Guaranteeing Business Value to Customers

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Duration: 7:39
Source: Stanford ECorner
Author: Joe Liemandt, Trilogy
Copyright: Creative Commons: by-nc-nd
Found: Nov 5, 2009

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So we did great during the 90’s, made a ton of money. People were writing us $25, $30, $40, $50 million checks. And were selling software like crazy. We prided ourselves at having the best engines. And we expanded from configuration to price and commission. All these just esoteric, very hard to do engines. The company doesn't pay us a lot of money for. In 2000, we had a couple of big meetings. Where a couple of big insights where we decided, "Wow! Maybe we need to change." One of them was with Steve Ward. He now runs Lenovo, the PC vendor. At that time I think he was CIO of IBM or something one of our big customers. And he came in and he's like, "Jo, we've given you guys a lot of money over the years. And it reminds me of this health club I joined Jo." What? He said, "Well I go to this health club. I joined a year ago and I walked in. And it has all the most awesome equipment I've ever seen. Like it's got the cool stair step of thing. And all this gadgetry. And like they'll hook you up and do all this stuff. And I know that in this health club, there is the top of the line equipment. Best products on the market." He's like, "But it's a year later and I'm not in better shape." "And I didn't join the health club for the equipment. I joined it to loose weight. And that's sort of like with you guys. I know your stuff's the best in the market. We buy it like crazy. But we're not getting the business value that we want." I was like, "Ah! Ok, hmm. Well you know we signed a contract and if you don't like it, you can return the software. I mean it works according to spec." So second discussion. Jack Welch, GE was a customer. Jack Welch came in and said, "Well call it mentoring." Most of the people in the room will call it being yelled at. Well he's explaining to me that GE Med is not getting an ROI on their software. And I'm trying to explain to him that this product just won E-commerce Product of the Year. And I don't understand why he's yelling at me because o...
Language: English
Category: Business
Tags: Joe Liemandt, Trilogy
Country: United States


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