Tom Peters’ RE-IMAGINE. EXCELLENCE. INNOVATE. NOW. OR PERISH . 2014 PAI Market Partner Conference

1. Tom Peters’ RE-IMAGINE. EXCELLENCE. INNOVATE. NOW. OR PERISH. 2014 PAI Market Partner Conference 05 December/Punta Cana (slides at tompeters.com; also see excellencenow.com)

2. Meet Your Next Surgeon: Dr. Robot

3. “Meet Your Next Surgeon: Dr. Robot” Source: Feature/Fortune/15 JAN 2013/on Intuitive Surgical’s da Vinci/multiple bypass heart-surgery robot (“Almost all health care people get is going to be done by algorithms within a decade or two.”—Michael Vassar/MetaMed)

4. “The combination of new market rules and new technology was turning the stock market into, in effect,awarof robots.”—Michael Lewis, “Goldman’s Geek Tragedy,” Vanity Fair, 09.13

5. “Automation has become so sophisticated that on a typical passenger flight, a human pilot holds the controls for a grand total of … 3 minutes.Pilots have become, it’s not much of an exaggeration to say, computer operators [c.f., AF447!].” —Nicholas Carr, The Atlantic, 11.13

6. Let’s Welcome Our Newest [Official] Board Member:“Just like other members of the board, the algorithm[VITAL] gets to vote on whether the firm makes an investment in a specific company or not. The program is the sixth member of DKV's board.” —Business Insider, 13 May 2014: “A Hong Kong VC fund has just appointed an algorithm to its board.”

7. “The next frontier is a wireless technology called v2x, which companies in America, Europe and Japan are developing. It encapsulates vehicle-to-vehicle and vehicle-to-infrastructure communications. Special modems allow v2x-equipped cars to talk to each other and to the world around them.” —Mary Barra, CEO, GM, in the Economist, December 2014

8. SENSOR PILLS:“Proteus Digital Health is one of several pioneers in sensor-based health technology. They make a silicon chip the size of a grain of sand that is embedded into a safely digested pill that is swallowed. When the chip mixes with stomach acids, the processor is powered by the body’s electricity and transmits data to a patch worn on the skin. That patch, in turn, transmits data via Bluetooth to a mobile app, which then transmits the data to a central database where a health technician can verify if a patient has taken her or his medications. “This is a bigger deal than it may seem. In 2012, it was estimated that people not taking their prescribed medications cost $258 billion in emergency room visits, hospitalization, and doctor visits. An average of 130,000 Americans die each year because they don’t follow their prescription regimens closely enough..” [The FDA approved placebo testing in April 2012; sensor pills are ticketed to come to market in 2015 or 2016.] Source: Robert Scoble and Shel Israel, Age of Context: Mobile, Sensors, Data and the Future of Privacy

9. Walmart SV =1,500

10. “What’s really interesting is that over the NEXTFIVEYEARS we’re going to see every industry exposed to reinvention of how people put products and services together, how work is done, what kind of jobs and skills are needed, what can be handled by technology.” —John Sculley

11. “Software is eating the world.” —Marc Andreessen

12. -1/+1/2

13. S&P 500 -1/+1* *Every …2weeks! Source: Richard Foster (via Rita McGrath/HBR/12.26.13

14. Enter the Mittelstanders: Middle-sized Niche/Micro-niche Dominators!

15. THE RED CARPET STORE (Joel Resnick/Flemington NJ)

16. *Basement Systems Inc. (Larry Janesky/Seymour CT)*Dry Basement Science (100,000++ copies!)*1990: $0; 2003: $13M; 2010:$80,000,000

17. The Magicians of Motueka & the Mittelstand Trifecta W.A. Coppins Ltd.* (Coppins Sea Anchors/ PSA/para sea anchors) *Textiles, 1898; thrive on “wicked problems” —e.g., U.S. Navy STLVAST (Small To Large Vehicle At Sea Transfer); custom fabric from W. Wiggins Ltd./Wellington (specialty nylon, “Dyneema,” from DSM/Netherlands)

18. JUNGLE JIM’S INTERNATIONAL MARKET, FAIRFIELD, OH: “An adventure in ‘shoppertainment,’ begins in the parking lot and goes on to 1,600 cheeses and 1,400varieties of hot sauce—not to mention 12,000 wines priced from $8-$8,000 a bottle; all this is brought to you by 4,000 vendors. Customers from every corner of the globe.” BRONNER’S CHRISTMAS WONDERLAND, FRANKENMUTH, MI 98,000-square-foot “shop” features 6,000 Christmas ornaments, 50,000trims, and anything else you can name pertaining to Christmas. …” From: Retail Superstars: Inside the 25 Best Independent Stores in America, George Whalin

19. “BE THE BEST. IT’S THE ONLY MARKET THAT’S NOT CROWDED.” From: Retail Superstars: Inside the 25 Best Independent Stores in America, George Whalin

20. Going “Social”: Location and Size Independent “Today, despite the fact that we’re just a little swimmingpool company in Virginia, we have the most trafficked swimming pool website in the world. Five years ago, if you’d asked me and my business partners what we do, the answer would have been simple, ‘We build in-ground fiberglass swimming pools.’ Now we say,‘We are the best teachers … in the world … on the subject of fiberglass swimming pools, and we also happen to build them.’” —Jay Baer, Youtility: Why Smart Marketing Is About Help, Not Hype

21. Michael Raynor and Mumtaz Ahmed’: THE THREE RULES: How Exceptional Companies Think*: 1. Better before cheaper. 2. Revenue before cost. 3. There are no other rules. (*From a database of over 25,000 companies from hundreds of industries covering 45 years, the authors uncovered 344 companies that qualified as statistically “exceptional.”)

22. Innovate or Perish/ Extreme Times DEMANDExtreme Solutions

23. “Insanely great”(Steve Jobs)“Radically thrilling”(BMW)“Astonish me!”(Sergei Diaghilev, to a lead dancer)“Build something great!”(Hiroshi Yamauchi, CEO, Nintendo, to a senior game designer)“Make it immortal!” (David Ogilvy, to a copywriter).

24. “You can’t behave in a calm, rational manner. You’ve got to be out there on the lunaticfringe.”— Jack Welch

25. 1/48

26. 1/48/1966-2014 WTTMSW

27. WHOEVER TRIES THE MOST STUFF WINS

28. In Search of Excellence: Bedrock “Eight Basics” 1. A Bias for Action 2. Close to the Customer 3. Autonomy and Entrepreneurship 4. Productivity Through People 5. Hands On, Value-Driven 6. Stick to the Knitting 7. Simple Form, Lean Staff 8. Simultaneous Loose-Tight Properties

29. READY.FIRE!AIM.—H. Ross Perot (vs “Aim! Aim! Aim!” /EDS vs GM/1985)

30. “We made mistakes, of course. Most of them were omissions we didn’t think of when we initially wrote the software. We fixed them by doing it over and over, again and again. We do the same today. While our competitors are still sucking their thumbs trying to make the design perfect, we’re already on prototype version#5.By the time our rivals are ready with wires and screws, we are on version #10.It gets back to planning versus acting: We act from day one; others plan how to plan —for months.” —Bloomberg by Bloomberg

31. “EXPERIMENT FEARLESSLY”—BusinessWeek, “Type A Organization Strategies: How to Hit a Moving Target”—Tactic #1“RELENTLESS TRIAL AND ERROR” Source: Wall Street Journal, “cornerstone” of effective approach to “rebalancing” company portfolios in the face of changing and uncertain global economic conditions

32. “You can’t be a serious innovator unless and until you are ready, willing and able to seriously play.‘Serious play’is not an oxymoron; it is the essence of innovation.”—Michael Schrage,Serious Play

33. FAIL. FORWARD. FAST.

34. “FAIL. FORWARD. FAST.”—High Tech CEO, Pennsylvania“FAIL FASTER. SUCCEED SOONER.”—David Kelley/IDEO“MOVE FAST. BREAK THINGS.”—Facebook

35. “REWARDexcellent failures. PUNISHmediocre successes.”—Phil Daniels, Sydney exec

36. “In business, youREWARDpeople for taking RISKS.WHEN IT DOESN’T WORK OUT YOU PROMOTE THEM -BECAUSE THEY WERE WILLING TO TRY NEW THINGS. If people tell me they skied all day and never fell down, I tell them to try a different mountain.”—Michael Bloomberg

37. WTTMSASTMSUW

38. WHOEVER TRIES THE MOST STUFF AND SCREWS THE MOST STUFF UP WINS

39. Tempo/ Temperament

40. “If things seem under control, you’re just not going fast enough.” —Mario Andretti, race driver “I’m not comfortable unless I’m uncomfortable.” —Jay Chiat “If it works, it’s obsolete.” —Marshall McLuhan

41. “At the heart of Boyd’s thinking is an idea labeled ‘OODA Loops.’ OODA stands for the Observe-Orient-Decide-Act cycle. In short, the player with the quickest OODA Loops disorients the enemy to an extreme degree. In the world of aerial combat, for example, the confused adversary subjected to an opponent with short OODA cycles often flies into the ground rather than becoming the victim of machine gun fire or a missile. Boyd is careful to distinguish between raw speed and maneuverability. In aerial dogfighting in Korea (Boyd’s incubator), Soviet MiGs flown by Chinese pilots were faster and could climb higher, but our F-86 had “faster transients”—it could change direction more quickly; hence our technically inferior craft (by conventional design standards) achieved a 10:1 kill ratio.” —Robert Coram, BOYD: The Fighter Pilot Who Changed the Art of War

42. WTTMSASTMSUTFW

43. WHOEVER TRIES THE MOST STUFF AND SCREWS THE MOST STUFF UP THE FASTEST WINS

44. WHOEVER TRIES THE MOST STUFF AND SCREWS THE MOST STUFF UP THE FASTEST WINS

45. “Ideas Economy: CAN YOUR BUSINESS FAIL FAST ENOUGH TO SUCCEED?” Source: ad for Economist Conference/0328.13/Berkeley CA (caps are Economist)

46. Value Added I: ADDING A STRATEGIC SERVICES COMPONENT

47. “Rolls-Royce now earns morefrom tasks such as managing clients’ overall procurement strategies and maintaining aerospace engines it sells than it does from making them.” —Economist

48. IBMtoIBM

49. UPStoUPS

50. Value Added II: DESIGN PRIMACY