“What if your bank could tell you how your daily spend impacts your health and link to a greater or lesser interest rate return or cut on your loan?”
Presented this slide in June to a senior executive on how the real opportunity is deep behavioral data analytics which is both “Predictive” and “Reactive”. This was a company with over $1T in assets under management and the next question was. Can you come and consult to our teams and company on how we leverage this opportunity on big data,but that is really about behavioral economics? This is about “Prosumption”, the model of where “it is not mass production, but production by the masses”. Everyone is a producer of data and a consumer of analytics with one critical difference, you are equal the beneficiary of the prosumption cycle.
Saw these headlines last week and now and that’s the direction. Prosumption is disrupting consumption.
Car insurance companies want to track your every move—and you’re going to let them http://qz.com/230055 via @qz
Your Doctor Knows You’re Killing Yourself. The Data Brokers Told Her, Jun 26, 2014 9:35 AM PT
Google Tests Personal Data Market To Find Out How Much Your Personal Information Is Worth http://www.technologyreview.com/view/528866/google-tests-personal-data-market-to-find-out-how-much-your-personal-information-is/ >@TechReview
BEHAVIOR IS THE NEW WEATHER CHANNEL!
Why is economics of behavior the next frontier for companies and government. The economics of Risk-Return. Today’s models of return, risk modeling, asset valuations, liability costing, et al have a fundamental flaw and critical missing variable. “Behavior”!
This is where the real IRR is. behavior is an inventory that has multiple stock turns, predictably irrational and as a visible hand that don’t tie in with today’s ability of cost of discovery less than $0.0001 per click to find the real value of inventory and determine whether it is an asset or liability and what to offer next. This is where the real disruption of value chains lie.
Capacities are being disrupted by units and the models are all around behavior.
DISRUPTING MEDIA, CROWDSOURCING SIGNALS INTO MARKETS.
ACCESS OF BEHAVIORS AS UNITS, DISRUPTING OWNERSHIP?
This sums it all up.
The writing in on the wall and time to read business model warfare all over again. http://innovationlabs.com/BusModelWarfare.pdf
A study in 2003 titled “Business Model Warfare – The Strategy of Business Breakthroughs”, by Langdon Morris Senior Practice Scholar Ackoff Center for the Advancement of Systems Approaches (A-CASA), The University of Pennsylvania, http://www.innovationlabs.com/publications/business-model-warfare/
…highlighted the mortality of companies which was quite startling.
A study by planners at Shell found that by 1983, one-third of the companies listed among the 500 in 1970 had not only fallen from the list, but had gone out of business altogether. That’s an average mortality rate of 12 companies per year, or one per month.
In 1917, Forbes magazine created its own list of the largest 100 US companies. By 1987, 61 of those companies no longer existed. Over the seventy year span, in other words, an average of about one company per year disappeared.
The S&P 500 list provides a third reference point. In 1957, the S&P listing of 90 top companies was expanded to 500. By 1997, only 74 of the original 500 companies remained, an average mortality rate of more than 10 per year. But a more detailed analysis shows that the rate of mortality has been steadily increasing, with far more companies failing as the end of the century approached.
This is now further accelerated. The economics of behavior as inventory has changed and commoditized. This is the tsunami of change and behavior is the new weather channel.