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As traditional business models evolve, a new market is emerging. This is the case for digital products as well as for items which are usually sold in the real world. Instead of lines of production following a linear manufacturer-to-buyer model we now see more circular models such as buyer-to-manufacturer-to-buyer or buyer-to-buyer. A popular example of this of which has seen a large take up in the past decade is Ebay, where users can buy from and sell to other users, without the hassle of a traditional intermediary. These online shop fronts usually have a blueprint, or informational layer, displaying a description, photo, or instructional manual for the products available, provided by the seller.
A more recent uptake in the digital world is the emergence of buy, make, sell websites such as Ponoko. This type of business is more personalised as buyers first get to design or tweak the product to suit their needs and then have the manufacturer produce the product with their specifications before delivery. Dell computers is another example of this. The benefit of these business’ planing process is the elimination of risk. As the product is only made when an order has been registered these businesses are making exactly to demand. Differing from the model behind Ebay, the informational layer of these websites is usually provided by the customer. This may be software which allows the customer to design their product, or simply the ability to describe their specifications.
These new models for buying and selling online are also changing the motivations of companies. As “real world” companies are focusing more attention on social responsibility over profits, digital world companies are focusing more on social networking rather than competition. These company’s online fronts now take more of a community form then a shop, with some companies offering discussion pages and instructional videos or tips on top of the products and services they intend to sell.
DIY Design and Production, or Produsage Production, also refers to the sites set up by communities of interest or for these communities to discuss products they’ve used, changes they’ve made or tips they have for others with a similar interest area. Companies such as Burda have taken this new social networking craze and have used it to the advantage of their product and the business’ growth. Burdastyle is Burda’s online community for customers to communicate with each other discussing changes they made to the product, ideas they have in relation to Burda’s patterns and general communication between customers who share this interest area.
The advantages of these new business styles are considerably focused on the consumer. As companies are opening themselves up for critique, offering instructional support, and adjusting to the feedback from consumers, it is now easier than ever for consumers to find the product they need.
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I looked at Dell, which you discussed, and I found that not only are they aiming to please customers by meeting customer demands and tailoring their products to their customer’s exact specifications but Dell also encourages participation and the formation of communities. Dell has links on their site which connect consumers, allows them to talk to each other, share reviews and ideas and consumers are also able to link to the Dell blog. It’s great to see these elements of produsage emerge in a commercial business space.
Comment by kboscarin May 25, 2009 @ 3:44 amI liked the link you made with the “real” world companies taking on more responsibility to be socially aware, compared to “digital” companies encouraging social networking. This highlights the parallels between what is happening online and offline. With this focus on the consumer, on communities, it is now even more important then ever to ensure that these people are satisfied and happy with the products or services that businesses are providing them with. This is why businesses need to alter their lines of production and implement produsage into their business models. I definitely think that if they do this then they will be at an advantage when compared to other commercial entities that do not evolve with these changing times.
I would think that because Dell has implemented all these new and innovative elements into their company then they would be a market leader. I looked into sales of leading computer brands in Australia; Dell was not included within the top five. So when produsage is applied to production, how well does it really work? Will companies really be at a major advantage? I thought so, but evidentially this is not the case. I guess it is also quite difficult to measure as produsage is such a new concept. But it does pose an interesting question.
Interesting blog Carly, it got me thinking!