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Richard Reisman
NYC
Author of FairPay | Pioneer of Digital Services | Inventor, Innovator & Futurist
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Very interesting questions, John. I suggest my work addresses some parallel issues in a way that might be suggestive, and may bear on accelerating performance improvement and learning on the front-line. Drucker said that "The greatest danger in times of turbulence is not the turbulence, it is to act with yesterday's logic." I suggest that much of current business practice (and so our processes) is based on obsolete logic, especially in B2C digital commerce. I propose a new logic, FairPay, that is driven to create value-based commercial relationships in a way that is cooperative, dynamic, and adaptive. The logic works as a repeated game that builds cooperation to achieve "value discrimination." It puts dialogs about value into the core of transactions and price-setting, and makes it clear that the job of the front-line is the "customer-value-first" task of ensuring that the customer gets, sees, and agrees to pay for the value desired. That aligns the operational teams with maximizing customer lifetime value. The result is constant learning about what each customer values, and how to maximize that both in terms of current products/services and in creating new products/services. With this simple shift, we constantly test our practices and modify our processes to optimize the co-creation of real value. Our processes become emergent because our pricing is emergent -- our practices lead us to see where value is and is not created, so we are constantly re-engineering to adapt to that. This may have narrow application at first, but I believe success in selected contexts will be the thin end of the wedge of a broader change to more customer-value-first, cooperative approaches to business (as is already happening with B2B value-based pricing practices). I must admit I am not clear on the line between process and practice -- to me the issue is to make both adaptive and responsive to what the customer values, as that evolves, so that the business relies on this emergence to "to accelerate performance improvement and learning on the front-line." If we are stuck optimizing obsolete metrics for value, our learning will stay stuck no matter how hard we try to push learning to the edge. We need to find a scalable way back to the traditional practice of setting prices at the edge (between the seller and the buyer, not in some pricing department). Finite and Infinite Games: I happened on this post because I picked up my old copy of that book, then went online to see what impact it had had, and found your nice post on it. FairPay shifts commerce from the finite games of transaction pricing to the repeated game of relationship -- and that makes it an infinite game. As you said there, "the rules of an infinite game can and must evolve to ensure the continuation and expansion of the game." FairPay makes commerce a continuing and expanding exploraton of value with each customer. For more: --FairPay as a (pseudo-infinite) repeated game that drives ongoing learning about value and builds cooperation: http://bit.ly/2fRy3I8 --How FairPay replaces the obsolete invisible hand with an invisible handshake: http://bit.ly/1PqFiT6 --How customer journeys can operationalize adaptive value loops that reinforce loyalty loops: http://bit.ly/2ca0MFG --An overview of FairPay: http://bit.ly/FPOvvw I am pursuing FairPay as a pro-bono project and will be interested to see how it fits with your ongoing research.
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Aug 26, 2017