Post Consumerism presentation

8/9/2019 Post Consumerism presentation

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Business Models for a

Post-Consumer World

Sunday, October 16, 2011

Not concerned with how this

scenario comes to pass today, just

to describe the market differences

for you to respond to.



CONSUMPTION!

CONSUMERISM


Everything living has to consume.

The different is purpose.

Let!s first look quickly at

consumerism before we look at

post-consumerism.

The Duty to consume, whether out

of patriotism, pro-business, or

i l l i!

d f



CONSUMERISM IS A FAIL


I!ll get right to it: Consumerism is a

fail... and we need to replace it.




It hasn!t made us healthy.




It hasn!t made us wealthy (as a

whole, only for a few). Consumerism

may be a fail, but not for everyone.

We can!t afford consumerism--and

never could.





2006, Adrian White, Leicester University's School of Psychology

1. Denmark2. Switzerland3. Austria4. Iceland5. The Bahamas6. Finland7. Sweden8. Bhutan

9. Brunei10. Canada11. Ireland12. Luxembourg13. Costa Rica14. Malta15. The Netherlands16. Antigua and Bar17. Malaysia18. New Zealand19. Norway20. The Seychelles

23. USA35. Germany41. UK62. France82. China90. Japan125. India167. Russia


No. This graph makes it look good

since we!re in the top category but

we!re actually pretty far down the

list: 23rd!



2009 Gallup World Poll


Perhaps, it!s getting a little better in

5 years?

None of this is surprising to anyone

who!s got their eyes open.




Furthermore, consumerism has

been disrespectful...



FURTHERMORE, IT’SDISRESPECTFUL—TO THE PLANET, TO

OTHERS WHO LIVE ON IT,

AND TO FUTUREGENERATIONS


Furthermore, consumerism has

been disrespectful... to ourselves, to

the planet, and to future

generations.




The fact that we glorify it is just sad.

We don!t, as a rule, glorify other

addictions.



Retail Therapy


This is a result of consumer culture

(in Allan Chochinov!s terms, a

consequence).




Planned Obsolescence is a driver

of consumer culture--not just a

product of design, but of marketing,

operations, and finance, as well. It

may be one of the biggest drivers

of our economy, in fact.



THE US ECONOMY IS WEAK


But, consumerism has made us

weaker. When the imperative after a

National emergency is to go

shopping, that!s not the indicator of

a resilient economy. Who!s the

“developed” country now?




Consumerism is un-American ... atleast it was.




How did we get here? We!ve built

our economy on false assumptions

and models and we measure our

“progress” with the very tools that

cause us to make policies that make

things worse.



WHAT DO WE DO?


What do we do about it?



We!re Citizens,

Not Consumers


We even have to stop using the

word “consumer.” If we!re going to

define ourselves by our actions,

couldn!t we chose better activities?

You can use “citizen,” “people” or

“person” if you like.



ConsumerismManufacture needs

Managerial

Liquidating capital

No regulation

Speculation“Conservative”

Private value

Sustainable experiencesManufacture offerings

Entrepreneurial

Creating capital

Enabling regulation

InvestingConservative

Public value

Post-ConsumerConsumerist


I!m not going to address, here, how

we might get to a post-consumer

world. For now, let!s try to imagine

what it might be like?

This isn!t either-or but about the

average or zeitgeist. This relates to

Terry Irwin!s divde betweenorientations of a mechanistic to

holistic world view. We need to find

d i b l b h



Behavior Change:

Citizens buy less.They share more.

They repair and reuse.

They sell what they nolonger need.

They DIY more.


Post-consumers empty-out their

garages and storage units (and they

feel better for it).

They don!t DIY everything but

everyone DIYs something. People

value the homemade more (thoughmore for cultural, rather than

technological, products). This

i l d i i d



Behavior Change:

Citizens seek experiences.They value values andwant meaning integrated.

They buy less “stuff” butmore services.

They value quality andlongevity.




Behavior Change:

Citizens favor their localcommunities and

businesses.

They travel less (especiallyfor business) but spend

more when they do.

Shopping " Entertainment.Sunday, October 16, 2011



Market Change:

Glut of products (new andused).

Organizations scramble.

High competition todifferentiate.

Fewer jobs in the short-run.

Lower incomes.Sunday, October 16, 2011

Ebay explodes (even more)

What happens when your

customers stop buying things they

don't need or focus on the

products, services, and

experiences that are long-lastingand meaningful for them? Where

do you generate revenue if your

l b ff i



Market Change:

Connection to customer iseverything > Lifestyle.

Rise of generics.

Brands must tie toperformance of meaning.

Brand loyalty increases.





We!ve been here before.

Acknowledging our past isn!t

regressive We still see a

progressive future but with values

we!ve had in the past.

The values this country were

founded and built upon weren!twaste and excess. Our great

grand-parents and the Founding

F h ld b h ifi d d d



Won’t somebody pleasethink of the companies!?


I!m sorry if your company makes a

bunch of crap we don!t really need

or isn!t good for people. If you!re

business model requires people to

pay more than they have for

something that doesn!t last, over

and over, it!s time to innovate.Evolve or die. You need a new

business model. We all will need

b i d l dl



Hewlett-PackardWhat does HP do when people cut-back on

printing?


No one decries the need to save the

petticoat industry or the horse-drawn

buggies. If HP has to rethink its

printer business in the face of new

technologies, so be it. They weren!t

always in the printer business

anyway.

This isn!t just an effect of post-

i hi l b



Rickshaw Bags:

Mass CustomizationSunday, October 16, 2011

Business Model: Mass

customization (as an option), no

returns (build to order), returnable

packaging, repairable, evolvable

(baby kit).



Apple, Inc.

Free Services that sell ProductsSunday, October 16, 2011

Examples: Give away services to

sell product

Dematerialize everything else, build

an ecosystem, kill everyone else!s

products.



Telcos:

Free Products to Sell ServicesSunday, October 16, 2011



Freemium (Tiered Services)


Still services: This is why Service

Design is so important.



Facebook:

Be the Platform (Infrastructure)Sunday, October 16, 2011

Still selling services (or data)



Superior Experiences


(Whether product, service, event, or

place). This is why Experience

Design is so important!

BTW, there is always an experience,

whether you design it or not.



Meaningful Experiences


The best experiences of all.




Some Examples: We see elements

of this today. These are both post-

consumer AND more sustainable.




Design for Recycling (and

Upcycling)




Design for (deliberate) Reuse



Play Bank: Tim Bishop, Ingrid Dragotta, Jennifer Pechacek, Nicole Trautsch


Play Bank is a toy ecosystem that

circulates toys from children no

longer interested in them to those

who would be. Like a library and

workshop combined, children bring

in old toys and check-out new ones

and can create their own from partsin the bank. This requires a new

business model that addresses a

l i i



Big Idea/ Panoramic After

not if.. or when... but how (beth)

Bike'Topia: Adam Dole, Beth Berrean, Henry Liu, Jason Hui, Sara Kozlowski, Ayano Hattori


BikeTopia is an innovative bike rental system that

secures bikes via pedal vending machines, tracks

them throughout the city, and offers mobile services

for both bikers and local businesses.



Big Idea/ Panoramic After

not if.. or when... but how (beth)

















Small Steps: Erin Jacobs, Erica Meade, Kathryn Hautanen, Kate Ranson-Walsh


SmallSteps helps people make small, attainable

changes in their lives to be more sustainable,

building on progress, until they reach their goals.

When they complete all four phases, they becomethe next mentors to help others through the

process.



Small Steps: Erin Jacobs, Erica Meade, Kathryn Hautanen, Kate Ranson-Walsh


SmallSteps helps people make small, attainable

changes in their lives to be more sustainable,

building on progress, until they reach their goals.

When they complete all four phases, they becomethe next mentors to help others through the

process.



Urbavore: Amy Guittard, Audrey Ma, Ewa Guzek, Hannah Robinson


Urbavore helps urban farmers, neighbors, and

restaurants find an sell the most local produce.



Legendary: Guillaume Driscoll, Christina Goebel, Sandjar Kozubaev, Lauren Nham, Dave Reinhardt


A new model for durable furniture

that has provenance. This isn’t

possible simply as a set of new

design or product development

processes. It’s not possible just by

adding service, either. You need to

build a new, viable, and sustainablebusiness model to make this kind of

solution work.











Post-Consumer World:Citizens buy less.

They share more.

They repair and reuse.

They sell what they no longer need.

They DIY more.Citizens seek experiences.

They value values and want meaning integrated.

They buy less “stuff” but more services.

They value quality and longevity.

Citizens favor their local communities and businesses.

They travel less (especially for business) but spend more when they do.

Shopping " Entertainment.

Glut of products (new and used).

Organizations scramble.High competition to differentiate.

Fewer jobs in the short-run.

Lower incomes.

Connection to customer is everything > Lifestyle.

Rise of generics.

Brands must tie to performance of meaning.

Brand loyalty increases.




What you can do...




Acknowledge your Bias


Get it down on paper, in a room, etc.

Then shut the book/door and go

meet real people with fresh eyes.



Focus on People


It!s never about technology. TALK to

people/your customers.



Focus on Meaning


... whether you!ve been asked to or

not.

If something must define us, instead

of consumerism and consumption,

why not something that actually

does: meaning.





Accomplishment

BeautyCreation

Community

Duty

EnlightenmentFreedom

Harmony

JusticeOneness

Redemption

Security

Truth Validation

Wonder

15 CORE MEANINGS:


More meaningful experiences aren!t

thrown-out as easily. > more

sustainable solutions and higher

customer loyalty, engagement, and

relationship.



Do your own Research


...otherwise, you have no idea of

where it came from, it!s validity, etc.

Don!t trust what you!re given unless

you trust the people who did the

research (and know their process).



Find Needs, not solutions


Sounds a lot like design thinking/

process, right?



Turn down the wrong work


You can use Meaning to help you

find the right customers, company,

and team. (We used to do this very

thing for projects that promoted

cigarettes, etc.) > now we should

reconsider working on projects that

promote consumerism and waste.



Organization’sMeaningPriorities

CustomerMeaningPriorities

Team/YourMeaningPriorities

Focus

Competitors’ MeaningPriorities


Now, you have a place to start

focusing on meaning. This is what

drives the design.



Focus on the experience


When you find the right experience,

you uncover the best opportunity.



Be aware of the business


You can!t see the opportunity if you

don!t see the system or understand

the business. You don!t have to be

an expert in business but you need

to see where and how the money

flows through the experience.



Design the Business Model


Business Models are

designable ...not merely the

outcome of other business

processes.



Design New Metrics


Gross National Happiness, Genuine

Progress Indicator, others. These

are projects that need designers to

develop and communicate how they

work, what they measure, and why

they!re better. Economists need our

help.



You’re holding a handbook for visionaries, game changers,

and challengers striving to defy outmoded business models

and design tomorrow’s enterprises. It’s a book for the…

written byAlexander Osterwalder & Yves Pigneur

co-created byAn amazing crowd of 470 practitioners f rom 45 countries

designed byAlan Smith, The Movement


This approach has been growing

since the publication of this crowd-

sourced book.



The Business Model Canvas

CostStructure

Key Partners

Key Resources

Channels

Key Activities

Value Proposition

Customer Relationships

Customer Segments

RevenueStreams

www.businessmodelgeneration.comSunday, October 16, 2011

It describes a business model

canvas. Download a PDF for the

first 72 pages of the book (and the

canvas).



www.cca.edu/academics/graduate/design-mba/open

DELIVERYRESOURCES

OFFERPRODUCTIONORGANIZATIONDESIGN

NETWORK/ STAKEHOLDERS

FINANCE

INTENT

EXPERIENCE

BRAND

VALUE

VALUE

INTENT

EXPERIENCE

OFFER

DELIVERY

PRODUCTION

RESOURCES

NETWORK/ STAKEHOLDERSFINANCE

ORGANIZATIONDESIGN

VALUE NEEDS

TACTICS/IMPLEMENTATION(INDUSTRY CONTEXT)

CUSTOMER(MARKET CONTEXT)

STRATEGY(VISION)

t , , t , t . , t ,

t t t t

tt tt t t t , ,

: t t t

t t t t t

t t

t t t


We!ll be discussing an even newer

model today: The Dynamic Value

Model, developed at CCA in the

Fellows Program. Slightly more

complex, integrates a few more

areas. Templates for you to use

today.

This model doesn!t, by default,



C U S T O M E R

I N T E R N A L

( O R G

)

NEEDS

www.cca.edu/academics/graduate/design-mba/openSunday, October 16, 2011

Customer and customer needs are

front and center (where they

belong)—especially in an

increasingly customer-driven

market.



C U S T O M E R

VALUE

I N T E R N A L

( O R G

)

EXPERIENCE

DELIVERY

PRODUCTION

NETWORK/

STAKEHOLDERSFINANCE

ORGANIZATION

DESIGN

RESOURCES

INTENT

OFFER


Only by thinking holistically,

systemically, can we develop

elegant innovations that respond to

actual customer needs.



C U S T O M E R

VALUE

I N T E R N A L

( O R G

)

EXPERIENCE

DELIVERY

PRODUCTION

NETWORK/

STAKEHOLDERSFINANCE

ORGANIZATION

DESIGN

RESOURCES

INTENT

OFFER


Value emerges as a result of

business activities. This isn!t

something declared but something

derived.



C U S T O M E R

I N T E R N A L

( O R G

)

NEEDS


BRAND


Brand, too, is emergent, as it!s a

shadow of the organization seen

and felt by customers through their

experience. We!re not going to

focus on this today.




DELIVERYRESOURCES

OFFERPRODUCTIONORGANIZATIONDESIGN

NETWORK/ STAKEHOLDERS

FINANCE

INTENT

EXPERIENCE

BRAND

VALUE

VALUE

INTENT

EXPERIENCE

OFFER

DELIVERY

PRODUCTION

RESOURCES

NETWORK/ STAKEHOLDERSFINANCE

ORGANIZATIONDESIGN

VALUE NEEDS

TACTICS/IMPLEMENTATION(INDUSTRY CONTEXT)

CUSTOMER(MARKET CONTEXT)

STRATEGY(VISION)

t , , t , t . , t ,

t t t t

tt tt t t t , ,

: t t t

t t t t t

t t

t t t




Case:

SOLID STATE SHOES


What does a <fashion> company do

when fewer people buy fewer goods

they don!t need?



• Customers want new anddifferent (non-mainstream)• Increasingly “local” andsustainably aware• Say that quality is important• Have many pairs of shoes• High loyalty




• Increased scarcity and cost ofquality ingredients

• No significant IP or processes• Lot of material waste• Strategic partnership for leather

• Deliver to wholesalers• No end-user customers• Global supply chain• High inventory costs (sizes)• Fulfill seasonally (sell forward)

• 100% Family-owned• High margin, low volume• Tax-incentives for US jobs• Desire to double sales andincrease profit by 20%

• Med. fixed & high var. costs• Lots of returns• Growth funded by profits

• Quality, respected brand• Family-owned• Heritage, Integrity, Pride,

Craftsmanship, Distinction

• No direct sales: boutiques,high-end stores

• Great customer service (customers feel catered-to)• Enduring style, not trendy• Personal shopping inboutiques

• Limited editions in Collette

• 30% Manufactured in USA and Canada• 70% in Turkey, Bulgaria, and Southeast Asia• Standard production methods• Some specialized training• Subject to worker issues in SE Asia and increased regulat.

• Design is driven internally,not involve manufacturers,customers and buyer

• No CSR strategy• No NGO partnerships• Lots of competitors• Noisy, fragmented market

• Designers disconnected fromoperations decisions

• Constrained logistics team• Light market research• Outsourced IT, production• High training and manag. costsof internal customer service

• Inefficient internal controls anddecision-making

• Wide product style range

• Accessories as well as shoes• No other benefits (no events,places, etc.)

• Standard customer service




That!s it

(for now)

[email protected]


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