The Consumer Is Queen |
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Business is conducted from the inside out. Business processes are organized from the point of view of the individual consumer and aligned with the individual’s interests. Forget about what niche you’re in, or even what industry. The new enterprise asks, “Who will want us to support them, and what do they need?” Then figure out whom you need to collaborate with to make it happen. Wholly new “support networks” will cluster around individuals, families and virtual communities with the sole purpose of supporting their aims.
The new model emphasizes the distribution, rather than the concentration, of assets—people, information, authority, technology and so on. Economic value is now understood as distributed in the unmet needs of each individual: It is lodged in their hearts and minds, living rooms and kitchens. Value is “realized” in relationships of advocacy and trust. It’s no longer adequate to think that value can be “created” inside factories or offices.
History teaches us that those enterprises that move decisively to reconnect with an alienated population get rich first.
When wealth creation depends upon authentic relationships of trust and advocacy, there’s no more room for adversarial behavior that ekes out a profit at the expense of consumers, employees or suppliers. In a support network, all behavior is aligned with the interests of the individual who pays. More alignment means more cash, more profit and more well-being distributed throughout the network. eBay is an example of one small step through this looking glass. It realized previously hidden economic value by listening to and aligning itself with the needs of its members. It learned through trial and error how to engineer trust. Riding this inside-out distributed value-based logic from its inception in 1996, it posted gross sales of $70 billion last year. But eBay has addressed itself to just one tiny slice of consumer needs and in one very limited format. Imagine hundreds of eBays using a variety of means and methods, able to link and coordinate support across the widest possible spectrum from health care to house repairs—all on the consumer’s terms.
History teaches that the enterprises that move decisively to reconnect with an alienated population get rich first. But, like the thousands of companies that derided the new disciplines of mass production a century ago, there will be many that cling to current practices, determined to ride out the tide. They are unlikely to survive the next decades. CIOs with their unique expertise in distributed processing and digital platforms have the potential to help define the new enterprise logic. We need the CIO that was imagined a quarter-century ago, even more so now. It’s time for the CIO who stands on the shoulders of technology to become the champion of the individual. But don’t forget to bring your coat. It can’t be done from the sewers
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