| Intentions-based
Business:
An Innovation on the Web
Innovation drives premium market value
and Internet valuation. Innovative,
buyer-driven models will drive premium stock prices and shareholder value.
The New Savvy Buyer
Currently, consumer needs are
fragmented. Consumer
preferences are changing. Today’s
consumer is likely to have nearly perfect information about product
offerings; unrestricted, global access to the provider’s product/service
on a 24-7 basis, and unlimited choice.
This new, nontraditional active buyer has different purchasing
patterns. This individual is
behind the emerging business model that accommodates simplification as an
answer to life’s pressures.
Active buyers are Internet savvy and
know what they want. They
search for it and do not choose from availability.
These buyers are in charge and involved in defining sale terms and
conditions. They expect added
value for their patronage. They
seek personalized solutions based on their unique, behavioral profile. They factor real-time tailoring of price and product into
their decisions. Companies
that focus on providing holistic solutions to this market segment will
reap premium market valuation.
Holistic, Integrated Solutions for the Individual
Premium profitability will go to
enterprises adopting broad intentions rather than mere product dominance
for earnings. Broad
intentions are fundamental life needs or objectives that require a lot of
planning, decision making, and coordination across several dimensions.
They can include things such as financial security, personal and
professional development, housing considerations, and family life issues. Providing a single place that manages an intention becomes a
one-stop shopping solution for life simplification and stress reduction.
Combining the best of portals
customized to consumer need is the goal of innovative, buyer-driven
businesses. For example,
choose the intention of living as a productive “Peek Timer” (an
individual who is 55 to 65 years of age).
This might include activities such as (1) creating and preserving
wealth, (2) maintaining a healthy lifestyle, (3) enjoying leisure time,
and (4) staying in touch with friends and relatives.
A web site offering the best of breed in financial services, health
care, travel agencies, and E-mail/chat room facilities would eliminate
surfing the Web for these products/services individually. Companies
included in this web site subscribe for inclusion to it.
This abolishes the need for advertising revenue.
The web site collects information about consumers as they spend
time on it and begins to customize content to them as unique individuals.
Consumers select from multiple businesses in a given industry and
make decision from that. The
power behind this arrangement is the compounding of information bits about
customers. Profiles will begin to develop about life needs and concerns.
Then subscribing companies can develop products/services based on
such lifestyle segmentation data – both collectively and for specific
individuals.
A Premium for Simplification
Forty-five percent of customers are
willing to pay a premium for simplification in their lives. They represent an untapped market that would welcome
integrated solutions for their lives.
Web sites offering these kinds of answers make their money from
commerce and subscription fees, not advertising.
They are consumer-centric and do not force products on consumers.
Enterprises that subscribe for inclusion to these web sites share
in the overall information provided by customers as well as commerce
proceeds. This profile
information is only shared with subscribing businesses.
Violation of this practice would destroy customer trust and mean
lost sales.
The technology for this type of web
site is in its infancy. Any
enterprise adopting the intentions-based business philosophy can enter the
field. Early movers have the
advantage because they will have locked in the best partners and
customers.
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