Randomness, the new naturalism and the new altruism

Rethinking the Brand in an Age
of Customer Empowerment
Haydn Shaughnessy
Partner
December 1-3, 2009
The Conversation Group

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.

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.


Shoppers Sell

Let the customer
market and close


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


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

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


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

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


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


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”


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


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

Consumer Co-Advocacy

LEGO
One of over 70
Lego Castle
sites built by
consumers

Other canonical
examples
include Nike
and Adidas


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

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


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

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


Beyond Movement

Zappos’ Next Project:
Opening up supplier price data and financials

ASDA – division of Walmart – installing webcams
in supplier factories and store warehouses


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


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

ZOPA
Loans from people not banks


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

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

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


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.

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


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?


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


FURTHER OBSERVABLE CHANGE

Social Open
Social media
technology management

2007 2008 2009

SAP/Micro Best Buy Symbian
soft


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?

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

Haydn Shaughnessy
haydn@theconversationgroup.com
www.ngenera.com


Randomness, the new naturalism and the new altruism

Recomendados

Recomendados

Mais conteúdo relacionado

Mais procurados

Mais procurados (20)

Semelhante a Randomness, the new naturalism and the new altruism

Semelhante a Randomness, the new naturalism and the new altruism (20)

Randomness, the new naturalism and the new altruism

Notas do Editor