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Similar to Randomness, the new naturalism and the new altruism (20)
Randomness, the new naturalism and the new altruism
- 1. Rethinking the Brand in an Age
of Customer Empowerment
Haydn Shaughnessy
Partner
December 1-3, 2009
The Conversation Group
- 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. An old model of Firm and Market behaviour
The Porter Value Chain Model
Inbound Outbound Sales and
Operations Services
logistics 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. Shoppers Sell
Let the customer
market and close
4 | © 2009 nGenera Corp. All Rights Reserved.
- 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. 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. 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. 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. 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
OPEN
Recommend Reviews
SOURCE
9 | © 2009 nGenera Corp. All Rights Reserved.
- 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. Democratisation as collaboration
People neither search for nor discuss
extensively the idea of
parliamentary democracy nor of
workplace delayering
Almost exclusively related to work
And to collaboration
Google insights
data for the term
“collaborate”
11 | © 2009 nGenera Corp. All Rights Reserved.
- 12. Individualisation
A persistent contradiction in the new
economy
High maintenance people seeking
experiences and narratives
Individualisation, personalisation
and customisation are terms that
outstrip online community in search
activity 4:1
12 | © 2009 nGenera Corp. All Rights Reserved.
- 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. 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. 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. Brand as Movement - Ethics
“in the U.S. and
globally, consumers are
seeking out companies
that they believe are
BUT
acting in society's
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. 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 Williams
Symbian Foundation
17 | © 2009 nGenera Corp. All Rights Reserved.
- 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. 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. Peering Markets
AUCTIONS
PEER TO
DATING PEER
LENDING
GAMBLING
FINANCIAL
ADVICE
P2P Games
US Market approaching Lending Club Facebook App $150
million of peer loans in 2009
$1 billion. Migrating to P2P loans $1 billion by 2011 in
FACEBOOK USA
20 | © 2009 nGenera Corp. All Rights Reserved.
- 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. ZOPA
Loans from people not banks
22 | © 2009 nGenera Corp. All Rights Reserved.
- 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. 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. VIA new embedded possibilities
YOU 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. 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. 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. 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. GRADUATING TO A CONSUMER dominated
marketing 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. 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. 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. Requirements of strategy in mid-term
The direction is public and is becoming OPEN – ASK – DO I NEED TO
BE 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.
Editor's Notes
- Board customisation has sunk the board media because brand advertisers are losing out to customiersionssedv