Benchmark Scotland Glasgow 25 May 2000

1. Benchmark ScotlandGlasgow25 May 2000

2. 1 Year = 1.5 Wal*Marts03.27.99: $167B03.27.00: $555BP.S.: Wal*Mart = #8 in 2000

3. Pentium III 800MHz: $42,893.00/#Hermes Scarf: $1,964.29Saving Private Ryan on DVD: $874.75Mercedes-Benz: $18.98Hot-rolled steel: $0.19Source: Fortune (3.20.00)

4. “Researchers say they have found a way to mate human cells with circuitry in a ‘bionic chip’ … The tiny device – smaller and thinner than a strand of hair – combines a healthy human cell with an electronic circuitry chip.”AP/AOL/02-00

5. No Wiggle Room!“Incrementalism is innovation’s worst enemy.” Nicholas Negroponte

6. Just Say No …“I don’t intend to be known as the ‘King of the Tinkerers.’ ”CEO, large financial services company (New York, 5-99)

7. 64/24

8. Goal?

9. Welcome to the Land of the True Believers!“We have the ability to turn the economy upside down, to enhance lives, and to drive civilization forward.”Michael Saylor,MicroStrategy

10. “It means nothing less than the total reinvention of this company.”

11. Jacques’ New New FordFord + MSN CarPointFord + Yahoo!Ford + OracleFord + HP/MCIWorldcomEtc.Etc.

12. “There is probably going to be more confusion in the business world in the next decade than there has been in any decade in history.”Steve Case (2-00)

13. “We are in abrawl with no rules.”Paul Allaire

14. S.A.V.

15. T.T.D./True or False:“incrementalism”VERSUS“innovation”?

16. Notes Page • This is a daunting issue. There is no “right answer.” But it merits constant, conscious debate. Consider the value of incremental change. [Kaizen, etc.] And discuss whether or not this thwarts “BIG” initiatives aimed at wholesale reinvention. • Also: Consider … “Can we do both?” [I’m not sure.] P.S.: This crucial issue holds for Finance Departments as much as Product Divisions. And it holds for the smallest and newest of businesses! THIS DEBATE IS WORTH LOTS OF TIME! KEEP IT PRACTICAL!

17. Seminar Y2KBrand Everything:Distinct or Extinct!

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

19. “When asked to name just one big merger that had lived up to expectations, Leon Cooperman, former cochairman of Goldman Sachs’ Investment Policy Committee, answered: ‘I’m sure there are success stories out there, but at this moment I draw a blank.’ ”Mark Sirower, The Synergy Trap

20. “Talent” and a $2Tenterprise??????

21. “Acquisitions are about buying market share. Our challenge is to create markets. There is a big difference.” Peter Job, CEO, Reuters

22. “Our ideal acquisition is a small startup that has a great technology product on the drawing board that is going to come out in six to twelve months. We buy the engineers and the next generation product. …” John Chambers, Cisco

23. Valley Exec on Cisco Strategy:“Maybe you overpay for a company, but it’s the pick of the litter and you haven’t frittered away boatloads on R&D”**See also Fast Company on “ ‘Built to flip’ vs. ‘Built to last’ ”

24. “R & D”Intel’s venture fund: 275 investments, $8BSource: Fast Company , eCompany

25. Net World!Act now. Analyze later.Avram Miller

26. C.E.O. to C.D.O.

27. The Gales of Creative Destruction+29M = -44M + 73M+4M = +4M - 0M

28. Paradox ReduxAtlanta: +113,600 = #1 metro areaLayoffs [major]: BellSouth, Lockheed, Coca-Cola

29. Brand InsideBrand Org!

30. 108 X 5vs. 8 X 1** 540 vs. 8

31. And Now the Equivalent …White Collar Revolution!

32. ERP, ASP, ECM, Web, Etc.IT’S THE GIANT SUCKING SOUND OF SLACK BEING EXTRACTED FROM THE GLOBAL ECONOMY!

33. Cemex and FDX!

34. The Pincer 5“Destructive” entrepreneurs/ Global Competition“White Collar Robots”THE INTERNET![E.g.: GM + Ford + DaimlerChrysler]Global Outsourcing[E.g.: India, Mexico]Speed!!

35. “AssetlessCompany”J.B.

36. RR on Sara Lee“The most profitable businesses in the future will act as knowledge brokers, linking insights into what’s available with insights into the customer’s individual needs and preferences.”

37. The “&-!!+#$% in the middle”*Jim Clark on Healtheon/WebMD* ’twixt docs, patients, insurers and providers; $275B of $400B in waste; source: Michael Lewis,The New New Thing

38. [ Incidentally …CEO Jeff ArnoldAge: 30First Start-up: Age 24]

39. SoftWatch (MS)“Manage relationships across the healthcare continuum”/ Amir KishonEstablish e-relationships with customers/retain customers/collect dataPatients record info + receive feedback/ online access to nursesCommunity with others with MSEtc.Source: Start-Up

40. “We want to be the air traffic controllers of electrons.”Bob Nardelli, GE Power Systems

41. 12/31/00 (per Newsweek 04.24.00)75% of U.S. universities will have on-line offerings/ 5.8 million students“Unbundling” profs’ jobs (star lecturer, facilitator)/ Repackage “content” as multi-media “event”AAUP is angry! (Good news!)355 studies: Equal results! (and one teachers union study that disagrees!)

42. Election.com**Arizona Democratic primary, etc.

43. Buzzsaw.comBuilders, Owners, Architects, Contractors, Suppliers$4T industry5,300 commercial bldg. projects’ specs on-line; +70 per day

44. “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

45. These are …L.A.D.T.I.R.S.**Life-and-death-total-industry-reinvention-struggles

46. So … What will be the Basic Building Block of the New Org Unit?

47. Why are there no books on how to create a “Cool, Rocking, WOW-producing Finance Department”?

48. Department Headto …Managing Partner, HR [IS, etc.] Inc.

49. [NAPM Redux: Welcome to the Y2K New Orleans Jazz and Real Cool Purchasing Dudes Festival!]

50. NAPM: Not “Purchasing”!NAPM: Not “Supply Chain Mgt.”NAPM = TE/IR!**Total Enterprise/Industry Reinvention!