How big is market for 4th Party Services
Market for 4th Party Services
Alan and Keith
Definition: 4th party: if you're thinking from 1st party point of view, basis is organization. For individual, same question: How to make and implement decisions better. (MAIDB)
- Better decisions
- Process of decisions made better
- Implement my decision to get better outcome.
- Better implementation process
Costs of making decisions is huge. In UK 16K mortgages on market; at 6 min each,
Average consumer is faced with 10B products and services. What happens is that most people make shortcuts (brands, confusion marketing, etc.)
Biggest role of 4th party services is about process of making decisions. If 4th Party svcs do this, how to measure? Return on investment: assets, can do work, emotions, use of time, information/knowledge/expertise, spending money and attention. Trying to optimize a series of different metrics: OPTIMAL metrics: Operations, Passions, Time, Info, Money, Attention, Lifetime.
Decision making process: Introspection : circumstances : research : advice (graph w arrows pointing to each other)
Seller side: sales channel from indiv level: acorn shape starting w need for info/research, narrowing down options to top of acorn buy point.
Going to market: first acorn w decision making (scoping what I want to achieve) + second acorn (making decision & how to achieve it) + third acorn (implementing)...
Info generated by this process: scoping, choosing, acting, managing relationship (amazing chart)
UK Market for Personally Volunteered Info: elicited and gathered via in-house operations, purchased from 3rd party brokers/PI mgmt services
The market for PVI: Projections (graph)
What's impact? Communications and sales : impacts MAIDB processes directly. May need to reconfigure products & services OPTIMAL. Bill: This is an enriched marketplace. Dean: It's a mutual benefit to all parties in the transaction, not a power issue. Everyone has input. William: a lean manufacturing process.
What is its effects on economy as a whole? Going historical: making and matching connections. 1900: 75% costs into making stuff, 25% into matching and connecting. Today: more 50:50%. Where's it going? Back to 25% in matching and connecting, and Bo: 75% gets more efficient, more effective, higher GDP, etc. Alan: having right product at right time for right people. Keith: not talking about simple processes, and easy to take specific manufacturing models but markets mostly service based. Changes driven by market-maker kinds of orgs. When looking at one manufacturer, may not see the changes but on whole econ level, will be profound.
Alan: massive eco-system for multi-acorn chart, every point has 4th party services.
Stuart: re feedback, we're better off giving it broadly so others learn too. how to open up dialog so info isn't just 1:1 but is 1:many? Alan: few of these processes are 1:many
Dean: asking Don how to keep 2nd/3rd party services from co-opting? Don: service providers will mitigate, also diff processes.
William: how is this going to be paid for? Bo: I would pay for it. If you're going to save me a bunch of time William: could come out of value of VPI, but what's relationship? (looking at graph: market for PVI: increasing value:
- (what I don't know)
- other queries & questions
- Who I am (verification, authentication, et al)
- (what I want)
- Expressions of demand
- What I know
Stuart: what's the mode of communications? How do I get from today to this new world? Alan: development of highly specialized, category-focused services. BT launched a car buying spec system (not launched). Discovered lots of people didn't know what they wanted. Process became a service to the customer, then customer's response was to narrow down choices.
Alan: restating mission: how big is this market, Phil W: we already have transaction places, on the buyer's side we'll have help facilitating indiv side. Bo: cars.com Phil: is more a market maker side
If Funding, where are priorities: expressions of interest, future plans and specs
William: first fund Social enterprise w admin details: creates environment and context for the rest to flow. Keith: hunch.com Alan & Keith: best decision trees win
Keith: when we start having PDStores and Logging, people will find new uses for this info. unintended consequences.
Need to identify all modules that go into making up these services. Technology & process can be incorporated into 4th P services. Would be interesting to make a list of all elements in 4th P modules.
Example: average grocery stores have 40,000 SKUs. Average shopper buys 400 items, results in 99% waste. Much of the 400 items are core, apply 80:20 rule, results in about 5000 items in store, w addl distribution mechanisms (store size, transport, etc.) Justin: what about enabling process on local level? Alan: exactly. Don: future proofing, stocking components will change by knowing; reduces friction throughout process
Keith: very disruptive, might find new entrants or market makers to help stores transition Don: added efficiencies Stuart: if highly complex, etc. What if I'm an iPhone app developer, does mobile processing, ...
(hoping to add slides to this)