I wonder how the MTA can learn from other major cities both in the U.S. and abroad on how to better leverage this data. An interesting thing we talked about in my Supply Chain Mgmt class was RFID tags and how in Paris they are included in Metro cards. Essentially it allows patrons to board the trains without even having to scan and it also logs where people are traveling to and from, at what times, etc. I wonder how that kind of technology could be even more beneficial for the MTA and other major urban transportation systems to collect even better data.
Cool post! Do you think Nielsen will become less relevant in the digital space as companies bring more of some of these features in house? While I see Nielsen’s value prop in the scanner tracking space because that’s an offline domain, I wonder if as more companies try to base their competitive advantage on their data (aka data being their #1 asset) if they will move away from Nielsen so as to build platforms that are more applicable for them and so that competitors cannot glean information from them as well.
Thanks for sharing this! I really love House of Cards and we actually had a case in SMICI on the series and the creative minds behind it. I would be interested to hear your perspective on how Netflix uses this model to generate content going forward as well. Is this data analytics model replicable repeatedly? What if the series doesn’t have an analog somewhere else for example. Or if they aren’t betting on superstar talent to start in the series? Just wondering if this is something that can fully be attributed to Netflix’s superior algorithms or if Kevin Spacey + the tried and true series model could be largely responsible.
Hi Grace, I don’t agree with the premise that this is the same as other retailers are doing given the fact Nordstrom has created an entire Innovation Lab to use that content to create end products for consumers. It is one thing to track data and completely another to use that to attempt to disrupt how you serve consumers. Using the principles of lean startup technology companies, they are continually testing new applications and features to increase convenience and personalization for consumers. Not all of the technology is eventually rolled out because heavy testing may show it is not a hit with consumers, but the underlying difference is that they are constantly innovating and pivoting to create new consumer experiences. It may still be in the early processes at this juncture, however they have clearly shown a commitment to both collecting ever more data about consumers and using it in a unique way. For example, with TextStyle you are increasing consumer engagement while collecting additional information above and beyond anything you would have been able to collect with simply a loyalty card.
hey! thanks for the comment. referencing the value creation section above, i think the value to consumers is having 1) curated experiences that leverages past buying data and social media likes and 2) the convenience afforded to customers not having to enter brick and mortar stores to find clothes and accessories. not every technological innovation is going to be a hit, as is seen with the sunglasses app that was never launched, but I do think Nordstrom is at the forefront of trying to test new innovations to see what consumers like and see where the most potential value is created and captured. i would argue that it keeps clients coming back since the data that Nordstrom is able to collect via these avenues makes it so that any future advice / buying suggestions are based upon a heavily data mined list that makes it so it is more likely that that suggestion is in line with the customer’s preferences. this type of knowledge will keep that customer buying at Nordstrom and at the same time allow Nordstrom to keep collecting valuable data.
I do think the indirect nature helped keep things more orderly. In that way the Council served as an intermediary between the public and the Constitution while still maintaining the feeling of transparency due to the fact that the Council itself was made up of regular citizens.
Is there enough of a pipeline of people with difficult to diagnose diseases that make this model sustainable in the long run? Once you are diagnosed with a disease you are no longer an active user so churn would be a concern that I had here.
Thanks for the post! I agree that Google did not necessarily need Waze as they have Google Maps. However, I disagree with the notion that Waze is not important to Google Car and any type of auto technology that Google will develop. While they no doubt have valuable intelligence from Google Maps, Waze provides another level of connectedness by allowing cars to essentially speak to one another to report valuable location data, along with the corresponding “installed base”. One possible extension of this that has been discussed is Android Auto – the Google in-car platform, which is a dashboard operating system and that will include Waze. So while it may not have necessarily needed Waze, I don’t think it was purely defensive as they have actively sought ways to use the technology to enter into new spaces and incorporated into their auto technology. http://mashable.com/2015/04/16/waze-and-android-auto/#vliclANyWkkC
I agree with David’s concerns about how ClassPass users may not become full-time gym users. I also wonder if the value of ClassPass will decrease over time as studios become saturated and users become frustrated with not being able to access the hippest gyms (i.e. the SoulCycles of the world). Or they may not be happy with the times offered. Also, is there a way for them to circumnavigate the problem of disintermediation? If at some point users stop using ClassPass and go directly to studios. Is this a problem they are at all concerned about?
Do you see any potential synergies with Twitter and other social media companies? We have seen acquisitions of Instagram and WhatsApp (by Facebook), Tumblr (by Yahoo), and YouTube (by Google). Twitter itself purchased Vine. Do you see any further consolidation (with Twitter as either the buyer or seller) that would allow Twitter to gain more value from its platform?
Do you think Venmo has enough of a competitive advantage here to maintain relevance even if banks choose to move into this space? If banks make it easier to pay people across platforms (i.e. make payments to customers using competing banks) does Venmo become obsolete? Is it entrenched enough in users for it to still be the go to platform for payments? Or will it become just another app that is just adding to the clutter on one’s phone?
I agree, Merritt. I think B&N was always playing a losing game here. Their expertise is books, definitely not hardware (or the corresponding software component). It is quite hard to convince a consumer to purchase a tablet device from B&N while bypassing an Amazon or Apple produced one. At the same time, I admire their decision to move into the space and try to compete the best way that they could. I wonder if they hadn’t come out with a Nook at all if they would have gone the same way as Borders and while the Nook was ultimately not successful, maybe it saved them from obsolescence.
What’s to stop Facebook or Google from moving to this exact model as well? And if they did move to it, wouldn’t they likely be better at it due to their size and existing advertiser relationships. While Snapchat will continue to have the coveted youth demographic, it seems that a lot of their popularity is predicated on the illusion of privacy that it provides. If that rather tenuous illusion is shattered in some way (which is not that hard to imagine given users can screenshot the posts of others), it may erode much of its fanbase and subsequently, its high valuation.
Walmart has been doing a lot of work to drive people to their website and get them to order from there as opposed to Amazon. Right now Amazon still seems to be winning in that department, but what will be interesting to watch is how things may shift if people become more used to going to Walmart.com. Most Americans shop at Walmart as is and their EDLP pricing strategy is unparalleled. What I am interested to see is if this will negatively effect Amazon since now consumers will have a similar experience on the Walmart website, but then will also have the added flexibility that brick-and-mortar stores provide. At the same time, as Amazon continues to role out same day delivery and faster and faster delivery times, it may not be as big of a competitive threat because whatever you order at Amazon could be at your door within a few hours anyway. It will certainly be interesting to see where this all goes.