An Experience Economy
Monday, March 30th, 2009
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.
April 7th, 2009 at 11:43 pm
This is interesting Geoff, I’ll be reading this book now :)
I see a parallel between this line of thinking to how the web is evolving. The next generation of apps i’m seeing on the web pushes user experience from services -> personal experience.