What is the Relationship Economy? How will it affect our business and personal lives?

1. The Relationship EconomySlideShareZipcastFebruary 21, 2011 Jerry Michalski 1

2. Conclusion: 2 We’re in an enormous period of rebalancing.

3. The Relationship Economy… 3 …is an oxymoron We don’t really buy and sell true relationships, do we?

4. The Relationship Economy… 4 …is a lens

5. Addressing questions such as: What’s the future of [ ] industry? How might we rethink education? What makes a company trustworthy? Why don’t people vote? How can we govern ourselves? Will we be wealthier or poorer in 2021? 5

6. 6 “Point of view is worth 80 IQ points.” – Alan Kay

7. Relationships that matter 7 Stakeholders Customers Suppliers Company Management Regulators Investors Employees Competitors Communities The Media

8. A great question: 8 How can organizations build authentic relationships?

9. Authentic relationships… 9 …should be between peers …aren’t primarily economical …involve vulnerability Hold those thoughts.

10. Relationships that matter 10 Producers Consumers

12. We Can’t Trust Them! They don’t know what they want It will kill our business model If they find out about… They’re being manipulated anyway They’re not capable Too much choice paralyzes We know better 12

13. Advertising is war 13

14. Alternatives to “Consumer” 14 Person User Citizen Household Individual Member Co-producer Guest Family Client Shareholder Player Customer Fan Stockholder Viewer Seller Participant Stakeholder Buyer Constituent

15. Relationships that matter 15 Closed Open

16. 16 Why creators create Make $$ Change the world Entertain self/friends Exorcise demons

17. 17 The old way Lock up the IP Start a company Join a big company Possible outcomes: Product fails Company fails Product succeeds, but limited Product never sees light of day

18. 18 The creator’s dilemma Two conflicting needs Make a living Help many people enjoy the creation Existing business models create the conflict

19. 19 Recent defensive innovations Prolong ownership of © (CTEA) Cripple threatening technology CPRM, EMMS, HDCP, TCPA, DTCP = “Trusted” Computing Architecture Own all ideas (gene & process patents) Bend nature (Monsanto Terminator gene) Criminalize circumvention (DMCA) Limit recourse (WTO, WIPO)

20. 20 Leaf-cutter ants Symbiosis vs. Ownership

21. A great question: 21 How can organizations thrive around the Commons?

22. Relationships that matter 22 Commerce The Commons

23. Conventional wisdom 23 The Tragedy of the Commons Companies have to sequester and own their chunk of the Commons

24. Commons-based peer prod’n 24

25. 25 OpenStreetMap

26. 26 PatientsLikeMe

27. 27 Unleashes Quantum (Personal) Energy

28. Now people can… Band together Share bits (©) Improve them over time 28

29. Network effects 29 Social Capital Lead Users Hive Mind Social Search The Long Tail Sharing Nicely Social Media Collective Intelligence Media Sharing The Commons Gift Economy Wisdom of Crowds Peer Production Word of Mouth Smart Mobs Virtuous Circles Metcalfe’s Law User-Generated Content Social Networking Services

30. Relationships that matter 30 Government governance

31. Relationships that matter 31 Scarcity Abundance

32. On scarcity 32 Scarcity = Value Economics is the science of allocating scarce resources Attention is Scarce Time is Scarce

33. On abundance 33 Data!! Ideas Relationships Communications Other Resources Love

34. Relationships that matter 34 Money Wealth Value

35. 35

36. Here’s one sector 36

37. 37

38. 38

39. A great question: 39 How might we shift what we value?

40. Relationships that matter 40 Greed Generosity

41. Raj Patel 41 “The opposite of consumption isn’t thrift. It’s generosity.”

42. Relationships that matter 42 Science Spirituality

43. Relationships that matter 43 Yang Yin

44. Coming back into relationship 44 Logical Rational Analytic Scientific Hierarchical Power Over Linear Left-Brained Algorithmic Intuitive Emotional Spiritual Feminine Emergent Ecological Decentralized Unmeasurable Joyful

45. The six forces 45 Of the Relationship Economy Free Social Open Abundant Emergent Thrivable

46. 46 Breaching Barriers

47. 47 Wiring the Global Brain

48. Conclusion: 48 We’re in an enormous period of rebalancing.

49. 49 Model T Era

50. 50 “What gets us into trouble is not what we don’t know, it’s what we know for sure that just ain’t so.” – Mark Twain

51. Jerry Michalski jerry@sociate.comTheREXpedition.com @jerrymichalski+1 (415) 465-0256 Questions? 51 Under Creative Commons by-nc-sa license; see last page

52. Except where noted, the contents of this presentation are licensed to the public under the Creative Commons Attribution-Non-Commercial-Share Alike 3.0 United States license. The terms are available here. Some rights reserved 52 Under Creative Commons by-nc-sa license; see last page