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TomPeters’EXCELLENCE!
FoodserviceEquipmentDistributorsAssociation31March2016/Tucson(Slidesavailableat)ConradHilton
CONRAD
HILTON,atagalacelebrating
hiscareer,wascalledtothepodiumandasked,
“Whatwerethemostimportantlessonsyoulearnedinyourlonganddistinguishedcareer?”
Hisanswer…“Remember
totucktheshowercurtaininsidethebathtub.”
“EXECUTIONIS
STRATEGY.”
—FredMalek
SoftwareIsEatingtheWorld
“Softwareiseatingtheworld.”—MarcAndreessen“Automationhasbecomesosophisticatedthatonatypicalpassengerflight,ahumanpilotholdsthecontrolsforagrandtotalof…3
minutes.[Pilots]havebecome,it’snotmuchofanexaggerationtosay,computeroperators.”
Source:NicholasCarr,“TheGreatForgetting,”TheAtlantic,11.13“[MichaelVassar/MetaMedfounder]iscreatingabetterinformationsystemandnewclassofpeopletomanageit.‘Almostallhealthcarepeoplegetisgoingtobedone—hopefully—byalgorithmswithinadecadeortwo.
Weusedtorelyondoctorstobeexperts,andwe’vecrowdedthemintobeingsomethinglikefactoryworkers,wheretheirjobistoseeonepatientevery8to11minutesandimplementaby-the-booksolution.I’mtalkingaboutcreatinganew‘expertprofession’—medicalquants,almostlikehedgefundmanagers,whocoulddothehigh-levelanalyticalworkofdirectingalltheinformationthatflowsintotheworld’sharddrives.
DoctorswouldnowbeaidedbyVassar’snewinformationexpertswhowouldbeaidedbyadvancedartificialintelligence.”—NewYork/0624.13“Humanlevelcapabilityhasnotturnedouttobeaspecialstoppingpointfromanengineeringperspective....”
Source:IllahRezaNourbakhsh,ProfessorofRobotics,CarnegieMellon,
RobotFutures
AlphaGoBeatsGoGrandmaster
“Thistechnologyisgoingtocutthroughtheglobaleconomylikeahotknifethroughbutter.
Itlearnsfastandlargelyonitsown.
It'swidelyapplicable.
Itdoesn'tonlymasterwhatithasseen,itcaninnovate.
Forexample:someoftheunheardof
movesmadebyAlphaGowereconsidered‘beautiful’bytheGrandmasteritbeat.
“LimitedAGI/ArtificialGeneralIntelligence
(deeplearninginparticular)
willhavetheabilitytodonearlyanyjobcurrentlybeingdone
byhumanbeings—fromlawyerstojudges,nursestodoctors,drivingtoconstruction—potentiallyatagrandmaster'slevelofcapability.
Thismakesitabuzzsaw.
“Veryfewpeople—andImeanveryfew—willbeabletostayaheadofthelimitedAGIbuzzsaw.
Itlearnssoquickly,thefateof
peoplestrandedinformerfactorytownsguttedby‘freetrade’islikelytobethefateofthehighestpaidtechnorati.
Theysimplydon'thavethecapacityto
learnfastenough
orbecreativeenoughtostayaheadofit.”
—JohnRobb/GlobalGuerrillas/03/12/16
IoT/InternetofThingsIoE/TheInternetofEverything
M2M/Machine-to-MachineUbiquitouscomputingEmbeddedcomputingPervasivecomputingIndustrialInternetEtc.**********
*Estimated212BILLIONconnecteddevicesby2020—IDC**EstimatedIoTmarketsize,nextdecade:$14.4trillion
***“By2025IoTcouldbeapplicableto$82trillionofoutputorapproximatelyonehalftheglobaleconomy”—GE(GEisliterallybettingitsexistenceandthefutureontheIoT,Bloomberg/03.2016)****100,000,000,000,000[100trillion]sensors/2030—MichaelPatrickLynch,TheInternetofUsPrimarysource:“TheBigSwitch,”CapitalInsightsSensorPills:“ProteusDigitalHealthisoneofseveralpioneersinsensor-basedhealthtechnology.Theymakeasiliconchipthesizeofagrainofsandthatisembeddedintoasafelydigestedpillthatisswallowed.Whenthechipmixeswithstomachacids,theprocessorispoweredbythebody’selectricityandtransmitsdatatoapatchwornontheskin.Thatpatch,inturn,transmitsdataviaBluetoothtoamobileapp,whichthentransmitsthedatatoacentraldatabasewhereahealthtechniciancanverifyifapatienthastakenherorhismedications.
—RobertScobleandShelIsrael,AgeofContext:Mobile,Sensors,DataandtheFutureofPrivacyChina/Foxconn:
1,000,000
robots/next3yearsSource:RaceAGAINSTtheMachine,ErikBrynjolfssonandAndrewMcAfee“Since1996,manufacturingemploymentinChinaitselfhasactually
fallen
byanestimated
25percent.That’sover
30,000,000
fewer
Chineseworkersinthatsector,evenwhileoutputsoaredby70percent.
It’snotthatAmericanworkersarebeingreplacedbyChineseworkers.It’sthatbothAmericanandChineseworkersarebeingmademoreefficient[replaced]byautomation.”—ErikBrynjolfssonandAndrewMcAfee,TheSecondMachineAge:Work,Progress,andProsperityinaTimeofBrilliantTechnologies20/5
WelcometotheAgeofSocialMedia:
“Ittakes20
yearsto
buildareputationand5minutestoruinit.
Also,theInternetandtechnologyhavemadecustomersmoredemanding.,andtheyexpectinformation,answers,products,responses,andresolutionssoonerthanASAP.”
—JohnDiJulius,TheCustomerServiceRevolution“Whatusedtobe“wordofmouth”isnow“wordofmouse.”Youareeithercreatingbrandambassadorsorbrandterroristsdoingbrandassassination.”—JohnDiJulius,TheCustomerServiceRevolution:OverthrowConventionalBusiness,InspireEmployees,andChangetheWorldWelcometotheAgeofSocialMedia:
“Thecustomerisincompletecontrolofcommunication.”—JohnDiJulius,TheCustomerServiceRevolution:OverthrowConventionalBusiness,InspireEmployees,andChangetheWorld“We’removingtowardanageofnearlyperfectinformation.Reviewsites,shoppingappsonsmartphones,anextendednetworkofacquaintancesavailablethroughsocialmedia,andunprecedentedaccesstoexpertsmeanthatconsumersoperateinaradicallydifferent,sociallyinteractiveinformationenvironment.*…Consumerstendtomakebetterdecisionsandbecomelesssusceptibletocontextorframingmanipulations.Forbusinesses,itmeansmarketingischangingforever.”
—ItamarSimonsonandEmanuelRosen,AbsoluteValue:WhatReallyInfluencesCustomersinthe
Ageof(Nearly)PerfectInformation
*Google:
ZMOT/84
(ZEROMomentOfTruth)“IwouldratherengageinaTwitterconversationwithasinglecustomerthanseeourcompanyattempttoattracttheattentionofmillionsinacovetedSuperBowlcommercial.
Why?Becausehavingpeoplediscussyourbranddirectlywithyou,actuallyconnectingone-to-one,isfarmorevaluable—nottomentionfarcheaper!.…“Consumerswanttodiscusswhattheylike,thecompaniestheysupport,andtheorganizationsandleaderstheyresent.Theywantacommunity.Theywanttobeheard.“[I]fweengageemployees,customers,andprospectivecustomersinmeaningfuldialogueabouttheirlives,challenges,interests,andconcerns,wecanbuildacommunityoftrust,loyalty,and—possiblyovertime—helpthembecomeadvocatesandchampionsforthebrand.”—PeterAceto,CEO,
Tangerine
(fromtheForewordtoAWorldGoneSocial:HowCompaniesMustAdapttoSurvive,byTedCoine&MarkBabbit)
Going“Social”:Location/SizeIndependentRiverPoolsandSpas/$5M/WarsawVA“Today,despitethefactthatwe’rejustalittleswimming
poolcompanyinVirginia,wehavethemosttraffickedswimming
poolwebsiteintheworld.Fiveyearsago,ifyou’daskedmeandmybusinesspartnerswhatwedo,theanswerwouldhavebeensimple,‘Webuildin-groundfiberglassswimmingpools.’Nowwesay,‘Wearethebestteachers…intheworld…onthesubjectoffiberglassswimmingpools,andwealsohappentobuildthem.’”(Mktg:$250K-$20K)—MarcusSheridan,inJayBaer,Youtility:WhySmartMarketingIsAboutHelp,NotHype
SeymourCT/MotuekaNZ/WarsawVA/FairfieldOH/FrankenmuthMIRock!
*LarryJanesky/SeymourCT/BasementSystemsInc.++
*DryBasementScience++/27patents*400dealers/6countries*Awards+++++*>$100,000,000TheMagiciansofMotueka(PLUS)!W.A.CoppinsLtd.*(CoppinsSeaAnchors/PSA/paraseaanchors)*Textiles,1898;thriveon“wickedproblems”—e.g.,U.S.NavySTLVAST(SmallToLargeVehicleAtSeaTransfer);customfabricfromW.WigginsLtd./Wellington(specialtynylon,“Dyneema,”fromDSM/Netherlands)
RetailSuperstars:Insidethe25BestIndependentStoresinAmerica
—byGeorgeWhalinJUNGLEJIM’SINTERNATIONALMARKET,FAIRFIELD,OH:
“Anadventurein‘shoppertainment,’beginsintheparkinglotandgoesonto1,600
cheesesand1,400varietiesofhotsauce—nottomention12,000winespricedfrom$8-$8,000
abottle;allthisisbroughttoyouby4,000vendors.Customersfromeverycorneroftheglobe.”BRONNER’SCHRISTMASWONDERLAND,FRANKENMUTH,MI,POP5,000:
98,000-square-foot“shop”features6,000
Christmasornaments,50,000
trims,andanythingelseyoucannamepertainingtoChristmas.…”Source:GeorgeWhalin,RetailSuperstars:Insidethe25BestIndependentStoresinAmerica“BETHEBEST.IT’STHEONLYMARKETTHAT’SNOTCROWDED.”From:RetailSuperstars:Insidethe25BestIndependentStoresinAmerica,GeorgeWhalinHiddenChampions*ofthe21stCentury:SuccessSecretsofUnknownWorldMarketLeaders/
HermannSimon(*1,2,or3inworldmarket;<$4B;lowpublicawareness)Baader(Iceland/80%
fish-processingsystems)Gallagher(NZ/electricfences)W.E.T.(heatedcarseattech)Gerriets(theatercurtainsandstageequipment)Electro-Nite(sensorsforthesteelindustry)EsselPropack(India/toothpastetubes)SGS(productauditingandcertification)DELO(specialtyadhesives)Amorim(Portugal/corkproducts)EOS(lasersintering)Beluga(heavy-liftshipping)Omicron(tunnel-gridmicroscopy)Universo(wristwatchhands)DicksonConstant(technicaltextiles)O.C.Tanner(employeerecognition/$400M)Hoeganaes(powdermetallurgysupplies)MichaelRaynorandMumtazAhmed:THETHREERULES:HowExceptionalCompaniesThink*:1.Betterbeforecheaper.2.Revenuebeforecost.3.Therearenootherrules.(*Fromadatabaseofover25,000companiesfromhundredsofindustriescovering45years,theyuncovered344companiesthatqualifiedasstatistically“exceptional.”)JeffColvin,Fortune:“TheEconomyIsScary…ButSmartCompaniesCanDominate”:TheymanageforVALUE—notforEPS.TheygetRADICALLYCUSTOMER-CENTRIC.THEYKEEPDEVELOPINGHUMANCAPITAL.“‘Commodity’isastateofmind.ANYTHINGcanbeDRAMATICALLYdifferentiated.”BoBurlingham,
SmallGiants:CompaniesThatChoosetoBeGreatInsteadofBig)UPS
to
UPS
“Rolls-RoycenowearnsMORE
fromtaskssuchasmanagingclients’overallprocurementstrategiesandmaintainingaerospaceenginesitsellsthanitdoesfrommakingthem.”—EconomistUPS
to
UPS“BigBrown’sNewBag:UPSAimstoBetheTrafficManagerforCorporateAmerica”
—Headline/BW
“UPSwantstotakeoverthesweetspotintheendlessloopofgoods,informationandcapitalthatallthepackages
[itmoves]represent.”
—
“It’sallaboutSOLUTIONS.Wetalkwithcustomersabouthow
torunbetter,stronger,cheapersupplychains.Wehave1,000engineerswhoworkwithcustomers…”
—BobStoffel,UPSseniorexecUPS=
UnitedProblemSolvers*
*Servicemark
“THEGIANTSTALKINGBIGOIL:HowSchlumberger
IsRewritingtheRulesoftheEnergyGame.”:
“IPM[INTEGRATEDPROJECTMANAGEMENT]straysfrom[Schlumberger’s]traditionalroleasaserviceproviderandmovesdeeperintoareasoncedominatedbythemajors.”—BusinessWeek
I.LANInstallationCo.(3%localmarketshare)
II.GEEKSQUAD.(30%localmarketsharewithnamechange.)
III.AcquiredbyBestBuy.
IV.FLAGSHIPOFBESTBUY’s
WHOLESALE“SOLUTIONS”
STRATEGYMAKEOVER.
WhatareyouINCREDIBLYGOODat?(Andwhatareyouordinaryat?BEBRUTAL.)Whatareyou“BESTINTHEWORLD”at?(The“RiverPoolsandSpasRule”)3.Isyourservicespackage“WILDLYIMAGINATIVE”?(AndgrowingconstantlyviaTGRs,etc.?)4.Whatshareofprofitcomesfromwhatshareofcustomers?(The“>100%+RULE”)(The“TomSturgessRule”)(Prune???)Whatisyourcustomer/vendorvisitationschedule(The“LouGerstner/1-yearrule”)6.Isyourstaff“INSANELYWELLTRAINED”?
18Seconds
“Thedoctorinterruptsafter…**Source:JeromeGroopman,HowDoctorsThink18…
18…seconds!
SuggestedCoreValue#1:
“WeareEffectiveListeners—wetreatListeningEXCELLENCE
astheCenterpieceofourCommitmenttoRespectandEngagementandProfitabilityandGrowth.”“PEOPLEBEFORESTRATEGY”
“PEOPLEBEFORESTRATEGY”—Leadarticle,HarvardBusinessReview.July-August2015,byRamCharan,DominicBarton,andDennisCarey“Youhavetotreatyouremployeeslikecustomers.”
—HerbKelleher,uponbeingaskedhis“secrettosuccess”
Source:JoeNocera,NYT,“PartingWordsofanAirlinePioneer,”ontheoccasionofHerbKelleher’sretirementafter37yearsatSouthwestAirlines(SWA’spilotsuniontookoutafulladinUSAToday
thankingHKforallhehaddone);acrossthewayinDallas,AmericanAirlines’pilotswerepicketing
AA’sAnnualMeeting)1996-2014/Twelvecompanieshavebeenamongthe
“100besttoworkfor”intheUSAeveryyear,forall16yearsofthelist’sexistence;alongtheway,they’veadded/
341,567newjobs,orjobgrowthof+172%:
Publix
WholeFoods
Wegmans
Nordstrom
CiscoSystems
Marriott
REI
GoldmanSachs
FourSeasons
SASInstitute
W.L.Gore
TDIndustries
Source:Fortune/“The100BestCompaniestoWorkFor”/0315.15
“Shyp,acompanythatpicksup,packages,andshipsitemsforitsusers,madeasimilartransitiontohiringemployeesforsomerolesinJuly.Inablogpost,ShypCEOKevinGibbonexplainedthatthechangewas"aninvestmentinalonger-termrelationshipwithourcouriers,whichwebelievewillultimatelycreatethebestexperienceforourcustomers."
–SarahKessler,FastCompany,0329.16,
“WhyANewGenerationOfOn-DemandBusinessesRejectedTheUberModel”
(“Theideathatan‘UberforX’modelcouldfitanyserviceprovedarrogant,especiallyforcustomer-servicefocusedstartups.”)Training=Investment
#1!
(The“6/2/3Rule”/Askthegeneral&boomercaptain.)
THEFOURMOSTIMPORTANTWORDSINANYORGANIZATIONARE…
“WHATDOYOUTHINK?”
Source:courtesyDaveWheeler,postedat“Employeeswhodon'tfeelsignificantrarelymakesignificantcontributions.”
—MarkSanbornCEODougConant
sent30,000
handwritten‘Thankyou’notestoemployeesduringthe10years[approx10/day]heranCampbellSoup.
Source:BloombergBusinessWeek
“Itmaysoundradical,unconventional,andborderingonbeingacrazybusinessidea.However—asridiculousasitsounds—joyisthecorebeliefofourworkplace.Joyisthereasonmycompany,MenloInnovations,acustomersoftwaredesignanddevelopmentfirminAnnArbor,exists.Itdefineswhatwedoandhowwedoit.Itisthesinglesharedbeliefofourentireteam.”
—RichardSheridan,Joy,Inc.:HowWeBuiltaWorkplacePeopleLove…………..…TGR>TGW
Customersdescribingtheirserviceexperienceas“superior”:8%Companiesdescribingtheserviceexperiencetheyprovideas“superior”:80%—Source:Bain&Companysurveyof362companies,reportedinJohnDiJulius,What'stheSecrettoProvidingaWorld-classCustomerExperience?
“MayIcleanyourglasses,sir?”Get’EmAwayFromtheATMandIntotheBranches:
7X.
7:30A-8:00P.Fri/12A.
7:30AM=7:15AM.
8:00PM=8:15PM.
(+2,000,000dogbiscuits)
Source:VernonHill,Fans,NotCustomers(thestoryofCommerceBank,
thefolkswhorevolutionizedEastCoastretailbanking)
“Courtesiesofasmallandtrivialcharacter
aretheoneswhichstrikedeepestinthegratefulandappreciatingheart.”
—HenryClay
TGRs(onsteroids):
L(Very)BTs
Bigcarts=
1.5XSource:WalmartLasVegasCasino/2X:
“WhenFriedman
slightlycurved
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