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Lockheed Martin ELECTRONICS PLATFORM INTEGRATION 31 January 2000. Microsoft = R.O.W. Microsoft > GM + Ford + Boeing + Lockheed Martin + Deere + Caterpillar + USX + Weyerhauser + Union Pacific + Kodak + Sears + Marriott + Safeway + Kellogg Source: Business Week data through 5-99.
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Lockheed MartinELECTRONICS PLATFORM INTEGRATION31 January 2000
Microsoft = R.O.W.Microsoft > GM + Ford + Boeing + Lockheed Martin + Deere + Caterpillar + USX + Weyerhauser + Union Pacific + Kodak + Sears + Marriott + Safeway + KelloggSource: Business Week data through 5-99
Microsoft = R.O.W. (II)Microsoft >GM + Ford + Boeing + Lockheed Martin + Deere + Caterpillar + USX + Weyerhauser + Union Pacific + Kodak + Sears + Marriott + Safeway + Kellogg + McDonald’s + Bank One + General Mills + American Airlines + United Airlines + + Delta Air Lines + US Airways + Quaker OatsSource: Yastrow Marketing (through 11-23-99)
No Wiggle Room!“Incrementalism is innovation’s worst enemy.” Nicholas Negroponte
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)
Forget > Learn“The problem is never how to get new, innovative thoughts into your mind, but how to get old ones out.” Dee Hock
“When asked to name just one big merger that had lived up to expectations, Leon Cooperman, former co-chairman 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
“Acquisitions are about buying market share. Our challenge is to create markets. There is a big difference.” — Peter Job, CEO, Reuters
“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 Systems
“R & D”Intel’s venture fund: 275 investments, $3.5BSource: Fast Company (12-99)
EcoNets/Internet Zaibatsus“The model is about partial acquisitions and ownerships that then form a whole. Each part has to have value separately, be able to raise capital separately, and motivate employees separately. Corporations of the past never had that.”Flip Filipowski, divine interVentures (Red Herring)
“The brick and mortars will die, no matter what. … So you have to take your best employees and best businesses and spin them off and just own 40 percent of everything that’s left. Do that and you survive.”Flip Filipowski, divine interVentures (Red Herring)
“It used to be that the big ate the small. Now the fast eat the slow.”Geoff Yang, IVP/ (Institutional Venture Partners)
The Gales of Creative Destruction+29M = -44M + 73M+4M = +4M - 0M
ERP, ECM, Web, Etc.IT’S THE GIANT SUCKING SOUND OF SLACK BEING EXTRACTED FROM THE GLOBAL ECONOMY!
“The coefficient of friction associated with the grunge of business is amazing!”Michael Schrage
RR on Sara Lee“The most profitable businesses in the future will act as knowledge brokers, linking insights into what’s available with insights into the customer’s individual needs and preferences.”
“We want to be the air traffic controllers of electrons.”Bob Nardelli, GE Power Systems
The “&-!!+#$% in the middle”*Jim Clark on Healtheon* ’twixt docs, patients and providers; $250B in waste; source: Michael Lewis,The New New Thing
“Don’t own nothin’ if you can help it. If you can, rent your shoes.”F.G.
R&D Outsourcing/ Big Pharma3:1+ (70% now; 5% in 5 years)1:2+ (5% now; 20% in 5 years)Source: IN VIVO
PSF 1.0Professional Service Firm Conversion Kit / Release 1.0
PSF 1.0Department Headto …Managing Partner, HR [IS, etc.] Inc.
“support function” / “cost center” / “bureaucratic drag”or …“Rock Stars of the ‘Age of Talent’ ”
“Reward excellent failures. Punish mediocre successes.”Phil Daniels, Sydney exec
But Does It Matter????“On time, on budget … who cares?”anon. seminar participant (4/99)
Liberty Ship2 years240 days9 hours4 days, 15 hours, 29 minutes
“Every project we take on starts with a question: How can we do what’s never been done before?”Stuart Hornery, CEO, Lend Lease
WOW Project “Acid Test”Can you explain it - with zest - to your 14-year-old?
“You really got to me. So many of our information technology projects take on a life of their own, and I know they’ll never end up as more than ‘mediocre successes.’ ” CEO, F100 financial services company (10-98)
The greatest dangerfor most of usis not that our aim istoo highand we miss it,but that it istoo lowand we reach it.Michelangelo
Characteristics of the “Also Rans” • “minimize risk” • “respect the chain of command” • “support the boss” • “make budget” Source: Fortune on “most admired global corporations”
DISTINCT … OR EXTINCT!“If there is nothing very special about your work, no matter how hard you apply yourself, you won’t get noticed and that increasingly means you won’t get paid much, either.” Michael Goldhaber, Wired
“If one quarter can’t make the journey, that’s the way it has to be.”Carly Fiorina (1-00/Forbes)
Personal “Brand Equity” Eval • My current Project is challenging me … • New things I’ve learned in the last 90 days include … • My public “recognition program” consists of … • I am known for … • Additions to my Rolodex include … • My resume is discernibly different from last year’s at this time …
R.D.A.Rate: 15%?, 25%?Formal “Investment Strategy”/R.I.P.