Joseph Pine’s talk at TED really has me thinking.
This is a table outlining the difference between the types of economic output, using the example of coffee.
|Economic Output||Business Imperative||Consumer Sensitivity||Coffee Example|
|Experience||Render||Authenticity||$5.00 per cup (*Starbucks*)|
|Service||Improve||Quality||$1.00 per cup (*coffee shop*)|
|Goods||Control||Costs||$0.10 per cup (*supermarket*)|
|Commodity||Supply||Availability||$0.02 per cup (*coffee beans*)|
The drive to software-as-a-service makes the software industry jump to service. It takes Apple to move it to an experience. Disney is another example of experience based economics.
I like this framework for thinking about what business I am working in. The trick will be to figure out how move up the ladder to render an authentic experience.
His book is now on my to-read list.