Category: Vertical ideas (page 2 of 6)

The right frame for relationship is personal, not social

The short answer to Brian Solis‘s headline question — Are Businesses Becoming the New Big Brother in Social Media? — is no, because they’re not that smart. In the body copy and graphics of his excellent post, Brian explains why. Here’s one sample:

There are several other images like that, each of which says something we — as users and customers — have known all along, but companies spying on us (even for our own good) don’t. Or do, but have rationalized spying anyway, because that’s all they know how to do. So far.

Brian:

Considering that 58% want you to engage in times of need, 42% wish to hear from you in good times, 64% only want you listening to be at their beck and call, and half of all consumers don’t want you listening at all, what are you to do?

Obviously social media, and specifically social listening, isn’t going away. But it does take tactfulness, genuine intentions and diplomacy to listen, learn, and engage (directly or indirectly) in ways that consumers feel recognized and important. It’s hard to imagine that anyone who says something negative or positive only to have it appreciated and considered by an organization will feel anything other than thankful.

Agreed. Especially if the frame is still a social one, and the interplay happens on social media (meaning Facebook and Twitter, mostly).

But relationships of human beings are personal, not just social.

The problem I have with my car or my airline is not a social one. It’s personal. Obviously, I can make it social, and that’s how Social CRM works today: I complain on Twitter or Facebook. But why should I have to go through Facebook or Twitter to get a dialog going with a human being at a company providing me a product or service?

What we need is VRM. There is lots of VRM development going on, but we’re still missing VRM tools that match up with CRM tools. It’s as simple as that. Many are in progress, but they aren’t here yet, in the sense that any one of us knows we can use them, on our phones or computers, to get through to somebody on the other side, and to deal at a machine level with the stuff that machines handle best.

CRM can’t do it alone, and it’s wrong to expect it to do what it can’t. It takes two hands to clap. The missing hand for CRM, all along, has been VRM one.

What we need, I believe, at this point, is a few CRM-facing VRM companies and developers to get together with CRM developers who are ready to build out their side of VRM+CRM relationships. D2D: Developer to Developer.

Some of the VRM developers we need are on this list. Others will need to step up. And to do it soon, because it’s becoming clear at last that both SCRM and CRM can’t get it done alone.

VRM development work

I’ll be having a brown bag lunch today with a group of developers, talking about VRM and personal clouds, among other stuff that’s sure to come up. To make that easier, I’ve copied and pasted the current list from the VRM developers page of the ProjectVRM wiki. If you’d like to improve it in any way, please do — either on the wiki itself, or by letting us know what to change.

While there are entire categories that fit in the larger VRM circle — quantified self (QS) and personal health records (PHRs) are two that often come up — we’ve tried to confine this list to projects and companies that directly address the goals (as well as the principles) listed on the main page of the wiki.


Here is a partial list of VRM development efforts. (See About VRM). Some are organizations, some are commercial entities, some are standing open source code development efforts.

SOFTWARE and SERVICES
Intentcasting
AskForIt † – individual demand aggregation and advocacy
Body Shop Bids † – intentcasting for auto body work bids based on uploaded photos
Have to Have † – “A single destination to store and share everything you want online”
Intently † – Intentcasting “shouts” for services, in the U.K.
Innotribe Funding the Digital Asset Grid prototype, for secure and accountable Intentcasting infrastructure
OffersByMe † – intentcasting for local offers
Prizzm †- social CRM platform rewarding customers for telling businesses what they want, what they like, and what they have problems with
RedBeacon † – intentcasting locally for home services
Thumbtack † – service for finding trustworthy local service providers
Trovi intentcasting; matching searchers and vendors in Portland, OR and Chandler, AZ†
Übokia intentcasting†
Zaarly † intentcasting to community – local so far in SF and NYC
Browser Extensions
Abine † DNT+, deleteme, PrivacyWatch: privacy-protecting browser extentions
Collusion Firefox add-on for viewing third parties tracking your movements
Disconnect.me † browser extentions to stop unwanted tracking, control data sharing
Ghostery † browser extension for tracking the trackers
PrivacyScore † browser extensions and services to users and site builders for keeping track of trackers
Databases
InfoGrid – graph database for personal networking applications
ProjectDanube – open source software for identity and personal data services
Messaging Services and Brokers
Gliph †- private, secure identity management and messaging for smartphones
Insidr † – customer service Q&A site connecting to people who have worked in big companies and are willing to help when the company can’t or won’t
PingUp (was Getabl) †- chat utility for customers to engage with merchants the instant customers are looking for something
TrustFabric † – service for managing relationships with sellers
Personal Data and Relationship Management
Azigo.com † – personal data, personal agent
ComplainApp † – An iOS/Android app to “submit complaints to businesses instantly – and find people with similar complaints”
Connect.Me † – peer-to-peer reputation, personal agent
Geddup.com † – personal data and relationship management
Higgins – open source, personal data
The Locker Project – open source, personal data
Mydex †- personal data stores and other services
OneCub †- Le compte unique pour vos inscriptions en ligne (single account for online registration)
Paoga † – personal data, personal agent
Personal.com † – personal data storage, personal agent
Personal Clouds – personal cloud wiki
Privowny † – privacy company for protecting personal identities and for tracking use and abuse of those identities, building relationships
QIY † – independent infrastructure for managing personal data and relationships
Singly † – personal data storage and platform for development, with an API
Transaction Management
Dashlane † – simplified login and checkout
Trust-Based or -Providing Systems and Services
id3 – trust frameworks
Respect Network † – VRM personal cloud network based on OAuth, XDI, KRL, unhosted, and other open standards, open source, and open data initiatives. Respect Network is the parent of Connect.Me.
Trust.cc Personal social graph based fraud prevention, affiliated with Social Islands
SERVICE PROVIDERS OR PROJECTS BUILT ON VRM PRINCIPLES
First Retail Inc. † commodity infrastructure for bi-directional marketplaces to enable the Personal RFP
dotui.com † intelligent media solutions for retail and hospitality customers
Edentiti Customer driven verification of idenity
Real Estate Cafe † money-saving services for DIY homebuyers & FSBOs
Hover.com Customer-driven domain management†
Hypothes.is – open source, peer review
MyInfo.cl (Transitioning from VRM.cl) †
Neustar “Cooperation through trusted connections” †
NewGov.us – GRM
[1] † – Service for controlling one’s reputation online
Spotflux † malware, tracking, unwanted ad filtration through an encrypted tunnel
SwitchBook † – personal search
Tangled Web † – mobile, P2P & PDS
The Banyan Project– community news co-ops owned by reader/members
TiddlyWiki – a reusable non-linear personal Web notebook
Ting † – customer-driven mobile virtual network operator (MVNO – a cell phone company)
Tucows †
VirtualZero – Open food platform, supply chain transparency
INFRASTRUCTURE
Concepts
EmanciPay – dev project for customer-driven payment choices
GRM: Government Relationship Management – subcategory of VRM
ListenLog – personal data logging
Personal RFP – crowdsourcing, standards
R-button – UI elements for relationship members
Hardware
Freedom Box – personal server on free software and hardware
Precipitat, WebBox – new architecture for decentralizing the Web, little server
Standards, Frameworks, Code bases and Protocols
Datownia † – builds APIs from Excel spreadsheets held in Dropbox
Evented APIs – new standard for live web interactivity
KRL (Kinetic Rules Language) – personal event networks, personal rulesets, programming Live Web interactions
Kynetx † – personal event networks, personal rulesets
https://github.com/CSEMike/OneSwarm Oneswarm] – privacy protecting peer-to-peer data sharing
http://www.mozilla.org/en-US/persona/ Mozila Persona] – a privacy-protecting one-click email-based way to do single sign on at websites
TAS3.eu — Trusted Architecture for Securely Shared Services – R&D toward a trusted architecture and set of adaptive security services for individuals
Telehash – standards, personal data protocols
Tent – open decentralized protocol for personal autonomy and social networking
The Mine! Project – personal data, personal agent
UMA – standards
webfinger – personal Web discovery, finger over HTTP
XDI – OASIS semantic data interchange standard
PEOPLE
Analysts and Consultants
Ctrl-SHIFT † – analysts
Synergetics † – VRM for job markets
VRM Labs – Research
HealthURL – Medical
Consortia, Workgroups
Fing.org – VRM fostering organization
Information Sharing Workgroup at Kantara – legal agreements, trust frameworks
Pegasus – eID smart cards
Personal Data Ecosystem Consortium (PDEC) – industry collaborative
Meetups, Conferences, and Events
IIW: Internet Identity Workshop – yearly unconference in Mountain View
VRM Hub – meeting in LondonNOTES:
† Indicates companies. Others are organizations, development projects or both. Some development projects are affiliated with companies. (e.g. Telehash and The Locker Project with Singly, and KRL with Kynetx.)
A – creating standard
B – Using other standards
1 – EventedAPI

Intentcasting

I’ve lately been posting under Dave Winer‘s threads, using an OPML editor. One of Dave’s latest posts bowls right up a big VRM alley, as he says in this tweet here. That alley is Intentcasting.

From my reply:

In the VRM development community, we started out calling the latter category “Personal RFPs,” but in the last few months we’ve started calling it Intentcasting. (Scott Adams of Dilbert fame called it “broadcast shopping.”)

A partial list of intentcasting developers is listed here.

An intentcasting scenario ten years hence is described in my Wall Street Journal essay from July. Let’s make it sooner than that. 🙂

Also take a look at this video demo of an intentcasting scenario, produced by @HeatherVescent for Innotribe, the innovation arm of SWIFT, the Belgium-based nonprofit that transfers $trillions per day:

That involves the Digital Asset Grid, which was demo’d two weeks ago in Osaka at SWIFT’s Sibos conference. A number of VRM developers have been involved with that, as well as myself. The main two contributing to the prototype, and there to demo it at Sibos, were Phil Windley of Kynetx and Drummond Reed of Respect Network. Phil has a nice rundown on the session.

A huge thanks to @Petervan for leading the whole project, over the last two years.

Here’s the current list of intentcasting developers at the ProjectVRM wiki:

AskForIt † – individual demand aggregation and advocacy
Body Shop Bids † – intentcasting for auto body work bids based on uploaded photos
Have to Have † – “A single destination to store and share everything you want online”
OffersByMe † – intentcasting for local offers
Prizzm †- social CRM platform rewarding customers for telling businesses what they want, what they like, and what they have problems with
RedBeacon † – intentcasting locally for home services
Thumbtack † – service for finding trustworthy local service providers
Trovi intentcasting; matching searchers and vendors in Portland, OR and Chandler, AZ†
Übokia intentcasting†
Zaarly † intentcasting to community – local so far in SF and NYC

I know there are more, and that the descriptions need updating and de-bugging. That’s why I’m listing these here. Write to me with corrections, or fix the wiki yourself. (If you’re not known to it, you’ll need to go through the registration thing.)

Linklings

Here’s an overdue compilation of stuff I’ve been saving up to share. Many items have slipped through the cracks, but I want to get at least these up.

The plural of personal is social, by JP Rangaswami. The punchlines (read through — there are many):

Business is personal. It’s about relationships. It has always been so. Until we tried to forget it and concentrated on making money, not shoes. [As Peter Drucker said, people make shoes, not money]. Then, for a short while, business became not-personal.

As the Cluetrain guys signalled way back in 1999, the web was changing all that. Business was becoming personal again.

It comes as no surprise to me that salesforce.com was born during those heady times, as business started becoming personal again. It comes as no surprise to me that Marc Benioff understood that the plural of personal is social, and that it’s in the DNA of the company that he and Parker Harris founded. That’s why I went to work for them.

“Social” is not a layer. “Social” is not a feature. “Social” isn’t a product.

Social is about bringing being human back into business. About how we conduct business. About why we conduct business.

Social is something in people’s hearts, in people’s beings, in their DNA.

Man is born social.

Many companies were not.

And the companies that weren’t, they can’t just become social by buying layers or features or even products. Porcine unguents, nothing more.

You need to be reborn social.

You need to start thinking of the customer as someone to have a relationship with, to get to know, to invest in, to trust, to respect.

And you need to get everyone in the company to think that way, to act that way, in everything they do.

And you need to do this everywhere, not just with your customers. Not just with your supply web or your trading partners. Not just with your staff and your consultants.

Everyone. Everywhere.

The plural of personal is social.

Proof That Loyalty Is For Suckers: Best Customers Get Penalized With Higher Bills, by Brad Tuttle in Time. It begins,

We appreciate your business. And as thanks for being a loyal customer all these years, we’re going to overcharge you.

Auto insurers and other service providers don’t say this explicitly, of course. But that’s the message sent via the rates they charge different customers.

The curious, but obviously profitable business model, in which new customers get wooed with discounts and special deals, while the oldest, most loyal, best customers are “thanked” with bills that escalate over time, is standard practice among pay TV and wireless providers. The companies play up the idea that their products and services come with special introductory rates for new customers, rather than noting that there are penalties for customers who stick with the business for the long haul and don’t complain. But no matter which way the rate changes are spun, the results are the same.

Some VRooM-ish tools and services:

  • YaCy: “Web search by the people, for the people.” Some copy:  “YaCy is a free search engine that anyone can use to build a search portal for their intranet or to help search the public internet. When contributing to the world-wide peer network, the scale of YaCy is limited only by the number of users in the world and can index billions of web pages. It is fully decentralized, all users of the search engine network are equal, the network does not store user search requests and it is not possible for anyone to censor the content of the shared index. We want to achieve freedom of information through a free, distributed web search which is powered by the world’s users.”
  • Tails: “The amnesiac incognito live system.” Copy: “It helps you to use the Internet anonymously almost anywhere you go and on any computer but leave no trace using unless you ask it explicitly.”
  • Silent Circle: “Private encrypted communications tools.” Email, mobile phone, VoIP, text. Scroll down to founders & leadership. One is Phil Zimmerman, father of PGP.
  • Request Policy is “an extension for Mozilla browsers that increases your browsing privacysecurity, and speed by giving you control over cross-site requests.”

Market Research (MR to its denizens) gets an earful about VRM and The Intention Economy in
The 21st Century Battle for the Future of MR has begun: Empowered Consumers Versus “Darth Data”, by Kevin Lonnie in The Greenbook Blog.

I see some hope for getting more digital books out of silos in An RDF for Books, by Brian O’Leary.

For the privacy corner of VRM, dig Privacy, Masks and Religion, by Omer Tene in Concurring Opinions. It begins, “One of the most significant developments for privacy law over the past few years has been the rapid erosion of privacy in public.”

Klint Finley in TechCrunch makes some right-on observations about The Cloud, though he says “there being a few examples of … “vendor relationship management” idea in the wild, it still feels like vaporware to me.” Obviously I think he’s wrong, but we report the negative stuff here too. On the positive side, Scott Merrill wrote Doc Searls Would Like You to Join Him in the The Intention Economy, also in TechCrunch, back in May.

From Selling You: Not Just on Facebook, by Haydn Shaughnessy writes this in Forbes:

The reality is we need a different way of thinking about data, and in an age marked by innovation we shouldn’t find a reframe too difficult. We shouldn’t but we do. Generations of marketers have been brought up on an adversarial view of the customer, the target, the win…

In all the discussions we’ve had here in Forbes about social business we have yet to stray into the use and purpose of social data, as if we too largely accept that the adversarial view is the only one.

A couple of days back I tried to reflect an alternative view in for, example, how we might use LinkedIn data – it’s not only my view of course and I don’t want to claim any originality in it. For five years or more, maybe as far back as The ClueTrain Manifesto, people like Doc Searls have been arguing that the web makes a better commerce engine if we recognize all the power symmetries it brings. And there is an increasing number of projects that are taking up that logic.

CRM type data is old school – Tesco in the UK had signed up more than 15 million people to its ClubCard by 2009, that is over a third of the adult population of the country. It’s what companies did before the web. But it seems to be continuing even now that we have new possibilities.

There is no need to collect inference data on people and their possible choices. There is no adversary called customer. We have scaled up human interaction online where we can get closer to asking people, suggesting to them, and interacting with them.

So the future actually belongs to companies that take a symmetrical view of power…

From Another Bubble; Not Housing, by Francine Hardaway of Stealthmode Blog in Business Insider:

Guys, we ARE in a bubble. I don’t care what you say. As an outsider, I can see it…

Like Facebook, Pinterest and Instgram have valuations that are guesses about the future of advertising.Will they be the next great places to advertise as we shift to mobile?

Pinterest may be worth more “nothing” than Instgram, however, because as Scoble pointed out, women have buying power, which is why brands cozy up to mommy bloggers. But they haven’t bought BlogHer, the platform on which those women express opinions, have they? Lisa, Jory and Elisa were pioneers in bringing women’s voices to the marketplace, and no one has offered them a billion. That’s because BlogHer is not a tool. But it should expose also the fact that simply being favored by women doesn’t confer $7b in value on a company.

More worrisome is the supposition that these apps will someday be good carriers of mobile advertising, even though as yet the advertising industry hasn’t solved the online ad effectiveness problem and even Facebook reported diminished revenues this quarter.

The advertising industry is in upheaval, over the value of online advertising per se, before it even tackles mobile. Publishers are going under right and left because customers don’t want to see ads online, and truly hate them on mobile . Here, especially, the user will control the conversation.

So the valuations of Pinterest and Instgram/FB are merely expensive guesses about the future of advertising, about whether the ad tech industry will figure out mobile in a non-invasive way. Yes, the open graph will be part of it, and the advertising will be targeted. But I am guessing that Doc Searls will be quoted here gain and again: markets are conversations, and customers will control them.

In Vendor Relationship Management: Making the Customer King, Stephen F. DeAngelis visits both The Intention Economy and The Customer As a God (my Wall Street Journal essay from July)

 

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:

Let’s fix the car rental business

Lately  (@ronlieber), the Your Money editor and columnist for the New York Times, has been posting pieces that expose a dysfunction in the car rental marketplace — one that is punishing innovators that take the sides of customers. The story is still unfolding, which gives us the opportunity to visit and think through some VRM approaches to the problem.

Ron’s first piece is a column titled “A Rate Sleuth Making Rental Car Companies Squirm,” on February 17, and his second is a follow-up column, “Swatting Down Start-Ups That Help Consumers,” on April 6. Both stories are about , a start-up that constantly researches and re-books car rentals for you, until you get the lowest possible price from one of them. That company wins the business, at a maximized discount. The others all lose. This is good for the customer, if all the customer cares about is price. It’s bad for the agencies, since the winner is the one that makes the least amount of money on the rental.

In the second piece, Ron explains,

The customer paid nothing for the service, and AutoSlash got a commission from Travelocity, whose booking engine it rented. This was so delightful that it felt as if it might not last, and I raised the possibility that participating companies like Hertz and Dollar Thrifty would bail out, as Enterprise and the company that owns Avis and Budget already had. I encouraged readers to patronize the participants in the meantime to reward them for playing along. Well, they’ve stopped playing. In the last couple of weeks, Hertz and the company that owns both Dollar and Thrifty have turned their backs on AutoSlash — and for good reason, according to Hertz: AutoSlash seems to have been using discount codes that its customers were not technically eligible for.

On its site, AutoSlash put things this way (at that last link):

We’re disappointed that these companies have now chosen to reverse course and adopt this anti-consumer position, after having participated in this site since its launch in mid-2010. Apparently, with more customers booking reservations through our service, they felt they could no longer support our consumer-friendly model of automatically finding the best discount codes and re-booking when rates drop. AutoSlash will not waver in our objective to help people get a great deal on their rentals. We have exciting product plans on the horizon to make our site even more useful to you..

On the same day as his second column, Ron ran a blog post titled “AutoSlash, AwardWallet, MileWise and the Travel Bullies,” in which he points to airlines as another business with the same problems — and the same negative responses to rate-sleuths:

American Airlines and Southwest Airlines have made it clear that they do not want any third party Web site taking customers’ AAdvantage or Rapid Rewards frequent flier balances and putting them on a different site where people can view them alongside those from other loyalty programs. This comes at a loss of convenience to customers, and the airlines make all sorts of specious arguments about why this is necessary. Meanwhile, sites like  and  are less useful than they would be otherwise without a full lineup of airline account information available. But there’s a the bigger question here: Why can’t the big travel players simply fix their archaic business models and add these nifty features to their Web sites and stop spending energy ganging up on start-ups who unmask their flaws?

The answer comes from , of Dilbert fame. By Scott’s definition, the big travel players are a “confusopoly.” They see what Ron calls a “flaw” — burying the customer in a snowstorm of discounts intended both to entice and to confuse — as a feature, rather than a bug. Here’s Scott:

A confusopoly is any group of companies in a particular industry that intentionally confuses customers about their pricing plans and products. Confusopolies do this so customers don’t know which one of them is offering the best value. That way every company gets a fair share of the confused customers and the industry doesn’t need to compete on price. The classic examples of confusopolies are phone companies, insurance companies, and banks.

Car rental agencies are clearly confusopolies. So are airlines. Dave Barry explains how it is that no two passengers on one airplane pay the same price for a seat:

Q. So the airlines use these cost factors to calculate a rational price for my ticket?
A. No. That is determined by Rudy the Fare Chicken, who decides the price of each ticket individually by pecking on a computer keyboard sprinkled with corn. If an airline agent tells you that they’re having “computer problems, ” this means that Rudy is sick, and technicians are trying to activate the backup system, Conrad the Fare Hamster.

There are a few exceptions. One is , which competes through relatively simple seat pricing and unconfusing policies (e.g. no seat assignments and “bags fly free”). But even Southwest plays confusing games. For example, I just went to Southwest to make sure the URL was right (it used to be iflyswa.com, as I recall), and got intercepted by a promo offer, for a gift card. So, for research purposes, I filled it out. That got me to this page here:

Note that there is no place to take the last step. The “Your Info Below” space is blank. Everywhere I click, nothing happens. Fun. (Is it possible this isn’t from Southwest at all? Maybe somebody from Southwest can weigh in on that.)

So, a confusopoly.

What can we do? Governments fix monopolies by breaking them up. But confusopolies come pre-broken. That’s how they work. There is no collusion between Hertz and Budget, or between United and American. They are confusing on purpose, and independently so. No doubt they have their confusing systems fully rationalized, but that doesn’t make the confusion less real for the customer, or less purposeful for the company.

Let’s look a bit more closely at three problems endemic to the car rental business, and contribute to the confusopoly.

  1. Cars, like airlines and their seats, have become highly generic, and therefore commoditized. Even if there is a difference between a Chevy Cruze and a Ford Focus, the agencies mask it by saying what you’ll get is some model of some maker’s car, “or similar.” (I’ve always thought one of the car makers ought to just go ahead and make a car just for rentals, and brand it the “Similar.”)
  2. The non-price differentiators just aren’t different enough. For example, I noticed that Enterprise lately forces its workers to go out of their way to be extra-personal. They come out from behind the counter, shake your hand, call you by name, ask about your day, and so on. Which is all nice, but not nicer for most of us than a lower price than the next agency.
  3. The agencies’ CRM (Customer Relationship Management) systems don’t have enough to work with. While Enterprise is singled out here and here for having exceptional CRM, all these systems today operate entirely on the vendors’ side. Not on yours or mine. Each of is silo’d. How each of us relates to any one agency doesn’t work with the others. This is an inconvenience for us, but not for the agencies, at least as far as they know. And, outside their own silo’d systems, they can’t know much, except maybe through intelligence they buy from “big data” mills. But that data is also second-hand. No matter how “personalized” that data is, it’s about us, not directly by us or from us, by our own volition, and from systems we control.

A few years ago I began to see these problems as opportunities. I thought, Why not build new tools and systems for individual customers, so they can control their own relationships, in common and standard ways, with multiple vendors?  And, What will we call the result, once we have that control? My first answer to those questions came in a post for in March, 2006, titled The Intention Economy. Here are the money grafs from that one:

The Intention Economy grows around buyers, not sellers. It leverages the simple fact that buyers are the first source of money, and that they come ready-made. You don’t need advertising to make them. The Intention Economy is about markets, not marketing. You don’t need marketing to make Intention Markets. The Intention Economy is built around truly open markets, not a collection of silos. In The Intention Economy, customers don’t have to fly from silo to silo, like a bees from flower to flower, collecting deal info (and unavoidable hype) like so much pollen. In The Intention Economy, the buyer notifies the market of the intent to buy, and sellers compete for the buyer’s purchase. Simple as that. The Intention Economy is built around more than transactions. Conversations matter. So do relationships. So do reputation, authority and respect. Those virtues, however, are earned by sellers (as well as buyers) and not just “branded” by sellers on the minds of buyers like the symbols of ranchers burned on the hides of cattle.

The Intention Economy is about buyers finding sellers, not sellers finding (or “capturing”) buyers. In The Intention Economy, a car rental customer should be able to say to the car rental market, “I’ll be skiing in Park City from March 20-25. I want to rent a 4-wheel drive SUV. I belong to Avis Wizard, Budget FastBreak and Hertz 1 Club. I don’t want to pay up front for gas or get any insurance. What can any of you companies do for me?” — and have the sellers compete for the buyer’s business.

Thanks to work by the VRM (Vendor Relationship Management) development community, The Intention Economy is now a book, with the subtitle When Customers Take Charge, due out from Harvard Business Review Press on May 1. (You can pre-order it from Amazon, and might get it sooner that way.)

Having sellers compete for a buyer’s business (to serve his or her signaled intent) is what we now call a Personal RFP. (Scott Adams calls it “broadcast shopping.”) What it requires are two things that are now on their way. One is tools. The other is infrastructure. As a result of both, we will see emerge a new class of market participant: the . It’s a role AutoSlash can play, if it’s willing to play a new game rather than just gaming the old one.

The new game is serving as a real agent of customers, rather than just as a lead-generating system for third parties such as Travelocity, or a pest for second parties such as Hertz, Dollar and Thrifty. Fourth parties are businesses that side with customers rather than with vendors or third parties. Think of them as third parties that work for you and me. In this post, of (a VRM developer), represents the four parties graphically: Fourth parties can also serve as agents for improving actual relationships (rather than coercive ones). The two magnets are “r-buttons” (explained most recently here), which represent the buyer and the seller, and (as magnets) depict both attraction and openness to relationship. They are simple symbols one can also type, like this:  ⊂ ⊃. (The ⊂ represents you, or the buy side, while the ⊃ represents vendors and their allied third parties, or the sell side.) Here is another way of laying these out, with some names that have already come up: 4 parties As of today AutoSlash presents itself as an agent of the customer, but business-wise it’s an accessory to a third party, Travelocity. While Travelocity could be a fourth party as well, it is still too tied into the selling systems of the car rental agencies to make the move. (If I’m wrong, tell me how.) Now, what if AutoSlash were to join a growing young ecosystem of VRM companies and projects working on the customer’s side? Here is roughly how that looks today: AutoSlash is over there on the right, on the sell side. On the buy side, in the fourth party quadrant, are , , , MyDex, and . All provide ways for individuals to manage their own data, and (actually in some cases, potentially in others) relationships with second and third parties, on behalf of the customer. If you look at just the right two quadrants, on the ⊃ side, the car rental agencies fired AutoSlash for breaking their system. That’s one more reason for AutoSlash to come over to the ⊂ side and start operating unambiguously as a pure fourth party.

I believe that’s what already does. While their service is superficially similar to AutoSlash’s (they book you the lowest prices), they clearly work for you (⊂) as a fourth party and not for the agencies (⊃) as a third party. What makes them unambiguously a fourth party is the fact that you pay them. Here are their rates.

For controlling multiple relationships, however, you still need tools other than straightforward one-category services (such as AutoSlash and RentalCarMagic). One circle around those tools is what KuppingerCole calls Life Management Platforms. Another, from Peter Vander Auwera of SWIFT is The Programmable Me These (among much more) will be the subject of sessions at the European Identity and Cloud Conference (EIC) this week in Munich. (I’ll be flying there shortly from Boston.) I’ll be participating in those. So will Phil Windley of Kynetx, who has detailed a concept called the “Personal Event Network,” aka the “Personal Cloud.” Links, in chronological order:

  1. Ways, Not Places
  2. Protocols and Metaprotocols: What is a Personal Event Network?
  3. KRL, Data and Personal Clouds
  4. Personal Clouds as General Purpose Computers
  5. Personal Clouds Need a Cloud Operating System
  6. The Foundational Role of Identity in Personal Clouds
  7. Data Abstractions for Richer Cloud Experiences
  8. A Programming Model for Personal Clouds
  9. Federating Personal Clouds

This is thinking-in-progress about work-in-progress, by a Ph.D. computer scientist and college professor as well as an entrepreneur and a very creative inventor. (By the way, KRL and its rules engine are open source. That’s cool too.)

If I have time later I’ll unpack some of this, and start knitting the connections between what Phil’s talking about and what others (especially Martin Kuppinger of KuppingerCole, who will be writing and posting more about Life Management Platforms) are also bringing to the table here.

In particular I will bring up the challenge of fixing the car rental agency market. What can we do, not only for the customer and for his or her fourth parties (the ⊂ side) but for everybody on the third and second party (⊃) side?

And what changes will have to take place on the ⊃ side once they find they need to truly differentiate, in distinctive and non-gimmicky ways? What effect will that have on the car makers as well?

When I started down this path, back in 2006, I had a long conversation with a top executive at one of the car rental companies. What sticks with me is that these guys don’t have it easy. Among other things, he told me that the car companies mostly don’t like the car rental business because it turns drivers off to many of the cars they rent, and the car companies don’t make much money on the cars either. Can that be fixed too? I don’t know, but I’d like customers and their fourth parties to help.

How about through true personalization, in response to actual demand by individual customers, such as I suggested in 2006?

How about through new infrastructural approaches, such as the ?

Hertz, Budget’s and Enterprise’s own CRM and loyalty systems are not going to go away. Nor will the ways they all have of identifying us, and authenticating us. How can we embrace those, even as we work to obsolete them?

There are two worlds overlapping here: the one we have, and the one we’re building that will transcend and subsume the one we have.

The one we have is a “free market” with a “your choice of captor” model. It is for violating this model that AutoSlash was fired as a third party by the car rental agencies.

The one we’re building is a truly free market, in which free customers prove more valuable than captive ones. We need to make the pudding that proves that principle.

And we’re doing that. But it’s not a simple, an easy, or even a coordinated process. The good thing is, it’s already underway, and has been for some time.

Looking forward to seeing you at EIC in Munich, and/or at the other events that follow, in London and Mountain View:

Meanwhile, a last word, in respect to what Bart Stevens says below. Clearly the car rental business needs to move out of the confusopoly model, and to differentiate on more than price. To some degree they already do, but price is the primary driver for most customers. (And I’d welcome correction on that, if it’s wrong.) We have a lot to learn from each other.

Ting rings the opening bell

Here, according to the ProjectVRM wiki, are the ideal characteristics of VRM tools:

  1. VRM tools are personal. As with hammers, wallets, cars and mobile phones, people use them as individuals,. They are social only in secondary ways.
  2. VRM tools help customers express intent. These include preferences, policies, terms and means of engagement, authorizations, requests and anything else that’s possible in a free market, outside any one vendor’s silo or ranch.
  3. VRM tools help customers engage. This can be with each other, or with any organization, including (and especially) its CRM system.
  4. VRM tools help customers manage. This includes both their own data and systems and their relationships with other entities, and their systems.
  5. VRM tools are substitutable. This means no source of VRM tools can lock users in

Note “mobile phones” in #1. Like a car or a wallet, a mobile phone is personal. Ir also supports our independence, helps us express intent, and is substitutable. Bearing all these things (and more) in mind, Ting.com has come to market with the clear intent of doing the best it can to support customers’ VRM intentions.

Go down Joe Andrieu’s list of user driven services

  1. Impulse from the User
  2. Control
  3. Transparency
  4. Data Portability
  5. Service Endpoint Portability
  6. Self Hosting
  7. User Generativity
  8. Improvability
  9. Self-managed Identity
  10. Duty of Care

… and you’ll find that Ting comes about as close as any mobile phone company can come to respecting all those things.

Ting is an MVNO — a Mobile Virtual Network Operator. That means it operates as a phone company, but does not own facilities. Instead it re-sells the raw base offerings (minutes, texts, quantities of data) that it buys from a carrier with facilities. In this case, Sprint. It works everywhere in the U.S. that Sprint does, but it has a much more friendly and sensible set of offerings and pricings than any of the major mobile phone companies. It’s about as gimmick-free as you can get. That is, Ting is the very opposite of what Scott Adams in The Dilbert Future calls a “confusopoly.” Sez Scott,

A confusopoly is a situation in which companies pretend to compete on price, service, and features but in fact they are just trying to confuse customers so no one can do comparison shopping.

Cell [mobile] phone companies are the best example of confusopolies. The average consumer finds it impossible to decipher which carrier has the best deal, so carriers don’t have normal market pressure to lower prices. It’s a virtual cartel without the illegal part.

Ting is a VRM company. Its management and other personnel have been involved in many VRM discussions and events, and a number of VRM folk have been involved in Ting’s beta as well. Our family, for example. So far we’re loving it. The data service especially is surprisingly good. At our kid’s high school in rural New Hampshire, both voice and data service is pretty much perfect.

Here are some of the stories about the Ting launch that have hit so far:

Plus these from Zemanta:

A bar(code) too high?

Two pieces in today’s worth checking out. Pun intended.

First is “Some markets bagging self-checkout: Cite problems and variables with system,” by Peggy Hernandez. Second is “Scan on a mission: Stop & Shop’s new smartphone app works as a super-fast self-checkout,” by Jane Dornbusch.

I’ve played quite a bit with self-check-out, and with Stop & Shop’s SCAN-IT! in particular. While I rarely find myself moving faster through check-out by doing it by myself, I do see the advantages for both customers and retailers. As Mike Grimes, CEO of Modiv told Peggy Hernandez, “Self-checkout is what you make of it. True customer service means choice. Albertsons and took that away from their customers. That is very likely not a good move.” Indeed, the report begins with news that Big Y is giving up on the self-checkout experiment. Didn’t work for them.

Stop & Shop seems quite committed to SCAN-IT. (I’m leaving off the exclamation mark, as I do with ) Their come with a metal holster for SCAN-IT’s scanning gun. And using the thing is almost entertaining.  (You can also scan with your or .) From the story:

Both the app and the hand-held scanners keep track of your purchases — and you. The app knows where you are in the store. The result is that coupons tailored to your preferences and location pop up on your device as you shop. This has a creepy Big Brother feeling, but you get to save 35 cents on the jar of mayonnaise on your list.

The problem is, guesses about what you might want are made not only by your location in the store, but on your purchase history. Meaning that the pile of crap food you bought for a school picnic last Summer still looks to the store’s system like something you’ll want to buy over and over again. So, up come the coupons.

One of these days I’ll put up the photo essay of my tours of stores, including Stop & Shop, for the book I just wrote. The book tells the story in text, but the pictures are also telling. Stay tuned for that.

Prototyping a new business model for everything

For IIW next week, and I have been working on a prototype demonstrating , using on the  app from .  The description at the EmanciPay link is minimal so far, but the model has a great deal of promise, because what it puts forward is a new business model for all kinds of stuff: easy voluntary payments from anybody for anything, to escrow accounts where the money can be picked up by the intended recipient with no strings attached. The first target is public radio (as it has been, ever since the earliest ProjectVRM meetings at the ), but it could easily apply to and other media as well.

We still need financial institutions to weigh in and take up a new business model for themselves, and it would be cool if some of them showed up at IIW next week for that, but in any case we’re taking one small step in the direction of a major sea change in the way markets for media work.

I’ve been making test contributions to different public radio stations, using the EmanciPay prototype. Craig has hacked a way for this to show up in my Twitter stream. You can see those here.

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.

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