A Logistics Perspective on the Virtual Marketplace.pptVIP

A Logistics Perspective on the Virtual Marketplace Taylor Randall University of Utah LOGITRANS 2000 * The dynamics of virtual value. Where did the value go? 4 lessons from the dot com crash... …A logistics perspective He who fails to learn from history is doomed to repeat it. We have been repeating history. Lesson 1: History shows that business success is built on logistics infrastructure. History Quiz: Who said it and when? “You may go to an average store, spend valuable time and select from a limited stock at retail prices… or have our Big Store of World Wide Stocks come to you.” a) Jeff Bezos - business plan of A 1995. b) Bill Gates - on retail plans for Microsoft 2000. c) none of the above. History Quiz: Who said it and when? Answer: c) none of the above From Sears-Roebuck Catalog 1915 Catalog regarded by economists as a “radical transformation in the marketing and distribution of consumer goods.” History of Sears Roebuck - 1886 - Richard Sears begins to sell watches to railroad station agents. - 1896 - First large general Sears catalog. High Growth 3 innovations in logistics infrastructure made the catalog successful. - 1915 - Rapid Sales Growth Begins What happened here? Tough to deliver goods prior to 1900 The King Road Drag Invention leveled and packed muddy roads. Made auto transportation possible. History of Sears Roebuck - 1886 - Richard Sears begins to sell watches to railroad station agents. - 1896 - First large general Sears catalog. - 1906 - D. Ward King invents the “King Road Drag” - 1912 - Congress mandates “Parcel Post” as long as you have good roads - 1906 - Sears installs pick and ship plant (10x productivity increase) High Growth Begins So what was the greatest innovation Catalogs? or the King road drag? “A lot of people jumped the gun. They tried to skip the first two phases.” Roger McNamee, Integral Capital Partners 2000 Technological change happens in 3 phases: 1. Creation of infras