Companies are designed to keep customers out

Companies are designed to
out!
customers
keep
VIA CHUCK COKER ON FLICKR.COM
don’t bring a knife to a gunfight
- OUR 19TH CENTURY MODEL FOR COMMUNICATION IS BREAKING UNDER
THE PRESSURE OF 21ST CENTURY CUSTOMERS, MARKETS AND SOCIETY.

CORE IDEA / GAP / CHALLENGE DISCUSSED IN THE TALK:
companies increasingly
have to accommodate and
woRk on the premise of the
customer. adding huge
strain to the current model
of management - designed
to keep customers out.

link
throughout the presentation I HAVE
ADDED LINKS. just click:
I HAVE TRIED TO DESIGN A VALUABLE RESOURCE
- WITH DIRECT LINKS TO WHERE ALL THE IDEAS
AND THOUGHTS ARE COMING FROM.

communication
is marketing
is distribution
is product
EVERYTHING IS THE INTERFACE BETWEEN
THE CUSTOMER AND THE COMPANY
PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
PART I:

“Marketing is not
a function; it is the
whole business
seen from the
customer’s point
of view.”
- PETER DRUCKER -

Marketing is not magicIF THE PRODUCT DOES EVERYTHING IT CAN TO KEEP CUSTOMERS OUT
- THEN MARKETING CAN’T FIX THAT.

This makes customer activation an
integrated part of the product
and it makes marketing and products the
same thing - because they both have to
accommodate and work on the premise of
the customer.
THE THIRD WAVE OF TECH.
WELCOME TO
WHAT TECHNOLOGY IS BRINGING NOW ISN’T JUST IMPROVEMENTS AND EFFICIENCY AROUND THE
PRODUCT - IN THE COMPANY’S INTERNAL AND EXTERNAL VALUE CHAINS - IT IS CHANGES TO THE
NATURE OF THE PRODUCTS THEMSELVES.

Before the advent of modern information technology,
products were mechanical and activities in the value
chain were performed using manual, paper processes and
verbal communication. The first wave of IT, during the
1960s and 1970s, automated individual activities in the
value chain, from order processing and bill paying to
computer-aided design and manufacturing resource
planning. (See “How Information Gives You Competitive
Advantage,” by Michael Porter and Victor Millar, HBR,
July 1985.) The productivity of activities dramatically
increased, in part because huge amounts of new data
could be captured and analyzed in each activity. This led
to the standardization of processes across companies—
and raised a dilemma for companies about how to
capture IT’s operational benefits while maintaining
distinctive strategies.
HOW SMART, CONNECTED PRODUCTS ARE
TRANSFORMING COMPETITION
The rise of the internet, with its inexpensive and
ubiquitous connectivity, unleashed the second wave of
IT-driven transformation, in the 1980s and 1990s (see
Michael Porter’s “Strategy and the Internet,” HBR,
March 2001). This enabled coordination and integration
across individual activities; with outside suppliers,
channels, and customers; and across geography. It
allowed firms, for example, to closely integrate globally
distributed supply chains.
The first two waves gave rise to huge productivity gains
and growth across the economy. While the value chain
was transformed, however, products themselves were
largely unaffected.
Now, in the third wave, IT is becoming an integral part of
the product itself. Embedded sensors, processors,
software, and connectivity in products (in effect,
computers are being put inside products), coupled with a
product cloud in which product data is stored and
analyzed and some applications are run, are driving
dramatic improvements in product functionality and
performance. Massive amounts of new product-usage
data enable many of those improvements.
I II III
link

WHAT MAKES SMART, CONNECTED PRODUCTS
FUNDAMENTALLY DIFFERENT IS NOT THE INTERNET,
BUT THE CHANGING NATURE OF THE “THINGS”.
HOW SMART, CONNECTED PRODUCTS ARE TRANSFORMING COMPETITION
link

SPEAKER NOTES: This quote went viral on LinkedIn in March 2015. It seemed to hit a nerve..
link

Tom Goodwin is senior vice president of strategy and innovation at Havas Media.
It’s by Tom Goodwin,arguing that the coming battle for the customers will on the customer interfaces. link

THESE COMPANIES REALIZE THAT THE MODERN AGE IS A TIME OF
SCARCE ATTENTION AND ABUNDANT CONNECTIVITY, WHERE
SMARTPHONES ARE OUR PRIMARY ACCESS AND POINT TO
EVERYTHING; WHERE MONEY AND EVERYTHING IS DIGITAL;
- TOM GOODWIN -
link
where the interface layer
is where the profit is;
your companies most
profound business.
WHERE PHYSICAL ASSETS AND EMPLOYEES ARE LIABILITIES;
and where providing a slick, best in
class human experience will create

“TO MANY MANAGERS, THE PRODUCT IS THE
BUSINESS,” WRITES NIRAJ DAWAR IN TILT.
“FIRMS CONTINUE TO SPEND INORDINATE
AMOUNTS OF TIME, EFFORT, AND RESOURCES
ON THEIR PRODUCTS. IN FACT, BUSINESSES
ARE STRUCTURED AROUND THEIR PRODUCTS…
BUT, THE ANSWER TO QUESTIONS LIKE ‘WHY
DO CUSTOMERS BUY FROM US?’ DON’T RESIDE
IN PRODUCTS. THEY RESIDE ALMOST ENTIRELY
IN THE INTERACTIONS THAT TAKE PLACE IN THE
MARKETPLACE.”
- STEVE DENNING -
link

EFFICIENCY
STANDARDIZATION
COMPANIES CARE ABOUT
THIS HARMONIZES POORLY WITH UNPREDICTABLE CUSTOMER BEHAVIOR
AND NON-ALIGNED PRIORITIES
&

link

THE CURRENT PRACTICE
OF MANAGEMENT IS NOT
ALIGNED TO A NEW
WORLD WHERE
CUSTOMERS SUDDENLY
BECOME AN IMPORTANT
STRATEGIC ASSET.
COMPANIES HAVE BEEN DESIGNED TO KEEP
CUSTOMERS OUT.

BRAND, DESIGN AND
ADVERTISING ARE ALL
TOOLS TO SAFELY KEEP
CUSTOMERS ON THE
OUTSIDE.
IF COMPANIES ARE TO REAP THE BENEFIT OF
DELIGHTING CUSTOMERS - THEY NEED TO RETHINK /
REDO THE WAY THEY MANAGE THEIR COMPANY and
market their products.

INDUSTRY
TO CORE
BUSINESS
THE DEMISE FROM COMPANY TO
INDUSTRY AS A CONCEPT IS A POISONED PILL
- FROM A CUSTOMER
VALUE PERSPECTIVE
Companies concentrate on optimizing their core
business. Giving away products and services that they
would logically provide from a customer perspective,
but are not optimal when applying current business
and management logic.
Companies end up ﬁghting for market share in ever
decreasing markets. Flatly excluding/ consciously
ignoring logical and lucrative extensions.
THIS IS THE CUSTOMER-JOB-TO-BE-
DONE THE COMPANY HELPS SOLVE
WHEN IT LAUNCHES

INDUSTRY
TO CORE
BUSINESS
- FROM A CUSTOMER
VALUE PERSPECTIVE
THIS IS THE JOB IT IS HELPING
CUSTOMERS SOLVE TODAY
[COMPANIES GET STUCK IN THE IDEA OF THE ORIGINAL JOB. NOT SEEING THAT AS PEOPLE ARE
PERFORMING AND SOLVING THE JOB THEY REDESIGN AND FRAGMENT IT. COMPANIES GET
STUCK ON THE MAIN DESIGN, IGNORING CONCIOUSLY THE EXTENSIONS THAT EMERGE]

INDUSTRY
TO CORE
BUSINESS
- FROM A CUSTOMER
VALUE PERSPECTIVE
THIS IS THE JOB THE COMPANY IS
SOLVING IN THE FUTURE
[EVENTUALLY THE ORIGINAL JOB MIGHT END UP AS JUST A NICHE DELIVERY. THE
CUSTOMER HAS MOVED ON TO DIFFERENT WAYS OF SOLVING THE ORIGINAL JOB]

link

“So, the simplest explanation you’ll ever hear
of why succesful organizations ultimately
fail is this:
They fail when the leaders
fail to write of their own
depreciating intellectual
capital”.
- GARY HAMEL
link

43% of ceos now include customers in business
strategy development. 60% expect to do so in
the future.
The area in which CEOS
expect to see customer
influence grow the most;
their business strategy.
- BRIDGET VAN KRALINGEN, SENIOR VICE PRESIDENT,
IBM GLOBAL BUSINESS SERVICES
link

- CHRISTIAN MADSBJERG AND MIKKEL B. RASMUSSEN,
HBR.ORG, AN ANTHROPOLOGIST WALKS INTO A BAR
link
The biggest challenge CEOs face is the so called
complexity gap.
CEOs see a lack of customer
insight as their biggest deficit
in managing complexity. ..
And rank “customer
obsession” as the most
critical leadership trait.

IBM: CEOs say customers come second only
to the c-suite in terms of the strategic
influence they wield (2013)
link

CXOS MOST RADICAL SHIFT MAY BE A NEW VIEW ON WHAT IT MEANS
TO COLLABORATE WITH CUSTOMERS.
“In the next few years we
want to build deep,
strategic relationships
with our customers,
enterprise-to-enterprise
relationships where the
‘customer is for life.’”
link

WE IDENTIFIED THREE KEY THEMES THAT WILL HELP YOU SHAPE
YOUR ORGANIZATION’S FUTURE:
•Open up to customer influence 
• Pioneer digital-physical innovation 
• Craft engaging customer experiences
link

“Customer experience …
is a fundamental dimension
of how a company competes.”
- JOSEPH PINE, COINED THE TERM EXPERIENCE ECONOMY
HBR, DISNEY, ADVANCING THE CUSTOMER EXPERIENCE
link

link
We realized that if we
didn’t build our strategy
around how customers
experience our products,
a start-up with that focus
could eventually
overtake us.”
- PHILIP GERSKOVICH, SENIOR VICE PRESIDENT, ZEBRA TECHNOLOGIES
“Too many companies see customer experience
as a slogan exercise.

Ed Thompson, an analyst at market research ﬁrm Gartner, says:
“Between 5% and 10% of companies truly have a customer culture at
their core, but the rest have been forced to care because all other
means of differentiation have been eroded over time. That’s why it is
currently a hot topic and has been very high on CEO agendas for the
last three years or so.”
In many consumer sectors, it has become increasingly difficult for
organisations to really stand out from the crowd in terms of pricing,
products or services.As a result, the last great bastion of
differentiation in recent years has become that of customer
experience – and that seems unlikely to change any time soon.
“the rest have been
forced to care because
all other means of
differentiation have
been eroded over time.”
link

link
accepting customers
as active stakeholders
is one sure way to quell
the factions and unite
the C-suite in a common
purpose.

PARTI:COMPANEISAREDESIGNEDTOKEEPCUSTOMERSOUTPARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
The idea that customers benefit from engagement
with their insurance needs is part of Progressive’s
philosophy.
Encouraging the use of
products and services that
foster active involvement,
we can improve the
experience for everyone.
link

link
If one issue has the potential
to unite the C-suite to act in
concert, establishing trust-
based relationships with
customers stands at the top.

Apple, almost bankrupt in 1997 after years of 20th century managerial approach to
management was taken over by Steve Jobs. Who was a tyrant on behalf of the customers.
Spending four years cleaning up the company and throwing out employees who had no
direct impact on contributing to customer value. In 2001 Jobs had changed the company
and its culture and set it up for large scale rapid innovation - and the story of its success is
widely known.
PARTI:COMPANEISAREDESIGNEDTOKEEPCUSTOMERSOUT
link
SUCCESSFUL COMPANIES:
PARTII:SUCCESSFULCOMPANIES
PART II:

link

PUT THE MOST IMPORTANT
PEOPLE INTO TEAMS
WORKING AUTONOMOUSLY
ON THE CUSTOMERS MOST
IMPORTANT PROBLEMS.
link
successful
companies:

“AS WE CONFIRMED IN OUR “NEXT 30-YEAR VISION,” WHICH
WE CREATED IN 2010, OUR ULTIMATE GOAL IS TO ALLEVIATE
SADNESS AND INCREASE EVERYONE'S HAPPINESS TO THE GREATEST
EXTENT POSSIBLE THROUGH THE INFORMATION REVOLUTION.”
- LETTER FROM THE CEO MESSAGE -
link

but NONE OF THIS helpS
if we are not seeing
the bigger picture…
PART III:
PARTIII:THEBIGPICTURE
IMAGE BY BEN LANSKY ON FLICKR.COM

link

“The problems that we can solve as a species,
is fundamentally limited by out capacity to
manage. to bring people together, to
coordinate, to accomplish things at scale. -
And I’m arguing today that this technology
has to be reinvented, root and branch, it is a
problem that is so urgent, so complex and
so eminently worthwhile. That none of us
who have a stake in the future of humanity
should be sitting at the sidelines.”
- GARY HAMEL
link

THE REASON
CUSTOMERS
DON’T CARE
IS BECAUSE
COMPANIES
DON’T CARE

customer
experience
2004
WEBSITE
2011
MOBILE FIRST
2015
information
architecture
User
experience
Analytics
CloudIOT
Mobile
Collab.
tech
2017
outcome
economy
MANAGEMENT
CROSS-CHANNEL OMNI+DELIVERY+PRODUCT
ACTIVE COLLABORATION
PARTNERING WITH THE CUSTOMER EVERY DAY
TO GET THE BEST POSSIBLE OUTCOME FOR THEIR JOB-2-B-D1
PASSIVE OFFER
SALES & ZERO MOMENTS OF TRUTH
CHANNEL
2004-2017 FROM INCREMENTAL 2 LOGARITHMIC CHANGE

THANK YOU
FOR MORE RESOURCES AND IDEAS ON THIS SUBJECT
JOIN MY KNOWLEDGE NETWORK ON LINKEDIN
https://no.linkedin.com/in/helgetenno
HELGE
TENNØ
JOKULL OR VISIT HELGETENNO.COM

Companies are designed to keep customers out

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