The User Experience Economy

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The User Experience Economy
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The User Experience Economy

• Notes taken from
• Re-inventing invention new tendencies in
  capitalist commodification
• Nigel Thrift in Economy and Society Volume 35
  Number 2 May 2006 279_/306

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The Future?

• The Core of NeuroMarketing Attention, Emotional
  Engagement and Memory Retention
• Product/Ad effectiveness in the typical
  high-clutter environment relies on winning
  attention, engaging the emotions, and being
  remembered.  How do you determine and leverage
  your best assets?

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In the long procession of history, capitalism is
the late-comer. It arrives when everything is
ready (Historian Fernand Braudel 1977 75 cited
in Thrift)

• The Leech

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The Central Role of Design

• The functioning of the economy facilitates
  the intensification of collaboration of supply
  and demand in a way that enables consumers to
  participate actively in the qualification of
  products. Design, as an activity that crosses
  through the entire organization, becomes central
  the firm organizes itself to make the dynamic
  process of qualification and requalification of
  products possible and manageable.
• (Callon et al . 2002)

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Thrifts three tendencies

• Plumbing the non-cognitive realm of consumption
  (affect)
• The experience economy
  (Pine and Gilmore 1999 cited in Thrift)
• The active social engineering of the space of
  innovation

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1. Plumbing the non-cognitive

• Corporate obsession with
• Creativity
• Fostering of tacit knowledge and aptitudes
  through devices like the community

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1. Plumbing the non-cognitive

• Exploiting the non-cognitive realm and fast
  thinking
• Normans notion of the visceral level in rapid
  judgments
• The extraordinarily perceptive and deceptive
  power of the sub-conscious mind
  
• See Malcolm Gladwells business bestseller Blink
  (2005)

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2. The experience economy

• A desire to rework consumption and draw consumers
  more fully into the production process
• Leeching consumer knowledge of commodities and
  adding it back into the system as added value

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2. The experience economy

• Models of co-creation customer-made which are
  changing corporate perceptions of what
  constitutes
• production
• consumption
• commodity
• the market
• innovation

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3. Social engineering of the space of innovation

• Learning how to combine information technology
  with group formation in ways that really will
  deliver the goods

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• New audiences can be worked on their enthusiasm
  can be played to, for example through the medium
  of websites that act as honey traps. So, for
  example, Amazon.com now sell more books from the
  backlist outside their top 130,000 bestsellers
  than they do from within them, in part through
  all manner of devices that are intended to
  capture and foster enthusiasms and automate word
  of mouth
• Nigel Thrift Re-inventing invention p. 287

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The Role of Design

• Taken together, these three developments have
  foregrounded the absolute importance of design'
  (Thrift)

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The Role of Design

• design is becoming ever more central to the
  whole production/consumption process
• (McCullough 2004 cited in Thrift)

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The Role of Design

• Design is how we can be dominated by
  instrumental rationality and love it, too
  
• (Liu 2004 236 cited in Thrift)

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Modes of Design

• Sensory Design
• Interaction Design
• User Centred Design
• Collective Design

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1. Sensory Design

• Corporate strategy
• Today the value proposition is more intimate and
  intuitive (Hill 2003 20 cited in Thrift).
• Appeal to the Senses
• Increases the commoditys stickiness

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1. Sensory Design

• Corporate strategy
• Commodities need to resonate in many sensory
  registers at once
• Make them recognizable in the commodity cacophony
  of modern capitalism

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1. Sensory design - adds more feelingadds more
value

• The Affective Grip
• Stimulate the emotions connected with things
• Appeal to senses formerly neglected
• aesthetics refers to all senses
• Produce more commitment sell more

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Sensory design - adds more feelingadds more value

• Examples
• Car doors are designed to give a satisfyingly
  solid clunk as they shut
• New cars are given distinct smells
• Breakfast cereals are designed to give a distinct
  crunch (Kelloggs patent)
• Travel experiences are given distinctive aromas
  (Singapore Airlines)

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The generation of passions
The added value of emotions and affects
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2. Interaction Design

• the success of a design is arrived at socially
• the design of commodities that behave,
  communicate or inform
• processes of variation and difference that can
  allow for the unforeseen usage
• offer clues to further incarnations

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2. Interaction Design

• Thrift notes the flowering of so-called open or
  user-centered innovation
• Consumers vital force in research and
  experimentation

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3. User-Centered Design

• User-centered innovation processes offer great
  advantages over the manufacturer-centric
  development systems that have been the mainstay
  of commerce over hundreds of years

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3. User-Centered Design

• Users that innovate develop exactly what they
  want, rather than rely on manufacturers to act as
  their (very often imperfect) agents

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4. Collective Design

• Invention Spills outside the organizational
  boundary of the corporation
• Focus groups
• Ethnography of various kinds
• Style boards
• Means-end chains
• Clinics
• Pre-launch event
• Fan websites
• Co-creation as a continual process of tuning
  arrived at by distributed aspiration.

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Not all the smart people work for you
(Chesbrough 2003 cited in Thrift)
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• People enjoy design processes
• Seek incentives like prizes or awards

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Customer-Made
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Lead Users Those consumers that face the
needs that will be general in the marketplace,
but face them months or years ahead of the rest
of the marketplace Electronics Corporation
Philips See http//livesimplicity.net/See
Trendwatching.com, 2005 Customer-madehttp//www.
trendwatching.com/trends/CUSTOMER-MADE.htm
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Case Study

• Philips Co-creation

Taken from Philips The creative
customer Increasing consumer involvement in
product-innovation processes at Philips By
Maaike Spoor, Aad Streng and Paul Louis Iske In
Inside Knowledge Magazine 18 Apr 2005 in Volume 8
Issue 7
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Philips The Creative Customer

• Co-creation
• Collaboration with online consumer groups
• Tapping into collective wisdom
• Mobilising customer creativity
• Enhancing the speed and effectiveness of product
  development

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Co-Creation Defined

• Heterogeneous interaction with active, empowered
  and knowledgeable individuals, rather than by the
  organised control of passive consumers.

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3 Roles of the Consumer

• 1. Consumer as Resource
• Tracking online user communities, in which users
  exchange product experience

pronto.philips.com
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3 Roles of the Consumer

• 2. Consumers act as co-creator
• Become part of the companys activities
• Experiencing virtual representations and rapid
  prototyping

pronto.philips.com
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3 Roles of the Consumer

• 3. Consumers act as users
• Write product reviews
• Discuss products in forums
• Online message boards
• Enabling user-to-user support, where users can
  engage in an interactive learning process

pronto.philips.com
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Co-creation and Brand

• Co-creation added value for Philips
• Co-creation expresses the element of sense in
  the way that Philips takes care of, and listens
  to, its consumers

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Co-creation and Brand

• The brand is
• designed around you
• easy to experience
• advanced

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Who joins a consumer community?
Adobe as an example

• Characteristics
• Highly involved with the product
• Show brand affinity
• Psycho-sociological needs
• expression of needs
• creativity
• product knowledge
• hedonic

The Montreal Adobe User Group on Second Life
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Not just about product

• The co-creation of a lamp-bulb?
• More to do with user experience of atmosphere,
  ambience and mood
• Affect?

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Delivering the Goods
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Outcomes of the Economy of User Invention
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• Invention and mere use are superseded by pleasure
  in the activity itself

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Outcomes of the Economy of User Invention

• Consumer communities will evolve beyond a
  companys control
• e.g user groups development

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• Co-creating provides the firm with a new terrain
  of profit
• Policy of open reveal

Google's Open Source Android OS Will Free the
Wireless Web See Tonys book review of FLOSS Art
- Turning Software Inside Out
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Hackability and Customization
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Open Source
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Outcomes of the Economy of User Invention

• User community feedback and intervention makes
  commodity existence unpredictable
• Not a finished end product the commodities
  survive their performance (Virno 2004
  cited in Thrift).

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Outcomes of the Economy of User Invention

• Value is embedded in an experience environment
  that the company co-develops with consumers
  (Prahalad and Ramaswamy 2004 121 cited in
  Thrift).

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Outcomes of the Economy of User Invention

• Greater interactivity means that the market
  pervades the entire system
• (Prahalad and Ramaswamy 2004 125 cited in
  Thrift)

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The Future
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Neuromarketing

• http//www.neurofocus.com/
• The Core of NeuroMarketing Attention, Emotional
  Engagement and Memory Retention
• Product/Ad effectiveness in the typical
  high-clutter environment relies on winning
  attention, engaging the emotions, and being
  remembered.  How do you determine and leverage
  your best assets?
• The Science of Shopping
• Brand Essence Igniting Brand Passion   (Aug 8th,
  2008)Every brand has a core. Every brand
  marketer believes they know what it is. Consumers
  may have a different idea, though.
• Neuromarketing  Deep Insights   (Aug 8th,
  2008)Dr. A.K. Pradeep explains how EEG brainwave
  analysis measuring brain activity 2000 times a
  second gives deep insight into Ad
  Effectiveness.  Combined with traditional
  biometric measures NeuroFocus research shows
  precisely how the audience or consumer is
  responding.
• See YouTube Channel
• http//www.youtube.com/user/neurofocus