The rules of the game for business are constantly evolving.

Companies need to evolve with the times or risk being left behind...

Globalisation 1.0:

[New Trade East+West] Columbus sailed around the world=Not_Flat

[Muscle as the Key Enabler] Countries Globalising - Spanish Armada - British Navy - how much horsepower, wind power, steam power

Globalisation 2.0:

[First Multinational companies] Expansion of the Dutch and English joint-stock companies

[Industrialisation as the Key Enabler]

-Falling transportation costs = the steam engine and the railroad

- Falling telecommunication costs = proliferation of the telegraph, telephones

Globalisation 3.0:

[Empowered individuals] Eroding boundaries - Berlin Wall, Boundaries to information - the PC,

Boundaries to each other and unlimited knowledge - the WWW

[Internet as the Key Enabler]

- falling circuit costs

- extensively networked world = collaboration = Location is irrelevant = OUTSOURCING & OFFSHORING

Emotional Traffic Signs - Persuasion is more pwerful than coercion

We are all aware of the measures Governments go to to stop speeding drivers
Typicalyy
- Speed camers
_ Speed Guns
- Dynamic Signs that show your allowed speed and actual speed

Some of the new ones show either a Happy Smiley face we might see in an email or a Frowning unhappy face to create AN EMOTIONAL TRIGGER

The fascinating thing about these cameras is that they cost ~10% of the running cost of a conventional speed camera but PREVENT X2 AS MANY ACCIDENTS

SO A SMILEY FACE - AN EMOTIONAL TRIGGER - HAS MORE OF AN EFFECT ON US THAN A £60 fine

AN INTERESTING EXAMPLE of BEHAVIOURAL ECONOMICES:
In italy the penalty points go backwards you startat 12, if you go down to 0 you lose your license.

As opposed to theUK where they start at 0 and go up to 12.

The Itanlians found that making that change had a profound affect, GREATLY REDUCING THE NUMBER OF PENALTY POINTS.

Loss aversion has a more powerful influence on people behaviour. We hate to decrease the value of your possesions a lot more than we enjoy to see them increase.

In the UK its like YAY , got another 3!

Ataturk - Rebranding the veil

WHAT:
Ataturk wanted to modernise Turkey in the 1920s.

WHY:

Wanted to create a secular state.

PROBLEM:
In 1923 as the government implemented their progressive policies..they found resistance to the banning of the veil. That would have created resistance and violence.

They first considered banning it outright but decided it would bring about to much resistance and potential blood shed.

SOLUTION:
So, Rather than using a coercive approach,
JK: Ataturk being a lateral thinker made it instead compulsory for prostitutes to wear a veil

PUNCHLINE:
It wasn't long that support of woemn and their husbands for the veil began to dwindle. After all who wants to be labelled a prostituete or have a wife that sleeps with every man in the village.

The Potatoe - Marketing to solve problems

WHAT:
- King Fredrick of Prussia (Germany) 18th Century - King
- wanted to reduce Prussias dependecy on a single food source - bread

- Wanted to Increase the adoption of potatoes by farmers and consumption by the masses

WHY:
-Reduces price volatility by having more than a single food source
- Reduces the likelihood of fmaine as happened in Ireland

HOW:
- Gave them out for free
- tried to force farmers to grow them
- Stories of executions when refused to grow it

PROBLEM:
- People hated them
- They looked ugly and tasted bland
JK: His sheriffs would complian "We can't even get the dogs to eat them"

SOLUTION:
- So decided he'd take an alternative approach - Plan B: The Marketing approach
- Declared it as a Royal Vegetable and none but the royals could consume it
- He set up guards to protect the fields that cultivated it
JK:BUT he told them NOT TO GUARD IT VERY WELL
JK: If there was one thing C18th peasants knew it was this, IF THERE WAS ANYTHING WORTH GUARDING IT WAS WORTH STEALING
- within months the potato fields had been pillaged and an UNDERGROUND POTATOE GROWING MOVEMENT HAD BEGUN

PUNCH LINE:
- WHAT King Fredrick had actually done was - REBRANDED THE POTATOE

Joke: Chinese Supplies

An Italian, and Irishman and a Chinese fellow are hired at a construction site. The foreman points out a huge pile of sand and says to the Italian guy. "You're in charge of sweeping," to the Irishman, "You're in charge of shoveling," and to the Chinese guy, "And you're in charge of supplies."

"Now, I have to leave for a little while. I expect you guys to make a dent in that pile." So the foreman goes away for a couple hours, and when he returns, the pile of sand is untouched. He says to the Italian, "Why didn't you sweep any of it?"

The Italian replies, "I didn't have a broom. You said the Chinese guy was in charge of supplies, but he disappeared and I couldn't find him." So then the foreman turns to the Irishman and asks why he didn't shovel. The Irishman replies, "I couldn't get myself a shovel. You left the Chinese guy in charge of supplies, but I couldn't find him."

The foreman is really pissed off now, and storms off toward the pile of sand looking for the Chinese guy. Just then, the Chinese guy springs out from behind the pile of sand and yells 'SUPPLIES!"