Randomness, the new naturalism and the new altruism


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This is a 2008 paper I gave on change. I think it is still relevant.

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  • Board customisation has sunk the board media because brand advertisers are losing out to customiersionssedv
  • Randomness, the new naturalism and the new altruism

    1. 1. Rethinking the Brand in an Age of Customer Empowerment Haydn Shaughnessy Partner December 1-3, 2009 The Conversation Group
    2. 2. The Conversation Group  San Francisco, London, Helsinki  Origins in social media Advising/analysing impact of open technologies on the firm and on markets Firm architectures, market structures, engagement strategies, brand, customer and employee equity 2 | © 2009 nGenera Corp. All Rights Reserved.
    3. 3. An old model of Firm and Market behaviour The Porter Value Chain ModelInbound Outbound Sales and Operations Serviceslogistics logistics marketing This linear view of the firm is what is changing. I’m going to look at how incorporating users, consumers, developers and suppliers INTO STRATEGY changes the firm; and try to unravel the dynamics driving that - with a major emphasis on how consumer empowerment is being met. 3 | © 2009 nGenera Corp. All Rights Reserved.
    4. 4. Shoppers Sell Let the customer market and close 4 | © 2009 nGenera Corp. All Rights Reserved.
    5. 5. Users build Symbian (the world’s most widely Let the community build distributed software) Linux “Open-source hardware could drop the Android price of development even further, as Om Maemo Malik recently wrote. Give away the designs for your hardware and let would-be customers build it themselves.” CNET Oct 2009 5 | © 2009 nGenera Corp. All Rights Reserved.
    6. 6. The Context for Customer Empowerment Background drivers to bear in mind  A More Plural Economy With Different Market Models – the Porter model is one of many!  Underlying Changes In Market Dynamics, E.G. End Of Power Asymmetries My focus today  Growing Importance Of The Metatrend – The Flow Of Ideas/ Moral Frameworks Behind New Market Mechanisms  The market responses to those drivers and trends 6 | © 2009 nGenera Corp. All Rights Reserved.
    7. 7. Metatrends and response strategies METATRENDS Response strategies THE NEW NATURALISM (bioconciousness) NEW ALTRUISM Consumer Brand Co-Advocacy RANDOMNESS Brand as Movement (Abstracted reward) Peering markets DEMOCRATISATION Product as configuration process INDIVIDUALISATION Consumer managed vendors 7 | © 2009 nGenera Corp. All Rights Reserved.
    8. 8. The New Naturalism Nature is the model for human organisation Nature is the model for design and innovation Businesses will evolve as eco-systems Stewardship is the new leadership Need to remodel human communities to create resilience 2009 Nobel Prize for Economists Elinor Ostrom’s work is on commons Governance 8 | © 2009 nGenera Corp. All Rights Reserved.
    9. 9. New Altruism – encompasses labor and capital The evolution of a new gift economy (labor is free and so too is Google) Good capital The economies around reviews, collaborative filtering, recommendation systems Labour seeking non-cash rewards (e.g. in open source) Good capital Spiritual capitalism Labor The term “ethical captialism” hit a peak in Google searches during the recession! As did spiritual capitalism Contribution OPENRecommend Reviews SOURCE 9 | © 2009 nGenera Corp. All Rights Reserved.
    10. 10. Randomness Success as random Scale as random (300 million Facebook users, 50 million farmville) The decline of cause and effect as drdivers of explanation The rise of popularity and hypergrowth as economic factors 10 | © 2009 nGenera Corp. All Rights Reserved.
    11. 11. Democratisation as collaborationPeople neither search for nor discussextensively the idea ofparliamentary democracy nor ofworkplace delayeringAlmost exclusively related to workAnd to collaboration Google insights data for the term “collaborate” 11 | © 2009 nGenera Corp. All Rights Reserved.
    12. 12. IndividualisationA persistent contradiction in the neweconomyHigh maintenance people seekingexperiences and narrativesIndividualisation, personalisationand customisation are terms thatoutstrip online community in searchactivity 4:1 12 | © 2009 nGenera Corp. All Rights Reserved.
    13. 13. Metatrends and response strategies RESPONSE STRATEGIES CONSUMER BRAND ADVOCACY METATRENDS BRAND AS MOVEMENT The new naturalism PEERING SYSTEMS Randomness CONFUGURATION AND PERSONALISATION New altruism (Abstracted reward) CONSUMER MANAGED VENDORS ( OR VRM) Democratisation Individualisation 13 | © 2009 nGenera Corp. All Rights Reserved.
    14. 14. Consumer Co-Advocacy LEGO One of over 70 Lego Castle sites built by consumers Other canonical examples include Nike and Adidas 14 | © 2009 nGenera Corp. All Rights Reserved.
    15. 15. U-Test: Beyond Co-Advocacy Taking community and open source values into core service provision Consumer co-advocacy has inherent momentum towards peer-collaboration by consumers 15 | © 2009 nGenera Corp. All Rights Reserved.
    16. 16. Brand as Movement - Ethics “in the U.S. and globally, consumers are seeking out companies that they believe are BUT acting in societys Innocent drinks greater interest,” TOM’S SHOES BUY A PAIR OF SHOES FROM TOM’S Synnovate CEO Scott Miller on TOM’S DONATE A PAIR TO A NEEDY CHILD results of Synnovate study of 300,000 SHOES DONATED THIS YEAR TO auto-purchasing intent DEVELOPING WORLD 16 | © 2009 nGenera Corp. All Rights Reserved.
    17. 17. From Ethics to Movement “The idea of the Symbian Foundation is that an independent, not-for-profit organization can serve as the hub of a community of individuals and organizations and lead this coalition to developing more innovative, more compelling, more useful products in an open, level playing field where all can compete as equals.” – Symbian Executive Director Lee WilliamsSymbian Foundation 17 | © 2009 nGenera Corp. All Rights Reserved.
    18. 18. How Significant is Symbian? 350 million installed handsets globally by 2008 480 million newspapers circulated daily 1.1 billion pcs 1.8 billion credit card owners 2.2 billion unique bank account holders 1.5 billion tv sets 1.7 billion internet users 18 | © 2009 nGenera Corp. All Rights Reserved.
    19. 19. Beyond Movement Zappos’ Next Project: Opening up supplier price data and financials ASDA – division of Walmart – installing webcams in supplier factories and store warehouses 19 | © 2009 nGenera Corp. All Rights Reserved.
    20. 20. Peering Markets AUCTIONS PEER TO DATING PEER LENDING GAMBLING FINANCIAL ADVICE P2P GamesUS Market approaching Lending Club Facebook App $150 million of peer loans in 2009$1 billion. Migrating to P2P loans $1 billion by 2011 inFACEBOOK USA 20 | © 2009 nGenera Corp. All Rights Reserved.
    21. 21. BETFAIR Pioneer of the betting exchange – peer to peer gambling Betters bet against other betters directly 6 million transactions per DAY 230 million revenues Currently investing in communities like Watercooler 21 | © 2009 nGenera Corp. All Rights Reserved.
    22. 22. ZOPA Loans from people not banks 22 | © 2009 nGenera Corp. All Rights Reserved.
    23. 23. CONFIGURATION/personalisation But it is not about customisation of brands …… it is facilitating new mechanisms for supply AND reshaping markets …. And the re-personalisation of the economy 23 | © 2009 nGenera Corp. All Rights Reserved.
    24. 24. Make Systems Momentum is with the personal production philosophy RESHAPING SUPPLY If I can’t make it I wont wear it If I can’t hack it I won’t buy it 24 | © 2009 nGenera Corp. All Rights Reserved.
    25. 25. VIA new embedded possibilitiesYOU CAN NOW EMBED THE WORLD’S MOSTS POPUAR SOFTWARE IN ANY PRODUCT, the Symbian OS, or the Android OS, or Linux, in any device Single board computing BEAGLEBOARD.ORG IS THE COMMUNITY WHERE YOU CAN DEVELOP BEAGLEBOARD PROJECTS 25 | © 2009 nGenera Corp. All Rights Reserved.
    26. 26. Customer Managed Vendors (also called VRM) Central proposition: CRM is broken; current corporate data-use is both bad and erroneously asymmetric Step 1: Google social search. I combine Google data with my social data. Represents the point where the system recognises my primacy in data. 26 | © 2009 nGenera Corp. All Rights Reserved.
    27. 27. Customer-centric and Customer Owned Data The evolution point – I own my data Develops personal energy identities, ie aggregates my personal energy use Manages your personal data and what you send to vendors 27 | © 2009 nGenera Corp. All Rights Reserved.
    28. 28. Data pressures Internet of things/I tem-level identity COMING DATA EXPLOSION (world 2.0) CHARACTERISED BY Apps START-UP AND SMALL Energy identities COMPANIES AS DRIVERS OF DATA PRIORITIES Data-augmented reality Are these a threat to the old guard of CRM-style data acquisition? 28 | © 2009 nGenera Corp. All Rights Reserved.
    29. 29. GRADUATING TO A CONSUMER dominatedmarketing space Customer Configuration managed Consumer systems markets Peering dominant markets Brand as movement Current innovation threshold Consumer co- advocacy Brand dominant 29 | © 2009 nGenera Corp. All Rights Reserved.
    30. 30. FURTHER OBSERVABLE CHANGE Social Open Social media technology management 2007 2008 2009 SAP/Micro Best Buy Symbian soft 30 | © 2009 nGenera Corp. All Rights Reserved.
    31. 31. Implications for Your Brand Need to respond to major distinct types of motivation and culture – the Metatrends, explore changing thought processes and how these group and influence market models. Need to understand the ideas driving markets as much as market data? Significance for example of new naturalism and eco-systems for internal organisation and leadership. Need to plan for many market models, underlying changes such as popularity markets and explicit new models (peering markets, altruistic labor markets, movement driven end-user markets) ? Need to disaggregate brand? Be different things to different people in these markets? Become the platform not the provider? 31 | © 2009 nGenera Corp. All Rights Reserved.
    32. 32. Requirements of strategy in mid-termThe direction is public and is becoming OPEN – ASK – DO I NEED TOBE PART OF THAT ZEITGEIST? Co-design and advocacy – it works but it contains the seeds of more consumer empowerment: don’t fear it; plan! Brand as movement – a transitional strategy to capture high ground? Peering – natural outgrowth of community, so partner the customer base. Configuration systems – embrace a natural outgrowth of co- advocacy - positive for supply chains. CVM – reverse data culture or be overwhelmed by change 32 | © 2009 nGenera Corp. All Rights Reserved.
    33. 33. Haydn Shaughnessyhaydn@theconversationgroup.com www.ngenera.com 33 | © 2009 nGenera Corp. All Rights Reserved.
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