jeff gothelf - hacking your tractor with black market code: a sense & respond case study
TRANSCRIPT
EPISODE II: THE FARM AWAKENSSENSE & RESPOND:
EPISODE II: THE FARM AWAKENSSENSE & RESPOND:
EPISODE II: THE FARM AWAKENSSENSE & RESPOND:
A STORY IN 6 ACTS WITHA HEROAN EMPIREAN UNLIKELY ALLY
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WE BELIEVE: MEETING THIS USER NEED WITH THESE FEATURES WILL CREATE THIS BUSINESS OUTCOME
WE’LL KNOW WE’RE RIGHT WHEN WE SEE THIS EVIDENCE
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SENSEANDRESPOND.CO
ACT 1: THE USER NEED
OR… THE BRUTAL ECONOMICS OF WHEAT
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THE MARKET DOES NOT CONSIDER HOW MUCH IT COSTS TO PRODUCE
WHEAT WHEN DETERMINING THE PRICE.
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ALL THE MARKET CARES ABOUT IS HOW MUCH WHEAT IS NEEDED TO
MEET CONSUMER DEMAND, AND HOW MUCH THE CONSUMER WILL PAY.
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AT ANY GIVEN MOMENT, A FARMER CAN EASILY HAVE
MILLIONS OF DOLLARS IN SEED AND LABOR IN THE GROUND.
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A WHEAT FARMER IN GRANT COUNTY, OKLAHOMA, HAS A WHEAT TARGET
YIELD OF 50 BUSHELS PER ACRE.
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COST PER ACRE $274
BUSHELS PER ACRE 50
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COST PER ACRE $274
BREAKEVEN PRICE: $5.48
BUSHELS PER ACRE 50
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SENSEANDRESPOND.CO
COST PER ACRE $274
BREAKEVEN PRICE: $5.48
MARKET PRICE: $5.59
BUSHELS PER ACRE 50
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COST PER ACRE $274 BUSHELS PER ACRE 50
BREAKEVEN PRICE: $5.48MARKET PRICE: $5.59
MARGIN: $0.11
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PROFIT PER BUSHEL: $.11PROFIT PER ACRE: $5.50
AVG FARM SIZE (ACRES): 438
TOTAL PROFIT: $2409
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TOTAL PROFIT FROM WHEAT HARVEST: $2409
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“IT’S PLANTING SEASON. LET’S TALK AFTER.” - STEVE PITSTICK, FARMER
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SENSEANDRESPOND.CO
USER NEEDS:LOWER COSTS
MORE EFFICIENCY
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SENSEANDRESPOND.CO
USER NEEDS:LOWER COSTS
MORE EFFICIENCYOBEY MOTHER NATURE’S SCHEDULE
@JSEIDEN @JBOOGIE
SENSEANDRESPOND.CO
WE BELIEVE: MEETING THIS USER NEED WITH THESE FEATURES WILL CREATE THIS BUSINESS OUTCOME
WE’LL KNOW WE’RE RIGHT WHEN WE SEE THIS EVIDENCE
@JSEIDEN @JBOOGIE
SENSEANDRESPOND.CO
WE BELIEVE: MEETING COST, EFFICIENCY & TIMELINESS CONCERNS WITH THESE FEATURES WILL CREATE THIS BUSINESS OUTCOME
WE’LL KNOW WE’RE RIGHT WHEN WE SEE THIS EVIDENCE
@JSEIDEN @JBOOGIE
SENSEANDRESPOND.CO
ACT 2: THE BUSINESS OUTCOME
OR… MEANWHILE, AT HEADQUARTERS
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THE HARLEY-DAVIDSON OF FARM EQUIPMENT
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WORD OF CAUTION: DON’T SCROLL ANY FURTHER DOWN THIS SEARCH RESULTS PAGE…
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JOHN DEERE DOES PRODUCT DISCOVERY
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WHAT BUSINESS PROBLEM DOES JOHN DEERE FACE?
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THE MOVE FROM FAMILY FARMS TO LEASED
OPERATIONS
(BRUTAL ECONOMICS CONTINUED…)
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46% OF LAND FARMED IN THE US IS RENTED OUT BY LAND OWNERS TO AN
ACTUAL FARMER
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BUT TO GENERATE MEANINGFUL PROFITS YOU NEED A BIG OPERATION
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TECHNOLOGY HELPS FARM LARGER AREAS WITH LESS LABOR
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FEWER FARMERS = FEWER TRACTOR SALES
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SENSEANDRESPOND.CO
TIME TO RECONSIDER YOUR BUSINESS MODEL…
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SENSEANDRESPOND.CO
BUSINESS NEEDS:LESS RELIANCE ON EQUIPMENT SALES
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SENSEANDRESPOND.CO
BUSINESS NEEDS:LESS RELIANCE ON EQUIPMENT SALES
PROTECT MARGINS
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SENSEANDRESPOND.CO
BUSINESS NEEDS:LESS RELIANCE ON EQUIPMENT SALES
PROTECT MARGINSCUSTOMER LOYALTY
@JSEIDEN @JBOOGIE
SENSEANDRESPOND.CO
WE BELIEVE: MEETING COST, EFFICIENCY & TIMELINESS CONCERNS
WITH THESE FEATURES
WILL CREATE THIS BUSINESS OUTCOME
WE’LL KNOW WE’RE RIGHT WHEN WE SEE THIS EVIDENCE
@JSEIDEN @JBOOGIE
SENSEANDRESPOND.CO
WE BELIEVE: MEETING COST, EFFICIENCY & TIMELINESS CONCERNS
WITH THESE FEATURES
WILL CREATE LESS RELIANCE ON SALES, HIGHER MARGINS, MAINTAIN LOYALTY
WE’LL KNOW WE’RE RIGHT WHEN WE SEE THIS EVIDENCE
@JSEIDEN @JBOOGIE
SENSEANDRESPOND.CO
ACT 3: THE PROMISE,
AKA THE OFFER YOU CAN’T REFUSE
@JSEIDEN @JBOOGIE
SENSEANDRESPOND.CO
WE BELIEVE: MEETING COST, EFFICIENCY & TIMELINESS CONCERNS
WITH THESE FEATURES
WILL CREATE LESS RELIANCE ON SALES, HIGHER MARGINS, MAINTAIN LOYALTY
WE’LL KNOW WE’RE RIGHT WHEN WE SEE THIS EVIDENCE
@JSEIDEN @JBOOGIE
SENSEANDRESPOND.CO 1942-1963
“Condition of driver at days end: Caked with dust from dermis to glo!is, tickling sensation in seat of pants. Frozen, dehydrated depending on season. Blank stare.”
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THE SEXY NEW MACHINES…
SEXY NEW MACHINE VIDEO -THIS INTRODUCES THE INTEGRATED NATURE OF THE SOFTWARE AND THE HARDWARE
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SENSEANDRESPOND.CO
THE SEXY NEW MACHINES…
SEXY NEW MACHINE VIDEO -THIS INTRODUCES THE INTEGRATED NATURE OF THE SOFTWARE AND THE HARDWARE
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SENSEANDRESPOND.CO
“I CAN FARM 2500 ACRES TODAY EASIER THAN 500 ACRES 40 YEARS AGO.”
- STEVE PITSTICK, FARMER
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BUT THERE’S ONE CATCH: THE LICENSE AGREEMENT
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“AN IMPLIED LICENSE FOR THE LIFE OF THE VEHICLE
TO OPERATE THE VEHICLE.” JOHN DEERE FILING, US COPYRIGHT OFFICE
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SENSEANDRESPOND.CO
PRODUCT FEATURES:MORE EFFICIENTMORE CAPABLE
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SENSEANDRESPOND.CO
PRODUCT FEATURES:MORE EFFICIENTMORE CAPABLE
INCREASE SERVICES REVENUE
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SENSEANDRESPOND.CO
PRODUCT FEATURES:MORE EFFICIENTMORE CAPABLE
INCREASE SERVICES REVENUELICENSE AGREEMENT
@JSEIDEN @JBOOGIE
SENSEANDRESPOND.CO
WE BELIEVE: MEETING COST, EFFICIENCY & TIMELINESS CONCERNS
WITH GREATER EFFICIENCY, CAPABILITY & A LICENSE AGREEMENT
WILL CREATE LESS RELIANCE ON SALES, HIGHER MARGINS, MAINTAIN LOYALTY
WE’LL KNOW WE’RE RIGHT WHEN WE SEE THIS EVIDENCE
@JSEIDEN @JBOOGIE
SENSEANDRESPOND.CO
ACT 4: IN WHICH OUR HERO
ENCOUNTERS A PROBLEM
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THE WHEAT IS RIPE, TIME TO HARVEST
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“AN IMPLIED LICENSE FOR THE LIFE OF THE VEHICLE
TO OPERATE THE VEHICLE.” JOHN DEERE FILING, US COPYRIGHT OFFICE
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SENSEANDRESPOND.CO
“BECAUSE MODIFYING MODERN OBJECTS REQUIRES ACCESS TO INFORMATION: CODE, SERVICE MANUALS, ERROR CODES, AND
DIAGNOSTIC TOOLS.”
https://www.wired.com/2013/03/you-dont-own-your-cellphones-or-your-cars/
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“IF YOU BOUGHT SOMETHING AND FIGURED OUT HOW TO GET
EXTRA VALUE OUT OF IT THAT WAS YOURS TO KEEP.”
- CORY DOCTOROW
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SENSEANDRESPOND.CO
SOLVING USER NEEDS? OR
EXPLOITING USER NEEDS?
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INTERLUDE: A WORD FROM
YOUR NARRATOR
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HOW DO WE KNOW WHAT WORKS?
OR… THE PROBLEM WITH PEOPLE
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THERE’S A GOOD CHANCE THAT WE’RE WRONG.
@JBOOGIE & @JSEIDEN SENSEANDRESPOND.CO
SENSE & RESPOND
Ship
SenseRespondRespond
@JSEIDEN @JBOOGIE
SENSEANDRESPOND.CO
WE BELIEVE: MEETING THIS USER NEED WITH THESE FEATURES WILL CREATE THIS BUSINESS OUTCOME
WE’LL KNOW WE’RE RIGHT WHEN WE SEE THIS EVIDENCE
@JSEIDEN @JBOOGIE
SENSEANDRESPOND.CO
WE BELIEVE: MEETING COST, EFFICIENCY & TIMELINESS CONCERNS
WITH GREATER EFFICIENCY, CAPABILITY & A LICENSE AGREEMENT
WILL CREATE LESS RELIANCE ON SALES, HIGHER MARGINS, MAINTAIN LOYALTY
WE’LL KNOW WE’RE RIGHT WHEN WE SEE THIS EVIDENCE
@JSEIDEN @JBOOGIE
SENSEANDRESPOND.CO
ACT 5: EVIDENCE
OR…OUR HERO FINDS AN UNLIKELY ALLY
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WHEN YOU ENFORCE BAD POLICY,
PEOPLE WILL WORK AROUND THAT POLICY.
@JSEIDEN @JBOOGIE
SENSEANDRESPOND.CO
WHEN YOU ENFORCE BAD POLICY,
PEOPLE WILL WORK AROUND THAT POLICY.
@JSEIDEN @JBOOGIE
SENSEANDRESPOND.CO
WE BELIEVE: MEETING COST, EFFICIENCY & TIMELINESS CONCERNS
WITH GREATER EFFICIENCY, CAPABILITY & A LICENSE AGREEMENT
WILL CREATE LESS RELIANCE ON SALES, HIGHER MARGINS, MAINTAIN LOYALTY
WE’LL KNOW WE’RE RIGHT WHEN WE SEE FARMERS DOWNLOADING CRACKED UKRAINIAN SOFTWARE???
@JSEIDEN @JBOOGIE
SENSEANDRESPOND.CO
THE LEGAL STRUCTURES IN USE ARE ILL-SUITED TO CURRENT REALITY
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SENSEANDRESPOND.CO
WILL YOU USE THEM TO SERVE CUSTOMERS?
OR TO EXPLOIT THEM?
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SENSEANDRESPOND.CO
TECHNOLOGY CAN NOT GET AHEAD OF CULTURE
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SENSEANDRESPOND.CO
WHEN YOU ENFORCE BAD POLICY,
PEOPLE WILL WORK AROUND THAT POLICY.
@JBOOGIE & @JSEIDEN SENSEANDRESPOND.CO
1. YOU ARE IN THE SOFTWARE BUSINESS
@JBOOGIE & @JSEIDEN SENSEANDRESPOND.CO
1. YOU ARE IN THE SOFTWARE BUSINESS2. SOFTWARE UNLOCKS NEW BUSINESS MODELS
@JBOOGIE & @JSEIDEN SENSEANDRESPOND.CO
1. YOU ARE IN THE SOFTWARE BUSINESS2. SOFTWARE UNLOCKS NEW BUSINESS MODELS3. SOFTWARE ENFORCES POLICY
@JBOOGIE & @JSEIDEN SENSEANDRESPOND.CO
1. YOU ARE IN THE SOFTWARE BUSINESS2. SOFTWARE UNLOCKS NEW BUSINESS MODELS3. SOFTWARE ENFORCES POLICY 4. CULTURE TRUMPS POLICY
@JBOOGIE & @JSEIDEN SENSEANDRESPOND.CO
1. YOU ARE IN THE SOFTWARE BUSINESS2. SOFTWARE UNLOCKS NEW BUSINESS MODELS3. SOFTWARE ENFORCES POLICY 4. CULTURE TRUMPS POLICY5. FEEDBACK LOOPS REVEAL CULTURE
@JBOOGIE & @JSEIDEN SENSEANDRESPOND.CO
1. YOU ARE IN THE SOFTWARE BUSINESS2. SOFTWARE UNLOCKS NEW BUSINESS MODELS3. SOFTWARE ENFORCES POLICY 4. CULTURE TRUMPS POLICY5. FEEDBACK LOOPS REVEAL CULTURE6. FRAME SUCCESS IN USER-CENTRIC TERMS
@JBOOGIE & @JSEIDEN SENSEANDRESPOND.CO
1. YOU ARE IN THE SOFTWARE BUSINESS2. SOFTWARE UNLOCKS NEW BUSINESS MODELS3. SOFTWARE ENFORCES POLICY 4. CULTURE TRUMPS POLICY5. FEEDBACK LOOPS REVEAL CULTURE6. FRAME SUCCESS IN USER-CENTRIC TERMS
@JBOOGIE & @JSEIDEN SENSEANDRESPOND.CO
THANK YOU!JEFF GOTHELF / @JBOOGIE / [email protected]
SENSEANDRESPOND.CO