Once-in-a-Lifetime.ppt

worked Marketplace Joe Alwan Western Region Director Business Models peting on the World Wide Web Few Innovations Cause Once-in-a-Lifetime Business Change “ The impact of the rail network was like nothing the United States had ever seen before or indeed has seen since. ”– Richard S. Tedlow , from The Coming of Managerial Capitalism, A Casebook on the History of American Economic Institutions , 1985. 1 Railroads changed everything! Before After ? Transportation depends on weather and location of navigable waterways ? Dispersed work force (92% of population in 1830 is rural) ? 8,000 . time zones ? Vacation (if at all) near home ? Transport ton of goods for 5-15 cents/mile (wagon or steamboat in 1825) ? Transportation depends on ability to lay rails ? Concentrated work force (50% of population in 1920 is urban) ? Travel between New York and Boston in four days ? Four . time zones ? Vacation away from home ? Transport ton of goods for 1 cent/mile (by rail in 1884) ? Travel between New York and Boston in less than one day Business Impact Transforms Customer Relationships Transforms Customer Relationships Supplier-Centered Buyer-Centered Buyer hours Buyer location Self-serve Buyer needs focus One of one Supplier hours Supplier location Supplier serves Supply chain focus One of many Displaces the Source of Value Displaces the Source of Value Atoms Electrons Physical value Economies of scale Mass produced Information value Local Digital value Economies of scope Mass customized Knowledge value Global The Channel Master Transparent access Personalized service Leveraged pany Customer or Supplier 7 Disney Online 1.) Can I realize new efficiencies by giving customers direct access to my systems? 2.) Will the customer ’ s experience be enhanced through personalizing this interaction? 3.) Can I leverage the collective knowledge of employees and customers in my channel? 4.) Will I have a significant disadvantage if competitors build these