Re: *** ADMIN: New list -- ISN-Citizens!

please Rob, go off list with this.

----- Original Message -----
From: Rob Dixon <rob.dixon@erros.co.uk>
To: <MIDRANGE-L@midrange.com>
Sent: Tuesday, July 24, 2001 11:10 AM
Subject: Re: *** ADMIN: New list -- ISN-Citizens!


> JT
>
>
> > As always you have a sharp eye for detail.  However, I could disagree
with
> > you on several points.
> >
> > Rather than what Leif suggested, I would suggest we take this topic
> > off-line, if you want to debate.
>
> No JT, there is no point.  Please don't make factual statements in public
> relating to me that are inaccurate.
>
> > While I got you "on the phone" let me ask you this:  I visited the IAiC
site
> > today, for the first time since I "un-joined".  I was looking for one
> > particular paragraph, for a letter I'm writing to someone at IBM.  It was
> > the one that listed 4 steps to collaboration.  I couldn't find it.  If
you
> > feel like it, and you know the post I'm referring to, can you e-mail it
to
> > me PRIVATELY please.  TIA.
>
> I don't know why you cannot find it on the site.  I have not removed
anything and
> I don't think Joe has.
>
> I presume you mean one of the letters to Zeitler.
>
> I have pasted in here the text of both.  Hope that this is what you want
>
> ---------------------------------------------------------------------------
---------
>
>                             October 24, 2000
>
>
>
> Introduction
>
>                             As I said in my previous letter, it appears
that the
> iSeries is your ticket to short-term profits as well as long-term growth.
That's
>
>                             an unbeatable combination.
>
>                             The architecture of the 400 is also unbeatable.
The
> primary design principle was to be able to grow over time.  It has a
20-year
>                             track record that clearly demonstrates the
validity
> of that principle.  Given that track record, it is clear to see the
platform can
>                             continue to grow at both the top and the
bottom.
> There is no doubt that, given sufficient resources, the iSeries can grow to
take
>                             any shape or form that would be required in the
next
> 20 years.
>
>                             IBM demonstrated clear vision to see the
inherent
> value of the Internet.  I believe that same clear vision is necessary to
see that
>
>                             the iSeries has the most potential to help IBM
> realize the full value of the Internet.
>
>                             Some or all of this may be obvious to you.  It
may,
> or may not, be equally obvious that the only way to accomplish these things
is
>                             through dramatically increased sales.  It may
be
> obvious that the only way to do that is by empowering your customers to
help you
>                             accomplish this.  I belabored the points above,
> because I think they justify your making this extraordinary effort to
empower
> your
>                             customers in this way.
>
>
>
> Optimal solution
>
>                             I am relatively certain that the optimal
solution, to
> the question of how to dramatically increase sales of the iSeries line,
primarily
>
>                             involves two things:
>
>                                1.Ramping up manufacturing capability
(because the
> new N.Y. facility won't be online soon enough)
>                                2.Assisting your customers so they can
create both
> a non-profit and a for-profit organization dedicated to advancing the use
>                                   of the iSeries
>
>
> Why
>
>                             Point #1 should be clear from the third quarter
sales
> of iSeries and pSeries eServers.
>
>                             Point #2 requires some explanation.  I hope you
can
> bear with me on this one.
>
>                             There are several ways a new user organization
can
> help the iSeries, and all of IBM:
>
>                             One way, as I mentioned in my previous letter,
is to
> help organize and administer a program where enthusiastic customers can go
>                             on sales calls to educate potential purchasers
about
> the advantages and disadvantages of the iSeries.
>
>                             Another is to design, develop, and deliver the
best
> possible education on any and all aspects of the iSeries--free of charge to
>                             members.  This is a component of the idea to
send
> volunteers to potential customers.  The free membership to the organization
>                             could be used to entice volunteers.  But the
aim is
> much broader than that.  The problem today is not lack of educational
material,
>                             but lack of usable material.  In fact, the
problem is
> often too much material.  This organization can determine how to make the
>                             vast amounts of information accessible to the
> customers.  If the necessary materials are not available, then the group
will
> need to
>                             develop them.
>
>                             Yet another way this organization can serve is
to
> provide objective "propaganda" to the media.  This is a very promising area
>                             because this can be accomplished by a small,
> dedicated group.  It doesn't require as much coordination as other
projects.  The
>
>                             group can act as a watchdog over the media,
keeping a
> vigilant eye over misconceptions and out-and-out misrepresentation of the
>                             facts.  Keep in mind however, that for this
area to
> be included in the non-profit organization, anything written would need to
be
>                             objective.  Fortunately, the objective facts
favor
> the iSeries.
>
>                             But possibly the biggest ways this organization
can
> help both IBM and the iSeries community are:
>
>                                1.By clearly identifying the markets'
current and
> future needs
>                                2.By promoting communication between IBM and
the
> market (and it's customers)
>
>                             From what I'm seeing, it is extremely difficult
for
> IBM to gauge what the market really needs.  Especially given the fact that
the
>                             market itself does not know what it needs.  In
an
> interview, Mr. Jarosh said that the integrated product development (IPD)
>                             process was put into place specifically for
this
> purpose.  I'm not talking about replacing that process, but augmenting it
with
>                             another view.  I'll give one brief example of
where
> the IPD could be improved.  My understanding is that the iSeries DNS is
>                             wide-open to attacks by hackers,  and that it
has
> been like this for several releases of the OS.  Nobody can look a potential
>                             customer in the eye and say the iSeries is a
good
> eServer if these facts are correct.  I got this from a pretty reliable
source, so
> I
>                             would say this is one example where your
customers
> can alert you, in advance, to serious problems that might slip through the
>                             cracks.
>
>                             A similar, but unrelated, area this
organization can
> help IBM is by keeping "it's finger on the pulse" of the marketplace.  By
reading
>
>                             the pulse and reporting the findings, in
writing, to
> the appropriate area within IBM, the organization can perform a valuable
>                             service.  Again, I'm not suggesting that this
should
> replace the market research and focus groups that are currently being done.
>                             This information can be used to improve the
current
> market research.
>
>                             The above examples show how this organization
can
> help promote communication between IBM and it's customers in the areas of
>                             product development and marketing.  But better
> communication is a deliverable in its own right.
>
>                                   Customers have problems that IBM can
easily
> solve, if only the customer knew who to call.  This organization can help
route
>                                   problems to the correct department in
IBM.
>                                   All customers are going to have an
element that
> rants and raves.  This organization can give these elements an avenue to
>                                   rail against you.  The ranting can be
siphoned
> off, and the cream of these ideas can be presented in a reasonable way.
>                                   This organization can act as an agent of
> change.  This organization can pound the iSeries community on the areas
they need
>
>                                   to improve on
>
>
>
> Funding
>
>                             I believe this organization can be funded by
annual
> dues in the neighborhood of $100 per individual.  There may be a use for
>                             corporate memberships priced on a sliding scale
> depending on annual sales.  I think these amounts are easily justifiable by
the
>                             free education and other benefits.  I don't
have an
> opinion if vendors should have a special class of membership.
>
>                             I also believe that this organization will
provide
> monetary benefits to IBM.  I would think that certain areas would have to
be put
>                             into a for-profit "feeder corporation" that
would be
> owned by the non-profit organization.  I believe certain of the activities
will
> not
>                             qualify, by law, as activities of a non-profit.
(For
> example volunteers going on sales calls and providing what's basically
market
>                             research.)  I'm not a lawyer, and I haven't
done much
> research on this to know exactly which activities would be in which
>                             corporation.
>
>                             I believe increased sales, along with reduced
> expenditures in some areas, would justify IBM paying for the services of
this
> for-profit
>                             enterprise.  This would probably end up being
the
> primary method of funding the activities of the non-profit organization.
>
>                             The other reason for the division between the
> non-profit and for-profit corporations is that it is, in my opinion,
absolutely
> critical to
>                             maintain an independent organization in order
to
> maximize both the organizations' dealings with IBM and it's contacts to
people
>                             outside the iSeries community.
>
>
>
> Conclusion
>
>                             I lot of what I've written here could apply to
any of
> your products in the eServer line.  I believe these ideas can get the
biggest
>                             bang for the buck if used to promote the
iSeries.  I
> say this because the iSeries can join with the pSeries to form the
"bSeries" (as
> I
>                             stated in my letters to Mr. Gerstner).  This
computer
> would be in a class by itself.  The "bSeries" can grow upward, it can grow
>                             downward.  It would simply be the best and most
> marketable computer available.
>
>                             But the reason these ideas will work best with
the
> iSeries is because of the extremely large and loyal customer base that it
enjoys.
>
>                             The many people who are active in the forums
could
> create a momentum that could increase the number of members in this
>                             organization.
>
>
> --------------------------------------------------------------------------
>
>                             October 19, 2000
>
>
>
> Introduction
>
>                             From everything I can tell, the following
assumptions
> that I'm using are correct:
>
>                                   The iSeries 400 has a good profit margin
>                                   The 400 has the best customer loyalty of
almost
> any platform
>                                   Customers that get a 400 tend to stay
with it,
> and purchase upgrades for it
>
>                             If these assumptions are correct, it appears
that the
> 400 is your ticket to short-term profits as well as long-term growth.  The
>                             resources spent getting new 400 customers would
> return immediate results, and at the same time, insure future profits.  The
>                             acquisition costs of new 400 customers can
therefore
> be spread over a longer period.  This is an excellent combination of
benefits.
>
>                             Gaining new customers, and mindshare, also
combats
> the primary deficiency of the iSeries.  That, of course, is it's "legacy"
image.
>                             The image that keeps the 400 from coming to
mind when
> a server needs to be purchased.  Many, both outside and within the
>                             iSeries community, believe that the platform
does not
> have good prospects against the Sun/Oracle/MicroSoft/Intel marketing
>                             muscle.
>
>                             Of course, I'm not telling you anything.  These
> concerns have been around for a while, and haven't changed much in the last
> couple
>                             years.  It would appear that this vicious cycle
is
> intractable.  In fact, those of us who've been with the platform 10 to 20
years
> have
>                             been following these issues over the decades.
>
>
>
> Non-solution
>
>                             I began roughing out something like a
white-paper
> yesterday evening.  I was honing in on the following conclusions:
>
>                                1.There isn't sufficient money available to
> overcome the iSeries "legacy" image
>                                2.People don't pay the right kind of
attention to
> ads
>                                3.eServer advertising will be slow to pay
> dividends
>                                4.The 400 Division can do the best job
marketing
> the iSeries
>
>                             I haven't completely thought through all these
> points, but I can send you what I have if you'd like.  But even though I
believe
> most
>                             of the above is correct, I don't believe these
ideas
> are pointing to the best solution to increasing 400 sales.
>
>
>
>
> Optimal solution
>
>                             The optimal solution depends on the answer to
one
> question:  Do you have confidence in the adaptability of your sales force?
I'm
>                             assuming that Business Partners and Sales Reps
still
> make calls to close the sales.  The reason I ask the question is because:
>
>                             The quickest, surest, low-risk way to ratchet
up 400
> sales is to...
>                             have your customers do it.
>
>
> Why
>
>                             The iSeries Division's primary assets are the
> architecture of the 400, and it's loyal customers.  The technology isn't
selling
> itself.
>                             Effective marketing could and would help this
> situation.  But as I've glanced at discussions over the last few years,
great
> attempts
>                             have been made.  Outstanding efforts.  Over and
over
> and over.  No doubt they've helped sell the 400 immensely.  The
>                             re-branding may, in the end, also help.
>
>                             But the marketing isn't breaking the vicious
cycle.
> I'm starting to doubt if it would ever be possible, because if marketing
could
>                             have turned 400 sales around, I believe it
already
> would have.  Contrary to most in the 400 community, I don't believe it's a
case
>                             of lack of effective marketing (though it could
be
> improved).  The problem is not just solvable by marketing alone.
>
>                             Clearly, superior technology is not going to
sell the
> 400.  The technology is obviously superior to those who see it.  Those
customers
>                             have already been won over.
>
>                             The current method of selling the 400 is making
> incremental gains.  As I said at the start, the goal should be making major
>                             inroads into the competition.
>
>
>
> How
>
>                             OK, if you're still interested in this, the
thing is
> that you have to forget about the "How".  The "How" confronts the issues of
what
> is
>                             do-able and what is not do-able.  Before that,
you
> have to accept the premise that you're not going to make inroads into your
>                             competition any other way.  The current
techniques
> are not working... Not because they're not good methods.  It doesn't even
>                             matter if they are, or aren't.  They haven't
worked.
> They would have worked by now.  The market has spoken.  Time to listen to
>                             the customer and especially the non-customer.
If we
> can't connect on this point, then you need not read any further.
>
>
>
> How
>
>                             This is the fun part, to me!  This is systems
design
> (I learned long ago that systems had only a little to do with computers).
>
>                             I'm not going to hype you.  I don't have a
master
> plan.  I know I can work one out.  It takes IBM and a group of devoted
>                             customers to implement the plan, so obviously I
can't
> speak to whether it will work or not.  I don't know you.  That may scare
you
>                             off.  I can assure you that if the things come
> together, it will work better than your current plans, and probably cost a
> fraction of
>                             what you were planning to pay.
>
>                             The crown jewel, in my humble opinion, of this
plan
> is to ask the loyal, devoted 400 customers if they want to DO SOMETHING to
>                             help the 400, to help their own community.  The
> forums overflow with suggestions how the 400 should be marketed.  Go on the
>                             offensive and ask them what they're willing TO
DO
> about it.
>
>                             If I may be so bold, I would recommend that you
use
> Common to issue this challenge:
>
>                             "How many of you out there are willing to go
with a
> salesperson, out to a customer, to tell them what you think of your 400???
Let's
>
>                             see a show of hands."
>
>                             You can eyeball the room and estimate a 5%
response
> or a 25% response.  If the response is real decent (as I would expect) you
>                             immediately re-issue the challenge:  "No, I'm
not
> talking about how many of you like the 400; I'm talking how many of you
will take
>
>                             time out of your schedule -- maybe a couple
hours a
> month out of your schedule -- and make a trip out to a customer."
>
>                             Now at this point there are a couple paths.  If
the
> response is not good, you go with the bad cop.  "People talk about
marketing
>                             the 400.  Few want to stand up and do
something."  If
> the response remains strong, the speech is a little trickier.  The two
issues I
>                             think you'll need to deal with are:
>                             What do we get for our effort?
>                             Why don't you do more to help market the 400?
>
>                             I can't help but to get more controversial --
but no
> pain, no inroads into your competition.  (I digress, but I can't recommend
>                             things outside of the context of whether
they're
> affordable.  The best solution is obviously affordable.  But I don't know
the
>                             numbers.)  I believe the best answer to "What
do we
> get" is free education.  What's the profit in 400 education? I cannot
imagine
>                             how it could possibly be equal to the amount of
> customer good-will you'd get to give it away for free.  I'm no
philanthropist.
> I'm
>                             talking about building sub-brand equity.  This
is my
> opinion regardless of whether you take any of these suggestions or not.
>                             Particularly in light of the fact that if you
sell
> the 400 in the numbers I would expect, the momentum will implode on itself
for
> lack of
>                             a competent work-force.  I really enjoy putting
> systems together that "kill two birds with one stone" because you can help
your
>                             cause several ways by trading free education
for
> customer loyalty.
>
>                             This is why I referred to this solution as
> multi-dimensional.  You're selling, you're training, you're building brand
> equity.
>
>                             As for the issue "Why don't you (IBM) do
more" -- I
> have an excellent solution in mind:  you throw me a bone.
>
>                             I could make suggestions (I have made
suggestions)
> but I want to hit my deadline, and I don't really know what you want to do.
>                             It's none of my business, but I believe I can
> contribute perspective to this issue, if you want.
>
>
>
The
> Downside
>
>                             I'm not as good as I thought, because I thought
I'd
> have this pretty well figured out by now.  The primary downside is
opposition
>                             by your sales force (Sales Reps and/or BP).
That's
> why I asked how adaptable they are.  As far as I know, IBM has never done
>                             this.  It places extreme demands on your
salespeople.
>
>                             You can collect info on the customers who
volunteer
> to do your selling.  You can match them to prospects by industry, job
duties,
>                             maybe even personality.  But you can't control
them.
> First of all, it wouldn't work.  Second of all, you'd just give up the
advantage
>                             that they have for you.  You start training
these
> volunteers and the advantage they offer all of a sudden turns into a
> disadvantage.
>
>                             You have to train your salespeople how to work
off of
> the volunteer they're matched up with.  If the volunteer is technical, the
>                             salesperson shouldn't be.  If the volunteer is
quiet,
> the salesperson should be the opposite.  They need to work as a team,
except
>                             that the volunteer can't be working as a team.
It
> won't be as effective.
>
>                             I believe your sales force is trainable.  If
the
> pilots turn in good results, you might make BP participation mandatory.
>
>
>
> Conclusion
>
>                             I'm not saying this will be easy to accomplish.
I'm
> just saying this is the best way to get the message across.  This is the
way to
>                             get the message to penetrate.  This is the way
to
> turn brand equity and image into profits.
>
>                             Do I have all the answers?  Obviously not, or I
would
> have allocated enough time to write about some of my other ideas.  By
writing
>                             about just the one, I take the risk that you
might
> have liked some of the other ideas, but you won't want to look at them
because
>                             you think this one isn't good enough.
>
>                             I just have to take that risk, because I wanted
to at
> least cover the bases here.  And I also think it's important to keep your
>                             commitments.
>
>                             Thank you, sir, for your time.  Please let me
know if
> I can be of assistance in the future.
>
>
>                             jt  (James J. Toran)
>
> -------------------------------------------------------------------------
>
> Best wishes
>
> Rob
> ________________________________________________________
>
> Erros plc
>
> 44 (0) 1844 239 339
>
> http://www.erros.co.uk - The AS/400 Neural Database for the Internet
>
> _________________________________________________________
>
>
>
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