Tag: trust

  • The abstraction of trust

    Usually, I use evolution. But that indicates a forward movement, and in this case, I am not so sure now! I had a thought on how the notion of trust in transactions has changed, and felt that I should document it, even if it’s in a super simplistic way!

    1. It began with a producer/consumer – consumer/producer relationship in the form of barter.

    2. A central currency suddenly opened up trade and now it could just be producer – consumer

    3. That also meant that a middleman could enter the system, hence a producer – seller – consumer (more…)

  • Bitter/sweet

    My “nostalgia analysis” post had an excellent comment – “I have noticed that nostalgia happens for certain things when you are satisfied with how things turned out. And then there is bitterness…” I am not really convinced by the first sentence, and think it’s a little more nuanced. Broadly yes, when everything turns out well, nostalgia is ‘easy’. But as I mentioned in the post, I think the mind also reconstructs and reconciles what it can. In a way, taking memories into dreams territory. A vision of near-perfectness. Probably a device used by evolution to help the organism cope, survive and thrive. Ok, that sounded cold. Moving on. It is the second sentence that really caught my attention.

    “..And then there is bitterness..” Bitterness. I can remember many brushes with that phenomenon. It has made me miss several years with people, though thankfully, sanity prevailed in most cases. I reached out, and time healed. It has happened in the recent past as well. The only difference these days is that I am not blind to it, and have tried to understand it, so I can try to minimise the damage it causes. But maybe I was missing something. (more…)

  • Culture Architecture

    Despite several posts on ‘culture‘, of the four Ps I’d mentioned in the Agile @ Scale post, ‘People’ is a topic that has gotten the least attention here in the recent past. As the change imperative forces organisations to be more responsive to rapidly changing external dynamics, the structures, processes and methods it had adopted for its internal stakeholders will most likely have to change as well. Jobs in earlier era were well defined constructs, but this era requires employees to work far beyond their job description in order to thrive. (“Why We Need to Change the Software in our Organisations“) It is probably not a coincidence that the four organisations that are defining the larger contours of business and technology are also the most favoured employers.

    The task is not easy. On one hand, there is a workforce that is increasingly getting overwhelmed by communication technologies that are dictating an always-on culture. (“Why you hate work.”) On the other hand, there is a new generation entering the workforce that has expectations of a culture tuned to their lifestyle and ways of functioning. They rapidly disengage if they feel this is no happening. In both cases, the end result is a loss in productivity. This is only one part of the story. There are several factors that define culture, and in an organisation, there are several factors that resist change as well.  How does an organisation adapt to these dynamics? A few thoughts, some strategic, some tactical. (more…)

  • The overhaul of currency

    Back in 2012, in my first post on institutional realignment, I’d written this – “…my biggest hope is that the current currency of our lives – money – will have a better successor, one that will be better connected with our unique identities, and weave in contexts better.” In the two years since, this movement has not only begun, but is also figuring out its own dynamics. I had expected, or wanted, a disruption of money, but it will most likely be a transition. At this stage, I see at least three broad areas to frame this movement -the democratisation of finance, alternate currencies and marketplaces for value exchange.

    Democratisation of finance: This is probably where it began, because the internet has a reputation for removing intermediaries who do not add value in this case, financial institutions. From projects in Kickstarter, Indiegogo, and GoFundMe to social investments like RangDe and Milaap, there are now many ways to mobilise funds for me and you from people like me and you, according to personal passions, interests and belief systems. I’ll add more to this in the ‘marketplace’ section.

    Alternate currencies: Arguably, money as an institution has built a network involving processes, dependencies and establishments keeping in mind the dynamics of an earlier era. A civilisation connected by the www may find these tedious and irrelevant, and thus it’s only natural that it builds its own institutions. Bitcoin (a good introductory guide) is the one that made this phenomenon (relatively) mainstream, to the point that it even has ATMs. Bitcoin may or may not survive, it is probably the Napster in its domain, it has changed the game irretrievably. While on the subject, do read this fantastic tongue-in-cheek take on how it’d be if the roles were reversed – a cash based mechanism replacing digital currency. Meanwhile, there are other currencies similar to Bitcoin, and then there are completely different thoughts – for example, Pay With a Tweet. Which leads us to the various payment mechanisms that are being built.

    Marketplaces & Value Exchange: While the other two are the dynamics, this is where the mechanics play a part as well. In the ‘democratisation’ section, I had referred to several platforms that aid both discovery and action. There are many more stories in this line – from AgreeIt, an app that allows crowdfunding from friends on Facebook to crowdsourcing for emotional advice, ideas and so on to selling one’s reservation at a restaurant/spot in a line through Shout to  a ‘new media company’ Ideapod that wants to “amplify the ideas that shape our world, create genuine and enduring dialogue around ideas and spread ideas that matter through new and traditional media channels.” to ordering food from neighbours, (Eatro in London and Imli – a startup I mentor at the Microsoft Accelerator- closer to home) there are various models of value exchange that are shaping themselves. In fact, the entire ‘social commerce via collaborative consumption‘ route is based on these marketplaces. (a few good perspectives and stats on its drivers here)

    But, irrespective of the currency, every transaction requires (another) key element – trust. The social web is also building its own mechanics for this – from relatively generic clout mechanisms (Klout, Kred and the likes) to more context specific ones like LinkedIn or GitHub or even Wiki and review mechanisms. (from Amazon to TripAdvisor to Foursquare to GoodReads to Zomato) We earn trust through our knowledge and actions in these mechanisms. We earn social currency. That brings me to the final portion – how does all of this impact brands and what would be their role?

    Brands & the trust economy: Across the ages, corporations have been built on competitive advantages pertinent to the economies they operated in. I found a fantastic illustration in this context here

    Economies and competitive advantages

    I think relationships are indeed going to be the major competitive advantage in the future, and if so, the currency that would play a bigger role than money would be trust. As in many other developments prior to this, there are opportunities here for brands to weave themselves into the consumer’s narratives and go beyond transactional relationships, and to earn social currency. Many of them are already on it, finding ways to earn consumer trust and helping him/her develop and change perspectives about various currencies and relationships between them. Since we’re talking of finance, let’s use an example in that domain. Fidor bank helps its consumers discover crowd sourcing options, staying true a bank’s generic commitment of excellent wealth management. Yes, it’s still money, but it understands that it can be deployed beyond traditional options. In the process, it also helps the consumer to belong to a community.

    Brands actually have an option to join in wherever there is consumer spending. Nike+, as usual, did something back in 2012 – they allowed runners to trade in (running) mileage for Nike goods (I had shared the video in the institutional realignment post too) While this ties in beautifully with Nike’s business purpose, maybe some brands would have to lean a little more towards the consumer side and get into relatively unrelated narratives, and a relationship, before connecting it back to the business purpose. For example, airBaltic’s loyalty program Baltic Miles rewards frequent fliers who jog enough to burn off the same number of calories as miles they’ve flown. One of the aspects of agile marketing would be to enable identification of opportunities early. For example, imagine Coke getting into the act in Beijing’s first reverse vending machines that pay subway credits in exchange for returned containers.

    In what might seem like a ‘changing of goalposts’, just as brands are beginning to vaguely realise that their currencies of engagement with consumers need to change, the consumer’s relationship with the common currency of transaction – money – is also changing. The two are very related, and brands need to tackle both to have meaning and relevance in a consumer’s life, because if (as Godin says) “money is a story“, we’re probably nearing a plot twist.

    until next time, the end of money’s monopoly

    P.S. For another detailed look at the subject, you’d want to read Gauravonomics’ post on ‘The Future of Money‘.

  • Influence & Context

    Last week, I read two stories on influencers on sites that influence me. 😀 Since that’s a topic that has been seen here before (1,2,3) and it’s been a while since I’ve written about it, a couple of cents.

    YourStory’s post, I cheered, despite failing on their influencer scale, (of 5000 twitter followers) because it asked a very pertinent question – “Are brands being  held at ransom by Social Media Influencers?” I completely agree with Mekin’s tweet (cited there) on how it takes the twitterati only a few minutes to demolish years of hard work. Anyone who handles a brand account would relate to that. Expecting ‘influencers’ to mature and watch what they say is like expecting, say, a response from the nation’s leader. The other way to handle it is to be really good at what you do as a brand, be sure of yourself, be transparent, so that you can back up your tweets (no, not that kind of backup) with facts. (more)

    LHI’s post was about brands leveraging social influencers. Prasant (of LHI, but didn’t write this post) had commented in the YourStory post about contextual influence, and I quite agree with his views. In fact, my stance remains the same as when I wrote this. To sum it up, (in general, there are of course exceptions including whole domains) brands tend to treat influencers just as they treat traditional media. The more reach, the better, who cares about context? No offense meant, but I am not really influenced by the gentleman in the LHI story. Mercedes needn’t care about that because I’m not really their audience. But the entire episode makes a very good story, so if that was the intent, and not necessarily the person’s influence, opportunity well spotted, and a PR job well done!

    But if brands do treat influencers as media, how long will this party last, especially when people are already trying to correct their filter failure? (noise in the stream) Mass media’s  indisputable role in creating perception have been blunted in the web and social eras. Arguable, but I think, in a while, we’ll see a kind of flip. Folks would start figuring out their go-to people, when making consumption decisions. I already do that – in fact, I realised that with a few exceptions, everyone on this list is a go-to person for me! Not all of them have 5k followers, but in their domains, they’re #likeaboss. What has social contributed here – 90% of them were unknown to me before blogging/twitter, but if I am asked for a recommendation in their domains, I don’t have to think twice. I trust them, and this has been built over various interactions across time.

    In essence, using influencers would boil down to the intent of brands – mass reach or targeted reach (in this context) – for each activity. There are tons of ways to get reach on social media, in many ways it has already begun to resemble its media predecessors, but trusted sources remains a precious commodity. If brands earn and retain the trust of influencers in their domain – and they could only do that if they are really good at what they do – think of how it could help them when it comes to responding to those ransom calls.

    until next time, an affluence of followers 🙂