com