The first wave of the Internet as a disruptive technological innovation has created game-changing and deal-changing effects on traditional social and organizational norms.
The effects associated with the second wave of this innovation have been given many names (Internet 2.0, Web 2.0, the read-write Web, etc.), but it’s worth examining the nature of this wave of change as we try to adjust as individuals, organizations, and society to where it has brought us so far, and where we might be going.
It can be helpful to consider a short list of what types of change this innovation has ushered in and what has been made obsolete or at least passe. Parsed out as categories, we can consider them as “no more” and “now new.”
So to kick it off as a discussion starter, here are a few “no more” and “now new” concepts to consider.
No More: Broadcasting (or anything like it, including slimmed down versions like narrowcasting). Think of it as no more dial changing from pre-selects determined by others instead of yourself.
Now New: Self-directed use and production of information and media. Think of it as searching from a global information storehouse for what you want, when you want it. And producing it through many means (email, blogs, social networking and social media sites, etc.) without prior approval or high cost of entry. Let me coin a term for this “now new” concept to distinguish it from broadcast: self-cast.
No More: Hard-sell marketing and sales (not even the simmered version, soft-sell).
Now New: The Internet as an informational and social medium has placed customers in empowered positions of high (if not non-negotiable) expectations with organizations who provide products or services. Social networking and social media with rapid and extensive Word Of Mouth (WOM) and user/customer rating and review infrastructure have enabled prospective and existing customers to wield powerful influence. Crowd-sourcing and other terms have been coined to represent strategies used by organizations, but perhaps a new term is due here too for the opposite of hard (and soft) sell: how about “soc-sell” (pronounced, like sosh-sell).
No More: Top-down, administrative planned change, long the mainstay of how hierarchical organizations made changes that affected their employees and customers (with little or no input from them), is winding down in the face of these new expectations.
Now New: Through research and practice, bottom-up planned change has been assuming a greater role in the way organizations redefine their operations, but the Internet has accelerated this in ways that make user, customer, and learner centered change a growing trend, especially in organizations that more heavily rely on the Internet, such as e-businesses, software companies, online learning providers, etc.
I will leave this short list for now with these initial concepts and invite your ideas about them as well as any additional entries of the “no more, now new” variety, at least for the sake of discussion and learning about this wave of Internet innovation.
Comments welcome,
Doc
Doc
I strongly agree with the ability of the internet to level if not create a digital advantage for the average consumer. I have colleagues in the industrial pressure vessel market (US). They advise that they made more profit off one industrial pressure vessel in 1980 than they do off of 5 units in today market. Sure capitalism has directly driven inefficiencies out of the market place (reducing cost), but I project that the internet has given access to non-local supplies (outside US) and that the consumer has driven the cost cutting blade by use of market knowledge via the internet.
I find myself window shopping at stores only to record the information and find the same item on line at a 20-30% discount, most times with free shipping. True it is harder to reach out and touch someone should the transaction result in warranty, returns, or just improper service. In today’s economy it appears that consumers are willing to take the risk of on-line shopping in pursuit of the ultimate reward – saving a few bucks (and in most case’s no taxes)!
Thanks Charles, for sharing your experiential insights on the disruptive changes brought on by the Internet that can favor the customer or user while making marketing and sales much more competitive. You identify the global and interconnected nature of the Internet as a primary cause in one case and the competitive position of e-businesses in attracting customers in the other case. While some customers may continue to tolerate risk in online transactions for lower prices, online providers (such as Zappos – http://www.zappos.com/) have responded to demand to reduce this risk by attending more closely to the customer and user experience.
Charles, I agree with the window shopping method. I refuse to purchase anything in a mall or “brick and mortar” store. This is also sad, since many businesses, especially “mom and pop” places have, or, are going out of business. I run a business that depends on foot traffic and I am struggling to get my staff to understand that without customer service and loyalty from the consumers…we will not be able to compete and will likely be gone in 5-10 years. Stuart
Thanks Stuart, for representing the perspective of both business and customer in highlighting these vital issues. Although most businesses need to leverage an online presence to conduct business transactions, all need to use social networking and other online strategies to promote their brand. As examples of Domino’s Pizza and Zappos illustrate, focusing on a positive customer experience can not only help your business survive, it can actually help it thrive through earned customer loyalty and even advocacy.
Doc,
You are so right in your “no more” “now new” concept. Technologies such as the internet have opened up so many doors and shut even more. It is amazing and beneficial in so many ways but also a bit unnerving to think about how many people have lost their jobs and/or livelihood to such technologies. I’m not against advancement the least bit but I do wonder when it will be time to say, “enough is enough”.
No More: Humans Now New: Robots……….This frightens me.
Thanks Gina for your insightful take and concerns on the nature of the disruptive innovation of the Internet. I think these concerns are valid, but keep in mind that while we tend to apply technology for its own sake, over time, we tend to define and constrain its use for our own sake. That’s really the difference between the first and second wave of innovation with the Internet: first technological gee-whiz, then social.
Doc, my idea of the “no more” “now new” concept reared it’s ugly head with the “Home Office” trend. Before long, the economy was such that the only offices that some workers had were at home, only not generating income. Then the home-office occupants realized that they could literally live in the home without ever having to leave. So they order groceries, liquor, maid service, dog groomers, wedding planners, bakers, tailors, doctors, pharmacies, dry cleaners, and oh yes, pizza, online. What will we do, what will we do?
Thanks Delores for sharing your concerns about the disruptive effect of the Internet. You correctly point out that the bewilderment about the nature of this innovation extends beyond the lunacy of the dot.com boom and bust and continues unabated in a modern equivalent of the “go west young man” mindset. Yes, we can work at home, not only as virtual workers and e-business entrepreneurs, but also many businesses are finally realizing that there are ways to achieve economies with increased virtualization of the workforce (as you can notice in many of your colleagues), but all this doesn’t address the huge skew between a workforce trained for skills that are no longer needed and jobs that cannot be “created” without further innovation in what we make and do and the way we make and do it. I don’t think anyone has a clear view of that future, but don’t discount the inventive and enterprising spirit of Americans. We just need to move on with it.
Doc, I have to totally agree with you concerning no more hard sale. The internet has empowered the customer. The perfect example is purchasing a car. People do their research and know exactly how much the vehicle should cost, and how much he or she is willing to pay. Customers have the upper hand when negotiating. The downside is a person can spend too much time researching because of the amount of information available. Information overload.
Thanks John, for highlighting this paradigm shift in the power balance between providers and consumers. It’s more than the rise of the consumer movement or rise of C2C and C2B, it’s the power of relevant and accessible information only keystrokes away and the rise of social networking and social media in the form of user and customer reviews, blogging, and other channels by which the nature of the deal is made transparent. When I travel, I read customer reviews of hotels and restaurants before I choose. The traditional rating systems don’t hold sway for me anymore. Anyone involved in e-business who understands this principle and applies it strategically will gain competitive advantage in the marketplace. Now, figuring that out and applying it without shooting yourself in the foot is another matter 😉
I have a great E- Business but I must tell you that I am a home office type mom and I love every minute of it. A few days a go a lady apporched me at my sons school and said so what do you do for a living..” I replied I am in direct sales”I work from home. what do you do for money she says, ” I sell vinyl. Every time I go to work I end up at a party” she prceeded to tell me that she had 2 kids , she worked 40 + hours per week and she barely made $427 per month after paying for daycare and gas. She said she “never goes to those stupid parties” My reply, well I am a stay home mom of 5 kids, I home school my two high school age boys,and I make more in 4 hours than you do in 40 hours…thanks for asking” people are definately intimidated by the direct sales and ebusinesses as many of them require you to purchase a start up kit and carry overhead. I work about an hour per day updating any specials, sending out Facebook messages, playing on my blog or sending out evites. Since all my products are custom and customers order everything online I have very little overhead. Laugh if you want but its simple and true and Customer service is my ultimate goal. I very seldom see a customer but I am sure to send out a thank you card with each order and a follow up call within a couple weeks.. business is great!
Thanks Virginia, for sharing your experience and insights with e-business and marketing through social networking in particular. Your emphasis on customer service seems to exemplify the more expansive approach of customer experience management (CEM) that I describe in my previous post: https://programhouse.com/wordpress/?p=245 I welcome your comments there as well, especially insights into what you see as the importance of early and sustained customer experience management through social networking and/or social media sites as the principal channel(s) of your e-business marketing strategy. Thanks, Doc
In this video of a TED presentation, Clay Shirky aptly illustrates the nature of the second wave (social) of the innovation we call the Internet and its influence on the rise of social media (now new) and its usurping of traditional commercial and governmental control of communications (no more).
Chris Anderson, founder of TED, makes a powerful case in support of bottom-up planned change (now new) instead of the usual top-down approach (but try to also please the users, customers, and/or learners). Chris is saying “no more” to TED’s brilliant open sourcing, but still one to many dissemination of ideas. He seems to be declaring a paradigm shift in how his organization will use the connectivity and bandwidth of the Internet and the desire of the many to share ideas through Web-based video through TED to the many. TED unleashes the network effect – bravo TED!
And thanks to Jim Cole a colleague at UMUC for sharing this video with me!