2-95(cid:9)
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`EST ER DYSON'S MONTHLY REPORT
`
`23 FEBRUARY 1995
`
`FORUM NAVIGATOR
`by Esther Dyson & Jerry Michalski
`
`1
`3
`
`This year at the Forum we hope to enlighten and enthrall you. We're espe-
`cially excited about the Forum this year because we're at a time when
`worlds collide: government and industry, Democrats and Republicans, social
`and commercial Internet users, Americans and non-Americans. Although the
`Forum always attracts a large contingent of industry insiders, we try to
`seed it each year with provocative new people and thoughts from outside our
`framework. Join us to meet with, argue with and learn from your colleagues
`and counterparts.
`Local to global is a delicate tension.
`It's the fundamental issue in many current
`conflicts: Should welfare be a local re-
`sponsibility or a federal one? What are
`the boundaries between private and corpo-
`rate life?
`In our own industry, we have a globe
`arguably controlled by Microsoft, and a
`profusion of local markets. Or is Micro-
`soft competing in a local market (where it
`has a monopoly) and about to enter a
`global one -- where it faces competition
`from the likes of AmEx and Time Warner?
`Along with Microsoft, we all face the
`choice between local success and a broader
`global market. Not only is our business
`getting larger; it's becoming more tightly
`integrated into the world at large. We
`are no longer a niche market, but part of
`the fabric of daily business life.
`This issue
`This is the first year that we are putting
`the Forum issue online in a truly hyper-
`text form, with easy cross-references from
`chunk to chunk. It occurs to us how uni-
`fied and cross-linked everything is:
`Brian Arthur to Nathan Myhrvold; Carol
`Bartz and design templates to IP on Tues-
`day; Bob Frankenberg to the geography dis-
`cussions of Monday; and so forth. So read
`it in chunks, in any order you wish, on-
`line or off.
`SEE YOUSE IN PHOENIX!
`
`INSIDE
`LOCAL<-->GLOBAL(cid:9)
`Cook learns to love Bill.
`ELECTRONIC COMMERCE(cid:9)
`Eric Hughes.
`Mike Nelson.
`LOCAL<-->GLOBAL ENTERPRISES 5
`Jim Manzi.
`Gerhard Schulmeyer.
`Neville Cusworth.
`10
`DR. StrangeAd(cid:9)
`Hayden learns to love IBM.
`RULES OF THE NET -- IP 12
`Mort Rosenthal, John Warnock,
`Gabor Bojar, Jim Clark.
`16
`VIRTUAL PLACES & PEOPLE(cid:9)
`Bob Kavner, Sherry Turkle,
`Stewart Brand, Adam Curry,
`Carol Peters.
`YOU KNOW ME, BOB!(cid:9)
`Bob Frankenberg.
`THE NEW ECONOMICS(cid:9)
`W. Brian Arthur.
`COMMUNICATIONS(cid:9)
`Bert Roberts, Alex Mandl,
`Wayland Hicks, Eric Benhamou,
`Russell Daggett.
`APPLICATIONS & PLATFORMS(cid:9)
`29
`Carol Bartz.
`Nathan Myhrvold.
`COMPANY PRESENTATIONS(cid:9)
`And debuts.
`RUMPUS ROOM(S)(cid:9)
`by Jerry.
`RESOURCES & CALENDAR(cid:9)
`Names, dates, details.
`
`22
`23
`24
`
`32
`39
`45
`
`EMEN1TRE Mum S(cid:9)
`
`104 FIFTH AVENUE, 20TH FLOOR, NEW YORK, NY 10011 - 1 (212) 924-8800, FAX 1 (212) 924-0240
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`ONDAY -- LOCAL <---> GLOBAL IN THE ENTERPRISE
`
`Most pc companies began as small operations, start-ups rather than divi-
`sions of larger operations. The pc companies sold products to large corpo-
`rations, but they often didn't understand their customers' problems. (IBM
`was a notable exception: It didn't understand its own problems, either.)
`The conflict between local and global challenges all businesses of any am-
`bition. Most productive, creative activity occurs on a local scale; most
`start-ups are local. The challenge of our times is to take that creativity
`and implement it on a broader basis, whether through mass production, in-
`teractive learning, or templates and methodologies that allow the re-use
`and improvement of existing knowledge. Brian Arthur (page 23) asserts that
`returns increase as you become successful in our world; the transition from
`local to global may increase rather than dilute your market power. The
`more important you are in the US, the more likely you are to succeed in
`Russia. You don't run out of resources as you get larger. It used to be
`that you could grow by accumulating niche markets, but global is not just
`local writ large or multiplied; it may be local intensified.
`In the past, companies worried about products and features, market segments
`and pricing, customer service. Now they worry about more complex issues:
`business models and the very structure of commerce. They have to define
`what it is they're selling and what they want to be compensated for. Mass
`markets are a thing of the past; the value gets added by the purchaser, so
`the vendor has to be present for each customer to capture the value-added.
`Companies are defined more by how they behave than by what they own. It
`used to be an investor could invest in tangible assets: a factory, land or
`perhaps intellectual property such as product designs. Now, more and more,
`a company depends on the persistent performance of individual contributors
`-- intellectual process, not intellectual property. Companies and con-
`sumers want not just products, but relationships with their providers.
`
`SCOTT COOK, INTUIT: LOCAL HERO
`Scott Cook faces the future from a successful past. He is our industry's
`poster boy of success. Bill Gates, the industry's hero of yesteryear, is
`now a hero to the world at large, but Cook is still our hero -- the local
`boy who made good in competition with a global competitor.
`Why is he selling now? Basically, because you can't succeed and be local
`anymore. Intuit's next step is to become a global company. Its customers
`don't operate locally anymore; they do business worldwide, and they do
`business with banks worldwide. To succeed, Intuit must make banks into
`both partners and customers. But in the world of banks, Microsoft is a
`niche player -- and Intuit is a gnat player.
`
`Watching Intuit merge into Microsoft (if it happens) will be a
`little like watching your daughter marry a tycoon. She tells
`you it's for love, and you hope it's true. But somehow, you
`have your doubts.
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`By combining with Microsoft, its erstwhile enemy, Intuit can move forward
`faster in forging alliances with banks. When he spoke at PC Forum last
`year, Cook delicately noted that banks move slowly: "For those of you
`who've had the delight of working with the banking industry, that adds new
`meaning to the phrase 'legacy system'. 'Neanderthal' is, in some cases, a
`more appropriate term.... Don't expect [much] leadership from the banks."
`Over the past year, it became clear to Cook that while Intuit could survive
`nicely on its own, it could prosper as part of Microsoft.
`Cook will discuss electronic commerce from his point of view -- a practical
`one of what makes the market. He sees it as "the overlap of two circles of
`what consumers really want and what the technology does really well."
`"You have to figure out what in Procterland we'd call the missing customer
`benefit," says this former Crisco brand manager. And of course the customer
`is not just consumers but also banks. "I haven't met a financial institu-
`tion that doesn't wish it had a closer relationship with customers," he con-
`tinues. "They all yearn for that. But they borrowed from packaged goods:
`They do product management, so they manage products, not customers. Cus-
`tomers know only one product. For example, I've had a Citibank credit card
`for years and I have all these Citibank branches around me, but they've
`never asked me to become a customer for any other service."
`The fundamental question, says Cook, was simple: "Do we want to be success-
`ful fish in a number of ponds, or do we want to really change the world?
`...in many more countries and many more segments than we could by our-
`selves?" As for himself, he's not about to take the money and retire. "Per-
`sonally, this is what I like doing, and now I can do it in a big way."
`
`PANEL: ELECTRONIC COMMERCE GOES GLOBAL
`Online commerce seems destined to turbocharge business and alter the
`dynamics of many markets. It will accelerate the pace at which individuals
`and organizations connect, communicate, negotiate and transact. It has al-
`ready changed sales support and customer service. In its simplest form,
`electronic commerce means consumers enter more transaction information them-
`selves and make connections to payment systems more rapidly and cheaply.
`Underneath this straightforward aspect of electronic commerce lie other
`changes, some of them considerably more ominous -- or liberating, depending
`on your perspective. Financial functions will split, realign and reassemble
`(e.g., authorization and clearing); guarantors and other intermediaries will
`emerge and build thriving businesses off the new chaos and uncertainty.
`Jurisdiction, liability, ownership and other issues central to commerce will
`be forever changed. Borders that are now difficult to cross will be
`breached with impunity. Eventually, this plot goes, large portions of the
`economy will slip underground, avoiding taxmen and other prying eyes (see
`Release 1.0, 1-95).
`Eric Hughes, Open Financial Networks: Money as math
`Eric Hughes loves logic and structure. His longtime interests include pro-
`gram verification and correctness, formal logic, computational complexity,
`foundations of probability and the physics of computation. He also enjoys
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`ooking into the future of the global financial system. What he sees would
`surprise most people in the business. What he is creating -- both in terms
`of technology and structural frameworks -- may help his vision come to pass.
`Hughes' interest in cryptography became a passion when he met David Chauml
`in 1991 at the first Computers, Freedom and Privacy conference. Hughes
`worked with Chaum in Amsterdam for a while, but quickly left to follow his
`own path. Hughes co-founded the crypto-lib group cypherpunks with Tim May
`in 1992 and wrote the first anonymous remailer shortly thereafter on a dare.
`Recently Hughes developed a new cryptographic key-exchange protocol which is
`more appropriate for broadcast applications than previous protocols. He is
`also working on cryptographic technology that would allow accounting books
`to be audited remotely without giving the auditors access to all the infor-
`mation in the books. An expert in developing legal'structures to support
`cryptographic transaction systems, Hughes is also a careful study of the
`evolution of payment systems and currencies. These capabilities could one
`day form the foundation of a cryptography-based banking system. Hughes will
`be the guest author of a future issue of Release 1.0.
`Now Hughes is a payment-system designer. His company, Open Financial
`Networks, is working on transaction systems with open standards and open ac-
`cess. Hughes' goal is to create an alternative system to the current ones,
`which would reduce the friction of negotiation, audits, clearing and other
`necessary processes. It would allow smaller players to participate in the
`electronic economy as micro businesses with minimal costs.
`Mike Nelson, The White House: Here to help ust
`Mike Nelson earned a PhD in geophysics from MIT. The experience served him
`well: "Government processes are like plate tectonics. Having a sense of
`geological time helps you maintain perspective." He spent a lot of time
`traveling around the southwestern deserts, in fact, so he should feel right
`at home in Phoenix.
`He also feels right at home in much of the world, since he currently spends
`almost all his time on the Clinton administration's Global Information
`Infrastructure initiative; in the past year he has visited four continents
`several times, and will be arriving at the Forum fresh from the Brussels G-7
`meeting. He has worked with Al Gore on science and technology policy for
`more than seven years, starting as a staffer on the Senate Commerce Commit-
`tee's Subcommittee on Science, Technology and Space. He got there by way of
`a one-year fellowship that blossomed into a permanent position. "I handled
`earthquake research, global warming, ozone depletion, the Antarctic, biotech
`and computers," he says. "By Congressional standards that made me a spe-
`cialist." In 1992 voters gave Gore a promotion to the White House; Nelson
`followed. Today he handles information technology, information policy and
`telecommunications policy for the White House Office of Science and Technol-
`ogy Policy, where he reports to Presidential Science Advisor Jack Gibbons.
`
`1 Chaum is the founder and president of DigiCash, a company pioneering the
`anonymous electronic payment system profiled in Release 1.0, 1-95.
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`About electronic commerce, digital cash and the like, he rejects assertions
`the government has ignored the issue: "We're working on all the underpin-
`nings: digital signature standards, encryption, cheap affordable infrastruc-
`ture, intellectual property rights. We have to lay the groundwork first!"
`He has top-level security clearance and is frequently the government's point
`man on the Clipper chip. Precisely because you can engage him in a reason-
`able discussion, he tends to get more of the grief about it than less flexi-
`ble government spokespeople. "When you talk about electronic commerce,
`don't forget to mention money-laundering, terrorists, drug dealers," he
`reminds us. "YOu've got to worry about these things, too." Personally, in-
`tellectually, he is also intrigued with the notion of electronic commerce
`without money -- "where what you're trading is prestige and fame." (See
`Release 1.0, 3-93 and 12-94.)
`You could argue that most non-government forms of currency will lack credi-
`bility -- although there are certainly many governments around the world
`with poorer credit ratings, than, say, GE Credit or even AT&T. Anyone ex-
`tending credit to a friend is de facto creating liquidity (though not usual-
`ly currency). Once again, the local-global world calls into question all
`the established practices born in a world of physical constraints. Why
`should Russians use the ruble for electronic commerce, when dollars or Magi-
`Cash (for example) are as easy to manipulate -- and MagiCash may be easier
`to hide?
`What is the government in fact thinking about these issues? Would it like
`to put transaction amount limits on electronic cash? Or create a kind of
`ClipperCash system that allows anonymous transactions with a back-door for
`law enforcement? Will anonymous cash be worth anything without an approving
`legal system to enforce contracts made with such "currency"? "Sorry, you
`paid for it with MagiCash; you can't force me to repair it!"
`
`JIM MANZI, LOTUS: THE NEW FEDERALISM
`Jim Manzi is one of the few ceos in this business to last more than one gen-
`eration. That doesn't mean he can relax; it just means he has to solve new
`problems. He has moved the company onwards from dependence on 1-2-3 to a
`new, still bottom-light foundation on Lotus Notes. His challenge now is to
`get the world papered over with Notes before anyone else can grab the space.
`To do so, he has shifted from the high-end marketing approach of a couple of
`years ago to a more mass-market strategy. He's also forging alliances with
`communication platform vendors such as AT&T: You can now buy Notes as a
`service if you don't want it as a product.
`Manzi hasn't yet survived the second generation -- but at least he's still
`in the game. He's often criticized by self-styled insiders for lacking
`technical vision, but his strength is business vision. More than any of his
`competitors -- and well before them! -- he understood the power of communi-
`cations that could be made possible by Notes. That is not point-to-point
`communications, nor broadcasting, but a web, where each point is connected
`two-way to each other point. The intervening applications incorporate the
`business rules and policies of the company; the content they distribute is
`the current, continually updated specifics of customer and competitor ac-
`tivities, internal memos, follow-up reports, pricing plans and the like.
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`OPEN COMMERCE
`Everyone knows about flatter organizations, virtual corporations,
`telecommuting and the like. But how does the new age play out in
`texture as opposed to structure?
`The short answer is that companies will -- must -- become more
`visible. More of what any company sells will comprise information --
`whether it's plain data, news and analysis, technical support, con-
`sulting services, design services, interactive entertainment or com-
`petitive intelligence. Some people will sell information-rich prod-
`ucts; others in the chain will add information-based value.
`Of course, there will be contracts between supplier and customer, but
`in a knowledge-based world the quality of those relationships will
`matter more than the contractual conditions (as in a marriage).
`Indeed, the best cement for a virtual corporation is a two-way flow
`of information -- or visibility. Companies will try to find partners
`not by offering discounts but by sharing wisdom and information about
`themselves. In order to make their wisdom credible, they will have
`to be self-revealing.
`Moreover, whether or not a company itself chooses to be visible, it
`will be. Companies can't hide. And the image they project -- on 'a
`Web home page or elsewhere -- will and should be true. Take the
`model of Reebok (described in the section on Adam Curry, page 20).
`Dun & Bradstreet reports and similar information sources aren't the
`only reason companies can't hide. Employees will be visible to out-
`siders...and they won't stay if they aren't allowed to be. It's not
`just outsiders peering in; it's employees out in the electronic world
`receiving as well as giving. As physical and intellectual commodi-
`ties lose their value, interactions with the outside world will be
`what a firm sells.
`Furthermore, partners will influence and feel part of the decisions
`their partners make, even though companies will not necessarily allow
`outsiders into the formal decision-making process per se. By being
`not just transparent but interacting two-way, such companies will in
`fact make better decisions.
`More and more, companies will be judged by how they operate, not by
`the products they produce from an opaque monolith. People care: How
`do you treat your people? Do you pollute? Or (with somewhat more
`direct self-interest), can I trust your employees not to reveal con-
`fidential data? Can I trust your employees' judgment when they eval-
`uate my medical records, teach my children, fix my car, fly the plane
`I ride in? What is their drug-testing policy? Why is my plane late?
`People want to buy information-based services and products from
`visible companies that operate as partners. They do not want com-
`modity products from black boxes.
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`Manzi will talk about what he calls "the new federalism." A key notion, he
`points out, is subsidiarity, and the fundamental truth that smaller units
`are more responsive and adaptive than larger ones. All this is made pos-
`sible by networks, since otherwise you need central control to keep order.
`(It becomes even more complicated when these networks operate across legal
`boundaries.) In the end, information is a stronger but more adaptive glue
`than legal contracts. The tough questions come when both are operating in
`parallel but not necessarily in synch.
`
`GERHARD SCHULMEYER, SIEMENS NIXDORF: FOREIGN BODY
`Gerhard Schulmeyer was born and raised in Germany. He rose through the
`ranks at Braun in Germany for 10 years, and in 1974 moved to its newly ac-
`quired subsidiary Gillette in Boston for a year before returning to Europe
`(Austria, still with Braun). Evidently he liked the US, because in 1980 he
`returned to run Motorola's automotive and industrial electronics group. In
`1986 he became evp and a deputy to the ceo, responsible for European busi-
`ness. In order to avoid returning to Europe, he joined the US office of
`ABB, the Swedish-Swiss multinational that keeps getting written up in busi-
`ness journals for its lean headquarters and its ability to operate success-
`fully all over the world with strong local autonomy. He is especially proud
`of having run the all-Americas activity of ABB while also serving as a mem-
`ber of the worldwide ABB board based in Zurich.
`That worked out fine until he got an offer he couldn't refuse: to return to
`Germany to run Siemens Nixdorf, the $7.5-billion computer subsidiary of
`Germany's leading industrial giant, Siemens. The idea wasn't simply to run
`it, of course, but to transform it -- and to turn its diminishing losses
`into profits.
`Siemens Nixdorf is the result of the 1990 merger between mainframe maker
`Siemens and Nixdorf, a mini-maker probably closest in character to Data Gen-
`eral among US vendors. Siemens Nixdorf is tremendously powerful locally --
`in Germany -- with about 14 percent market share of the overall IT business,
`but it has trouble gaining share in any other country. Two-thirds of its
`revenues come from Germany; Schulmeyer's goal is to halve that -- or to dou-
`ble the other percentages to one-third of revenues from the rest of Europe
`and one-third from the rest of the world.
`Basically, the company suffers from many of the same ills that beset IBM:
`Too much success has made it unresponsive to the changing marketplace out-
`side. The acquisition of Nixdorf was a smart technical move; management
`noticed the advent of the minicomputer, but the two cultures clashed. Sie-
`mens now has a substantial pc business, but it sells those pcs mostly to its
`traditional clientele.
`Perhaps Siemens Nixdorf's biggest problem is its extremely profitable parent
`company, Siemens, which is a world leader in everything from engines and
`power-plant turbines to medical equipment and telecommunications gear. This
`has allowed Siemens Nixdorf to avoid the stock-market discipline that final-
`ly affected IBM. When Schulmeyer arrived, he found a headquarters staff of
`1400 that he has trimmed -- or rather, that trimmed itself at his suggestion
`-- down to about 400 currently.
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`ut as Schulmeyer understands, the issue is not numbers but culture. One of
`his more clever tactics was the following: He gathered 75 top managers and
`300 "opinion leaders" (up-and-coming staff and junior managers) and asked
`them to come up with 60 tangible projects that could be implemented within
`three months (that is, just about now). The tasks ranged from reducing the
`time to process an invoice from one month to one week, to getting all top
`managers onto e-mail, to a marketing campaign. Then he asked juniors to
`form teams and to find senior sponsors. Some seniors were sought out;
`others went to a team and offered their support.
`"The radical shift is that it was a complete sharing," says Mark Maletz, a
`cultural-change specialist Schulmeyer brought in who earlier worked his
`magic at places such as American Airlines and Xerox. Rather than being as-
`signed, both sides had to find each other.
`How does one become an opinion leader at SNI? Basically, all you have to do
`is volunteer, and post something about the culture change and what you'd
`like to do. There's a database and people who turn it around and send it to
`people who might be interested. Some people in the company who are technol-
`ogists have volunteered to develop a system to do this. Of course, they
`might also choose Notes, in a complete rejection of the NIH spirit.
`Schulmeyer's task is to break the company's strong local culture -- a com-
`bination of German hierarchy and Siemens' own unique smugness born of long
`years of success. He has a challenge -- and a five-year commitment from
`Siemens' board. Naturally enough, the rest of the tight-knit German busi-
`ness community is watching with interest -- and perhaps some horror. These
`are people who are probably both envious, and not necessarily eager to see
`such a blunt approach succeed.
`
`PANEL: LOCAL <--> GLOBAL ENTERPRISES
`Manzi's company sells what Schulmeyer's company needs: a tool to foster com-
`munication among all levels of a company, and out into the rest of the
`world. Yes, there's a vision of the world that says that most professional
`employees will be journeymen, willing to work for the highest bidder on the
`most interesting job. But there's something in people that makes them like
`to join communities. We believe that the most successful companies will
`rely on group as well as individual creativity, that teamwork will still
`matter. In the world of virtual corporations, how do companies create a
`community that is real -- that keeps people together, that lets them learn
`from each other and apply that learning together? It's great to form a vir-
`tual bond with your customers and suppliers, but how do you form a virtual
`boundary to keep your best people inside? Or should you not even try?
`How much of the success of Notes is due to the spirit in which it is imple-
`mented? How can Lotus control that? If you believe that software prices
`are going to continue to fall, then shouldn't Lotus get into the consulting
`business? And shouldn't Siemens focus more on account control and leave pcs
`and such to Intel?
`Many companies in the US -- and in the audience -- generate more than 50
`percent of their revenues outside the US. Yet few of their ceos or market-
`ing people have much international experience -- with the notable exceptions
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`of Alex Mandl, Philippe Kahn, Eckhard Pfeiffer, Andy Grove (in his child-
`hood), Mike Spindler, Philippe Courtot, Eric Benhamou and Robb Wilmot.
`So far, American computer technology has sold well throughout the world --
`especially when it was made by local companies such as Siemens. But as the
`value-added in technology systems moves from hardware to systems software to
`tools and business applications, the cultural component becomes more impor-
`tant. It's easy enough to build a spreadsheet that handles local character
`sets and sorting sequences, but a little harder to build a word-processor
`that follows local hyphenation rules. It's even more difficult to localize,
`say, an accounting package or a sales-tracking system. What are the local
`rules for letter-writing? One country's gentle plea for payment may be an-
`other country's threat. One country's itemizable deduction may be another
`country's illegal bribe.
`As the software business becomes closer and closer to users -- cf. Microsoft
`Bob -- software localization will become more and more challenging. How
`much of Reed Elsevier's content does it translate -- and will that propor-
`tion have to increase as its markets become more global?
`On the consumer side, do customers eagerly adopt foreign stuff -- as the
`French government clearly is afraid French people do? It seems consumers
`may be more eager to try foreign culture than business people, who have a
`fixed way of doing things that has worked. Business leaders may have gotten
`to the top by following the rules or breaking them carefully.
`Furthermore, the problems of managing companies across cultures are great.
`The trick is to have a strong corporate culture -- and a common language --
`that can still accommodate a variety of national cultures.
`On a more practical side, there are legal issues: export license for en-
`cryption technology, differential taxation, use of offshore programming
`teams. Who pays the taxes when someone in Tokyo hires someone in India to
`write an application using a computer based in Barbados with tools down-
`loaded from Seattle for a client in Zurich?
`Neville Cusworth, Reed-Elsevier: Three-centered man
`Neville Cusworth read law at Oxford, but he sees the world as a businessman.
`He runs Reed Elsevier's legal division, about a tenth of its worldwide rev-
`enues (of about $4 billion last year). That includes British legal pub-
`lisher Butterworths, which acts as overseas agent for the newly acquired
`Lexis-Nexis and its subsidiaries, including Forum presenter Folio Corpora-
`tion (see page 38), US legal publisher Michie, and Jurisoft. It also in-
`cludes French legal publisher Editions de Juris-Classeur. In addition, Cus-
`worth is a member of the transition team for the Lexis-Nexis merger, which
`fits closely into his part of the overall Reed Elsevier business. He is
`based in London and currently also in Dayton, Ohio -- and soon, he notes, in
`Amsterdam, since he will join the board of Elsevier in April. He began his
`career at Butterworths in 1967.
`Reed Elsevier is a giant experiment in cross-national operations. It's no
`accident that it's Dutch and English -- both nationalities fairly open to
`outside influence. Reed Elsevier's mission with the acquisition of Lexis-
`Nexis is both expansion in the US market and absorption of the Lexis-Nexis
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`technology expertise into Reed Elsevier's operations worldwide. The compa-
`ny's stronghold is in Western Europe, with legal, medical scientific and
`business publications, but it also publishes in Polish, Malaysian Bahasa,
`Afrikaans, and in Spanish in Puerto Rico.
`"When you ask where does the head of international sit," Cusworth says,
`referring to the Forum agenda, "it doesn't make sense for us because we're
`all international." The company language is English, he notes, but that
`doesn't make it mono-cultural. Even among the native English speakers, most
`people speak another language and can roughly understand one or two others.
`Cusworth himself was born in Germany and spent considerable time there; he
`also speaks French and understands some Spanish. "If we hadn't acquired
`Lexis-Nexis, Dutch would have been next on my agenda."
`Cusworth headed the company's technology task force, guiding the integration
`of the various technologies and expertise Reed Elsevier now controls. In
`addition to its new US holdings, it owns Reed Technology and Information
`Services, a publishing-oriented systems integrator with particular CD ROM
`expertise, and holds a minority share in Compliance Ltd., a smaller company
`that started out doing securities filings and now specializes in designing
`CD ROM front-ends. That doesn't mean Cusworth is designing any technology,
`but he's involved in helping to cross-fertilize the company's various divi-
`sions. For example, he doesn't yet use e-mail, although his secretary al-
`ready does. "But now that I'm three-centered, I will."
`
`MONDAY DINNER - STEVE HAYDEN
`Dr. StrangeAd: Or, how I stopped worrying and learned to love IBM
`Steve Hayden is in charge of the entire IBM account at Ogilvy & Mather. In-
`terestingly, this is not just the pc business, but the whole company. That
`is part of the appeal; IBM isn't selling just products, but the company that
`provides them. Products now consist of design, support, upgrades...all the
`stuff you don't get in the box.
`I first met Steve when he was still a slightly insecure creative guy at
`Chiat/Day, writing copy for the Apple account. The ads were like Hayden:
`funny, but with an edge. They were written about -- and to appeal to -- the
`kind of rising exec who played basketball on his lunch hour and then worked
`late into the night. Who wouldn't want to be like that? Hopeful but not
`naive, aggressive but not nasty -- someone who wants to get ahead and be-
`lieves you get ahead on merit. Hayden is best known for conceiving the
`famous 1984 Macintosh ad (which still gives me goose bumps), and for in-
`sisting that it run when even the client had doubts. Later, of course, he
`produced the lemmings ad, which he calls proof of Karmic balance, and which
`implicitly portrayed IBM customers (not IBM itself) as lemmings.
`What made Hayden, who later moved to BBDO and brought the Apple business
`there with him, switch agency and client?
`"IBM now is a little like New York after it went bankrupt; it's still a
`great city," says Hayden, who gladly moved with his novelist wife Ann Taylor
`from Los Angeles to New York. "It still has all that cultural wealth, all
`that intellectual capital. The city got greater after it was humiliated a
`bit. The old image and the old model can't do it all."
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`"Gerstner's right," he continues. "If we split it up into fragments, what
`would be lef