By John Burke

Group Vice President Oracle Applications Business Unit

I recently completed a business tour in Mexico, and was surprised by both the economic vibrancy of the country and the thought leadership expressed by many of the customers I met. 

An example of the economic vibrancy of the country: across the street from my hotel was the local Bentley dealership, Coach Store, Yves Saint Laurent and of course a Starbucks.  I only made it to Starbucks.  Both the Coach Store and YSL had a line of folks waiting to get in...

As for thought leadership, there were several illustrations only on the first day. I had the opportunity to meet with a branch of the Mexican Federal Government. Their questions were not about clerical task automation, far from it! We discussed citizen on-line access to fees and services - for example looking up the duty on an international goods shipment, or tracking that my taxes have been received, or the status of my request for a certain service.  Eligibility, policies and status.  Having an integrated rules or policy automation system that would allow businesses and citizens to access accurate information and ensure the proper collection of fees and payment for 3^rd party provided services. 

Then in the afternoon, I met with the owner of a roofing company (note: most roofs in Mexico are flat and made of cement).  This CEO started discussing how he wanted to transform his business from a cement products company to a service company and market 5-10-15 year service contracts which would guarantee the structural integrity of the roof and of course that the roof would remain waterproof.  Although his products were guaranteed, they required an annual inspection and most home owners never schedule that inspection until it is too late and water damage has occurred.  These emergency calls reduce his margin and reduce customer satisfaction.  This lead to a discussion of business models in general and why long term differentiation can only come from service, not just for the music or news industries, but also for roofing companies!   

I completely agreed with the transformational concepts described in both meetings and quickly understood why there is a Bentley dealership near my hotel.