SBUX and Mortgages
I was at an event last week where the speaker was discussing his latest book Extreme Competition. Much of his talk was about Business Process Management (BPM) - which, frankly, was a bit over my head. OK - maybe more than a bit. Yet, there were some fascinating issues that he raised. The number one thing I brought away from the evening was this: if you charge a fee for activities that you perform, you are providing a service; if you charge a fee for how you make people feel, you are providing an experience. Ah-ha! This explains the Starbucks phenomena - why people are willing to take out a mortgage to buy a lowly cup of coffee.
The other things he talked about were sobering and disturbing. Asia and India are the new frontiers of capitalism. According to our speaker/author, the Asians are very serious and dedicated to getting an education - particularly in science and engineering. With the advent of technology and globalization, we are now competing against 3 billion (that’s with a b!) new capitalists. It is not just about cheap labor anymore. They are investing in their mental assets with the intent of dominating the intellectual property markets. America has gotten very smug and sure of its intellectual dominance, a confidence that is not warranted.
When Brittany Spears tours Asia, they have no idea who she is. When the CEO of Sun Systems tours Asia, he is greeted like a rock star. 30% of high school students in America drop out before graduation. Rich Dad Robert Kiyosaki says in his book Prophecy that the entreprenuerial and pioneering spirit of the immigrants who came to America just asking to be given a chance has evolved, in those immigrants’ grandchildren, to an attitude of entitlement. Our author says that history shows us that wealth only lasts for 3 generations before another country/region takes dominance. This has to give any red-blooded American shivers down their spine. Will America slide into oblivion in the next 3 generations? If so, what does that portend for our children and our grandchildren? Will Singapore or Tokyo become the new “land of opportunity?”
One last tidbit to keep you awake tonight: the population of America is roughly 200 million. The population of Asia is 3 billion. Our population amounts to no more than a rounding error! Time to wake up, America and smell that great Starbucks coffee…
“All Things With Exuberance!”
mary
