Business model design trumps product design for value creation

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At the Dots conference last month, Mark Earls gave some fresh takes on his favourite theme – humans-as-copying-machines. The best way to come up with something new, he showed, was to copy someone else, or something else. You come up with something new because, in the process of copying, you make errors.

He went further, arguing that one of the best things to do was “copy from far away” – from another field of endeavour, another country, another industry.

On the FT a week later there was an article about how new business models disrupt industries

…Apple became the biggest music retail seller without selling one CD; Netflix reinvented the video business without operating a single video store. Google continues to attack new industries with its data-based services and devices; Google’s products from glasses, to self-driving cars to smart thermostats are just a means for increasing and leveraging Google’s data-based consumer insights.

Of course, none of the business models are new, they are just copied from other industries. Copied from far away. Like Nestlé copying the Gilette razor-blade business model to sell Nespresso pods (pricing coffee at £60 a kilo).

Here’s a video of the whole interview…

 

Metered media

Kevin Anderson looks at the online paid media landscape and says one business model is emerging as a leader:

Metered – This model allows casual readers to read some content for free, but then asks readers to pay after they have read their monthly allowance. This is the model the Financial Times has used for years, and this was the model that the New York Times chose.

This works for me as a user or reader.

Every now and again I have a subscription cull when I realise I am paying for too many things I am not reading or using enough. Metered models mean you end up paying when you realise you really are getting value from a particular site or service.

Thick value and re-engineering the marketing value-chain for networks


Thick value is a concept Umair has ben talking about for a while. The idea is that businesses look to create value rather than extract as much as they can get.

Thick value’s a useful neologism that you can use instead of saying things like “that business model is flogging a dead horse”. Or shorthand for “that company doesn’t really care about its customers does it? I think they just want to squeeze as much money out of people as possible. Herd them into the value-extraction (be it cash or attention) corral…


Recently he has started talking about marketing examples – like Mischief‘s brilliant Heathrow / Alain De Boton concept – of creating thick value. A much nicer PR approach than the thin value created by some PR stock-in-trade tactics like pseudo-surveys and pollution of knowledge / information media and network (see Flat Earth News and for more on that)…

There’s a phrase which a lot of people in agency-land use at the moment: “Earned Media“.
It’s a loaded-phrase very much double-edged and justifies a mixed metaphor (which may go off in your hand).

On the one hand, for marketers whose stock in trade has been blockbuster or wannabe-blockbuster creative, distributed via paid media, earned media helps them understand and explain what they are doing when they create content that they want to spread through social networks, through word of mouth. I use the phrase sometimes, because it displaces an old approach with a new approach.

So it describes the future, right? It shows old-school marketing getting its head around the shock of the new, doesn’t it?

Well not entirely. It means that the rest of the value-chain, or value-degrading-chain, the business model, the approach has not changed. Most importantly, the principles have not changed. They have the same ad-creation process that was there before, they are just swapping out the distribution element.

Paid Earned media will do the job of inflicting the message on the masses.

Wrong. Every aspect of marketing needs to be re-engineered, re-designed, to be successful in networks.

It starts with principles. Understand your networks, Be useful in your networks, Be live in your networks. It starts with a desire to create thick value.
If you start, rather than just finish, with the idea of creating thick value in marketing it changes everything about a campaign or the job of looking after a brand. You research to find out what people need, how you can benefit them directly, or create value in networks by making those networks work better, rather than just looking for opportunities to drop message bombs on their world.

You think about measurement as something that will help you refine the creative and conversational elements of what you are doing, rather than an after-the-fact justification for the activity itself. You think of ideas and creative as something that happens in response to what is happening in the networks around you, rather than a single hero-concept that is going to be thrown at consumers until they notice.

Guerilla marketing and earned media might be thought of as troubling phrases then because they extend bad analogies for relating to people that are important to a company. Guerilla marketing is the same bad war on attrition on attention by other means (we’ll plant improvised explosive messages by the roadside, we’ll booby trap bits of media and objects in the real world so that the message will blow up in their faces when they touch it).

Anyway, I need to go and do some more book-writing… As I said before – normal service on this blog will be restored in September. Just need to get this out of my system.
Meantime here’s Mr Haque talking about thick value…


New models for network business: Crowds/Tribes/Teams…

Image: Wanna Play Revolution? Some fine graffiti behind Brighton station
Image: Wanna Play Revolution? Some fine graffiti behind Brighton station...

Networks change everything they touch. New models for business will emerge as we begin to understand their potential.

Recently I’ve seen a potential model for loose networks of individuals to be applied to real-world challenges.

Let me tell you about it…

The SOMESSO conference in London on Friday was a deep draft of insights on how the age of networks is beginning to transform business.

I arrived after lunch, just in time to catch a double-blast of Lee Bryant and Umair Haque. Both had intensely engaging and compelling arguments to make – Lee about throwing off the 20th’s century organisation’s legacies and Umair about how the Obama campaign gives us a view on how 21st century organsations can succeed. More on those later, mostly likely – they were taking mee deeper into ideas I’ve been following them develop on their respective blogs.

There was something very new to me though, in Lloyd Davis’s presentation based loosley around the themes and stories of being a “social artist” and the work of art that is the Tuttle Club.

Social Media Club’s been running in London for a while now, and new nodes are springing up in various locales. And now Lloyd a hundred or so Tuttlers are trying out a new approac to appying their distributed talents, experiences and knowledge to real-world problems.

The formula is simple: Crowds / Tribes / Teams. (Its so elegant and compelling that I recalled it immediately afterwards without referring to notes, and have had the phrase/structure bouncing round my head all weekend.)

Read Lloyd’s post at the Tuttle Club blog for more on this, but here’s the nub as it is applied to a consulting process:

We begin by meeting you as a Crowd of highly experienced, highly creative and highly competent people. As we engage with your business, we work with you to create a series of Tribes – groups formed around your specific business issues, made up of those most engaged by them, and with experience most relevant to them. Finally, each Tribe becomes a Team, committed to delivering clearly defined solutions to specific, carefully considered issues.

This model is no in play, apparently. I can’t wait to hear about their adventures…

New models for network business: Crowds/Tribes/Teams…

Image: Wanna Play Revolution? Some fine graffiti behind Brighton station
Image: Wanna Play Revolution? Some fine graffiti behind Brighton station...

Networks change everything they touch. New models for business will emerge as we begin to understand their potential.

Recently I’ve seen a potential model for loose networks of individuals to be applied to real-world challenges.

Let me tell you about it…

The SOMESSO conference in London on Friday was a deep draft of insights on how the age of networks is beginning to transform business.

I arrived after lunch, just in time to catch a double-blast of Lee Bryant and Umair Haque. Both had intensely engaging and compelling arguments to make – Lee about throwing off the 20th’s century organisation’s legacies and Umair about how the Obama campaign gives us a view on how 21st century organsations can succeed. More on those later, mostly likely – they were taking mee deeper into ideas I’ve been following them develop on their respective blogs.

There was something very new to me though, in Lloyd Davis’s presentation based loosley around the themes and stories of being a “social artist” and the work of art that is the Tuttle Club.

Social Media Club’s been running in London for a while now, and new nodes are springing up in various locales. And now Lloyd a hundred or so Tuttlers are trying out a new approac to appying their distributed talents, experiences and knowledge to real-world problems.

The formula is simple: Crowds / Tribes / Teams. (Its so elegant and compelling that I recalled it immediately afterwards without referring to notes, and have had the phrase/structure bouncing round my head all weekend.)

Read Lloyd’s post at the Tuttle Club blog for more on this, but here’s the nub as it is applied to a consulting process:

We begin by meeting you as a Crowd of highly experienced, highly creative and highly competent people. As we engage with your business, we work with you to create a series of Tribes – groups formed around your specific business issues, made up of those most engaged by them, and with experience most relevant to them. Finally, each Tribe becomes a Team, committed to delivering clearly defined solutions to specific, carefully considered issues.

This model is no in play, apparently. I can’t wait to hear about their adventures…

New models for network business: Crowds/Tribes/Teams…

Image: Wanna Play Revolution? Some fine graffiti behind Brighton station
Image: Wanna Play Revolution? Some fine graffiti behind Brighton station...

Networks change everything they touch. New models for business will emerge as we begin to understand their potential.

Recently I’ve seen a potential model for loose networks of individuals to be applied to real-world challenges.

Let me tell you about it…

The SOMESSO conference in London on Friday was a deep draft of insights on how the age of networks is beginning to transform business.

I arrived after lunch, just in time to catch a double-blast of Lee Bryant and Umair Haque. Both had intensely engaging and compelling arguments to make – Lee about throwing off the 20th’s century organisation’s legacies and Umair about how the Obama campaign gives us a view on how 21st century organsations can succeed. More on those later, mostly likely – they were taking mee deeper into ideas I’ve been following them develop on their respective blogs.

There was something very new to me though, in Lloyd Davis’s presentation based loosley around the themes and stories of being a “social artist” and the work of art that is the Tuttle Club.

Social Media Club’s been running in London for a while now, and new nodes are springing up in various locales. And now Lloyd a hundred or so Tuttlers are trying out a new approac to appying their distributed talents, experiences and knowledge to real-world problems.

The formula is simple: Crowds / Tribes / Teams. (Its so elegant and compelling that I recalled it immediately afterwards without referring to notes, and have had the phrase/structure bouncing round my head all weekend.)

Read Lloyd’s post at the Tuttle Club blog for more on this, but here’s the nub as it is applied to a consulting process:

We begin by meeting you as a Crowd of highly experienced, highly creative and highly competent people. As we engage with your business, we work with you to create a series of Tribes – groups formed around your specific business issues, made up of those most engaged by them, and with experience most relevant to them. Finally, each Tribe becomes a Team, committed to delivering clearly defined solutions to specific, carefully considered issues.

This model is no in play, apparently. I can’t wait to hear about their adventures…