Stop Selling Products, sell Projects

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Transcript

The next section is one of my favorites just because it's so out of the blue. It's just so different than what I've seen so far. This happened is actually true stories. I was talking to one of the senior executives in Phillips. Phillips is this Dutch company, which you probably know, in ninth Avenue started with with the lights. They went into consumer products, the toothbrush and the barbers and all these things.

And then the third kind of business they built is about medical devices and healthcare. Philips decided to transform, they're not growing, they were not growing and there was a lot of pressure, pressure from shareholders to change to grow faster. They decided to split the business in three. So they sold off lighting the lights and consumer and then they left the healthcare the medical devices. I had a meeting with somebody at The top of that company called Marcos, and he was telling me listen and Tanya, which transformed the project was excellent. We did it right.

But we're still not growing. We're not growing as we expected. And I said, so what are you going to do Marcos? And he said, Well, listen, as from next year, we're going to stop selling products. And I say, Come on, Marcus, are you kidding me? You've been selling products or hundred 25 years, and what are you going to be selling them?

And he said, more or less from next year, we're going to start selling projects. And I say, What? Can you explain? So he said this very simple. Antonia, we noticed that when we can sell five scanners to a hospital in a year, that's a good year and some lots of medical devices, but that's five products. What we see in Philips and what we want to do is go to the local authorities.

We know there's a need for a new hospital and we're going to say well, Philips can set apcom develop and build an osprey, but we can also run it. And we can put our products, of course that will work with other partners will create an ecosystem, but Philips will be on the lead. And instead of selling five products in one year, we're going to sell a project of 25 years. And I said, Wow, this is really disruptive. This is interrupting. So I took the concept into another project, a product product driven company, a company that sells products and Nike, for example, I look into Nike, what we do today, when we go to Nikes, we go and we pyre, buy a pair of sports shoes to go running.

But what if Nike would say we do the same? We're going to start selling projects, the shelf of Nike will look completely different. You go to a shop of Nike, and you see just projects, running the marathon of Boston, running the marathon of London. Going to Himalaya going to the mosque. So they will sell you products which are actually your dreams, your aspirations, and you will engage Nike to work with them for three years to help you achieve your dream which is running the marathon in New York. They will sell you the product.

They will sell you the shoes but they will put your personal trainer. They will give you nutrition facts and they will make sure that you're achieving your project and your dream. This is revolutionary.

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