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An Experience Economy

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.