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ERY LECTURE, EVERY QUIZ, ALL ONLINE, FOR FREE. MEET THE GLOBAL GEEKS GETTING AN MIT EDUCATION, OPEN SOURCESTYLE.” —Headline/Wired/ ―Dawn Meyerreicks, CTO of the Defense Information Systems Agency, made one of the most fateful military calls of the 21st century. After 9/11 … her office quickly leased all the available transponders covering Central Asia. The implications should change everything about . military thinking in the years ahead. ―The . Air Force had kicked off its fight against the Taliban with an ineffective bombing campaign, and Washington was anguishing over whether to send in a few Army divisions. Donald Rumsfeld told Gen. Tommy Franks to give the initiative to 250 Special Forces already on the ground. They used satellite phones, Predator surveillance drones, and GPS and laserbased targeting systems to make the air strikes brutally effective. “In effect, they ?Napsterized? the battlefield by cutting out the middlemen (much of the military?s mand and control) and working directly with the real players. … The data came in so fast that HQ revised operating procedures to allow intelligence analysts and attack planners to work directly together. Their favorite tool, incidentally, was instant messaging over a secure work.‖—Ned Desmond/―Broadband‘s New Killer App‖/Business OCT2021 ―The mechanical speed of bat vehicles has not increased since Rommel‘s day, so the difference is all in the operational speed, faster munications and faster decisions.‖ —Edward Luttwak, on the unprecedented pace of the move toward Baghdad epiphany ―flash mobs‖ (!) “Ebusiness is about rebuilding the anization from the ground up. Most panies today are not built to exploit the Inter. Their business processes, their approvals, their hierarchies, the number of people they employ … all of that is wrong for running an ebusiness.‖ Ray Lane, Kleiner Perkins Case: CRM Amen! ―The Age of the Never Satisfied Customer” Regis McKenna “CRM has, almost universally, failed to live up to expectations.” Butler Group (UK) No! No! No! FT: ―The aim [of CRM] is to make customers feel as they did in the preelectronic age when service was more personal.‖ CGEamp。Y (Paul Cole): ―Pleasant Transaction‖ vs. “Systemic Opportunity.” ―Better job of what we do today‖ vs. “Rethink overall enterprise strategy.” Here We Go Again: Except It?s Real This Time! Bank online: ()。 2X Y2021. Wells Fargo: 1/3rd。 。 50% lower attrition rate。 50% higher growth in balances than offline。 more likely to crosspurchase。 ―happier and stay with the bank much longer.‖ Source: The Wall Street Journal/ IS/IT strategy! 5% F500 have CIO on Board: ―While some of the world‘s most admired panies—Tesco, Wal*Mart—are transforming the business landscape by including technology experts on their boards, the vast majority are missing out on ways to boost productivity, petitiveness and shareholder value.‖ Source: BursonMarsteller 4. The White Collar Revolution. Steel: 75,000,000 tons in ‘82 to 102,000,000 tons in ‘02. 289,000 steelworkers in ‘82 to 74,000 steelworkers in ‘02. Source: Fortune/ . … Jeff Immelt: 75% of ―admin, back room, finance‖ ―digitalized‖ in years. Source: BW () ―A bureaucrat is an expensive microchip.‖ Dan Sullivan, consultant and executive coach Deep Blue Redux*: 2,240 EKGs … 1,120 heart attacks. Hans Ohlin (50 yr old chief of coronary care, Univ of Lund/SW) : 620. Lars Edenbrandt‘s software: 738. *Only this time it matters! ―Organizations will still be critically important in the world, but as ?anizers,‘ not ?employers‘!‖ — Charles Handy “Don?t own nothin? if you can help it. If you can, rent your shoes.” . ―Pamp。G Hires Out Employee Services to IBM‖ —Burlington Free Press/on IBM‘s 10year, $400M contract with Pamp。G (Pamp。G farmed out IT to HP in May, Facilities to Jones Lang LaSalle in June) Ford: ―Vehicle brand owner‖ (―design, engineer, and market, but not actually make‖) Source: The Company, John Micklethwait amp。 Adrian Wooldridge III. NEW BUSINESS. NEW VALUE PROPOSITION. 5. The ―PSF Solution‖: The Professional Service Firm Model. Sarah: “ Daddy, what do you do?” Daddy: “I?m a ?cost center.? ” So what will be the Basic Building Block of the New Org? Every job done in . is also done “outside” …for profit! Answer: PSF! [Professional Service Firm] Department Head to … Managing Partner, HR [IS, etc.] Inc. TP to HRMAC: You are the … Rock Stars of the Age of Talent! DD$21M Dept. Head I = Sports . Dept. Head II = . eHR*/PCC** *All HR on the Web **Productivity Consulting Center Source: EHR: A Walk through a 21st Century HR Department, John Sullivan, IHRIM Model PSF … (1) Translate ALL departmental activities into discrete . “Products.” (2) 100% go on the Web. (3) Nonawesome are outsourced (75%??). (4) Remaining “Centers of Excellence” are retained amp。 leveraged to the hilt! ―Typically in a mortgage pany or financial services pany, ?risk management‘ is an overhead, not a revenue center. We‘ve bee more than that. We pay for ourselves, and we actually make money for the pany.”—Frank Eichorn, Director of Credit Risk Data Management Group, Wells Fargo Home Mortgage (Source: ) 6. The Heart of the Value Added Revolution: PSFs Unbound/ The ―Solutions Imperative.‖ Base Case: The Sameness Trap ―While everything may be better, it is also increasingly the same.” Paul Goldberger on retail, ―The Sameness of Things,‖ The New York Times ―Customers will try ?low cost providers‘ … because the Majors have no