Posts Tagged ‘Strategy’

Co-opetition

September 24th

There is a great deal written about alliances among competitors in the increasingly complicated marketplace of the post Internet world. The mailing and delivery industry is no exception.

In fact this summer a former Senior Vice President with the Postal Service and a Vice President from UPS published a paper together congratulating themselves on their collaboration.

Today comes word from the New York Times of a new UPS service, an experiment, to be sure, but a new marketing service direct to the door. (From the New York Times, reported by Postcom.org – see below.)

The description of the service is a milestone of its kind as the UPS innovative product manager explained that the new service will be different from what you would receive from the postal service because (the New York Times adds) you would not feel that you were receiving “junk.” No more Mr. Niceguy?

September 24, 2009
Delivering Something Extra
By STUART ELLIOTT
SINCE 1907, United Parcel Service has been delivering packages ordered by consumers. Next week, the company plans to deliver packages they have not ordered, in a test of an effort to expand into direct marketing.
Beginning on Monday, U.P.S. will experiment in five major markets with a service it calls Direct to Door, giving advertisers and retailers a chance to provide offers and product samples to U.P.S. customers. The marketing materials will come inside small boxes labeled Direct to Door Paks, and will be delivered to customers along with merchandise they actually ordered.
The test, to run through Oct. 2, is intended to gauge whether there is interest in having U.P.S. serve as an alternative to marketing mail delivered by the United States Postal Service or by companies like Valpak.
If Direct to Door goes forward, the added revenue could help United Parcel offset declines in demand for its mainstay package delivery service since therecession started.
In July, U.P.S. reported its sixth consecutive quarter of lower package volume in this country. The decline in the second quarter was 4.6 percent compared with the period a year earlier, which Bloomberg News described as the worst result since United Parcel went public in 1999.
“I wouldn’t say it was developed as a result of the economy,” said Lisa Lynn, marketing director for new-product research and development at United Parcel in Atlanta.
Rather, she said, it stems from “some opportunity we saw at the heart of what we do every day working off our delivery network.”

Read more at the New York Times

The Hardest Prediction of All, Seeing the Future

August 24th

Predicting the future makes most people so nervous that they often make the same joke about Yogi Berra’s insight that the future is the hardest thing to forecast.   But in spite of the normal anxiety, we can anticipate that there are going to be a boatload of stories about the future now that it begins to appear that the financial crisis is passing.

Today brought two new contributions.  First, Deutsche Post has just published a study of the future entitled “Delivering Tomorrow: Customer Needs in 2020 and Beyond, a Global Delphi Study.”  The study draws conclusions from an intensive examination of expert perspectives on a number of critical issues that will define our future:  what will happen to the price of oil?  what will the progress of climate change mean?  how will global interactivity evolve?

Perhaps the cultural differences in perspective offer theses about the future that move beyond traditional boundaries.  Or, possibly its just going to be more interesting to think about these long term issues now that we are on this side of the financial crisis than on the old, optimistic one with which we are familiar.  But the 2020 study offers numerous startling theses.  What will a world look like when China is the undisputed winner of global economic competition?  What will global transportation be like when polar routes have been opened up by polar melting.

The McKinsey Quarterly then wrote about one of its classic articles, the next revolution in interaction,  Like Deutsche Post, McKinsey found that the progression of interactive technologies will continue to evolve and to shape the future.   The point of the 2004 article from McKinsey was to encourage a focus on trends that will enable companies to attain sustainable competitive advantage.

Instead of strategies that focus on cost cutting, a short-term benefit that can ultimately be copied, both research sources encouraged their readers to focus on trends that would enable customized solutions.  Whether the discussion is of the evolution of the logistics business or the changing nature of enterprise in an information rich marketplace, trends that make it possible to individualize solutions will be dominant ones in shaping the future.  For those who become anxious with discussion of the future and its uncertainties, these studies point to the need to engineer organizations and infrastructures that facilitate agility and adaptability to changing customer requirements.

This may be hard to communicate.  Individualization?  Adaptability?  Most will say, but what will the future be like?  Talk of “open standards” and “plug and play” solutions seems to be a slide into software jargon.  Yet the idea of creating a framework that is the opposite of command and control seems to be captured by the iPhone ads.  Apple has communicated a framework.  Understanding that “there’s an ap for that” may turn out to be Steve Jobs biggest contribution of all.

Calling the Turn

August 20th

The financial crisis of 2008 raised the question of whether we are facing a turn, resetting to a new normal or pausing before the resumption of growth. Knowing where you are is critical. Those who bet on future growth that doesn’t materialize will lose the race and even bankrupt themselves. But those who bet on decline when they are only seeing a pause will stagnate and they too will lose.

What’s hard to see from the outside is the way that the stakeholders will work overtime to assert that the curves are heading up. Vested interest is so powerful that they will honestly believe that the Sun is the Moon.

Great leaders will have the courage to call the turn.

Listening to Jim Collins talk about his new book How the Mighty Fall, in which he traces the five stages of ascendancy and decline, you can see that this is is going to be one of the enduring questions of our time.

The experience of living through the worst financial decline in 80 years and not being sure of what you saw will be an framing memory that will structure our perceptions.  The fear of imminent decline will cast a long shadow into the future.s