DIY Industrial revolution: Creating People Powered Businesses


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My Presentation from IDSA 2010 Conference:

Designing people powered products.
In the past few years, we have witnessed an explosion of new online business models and technologies that enable people to create their own product lines without the need to set up a traditional brick and mortar shop. Companies such as Ponoko, Styleshake, Moo, and Blurb are pushing the DIY business models in new, profitable directions by focusing on smaller niches, offering higher-quality goods, and building robust, connected communities. This presentation will share examples, outline implications and provide a framework for designing businesses in the age of People Powered Products.

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DIY Industrial revolution: Creating People Powered Businesses

  1. 1. Creating People Powered Businesses #idsa2010, @chadjennings
  2. 2. Image: blvesboy, Flickr CC DIY Industrial Revolution (in three phases)
  3. 3. DIY ...Building, modifying, or repairing of something without the aid of experts or professionals. offers an alternative to modern consumer culture's emphasis on relying on others to satisfy needs. Text: Wikipedia Image: freakgirl, Flickr CC
  4. 4. Image: Flickr CC, blvesboy The Industrial Revolution Movement toward machine-based manufacturing made possible by a variety of interdependent inventions. Major turning point in human history usually described in two phases.
  5. 5. Potential phases of our DIY Industrial Revolution Phase 01: Where we’ve been... Mass Customization Phase 02: Where we are now... People Powered Products Phase 03: Where we could grow next... People Powered Businesses but first...
  6. 6. Image: Obligatory Long Tail Slide
  7. 7. Obligatory Long Tail SlidePopularity Products Head Long Tail
  8. 8. Phase 01: Where we’ve been Mass Customization Businesses profit on sale quantity of 1. Enabled by efficiency of web ecommerce platforms. Primarily a personal purchase (i.e. for myself)
  9. 9. Image: wendyness, Flickr, CC
  10. 10. Product Reach Framework People You Know Fans You Natural Audience Mass Market Phase 01 Mass Customization
  11. 11. Phase 02: Where we are today People Powered Products Enabling non-experts to produce and sell retail-quality products without any of the financial risks associated with old-school manufacturing, inventory management, and distribution chains.
  12. 12. Image: frombelgiumwithlove,
  13. 13. design, publish, share, and sell your own commercial-quality books
  14. 14. design, publish, share, and sell your own commercial-quality books blurbapi
  15. 15. design, publish, share, and sell your own commercial-quality books
  16. 16. Creating a New Craft Culture, American Craft Council Conference
  17. 17. Black Sea of Concrete, Rafal Milach
  18. 18. HCD Toolkit, IDEO
  19. 19. Printed 1.2M+ books in 2009 About 350,000 unique titles in 2009 New title every 1.1 seconds (seasonal peak) Global print network with 7 locations Shipping to 60+ countries on 5 continents Profitable with $45M in revenue in 2009 Paid out over 1.4M+ in profits to blurb authors
  20. 20. A few characteristics of people powered companies...
  21. 21. We’re building new creative platforms (It feels more like craft than customization)
  22. 22. Free, easy to use creation tools (easy does not always equal consumer)
  23. 23. Tapping into the IKEA Effect (labor enhances affection for its results)
  24. 24. Deterministic Production Workflow (i.e. limiting choice)
  25. 25. Enabling creators to Sell, Promote, Market People You Know Fans You Natural Audience Mass Market Phase 02 People Powered Products
  26. 26. Enabling creators to Sell, Promote, Market
  27. 27. Tools for marketing and promotion (One concept: The Story Behind the Story)
  28. 28. Obligatory Long Tail Slide (redux)
  29. 29. Popularity Products Head Long Tail Businesses can make money _on_ the long tail (But few creators selling within the tail are quitting their day job)
  30. 30. Setting realistic expectations (Pulling the curtain away from the wizards) 172,000 unique book titles were published (ISBN) in 2005 93% of books sell less than 1000 units. 90% sell less than 100 units.
  31. 31. Phase 03: Where we might grow next Towards People Powered Businesses Enabling profitable businesses by connecting creators with their unknown natural audience.
  32. 32. “A True Fan is defined as someone who will purchase anything and everything you produce.” “They will drive 200 miles to see you sing. They will buy the super deluxe re-issued hi-res box set of your stuff even though they have the low-res version. They have a Google Alert set for your name. They bookmark the eBay page where your out-of-print editions show up. They come to your openings. They have you sign their copies. They buy the t-shirt, and the mug, and the hat. They can’t wait till you issue your next work. They are true fans.” Source: Kevin Kelly,
  33. 33. Connecting creators with their unknown natural audience People You Know Fans You Natural Audience Mass Market Phase 03 People Powered Businesses
  34. 34. Source: Flickr, steews4 CC
  35. 35. Source: Flickr, steews4 CC
  36. 36. How?
  37. 37. DIY Industrial Revolution (Towards increasing disruption of traditional industries)
  38. 38. 0 200,000 400,000 600,000 800,000 2003 2004 2005 2006 2007 2008 2009 Source:    Bowker  Bibliographic,   New  Book  Titles  and  Edi;ons,  2002-­‐2009    (2009  Projected),  Non-­‐tradi;onal  consists  of  reprints  as  well  as  ;tles  printed  POD Number of Non-Traditional Book Titles
  39. 39. Where might this theoretical revolution take us?
  40. 40. thanks! twitter: @chadjennings Make a Blurb book on me $36.95 off. Expires Oct 31, 2010 Use promo code: idsa2010