Want to Transform Your Business? The Power of Pull

As a consultant a lot of my work since the late nineties has been looking at how by using semantic technologies, data navigation techniques and internet scale identity product strategy can be subtely tweaked to better fit the rapidly evolving needs of consumers first, business second.

Why? Well for anyonewho has read The Cluetrain Manifesto it’s obvious, for everyone else; quite simply when a business actually places the needs, wants and desires of their customers above those of the business (or it’s share holders) then they thrive.

Since being back in London I’ve been lucky enough to meet many interesting people sharing similar ideologies.  From the wonderfully enthusiastic Jonathan MacDonald and his “Every Single One of Us” movement to the truly inspiring millitant in Adriana Lukas and “her” Mine project.   All these projects, startups and thinking pretty well follow up on where Cluetrain left off, each takes a slightly different direction or stance.

Thus far though, for all their efforts I have yet to see any single project offer up good solid advise on why business should adopt the thinking of placing the consumer in charge let alone pragmatic guidance on practical use cases for identity, semantics and generally doing things in this way.

I can’t even remember how I stumbled upon “Pull” now earlier in the week.   Twitter most likely but I could see instantly that the author (David Seigel) and his team at The Power of Pull had obviously been paying attention to all the work put in over the years by a great many technologists, marketeers, anthropologists et al.

I’m not even going to try to describe the book, rather I will paste verbatim their own description below;  BUT for those that have heard me talk on identity, privacy, trust, semantics, data – in fact ANYTHING over the last ten years then you simply must go and buy this book, read, remember, acknowledge and move your business forward.

Anyway here is David’s own blurb…

How the pull paradigm and the semantic web combine to help businesses face the challenges of the future.

The Problem

On the Web today, we see millions of web sites, each of which presents web pages and documents. These are simply electronic versions of the old paper-based ways of doing things: writing checks, filing taxes, looking at menus, catalog pages, magazines, etc. When you search for something on Google, you get a list of web sites that may or may not have what you’re looking for, based on keywords found in the text. You have to look at each one and decide whether it answers your question. Google doesn’t know where the information or answers are; it just knows which pages have which keywords and who links to them.

Our information infrastructure isn’t scaling up very well at all. The average person now sees over 1,000,000 words and consumes 34 gigabytes of information every day. Mike Bergman estimates white-collar workers spend 25% of their time looking for the documents and information they need to do their work. One billion people are online now, and 4 billion have mobile phones. Exhaustion of IPv4 addresses (limit is 4 billion) is predicted for sometime in 2011. By 2030, there will be a minimum of 50 billion devices connected via internet and phone networks. Our information infrastructure is built to haul electronic versions of 19^th century documents for humans to read, and it’s keeping us from using information effectively.

The solution to our information problem is the semantic web and the pull paradigm.

The Semantic Web

The semantic web is nothing less than an overhaul of our information infrastructure, according to these basic principles:

• Electronic information will become unambiguous. Another word for semantic is unambiguous. In the Semantic Web, we declare what we mean in precise, standardized terms. Data that is semantic means exactly the same thing to any system or person who uses it.
• Data will become findable. Already we are seeing the emergence of the Open Web, where information lives online and can be found easily. There will be central repositories and central hubs that link information together. This is called “linked data in the cloud” and is the next trans-formation after services and software go online (see linkeddata.org). Humans now use 1% of all electricity to power data centers. The percentage will quadruple in ten years.
• Data will be reusable. We’ll keep all our data online in semantic formats and use it over and over by pointing to it. Data will become like Lego building blocks of information that can be combined and recombined to suit each particular task.
• Data will be interoperable. We won’t have to translate from one system to another. As an example, Edgar.gov will soon become a cloud-based hub for XBRL data from companies reporting results. Since everyone uses the same standards, all the software will be able to tie into the original sources of data and use it in the way that’s most meaningful to the subscriber.
• Devices will be ubiquitous. There won’t be any more computers as we know them. Apple OS and Windows as well as Google Android, iPhone, Blackberry, TVs, and book readers will all be replaced by Net-based screens of all sizes that simply see the web and do everything online. The market for netbooks is currently growing at 40% per quarter vs notebooks’ 20%. Prices will drop through the floor. Screens will be on your wrist, on your car dashboard, or on your wall, and they will connect to the net, where everything will take place.
• Systems will be flexible. We’ll start using flexible knowledge models and declarative systems that use data, rather than encoded processes, to drive business systems. Today’s procedure-driven software has already broken (most enterprises spend 80% of their IT budgets on maintenance). Tomorrow’s flexible systems will be adaptive – they will respond in real-time to business events and change themselves daily as the business environment changes.
• Real time. The semantic web lets us close the gap between what happens in the real world and when we know it. When the processes and products themselves generate the data, we will go to a real-time economy that will be much more efficient than our time-lagged way of doing things today.

The Pull Paradigm

We are making the transition from pushing information to pulling it, and that will change everything. Originally, the TV networks sent out signals for shows according to a schedule that benefitted their advertisers. Then, VCRs let consumers watch when they wanted and skip the ads. Now on-demand services let consumers watch a handful of TV shows whenever they like. The future is online, where you can find and watch any video ever recorded any time you like on any device.

• This will happen in all industries. People will pull information to them whenever, wherever, however they like. People will use online data lockers to store and guard their information, and that will replace today’s computers. It will power everything. We’ll store all our preferences there, so rather than managing music we’ll manage our preferences. This will allow us to (finally) use software agents to look for things on our behalf.
• Many processes will invert, in favor of the customer. No longer will we “push” things through the supply chain. Instead, customers will “pull” items through. Consumers will pull services on demand. Marketing will change from outbound messaging to responding to queries. We won’t search for things; we’ll say what we are looking for and let things find us instead. Software will cost 10% of what it costs today and will be much cheaper to maintain. Everyone will be both a producer and consumer of information that becomes part of the ecosystem.
• Account portability will be a leading indicator. When people can port their accounts from one vendor to another, the power in the relationship will flip. An early project is called Vendor Relationship Management, which will get the whole process rolling, in the same way that the video recorder did for television. Imagine if you could port your entire checking account or brokerage account to another bank and have the new bank understand everything – that’s the semantic web. It promises to cut the cost of health care by 25%, and that’s just the beginning.
• The result is the performance economy, where companies can’t afford to be on the other side of the table from customers. In the performance economy, you gain only when your customers do. Many industries will be flattened. It’s just getting started, but this model will come to dominate in the 21^st century.

See? Like I said – go buy this book.

Update: There is a podcast interview with David Seigel over on the excellen IT Conversations website with the good Mr Windley and for those wanting a quick 62 minute intro it’s a great place to start.