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Rethinking the Brand in an Age of Customer Empowerment
Haydn ShaughnessyPartner
December 1-3, 2009The 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
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An old model of Firm and Market behaviour
Inbound logistics Operations Outbound
logisticsSales and marketing Services
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.
The Porter Value Chain Model
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Shoppers Sell
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Let the customer market and close
Users build
Symbian (the world’s most widely distributed software)
Linux Android Maemo
Let the community build
“Open-source hardware could drop the price of development even further, as Om
Malik recently wrote. Give away the designs for your hardware and let would-be customers build it themselves.”
CNET Oct 2009
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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
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Metatrends and response strategies
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THE NEW NATURALISM(bioconciousness)
NEW ALTRUISM
RANDOMNESS
(Abstracted reward)
DEMOCRATISATION
INDIVIDUALISATION
Consumer Brand Co-Advocacy
Brand as Movement
Peering markets
Product as configuration process
Consumer managed vendors
METATRENDSResponse strategies
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
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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)
The economies around reviews, collaborative filtering, recommendation systems
Labour seeking non-cash rewards (e.g. in open source) Good capital Spiritual capitalism The term “ethical captialism” hit a peak in Google
searches during the recession! As did spiritual capitalism
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OPEN SOURCE
Contribution
Good capital
Reviews
Labor
Recommend
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
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Democratisation as collaboration
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People neither search for nor discuss extensively the idea of parliamentary democracy nor of workplace delayering
Almost exclusively related to workAnd to collaboration
Google insights data for the term “collaborate”
Individualisation
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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
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The new naturalism
Randomness
New altruism(Abstracted reward)
Democratisation
Individualisation
CONSUMER BRAND ADVOCACY
BRAND AS MOVEMENT
PEERING SYSTEMS
CONFUGURATION AND PERSONALISATION
CONSUMER MANAGED VENDORS ( OR VRM)
METATRENDS
RESPONSE STRATEGIES
Consumer Co-Advocacy
One of over 70 Lego Castle sites built by consumers
Other canonical examples include Nike and Adidas
LEGO
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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 consumers15 | © 2009 nGenera Corp. All Rights Reserved.
Brand as Movement - Ethics
“in the U.S. and globally, consumers are seeking out companies that they believe are acting in society's greater interest,”
Synnovate CEO Scott Miller on results of Synnovate study of auto-purchasing intent
Innocent drinks
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TOM’S SHOESBUY A PAIR OF SHOES FROM TOM’STOM’S DONATE A PAIR TO A NEEDY CHILD300,000 SHOES DONATED THIS YEAR TO DEVELOPING WORLD
BUT
Symbian Foundation
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
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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
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Beyond Movement
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Zappos’ Next Project: Opening up supplier price data and financials
ASDA – division of Walmart – installing webcams in supplier factories and store warehouses
Peering Markets
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DATINGPEER TO
PEER LENDING
FINANCIAL ADVICE
AUCTIONS
GAMBLING
US Market approaching $1 billion. Migrating to FACEBOOK
Lending Club Facebook App $150 million of peer loans in 2009P2P loans $1 billion by 2011 in USA
P2P Games
BETFAIR
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Pioneer of the betting exchange – peer to peer gambling
Betters bet against other betters directly6 million transactions per DAY
230 million revenues
Currently investing in communities like Watercooler
ZOPA
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Loans from people not banks
CONFIGURATION/personalisation
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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
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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
BEAGLEBOARD.ORG IS THE COMMUNITY WHERE YOU CAN DEVELOP BEAGLEBOARD PROJECTS
Single board computing
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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.
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Customer-centric and Customer Owned Data
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Manages your personal data and what you send to vendors
Develops personal energy identities, ie aggregates my personal energy use
The evolution point – I own my data
Data pressures
Internet of things/Item-level identity
Apps
Energy identities
Data-augmented reality
COMING DATA EXPLOSION (world 2.0) CHARACTERISED BY START-UP AND SMALL COMPANIES AS DRIVERS OF DATA PRIORITIES
Are these a threat to the old guard of CRM-style data acquisition?
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GRADUATING TO A CONSUMER dominated marketing space
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Current innovation threshold
Consumer co-advocacy
Brand as movement
Peering markets
Configuration systems
Customer managed markets Consumer
dominant
Brand dominant
FURTHER OBSERVABLE CHANGE
Social media Social technology
Open management
2007 2008 2009
Best Buy SymbianSAP/Microsoft
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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?
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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
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Haydn Shaughnessy haydn@theconversationgroup.com
www.ngenera.com
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