How Free Things Are Disrupting Businesses + Radical Innovation + Guide to Free Business Models
Book Review: Free/Chris Anderson
Free is an indispensable introduction to the disruption of “a product for a price,” one of the Industrial Economy’s key constructs. It is rich with examples of many of the pricing innovations and business models with which you’re probably familiar but haven’t thought about in depth. Many of its examples have to do with digital products, which are inherently disruptive because their distribution cost is close to zero, and they can displace legacy analog products.
Free is important and useful for two reasons beyond pricing and business model innovation: it contains a good dollop of behavioral economics with regard to pricing, and it gives numerous examples for thinking beyond the two-party market model that dominated the Industrial Economy, buyer and seller. As Anderson repeatedly shows, in digitally networked markets spawned by the Internet, firms put themselves at significant risk when they don’t adopt a networked ecosystem mindset. For example:
When something becomes free, […]
Experiential Social Media and Business Intimacy shows how social media grounded in customer experience holds the key to trust, relationship and profit. When businesses discover, invite, and build trusted relationships with people in digital public, their actions speak loudly to the silent, ten times larger audience that’s observing the process. In addition, “accidents” are the express lane to developing trust and business intimacy.
The fascinating post in the Read Write Web outlines a new trend, “Relocalization” or the inevitable “Local 2.0” that’s a backlash against malls, industrial “retail” and online “community.” It predicts a resurgence of “face to face” interaction, and people paying a premium for locally produced products and “townish” community.