What are Time-onomics?

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Did you know that people spend less than 6 minutes per day on e-commerce sites? That means that an e-commerce provider is competing with the world for six minutes!

The 24-Hour Customer is about Time-onomics or Time-Value Economics. Customers are asking "Is it WORTH my time?" Your business is not competing with other products. You are competing with TIME.

Time is not money. Time is more important than money. It is also a strategic weapon. Companies that understand and work with the forces of time, rather than against these forces, better serve customers, innovate products and services that disrupt industries, and ultimately win in today's economy. 

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  • We have Ebbs and Flows to our Time and AttentionSeeking – suggests that neuroscientist that transmitter dopamine may register similar to an addiction for new ideas. This is why we can spend hours surfing the internet. Social Obligation plays a role as well e.g Farmville. At the extreme: Internet Addiction: According to Stanford University School of Medicine 1 in 8 Americans Suffer form Internet Addiction. Facebook Addiction Disorder (FAD) 350 million people. Internet detox centers are springing up around the world. Other times we say shun and say “Time-Waster” e.g. standing in line at the Post Office or Grocery Store.All of these affect buying BehaviorTake Farmville by Zinga $300 m run rate in 2010 26 million play every day; 230 users/month (Facebook has 400 million about). Revenue from virtual goods.
  • What are Time-onomics?

    1. 1. Your Market Edge for Today’s Exponential Economy What is Time-onomics? How Busy People Make Decisions in Today’s Always-Connected Economy 228 Hamilton Ave., Suite 300 Palo Alto, CA 94301 Office: 650-331-7378 www.exponentialedge.com © 2010 Exponential Edge Inc. All Rights Reserved www.24HourCustomer.com
    2. 2. Did you know? Despite 24/7 commerce, Americans spend less than 6 minutes on e-commerce a day? That means… six minutes that an e-commerce provider is battling the WORLD for less than 1% of attention! Sources: Online Publishers Internet Activity Index (U.S.), Exponential Edge Analysis © 2010 Exponential Edge Inc. All Rights Reserved www.24HourCustomer.com
    3. 3. So Many Products, So Little Time People spend less than 3% of waking hours buying goods and services! Despite vast new ways of reaching customers and abundant choices… time spent purchasing has not changed since the 1960’s! Product Proliferation Average Minutes Per Day Shopping 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 Sources: U.S. Labor Dept. Time-Use Statistics, U.S. PTO, Exponential Edge Analysis © 2010 Exponential Edge Inc. All Rights Reserved www.24HourCustomer.com
    4. 4. A Perfect Storm: Customer Behavior Has Changed Always- Information Connected Overload Time- Starved © 2010 Exponential Edge Inc. All Rights Reserved www.24HourCustomer.com
    5. 5. Market Winners factor Time-onomic principles into products, marketing, distribution, and service J&J Google Zipcar Symantec Cisco Nike Amazon Digital Chocolate P&G HubSpot Voice2Insight FreshDirect ZoomSystems © 2010 Exponential Edge Inc. All Rights Reserved www.24HourCustomer.com
    6. 6. Discover New Ways to Innovate Market Opportunities – Examples Time-Slicing: Customers “Seize the Minute!” Trip Hawkins latest venture rose to Digital the top of the Apple App store by developing short, high-quality iPhone games Chocolate that could be played in spare moments while waiting in line. Johnson & Johnson Time on Autopilot: J&J’s Symcare team asked “What is preventing diabetics from staying on track?” The inTouch™ mobile program wirelessly reports glucose readings and offers rich resources, reminders, and incentives to promote healthy patient habits. Time-Shifting: Netflix, Hulu and Tivo placed customers in control over their Netflix viewing time through movies on-demand, ultimately disrupting the entertainment industry. Time-Sharing: Zipcar redefined the notion of automobile ownership Zipcar by enabling people to purchase “wheels when you want them.” Value Altering Industry Dynamics in Your Favor © 2010 Exponential Edge Inc. All Rights Reserved www.24HourCustomer.com
    7. 7. The Time-onomics® Mindset: A Fresh Customer Perspective Old Rules New Rules Product Classic- Time-Value Centric Marketing Centric • Habits • Wants • Triggers • Features • Needs • Tradeoffs • Time-Relevant Example: A mother may WANT to lose weight … may NEED to lose weight … but CAN’T lose weight … because of TIME constraints i.e. her children © 2010 Exponential Edge Inc. All Rights Reserved www.24HourCustomer.com
    8. 8. People Apply Time-Value Tradeoffs to Daily Decisions Question: It’s a free internet service … Why do we hesitate to register? Answer: With time-onomics we assess the Time-Value tradeoff Question: We plan to buy two items at a store… And we end up with a cartload? Answer: The Time-Value Tradeoff to buy NOW is favorable. Value > Price + Time Investment * * Plus other factors © 2010 Exponential Edge Inc. All Rights Reserved www.24HourCustomer.com
    9. 9. Busy Customers Ask … Is it … “Is it WORTH Easy to buy? my Time?” Easy to set up? Easy to consume? © 2010 Exponential Edge Inc. All Rights Reserved www.24HourCustomer.com
    10. 10. Products and Services are Prioritized Based on Time/Attention Constraints • Time Magnets • Time-Savers • Time on Autopilot • Time Minimized © 2010 Exponential Edge Inc. All Rights Reserved www.24HourCustomer.com
    11. 11. Rather than Shouting for Attention, Market Winners Harness Time-onomic Forces to their Advantage Why do people shun … yet devote hours certain offers … addicted to others? Not All Time There are Ebbs and Flows is Created Equal to Time and Attention © 2010 Exponential Edge Inc. All Rights Reserved www.24HourCustomer.com
    12. 12. The 24-Hour Customer New Rules for Winning in a Time-Starved Always-Connected Economy An eye-opener for companies. – Publishers Weekly A BIG idea that can pay off in BIG results. – Robert H. Miles Ph.D, Former Harvard Business School Professor, co-Author BIG Ideas to BIG Results Hits the nail on the head … brilliant insight. www.24HourCustomer.com – Peter Sealy, Ph.D, Former CMO, Coca-Cola, Adjunct Professor at the Published by HarperBusiness August, 2010 Peter Drucker School of Management Available for pre-order from most book outlets Follow Adrian Ott on Twitter: @ExponentialEdge © 2010 Exponential Edge Inc. All Rights Reserved www.24HourCustomer.com
    13. 13. Adrian Ott, CEO and founder of Exponential Edge Inc was called “one of Silicon Valley’s most respected (if not the most respected) strategist” by Consulting Magazine. In addition to assisting Fortune 500 and startup clients, she is author of The 24-Hour Customer (www.24HourCustomer.com), a top blogger at Fast Company, and chairs the Strategy & Growth Roundtable for the Harvard Business School Association of N. California. Prior to founding Exponential Edge Inc., she was an HP executive that was recognized in an annual report for “infusing HP with new revenue streams and new technologies and new business models.” She holds an MBA from the Harvard Business School and a B.S. from U.C. Berkeley. Follow Adrian on Twitter @ExponentialEdge. Read her articles at Fast Company or on her blog at www.exponentialrevenue.com For nearly a decade, Exponential Edge® consulting services have provided Fortune 1000 and innovative start-up clients with a market edge for today’s exponential economy. We zero-in on winning actions by working with you to:  Identify and capture white-space market opportunities using emerging business models and rules.  Gain traction with today’s always-connected customer  Achieve market leadership by navigating rapidly changing competitive market dynamics 228 Hamilton Ave., Suite 300 Palo Alto, CA 94301 Office: 650-331-7378 www.exponentialedge.com © 2010 Exponential Edge Inc. All Rights Reserved www.24HourCustomer.com
    14. 14. Sources • http://www.onlinepublishers.org/internet-activity-index Exponential Edge Inc. Analysis averaged for ecommerce for the years 2008 – 2009. • U.S. Bureau of Labor Statistics, US PTO, Exponential Edge Analysis • ATHUS based on U.S. Labor Statistics Time-Use Data, Exponential Edge Inc. Analysis, See Introduction Endnote 5 of The 24-Hour Customer for Methodology. • http://www.online-publishers.org/internet-activity-index. Average of 2008/2009 Commerce Category. See Introduction EndNote 5 From The 24-Hour Customer for methodology. • http://www.reseearchexcellence.com/vcmstudy.php The Center for Research Excellence (CRE), June 8, 2009 found that people were on-line for an average of 8.5 hours per day. Another Study found that people consumed information for 11.8 hours per day.) http://hmi.ucsd.edu/pdf/HMI_2009_ConsumerReport_Dec9_2009.pdf • Adrian C. Ott, The 24-Hour Customer, 2010, HarperBusiness • http://hmi.ucsd.edu/pdf/HMI_2009_ConsumerReport_Dec9_2009.pdf © 2010 Exponential Edge Inc. All Rights Reserved www.24HourCustomer.com

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