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Information Industry

Robotics guru Masahiro Mori’s “uncanny valley” theory posits that as automated activity increasingly mimics human behavior there is a point just before the mimicked behavior is completely accepted where it triggers a strong negative emotional response. As our personal and business online lives become more dependent on an Internet that tries to divine our wants and needs and as we generate more and more information about our actions and personal preferences I think we are all collectively on the verge of reaching this “creepy” valley.

The most newsworthy indicators of this approaching “valley” are the backlashes to ad tracking software and those children’s game apps whose functionality is based on accessing “personal” information. However, an enormous number of other common Internet application functions are triggering a similar response.

For instance, LinkedIn and Facebook’s recommendations for people you might like to connect with always includes people you are close to, but this doesn’t mean that you don’t despise many of them or find the recommendations disturbing (the boss who fired you, the dreaded competitor, the ex-girlfriend, the deceased relative, etc.). Other types of personalization can backfire, too, like Amazon’s recommendations to your friends that you might like something when some of those things might reflect activity you prefer not to make public (e.g., books and videos on far too personal political or sexual topics).

Some of these things can be mitigated via some pretty simple functionality tweaks (i.e., LinkedIn allowing you to flag people with negative attributes or Amazon asking “Do you want to save this transaction to your personal preferences?”), but there is a far bigger question here: Because nobody ever actually reads the “terms of use” agreements to which they blindly agree, wouldn’t be a lot easier to use vendor relationship management (VRM) to make the results based exactly on the way you want your personal or corporate activity data used?

Doc Searls’ latest book, The Intention Economy, was just released last week and he makes a strong case for just this. The implications for going down this road are extremely profound for those of us in the information business. For one thing, company directories could disappear or mutate into permission-based publicly accessible databases. When will this brave new world emerge? The answer, like most things having to do with our networked world, is once again “sooner than you think.”

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posted by Shyamali Ghosh on May 14, 2012

Over the years I have seen (and designed) a few successful new business models. A few years ago I came up with one that is fast becoming my favorite: the idea that companies can generate revenues with a 100% margin by simply rejecting work that they cannot do.

Imagine that your firm produces and sells data on the oil industry. A potential customer finds you and asks for data on the natural gas industry. Instead of saying, “Sorry we don’t have that,” you say “We don’t have that, but our partner does” and you steer this highly qualified prospect to another firm and earn a commission on the sale. It’s affiliate marketing, of a sort, but it has a social dimension in that you are making an overt recommendation and essentially vouching for the other firm.

To make this work you first need to identify the types of qualified prospects ready to spend money that are likely to come your way: folks in the same industry segment but wanting a type of data/service you don’t offer; folks in other industries wanting the type of data/services you offer; etc. Actually, all you need to do is ask you sales and marketing folks who they are turning away and you will immediately have this info at your fingertips.

Once you’ve identified the opportunity you simply have to reach out to the firms you’d like to partner with. Some will think you are nuts, some will raise competitive concerns, and most won’t get it at all. But, if you’re lucky, you’ll pick the right potential partner, they’ll will give it a shot, and everybody will win.

This approach is a variation on the bizdev strategies of some of the smartest folks in the content business who see opportunities where others see competitors (guys like my old boss Patrick Spain). It also shines a spotlight on new product development opportunities. If potential customers are coming your direction, why aren’t you selling them what they want? Are there line extension opportunities right under your nose?

It’s not that hard to do if you buy into the premise… Is your firm ready to do nothing and profit from it?

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posted by Shyamali Ghosh on April 10, 2012