dachis sxsw 2013 03 - full zappos dtp(1)
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ZAPPOS.COMDELIVERING HAPPINESSDOWNTOWN PROJECT
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Downtown Project
CollisionsCommunityCo-Learning
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Slide 3
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Slide 4
A Little About Me (Tony)
• 1994-1995: Pizza business in college
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Slide 5
A Little About Me (Tony)
• 1994-1995: Pizza business in college
• 1996-1998: LinkExchange (online advertising)Sold to Microsoft for $265 million
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Slide 6
A Little About Me (Tony)
• 1994-1995: Pizza business in college
• 1996-1998: LinkExchange (online advertising)Sold to Microsoft for $265 million
• 1999: Venture Frogs (investment fund) - Invested in Zappos.com, Inc.
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Slide 7
A Little About Me (Tony)
• 1994-1995: Pizza business in college
• 1996-1998: LinkExchange (online advertising)Sold to Microsoft for $265 million
• 1999: Venture Frogs (investment fund) - Invested in Zappos.com, Inc.
• 1999-Today: Zappos.com, Inc.
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Slide 8
A Little About Me (Tony)
• 1994-1995: Pizza business in college
• 1996-1998: LinkExchange (online advertising)Sold to Microsoft for $265 million
• 1999: Venture Frogs (investment fund) - Invested in Zappos.com, Inc.
• 1999-Today: Zappos.com, Inc.
• 2009: Amazon acquires Zappos for $1.2 billion
• 2010: NYT bestseller Delivering Happiness published
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Slide 9
The Power of WOW
‘01 ‘02 ‘06‘03 ‘04 ‘05 ‘07‘00 ‘08
Gro
ss S
ale
s $M
M
$1,000
800
600
400
200
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Slide 10
Customer Experience What do customers expect?
What do customers actually experience?
What emotions do customers feel?
What stories do they tell their friends?
How can culture create more stories and memories?
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Slide 11
the #1 priority
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Slide 12
the #1 priorityCULTURE
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Slide 13
the #1 priorityCULTURE
4 weeks of training
Culture book
$4000 offer
Hiring for culture
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Slide 14
CULTURE“Committable Core Values”
Don’t make your core values just a meaningless plaque on the wall…
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Slide 15
Example: Core Values
1. Deliver WOW Through Service2. Embrace and Drive Change3. Create Fun and a Little Weirdness4. Be Adventurous, Creative, and Open-Minded5. Pursue Growth and Learning6. Build Open and Honest Relationships With Communication7. Build a Positive Team and Family Spirit8. Do More with Less9. Be Passionate and Determined10. Be Humble
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Slide 16
Clothing, Customer Service, Culture
Customer Service
Clothing
Culture
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Slide 17
Clothing
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Slide 18
Customer Service
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Slide 19
Culture
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Slide 20
Clothing, Customer Service, Culture
Customer Service
Clothing
Culture
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Slide 21
Delivering Happiness(customers and employees)
“People will forget what you said.People will forget what you did.
But people will never forget how you made them feel.”
-Maya Angelou
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Slide 22
Building Great
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Slide 23
CULTURE“Committable Core Values”
Don’t make your core values just a meaningless plaque on the wall…
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Slide 24
VISION
“Whatever you’re thinking, think bigger.”
Does the vision have meaning?
Chase the vision, not the money…
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Slide 25
VISION
“Don’t chase the paper, chase the dream.”
Sean Combs aka “Puff Daddy” to rapperBiggie Smalls aka “Notorious B.I.G.”
in Notorious
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Slide 26
Evolving vision and brand at Zappos.com
1999 Selection
2003 Customer Service
2005 Culture and core values as our platform
2007 Personal Emotional Connection
2009 Delivering Happiness
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Slide 27
Delivering Happiness - What’s Next?
Clothing
Customer Service
Company Culture
“a great brand is… ______”
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Slide 28
Zappos.com
http://media.glassdoor.com/m/7b/2c/00/f6/entrance-to-the-zappos-com-headquarter-office-in-henderson-nv-photo-by.jpg
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Slide 29
Las Vegas City Hall
http://brandonwiegand.com/wp-content/uploads/2010/11/Zappos-City-Hall.jpg
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Slide 30
Nike
http://standardatl.com/home/wp-content/uploads/2010/07/Nike_Campus_Tour_01.jpg
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Slide 31
http://static.panoramio.com/photos/original/400729.jpg
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Slide 32
Apple
http://www.techzek.com/wp-content/uploads/2011/09/apple_campus-1.jpg
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Slide 33
Doggy Day Care
http://www.adogsdayout.com/Pix_Overhead_View_ADDO_7-31-08.JPG
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Slide 34
NYU Campus
http://www.adogsdayout.com/Pix_Overhead_View_ADDO_7-31-08.JPG
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Slide 35
Downtown Vegas - Fremont East
http://www.eatinglv.com/wordpress/wp-content/gallery/odettedowntown/chinatown-038-large.jpg
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Slide 36
Downtown Vegas - Fremont East
http://www.lucyvegas.com/sites/default/files/griffin5.jpg
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Slide 37
Downtown Vegas - Fremont East
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Slide 38
Downtown Vegas - Fremont East
http://roadjournals.viamagazine.com/wp-content/uploads/2011/05/The-Beat-Coffeehouse.jpg
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Slide 39
Delivering Happiness - What’s Next?
Clothing
Customer Service
Company Culture
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Slide 40
Delivering Happiness - What’s Next?
Clothing
Customer Service
Company Culture
Community
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Slide 41
DOWNTOWN PROJECT - $350M
$ 50M – Small businesses
$ 50M – Tech Startups
$ 50M – Education, Arts, Culture
$200M – Real Estate
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Slide 42
DOWNTOWN PROJECT GOALS
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Slide 43
DOWNTOWN PROJECT GOALS
Live/Work/Play – Walking Distance
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Slide 44
DOWNTOWN PROJECT GOALS
Live/Work/Play – Walking Distance
The Most Community-Focused Large City in the World
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Slide 45
DOWNTOWN PROJECT GOALS
Live/Work/Play – Walking Distance
The Most Community-Focused Large City in the World
The Co-Learning and Co-working Capital of the World
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Slide 46
ROI vs. ROC
Instead of maximizing short-term ROI (Return On Investment)…
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Slide 47
ROI vs. ROC
Instead of maximizing short-term ROI (Return On Investment)…
We focus on maximizing long-term ROC
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Slide 48
ROI vs. ROC
Instead of maximizing short-term ROI (Return On Investment)…
We focus on maximizing long-term ROC (Return On Community)
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Slide 49
ROI vs. ROC and ROL
Instead of maximizing short-term ROI (Return On Investment)…
We focus on maximizing long-term ROC (Return On Community)and institutionalizing ROL
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Slide 50
ROI vs. ROC and ROL
Instead of maximizing short-term ROI (Return On Investment)…
We focus on maximizing long-term ROC (Return On Community)and institutionalizing ROL(Return On Luck) – Accelerating Serendipity
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Slide 51
THE BIG BET
Accelerating Collisions, Community, and Co-Learning
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Slide 52
THE BIG BET
Accelerating Collisions, Community, and Co-Learning
…will lead to…
Happiness, Luckiness,Innovation, and Productivity
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Slide 53
DOWNTOWN PROJECT - $350M
$ 50M – Small businesses
$ 50M – Tech Startups
$ 50M – Education, Arts, Culture
$200M – Real Estate
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Slide 54
$50M – Small Businesses
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Slide 55
$50M – Small Businesses
Criteria
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Slide 56
$50M – Small Businesses
Criteria Owner Operated - Passionate
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Slide 57
$50M – Small Businesses
Criteria Owner Operated - Passionate Helps Build Community
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Slide 58
$50M – Small Businesses
Criteria Owner Operated - Passionate Helps Build Community Execution Ability
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Slide 59
$50M – Small Businesses
Criteria Owner Operated - Passionate Helps Build Community Execution Ability Sustainable
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Slide 60
$50M – Small Businesses
Criteria Owner Operated - Passionate Helps Build Community Execution Ability Sustainable Unique or First or Best at
Something
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Slide 61
$50M – Small Businesses
Criteria Owner Operated - Passionate Helps Build Community Execution Ability Sustainable Unique or First or Best at
Something Story-worthy
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Slide 62
Natalie
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Slide 63
Natalie
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Slide 64
Natalie
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Slide 65
Natalie
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Slide 66
Natalie
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Slide 67
Natalie
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Slide 68
Check Cashing
http://www.vegaschatter.com/files/100501/checks_cashed..jpg
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Slide 69
Check Cashing
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Slide 70
Sarah
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Slide 71
Sarah
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Slide 72
Sarah
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Slide 73
Shipping Containers
http://images03.olx.com/ui/8/84/18/1280992807_108377618_4-cargo-containers-40ft-20-ft-For-Sale.jpg
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Slide 74
Shipping Container Park
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Slide 75
Shipping Container Park
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Slide 76
Shipping Container Park
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Slide 77
Shipping Container Park
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Slide 78
Bike Sharing
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Slide 79
$50M – Tech Startups
http://img-s.foursquare.com/pix/EN1ZIL0JC5HTCZYD0PW41SWQYJHURTD204ZFZYBFGPM3F5JS.jpg
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Slide 80
$50M – Tech Startups
http://timenerdworld.files.wordpress.com/2011/12/romotivefinal.jpg?w=576
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Slide 81
The City as a Startup
http://bostinno.com/wp-content/uploads/2011/10/startup-sign.png
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Slide 82
$50M – Startups
http://www.shebytes.com/wp-content/uploads/2011/12/venture-for-america-12-12-11.jpg
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Slide 83
$50M – Education, Arts, Culture
http://blogs.middlebury.edu/internship/files/2011/01/teach4America1.jpg
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Slide 84
$50M – Education, Arts, Culture
http://blogs.middlebury.edu/internship/files/2011/01/teach4America1.jpg
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Slide 85
$50M – Education, Arts, Culture
http://blogs.middlebury.edu/internship/files/2011/01/teach4America1.jpg
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Slide 86
$50M – Education, Arts, Culture
http://blogs.middlebury.edu/internship/files/2011/01/teach4America1.jpg
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Slide 87
$50M – Education, Arts, Culture
http://www.vegasnews.com/wp-content/uploads/3_2_12_burn_vegas_kabik-131-9-588.jpg
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Slide 88
$50M – Education, Arts, Culture
http://mikerossart.net/images/mikeross_enter.jpg
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Slide 89
$200M – Real Estate
http://ecx.images-amazon.com/images/I/510Ph%2BqMw-L.jpg
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Slide 90
WHEN CITIES DOUBLE IN SIZE…
Productivity and innovation per resident increases by 15%
(But not true for companies)
Accelerate serendipity -> Accelerate learning -> Accelerate productivity and innovation
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Slide 91
3 INGREDIENTS FOR SERENDIPITY
1. Residential density of 100 residents/acre
2. Street-level activity for residents to collide
3. Culture of openness, collaboration, creativity, and optimism
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Slide 92
HOW TO ACCELERATE LEARNING & INNOVATION
Maximize serendipitous interactions
Density in the office
Density in the city
Collisions vs. convenience
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Slide 93
Las Vegas City Hall
http://brandonwiegand.com/wp-content/uploads/2010/11/Zappos-City-Hall.jpg
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Slide 94
DIFFERENT GROUPS COLLIDING
1. 2000 Zappos employees2. 1000 Teach For America corp members
and alumni3. Tech Startup Community4. Small Business Community5. Art and Music Communities6. Other Passion Communities7. Local Residents
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Slide 95
LEARNING FROM ZAPPOS & COWORKING…
Culture is to a Company
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Slide 96
LEARNING FROM ZAPPOS & COWORKING…
Culture is to a Companyas
Community is to a City
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Slide 97
LEARNING FROM ZAPPOS & COWORKING…
Culture is to a Companyas
Community is to a CityValues
InnovationSerendipity
ParticipationUpward Mobility
Attracting Startups and the Creative Class
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Slide 98
Our Secret Weapon
http://static3.vipasuite.com/resources/dyn/images/459355w783h429s185b/_fn/ogden-3.jpg
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Slide 99
LEARNING FROM TED, SUMMIT SERIES, SXSW, BIF…
Curated ContentSerendipity
LearningConnectionsCommunity
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Slide 100
Downtown Vegas Every Day
Curated ContentSerendipity
LearningConnectionsCommunity
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Slide 101
Fremont St. & Las Vegas Blvd.
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Slide 102
Fremont St. & Las Vegas Blvd.
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Slide 103
Fremont St. & Las Vegas Blvd.
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Slide 104
Fremont St. & Las Vegas Blvd.
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Slide 105
Fremont St. & Las Vegas Blvd.
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Slide 106
Fremont St. & Las Vegas Blvd.
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Slide 107
Fremont St. & Las Vegas Blvd.
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Slide 108
Fremont St. & Las Vegas Blvd.
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Slide 109
Fremont St. & Las Vegas Blvd.
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Slide 110
Downtown Vegas Monthly Cadence
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Slide 111
Downtown Vegas Monthly Cadence
Week 1 – First Friday Week
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Slide 112
Downtown Vegas Monthly Cadence
Week 1 – First Friday WeekWeek 2 – Tech Week
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Slide 113
Downtown Vegas Monthly Cadence
Week 1 – First Friday WeekWeek 2 – Tech Week
Week 3 – Fashion Week
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Slide 114
Downtown Vegas Monthly Cadence
Week 1 – First Friday WeekWeek 2 – Tech Week
Week 3 – Fashion WeekWeek 4 – Catalyst Week
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Slide 115
Fashion Incubator – Stitch Factory
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Slide 116
Fashion Incubator – Stitch Factory
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Slide 117
Collisions, Community, Co-Learning
What is the value of a resident that is out and about in the community?
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Slide 118
Collisions, Community, Co-Learning
What is the value of a resident that is out and about in the community?
3-4 hours/day
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Slide 119
Collisions, Community, Co-Learning
What is the value of a resident that is out and about in the community?
3-4 hours/dayx 7 days/week
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Slide 120
Collisions, Community, Co-Learning
What is the value of a resident that is out and about in the community?
3-4 hours/dayx 7 days/week
x 40 weeks/year
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Slide 121
Collisions, Community, Co-Learning
What is the value of a resident that is out and about in the community?
3-4 hours/dayx 7 days/week
x 40 weeks/year= 1000 “collisionable” hours/year
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Slide 122
Jake – Flint and Tinder
http://images.fastcompany.com/upload/inline-Made-In-The-USA-Flint-And-Tinder-Undies-And-You-Will-Love-It-b.jpg
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Slide 123
Collisions, Community, Co-Learning
What is the value of a purposeful visitor that contributes to community?
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Slide 124
Collisions, Community, Co-Learning
What is the value of a purposeful visitor that contributes to community?
12 hours/day
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Slide 125
Collisions, Community, Co-Learning
What is the value of a purposeful visitor that contributes to community?
12 hours/dayx 7 days/week
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Slide 126
Collisions, Community, Co-Learning
What is the value of a purposeful visitor that contributes to community?
12 hours/dayx 7 days/week
x 12 weeks/year
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Slide 127
Collisions, Community, Co-Learning
What is the value of a purposeful visitor that contributes to community?
12 hours/dayx 7 days/week
x 12 weeks/year= 1000 “collisionable” hours/year
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Slide 128
Collisions, Community, Co-Learning
“Subscribe” toDowntown Vegas
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Slide 129
Collisions, Community, Co-Learning
1. 100 residents per acre
2. Street-level activity for residents to collide
3. Culture of openness, collaboration, creativity, and optimism
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Slide 130
Collisions, Community, Co-Learning
1. 100 residents per acre
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Slide 131
Collisions, Community, Co-Learning
1. 100,000
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Slide 132
Collisions, Community, Co-Learning
1. 100,000 “collisionable”
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Slide 133
Collisions, Community, Co-Learning
1. 100,000 “collisionable” community
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Slide 134
Collisions, Community, Co-Learning
1. 100,000 “collisionable” community hours
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Slide 135
Collisions, Community, Co-Learning
1. 100,000 “collisionable” community hours per
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Slide 136
Collisions, Community, Co-Learning
1. 100,000 “collisionable” community hours per acre
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Slide 137
Collisions, Community, Co-Learning
1. 100,000 “collisionable” community hours per acre per
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Slide 138
Collisions, Community, Co-Learning
1. 100,000 “collisionable” community hours per acre per year
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Slide 139
Collisions, Community, Co-Learning
1. 100,000 “collisionable” community hours per acre per year
2.3 collisionable hours per square foot
per year
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Slide 140
OUR BIG BET… 3 Guiding Principles
Accelerate:1.Collisions2.Community3.Co-Learning
And everything else will fall into place…(productivity, innovation, growth, happiness)
What will people say about downtown?
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Slide 141
“Downtown VegasWill Make You Smarter”
http://langintro.com/lv_dec_2010/pics/0950_emergency_arts_window.jpg
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Slide 142
ZAPPOS, DELIVERING HAPPINESS, DOWNTOWN PROJECT
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Slide 143
50% of Humans Live in Cities
http://ecx.images-amazon.com/images/I/510Ph%2BqMw-L.jpg
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Slide 144
75% Will Live In Cities in Our Lifetime
http://ecx.images-amazon.com/images/I/510Ph%2BqMw-L.jpg
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Slide 145
The 4-Minute Mile
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Slide 146
The 4-Minute Mile
http://en.wikipedia.org/wiki/File:Iffley_Road_Track,_Oxford_-_blue_plaque.JPG
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Slide 147
www.DowntownProject.com
http://langintro.com/lv_dec_2010/pics/0950_emergency_arts_window.jpg