CONTACTS 
0202 - IBM OS/2                                                                                                                                                           O-00000375 0101
020201 - Mr. Nick Centofonti; Vice President

SUBJECTS
SDS Marketing, Developing Leads, Industry Contacts
Trial Installations, Future of OS2
Making more money, Plans, options, analysis
Computers not used for management
Usage - Making more money, Credibility - No Faith
Usefulness is Not a Design Criteria
Usefull Technology Can be Used A Lot
Credibility Based on Source Rather than
Killer Application
Cost/Benefit of Better Communications
Fast Easy Earnings Alphabet Hard to Sell Look for Easy Diggings

1713 -
1713 -    ..
1714 - Summary/Objective
1715 -
171501 - Follow up ref SDS 18 0000.
171502 -
171503 - Received an article in OS2, ref OF 4 0000, that has an interview with
171504 - the president of IBM's PSP division, Lee Reiswig.
171506 -  ..
171507 - Lee discusses the future of OS2, ref OF 4 8466, which was considered
171508 - previously on 940121. ref SDS 12 0000
171510 -  ..
171511 - Sent Nick ref DIT 1 0000 to follow up request at ref SDS 18 0000.
171513 -  ..
171514 - It suggests he submit the information on SDS to Lee.  Included
171515 - explanation of how SDS reduces the impact of "Murphy's Law," developed
171516 - at ref SDS 19 line 226.
171517 -
171519 -  ..
1716 -
1717 -
1718 - Analysis
1719 -
171901 - "Killer" - Compelling Application Requires Significant Use
171902 - ----------------------------------------------------------
171903 - Lee Reiswig says OS2 needs a "compelling" (i.e., "Killer) application,
171904 - ref OF 4 6388, analysed on 940121. ref SDS 12 6301
171905 -
171906 - The key issue is "compelling."
171908 -  ..
171909 - What does this mean?
171911 -  ..
171912 - First and foremost it means there is a capability people can use every
171913 - day, all day long to improve the work and make money. That is the most
171914 - compelling attribute of a sale.
171915 -
171916 -       [On 941114 IBM reported SDS integrates solutions for enterprise
171917 -       wide support. ref SDS 24 5380
171919 -        ..
171920 -       [On 941114 proposed IBM and Welch develop SDS for Killer
171921 -       Application IBM needs. ref SDS 24 LV9I
171923 -        ..
171924 -       [On 951022 Intel and Microsoft need compelling application.
171925 -       ref SDS 28 3357
171927 -        ..
171928 -       [On 960121 investors worried Intel needs Killer application.
171929 -       ref SDS 29 5840
171931 -  ..
171932 - The next compelling attribute is who makes the thing.  If it is a
171933 - credible vendor, it will generate sales for awhile, until experience
171934 - shows it is just more shelfware, like Lotus SmartSuite, which is
171935 - described as a "...killer app." ref OF 4 7064.
171936 -
171937 -       [See report on drop in Lotus stock. ref SDS 20 0000]
171939 -        ..
171940 -       [On 950605 IBM bought LN because they had heard Lotus makes a
171941 -       good spreadsheets program, so they thought LN could produce
171942 -       knowledge management too. ref SDS 25 6006
171943 -
171945 -     ..
171946 -    Why is SmartSuite a "killer app"?
171947 -
171948 -    Because people are buying it.  Why?  Because Lotus is selling it.
171949 -    People want something that helps them make money, i.e. to perform
171950 -    their work more productively, and they believe that Lotus can do
171951 -    this, because Lotus makes a good spreadsheet.
171952 -
171953 -         SmartSuite has good programs, but they do not meet the POIMS
171954 -         criteria of working together smoothly on tasks managers
171955 -         perform, ref OF 2 8559.  It is like a car with a terrific
171956 -         engine, body, tires, radio, interior, but no drive shaft, that
171957 -         ties everything together.
171959 -        ..
171960 -       [On 951022 report on CNN that software sales are spawned by
171961 -       desire for better productivity, regardless of whether what is
171962 -       purchased improves productivity. ref SDS 28 3357.]
171964 -        ..
171965 -       [On 970617, article in Fortune on Microsoft NT cites Backoffice
171966 -       as a hot selling program solely because it is made by Microsoft.
171967 -       ref SDS 30 7401]
171968 -
171970 -     ..
171971 -    Called Ross on "Useful Technology for Managers
171972 -
171973 -    Followed up our discussion on 940315, ref SDS 17 1378, asked how
171974 -    much he uses Lotus SmartSuite, which he has had since March, per
171975 -    ref SDS 17.
171976 -
171977 -    Ross said he is not using it because his work is mainly talking to
171978 -    customers and colleagues, and there is nothing in SmartSuite,
171979 -    including Lotus Notes, that manages the knowledge and ideas he
171980 -    generates and needs to perform his work (per analysis on 940315,
171981 -    ref SDS 17 9558).  He is still trying to use Organizer, but finds
171982 -    it cannot keep up with his schedule.
171984 -  ..
171985 - The next attribute of compelling is whether a program is compatible
171986 - with Windows, which is a combined credibility and "ease of use" issue.
171987 - But if the application does not add to productivity, it is of no more
171988 - value than giving someone a red wagon, because it is easy to use and
171989 - is pretty, (see ...Automated Management in the 21st Century, ref OF 2
171990 - line 62).
171992 -  ..
171993 - If an application makes money for the User by improving the things
171994 - they do routinely (e.g. think, remember, communicate), they will be
171995 - "compelled" to pay for it.
171997 -  ..
171998 - Usefulness for management can be generally determined from habits of
171999 - successful people cited by Covey, reviewed on 921205. ref SDS 1 4080
172000 - More recently, usefulness of software for management requires support
172001 - for "analysis," called out by Drucker, reviewed on 911130, ref SDS 5
172002 - 7911, and for communication. ref SDS 5 6150
172003 -
172004 -
172006 -  ..
172007 - The easiest test to see if an application can make money for an end
172008 - User, is to find out how much time the COB, CEO, President, and other
172009 - executives of the company that makes and markets the product, spend
172010 - each day using the product they are selling to others, for
172011 - accomplishing tasks that are useful for managing.
172013 -  ..
172014 - On 940116 Killer Application needed to improve management
172015 - productivity. ref SDS 12 6301
172016 -
172017 -    An example of what software executives are using is at ref SDS 3
172018 -    line 83, interviewinig John Patrick, IBM VP for OS2 sales and
172019 -    marketing.
172020 -
172022 -     ..
172023 -    How much time does the president of Lotus use Lotus 123, Notes,
172024 -    Organizer, or any of its products?
172025 -
172026 -        [On 940629 asked IBM reps about programs Lou Gerstner and other
172027 -        managers use to manage IBM. ref SDS 21 6772
172029 -         ..
172030 -        [On 940909 report on E&Y exec using Lotus Notes twice a week,
172031 -        ref SDS 23 0550; Landauer's book on "Why Computers Don't
172032 -        Improve Productivity." ref SDS 26 1222
172034 -         ..
172035 -        [On 950927 meeting with Intel on need for "useful" technology
172036 -        to sustain demand for personal computers. ref SDS 27 4408 and
172037 -        ref SDS 27 6493
172039 -  ..
172040 - If they spend a lot of time using their product, and can demonstrate
172041 - how it makes them money, then such a product passes the test.  If not
172042 - it fails the test; the product probably doesn't make anyone much
172043 - money, and therefore is not a compelling product.  If it is enjoying
172044 - early sales, these will drop off. [see later report of drop in Lotus
172045 - earnings ref SDS 20 line 45 and CNN report, ref SDS 28 line 55.]
172046 -
172047 -    That is why high profile vendors issue the same product year after
172048 -    year, with a new name and a splash in the media that at last they
172049 -    have produced something of value to improve management. People need
172050 -    automated management and so believe high profile vendors will
172051 -    produce it. This is the only reason Smartsuite is a "killer app."
172052 -    Its lasting effect is to kill off credibility of a real solution.
172054 -  ..
172055 - SDS is used all day long everyday by the developer because it uniquely
172056 - improves the art of management, ref OF 2 line 22.  This is a compell-
172057 - ing product with staying power.  If IBM executives similarly learned
172058 - to use SDS, they could produce an excellent television commercial to
172059 - create the market for what SDS does:  i.e. make money. They could also
172060 - greatly increase their personal and organizational productivity.
172061 -
172062 -
172063 -
172064 -
1721 -

SUBJECTS
What Designs, Testing, Pilot Programs Under
Opportunity Dressed In Coveralls, Looks
Spreadsheets Wordprocessing Don't Improve
Automated Integration of Management Tasks
Cognition Linking Present to Past,
Wordprocessing Different from SDS
Critical Mass Management Practices Must Be
SDS Design is Unique

2710 -
271101 -  ..
271102 - Discovering a Compelling Application
271103 -
271104 - IBM needs to invest in training people to use SDS for 6 months or a
271105 - year to discover the theory of POIMS enables a new way of working
271106 - intelligently that improves management, productivity and earnings.
271107 - Experience on the ground is the only way to discover the next "Killer
271108 - Application," to meet IBM's goals for remaining competitive in the
271109 - personal computer market, per above. ref SDS 0 3001
271111 -  ..
271112 - Taking up SDS in the early stage of product development ensures IBM
271113 - will not fail to regain declining market share simply because...
271114 -
271115 -     Opportunity comes dressed in coveralls and looks like work!
271117 -  ..
271118 - The only "killer apps" developed in the past 5,000 years, since the
271119 - invention of writing, as shown on 930112, ref SDS 2 3443, are for
271120 - wordprocessing and spreadsheets, which do simple fundamentals.  They
271121 - are very powerful, but only impact a small part of daily work.
271122 -
271123 -       [On 040214 powerful cultural forces make confidentiality of
271124 -       intellectual property secure because good ideas for saving time
271125 -       and money must be forced down the throat of people who would
271126 -       rather walk through the valley of death than improve working on
271127 -       familiar things in familiar ways in order to save lives, time
271128 -       and money. ref SDS 31 N87M
271130 -  ..
271131 - Communication is the dominant activity of management and so applying
271132 - technology to leverage this capability is more useful because it
271133 - produces knowledge and ideas, rather than more data and information.
271135 -  ..
271136 - SDS does this by integrating time and information.  The SDS design was
271137 - harder to figure out, because converting infomration into knowledge is
271138 - an internal mental process that occurs involuntarily on "automatic
271139 - pilot."  It does not seem to take any time and so is a mystery.
271141 -  ..
271142 - Conventional writing and using numbers to create information are
271143 - external manifestations of internal mental processes.  Programmers can
271144 - see what to code to support wordprocessing and spreadsheets, but they
271145 - cannot see the internal steps that convert information produced by
271146 - literacy into knowledge.  As a result, SDS is counterintuitive.  It
271147 - had to be thought out through a long period of trial and error.  Now
271148 - that has been done, and is available to enterprising people seeking a
271149 - compelling application.
271150 -
271151 -
271152 -
271153 -
271154 -
271155 -
271156 -
2712 -