• Supernova 2008 ››  
  • About |
  • Agenda |
  • Speakers |
  • Sponsors |
  • Contact Us |
  • Information for Press

  • Search

  • Subscribe via RSS



  • Categories


  • Enterprise
  • General
  • Infrastructure and Communications
  • Interviews
  • Law and Policy
  • Marketing and Relationships
  • Media and Entertainment
  • Mixers
  • Monetization
  • Network Theory
  • Podcasts and Video
  • Session Content
  • Social Platforms
  • Society and Culture
  • Speakers
  • Sponsors and Sponsored Posts
  • Startups
  • Supernova Announcements
  • Supernova07
  • Supernova08
  • supernova2008


  • Attending Supernova?

    Then let people know by grabbing this graphic and plugging it into the sidebar of your blog.


  • Blog Archives

    • July 2008
    • June 2008
    • May 2008
    • April 2008
    • March 2008
    • July 2007
    • June 2007
    • May 2007
    • April 2007
    • March 2007
    • January 2007

Session: Introducing the Relationship Economy

by Isabel Hilborn

June 21, 2007 at 12:37 am · Filed under Session Content, Supernova07

Here I am, sitting in on the “Markets and Conversations” track at Supernova. I really enjoyed the first session, with David Weinberger and Doc Searls moderated by Jerry Michalski. I’ll toss in a few of my notes and comments. These aren’t direct quotes, and mistakes are mine - sorry!

Dw: it’s hard for marketers to join conversations. They’ve been trained to talk a certain way. We’ve seen lots of wonderful corporate blogging of course. Engineers who naturally are more free do a better job of it than many marketers.
Doc: Although they’ve at times been stomped down when they’re honest.
DW: Marketers everywhere now want to “bring the conversation in”. When Sun starts automatically aggregating the existing blog posts, it’s great, but it’s different from the marketers joining. Really, Jonathan Schwartz is a great blogger.
Tom Mandel: a CEO blog is classic marketing, it’s not “joining the conversation”. Not that they’re not interesting or sincere… but this is a side effect, the point is it’s a show put on by the CEO.
Doc: So are you saying it’s “just a show”?
Tom: I don’t mean to minimize it, I’m saying it’s inevitably a show.
DW: He’s accepting comments, he’s responding… this is different from the “news from the CEO” memo put out by the PR office.
Doc: It sounds like Jonathan and it’s real. So it’s different. You recognize his voice.

IWH: I’m going to take a moment here, and this is my prerogative as a blogger, to editorialize about what I’m hearing here. I’ll put my own thoughts in italics. This conversation, to me, is really about getting back to basics because marketers have gotten so off track. If we hadn’t gotten ourselves into a situation where hired guns were speaking on behalf of the CEO and all corporate communications had to be pre-approved message soundbytes, we wouldn’t need to be getting out of the situation so desperately. This conversation is about saving marketing.

Jerry: So how has “markets are conversations”, your Cluetrain motto been misapplied?

Doc: People can take it too literally, thinking that it’s just about marketing, or just about talking. This is bigger than that. Companies exist at the grace of their employees now, more than ever before. Access to capital, international reach, having a loud voice, controlling the media – used to be really closely held. Now we have markets being allowed to be markets. People talk with people, and companies are sometimes in the middle of it.

DW: There’s the silliness where companies say “we’re all about user generated content”, we’ll pick the best ad for the superbowl… or candidates that use Youtube to announce their candidacy… it just can get silly, that’s all.

Audience (OK, this was me): Isn’t that too cynical? Some of these things can be good – the Dove Cream Oil user-generated ads show real women, real bodies – this is different, it’s valuable.

DW: That’s an example of one that’s not silly. Some are good, some are bad. That’s all.

Doc: What makes us valuable is what we know and what we could learn. What I know is who I am. Suddenly I thought differently about something… I can’t get rid of that new knowledge. This makes us human, how we’re enlarged by what others bring to us. The way we teach each other, the way we learn and enlarge ourselves… if we reduce everything to fixed commodities- I don’t like the term user-generated content – it’s so fixed. Now I’m going to “generate” a piece of “content”?

DW: I’ve ingrained the wrong routes in my brain by getting lost – because I’ve traveled the path before it looks familiar, so I take it again the next time. People can learn wrong as well as right.

Doc: I used to hate crm for what it tried to guess about what I might want to buy or do. Then I – we – realized, at the Berman Center, that the problem is that they bear the entire burden of the relationship with the company. Aside from giving them cash, what are we doing on our end to maintain that relationship? All surveys are wrong, they’re wrong by nature. “Why are you asking these questions? Here’s what I want to tell you.” If I’m making a tech support call, don’t try to market to me, that’s not why I’m calling. They promote a pay-per-view while I’m waiting for tech support? OK, these are global preferences they should have that would help my relationship with the company. But there are a zillion of these things. Can we create VRM systems – vendor relationship management – that bring some of what we want to them, so they can use it? What we really need is inter-relationship management.

Jerry: So what’s the next logical step?

Doc: This is an idea, I’m just starting a conversation. And it’s not even remotely just my idea. I just think people have so much to bring to the table, learn from each other. There are thousands of add-ons to every platform. Once you create the feedback mechanism that links you to your provider, just think of all the new ideas that could be looped in and capitalized on. It’s endless.

Doc – the Identity Movement was a corporate thing – and the user-centric identity movement grew up around it as a result of it. I want to tell the rental car company – that without telling them who I am, I’ll tell them what I want to rent, which clubs I’m in, and other key details.

DW – “Keep this information to yourself or I will not deal with you again” puts too much power to the vendor. If the marketplace were fair that problem wouldn’t arise – but if not… what if we put forward this identity system and either Amazon doesn’t play, or they say we’ll give you a 1% discount if you let us do stuff with your ID, and people will say yes to that.

Audience – Is tomorrow’s marketing – each customer has so many to vendors to choose from , that intermediaries are recuired to help choose – and they will pay for it?

Doc – yes – there will be a business in helping customers find vendors. It’s around advertisers – we’re so busy thinking “we have to get the right messages to the right people” – we need to move to the intention economy – people with money in hand wanting to buy something right now, who need help finding it.

DW – Review sites do that, some are fantastic. Finding travel destinations. There may be business plans that are created based on this.

IWH: Isn’t this just what travel agents are? So the problem is you can’t get an unbiased, honest recommendation. Which is why we’ve turned to each other as being more trustworthy. Again, it’s another way of saying, if this marketing thing weren’t broken, we wouldn’t have had to find a new way to fix it. If you could trust your travel agent, or your real estate agent, to give you what you really wanted – the best deal, and not what compensated them the most, then you wouldn’t have to go out and do it, buy it yourself. Having removed the integrity from the vendor recommendation process, they’ve lost their status. They may never be able to get it back because the vendor has so much more budget decisionmaking power than the individual.

Doc : I talked with someone the other day who said he wanted to own his customers. And I said what’s another word for owning someone? And he said ‘Oh my god, slavery!” And I said, ‘who wants to be a slave?’ So we have to build markets better around what the customer wants, with the information they want to provide. My wife asks – why can’t my shopping cart move side to side? It’s 2007 and we haven’t figured this out?

IWH: I’m going to step in again here and editorialize. The problem with this, though, may be that we as end users don’t cooperate. Something gets a little cheaper, we’ll buy that instead of the better thing. We don’t like to pay as much as we might have to for this stuff. And most of us will gladly trade our home address for a free package of jellybeans. We still buy something even after we’ve heard the radio announcer recommend it, even if we know he’s been paid to make that recommendation. So how can this concept of “principled buyership” work in concert with these “real life users” who might just be actively undermining the dream by not giving a hoot who has their information and what kind of advertising is done with it?

Audience – I have a visceral reaction to the notion of “managing a community”. I think companies should serve the customer. Salespeople don’t like the CRM, they’re getting judged on it, but it doesn’t reflect their real relationship with the customer, visible to both sides.

IWH: Hmm… the idea of a both-sides-visible CRM solution is an interesting one… companies should think about it more. The user can make changes to his or her own record as desired – sure people might delete some info the company wanted, but they are probably just as likely to add information the company would find useful. I really like the idea of a visible-by-both-sides V-CRM system.

Audience – Companies don’t always trust what people say, what they say is not always what they actually do. They say they’re faithful husbands but they’re out fooling around, or they say they’ll pay more for Green but in real life they really don’t. Harrah’s tracked every single thing the user did for their loyalty card, and therefore the marketing was based on everything they liked, and they blew out the competition in this way.

Doc: It’s inadequate from the customer side right now, it’s too heavily weighted toward the vendor. What can we do from out side of things to make things better?

Jerry: You will read research that says people don’t know enough about themselves, and they won’t make the right predictions and so forth. But once you get a real community together, with trust, and relationships, this changes. Natural markets form, word of mouth does its thing, you end up with a different kind of relationship. You won’t betray your customers. They know you. We’re human beings with lives, and patterns in our lives that aren’t always pretty. Important apps will rise out of the crowd.

DW: Well I really like Amazon. What kind of relationship do they have with me?

Audience – my travel agent once told me that she wasn’t worried about the Internet because she had close personal relationships with all of her customers. That was the last conversation we had [presumably this person stopped using a human travel agent] – there are some things that are more important than relationships.

Permalink

4 Comments »

  Money Matter - News Reviews » Blog Archive » [supernova] Nonprofit projects wrote @ June 21st, 2007 at 5:05 am

[...] (The Supernova “conversation hub” is here. And Isabel Walcott’s thorough bloggage of the session with Doc and me — with Isabel’s commentary — is here. BTW, this is part of the Wharton day, and this track is sponsored by Cisco. ) [...]

  The Know-It-All Blog » IMF Report: “The Syrian economy did remarkably well in 2006″ wrote @ June 21st, 2007 at 9:28 am

[...] Session: Introducing the Relationship EconomyIt’s around advertisers – we’re so busy thinking “we have to get the right messages to the right people” – we need to move to the intention economy – people with money in hand wanting to buy something right now, who need help finding it … [...]

  jay Deragon wrote @ August 1st, 2007 at 11:29 pm

Here is some food for thought!

Ever wonder where all this “networking activity is going?” For months I have been formulating my own predictive models and attributes using numerous sources of information. At the risk of sounding a little “futuristic” allow me to provide a picture of what I consider to be a realistic model which will emerge in the not to distant future. First I will categorize my findings into what I call “Relationship Economics” and provide appropriate definitions.

First the word “Relationship” being defined as connection or association; the condition of being related. Second is “Economics” being defined as the study of resource allocation, distribution and consumption; of capital and investment; and of management of the factors of production. So I will define the collective meaning of Relationship Economics as: The people and things we are connected with or have an association to which distribute or consume our “capital” which influences our individual production outputs. We will use the term “capital” meaning that which we give or take that creates numerous forms of value.

Practical Relationship Economics Examples: We have relations with people and things. Both either take or give to our “capital“. People and things take or give us time (capital). People give or take information and knowledge (capital). We work with people to make money (capital). We strive in business to create or loose money (capital). We use machines and
technology that either give or take value (capital). We interact with “things” that either give or take value (capital). We participate in institutions that both give and take value (capital). Our governments provide the means to gain or loose our freedoms (capital). In essence we have relationships with people and things that give, take or both in terms of our individual abilities to be “productive with our capital”. Collectively “Relationship Economics” is about people and things we give or take which influences numerous forms of value, our “capital“.

When you think about the primary means of most interactions we have with people and things it is technologically based. Whether your working, playing or relaxing you ultimately interact with some form of technology, everywhere and in everything. For the most part technology increases the value of our interactions with people and things. It is hidden and assumed.
Initially any new technology takes your time (capital) to learn how to optimize it. However, once proficient you begin to appreciate the value but expect more from it.

When we engage in human relations it takes time to learn whether the interaction creates value and whether the values are in common. When relationships become “disconnected” the primary basis is usually differences in value given or taken and differences in “values”. The primary difference between our interactions with people and things is one of values vs. value. Technology produces value while people dictate the “values” that technology enables for either the building or tearing down of relationships and the related capital.

Relationship Economics is just beginning to take shape and its future has significant rewards. The future,not to distant, will naturally emerge into a convergence of collective technologies which connect us to everything, everywhere. Imagine the following scenarios:

We will have our own network “ Link to Our World” in which we define what is interfaced into our world. Our mobile phone, PDA, Automobile, Television (s), landline telephones and any device in which we receive or transmit communications will be integrated and connected to our Link to The World. Our World portal will have a set of “button” interfaces with people and things categorized by a matrix of relations. Said buttons will appear on our desktop, our mobile phones, our PDA, Televisions, our car screen and any other communication device we use. Some of our devices will contain voice recognition software so we’re able to multi-task safely, i.e in our automobiles, boats or planes. I think you get the picture, everything and everywhere we are able to connect to people and things.

So How Do We give and receive value?

Many of us currently sell products and services in exchange for economic value. The future of Relationship Economics will be based on “value taken vs. value given“. The oldest exchange of value is that known as tithing and it is largely tied to religious organizations. Another exchange of value is that of “tipping for services rendered“. Another old paradigm which the masses have adopted as socially acceptable and expected. Fast forward.

In a world connected to everything everywhere we as individuals are enabled to profile and exchange our value and our values. Already, in today’s market, we’re seeing an exchange of value in terms of relationship introductions and the process of using the means for job recruitment. Job recruiters make money off of placement, an old model of exchange for value which HR departments have adopted as a better method to internal staffing and screening. Now combine the old models of value exchange with a new model. A model in which in the “networked world” we buy tokens of economic value globally. When some one provides us value it is assumed and expected, but not written in contract form, that we would be rewarded according to the perceptions of value by the receiver. The receiver would simply credit our token account with a value they deem appropriate for the benefit gained. In turn we would do the same for those that deliver us value.

Since the technology of the “networked world” provides us with the luxury of efficiency and effectiveness we are able to produce value to whatever degree we choose. The choice is individual. Some will work overtime because others will compensate them for their ability to produce. Others will receive and not compensate, they will be quickly identified as takers, not givers and the entire network will know the difference. The Global exchange of value ignites competitive propositions but the rewards provided are an individual choice, not unlike today’s market of products and services. Deliver value and you gain customers, Deliver defects and you loose them, period.

Relationship Economics will create new mediums, new measures and accelerated exchanges that will displace traditional mediums and totally disrupt and displace existing paradigms. A new world order driven by value exchanges and relationships will emerge and mankind will learn to adapt or lose. Those that don’t adapt and create value will be quickly identified and set apart from the larger network. Value migration will build momentum and create significance, individually and collectively.

More details on this prediction and the related models later. For now: Far fetched or realistic?

We’re building an entire case study supported by models and references as part of our ongoing research. Interested?

What say you?

  Moving From Me To We.com » Blog Archive » Join Forces. Attract More People. Spend Less. Find Camaraderie. wrote @ December 15th, 2007 at 4:31 am

[...] Helpful advice, especially available 24/7 online will almost always trump advertising. And it costs you time, demonstrating your expertise rather than paying to promote yourself. Plus you can enjoy the camaraderie of other capable people who share your interest. In this Relationship Economy you, a part of the network, will get introduced to more people interested in your skill or interest. If your participation in the network relates to your work, you may become the trusted, top-of-mind choice when they want to buy, collaborate with or hire someone like you. [...]

Your comment

HTML-Tags:
<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

    Attendee email directory (password required).

    Mobile-friendly pocket guide.



    Get this widget!

    OUR SOCIAL NETWORKS

    Twitter feed -- follow it for news and notes.

    Supernova 2008 Facebook group.

    IRC channel -- live web chat. To get around issue of IRC being blocked at UCSF- use http://is.gd/yKa - MIbbit.com


    SUPERNOVA '08 CONTENT

    sevenload Video Channel
    Subscribe to sevenload RSS feed

    Live Video of the Conference

    PRE-CONFERENCE MIXERS

    Supernova 2008 Mixer Blog Posts

    SF Mixer Event



    Pics from Supernova 2008 and pre-conference mixers

    www.flickr.com
    This is a Flickr badge showing public photos from Flickr tagged with Supernova2008. Make your own badge here.

    IT Conversations -- audio podcasts.

    2007 Video Interviews by our blogging team.

    2007 Session Videos and Notes









Credits

Powered by WordPress, Fjords04 Web Design Services and project36, based on Qwilm.

Creative Commons License
All content hosted on this site is licensed under a Creative Commons Attribution 3.0 License.