2007 09 24 Didw
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The document discusses the need for customers to have independence and control over their own data through tools like VRM (Vendor Relationship Management). It argues that current systems like CRM (Customer Relationship Management) are about control by vendors rather than mutual relationships. VRM would empower customers by making them the center of data integration across companies and allow for more open marketplaces where both customers and vendors can have balanced, trusting relationships. This could help address issues around data silos, targeted advertising, and other problems that result from lack of customer control and choice.
2007 09 24 Didw
- 1. Managing the Decentralization of Identity — The VRM Revolution — (Thank you, Phil!)
- 2. Let’s say we all get Identity worked out. For what is all this necessary but insufficient?
- 3. We’ve got identity worked out. Now what? We pick up the gauntlet thrown down by Chris Locke in 1999:
- 4. How do we deal with human beings whose reach exceeds our grasp? We take the axes out of our own heads. This is us:
- 5. To de-axe our heads, we take the wayback machine to Alvin Toffler in 1980: ” The Industrial Age…violently split apart two aspects of our lives that had always been one... production and consumption... In so doing, it drove a giant invisible wedge into our economy, our psyches ... it ripped apart the underlying unity of society, creating a way of life filled with economic tension."
- 6. The tension is between control and freedom. Between dependence and independence. We have to stop thinking of business as a way to imprison customers. We have to stop thinking about lock-in as the best form of leverage with customers.
- 7. What does identity have to do with independence? Nothing, unless we use it to build the opposite of a prison. Namely a real public marketplace. Not just a bigger/better collection of private ones.
- 8. Clue: Private “social networks” do not make a marketplace. This isn’t a market. It’s a highly managed walled garden.
- 9. Markets are what? And relationships are the frontier. They’re what the information age is about. They’re what remove the axes from our heads.
- 10. To be in a relationship you have to be… What? Trustworthy Loyal Caring Interested Helpful Courteous… Sound familiar? It’s the Boy Scout’s Law!
- 11. Scouting rules aren’t bad for a marketplace. Scout’s Law — A Scout is: Trustworthy Loyal Helpful Friendly Courteous Kind Obedient Cheerful Thrifty Brave Clean, and Reverent.” Scout Motto: Be Prepared! Scout Slogan: Do a Good Turn Daily!
- 12. What if sellers were good scouts? Scout’s Law — A Scout is: Trustworthy Loyal Helpful Friendly Courteous Kind Obedient Cheerful Thrifty Brave Clean, and Reverent.” Scout Motto: Be Prepared! Scout Slogan: Do a Good Turn Daily!
- 13. Of course we tend to see businesses as creatures other than boy scouts. Or at least we used to.
- 14. The habitat looks a little different in the networked world. “ I used to wrestle with alligators. Then I got nibbled to death by guppies.” — Lou Cole, former MIS director, 1986
- 15. “ Somewhere along the line, we confused going to work with building a fort.” — David Weinberger Strip away the financial jibber-jabber and the management corpo-speak, and here’s our fundamental image of business: It’s in an imposing office building that towers over the landscape. Inside is everything we need. That’s good because the outside is dangerous. This fort is, at its heart, a place apart. We report there every morning and spend the next eight, ten, or twelve hours inaccessible to the "real" world. Yet…
- 16. Since the PC, we’ve been watching Drucker proven right. Corporations are human communities. Managemernt is like conducting an orchestra. Business exists to make customers and employ people, not just to make a profit. Workers are assets, not costs. Healthy organizations rely on everybody learning. The modern corporation is barely more than a century old, and still not a proven form of business life. The primary advantages of a large corporation — access to captital, global communications reach, providing benefits to workers — are eroding away.
- 17. We’ve been quoting Drucker but inside companies rather than outside them. Business is “other people’s money” In a period of upheaeaval, change is the norm. Knowledge has to be improved, challenged, and increased constantly, or it vanishes. Making good decisions is a crucial skill at every level. Management by objective works - if you know the objectives. Ninety percent of the time you don't. Management is doing things right; leadership is doing the right things. Most discussions of decision making assume that only senior executives make decisions or that only senior executives' decisions matter. This is a dangerous mistake. Most of what we call management consists of making it difficult for people to get their work done. So much of what we call management consists in making it difficult for people to work. The best way to predict the future is to create it. The most important thing in communication is hearing what isn't said. The purpose of a business is to create and keep a customer. There is nothing so useless as doing efficiently that which should not be done at all. We now accept the fact that learning is a lifelong process of keeping abreast of change. And the most pressing task is to teach people how to learn.
- 18. The customer needs to take the lead. Because the customer is the other person with the money.
- 19. How can the customer take the lead? With tools that make each of us both independent of sellers… And better able to relate to sellers. Are these (and others I insult by not finding their logos) those tools? Will these make sellers into good scouts?
- 20. For the customers to relate, they’ll need to be independent of CRM jails Because CRM — “Customer” “Relationship” “Management” — isn’t about management of the Drucker sort. It’s about control.
- 21. Independence isn’t about “power”. As Neo said to the architect, It’s about choice.
- 22. The customer needs to be the Point of Integration Making the customer the point of integration Will give CRM systems something real to relate to.
- 23. VRM is the customer’s RM, for vendors. Not of vendors. Key difference. It’s what humanizes sellers AND buyers. It’s what turns Fort Business into whatever works better in real markets… Where sellers and buyers are both human. Again. CRM VRM
- 24. VRM doesn’t exist yet. But it will. There’s a project of the Berkman Center for Internet & Society at the Harvard Law School. See http://projectvrm.org . We have a community, a wiki, a blog, conference calls… It grew out of this community.
- 25. A few use cases… Fixing raising support of (and market involvment with) public broadcasting. Especially radio. Putting patients in control of their own health care data. Putting travellers in control of offerings that might come their way. Helping telcos and cablecos find benefits to incumbency other than customer control. Removing guesswork from retailing (and, in the process, killing off unnecessary advertising) Making messaging relationship-based.
- 26. Let’s talk.