Post Consumerism Presentation

Business Models for a
Post-Consumer World
Sunday, October 16, 2011
Not concerned with how this

scenario comes to pass today, just
to describe the market differences
for you to respond to.
CONSUMPTION
CONSUMERISM
Everything living has to consume.

The different is purpose.
Lets first look quickly at
consumerism before we look at
post-consumerism.
The Duty to consume, whether out
of patriotism, pro-business, or
simple gluttony, its not good for
CONSUMERISM IS A FAIL
Ill get right to it: Consumerism is a

fail... and we need to replace it.
It hasnt made us healthy.
It hasnt made us wealthy (as a

whole, only for a few). Consumerism
may be a fail, but not for everyone.
We cant afford consumerism--and
never could.
It hasnt made us wiser (or, at least,

more educated).
So, if it hasnt made us healthy,
wealthy, or wise, has it at least made
us happy?
1. Denmark
2. Switzerland
3. Austria
4. Iceland
5. The Bahamas
6. Finland
7. Sweden
8. Bhutan
9. Brunei
10. Canada
11. Ireland
12. Luxembourg
13. Costa Rica
14. Malta
15. The Netherlands
16. Antigua and Barb
17. Malaysia
18. New Zealand
19. Norway
20. The Seychelles
2006, Adrian White, Leicester University's School of Psychology
23. USA
35. Germany
41. UK
62. France
82. China
90. Japan
125. India
167. Russia
No. This graph makes it look good

since were in the top category but
were actually pretty far down the
list: 23rd!
2009 Gallup World Poll

Perhaps, its getting a little better in

5 years?
None of this is surprising to anyone
whos got their eyes open.
Furthermore, consumerism has

been disrespectful...
FURTHERMORE, ITS
DISRESPECTFUL
TO THE PLANET, TO
OTHERS WHO LIVE ON IT,
AND TO FUTURE
GENERATIONS
Furthermore, consumerism has

been disrespectful... to ourselves, to
the planet, and to future
generations.
The fact that we glorify it is just sad.

We dont, as a rule, glorify other
addictions.
Retail Therapy
This is a result of consumer culture

(in Allan Chochinovs terms, a
consequence).
Planned Obsolescence is a driver

of consumer culture--not just a
product of design, but of marketing,
operations, and finance, as well. It
may be one of the biggest drivers
of our economy, in fact.
THE US ECONOMY IS WEAK
But, consumerism has made us

weaker. When the imperative after a
National emergency is to go
shopping, thats not the indicator of
a resilient economy. Whos the
developed country now?
Consumerism is un-American ... at

least it was.
How did we get here? Weve built

our economy on false assumptions
and models and we measure our
progress with the very tools that
cause us to make policies that make
things worse.
WHAT DO WE DO?
What do we do about it?
Were Citizens,
Not Consumers
We even have to stop using the

word consumer. If were going to
define ourselves by our actions,
couldnt we chose better activities?
You can use citizen, people or
person if you like.
Consumerist
Post-Consumer
Consumerism
Manufacture needs
Managerial
Liquidating capital
No regulation
Speculation
Conservative
Private value
Sustainable experiences
Manufacture offerings
Entrepreneurial
Creating capital
Enabling regulation
Investing
Conservative
Public value
Im not going to address, here, how

we might get to a post-consumer
world. For now, lets try to imagine
what it might be like?
This isnt either-or but about the
average or zeitgeist. This relates to
Terry Irwins divde between
orientations of a mechanistic to
holistic world view. We need to find
a dynamic balance between the two
Behavior Change:
Citizens buy less.
They share more.
They repair and reuse.
They sell what they no
longer need.
They DIY more.
Post-consumers empty-out their

garages and storage units (and they
feel better for it).
They dont DIY everything but
everyone DIYs something. People
value the homemade more (though
more for cultural, rather than
technological, products). This
includes movies, music, products,
Behavior Change:
Citizens seek experiences.
They value values and
want meaning integrated.
They buy less stuff but
more services.
They value quality and
longevity.
Behavior Change:
Citizens favor their local
communities and
businesses.
They travel less (especially
for business) but spend
more when they do.
Shopping Entertainment.
Market Change:
Glut of products (new and
used).
Organizations scramble.
High competition to
differentiate.
Fewer jobs in the short-run.
Lower incomes.
Ebay explodes (even more)

What happens when your
customers stop buying things they
don't need or focus on the
products, services, and
experiences that are long-lasting
and meaningful for them? Where
do you generate revenue if your
customers only buy your offerings
Market Change:
Connection to customer is
everything > Lifestyle.
Rise of generics.
Brands must tie to
performance of meaning.
Brand loyalty increases.
Weve been here before.

Acknowledging our past isnt
regressive We still see a
progressive future but with values
weve had in the past.
The values this country were
founded and built upon werent
waste and excess. Our great
grand-parents and the Founding
Fathers would be horrified and sad
Wont somebody please

think of the companies!?
Im sorry if your company makes a

bunch of crap we dont really need
or isnt good for people. If youre
business model requires people to
pay more than they have for
something that doesnt last, over
and over, its time to innovate.
Evolve or die. You need a new
business model. We all will need
new business models, regardless.
Hewlett-Packard
What does HP do when people cut-back on
printing?
No one decries the need to save the

petticoat industry or the horse-drawn
buggies. If HP has to rethink its
printer business in the face of new
technologies, so be it. They werent
always in the printer business
anyway.
This isnt just an effect of postconsumerism, this can also be an
Rickshaw Bags:
Mass Customization
Business Model: Mass

customization (as an option), no
returns (build to order), returnable
packaging, repairable, evolvable
(baby kit).
Apple, Inc.
Free Services that sell Products
Examples: Give away services to

sell product
Dematerialize everything else, build
an ecosystem, kill everyone elses
products.
Telcos:
Free Products to Sell Services
Freemium (Tiered Services)

Still services: This is why Service

Design is so important.
Facebook:
Be the Platform (Infrastructure)
Still selling services (or data)
Superior Experiences
(Whether product, service, event, or

place). This is why Experience
Design is so important!
BTW, there is always an experience,
whether you design it or not.
Meaningful Experiences
The best experiences of all.
Some Examples: We see elements

of this today. These are both postconsumer AND more sustainable.
Design for Recycling (and

Upcycling)
Design for (deliberate) Reuse
Play Bank: Tim Bishop, Ingrid Dragotta, Jennifer Pechacek, Nicole Trautsch
Play Bank is a toy ecosystem that

circulates toys from children no
longer interested in them to those
who would be. Like a library and
workshop combined, children bring
in old toys and check-out new ones
and can create their own from parts
in the bank. This requires a new
business model that addresses a
less consumptive society.
Big Idea/ Panoramic After

not if.. or when... but how (beth)
Bike'Topia: Adam Dole, Beth Berrean, Henry Liu, Jason Hui, Sara Kozlowski, Ayano Hattori
BikeTopia is an innovative bike rental system that

secures bikes via pedal vending machines, tracks
them throughout the city, and offers mobile services
for both bikers and local businesses.
Big Idea/ Panoramic After

not if.. or when... but how (beth)


Small Steps: Erin Jacobs, Erica Meade, Kathryn Hautanen, Kate Ranson-Walsh
SmallSteps helps people make small, attainable

changes in their lives to be more sustainable,
building on progress, until they reach their goals.
When they complete all four phases, they become
the next mentors to help others through the
process.
Small Steps: Erin Jacobs, Erica Meade, Kathryn Hautanen, Kate Ranson-Walsh
SmallSteps helps people make small, attainable

changes in their lives to be more sustainable,
building on progress, until they reach their goals.
When they complete all four phases, they become
the next mentors to help others through the
process.
!"#$%
&'()
*+,,-('./
#0+-.
1+2'(
BINGO! LOOK WHAT WE FOUND...

LOGIN
PRETTY PLEASE!
Username
Password
LOGIN
WHAT?
NOT AN URBAVORE?
JOIN THE PARTY...
I WANT IN!
THERES A MILLION
REASONS WHY...
FRUIT
VEGETABLE
HERBS
MULTIPLE
Urbavore: Amy Guittard, Audrey Ma, Ewa Guzek, Hannah Robinson

Urbavore helps urban farmers, neighbors, and

restaurants find an sell the most local produce.
Legendary: Guillaume Driscoll, Christina Goebel, Sandjar Kozubaev, Lauren Nham, Dave Reinhardt
A new model for durable furniture

that has provenance. This isnt
possible simply as a set of new
design or product development
processes. Its not possible just by
adding service, either. You need to
build a new, viable, and sustainable
business model to make this kind of
solution work.
Post-Consumer World:
Citizens buy less.
They share more.
They repair and reuse.
They sell what they no longer need.
They DIY more.
Citizens seek experiences.
They value values and want meaning integrated.
They buy less stuff but more services.
They value quality and longevity.
Citizens favor their local communities and businesses.
They travel less (especially for business) but spend more when they do.
Shopping Entertainment.
Glut of products (new and used).
Organizations scramble.
High competition to differentiate.
Fewer jobs in the short-run.
Lower incomes.
Connection to customer is everything > Lifestyle.
Rise of generics.
Brands must tie to performance of meaning.
Brand loyalty increases.
What you can do...
Acknowledge your Bias
Get it down on paper, in a room, etc.

Then shut the book/door and go
meet real people with fresh eyes.
Focus on People
Its never about technology. TALK to

people/your customers.
Focus on Meaning
... whether youve been asked to or

not.
If something must define us, instead
of consumerism and consumption,
why not something that actually
does: meaning.
MEANING
VALUES/IDENTITY
EMOTIONS
PRICE
FEATURES (PERF.)
15 CORE MEANINGS:
Accomplishment
Beauty
Creation
Community
Duty
Enlightenment
Freedom
Harmony
Justice
Oneness
Redemption
Security
Truth
Validation
Wonder
Definitions: makingmeaning.org
More meaningful experiences arent

thrown-out as easily. > more
sustainable solutions and higher
customer loyalty, engagement, and
relationship.
Do your own Research
...otherwise, you have no idea of

where it came from, its validity, etc.
Dont trust what youre given unless
you trust the people who did the
research (and know their process).
Find Needs, not solutions
Sounds a lot like design thinking/

process, right?
Turn down the wrong work
You can use Meaning to help you

find the right customers, company,
and team. (We used to do this very
thing for projects that promoted
cigarettes, etc.) > now we should
reconsider working on projects that
promote consumerism and waste.
Organizations
Meaning
Priorities
Customer
Meaning
Priorities
Focus
Team/Your
Meaning
Priorities
Competitors Meaning
Priorities
Now, you have a place to start

focusing on meaning. This is what
drives the design.
Focus on the experience
When you find the right experience,

you uncover the best opportunity.
Be aware of the business
You cant see the opportunity if you

dont see the system or understand
the business. You dont have to be
an expert in business but you need
to see where and how the money
flows through the experience.
Design the Business Model
Business Models are

designable ...not merely the
outcome of other business
processes.
Design New Metrics
Gross National Happiness, Genuine

Progress Indicator, others. These
are projects that need designers to
develop and communicate how they
work, what they measure, and why
theyre better. Economists need our
help.
Youre holding a handbook for visionaries, game changers,

and challengers striving to defy outmoded business models
and design tomorrows enterprises. Its a book for the
written by
Alexander Osterwalder & Yves Pigneur
co-created by
An amazing crowd of 470 practitioners from 45 countries
designed by
Alan Smith, The Movement
This approach has been growing

since the publication of this crowdsourced book.
The Business Model Canvas

Key
Partners
Key
Activities
Value
Proposition
Customer
Relationships
Key
Resources
Cost
Structure
Customer
Segments
Channels
Revenue
Streams
www.businessmodelgeneration.com
It describes a business model

canvas. Download a PDF for the
first 72 pages of the book (and the
canvas).
data from each area (in appropriate ways):

Who are our customers?
What are their needs?
How do we meet them?
What do they respond to?
What are our communication channels?

Who needs to know (internally)?
Who needs to know (externally)?
What are our messages?
Customers, Media, Community, etc.)?

How do we manage, maintain,
and grow our networks?
Who are our competitors?
Who will resist our success?
Do we have unique production expertise?

What do we already produce?
What do others produce?
What are the strengths, weaknesses, and risks
in our supply chain?
BRAND
CUSTOMER
(MARKET CONTEXT)
VALUE
FINANCE
TACTICS/IMPLEMENTATION
(INDUSTRY CONTEXT)
ORGANIZATION
DESIGN
NETWORK/
STAKEHOLDERS
PRODUCTION
OFFER
NEEDS
INTENT
VALUE
EXPERIENCE
DELIVERY
RESOURCES
FINANCE
NETWORK/
STAKEHOLDERS
INTENT
STRATEGY
(VISION)
ORGANIZATION
DESIGN
PRODUCTION
OFFER
VALUE
EXPERIENCE
RESOURCES
DELIVERY
www.cca.edu/academics/graduate/design-mba/open
CCA LEADING BY DESIGN FELLOWS PROGRAM & SMALL BUT MIGHTY
Well be discussing an even newer

model today: The Dynamic Value
Model, developed at CCA in the
Fellows Program. Slightly more
complex, integrates a few more
areas. Templates for you to use
today.
This model doesnt, by default,
ERNAL (ORG
T
)
IN
TOMER
CUS
NEEDS
Customer and customer needs are

front and center (where they
belong)especially in an
increasingly customer-driven
market.
FINANCE
NETWORK/
STAKEHOLDERS
ORGANIZATION
DESIGN
PRODUCTION
EXPERIENCE
VALUE
TOMER
CUS
ERNAL (ORG
T
)
IN
INTENT
OFFER
RESOURCES
DELIVERY
Only by thinking holistically,

systemically, can we develop
elegant innovations that respond to
actual customer needs.
FINANCE
NETWORK/
STAKEHOLDERS
ORGANIZATION
DESIGN
PRODUCTION
EXPERIENCE
VALUE
OFFER
RESOURCES
DELIVERY
Value emerges as a result of

business activities. This isnt
something declared but something
derived.
TOMER
CUS
ERNAL (ORG
T
)
IN
INTENT
ERNAL (ORG
T
)
IN
NEEDS
TOMER
CUS
BRAND
Brand, too, is emergent, as its a

shadow of the organization seen
and felt by customers through their
experience. Were not going to
focus on this today.
data from each area (in appropriate ways):

Who are our customers?
What are their needs?
How do we meet them?
What do they respond to?
What are our communication channels?

Who needs to know (internally)?
Who needs to know (externally)?
What are our messages?
Customers, Media, Community, etc.)?

How do we manage, maintain,
and grow our networks?
Who are our competitors?
Who will resist our success?
Do we have unique production expertise?

What do we already produce?
What do others produce?
What are the strengths, weaknesses, and risks
in our supply chain?
BRAND
CUSTOMER
(MARKET CONTEXT)
VALUE
FINANCE
TACTICS/IMPLEMENTATION
(INDUSTRY CONTEXT)
ORGANIZATION
DESIGN
NETWORK/
STAKEHOLDERS
PRODUCTION
OFFER
NEEDS
INTENT
VALUE
EXPERIENCE
DELIVERY
RESOURCES
FINANCE
NETWORK/
STAKEHOLDERS
INTENT
STRATEGY
(VISION)
ORGANIZATION
DESIGN
PRODUCTION
OFFER
VALUE
EXPERIENCE
RESOURCES
DELIVERY
CCA LEADING BY DESIGN FELLOWS PROGRAM & SMALL BUT MIGHTY
Case:
SOLID STATE SHOES
What does a <fashion> company do

when fewer people buy fewer goods
they dont need?
START HERE >
TOMER
CUS
ERNAL (ORG
T
)
IN
CU
Customers want new and

different (non-mainstream)
Increasingly local and
1
NEEDS
sustainably
aware
Say that quality is important
Have many pairs of shoes
High loyalty
100% Family-owned
High margin, low volume
Tax-incentives for US jobs
Desire to double sales and
increaseFINANCE
profit by 20%
Med. fixed & high var. costs
Lots of returns
Growth funded by profits
ERNAL (ORG
T
)
IN
30% Manufactured in USA

and Canada
70% in Turkey, Bulgaria,
and Southeast Asia
Standard production methods
PRODUCTION
Some specialized
training
Subject to worker issues in
SE Asia and increased regulat.
Increased scarcity and cost of

quality ingredients
No significant IP or processes
RESOURCES
Lot of material
waste
Strategic partnership for leather
Quality, respected brand

Family-owned
Heritage, Integrity, Pride,
Craftsmanship,
INTENTDistinction
No direct sales: boutiques,

high-end stores
Great customer service
(customers feel catered-to)
Enduring style, not trendy
EXPERIENCE
Personal shopping in
boutiques
Limited editions in Collette
Deliver to wholesalers
No end-user customers
Global supply chain
DELIVERY
High inventory
costs (sizes)
Fulfill seasonally (sell forward)
VALUE
Wide product style range

Accessories as well as shoes
No other benefits (no events,
places, OFFER
etc.)
Standard customer service
TOMER
CUS
Designers disconnected from

operations decisions
Constrained logistics team
Light market research
ORGANIZATION
Outsourced
IT, production
DESIGN
High training and
manag. costs
of internal customer service
Inefficient internal controls and
decision-making
Design is driven internally,

not involve manufacturers,
customers and buyer
NETWORK/
No CSR
strategy
NoSTAKEHOLDERS
NGO partnerships
Lots of competitors
Noisy, fragmented market
Thats it
(for now)
nathan@nathan.com

Post Consumerism Presentation

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Business Models for a

Not concerned with how this

Sunday, October 16, 2011

Everything living has to consume.

Sunday, October 16, 2011

Ill get right to it: Consumerism is a

Sunday, October 16, 2011

It hasnt made us healthy.

Sunday, October 16, 2011

It hasnt made us wealthy (as a

Sunday, October 16, 2011

It hasnt made us wiser (or, at least,

2006, Adrian White, Leicester University's School of Psychology

Sunday, October 16, 2011

No. This graph makes it look good

2009 Gallup World Poll

Perhaps, its getting a little better in

Sunday, October 16, 2011

Furthermore, consumerism has

Sunday, October 16, 2011

Furthermore, consumerism has

Sunday, October 16, 2011

The fact that we glorify it is just sad.

Sunday, October 16, 2011

This is a result of consumer culture

Sunday, October 16, 2011

Planned Obsolescence is a driver

THE US ECONOMY IS WEAK

Sunday, October 16, 2011

But, consumerism has made us

Sunday, October 16, 2011

Consumerism is un-American ... at

Sunday, October 16, 2011

How did we get here? Weve built

Sunday, October 16, 2011

What do we do about it?

Sunday, October 16, 2011

We even have to stop using the

Sunday, October 16, 2011

Im not going to address, here, how

Post-consumers empty-out their

Ebay explodes (even more)

Sunday, October 16, 2011

Weve been here before.

Wont somebody please

Im sorry if your company makes a

Sunday, October 16, 2011

No one decries the need to save the

Business Model: Mass

Examples: Give away services to

Freemium (Tiered Services)

Still services: This is why Service

Still selling services (or data)

(Whether product, service, event, or

The best experiences of all.

Sunday, October 16, 2011

Some Examples: We see elements

Sunday, October 16, 2011

Design for Recycling (and

Sunday, October 16, 2011

Design for (deliberate) Reuse

Play Bank is a toy ecosystem that