The document discusses the progression of economic value from commodities to experiences. It outlines how businesses have moved from extracting commodities to delivering goods and services, and now focus on creating experiences. It also provides principles for businesses to authentically stage experiences, including giving workers roles to play, characterizing those roles, and enacting dramatic structure. Finally, it discusses the need for businesses to be true to themselves and what they say they are in order to render authentic experiences.

1. © 2009 Strategic Horizons LLP B. Joseph Pine II Strategic Horizons LLP 13 High Point Road Dellwood, MN 55110 USA +1 (651) 653-6850 [email_address] www.StrategicHorizons.com Retailing & the Experience Economy CBW-MITEX October 12, 2009

3. The Progression of Economic Value © 1999 Strategic Horizons LLP Deliver Services Make Goods Commodities Extract Commoditization Stage Experiences Commoditization

5. Make Services Goods Commodities Extract Deliver The Progression of Economic Value © 1999 Strategic Horizons LLP Stage Experiences Commoditization Commoditization

32. © 2007 Strategic Horizons LLP Authenticity

33. Commodities Services Goods Experiences Economic Output Business Imperative Supply Consumer Sensibility Control Improve Render Availability Cost Quality Authenticity © 2007 Strategic Horizons LLP Economic Changes

34. © 2007 Strategic Horizons LLP Authenticity

35. © 2007 Strategic Horizons LLP Inauthenticity

37. This above all,—to thine own self be true; And it must follow, as the night the day, Thou canst not then be false to any man. - Polonius William Shakespeare, Hamlet, Prince of Denmark, Act I, Scene 3, lines 80-82. The Polonius Test

38. IS what it says it is Real-real Fake-fake Real-fake Fake-real Is NOT what it says it is Is NOT true to itself IS true to itself Rendering Authenticity © 2007 Strategic Horizons LLP

39. = Origin + History Heritage Being True to Self © 2007 Strategic Horizons LLP

40. = Venue + Event Place Being What It Says It Is © 2007 Strategic Horizons LLP

41. The Progression of Economic Value © 1999 Strategic Horizons LLP Deliver Services Make Goods Commodities Extract Commoditization Stage Experiences Commoditization

42. B. Joseph Pine II Strategic Horizons LLP 13 High Point Road Dellwood, MN 55110 USA +1 (651) 653-6850 [email_address] www.StrategicHorizons.com © 2009 Strategic Horizons LLP Retailing & the Experience Economy mitex October 12, 2009