A Few Words About Intensely Networked Customers Cluster

1
A Few Words About Intensely Networked
Customers(Cluster 12)
Preliminary Findings

• An Opportunity for Industry Leadership
• Like We Have Never Seen Before!

2
Preliminary Findings Intensely Networked
(Cluster 12)

• Why Look at Intensely Networked? Why Not Examine
• Multi Nationals (Only), Or
• The WorldS Largest Firms, Or
• Global Industry Leaders
• Etc.?

3
Preliminary Findings Intensely Networked
(Cluster 12)

• Why Intensely Networked? The Reasons Are Founded
  in Our Initial Customer Work
• While Customer Needs Fall Along a Sophistication
  Continuum . . .
• Certain Firms Consistently Push the Envelope of
  Solutions, I.E. The Super Sophisticated
  Customer
• This Phenomenon Cannot Be Sufficiently Explained
  by Classic Early Adopter Characteristics or
  Sophistication
• The Question Becomes, Which Customers Are
  Defining the Upper Limits of the Continuum?

4
Preliminary Findings Intensely Networked
(Cluster 12)

• Furthermore . . .
• To Be 1 in the World, We Must Make a Name for
  Lucent Around the World, in All Industries,
  Across the Spectrum of Customer Sizes and
  Sophistication Levels
• And . . .
• Leadership - Credibility - Technology - Serving
• Are Key Attributes of Making a Name for Lucent
  Around the World

5
Preliminary Findings Intensely Networked
(Cluster 12)

• We Set Out With a Hypothesis That
  Communications Could Fundamentally . . .
• Drive
• Alter
• Define
• . . . The Competitiveness of the WorldS Leading
  Firms

6
Preliminary Findings Intensely Networked
(Cluster 12)

• To Examine the Hypothesis We Examined the
  Following Questions
• 1. Is Our Hypothesis So?
• 2. Can You Find Intensely Networked Firms?
• 3. If It Is So, How Does It Work for the
  Customer?
• 4. And Given the Answers to Questions 1 - 3 .
  . .

7
Preliminary Findings Intensely Networked
(Cluster 12)

• 4. And Given the Answers to Questions 1 - 3,
  Define, for Lucent . . .
• Who to Be for These Customers
• How to Serve These Customers
• What Lucent Can Do to Advance Their
  Competitiveness

8
Preliminary Findings Intensely Networked
(Cluster 12)

• What Have We Found?
• Certain Firms Do Use Communications Strategically
  in Order to Create Competitive Advantage for
  Their Firm

9
Preliminary Findings Intensely Networked
(Cluster 12)

• It in Fact Competitive Advantage Is Created When
  the Following Work in Concert
• Voice, Data and Multi Media Are Used in
  Combination to Create Meaningful Applications
  That Alter the Way People Work, to the Advantage
  of the Firm and ItS Customers
• And for Intensely Networked Firms, Uniqueness and
  True Competitive Advantage Comes Because
  Networking Creates Another Dimension of Benefit
  That Is Difficult for the FirmS Competition to
  Replicate

10
Preliminary Findings Intensely Networked
(Cluster 12)

• So Who Should Lucent Be for These Firms?
• One of the Three Communications Vendors
• (across voice, data, multi media networks,
  worktops and networking I.E. Lucent, IBM, CISCO,
  HP, WorldCom ATT, etc.)
• Most Chosen Worldwide by the 1, 2, and 3 Players
  in the WorldS Leading Industries

11
Preliminary Findings Intensely Networked
(Cluster 12)

• Why Is This Positioning Important?
• One of the Three Most Chosen Aligns and Defines
  Lucent Technologies With the Best in the World
• Serving 1, 2 and 3 Players in the WorldS
  Leading Industries Means Leadership and
  Credibility for Lucent With Customers Around the
  World in All Markets

12
Preliminary Findings Intensely Networked
(Cluster 12)

• And Therefore . . .
• For Lucent, an Intensely Networked Strategy to
  Lead, Along With the WorldS Leaders in ALL
  Communications, Is Fundamental to Lucent
• . . . Being 1 in the World!

13
Preliminary Findings Intensely Networked
(Cluster 12)

• So, If Intensely Networked Is Strategic to Lucent
  Technologies, Do We Want/Need a MNC Specific
  Strategy?
• Will It Advance Our Business?
• The Answer Is an Emphatic YES!
• It Is Fundamental to Serving Intensely Networked
  Customers, and to Becoming
• 1 in the World

14
Preliminary Findings Intensely Networked
(Cluster 12)
Creating Leading The Category
REGIONAL RESEARCH STILL UNDERWAY TO EXAMINE THE
EXTENT TO WHICH FIRMS FIT IN THESE CATEGORIES
FULLY DEVELOPED I/Ns , MNCS AND NATIONALS
Developing
FULLY DEVELOPED I/Ns, MNCS AND EC REGIONALS
CUSTOMER POSITION ON THE IN-NESS CURVE
Adopting
MNCS
MNCS
Thinking Wishing
AP
USA
EMEA
CALA
GLOBAL REGIONS
15
Preliminary Findings Intensely Networked
(Cluster 12)
Creating Leading The Category
THE ROLE OF AN INTENSELY NETWORKED STRATEGY
FULLY DEVELOPED I/Ns , MNCS AND NATIONALS
Developing
CUSTOMER POSITION ON THE IN-NESS CURVE
FULLY DEVELOPED I/Ns, MNCS AND EC REGIONALS
Adopting
MNCS
MNCS
THE ROLE OF A MNC STRATEGY
Thinking Wishing
AP
USA
EMEA
CALA
GLOBAL REGIONS
16
Preliminary Findings Intensely Networked
(Cluster 12)

• A MNC Strategy Matters Because
• ItS the Path to a Relationship With
  Thinkers/Wishers and Identifying Prospective
  Adopters
• MNC Is One of the Observable Cues for Intensely
  Networked Firms
• Early Adopters of Intensely Networked-Ness May
  Originate Most Often From the Need to Circumvent
  the Globe

17
Preliminary Findings Intensely Networked
(Cluster 12)Companies Interviewed

• US EMEA A/P CALA
• Federal Express Thyssen Komatsu Palacio de
  Hierro
• HP VA Technologies Sony Credicard
• Burlington Northern Bohler Uddeholm Bank of
  Tokyo UnibancoSanta Fe
• Frito-Lay ABB Marubeni Teletrim
• Fleming KLM JAL
• Pepsi Hoogovens LG
• CAR MAX Banque National Samsung de Paris
• GE Virgin France Lippo Group
• Exxon Bechtel Bank of East Asia
• Kraft UBS Telkom Indonesia
• Mayo Clinic

18
Preliminary Findings Intensely Networked
(Cluster 12)Knowing the Customer

• Intensely Networked Firms Have Extensive
  Communication Networks and Are Leaders in
  Effectively Using Communications to Enhance Their
  Business
• They Tend to Be U.S. Based
• They Are Likely to Be Within the Top 1-3 Within
  Their Industry

19
Preliminary Findings Intensely Networked
(Cluster 12)Knowing the Customer

• These Firms Are . . .
• Networked Within Themselves, Across Locations
• Networked Closely With Suppliers and Customers
• Using Communications to Unite the Elements of
  Their Value Chain

20
Preliminary Findings Intensely Networked
(Cluster 12)

• Knowing the Customer
• These Customers Treat Communications As a
  Priority
• Data Much Higher Priority Than Voice
• Focus on the Applications Within and Across the
  Network, Not on the Network Per Se
• Use Communications to Create Speed, Accessibility
  and Innovation
• In Serving Their Customers
• In Working With Suppliers

21
Preliminary Findings Intensely Networked
(Cluster 12)Knowing the Customer

• Industry Drives Intensely Networked-ness
• Cross-Enterprise Push to Collaborate/ Share
  Information Drives Need for Intense Networking
• Comes from the Firms Desire for Competitive
  Differentiation

22
Preliminary Findings Intensely Networked
(Cluster 12)

• Knowing the Customer
• These Customers Formally Plan and Execute Against
  a Corporate Communications Strategy, And . . .
• Are Moving From Mainframe-Centric to Distributed
  Network Computing, Frequently Using NT
• Manage Voice, Data and Network Applications
  Centrally
• Use Vendor Selection Standards and/or Vendor
  Selection Mandates To
• Take Advantage of Volume Discounts
• Create Reliability, Consistency, Flexibility and
  Control

23
Preliminary Findings Intensely Networked
(Cluster 12)Knowing the Customer

• These Firms . . .
• Tightly With Voice, Data and Network Managed
  Centrally and Together
• Data and Network Always Planned and Managed
  Strategically
• Voice Not Always Viewed As Strategic
• Focus Is Moving From Operations to Applications
• Want to Work With Fewer Vendors

24
Preliminary Findings Intensely Networked
(Cluster 12)

• Knowing the Customer
• Their Intensely Networked-Ness Varies
• By Geographic Location of Their Headquarters
• By Industry
• These Customers Are
• Usually at the Top of Their Industry
• Companies That Others Use to Benchmark
• More Likely to Be Multi National

25
Preliminary Findings Intensely Networked
(Cluster 12)

• Knowing the Customer
• These Firms Emerge As Intensely Networked by
  Following a Fairly Consistent Adoption Path
  Characterized By
• How Well Developed a Corporate Network They Have
  to Draw Upon
• How Well They Have Their Data House in Order

26
Preliminary Findings Intensely Networked
(Cluster 12)

• Knowing the Customer
• The Path Begins When
• The Firm Recognizes Their Network As Somewhat
  Strategic
• LANS Are Established and WANS Are Being Built
  to Transmit Data
• Electronic Links to Customers and Suppliers
  Become a Focus
• Are Often Beginning the SAP or BAAN Journey
• Data and the Network Are Managed Centrally
  (Typically Not Voice)

27
Preliminary Findings Intensely Networked
(Cluster 12)

• Knowing the Customer
• The Firm Has Emerged When
• Communiations Are Strategically and Centrally,
  Planned and Managed
• The Network Is in Place With Bandwidth,
  Reliability and Economic Benefits to the Firm
• Customers/Supplier Links Are Part of Their
  Communications Strategy and Plan

28
Preliminary Findings Intensely Networked
(Cluster 12)

• Serving the Customer
• These Customers Are Seeking Vendors Who Are
  Willing to Align Around a Relationship That
• Is Philosophical, Functional, Operational,
  Collaborative
• Performs Across the Firm According to an Agreed
  Upon Strategic Communications Plan

29
Preliminary Findings Intensely Networked
(Cluster 12)

• Serving the Customer
• These Customers Are Seeking Vendors Who Are
  Willing to Align Around a Relationship That
• Is Rich With Talent and Resources
• Business Acumen
• Decision Making Capacity and Authority
• Visionaries, Inventors
• Fluent in the Power of All Communications,
  Working in Harmony, Across Vendor Environments

30
Profile . . .Intensely Networked (Cluster
12)Serving the Customer

• Intensely Networked Firms Require of Their
  Vendors . . .
• The Highest Level of Service and Support
• Help Solving Business Problems
• A Long Term Partnership
• Skilled, Multi-Vendor Partnering