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Your Market Edge for Today’s Exponential Economy




                                         What are Time-onomics?
                                                   = Time-Value Economics

                                          Hidden but Powerful Forces That
                                               Drive Decision-Making
                                           in Today’s Always-Connected,
                                         Information Overloaded 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
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
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
A Perfect Storm:
                           Customer Behavior Has Changed


                               Always-                             Information
                             Connected                               Overload




                                                          Time-
                                                         Starved




© 2010 Exponential Edge Inc. All Rights Reserved                                 www.24HourCustomer.com
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
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: Companies like Netflix, Hulu and Tivo placed customers in control
Movies on                              over their viewing time through movies on-demand, ultimately disrupting the
Demand                                 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
Applying Time-onomics® Principles:
                      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
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
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
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
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
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
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
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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What are Time-onomics?

  • 1. Your Market Edge for Today’s Exponential Economy What are Time-onomics? = Time-Value Economics Hidden but Powerful Forces That Drive Decision-Making in Today’s Always-Connected, Information Overloaded 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. 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. 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. A Perfect Storm: Customer Behavior Has Changed Always- Information Connected Overload Time- Starved © 2010 Exponential Edge Inc. All Rights Reserved www.24HourCustomer.com
  • 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. 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: Companies like Netflix, Hulu and Tivo placed customers in control Movies on over their viewing time through movies on-demand, ultimately disrupting the Demand 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. Applying Time-onomics® Principles: 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. 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. 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. 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. 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. 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. 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. 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

Notas do Editor

  1. 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.