Pixie Dust Results

In every business, there are 'secrets' to success. Things that the experts do that may never be verbalized or written down but are essential for success in that industry. It is that ''magical" something that allows them to really make money.

If you get the Business Model right, the harder you work, the more money you make. If you get it wrong, no matter how hard you work, you just end up losing more and more money. And the 'pixie dust' is what differentiates your business and gives you leverage in the marketplace.

We believe that there is something that is orthogonal to the plane on which the business model exists-- that 'thing' is the pixie dust. Can we determine an algorithm that will help us engineer Business Models so that they include provision for and, indeed, look for that 'pixie dust' element. Perhaps from a significant number of examples, such an algoritm can be resolved.

Here are some examples of "Pixie Dust" gathered so far:

How about Costco dealing with huge returns of electronics in 2006. Consumers are finding it too difficult to set up home electronics. They can't even get their new plasma screen TVs to work properly. So they just bring them back. What should Costco do? A) Abandon their long standing policy of no-questions-asked returns? B) Start asking for a restocking fee like some of their competitors do? C) Make a profit centre out of this problem? Their answer was C). They started offering at home installation services for an extra fee. Consumers are willing to pay for this no-hassle service so now Costco makes money from this. They actually make money twice- first, by not having to take back merchandise and second, by charging a fee for the home installation service. They improve customer service and preserve a longstanding covenant with their members- no hassle returns. This adds a lot of pixie dust and shows how a little innovation can go a long way in business.

Wherever you eat a Big Mac, it always tastes the same. Matthieu Pinard.

In Dell's business model, their secrets are deceptively simple- Dell's Business Model is: a) make-to-order, b) cash arrives (i.e., they are paid) before the product is build or delivered. John Callahan.

Amazon's pixie dust is their use of their relational data base: "Do you want to see what others who bought this book are also buying?" Obviously that is an up sell pitch for Amazon but also an incredibly useful research tool for harried university professors who can put the millions of Amazon customers to work for them doing research. Bruce Firestone.

Internic.ca Corporation is a domain name registrar. Their pixie dust is their name-- anyone who knows anything about the net knows to look up the name 'internic' (internet nickname). Also they keep their web sites very simple to use and understand and they are very focused on doing one thing really well. If they want to add a second function, they start another site.Rob Hall.

A Canadian University's pixie dust is its monopoly power to confer degrees. Tony Bailetti.

Walmart's pixie dust is simply automated and integrated inventory management (integrated with POS (Point of Sale) systems)- having suppliers send (directly) basketballs to Nashville and hockey skates to Kanata in the right quantities and at the right times. Bruce Firestone.

Cisco's pixie dust is outsource everything. Carleton University Engineering Graduate Class.

Magna's pixie dust is keeping its factories small-- only 250 to 300 persons and its decision never to compete with its customers (car companies) despite taking on more and more responsibility for design and production of entire sub-assemblies or even entire vehicles as, for example, building a complete car (a SUV) for BMW in 2002.

The NHL's pixie dust or the NFL's is the right to grant local hockey or football monopolies. Bruce Firestone.

The Corel Centre's (and the Sens) is outsource everything except for key customer (i.e., season ticket holders) and sponsor relationships and hockey management (i.e., how to put a winning product on the ice). Bruce Firestone.

HAL's (a technology consulting company) is great proposal writing allowing them to win 90% of their bids. Matthieu Pinard.

More results from the survey:

a_company = byblos
b_industry = beauty
c_business = hair salon & spa
d_dust = Total client care, personal touch service from all staff for all clients. Strength in our industry through our constant and consistent training and a key relationship with our biggest supplier.
e_threat = Possible loss of strong & solid staff members.
f_name = joseph

a_company = IBM
b_industry = computing
c_business = manufacturing and services
d_dust = IBM does about $20 billion in services and probably another $20 billion in sales to people they sell services to. So maybe half their business comes from their decision to offer clients services. Clearly, Nortel should have leveraged their expertise to not only sell big telecom switches but sell operation and maintenance too as well as consulting. It's not sexy but it's essential. Services provide a more stable revenue platform too.
e_name = B. Firestone
g_database = y

a_company = AOL
b_industry = internet service provider
c_business = proving internet connections
d_dust = making the internet easy to use and setup and safe for children-- mass mail out of AOL discs, basically, internet hookup for dummies
e_name = christian cattan
g_database = n

a_company = Doug Flutie, Quarterback
b_industry = NFL
c_business = Entertainment
d_dust = His illusiveness buys him time to make unconventional plays.
e_name = B. Firestone
g_database = y

a_company = Adobe Acrobat
b_industry = Computer Software
c_business = Hard to tamper with files
d_dust = First, Adobe distributes its software (the reader) for free on the web which establishes an international standard for hard to tamper with documents. People have to pay for the Adobe Acrobat software so that they can store and manipulate these documents.
e_name = B. Firestone
g_database = y

a_company = Wayne Gretzky, former hockey player
b_industry = NHL
c_business = Entertainment
d_dust = Wayne could see the play develop in his mind's eye in slow motion before it occured.
e_name = B. Firestone
g_database = y

a_company = Research In Motion (RIM)
b_industry = PDA
c_business = Always-on PDA
d_dust = RIM is focused on providing “Always-ON” instant messaging end-to-end solutions to corporate customers. While Palm and other PDAs manufacturers are aggressively targeting the mass market with low cost devices, RIM is letting its partners such as AOL, Rogers and Earthlink take care of most of the heavy branding and marketing so that it stays focused on its core business.
e_name = Hany Fouda
g_database = y

a_company = Carleton University
b_industry = Education
c_business = Carleton offers the M.Eng. in Telecommunications Technology Management. The pixie dust discussion started when Dr. Firestone and Professor John Callahan met the 2001 Fall class of 96.513
d_dust = Based on Professor Callahan's presentation and the discussion that followed, the pixie dust of a business model is the result of multiplying three terms:

a_company = Sierra Systems
b_industry = Technology
c_business = Systems Integration
d_dust = A close relationship with your client where they see you as their trusted advisor. You can stay ahead of the curve as it relates to upcoming, interesting opportunities. It requires your firm to clearly know your client (on a continuous basis) and at the same time stay ahead of them as it relates to technology industry trends.
e_name = Sandy Foote
g_database = y

a_company = Gortex
b_industry = Clothing Manufacturing: Outer Apperal
c_business = Fully waterproof and breathable outerwear; guarenteed
d_dust = Gortex's pixie dust lies in their reputation. In an industry where customers purchase a new jacket or pair of gloves once every one to five years, customers look for reliability. Gortex says "reliability" to consumers. Gortex has made such a name for themselves that a large percentage of customers will not even look at a jacket if it does not have the Gortex label on it.
e_threat = There are many companies that produce fabrics of equal quality to Gortex.
If one of these companies were to make a name for themselves as popular as Gortex's,
Gortex would definetly see a decline in their sales.
f_name = Katrina Parker

a_company = Intellitech Corporation (www. intellitech.com)
b_industry = hardware test using niche and advanced technologies
c_business = develops and markets tools for scan-based electronic design verification, silicon debug, and test from silicon to systems.
d_dust = "Pixie dust" is critical competitive differentiation in the business model that leads the success of business in the native market of the business. Dell’s, Walmart, Universities, etc. are given examples in the classroom. It seems that “pixie dust” may have different views in different range of industries and native business environments. According to the Dr. Firestone’s notes from Dr. Callahan’s presentation, it may just help surviving as in J.O.B. (Journey of the Broke) business model, or it may make huge difference as in Dell’s and Walmart’s business models. It means “pixie dust” is not a magic and does not mean it will create wealth always. It needs smart people and smart implementations and business minds for success.
e_name = Turgut Abacioglu
g_database = y

a_company = any
b_industry = any
c_business = any
d_dust = the will and ability to be creative. Boxes can be useful, humanitarian approaches can be useful, leading technology can be useful, leadership can be useful , and so on. Management style must be anxious to change or stay the course according to constant re-evaluation and creative thought.
e_name = anon.
f_email =
g_database = n

a_company = Sports Teams
b_industry = Sports & Entertainment
c_business = Majority of Revenues from Ticket Sales
d_dust = All sports teams and live entertainment put their tickets on sale long before the event/games get played. The teams usually get the benefit of the 'pixie dust' for 6-8 months before they start to play the games.
e_name = Cyril Leeder
f_email = cyleeder@corelcentre.com
g_database = y

Of course there is the WalMart & Home Depot distribution models. I understand that they pay for goods "received" as they are sold (goods are sold on consignment, ed.). Their suppliers bear the inventory and carrying costs. Ron Kawchuk.

What about Tucows giving away Open Shared Registration Systems software for free and, thus, inventing the wholesale domain name registration market? Open SRS allows persons or organizations other than just ICANN-accredited registrars to assist with domain name registrations. Timothy Denton.

a_company = Brymark Promotions
b_industry = Advertising/Marketing
c_business = Promotional Marketing Solutions
d_dust = 24/7/365 SERVICE, SERVICE, SERVICE. Quality -if not perfect does not leave the warehouse. Listening and providing Solutions that work and can be measured.
e_threat = None-"It is all in the Mindset"
f_name = Warren

a_company = Brymark Promotions Inc
b_industry = marketing solutions
c_business = I tell customers we help them with their woes as it relates to marketing their name, product, service to their customers. We employ a variety of solutions that fit and ultimately we want our customer to make money, satisfy a need. Profit is not a bad word .
d_dust = We are professionals, we are creative, lots of solid ideas on how to assist a company; our solutions are measurable, give a WOW factor, fit a need, the service we provide is the ultimate. Warren and I will take the risks and smarts to go head to head against anyone.
e_threat = 1) staying in the smallness of Ottawa; not focused enough
2) not being able to implement a game plan
3) not having the outsource partnerships to implement the game plan
4) need to be quick and fast
f_name = Mark Gencher

a_company = architeknowledge.com
b_industry = technophile research with design intentions
c_business = identifying the technophiles housing/workplace needs
d_dust = Facilitating full capacity integrated business and personal operations from anywhere at anytime with instantaneous reaction to the constantly changing environmental and technological influences.
e_name = Brad Hutt
g_database = y

a_company = Ben & Jerry's
b_industry = Food Products - Ice Cream
c_business = Wacky variety and flavourful ice creams
d_dust = They make you feel good about eating their ice cream...
The ice cream is naturally wholesome and tastes great. The company itself is socially responsible (charities, environment, equality, etc.) which in some ways makes you feel that you are contributing to a greater good.
e_name = Jason Daley
g_database = y

a_company = Tilley Endurables
b_industry = Outdoor clothes
c_business =
d_dust = The Straight Shooter's Guarantee for a lost hat. Brilliant marketing.
e_name = Nicholas Newton
g_database = y

"I read in the Ottawa Citizen today that the Got Milk campaign is trying to get a city to rename itself to Got Milk!, California .... another interesting guerrilla marketing initiative," Tracy Holmes, October 29, 2002.

a_company = Any
b_industry = Any
c_business = Any
d_dust = The ability to prevent the "FTI" disease. (Failure To Implement). No idea has value unless implemented. The ability to implement ensures the company is successful even if they did not think of theidea first. Implementation first is all that counts
e_name = Nicholas Newton
g_database = y

a_company = division 3 Communications Inc.
b_industry = telecommunications
c_business = design/install structured cabling systems
d_dust = I find that building a good relationship with a leasing company has allowed me to offer clients the opportunity to lease their infrastructure requirements. This helps companies that may not have the $ immediately to install sufficient infrastructure so that their growth is not slowed by an inefficient network. It also allows my company to recieve paymaent immediately after the job is completed (important in today's tech wreck, because some companies may dissapear before their bill is due. As well, it allows me to maintain the relationship I have with my supply chain and ensure they recieve payment for materials as well as maintain a positive cashflow for division 3.
e_name = Ryan Waterman
g_database = y

a_company = LCBO
b_industry = Entertainment
c_business = Ontario alcohol distributor
d_dust = Monopoly on alcohol distribution within
Ontario.
e_name = Rowland Few
g_database = y

a_company = Intrawest
b_industry = Leisure
c_business = Four season vacations
d_dust = Ability to offer total holiday experience within one location catering for all tastes. For example they offer the total ski experience, Ambiance, Atmosphere, equipment, snow making, shops restaurants, entertainment, Apres ski, clubs, snow shoeing, Dog Sledding, instruction, guides, accomodation (rental/owner)..etc
(Ed. note: I believe that Intrawest's actual pixie dust is that their leisure activities drive their time share real estate sales. Their actual cash engine is real estate sales, not lift tickets. BMF)
e_name = Rowland Few
g_database = y

a_company = EBay
b_industry = Internet
c_business = e-commerce
d_dust = Internet garage sale adminstrator- very simple auction model, tried and proved. They have 0 inventory, 0 warehousing, 0 cost of goods sold and take a percentage of all sales.
e_name = Hany Fouda
g_database = y

a_company = Unlikely Heroes
b_industry = sports industry
c_business = It is an indoor paintball field with a full service proshop within the city of Ottawa.
d_dust = The pixie dust is the fact that it is unique. There are no indoor paintball fields in Ottawa, or even within a reasonable distance away.
e_name = Leah Ritz, Jeffrey Laporte
g_database = y

a_company = REGISTERME.ORG
b_industry = Registration services
c_business = Provides organizations with on-line registrational services for their customers.
d_dust = Our Pixie Dust is in our name. Our name basically describes our entire business, and provides for a greater span of awareness. Our name allows people to know about the service we provide, at a glance. (Ed. note: I don't agree with Julie and Scott because between the time they told me of the business and the time they registered their domain name someone had taken the dot com. Now registerme.org will serve to build traffic for the dot com site which they don't own. BMF ps. I told them to leave the class and register the name right away. Carpe diem, not.)
e_name = Julie Budd, Scott Seaby
g_database = y

a_company = EasyJet.com
b_industry = Airline
c_business = Operate short-run flights in Europe at unbelivably low prices.
d_dust = Short distance flights, using smaller, lower cost airports, which are cheaper than those traditional airlines use plus internet ticket sales and no travel agents (cuts out the intermidiaries). This set-up allows them to charge such low fees.
e_threat = Not much, increased costs due to increased oil prices, or for added security measures.
f_name = Sonja Harrington

a_company = Mountain Equipment CO-OP
b_industry = Outdoor Recreation
c_business = Outdoor Recreation/Survival Gear
d_dust = -high quality products that endure the test of time and outlast similar competitive products plus the fact that they are a co-op and this is their best marketing edge in this market which likes the ideals of a not-for-profit co-op.
e_threat = -if society suddenly decides to stay indoors.
f_name = Tamara Fathi

a_company = Mountain Equipment Co-op
b_industry = Outdoor Equipment
c_business = Co-operative organization that sells outdoor clothing, equipment and accessories that can be used by the average person or the extreme sports enthusiast.
d_dust = MEC's pixie dust is their co-operative structure. This allows them close contact with their customers, allows for reinvestment of profits into the stores, and furthers their environmental left-wing causes.
e_threat = They may be slightly inapproachable as a membership fee is required to join the co-op. The clique nature of the co-op may be a deterant to new customers.
f_name = Erin Maher

a_company = St. Hubert
b_industry = Restaurant
c_business = Chicken restaurant, similar to Swiss Chalet
d_dust = Their sauce. Everyone knows the sauce. I know people that even brought the sauce with them when travelling so they could have St. Hubert's poutine
e_threat = Two threats. One, that no matter what the sauce tastes like, if other restaurants start producing noticeably better chicken, the sauce can't save them. Second, they sell the sauce at grocery stores, and if people don't have to go to the restaurant for it, they may be stealing their own customers.
f_name = Adam Miller

a_company = McDonald's
b_industry = Fast Food
c_business = Fast Food
d_dust = Is to provide the same service no matter what restaurant you go to, whatever city you go to. The have brain washed people since they were little children to go. There is an association between the "M" and being happy. When you enter a McDonalds you are anonymous; you do not feel you are entruding on the "regulars". Therefore, you are part of the "in" group or part of the billions and billions served group.
e_threat = Potential furture government regulation on "non-healthy" food choices. Sort of like placing a "warning sign" like on a cigarette package.
f_name = Todd Jamieson

a_company = GAP
b_industry = Retail
c_business = Clothing retailer to all ages (from baby to elderly people)
d_dust = Their pixie dust is that they first targeted young people (ages 18-25). Now their campaign is GAP- for all generations. They are aiming for an older market because there are lots of baby boomers aging and they have lots of money to spend. Many older people still want to try to look good and fit in. Although they are also selling clothes to older people, they still maintain their younger market.
e_threat = If this becomes a huge hit then other stores will see this then the GAPs pixie dust is threatened because then the stores will get into price wars.
f_name = Chantal Carriere

a_company = Lone Star Cafe
b_industry = Foodservice
c_business = Tex Mex Restaurant
d_dust = Lone Star was built on fun, energy, great food and service and the staff are the ones that make the atmosphere in the Lone Star restaurants the unique dining experience that it is. Owner Val Belcher, a Texan himself and former Ottawa Roughrider, had an idea to bring Texas to Ottawa by starting a restaurant with the "down-home cooking" and southern hospitality he missed so much. Lone Star was the first to bring fajitas to Ottawa and they are the best in town because all of the ingredients are made fresh daily.
e_threat = The foodservice industry is very competitive and another restaurant in town with great fajitas could come along anytime but the atmosphere in the restaurant will be hard to match.
f_name = Jessica Smith

a_company = modrobes
b_industry = clothing
c_business = sell comfortable pants for teens and students
d_dust = going to their customers literally - they pushed their product out and made the customers want it and request it from other shops, created a serious demand for their product that is so simple.
e_threat = these pants are really basic and can be easily copied- the only thing that is holding on to them is thier brand name.
f_name = poonam bilkhu

a_company = FreeBalance Inc.
b_industry = eGovernment
c_business = The company provides software for government operations
d_dust = Their pixie dust is their timing-- it comes from the fact that they are dealing with providing services to the government during a time when the GOC is pouring billions and billions into the 'government online initiative'. The government as an institution tends to be more traditional: it is hard to get them to change the way they do things and as such the money cycle is considerably slower but once committed, it is gravy all the way.
e_threat = The major threat to their pixie dust is the fact that their major client is the government.
f_name = Mihnea Galeteanu

Pixie Dust Defintion

Pixie Dust Survey

Anti Pixie Dust Survey

Anti Pixie Dust Results So Far

Dramatis Personae