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Slides for a talk I gave for Zuora at Subscribed 2012 in London. Topics are the subscription economy, VRM, customer commons, and business problems that can only be solved from the customer's side—subsription hell especially.
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- 12. Don’t track me.
- 16. Evolution of the Web, so far: We’ve been stuck in client-server since ‘95.
- 18. 18
- 22. 22
- 24. VRM is how this gets replaced by this:
- 25. VRM is about better signaling — both ways.
- 26. VRM is about real relationships.
- 27. VRM gives customers tools and services for two things: 1. Independence 2. Engagement
- 28. With VRM, the customer drives.
- 29. With VRM you control your data and how it’s used.
- 30. With VRM you control your data and how it’s used.
- 31. With VRM you set your own policies, preferences and terms of service. For example: “Don’t track me outside your site or service.” “Give me my data in the usable form I specify.” “Wipe my data when I say so.” “Here’s my fourth party, who represents me.” “Here’s my trust network.”
- 32. With VRM you can “intentcast” to the whole market.
- 33. With VRM you can manage many relationships your own way.
- 36. Subscriptions
- 38. For all of us.
Editor's Notes
- HERE’S THE SHORT SUMMARY…
- TRE INTENTION ECONOMY AND THE SUBSCRIPTION ECONOMY ARE MATCHED AS TWO MAGNETS FACING EACH OTHER. MY CASE IS THAT THERE WILL BE, AND NEEDS TO BE, A RELATIONSHP BETWEEN THE TWO. BUT WE’RE STILL STUCK WITH SOME VERY BAD BUSINESS HABITS THAT CAN ONLY BE FIXED BY WORKING BOTH THE DEMAND AND THE SUPPLY SIDE, TOGETHER. TO SHOW JUST HOW BAD IT CAN GET, MEET AN AMERICAN FOLK HERO…
- MEET MONA SHAW. GRANDMOTHER. RETIRED NURSE. CHURCH LADY. TAKES IN STRAY ANIMALS. ALSO KNOWN AS MONA THE HAMMER. SHE’S A HERO FOR DOING BATTLE AGAINST ONE OF THE GREAT AMERICAN MONOPOLIES: COMCAST. (details of the story)
- COMCAST IS A SUBSCRIPTION BUSINESS, AND SHOULD BE UTTERING WHAT TIEN SAID IN HIS KEYNOTE. (read word balloon) BUT IN FACT, MONA SHAW NEEDS EXACTLY THE SAME THING. BUT SHE DOESN’T HAVE IT BECAUSE WE’RE STUCK IN A SYSTEM. OR A SET OF SYSTEMS, TOO MANY OF WHICH ARE DEVOTED TO NEVER INTERACTING DIRECTLY WITH A CUSTOMER. THIS IS TRUE EVEN — OR ESPECIALLY — WITH BIG DATA. FOR EXAMPLE…
- IBM. THIS IS WHAT OFTEN MEETS YOU IF YOU GO TO IBM’S WEBSITE. SOMETIMES IT APPEARS AS AN AD. THERE IS NO ACTUAL CUSTOMER HERE. SHE IS NOT DRIVING. YOU ARE NOT DRIVING. THEY GET A PORTRAIT OF YOU. BUT PORTRAITS DON’T DRIVE. PEOPLE DO. THE REST IS THE USUAL JIVE: “SEAMLESS EXPERIENCE”… “BRANDING”… AND HOW DO THEY GET THESE MILLION POINTS OF DATA?
- BY FOLLOWING YOU AROUND. THEY PLANT COOKIES AND TRACKING BEACONS ON YOUR BROWSER WHEN YOU VISIT A WEBSITE. THEY FOLLOW YOUR PHONE. YOU ASKED FOR NONE OF IT, AND THEY CAN GET AWAY WITH IT BECAUSE YOU DON’T SEE IT HAPP[ENING.
- THIS IS A STUDY DONE BY THE WALL STREET JOURNAL IN THE SUMMER OF 2010. IT’S FAR WORSE TODAY. ON THE RIGHT IS A LIST OF TRACKING FILES JUST ONE WEBSITE TRIED TO PUT IN MY BROWSER, ACCORDING TO A COMPANY CALLED GHOSTERY. I ACTUALLY RAN OUT OF ROOM TO COPY THE WHOLE LIST.
- THE BIGGEST PUSHBACK TODAY IS WITH AD BLOCKING ADD-ONS. THESE ARE THE STATS, AS OF YESTERDAY, JUST FOR ADBLOCK PLUS, JUST ON ONE BROWSER.
- CLARITYRAY DID A SURVEY PUBLISHED EARLIER THIS YEAR. (review results)
- NOTE HOW POORLY INTERNET EXPLORER DOES. IN FACT EXPLORER HAS BEEN LOSING SHARE FOR YEARS, AND MICROSOFT IS TIRED OF IT. SO THEY DECIDED TO DO SOMETHING ABOUT THAT BY SIDING WITH THE USER IN THE FIGHT AGAINST TRACKIG.
- HERE’S A SEARCH ON BING YESTERDAY FOR MICROSOFT AND DO NO TTRACK. IT’S IMPORTANT TO KNOW WHAT “DO NOT TRACK” ACTUALLY IS.
- DO NOT TRACK IS AN HTTP HEADER. IT’S A SIMPLE SIGNAL SENT BY THE WEBSITE. HTTP HEADERS USUALLY REQUEST JUST A SITE’S CONTENT. BUT THEY CAN SAY ANYTHING. HERE IS THE REACTION OF THE ADVERTISING BUSINESS, NATURALLY. NO DIALOG HERE. BUT IN FACT…
- DIALOG IS POSSIBLE. BUSINESS CAN SAY, “OKAY, LET’S COOPERATE THEN.” LATER I’LL TELL YOU A BIT MORE ABOUT WHAT’S HAPPENING HERE. MEANWHILE, FOR BUSINESS, AND FOR ALL OF US, DIALOG IS NEARLY UN-THINKABLE. WHY IS THAT? LET’S GO BACK TO 1995, WHEN BROWSERS WERE STILL BRAND NEW.
- REMEMBER THE INFORMATION SUPERHIGHWAY? THE IDEA BEHIND A BROWSER WAS THAT YOU HAD THIS INDEPENDENT VEHICLE THAT WAS YOURS, AND YOU COULD DRIVE AROUND FROM PLACE TO PLACE ON THE WEB. BROWSING. SURFING. IT WAS LIKE A CAR. BUT IT DIDN’T PLAY OUT THAT WAY. WHAT WE HAVE TODAY, INSTEAD OF A CAR…
- IS A SHOPPING CART. AND A DIFFERENT ONE FOR EVERY SITE. IT’S LIKE OUR BROWSER GETS A NEW SKIN AT EVERY SITE, AND WE’RE TRAPPED INSIDE IT.
- HERE IS THE EVOLUTION OF THE WEB SO FAR. TIM BERNERS-LEE CREATED THIS WAY OF LINKING DOCUMENTS, ALL EQUAL, ALL AT ENDS THAT WERE LINKED TO OTHER ENDS, ANYWHERE IN THE WORLD. BUT THEN AS THE WEB GOT COMMERCIAL, EVERY WEBSITE BECAME ITS OWN SILO, WITH ITS OWN SHOPPING CARTS. WHO WE ARE FOR EACH OF THOSE SILOS IS DIFFERENT. AND EACH OF THEM HAS ITS OWN WAY OF CONTAINING BUSINESS, AND US, INSIDE. THE REASON IS CLIENT-SERVER (explain). WE’VE BEEN STUCK THERE SINCE 1995.
- ANOTHER NAME FOR CLIENT-SERVER IS CALF-COW. YOU’RE THE CALF, GOING TO THE WEBSITE’S COW FOR THE MILK OF HTML AND THESE COOKIES, SOME OF WHICH FOLLOW YOU AROUND, AND MANY OF WHICH DON’T EVEN BELONG TO THE COW. WHAT MATTERS IS THAT YOU ARE THE SUBORDINATE PARTY. THIS IS NOT A FREE OR AN EQUAL SYSTEM.
- FOR EVEIDENCE, CONSIDER WHAT YOUR IPHONE TELLS YOU EVERY FEW WEEEKS. AND, SPEAKIG OF PHONE COMPANIES, LOOK HOW ONE OF THEM HANDLES CUSTOMERS IN THEIR SUBSCRIPTION BUSINESS.
- HERE ARE AT&T’S DATA PLANS. THEY ARE THE PRODUCT OF WHAT SCOTT ADAMS CALLS A “CONFUSOPOLY.” THE IDEA IS TO FUZZ YOUR MIND INTO BOVINE MOVES. (Explain why the 3GB plan is the least scammy.) IT GETS WORSE IF YOU LEAVE THE COUNTRY….
- THIS IS AT&T’S SET OF PACKAGES FOR DATA OUTSIDE THE U.S. THE BASE “PAY PER USE” PACKAGE RATE IS $19,500 PER GB, OR 1950x HIGHER THAN THE U.S. DATA RATE. NOTE ALSO THAT THE GB RATE IS $180 FOR THE “ALLOWANCE.” AND THAT THE ONLY PLAN WORTH BUYING IS THE $30 ONE. NOTE: YOU HAVE TO HATE YOUR CUSTOMERS TO DO THIS. ALSO, THE FIRST COST OF A BIT IS ZERO.
- THE POWER ASYMMETRY EXTENDS TO YOUR DEVICE. HERE’S WHAT YOU HAVE TO DO TO MONITOR YOUR USAGE. RIDICULOUS. (CLUETRAIN STORY, LEAD UP TO BERKMAN…)
- SO IN 2006 I STARTED PROJECTVRM AT THE BERKMAN CENTER. (brief story)
- VRM IS HOW THE CALF-COW SYSTEM GETS REPLACED BY ONE WHERE DEMAND AND SUPPLY DEAL AS EQUALS, IMPROVING THE MARKETPLACE FOR BOTH.
- SMIPLY PUT, VRM IS ABOUT BETTER SIGNALING, BOTH WAYS. INSTEAD OF “SIGN MY ONE-SIDED AGREEMENT,” OR “GO TO OUR WEBSITE, WHERE THE NMBER OF OUR CALL CENTER IS BURIED,” WE GET REAL CONVERSATION.
- VRM IS ABOUT REAL RELATIONSHIPS. NOT CLAIMED ONES, LIKE YOU GET WITH LOYALTY CARDS. (Note that the heart comes from a Zuora video.)
- VRM IS SIMPLE. IT GIVES CUSTOMERS TOOLS FOR JUST TWO THINGS: INDEPENDENCE AND ENGAGEMENT. YOU’LL NOTE THAT CAR DOES THAT TOO. IN FACT IN THE PHYSICAL WORLD, WE’VE HAD VRM TOOLS, LIKE THE CAR, FOR A LONG TIME.
- WITH VRM, THE CUSTOMER DRIVES. SHE DRIVES HER OWN VEHICLE, AND SHE DRIVES DEMAND IN THE DIRECTION OF BUSINESS.
- WITH VRM YOU CONTROL HOW YOUR DATA IS USED. YOU COLLECT IT, STORE IT, AND AUTHORIZE THE SELECTIVE DISCLOSURE AND SHARING OF IT, FOR YOUR OWN PURPOSES, AND FOR THOSE THAT WORK FOR OTHERS AS WELL. BUT CONTROL IS WHAT MATTERS.
- THIS INCLUDES WHAT’S CALLED “QUANTIFIED SELF” OR QS DATA. QS IS A SERIOUS MOVEMENT. WHAT I SHOW ARE THREE OF THE QS TOOLS THAT I USE.
- WITH VRM YOU SET YOUR OWN POLICIES, PREFERENCES AND TERMS OF SERVICE. (list)
- WITH VRM YOU CAN INTENTCAST TO THE WHOLE MARKET, WITHOUT LOSING CONTROL OF YOUR DATA, OR YOUR PRIVACY. AND DO IT OUTSIDE ANYBODY’S SILO.
- WITH VRM YOU CAN MANAGE MANY RELATIONSHIPS YOUR WAY. FOR EXAMPLE, BY CHANGING YOUR ADDRESS ONCE FOR MANY SERVICES, OR SUBSCRIPTIONS.
- THESE ARE SOME OF THE MANY COMPANIES DOING VRM WORK. I’LL SORT THEM BY NATINOALITY. (Finish with Kynetx, and Phil Windley.)
- PHIL IS A PH.D. COMPUTER SCIENTIST, FORMER CIO OF UTAH, AUTHOR OF THE LIVE WEB, AND DEVELOPER OF THE TECHNOLOGIES FOR PERSONAL CLOUDS. (Explain a bit.) PHIL AND OTHER VRM DEVELOPERS ARE WORKING RIGHT NOW ON A PROTOTYPE USING PERSONAL CLOUDS, FOR SWIFT. (Detail.)
- HERE’S HOW IT WORKS FOR MONA SHAW. THIS PILE OF BRICKS ON THE RIGHT IS HER OPERATING SYSTEM, FOR HER PERSONAL CLOUD ON THE LIVE WEB. NOTE THAT SUBSCRIPTIONS CAN EXIST AS A SERVICE, OR AS AN APP, RIGHT HERE. ON THE DEMAND SIDE, SHE CAN USE HER SUBSCRIPTION SERVICE AND APP TO MANAGE ALL HER SUBSCRIP[TIONS THE SAME WAY. SHE CAN DO BETTER SIGNALING, AND THE COMPANIES SHE DEAL WITH GET BETTER DATA AND HEURISTICS. AND, OF COURSE, THIS IS WHERE ZUORA COMES IN. THIS IS ONE EXAMPLE OF MANY, BUT I WANT TO SHOW IT BECAUSE IT’S IN THE WORKS NOW. AND AT THE BASE LEVEL IT’S OPEN SOURCE.
- SO THE RESULT, LONG TERM, IS HERE. THE INTENTION ECONOMY MEETS THE SUBSCRIPTION ECONOMY. NOW LET’S DO THE Q&A.
- FINAL CALL TO ACTION: CUSTOMER COMMONS. IT’S NEW, AND IT’S FOR ALL OF US. (Details.)