Quick note update this morning and great weather here on campus. Why is designing for “Behavior” such a critical component and competitive advantage today? Because cost of technology per behavior is less than $0.0001 per transaction, creating massive scale of inclusion not seen since before and the mobile ecosystem upstream, midstream and downstream commoditized technology middleware. Industries in the hundreds of billions are up for disruption where behavioral design is the core of the busness model.
#Behavioral business models are today disrupting business models designed when behavior discovery, collaboration and commerce were more expensive. That’s changed.
Simple: Banking with “#behavioraldesign as a pivot”.
Solar City is a classic example of behavior disrupting a multi billon dollar industry.
What is the core loop of #behavioraldesign?
- People are #PredictablyIrrational
- Business model around behavior
- Create scale from #Prosumption
- #Circularity of Upstream to Downstream
- Core loop of design (Interface, Workflow, Collaboration, Content and Commerce)
- Connect the “Adjacency (seemingly disconnected industry, ex: Google ad marketplace, or Insurance for Airbnb or other)
Why is behavior so critical? because it needs behavioral economics of #predictableIrrationality as the core pivot, around which the entire business model is designed and where the Prosumer displaces the “consumer” thinking (linearity). What’s up for disruption? Er every industry whose business models were designed when #BehavioralCommerce was lower than the return (Cost>Revenue) and ecosystems were fragmented.
BEHAVIORAL WEATHER PATTERNS AS ECONOMIC SIGNALS
“ALIA EST DIFFERENTIA”, OTHER THINGS BEING VARIABLE, IS THE VISIBLE HAND OF ECONOMICS
#BEHAVIORS OF #PREDICTABLEIRRATIONALITY, THE VISIBLE HAND OF ECONOMICS!