Category: Scenarios (page 2 of 6)

VRM/CX + CRM/CX

I’ve been in conversations lately about VRM+CRM. Will they help each other out or crash into each other? It’s an open question. But I think we can find an answer in a current CRM vector: toward what the CRM folks have been calling CX, for Customer eXperience. I first read about it in this column by Mitch Lieberman in October 2010. That was when he met with RightNow, which was later acquired by Oracle. You can see and read the results in this list, which is roughly in chronological order:

Experience is a personal thing. When two parties are engaging with each other, it’s something both create. That’s the challenge here.

How can we make the most of both serial and parallel activities and virtues in customer-vendor relationships? I invite our friends from the CRM/CX world to weigh in here.

And come to this:

It’s on 7-8 August in Minneapolis. I’ll be there. So will a bunch of VRM companies and projects, plus other parties interested in that subtitle there: new directions for personal data.

[This was the second half of Scaling business in parallel, but I decided to break it in two and move the second part here.]

Scaling business in parallel

Companies and customers need to be able to deal with each other in two ways: as individuals and as groups.

As of today companies can deal with customers both ways. They can get personal with customers, and they can deal with customers en masse. Without the latter capability, mass marketing would not be possible.

Customers, on the other hand, can only deal with companies as individuals, one at a time. Dealing with companies as groups is still a challenge. Consider the way you engage companies in the marketplace, both online and off. Your dealings with companies, on the whole, are separate and sequential. Nothing wrong with that, but it lacks scale. Hence: opportunity.

We can arrive at that opportunity space by looking at company and personal dealings, each with two kinds of engagement circuits: serial and parallel.

Start with a small company, say a store with customers who line up at the counter. That store  deals with customers in a serial way:

business, serial

The customers come to the counter, one after another, in a series. Energy in the form of goods goes out, and money comes back.

As companies scale up in size, however, they’d rather deal with many customers in parallel rather than in series. A parallel circuit looks like this:

business, parallel

Here customers are dealt with as a group: many at once, and in the same way. This, in an extremely simplified form, is a diagram of mass marketing. While it is still possible for a company to deal with customers individually, the idea is to deal with as many customers as possible at once and in the same ways.

I use electronic symbols in those circuits because resistance (the zig-zag symbol) adds up in series, while it goes down in parallel. This too is a virtue of mass marketing. Thus one-to-many works very well, and has proven so ever since Industry won the Industrial Revolution.

Over on the customers’ side, the marketplace on the whole looks like this:

customer, serial

The customer goes from one company to the next. This is not a problem on the vendors’ side, except to the degree that vendors would rather customers not shop elsewhere. This is why vendors come up with loyalty programs and other schemes to increase “switching costs” and to otherwise extract as much money and commitment as possible out of the customer.

But, from the customer’s side, it would also be cool if they could enjoy scale in parallel across many companies, like this:

In the physical world this is all but unthinkable. But the Internet makes it very thinkable, because the Net reduces nearly to zero the functional distance between any two entities, and presents an open space across which many connections can be made, at once if necessary, with few limits on the number or scope of possibilities. There is also no limit to the new forms of interaction that can happen here.

For example, a customer could scale in parallel by expressing demand to multiple vendors at the same time, or could change her contact information at once with many companies. In fact this is basically what VRM projects are about: scaling in parallel across many other entites. (Not just vendors, but also elected officials, government agencies, churches, clubs, and so on.)

It is easy to see how companies can feel threatened by this. For a century and a half we in business have made a virtue of “targeting,” “acquiring,” “capturing,” “managing,” “locking in” and “owning” customers. But think about the free market for a minute. Shouldn’t free customers be more valuable than captive ones? Wouldn’t it be better if customers and prospects could send many more, and better, signals to the marketplace, and to vendors as well, if they were capable of having their own native ways of dealing, consistently, across multiple vendors?

We have that now with email and other forms of messaging. But why stop there?

Naturally, it’s easy to ask, Could social media such as Facebook, Google+ and Twitter provide some of what we need here? Maybe, but the problem is that they are not ours, and they don’t work for us — in the sense that they are accountable to us. They work for advertisers. Email, IM and browsing aren’t owned by anybody. They are also substitutable. For example, you can move your mail from Gmail to your own server or elsewhere if you like. Google doesn’t own email’s protocols. No browser company owns HTTP, HTML or any of the Web’s protocols.

The other problem with social solutions is that they’re not personal. And that’s the scale we’re talking about here: adding parallel capabilities to individuals. Sure, aggregation is possible, and a good thing. (And a number of VRM projects are of the aggregating-demand sort.) But the fallow ground is under our own feet. That’s where the biggest market opportunity is located. Also where, still, it is most ignored. Except, of course, here.

[Continued in VRM/CX + CRM/CX.]

VRM at IIW

VRM was a hot topic at IIW last week, with at least one VRM or VRM-related breakout per session — and that was on top of the VRM workshop held at Ericsson on Monday, April 30, the day before IIW started. (Thanks to Nitin Shah and the Ericsson folks for making the time and space available, in a great facility.) Here’s a quick rundown from the #IIW14 wiki:

Tuesday, May 1, Session 1

Tuesday, May 1,Session 2

Tuesday, May 1, Session 3

Tuesday, May 1,Session 4

Tuesday, May 1,Session 5

Wednesday, May 2, Session 1

Wednesday, May 2,Session 2

Wednesday, May 2,Session 3

Wednesday, May 2,Session 4

Wednesday, May 2,Session 5

Thurssday, May 3,Sessions 1-5

On Friday, May 4, I also visited with Jeremie Miller, Jason Cavnar and the Locker Project / Singly team in San Francisco. Very impressed with what they’re up to as well.

Bonus IIW linkage:

Working for you

As more native VRM tools come into the hands of individuals, what happens to the whole supply chain? Or, put another way, what happens to supply in general when there are more and better ways of expressing demand?

I was talking a couple days ago about that with Michael Stolarczyk, one of the world’s leading authorities on supply chains and logistics, when he brought TaskRabbit up. He pointed to this piece in Wired, and it got me thinking about fourth parties.

Right after that conversation I had lunch with Jose B. Alvarez of Harvard Business School, and a former CEO of Stop & Shop/Giant-Landover. One of the points he made was this: “The original purpose of a merchant was to serve as an agent for the customer.”

In other words, second parties (vendors) were also what we’ve been calling fourth parties. That is, agents for the customer.

I think this is where Cluetrain was going in the first place with “Markets are conversations.” In Customer Loyalty Programs That Work, in Working Knowledge (also from Harvard Business School, and published that same day), Maggie Starvish probes Jose’s work on loyalty programs, and concludes with these paragraphs:

“We’re at a place where technologies allow for retailers to have two-way, back-and-forth interactions with customers,” says Alvarez. “With smartphones, you have location-based information, so you can communicate with customers where they actually are.”

Successful loyalty schemes require advanced technology—and age-old techniques. “It’s about going back to the basic roots and origins of retailing,” says Alvarez. “Talk to the customer, listen, find out what they want, and get it for them.”

VRM tools are ones that are the customer’s first, serving individuals as independent actors in the marketplace. In that sense neither TaskRabbit nor current loyalty schemes qualify as pure VRM tools. But the movements here are very friendly toward VRM, and I believe will welcome (or help toward) the emergence of pure VRM tools. Those would be ones, for example, with which the customer arrives with their own means and devices for saying “Hi. Listen. Here’s what I’m looking for.” If real conversation follows — even if it’s between digital agents for both sides — our goal with VRM will be met.

Google’s Wallet and VRM

Yesterday Google opened the curtain on Google Wallet. I think it’s the most important thing Google has launched since the search engine. Here’s why:

Reason #1: We’ve always needed an electronic wallet, especially one in our mobile phone. And, although others have tried to give us one, it hasn’t worked out for them, because…

Reason #2: We’ve needed one from somebody who doesn’t also have a hand in our pocket. Google WalletGoogle is the only company in the world that can pull this off, because it’s the only company in the world that lives to commodify exactly the businesses that desperately need commodification, and to await interesting consequences. I can’t think of a single company that’s better at causing tsunamis of commodification so they can join hundreds of other companies, surfing them to new shores. List the things Google does but doesn’t make money with, and you’ll have a roster of businesses that needed commodification. What Google looks for is what JP Rangaswami and I call because effects: you make money because of those things, not with them. (Note, not talking about “monetization” here. A subtle distinction.) A Google lawyer once told me this strategy was “looking for second and third order effects.” Same thing. Either way, they’re out to give us — and retailers we do business with — a hand. (But they will need to keep it out of our pockets, which includes data we consider personal. We’re the ones to say what that is, and others — including Google, Sprint, Citi and the retailers — need to respect that.)

Reason #3: This reduces friction in a huge way. It’s not an exaggeration when Google says this on their Vision page for the project:

In the past few thousand years, the way we pay has changed just three times—from coins, to paper money, to plastic cards.

Now we’re on the brink of the next big shift.

What weighs your wallet down? What slows you down at checkout? Sometimes it’s pulling out cash, but most times it’s dealing with cards. In the last few years every store, it seems, has been piling on with loyalty cards and keyring tags. This last week Panera Bread started, and watching the results have been a clinic in business fashion gone wrong. The poor folks behind the counter are now forced to ask customers if they have a Panera bread card, and the customers have to either say no (and feel strange), or to produce one from their wallet or key ring. Yesterday I asked the person behind the counter how she liked it. “We don’t need it, and customers don’t want it,” she said. “We’re only doing it because every other store does it. That’s all.” That’s a pain in the pocket nobody needs.

Says Google,

Google Wallet has been designed for an open commerce ecosystem. It will eventually hold many if not all of the cards you keep in your leather wallet today. And because Google Wallet is a mobile app, it will be able to do more than a regular wallet ever could, like storing thousands of payment cards and Google Offers but without the bulk. Eventually your loyalty cards, gift cards, receipts, boarding passes, tickets, even your keys will be seamlessly synced to your Google Wallet. And every offer and loyalty point will be redeemed automatically with a single tap via NFC.

This assumes that the ecosystem will continue to support the kind of loyalty programs we have today. It won’t, because we won’t and that brings me to…

Reason #4: Now customers can truly relate with vendors. That is, if Google Wallet and participating retailers and other players welcome it. See, CRM — Customer Relationship Management — has thus far been almost entirely a sell-side thing. It’s how companies related with you, not how you related with them. They set the rules, they provided the cards, they put up the websites where you filled out long complicated forms, they send you the junk mail, and they do the guesswork about what you might want, usually because you’ve bought something like it before. But what if your phone has your shopping list? What if you want to advertise what you’re looking for, as a personal RFP for something you need right now, and may never need again? Think of this as advertising in reverse, or what Scott Adams (of Dilbert fame) calls “Broadcast Shopping”. This is one example of how …

Reason #5: Now demand can signal supply in great detail. Until now, about the only signals we could send were with cash, cards, and whatever might percolate up the corporate CRM chain from “social” CRM. There’s a lot here (see Brian Solis’ Converation Prism, for example, or follow Paul Greenberg). But those all depended on second (vendor) or third parties (all the petals in Brian’s prism, which actually looks more like a flower). They weren’t your signals. I see no reason why the open commerce ecosystem shouldn’t include that. Why should customers always be the dependent variables and not the independent ones? Speaking of independence…

Reason #6: Now you have your own pricing gun. You can tell a store, or a whole market, what you’re willing to pay for something — or what you might offer along with payment, such as information about your other relationships, or the fact that you just moved here and are likely to be shopping at this store more. (Or that you’re a high-status frequent flyer with another airline, and considering the same for this one.) Why not?

Reason #7: You can take your shopping cart with you. Back when e-commerce began, in 1995, my wife’s sister was the VP Finance for Netscape, so that company was something like family for us, making my wife (not a technical type) an early adopter. One of her first questions back then was one that exposes a flaw that’s been in e-commerce from the start: “Why can’t I take my shopping cart from one store to another?” At least conceivably, now you can. Let’s say you want to shop at Store B while you’re at Store A. This already happens when you scan a QR or a barcode with your smartphone to see if it’s cheaper at Amazon or something. But what if you want to be more sophisticated than that? The implications for retailers can be scary, but also advantageous. After all, retailers have physical locations, which Amazon doesn’t. Retailers can earn loyalty in ways that are as unique as each store, and each person working at a store.

Reason #8: Now you can bring your own data with you. Inevitably, you will have a personal data store, vault, lockerdata wallet (yes, it’s already called that), trust framework — or other combination of means for managing and selectively sharing that data in secure, trustworthy and auditable ways. And your data doesn’t just have to be about shopping. Personal tracking and informatics are getting big now (read Quantified Self for more). That’s stuff we bring to the market’s table as well. The wallet in one’s phone seems a good way.

Reason #9: Now you can actually relate. When a customer has the ability to shop as well as buy, right in his or her wallet — and to put shopping in the contect of the rest of his or her life, which includes far more than shopping alone — retailers can discover advantages other than discounts, coupons and other gimmicks. Maybe you’ll buy from Store B because you like the people there better, because they’re more helpful in general, because they took your advice about something, or because they help your kid’s school. Many more factors can come into play.

Reason #10: Now you’re in a free and open marketplace. Not just the space contained by any store’s exclusive loyalty system. Nor in a “free” market that’s “your choice of captor” (which is one of the purposes of loyalty programs).  Along those same lines…

Reason #11: You don’t have to play calf to every store and website’s cow. The reason you can’t take your shopping cart with you from store to store on the Web is that e-commerce normalized from the start on the calf-cow, slave-master architecture of client-server computing. This is what turned the Web from a peer-to-peer, end-to-end egalitarian greenfield into fenced-off ranchland where vendors built walled gardens for “consumers” who fed on the milk of each site’s exclusive offerings, and also got cookies that helped calf and cow remember each other, but which sometimes also tracked the calves as they wandered off into other gardens. It was a submissive/dominant system from the get-go, and has been flawed for exactly that reason ever since. Google Wallet, at least conceptually, gives you ways in which you can relate to anybody or anything, on your terms and not just theirs. And not just in the old commercial-Web-based calf-cow system. You can divine the bovine right in your pocket, and avoid or correct vendors trying to feed you tainted milk or tracking cookies.

I could go on, but I have a book to write and not much time left. But I consider Google Wallet a move of profound importance, even if it doesn’t work out, so I’m putting this list out there for us to correct, debate or whatever else we need to do . At the very least Google Wallet gives us one thing a BigCo is doing that can mesh well with what the VRM development community has been working on for the last few years. I hope the synergies will get everybody excited.

[Later, in August…] Some additional news:

Stay tuned.

IIW dev job: ListenLog

Craig Burton has a nice tutorial on developing VRM applications, using ListenLog as both an example and a challenge for next week at IIW.

ListenLog is the brainchild of Keith Hopper and the collaborative result of efforts by folks from NPR, PRX and other public radio institutions, as well as the Berkman Center and volunteers from the VRM community. It’s a form of self-tracking (see The Quantified Self for more on what that’s about), and also part of a larger effort that includes EmanciPay.

You’ll already find it on the Public Radio Player for iPhone, which is free and a great app. If you’re using an iPhone, download it, then go (as the tutorial says) to the settings and turn on logging. What you’ll have is your own growing pile of personal data, that you control. (No, it’s not yet in your all-purpose personal data store, locker or vault, but that’s another step and we can talk about that too. It is, for sure, in your Personal Data Ecosystem.)

Here’s where the tutorial pauses, for now:

to be done

One of our jobs next week is fulfilling those needs. This is light-duty hacking of the sort we can do around a table in one afternoon. (For those of us who can hack. Alas, the only code I know is Morse.)

Here’s where moving forward on this will lead:

  1. Better knowledge for listeners about what they actually value.
  2. Necessary groundwork for EmanciPay, which is a new listener-driven business model for public radio — and for everything else thats available for free but worth more than that.
  3. More money for public radio (because the old models won’t go away).
  4. More money for every business that produces free goods that are worth more than that. (For example music, newspapers, magazines, blogs and so on.)
  5. Experience and modeling for other similar projects.

Should be fun work.

Bonus thought: This might also work as something that ties in with the Knight-Mozilla News Innovation Challenge. (Keith will be there, I think.) Hey, let’s connect the two. Should be fun. Just tweeted this as well.

Knight News Challenge entry for EmanciPay

Below is a copy of our entry to the Knight News Challenge. It actually hadn’t crossed my mind to put one together until last Monday, when I saw that they have a category for sustainability. It says here,

Sustainability: Considers new economic models supporting news and information. New ways of conducting and consuming journalism may require new ways of paying for it. We’re open to ideas for generating revenue as well as ways to reduce costs.

EmanciPay is exactly that.

Three years ago, when ProjectVRM was new, we applied and made it to the second round. Back then EmanciPay was still called PayChoice. (We changed it because we wanted a better name with a URL we could buy, which we did.) Sustainability wasn’t front-burner for Knight then, I guess. Now it is. And, in the meantime, much VRM development has been going in the sustainability direction, including work behind the r-button (some context here). Special thanks for that goes to David Karger, Oshani Seneviratne and Adam Marcus of CSAIL at MIT,  our Google Summer of Code student, Ahmad Bakhiet of Kings College London and Renee Lloyd (a fellow veteran Berkman Center fellow) for their good work on that.

That work is built on code Adam and Oshani had already done on Tipsy, which has its own Knight News Challenge entry as well. (This is all open source stuff, so it can be leveraged many ways.) I met Adam and Oshani through David Karger, who I met through Keith Hopper of NPR, a stalwart contributor to the VRM community from the beginning. Keith is the brainfather of ListenLog, an application you’ll find in your Public Radio Player, from PRX, which is run by Jake Shaprio (another Berkman vet, and a star with the band Two Ton Shoe). When I ran the idea of applying again past Jake (who has an exceptional track record at winning these kinds of things), he said “Go for it,” so we did.

Another VRM effort in the Knight News Challenge  is Tom StitesBanyan Project. Tom has forgotten more about journalism, and its business, than most of us will ever know, and has been hard at work on Banyan for the last several years, rounding up good people and good ideas into one coherent system that could use support. Here’s the Banyan application to the News Challenge. It seems not to appear on the roster at the KNC site right now. I’m told that’s just a glitch. So check it out at that last link in the meantime.

Meanwhile, here are the parts of the EmanciPay entry that matter:

Project Title:

EmanciPay:
a user-driven system for generating revenue and managing relationships
Requested amount from Knight News Challenge:

$325,000

Describe your project:

EmanciPay is the first user-driven revenue model for news and information media. With EmanciPay, users can easily pay whatever they like, whenever they like, however they like — on their own terms and not just those controlled by the media’s supply side.

EmanciPay will also provide means for building genuine two-way relationships between the consumers and producers of media, rather than the confined relationships defined by each organization’s default subscription and membership systems .

EmanciPay is among a number of VRM (Vendor Relationship Management) tools that have been in development for the last several years, with guidance from ProjectVRM, which is led by Doc Searls at Harvard’s Berkman Center for Internet & Society. Here is a list of VRM development projects.

Starting early this year, Doc and other members of the VRM community have been working on EmanciPay with developers at MIT/CSAIL and Kings College London. The MIT/CSAIL collaboration is led by David Karger and ties in with work he and others are doing with Haystack. This work includes developing a UI called r-button for offering payment and for creating and managing relationships between users and producers.

The r-button is the first Web UI element that allows a site to signal openness to the user’s own terms of engagement. Toward this end work has also begun on terms-matching, which will allow engagement to go forward without the user being forced to “accept” terms on a site’s take-it-or-leave-it basis — thus eliminating a major source of friction in the marketplace. (Note: These one sided agreements are increasingly coming under fire by courts and regulators, thus creating a higher risk profile for organizations using them. EmanciPay seeks to lower or eliminate that risk altogether.)

As with Creative Commons, terms will be expressed in text and symbols that can be read easily by both software and people.

While there is no limit to payment choice options with EmanciPay, we plan to test these one at a time. The first planned trials are with Tipsy, which is itself the subject of another Knight News Challenge application, here. (Note: EmanciPay is not a micropayments system. It is a way for users to choose whatever amounts and methods of payment they like, whenever they like, with maximum ease.)

ProjectVRM has also been working with PRX and other members of the public radio community on ListenLog (the brainchild of Keith Hopper at NPR), which can currently be found on the Public Radio Player, an iPhone app that has been downloaded more than 2 million times, so far.

Other VRM development efforts, on identity and trust frameworks, and personal data stores (PDSes), will also be brought in to help with EmanciPay.

The plan now is to step up code development, get the code working in the world, test it, improve it, work with media and their CRM suppliers, and drive it to ubiquity.

How will your project improve the delivery of news and information to geographic communities?:

Two ways.

The first is with a new business model. Incumbent local and regional media currently have three business models: paid delivery (subscriptions and newsstand sales), advertising, and (in the case of noncommercial media) appeals for support. All of these have well-known problems and limitations. They are also controlled in a top-down way by the media organization, and cannot be managed from the user’s side, using tools native to the user. Thus they lack insight into what buyers really want. Accordingly, what we propose is a new supplementary system that makes it as easy as possible for anybody to pay anything for whatever they like, whenever they like, without going through the friction of becoming a “member” or otherwise coping with existing payment systems.

The second is a system for creating and sustaining relationships between the consumers and producers of news and information. EmanciPay is one among a larger box of VRM (vendor relationship management) tools by which individual consumers of news can also participate in the news development process. These tools are based on open source code and open standards, so they can be widely adopted and adapted to meet local needs.

CRM software companies, many of which supply CRM (customer relationship management) systems to media organizations, are also awaiting VRM developments. (The cover and much of a recent CRM Magazine were devoted to VRM.)

What unmet need does your proposal answer?:

EmanciPay meets need for maximum freedom and flexibility in paying for news and information, and for a media business model that does not depend only on advertising or the frictions of subscriptions and membership systems.

Right now most news and information is already free of charge on the Web, whether or not it costs money to subscribe or to buy those goods on newsstands. Meanwhile, paying for those goods voluntarily today ranges from difficult to impossible. Even the membership systems of public broadcasting exclude vast numbers of people who would contribute “if it was easy”.

EmanciPay will make it easy for consumers of news to become customers of news. It will allow customers to pay for what they want, when they want, in ways they want, and to initiate actual relationships with the news organizations they pay — on users’ own terms as well as those of news organizations.

How is your idea new?:

Equipping individuals with their own digital tools for exerting and controlling their means of engagement with suppliers is a new idea. So is basing those tools on open source and open standards.

There have also been no tools for expressing terms of engagement that match up with — and reform — those of sellers, rather than just submitting to what are known in law as contracts of adhesion: ones in which the dominant party is free to change what they please while the submissive party is nailed to whatever the dominant party dictates. Contracts of adhesion have been pro forma on the Web since the invention of the cookie in 1995, and EmanciPay is the first system developed to replace them. This system is entirely new, and is being developed by legal experts on the ProjectVRM team, aided by friends at Harvard Law School and other interested institutions. Once in place, its implications and reformations are likely to exceed even those of Creative Commons, because they address the demand as well as the supply side of the marketplace — and (like Creative Commons) do not require changes in standing law.

EmanciPay is also new in the sense that it is distributed, and does not require an intermediary. As with email (the protocols of which are open and distributed, by design), EmanciPay supports any number of intermediary services and businesses providing services to assist it.

What will you have changed by the end of the project?:

First, we will have changed the habits and methods by which people pay for the media goods they receive, starting with news and information.

Second, we will have established a new legal framework for agreements between buyers and sellers on the Web and in the networked world.

Third, we will have introduced to the world an intention economy, based on the actual intentions of buyers, rather than on guesswork by sellers about what customers might buy. (The latter is the familiar “attention economy” of advertising and promotion.)

Fourth, we will have introduced relationship systems that are not controlled by sellers, but instead are controlled and driven by the individuals who are each at the centers of their own relationships with many different entities. Thus relationships will be user-driven and not just organization-driven.

What terms best describe your project?:

Bold, original, practical, innovative and likely to succeed.

(I left out stuff where I was asked to flatter myself. Not my style; but hey, they made me do it.)

So far the place has 207 views and 20 ratings. It would help us if you could view it too, and rate it kindly. Recommendations going forward are welcome too.

And do the same for Tipsy and Banyan.

VRM+FSW+PDS

Markus 3 visionsHere’s a great video by Markus Sabadello. It draws, literally, the connections between VRM, the Federated Social Web, and Personal Data Stores.

Here’s his blog post on the same topic, which also includes the video. Dig ’em.

In case you’re wondering, he’s standing in Austria, with the Danube and Slovakia in the distance.

Bowling a data strike

In 3 Tech Themes for the Next Decade, Tim Beyers bowls a VRM strike in The Motley Fool. Or maybe a spare, if we count one pin still standing, but sure to fall after the other two. Specifically…

1. Computing will become ever more distributed. This refers to cloud computing, but also to the idea that processing power, storage, memory, and even code can be spread across multiple networks and multiple geographic areas, yet still deliver value. One company I saw, 80legs, has software that crawls the Web with the help of tens of thousands of computers that donate CPU power when they’re idle. Talk about rebellious.

2. Raw data will become actionable data. All sorts of companies are talking about aggregating, slicing, analyzing, and compiling data from the dozens of social media sources out there, Twitter included. Talk centered on “activity streams” that express everything we’re doing online. Maybe that’s candy for the digital voyeurs among us, but I’m not sure there’s much value in publishing such streams. Regardless, it seems clear that we’ll see more data organized socially — perhaps like what Google (Nasdaq: GOOG) proposes with its new social network, Buzz.

3. More customer control. Doc Searls, a co-author of the 1999 landmark book and website The Cluetrain Manifesto, put it best to me in a conversation on the first night of Defrag. “I want to get to the point where demand leads supply.” He wants customers, not vendors, to take control.

The standing pin is in point #2. What we want is for people to control data personally, not just socially. Having “social” data may help you think you can paint a better target on a customer’s back; but it doesn’t make you any more friendly to the customer. And it won’t win you individual hearts and minds either. Improving a pain in the ass doesn’t make it a kiss.

If demand leads supply, as Tim and I agree about in point #3, customers need to be the points of integration for their own data, and the points of origination for what gets done with it. When that happens, pin #2 gets knocked down by #3.

The means are not yet here, but they will be. And once they are, there will be many new places for Motley Fool readers to place their bets.

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