Re: [projectvrm] On values, business models and VRM

[Peter Cranstone < >]

This is a fun one. Lets start with a real world example that we ALL know about - Starbucks.

Lets start with the price of coffee over the last 18 months…

Oh my - that’s an almost 40% drop in coffee over the last 18 months. Now lets look at Starbucks on the Nasdaq over the last 24 months.

Oh My again!

So we now have a company that’s worth close to $60 billion dollars which over the last 2 years has a seen a 67% increase in their value while at the same time the cost of coffee fell by almost 40%

If Starbucks really cared about the customer they’d lower their prices - but then again that’s NOT what Wall Street likes to see. And so far they haven’t lost a customer even with a complete lack of transparency. 

Think about that when you next pull up in line at your local Starbucks - you’re paying through the nose and you’re loving every minute of it.



Peter
_________________________
Peter J. Cranstone
303.809.7342



  

On Jan 9, 2014, at 10:17 AM, Johannes Ernst < "> > wrote:

It seems to me that VRM-style products require vendors who believe in a particular set of values. (I realized that when writing a recent New Year's letter to https://cldstr.com/ customers)

For example, I have a hard time to see how a John D. Rockefeller could ever have provided a true VRM product. His mind was focused on amassing a critical amount of power/wealth, which precluded his customers from having much/any. So no VRM. The same is true for many "successful business men" (mostly!) today.

I recently added two more (to me, unethical) business models to my recent list: http://upon2020.com/blog/2014/01/two-unethical-business-models/

It's clear that neither of them -- #4: robbery, and #5: taking advantage of people -- is compatible with VRM. But the earlier #3 -- regulatory capture -- isn't either in my view, and arguably, #2 -- monopolizing a critical resource -- isn't either.

Perhaps it would help our VRM discussion to articulate what the values are that a company needs to believe in so they can truly deliver a VRM product. (Or conversely, if a company does not believe in them, we can ignore them, because whatever they produce, it can't be true to the spirit of VRM.)

Let me give it a shot:

1. the customer's needs come first. Shareholder value, market share etc. etc. are less important, and will be compromised in favor of value for the customer when needed.

2. business model transparency. No "deals behind the customer's back". (Perhaps it's even broader transparency about everything)

3. customer can leave any time with as little loss / overhead / hassle as possible.

4. no touching the customer's data, unless it's specific actions performed for the benefit of the customer and explicitly authorized by the customer.

Thoughts?

Cheers,

Johannes.

Johannes Ernst
Cloudstore Technologies Corp.