Hypothesis: Liminal business


Major U.S. corporations that predate the Internet are liminal businesses that exist in the space between the traditional economics of the 20th century and an emergent economy characterized by fundamentally different human behaviors and values; as a result, many are likely to experience significant business disruption by new competitors that understand how the world is changing and have the flexibility to align their products and services to the new value system.

In a nutshell, I think that many mainstream businesses are embracing social media as tools without necessarily having an understanding of how human behavior is changing as a result.  Examples are all over the place, of people getting together in unique ways with their own agenda for change.
  • Open source versus corporate built: Linux, Wikipedia, Firefox, Shareware, Freeware
  • Product-service systems versus product manufacturers: hardware and software solutions versus SaaS
  • redistribution versus hyperconsumption
  • carrot and stick versus autonomy, mastery and purpose
  • peer recommended versus brand identity
  • trusted behaviors versus credit report
  • friction versus flow
  • me versus we
  • and on and on.
Early in the class I was struck by symbolic interactionism and the implication of the idea that meaning is created through the interaction between people.  What does that mean for a society that has developed an exponential capability to interact through many-to-many communication mechanisms when interaction volumes increase astronomically?  I suspect it means a period of rapid change where new ideas take hold and are implemented by people rather than institutions (open source, arab spring, collaborative consumption, etc), simply because of rapid growth of cognitive surplus applied in altruistic ways (e.g. microfinancing) to address pervasive problems that mainstream institutions can’t seem to solve.  I think there is evidence (on web sites) that many businesses do not understand how fundamental the changes are and simply view social media as a new set of tools by which to market, advertise, and reach people, rather than applying social media strategically to address fundamental shifts in behavior and values.
Advertisements


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s