small is the new black

20 Apr
2009

Seeing the STREB show a couple of weekends ago, and discussing it several times with my friend Josephine, has got me thinking about the changing business models, and the reason they are changing. Let me explain.. What I forgot to mention in my previous post is that STREB is using an innovative platform of “10 second dance”. In exchange for a $10 donation, you get to co-produce a 10-minute dance, which will be presented at the next show. This does 4 things well, in my opinion:

  1. Creates a stronger community around STREB, giving all co-producers more “skin in the game”, and allowing them to be your ambassadors and telling all of their friends about it
  2. Allows everyone to participate by making the threshold so low ($10), illustrating the power of the “power in numbers” concept.
  3. Appeals to human vanity (oh c’mon, we all have it :) – in my opinion, you need to be somewhat vain to want to put your life out there with social media like we all do, and imagine that others may and will care about it.
  4. Duh! raises money!

Seems that more and more things are getting processed in bite-sized pieces. There is microlending (Kiva.org, Prosper.com, Donorschoose.com) and of course, microblogging (Twitter and other platforms). Seems that small is the new black. Even the Web2.0 conference this year was themed “The Power of Less.”

I think this reach for “less” is happening due to a confluence of several events, caused by the evolution of our society.

Firstly, and more gradually, our society (online and offline) has gotten inundated. Offline store shelves are packed with brands and brand extensions, with each brand extension in several flavors, colors, smells, textures, etc. Most innovations that corporate America parades around, are actually not that innovative, but rather are updates to the same-ole-same-ole.

There is a lot of noise. Consumers are lost and overwhelmed, and manufacturers feel like they are drowning among noise.

Online, a similar thing is happening: with the “Web2.0” bubble, there are more websites than eyeballs (seems like, but please don’t quote me, I don’t have the actual statistics), and more and more are created each day. Unfortunately, most fail to differentiate themselves. A successful solution that can cut through this noise will have to successfully build around the user, wherever the user is (mobile + twitter + web), and not make the user go to its website (this is an entirely different topic that merits another post, so I will stop here).

Secondly, in addition to this overwhelming quality of online and offline “stuff”, the global economy crash is causing us all to rethink how we spend, how we save, what we value and how to course-correct the mistakes we have made so far. I think this process is a vital one, as it will separate the companies, processes and people who add value (education, where addition of skills downright changes lives) from those that don’t (repackaged toxic assets, where no value is created). Again, this is fodder for its own blogpost.

So because of this economy of “more”, followed by a downright economy crash, we seem to be embracing the concept of “less” and basking in simplicity and authenticity. Who knows, perhaps it’s this yearning for simplicity is what is propelling Susan Boyle to such astronomical heights of popularity.

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