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Prepping for #VRM Day and #IIW

The 16th IIW (Internet Identity Workshop) is coming up, Tuesday to Thursday, 7-9 May, will be tat the Computer History Museum in Mountain View, CA. As usual, VRM will be a main topic, with lots of developers and other interested folk participating. Also as usual, we will have a VRM planning day on the Monday preceding: 6 May, also at the CHM. So that’s four straight days during which we’ll get to present, whiteboard, discuss and move forward the many projects we’re working on. From the top of my head at the moment:

  • Personal Clouds, including —
    • The Internet of Me and My Things
    • QS (Quantified Self) and Self-Hacking
  • Fully personal wallets, rather than branded ones that work only with payment silos and their partners
  • Intentcasting — where customers advertise their purchase intentions in a secure, private and trusted way, outside of any vendor’s silo
  • Browser add-ons, extensions, related developments
  • Licensing issues
  • Sovereign and administrative identity approaches, including Persona, formerly BrowserID, from Mozilla
  • Legal issues, such as creating terms and policies that individuals assert
  • Tracking and ad blocking, and harmonizing methods and experiences
  • Health Care VRM
  • Devices, such as the freedom box
  • VRM inSovereign vs./+ Administrative identities
    • Real estate
    • Banking (including credit cards, payments, transactions)
    • Retail
  • Personal data pain points, e.g. filling out forms
  • Trust networks
  • Harnessing adtech science and methods for customers, rather than only for vendors

The morning will be devoted to VRM issues, while the afternoon will concentrate on personal clouds.

We still have eight tickets left here. There is no charge to attend.

In the next few days here on the blog we’ll be going over some of the topics above. Input welcome.

 

Intentcasting mojo

Nice piece on Intently.co and intentcasting in 7 Days. Titled Intently.co – the new website where the firms come to you…, it’s right up the VRM alley. An excerpt:

A global site or rather ‘intention engine’ called Intently.co is making it possible for suppliers who are listening to respond to buyers’ requests in the UAE and beyond.

Neil Harris, founder of Intently.co explained to 7DAYS that he could see the potential of his site pretty clearly – even if the inspiration did come while he was looking for an optician.

“I wanted an optician’s appointment and simply didn’t have the time or energy to wade through 101 opticians’ websites, so I dreamed up the idea of “broadcasting my request” to all of them and waiting for them to reply, eager to have my business,” he said. It’s a practice which has come to be known as ‘intentcasting’ – and in theory it should save you time and money.

“I wanted to be able to submit a request – or a ‘shout’ – for potential suppliers to react to while I was busy doing other things. Then, some time later, I could go back to that request and see how it was getting on,” Harris explained. So far, he said, around 80 per cent of requests worldwide get positive responses – and usually within the hour.

Some have asked all golf clubs in their area for membership prices and selected a new club based how responsive and helpful it was during the process.

Another user sent out a successful ‘shout’ for a surprise party. Such requests, though small on their own, are part of a growing trend which has been dubbed ‘the intention economy’ – and Harris believes it will have big consequences for current marketing and advertising models.

I added the link. Hope Neil and 7Days don’t mind. 🙂

VRN Linkage

A roundup of VRM-related tweets and posts…

Tweets:

Posts:

The best VRM post, ever

One of the most mind-blowing one-liners I ever heard tossed was this one:

“All the significant trends start with technologists.”

It was uttered by Marc Andreessen  during an interview I did with him for Linux Journal, in May 1998, for the August issue of the magazine, following up on Netscape’s open source release of Mozilla. The title of the piece was Betting on Darwin. It’s still up at that link, and an interesting piece of history.

That one-liner knocked me over because it is so obvious and true, yet easily overlooked. It is also exactly the reason I started ProjectVRM. I knew it needed technologists. Not just to develop code, but to fully understand  the challenges and opportunities that call technology forth into the world.

Lately one of those technologists has stepped forward and written the best VRM post I’ve ever read, including all of my own. It’s by T.Rob, in his blog The Odd is Silent. The title is Futurists Groundhog Day. An excerpt:

Why VRM?

VRM, or Vendor Relationship Management, is a new approach to conducting business in which the missing physical constraints have been replaced by technological and policy constraints that restore the balance of power between individuals and their vendors, and perhaps to some extent also their governments.

One of the issues is asymmetry in the cost of data collection.  Vendors spread the capital cost of data collection over a large population of customers.  Given enough time, the cost of data collection drops to near-zero or in some cases actually generates returns.  Consumers on the other hand have no such infrastructure.  You are co-owner of your transactional data but your grocer records each line item of your purchase in real time and you get a cryptic paper receipt which you have the option to transcribe into a database.  If you had a database.  And knew how to program.

VRM proposes to provide that platform so that individuals will have the means to capture more of their own data at a cost that is competitive with their vendors.  Indeed, the vision is that the vendors who already have that data will some day participate in the VRM ecosystem by sharing it with their customers, in real time and full resolution.  Instead of just a crappy paper receipt with unreadable abbreviated names, you’ll get the actual line items with UPC codes, prices and for some products possibly even the cradle-to-grave history and status.  You’d get your smart meter readings in real time so that you could program home automation behaviors based on load, utility rate, occupancy and so forth.  When you purchase online, the terms of the contract, price and all other metadata about the purchase would either be captured by you or delivered to you in real time by the vendor.

But VRM is about a lot more than just replacing today’s functionality.  Just as electric motors transcended the function occupied by stem engines, VRM enables entirely new capabilities.  Many are yet to be discovered but a key new capability is intentcasting.  This is a direct signal from the individual to the market about preferences, requirements and purchase intent.

Read the whole thing.

Bonus link.

VRM Roundup

Some collected items, some old, some new…

Products I Want, an intentcasting post by Johannes Ernst.

On cricket, riots, trust and customer advocacy and The Dimes; a modern retail fable, by JP Rangaswami.

Own your identity, by Phil Windley, responds to The VRM perspective.

On personal clouds:

Groupon’s group discount on the Tech sector, by Tom Foremski.

Several posts on adtech:

Doc Searls and the Intention Economy, held at Capital One Labs wasn’t covered but was tweeted. Find a few bits at the intersection of @dsearls and  #smwwdc.

Android for independence.

@shelisrael – “Advertisers call this contextual advertising. I call it spam.” http://t.co/8Hkf06ya #intentioneconomy #VRM

RT @pfasano: NYTimes: Search Option From Facebook Is Privacy Test #VRM RT @pfasano: NYTimes: Search Option From Facebook Is Privacy Test #VRM Smarter information, smarter consumers, by Richard Thaler and Will Tucker in Harvard Business Review

RT @GrahamHill: @Lynn_Teo If you want another view of #vrm watch Alan Mitchell’s preso on Responding to the Empowered Customer http://t. … January 26, 2013 gammydodger (gammydodger)

RT @seanbohan: Future of Ecommerce 2013 from @heatherAtaylor & @Econsultancy includes a nice mention about @dsearls & #VRM http … January 26, 2013gammydodger (gammydodger)

RT @Toon: #VRM & Trust Networks pitched in Davos by Sandy Petland “Digital society did not turn out how we hoped…own your data” ht …January 26, 2013 gammydodger (gammydodger)

Will Consumer Transaction Data Drive New Online Marketplaces?

Refactoring Consumer Electronics, Bob Frankston

What if companies gave me control of my data? by , Consumer Affairs Minister, in Which? Conversation.

 

Explaining VRM

In Rallying cry for innovation – and faith, Mark Sage puts up some long excerpts from a post I made to the ProjectVRM list, explaining VRM to a skeptical marketer. The bottom lines:

VRM isn’t complicated. It’s only about giving customers means toward two things: independence and engagement. To see how that can be done, one needs to stand on the side of the customer. So that’s what we’re doing.

Go to the first link above for the whole thing.

The VRM perspective

The VRM perspective is independence.Liberty Bell

This isn’t new. In fact, it’s as old as the Net. It is also nearly forgotten. Billions have never experienced it.

When the Net first came into common use, in 1995, independence was what anybody felt who started up a browser and surfed from place to place, or who built a site on a domain of one’s own, with its own name and email addresses.

To do anything substantive on the Net today, we use personalized services that require us to live inside corporate walled gardens. We have these with Google apps and Drive, Apple’s iCloud, and “social” systems such as Facebook and Twitter. Adobe and Microsoft are also now pushing hard for us to rent software as a service (SaaS), so we no longer own and run software for ourselves on our own machines.

Bruce Schneier compares today’s walled gardens to castles in a feudal system. We are vassals within these systems. Our job with VRM is not to fight these systems, but to equip individuals with their own tools of independence and engagement: to make them the points of integration for their own data, and of origination for what gets done with it.

To cease being vassals requires that we possess full agency: the power to act, with effect. We cannot do that without tools that are ours alone. Just as our bodies and souls are ours alone, yet also work in human society, we need tools that are ours alone, yet also work in the world of connections that comprises the Net.

To operate with full agency we need a full box of VRM tools — plus two other things. One is substitutability of the services we engage. The other is freedom of contract.

Substitutability means we have a choice, say, of intentcasting services, of quantified self gizmos and service providers, of health care data and service providers, and of trust networks and personal cloud service providers — just as we have a choice today among email service providers, including the choice to host our own email.

Freedom of contract means we don’t always have to subordinate our power and will to dominant parties in calf-cow ceremonies (e.g. clicking “accept” to one-sided terms we don’t read because there’s no point to it). We can design automated processes by which both parties come to mutually respectful agreements, just as we have with handshake agreements in the physical world.

Both of these virtues need to be design principles for VRM developers. If they are, we can save the Net by empowering ourselves.

 

The all-silo mobile marketplace

In the beginning was the browser, and the browser was yours. You drove it on the Information Superhighway of the World Wide Web:

As a driver, you experienced the same kind of independence that you did with a car. You had a private space inside a private vehicle that you alone operated. You thought and spoke about it with first person possessive pronouns. So, just as you still think and speak of my car, with my engine and my tires, you also thought and spoke of my browser with my bookmarks and my history.

But, because the Web was designed on the client-server model (aka calf-cow), sites could do what t hey wanted with your vehicle. So, while each site gave you both what you came for (pages, usually), it also gave you cookies to help you both remember where you were the last time you visited. And, for the convenience of you both, it also gave you a shopping cart. Thus, to them, and to you, this is what your browser became:

But there was a cost to this: you were no longer an independent human being with your own private space, but a shopper in the site’s private space. This asymmetry of power and dependence was — and remains — so absolute that it became pro forma for sites and services to use the first person possessive pronoun for you: myspace, myfitnesspal, myverizon. This only made sense in the context of not being able to say it for ourselves.

As a result, our browsers on the commercial Web are not really our own. They are re-skinned at each site with whatever the site wants to make of them:

On the commercial Web, we may still think we’re drivers, but inside each site we are passengers — or, in the now-favored lingo of retailing, “guests.”

Being guests rather than drivers has put us each in a slow-cook hell with these features/bugs:

  • Accumulating up to hundreds of different password-login combinations
  • Needing to fill and re-fill hundreds of mostly-redundant forms, over and over again
  • Submiting just as often to one-sided terms of service that we never read because there’s no point to it

This absolute submissiveness, this complete yielding of personal power to “providers” of all kinds, has boundless upsides. But it has been a Faustian bargain from the start. What we deal away is our time and our agency, both of which matter to our souls.

Seeing the success to be found in dominating customers online, brick-and-mortar retailers have replicated some of the same systems, requiring that regular customers carry around loyalty cards, one for each store. Here’s how “loyalty cards” shows up in Google’s Ngram Viewer:

The timing is no coincidence. Nor are the inconveniences these cards impose on customers and stores alike. But, so long as “free” means “your choice of captor,” the captive-captor system prevails.

That’s what’s happening in the mobile space as well.Shopping carts on websites have become the shopping apps on smartphones. The result is an all-proprietary subset of the World Wide Web:

And they proliferate. If you go to CVS, you get told to download an app. If you’ve already done that, you get told to download another one:

cvs pitch

Or so it appears. I just spent 20 minutes trying to figure out if the Pill Identifier is a feature of the CVS pharmacy app, or an app of its own. Hard to tell when you look up “cvs” on Apple’s App Store app:

To CVS, these are all conveniences for both of you. Never mind that these end up cluttering your phones. Nor that you can only get these (at least on the iPhone) at just Apple’s store, and that your phone company also controls what you can do with it (far more than any car company controls what you can do with the car you buy, lease or rent from them). The inconvenience is yours, not theirs.

The benefits, again, are enormous. For example, it is surely a good thing, for some people, to know what kinds of pills they have. And it’s a good thing that CVS provides a way to do that. But it’s CVS’s app, not yours.

To get the difference, consider an ordinary thermometer.  When you buy one from CVS, it’s yours when you walk out of the store. It isn’t CVS’s any more. Maybe it would be good if the thermometer were smart enough to communicate  your temperature to your doctor or to CVS. But that option should be yours, not CVS’s. Yet there are many who would urge CVS to get your temperature, if it can. And these are the people who are running the “big data” conversation today, at least around marketing.

We are already down a steep and slippery slope here.

See, once you have an app, it’s hard to know for sure what information about you and your life the app is sending back to the company, or to its third parties. According to the Wall Street Journal, countless apps are reporting on you and your activities to marketers, without telling you that’s what they’re doing. Or at least not in an obvious way. Yes, they have privacy policies, but nearly all of them reserve the right to change those. And yes, you do have the choice to not participate in the app marketplace. But as the world becomes more and more networked, that becomes less and less of a practical option.

In respect to the Faustian bargain with the all-silo marketplace, it doesn’t matter how good the silos get. They are still silos. Making better silos doesn’t solve the problem.

After awhile all this power asymmetry adds up, and at some point it breaks. Our job with VRM is to make that  break happen — by showing customers and providers alike that there are better ways to operate a free marketplace, starting with free customers. We do that through tools and services that are more like cars than like shopping carts: that make us both independent and equipped to engage.

A list of VRM developers is here.

Bonus links:

 

Where VRM stands in the advertising debate

It’s easy to see why the behavioral advertising business feels threatened lately. Already some of the most popular browser add-ons are for blocking ads and tracking. (Here’s one list.) As of last May, according to ClarityRay, 9.26% of all ads were being blocked by browsers. For tech content, the rate was 17.79% and in one country (Austria) the rate was 22.5%. Ad blocking was highest with Mozilla (17.81%) and lowest with Explorer (3.86%).

Not surprisingly, Microsoft smelled the demand and defaulted Do Not Track in the “on” position with its next version of Explorer. Also not surprisingly, this proved controversial.

And now comes Ad Networks Beware: Firefox to Block Third-Party Cookies: New policy could squeeze online behavioral advertising, by Katy Bachman in AdWeek. She begins,

The Interactive Advertising Bureau lashed out Saturday at a new Firefox policy to block third-party cookies, effectively cutting off ad networks’ ability to track users. That could be put a crimp in the growing online behavioral advertising business, but give privacy advocates a victory in their attempts to give users more control over their online information.

Mike Zaneis (@MikeZaneis), the organization’s svp and general counsel tweeted that Mozilla’s new policy was nothing less than “a nuclear first strike against the ad industry.”

Firefox will begin blocking the cookies from third-party ad networks by default beginning with distribution of Firefox version 22 on April 5. The browser would allow cookies from first party websites that users visit, according to Jonathan Mayer, a grad student at Standford University who wrote the patch for Mozilla.

Firefox’s new cookie policy is similar to Apple Safari, but “slightly relaxed,” Mayer said in a blog post.  In practice, both Google Chrome and Microsoft Internet Explorer allow third-party cookies.

The links are mine.

For a good picture of the debate at work, read the whole thread below Mike’s tweet. In it you’ll see how hard it is to draw lines we don’t want others to cross. If we’re Mike and the IAB, we want to draw the line as far out as our self-reguatory principles for online behavioral advertising allow. That line is inclusive of (presumably) harmless forms of tracking. If you’re Chris Saghoian (@csaghoian), one of the creators of Do Not Track (and a voice in that thread), the line not to cross is the personal one that surrounds one’s private spaces. Among those is the vehicle called a browser, in which one would like to drive around the Web enjoying car-like independence.

Here in the VRM world, we are in the second camp. But we’d rather leave the fighting up to others, and instead extend an olive branch toward cooperative development of tools that shake hands and work together across both kinds of lines. That’s what I did at the last link, in September. Since then I’ve enjoyed a positive back-channel conversation that I’d like to keep moving forward.

Also in play are regulatory urgings. This was behind George Simpson‘s Suicide by Cookies, at MediaPost. He begins there by framing up a problem:

Evidon measured sites across the Internet and found the number of web-tracking tags from ad servers, analytics companies, audience-segmenting firms, social networks and sharing tools up 53% in the past year. (The ones in Mandarin were probably set by the Chinese army.) But only 45% of the tracking tools were added to sites directly by publishers. The rest were added by publishers’ partners, or THEIR partners’ partners.

Then he builds the correct forecast of regulatory squeezery, and concludes with this:

I have spent the better part of the last 15 years defending cookie-setting and tracking to help improve advertising. But it is really hard when the prosecution presents the evidence, and it has ad industry fingerprints all over it — every time. There was a time when “no PII” was an acceptable defense, but now that data is being compiled and cross-referenced from dozens, if not hundreds, of sources, you can no longer say this with a straight face. And we are way past the insanity plea.

I know there are lots of user privacy initiatives out there to discourage the bad apples and get all of the good ones on the same page. But clearly self-regulation is not working the way we promised Washington it would.

I appreciate the economics of this industry, and know that it is imperative to wring every last CPM out of every impression — but after a while, folks not in our business simply don’t care anymore, and will move to kill any kind of tracking that users don’t explicitly opt in to.

And when that happens, you can’t say, “Who knew?”

More background on all this can be found at Wharton’s Future of Advertising Program, where they asked a bunch of people “What could/should ‘advertising’ look like in 2020?” I answered here. My bottom lines:

Here is where this will lead by 2020: The ability of individuals to signal their intentions in the marketplace will far exceed the ability of corporations to guess at those intentions, or to shape them through advertising. Actual relationships between people and processes on both sides of the demand-supply relationship will out-perform today’s machine-based guesswork by advertisers, based on “big data” gained by surveillance. Advertising will continue to do what it has always done best, which is to send clear signals of the advertiser’s substance. And it won’t be confused with its distant relatives in the direct response marketing business.

The follow-up question was, “What do we need to do now for this future?” My answer to that one:

Three things.

First, make sharper distinctions between brand and direct response advertising — distinctions that make clear that the latter is a different breed, with different virtues, methods and metrics.

Second, follow and encourage the development of tools that give individuals more independence and ability to engage.

Third, do more research on the first two, so we have better tracking of trends as they develop.

Our job with ProjectVRM is the last two.

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.

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