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Benoit Sarazin

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When Will the E-book Make its Breakthrough?

The arrival of the heavily publicised iPad has shaken up the book market. After Amazon’s Kindle, Sony’s E-reader, readers have yet another device that allows them to read on a screen. It is a disruptive innovation that can turn the book industry upside down. But when will it come? How strongly will it come? These are the questions on the lips of professionals working in the editing industry, with good reason.

Continue reading "When Will the E-book Make its Breakthrough?" »

April 29, 2010 | Permalink | Comments (13)

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China Beats the West in Africa

On the 30th of March I attended a fascinating debate held by the Chinform (Institut de Formation Chine), the analysis of which I will present here. China is in the process of accomplishing a real tour de force: dominating the African economy to the loss of the Europeans and the Americans. Chinese investments on the African continent have risen to 875 million dollars throughout the nine first months of 2009 and have increased by 77% from 2008 to 2009 (Source : Le quotidien du peuple en ligne). China funds the construction of roads, railroads, hospitals and schools. Its companies enjoy a privileged place at the expense of their Western competitors.

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March 31, 2010 | Permalink | Comments (7)

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IKEA: The Step-by-Step Revolution

IKEA succesfully carried out a disruptive innovation in furniture delivery. For its competitors, it was revolutionary. It resembled an uprising concocted by a political party which takes hold of the people and overthrows the sovereign monarch. It was brutal, violent, irreversible and premeditated. Despite these characteristics the members of the IKEA team perceived the disruption in an altogether different fashion. For them, it was led incrementally, in a step-by-step manner. It was like the growth of a budding Oak tree who, after having survived the autumn storms, the winter freeze and the forest fires of the summer, ended up being the tallest tree in the forest. It was made of constant adaptations, of imagination, of searches for novel solutions, of perseverance and determination.  

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March 26, 2010 | Permalink | Comments (30)

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During a Crisis, Find Your “Inner Zone of Excellence”

By Robert Dilts

During a crisis, we have a choice. Either we find our "inner zone of excellence" and re-energize by connecting with the strength within. Or we regress into survival strategies that weaken our position further.

The inner zone of excellence is a key part of what is known as the “inner game” of business. The concept of the “inner game” was developed by Timothy Gallwey as a way of helping people to achieve excellence in various sports (e.g., tennis, golf, skiing, etc.), music and also business and management training. Fundamental to the inner game is our ability to stay in a high performance state when confronted with difficult circumstances.

Many challenges will present themselves in our business : fear of the unknown (i.e. what will happen tomorrow ?), dealing with loss (i.e. losing a member in the team) and a general sense of vulnerability (i.e. how can I succeed in spite of unfavorable circumstances ?). These can plunge us into unhelpful survival strategies: attack, escape or rigidity. This frequently results in temporary regression or inertia.

On the contrary, we can focus in our "inner zone of excellence" and feel :

o No fear of failure or anxiety about achieving our goals

o A  state of focused spaciousness in the mind and relaxed readiness in the body

o Performance coming without effort and without having to think about it

Continue reading "During a Crisis, Find Your “Inner Zone of Excellence” " »

February 04, 2009 | Permalink | Comments (193) | TrackBack (0)

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The problem is our relationship to money

That's what Peter Koenig told me in the “Money Seminar” that I recently attended. This is an astonishing course and I recommend it to everybody. Peter has an original vision of money related problems. According to him, money itself is not a problem: it is only a tool to facilitate transactions. Our relationship to money is at the source of difficulties such as the financial crisis. For instance, many people are afraid of lacking money to sustain their own security. This is an illusion. Whatever amount of wealth they own, they will always feel they do not have enough to feel safe. They will spend their life accumulating endlessly. In reality, we all have inside of us the means to feel safe, with or without money.

Here are excerpts of an interview of Peter Koenig :

“ Crisis equals change and opportunities for growth, it is said. What could be the benefits of this crisis?

Peter Koenig : Generally speaking the main benefit of this crisis is that it brings us away from the fictional, abstract, self-delusional world we have been pretending is the truth and natural and call "normal" -  a fiction mirrored by the financial system from inception in its design in 1692 - back to reality and closer to nature. A healthy remembering process.

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February 04, 2009 | Permalink | Comments (50)

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Polia : Nobody controls a market disruption

Polia Consulting is a Consulting company specialised in Knowledge Management. It was able to make full use of the market disuption which lead to the creation of this new concept. Its founder played an important role in promoting it in France. However, despite this position, Polia Consulting was not able to control the evolution of the market disruption.

Knowledge Management is a new management method which creates a disruption in the consulting market. It allows companies to anticipate the future management of its employees’ skills. It valorises them and assures sustainable cooperation between the teams. This new concept was born during the late 1990s, and it quickly got the attention of many company executives. By 2001, it became the cutting-edge theory that everyone was talking about. Polia Consulting is a consulting company which was created that same year, based on this new concept. It quickly became a leader on the market, making outstanding profits and growing at an astonishing rate. When one listens to this tale, one is admirative of Polia Consulting’s acheivement. What timing! What success!

However, Jean-Yves Prax, founder of Polia Consulting, tells his story in a much more humble manner. He confirms that he participated in the coming of a market disruption but admits never having been able to control its development. As a matter of fact his undertaking has not always been so glorious. In 1993 he created his first company, CorEdge, a consulting firm based on ideas which were very close to Knowledge Management. The first brochure edited by Jean-Yves Prax already mentioned the importance of “Knowledge” for businesses. But the market for Knowledge management was not ready at the time as no potential client saw the point in giving importance to competence management. In the meantime, CorEdge started by working in the Enterprise Content Management sector, a technological breakthrough which was then very popular for companies. CorEdge had a hard time establishing itself in a market where competition was already feirce; it indeed became a minor company in this domain and its financial situation was uncertain.

Jean-Yves Prax, while being an entrepreneur, was involved in the dawn of Knowledge Management. He lectured conferences and wrote articles and books about concepts which later became the basis of Knowledge Management. At first, his ideas were vague but they soon became clear as he expressed them in more depth. Most importantly though, mentalities in companies changed. The concept of skill management soon appealed to company directors. It was a Japanese man called Ikujiro Nonaka who made the concept of Knowledge Management official in a book called “The Knowledge Creating Company”. Immediately breathtaken by his ideas, Jean-Yves Prax spread the new theory in France. His public was enthousiastic and he was soon a big part of a mediatic outbreak which came to its peak in 2001.

It was then that business truly started to pick up for Jean-Yves Prax. He left Coredge into the hands of new owners and founded Polia Consulting which was dedicated to Knowledge Management. The new company soon prospered thanks to Jean-Yves’ reputation. Despite its recent creation, it gained a major Knowledge Management contract from a large French corporation. Business then started flowing and Polia Consulting was soon enjoying sustained growth.

When asked about how he was able to be so succesful, Jean-Yves Prax stays very modest. He humbly replies : “I happened to find myself in the right place when the tidal wave of Knowledge Management broke out”. He undeniably played a role in spreading the concept in France. He was however incapable of influencing the timing of the disruption. Would he have been able to do it, he could have forced the market to adopt the concepts of Knowledge Management earlier on. He would have then won time in the success of his entreprise.

Market disruptions have a steady development. They only take shape when two conditions are met. First of all, future clients must have latent needs for which they have not yet found an answer. In this case, companies feel frustrated with poor skill management, and other management techniques are unable to solve the problem. Secondly, a solution appears and is adopted by the clients, like the ‘Knowledge Management’ theory created by Nonaka and passed on by others. However, time is needed for clients to understand the potential of the solution, which causes the market to mature slowly.

Nobody can control the development of a market disruption. Even if the founders of the concept can legitimately claim themselves as being it’s father, they depend on the market’s evolution, which they do not control. Unless people see the point in their thoughts, their reflexions stay theoretical and approximative : indeed, the responses of their future clients are what enable them to enrich and perfect their theory. Jean Yves Prax explains: “It was the latent demand of the market which made the development of the ideas possible. When I reread the first books that I have written, I find they are flawed. It was only when companies were ready to receive the message of ‘Knowledge Management’ that it was born and was able to spread.”

October 11, 2006 | Permalink | Comments (3) | TrackBack (0)

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PriceMinister : how to create a unique value

How do you stand out in the crowd when all competitors do the same thing?  How do you provide a unique benefit that no other can offer? This seems an illusionary quest. And yet, Priceminister reveals that it is possible. This company has taken advantage of the e-commerce market disruption. It has created an innovative benefit for its clients, putting itself above standards. Judging by its results, it has played better in the market disruption than a lot of other protagonists. What is their secret in reaching this objective ? The answer is observing clients' frustrations.

Priceminister is an online buying and selling site for new and second hand products. The corporation was created in the year 2000, a very inauspicious time, being in the middle of the internet bubble collapse. Nevertheless in 2006 the business is doing very well. It handles 20,000 transactions in France per day, with a 100% growth in 2004 and 2005. At this pace, the business should outmatch E-Bay soon. Priceminister is one of the few able to create a new business in electronic commerce and earn loyalty from customers, while many others have not survived the new economy's dream.

The key to success resides in a major innovation in value proposition towards the client. Priceminister has created two unique benefits that are unequalled today by its competitors. The first benefit is the trust instilled between individuals during transactions of second-hand equipment. The second benefit is the precise description of cultural products (books, CDs, films/movies) of which variety is almost infinite. Each product on sale is described as precisely as if new. How did the founders of PriceMinister come up with these ideas?

The inspiration came by observing the frustration clients felt with other solutions. Let’s take the example of a web surfer who wishes to buy a product on line, without going through the misfortunes of auctioning. He can buy a new product using a traditional online buying/commercial site, such as FNAC.com or Rue-du-Commerce. The products are perfectly classified with well defined characteristics. The site guarantees the buyer’s satisfaction: if the client is not satisfied, he can send the product back and is refunded. However, the site does not have fulfil all expectations. Perhaps the buyer wants to groove on the sound of Charles Aznavour’s first songs, whose album is not in stock at the store. FNAC.com's catalogue will not include the desired product.

Or perhaps he wants to acquire a second-hand DVD player in order to enliven his rainy afternoons in his country house. To him, FNAC.com's prices seem too expensive. Our internet user can then try online classified ads. This allows a contact between a great number of sellers and buyers: the choice is large with appealing good deals.

But the buyer embarks on a journey riddled with traps. The ad describing the product is incomplete, maybe even erroneous: he isn’t sure he’s ordering the right product. He makes contact with a seller he does not know: and what if the stranger isn’t honest? If he is not satisfied with the product he receives, he has little resort . It is a risked transaction and he can pray god that it will not go amiss.

Priceminister has defined its value proposition by addressing clients' frustrations. Why not offer the best of two worlds: FNAC.com's high quality service and/combined with the diverse low prices of auctioning?  Its CEO, Pierre Kosciusko-Morizet explains: "We have designed our service to equal the performance of online e-commerce sites. For each of our transactions we act as a trusted third party between the buyer and seller. We guarantee that the seller will be paid.

If the buyer is not satisfied, he can send us the product and is refunded. We put at the seller's disposition a gigantic data base with products' characteristics. When they put an item on sale, all they need to do is enter its bar code and its pre-registered technical information is activated. This allows the buyer to be completely reassured on the product he orders."

By designing such a service, PriceMinister has created a new market: the company targets a new segment made of unsatisfied clients of e-commerce sites and disappointed users of online classified ads. It’s the emergence of a new market that explains the company's regular growth.

June 23, 2006 | Permalink | Comments (5) | TrackBack (0)

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Newspapers : learning a new paradigm

The Internet disruption has transformed the paradigm that rules the newspaper business. Newspapers have to find new value for their readers. They have to reinvent the pricing model. They have to learn again the basics of their business. But how do you do this while keeping on running your day to day operations ? The IHT (International Herald Tribune) gives us a simple answer. First, they set a separate Internet team to experiment the new media. Later, when online news were more mature, they started integrating the Internet team and the Paper team to create a multi-channel team.

Online news has grown to become a major information media. The Internet revolution started in 1995 when the emergence of web sites created the possibility to publish news online. In 2006, everybody admits the hard facts : there are at least as many readers on the web as there are for printed newspapers. As many as 2.5 Million users visited the IHT Online Edition in the month of January 2006. On the other hand, overall newspaper circulation (the number of printed newspaper copies issued) is flat or decreasing.

Unfortunately, the financial picture of the Internet revolution is not that bright. Readers’ enthusiasm for online news does not show in revenues. Since the early days, the disruption raised a fundamental question : if news are published for free on the web, will the Web cannibalize the printed press ? Will it destroy the industry’s profits ? Advertisement, the main source of newspaper revenues, generates much less from online than from paper. However, according to TNS Media Intelligence, the French Internet advertisement market, although small in size, grew 74 % in 2005. Could it get big enough and and compensate the decrease of paper advertisement revenues? Nobody can tell.

In order to learn how to deal with the new paradigm, IHT (International Herald Tribune) initially created a separate Internet team. They were not alone: the New York Times created a separate subsidiary named New York Times Digital to run the Internet activity. IHT’s traditional core business was keeping employees focused on paper. At the same time, the IHT’s Internet team was free to experiment the new possibilities of the web. They re-designed parts of the site frequently, for a nicer look and a better user experience. They moved from a once-a-day-update to 24-hours breaking news publishing. They launched blogs around events such as Davos. They learned the new processes required by a publication on multiple media. For instance, if an article is published on paper and web, any correction to the text has to be reflected on both media. They continue to test and learn. In spring 2005, they have launched a new mobile service that makes news content available on smart phones. 9 months later, this service already enjoys 350 000 page views per month. 

Thanks to the freedom it was given, the Internet team did not have to worry about online cannibalizing paper. It could take a completely new approach to rethink its pricing model. Paper can be bought by the copy in a kiosk or by subscription. This model does not fit the web. Meredith Artley, director of IHT.com, says : “Readers can easily find so much news and information on the Web for free. Certain aspects of the site are incredibly unique, such as opinion pieces. That was part of the thinking behind creating TimeSelect, a fee-based service that gives readers access to popular columnists, multimedia content and archives”.   

Today, with the growing flow of online readers, newspapers have no other choice than getting a strong online presence. As Meredith Artley says: “The internal debate about cannibalization is now gone. Web readership being so big, everybody knows that if we do not have a presence over the web, a competitor will take our place.” Mentalities have changed. Journalists view an online experience as a plus on their resume. The web has become a central part of the newspaper business.

IHT is now organizing the integration of paper and Internet teams. Upper management has clearly set the direction : IHT is moving from a paper business to a multi-channel business. It is the future of the company and everybody in the organization has to understand it. The core business is set to produce news for both paper and web. Individuals from the Internet team are working closely with the print side of the business, and vice-versa. They make their expertise available to their colleagues to migrate smoothly to the new paradigm.

This is a good lesson on how to take a new direction in a market disruption. In the beginning, the effect and benefits of the market disruption are not clear. As a first step, it is best to create a separate “disruptive” team to learn and experiment the new possibilities made available by the disruption. The core business is kept on running the existing business in the traditional market. When things have matured and the market direction is clear, the second step consists in integrating the disruptive team and the core team to embrace the new paradigm.

April 05, 2006 | Permalink | Comments (4) | TrackBack (0)

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Etam: Lingerie in disruption

When the subject of textile is brought up, looks grow sombre, voices become whispers as if standing aside of a cancer-infected person. And yet, inspiring successes do exist. In 1996, Etam created the 123 Lingerie brand and new growth ensued. What was the winning combination which opened the gates to success? This new brand brought novel benefits: comfort and pleasure. It exploited a new disruption in client's habits towards lingerie. It took advantage of technological disruptions in textile materials.

The first novel benefit that Etam brought is comfort when buying. Any woman will tell you that a bra is difficult to choose. It must be perfectly adjusted to be comfortable all day long. When our story begins, buying undergarments was no simple matter in most stores. The client struggled while trying the bra in changing rooms of insufficient number.  Often not having found the right size, she had to dress up, go back to the aisles, wait for a changing room to become available and retry. Added to this was the nearby wailing infant and husband wandering aimlessly in the mall. Losing all patience, the woman would leave with an unsatisfactory garment. Christine Plazanet, who was at the time the head of this new activity, comments that "We put ourselves in the shoes of our clients. We understood that a successful trial of clothes was the requirement for a satisfying purchase. We have created a new concept of shops centered on trying clothes." The clients have access to spacious changing rooms. Vendors stay close in order to bring articles from the aisles while clients try them on. When a client doesn't find a fit, vendors bring the right article with the right size. This way the client is sure to buy a perfect fit. Rapidly this concept is adopted by clients. In store guest books,  clients praise the level of service.

The second novel benefit that Etam added next is pleasure. Delighted by these new stores, clients ask for innovation in products. Christine Plazanet explains: "We have decided to take a leap forward towards the pleasure of our clients. Pleasure is first expressed through personal well-being.  We have conceived "second skin" lingerie products. They are comfortable, soft when touched, and invisible under the clothes.  Pleasure is also felt through the satisfaction of seduction. We have created a seduction range of products with an elegant or sexy style. By playing on forms and colours, we have gone faster and farther than our competitors.”

This product renewal rests on a disruption in the client's behavior. In the 70s, women emancipate. It was an era of utmost feminism. They abandoned the bra and put their sweaters on bare skin. They boycotted traditional underclothing since it appeared to be an obstacle to their freedom. But it is only a phase in which taboos drop. In the 90s, they dare take care of themselves. They aspire to well-being. They often attend care centers for massages or thalassotherapy.  They want to expose their bodies. The big brands of Haute Couture understood this. Looking to revive a sluggish market, they launched "chic porno". Sexy clothes like the thong, once reserved to prostitutes, proliferate. A latent need is just being revealed, provoking a breaking off in client's behaviors: underclothes are no longer simply functional but embody the expression of sensuality. The Etam lingerie team has perceived this change of mentality and exploits it to the maximum in its new range of products.

A technological disruption in fabrics is what enables these innovations. New materials such as lycra and tactel are born. They are soft upon touch and make undergarments arousing. They allow designers to conceive new shapes fashioned without seams that render underclothes invisible.
 
This story illustrates an original strategy in a market disruption. Etam has understood how to skilfully navigate on the waters of its market troubled by disruptions. The company was able to
initiate novel client benefits. These accomplishments show that even in sectors losing momentum such as textile, a well coordinated strategy can bring success.

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Lingerie at Etam

Lingerie is the original activity of Etam, its soul and the source its pride. The firm has created the independent 123 Lingerie brand in 1996, which she reintegrated in its Etam Lingerie division in 2001. Today it benefits from past innovations and is the European leader in its industry. It has circumvented the traps of Chinese competition by early outsourcing production to Chinese factories. The group now has more than 1600 outlets in China. Etam Lingerie brings valuable profits to the mother company whose ready-to-wear activity is given a rough time by strong brands such as Zara and H&M.

March 20, 2006 | Permalink | Comments (8) | TrackBack (0)

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How to stand out from the crowd?

How do you stand out from the crowd when you are anonymous? "John is an ordinary manager in a run-of-the-mill company. He just spent a long day working on some arcane file of which he is the sole person understanding the complexity. He knows that his contribution is not always appreciated by his peers. Despite the fatigue, he raises his gaze with pride on a newly published book where his accomplishments are quoted as an example. He belongs to an elite. He is one of the best experts in his domain." This is the promise that the new collection 20 Questions makes to its readers. It is a powerful demonstration of unprecedented value brought to clients. This new disruptive approach has the potential of overturning the rules of the game of the publishing market.

This is a story of a start-up who is launching a major innovation in the publishing world. It was told to me by Etienne Pluvinage, director of 20 Questions. 20_questions_1 When he talks to me about his project, his eyes twinkle and his voice resonates. He shares with me his passion for reading. He has a long carrier as a small business executive where, although swamped by his responsibilities, he manages to take some reading time and achieve a personal balance. “At the age of 52, I decided to combine my passion and my professional project. I undertook a new mission: I decided to create a new business book series to efficiently circulate ideas among managers. That is how I started 20 Questions.

The initial vision has a hard time convincing potential readers. At first, the concept aims the needs of managers who, during their career, rapidly become generalists. They are constantly confronted to new problems. They have to tackle new concepts that largely exceed the scope of their education. Etienne Pluvinage explains : "In response, 20 Questions is a series of books covering multiple topics in a simple and graspable manner. Each book is divided in 20 frequently asked questions that the author answers. Its content is made up from examples that seem familiar to the reader. It’s a simple format that is easy to read and generates concrete results. The readers subscribe and receive one book every month." Despite the clarity of his speech, his ideas do not spark the readers’ enthusiasm he was hoping for: they are good but not revolutionary enough.

The key to the unprecedented value of 20 Questions is found in the exchange between readers and authors. To help authors illustrate their books with real examples, the publisher gives subscribers the possibility of participating in the book's writing. These subscribers can consult books in progress on the Internet and offer their insight on the questions being discussed. If the input is interesting, the author can use it and immediately publish it on the site. The ones that brought the information can earn the privilege of being quoted as an example in the book. They can enter in contact with the other subscribers and read their comments. They are, at no expense nor travel, incorporated in a network of experts. Etienne Pluvinage reports : "When I speak about my project, it is the possibility of participating in the books’ writing that appeals most to readers".

The power of this value is explained by a regulatory disruption in today's employment market. The tacit contract that ties the company to the employee has considerably evolved these last years. Formerly, in exchange of a well-done job, a contributor benefited from the promise of a flourishing career and lifetime employment. The high marks given by his superiors were enough to support his social status. Today, with the pressure of competition and globalisation, companies can not pretend escaping from the necessity of downsizing. Whatever may be the quality of an employee's work, he can be brutally laid-off and find himself unemployed. The esteem of his superiors is only of small interest since they too can prematurely leave the company.

This situation leads to another disruption in the behaviour of managers who are the clients of 20 Questions. They have to find new ways to satisfy two needs: feeling important and secure. Since the company is no longer a reliable source of self-esteem, they need to be appraised beyond the walls of their company. They aspire to inform the world of their expertise. While doing their job, they do not want to be caught off-guard when a new competency is requested. In case of lay-off, they need to develop a network that will allow them to find a new job. They have to accumulate visible and appreciated achievements outside of the company.

The approach of 20 Questions perfectly responds to managers’ worries and aspirations. Without having to put in a lot of time, its subscribers build up a network made up of professionals that appreciate their know-how. They have the possibility of exposing accomplishments that are published in a book. Such quotations will of course be part of their resume. The contact with experts in a number of domains will help them dominate unexpected situations in their company. If they find themselves unemployed, they can immediately activate a network that will be very precious when searching for a new position.

The presence of an unprecedented value often makes the difference between success and failure. We have here a very good example of unprecedented value that should translate into success.

February 07, 2006 | Permalink | Comments (0) | TrackBack (0)

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