Net Worth: Shaping Markets When Customers Make the Rules - Hardcover

Hagel III, John; Singer, Marc

Hardcover

ISBN 10: 0875848893 ISBN 13: 9780875848891

Publisher: Harvard Business Review Press, 1999

Synopsis

Net Worth explains how businesses can benefit by forming new partnerships with customers in matters of information capture and privacy. Consumers are losing patience with companies that use personal data about buying habits, income levels, and credit card usage for corporate gain. What consumers need is a new kind of business--an information intermediary or infomediary--to protect customers' privacy while maximizing their information assets. Companies playing the infomediary role will become agents of customer information, marketing such data to businesses on consumers' behalf and protecting consumer privacy. John Hagel, co-author of the bestselling Net Gain, teams with Marc Singer to lay out the underlying economic and competitive dynamics that will foster the emerging business of the infomediary. Net Worth identifies the convergence of commerce, technology, and consumer frustration as the incubator for the infomediary business, as consumers seek to release their personal information only when they can receive value in exchange for their data.

About this title

Review:

No one ever said consumerism was easy. At one end, the poor consumer faces a bewildering array of goods and services. On the other, vendors contend with a diverse and fragmented marketplace that makes finding the right set of customers akin to finding the proverbial needle in the haystack. And in between are the billions misspent on muffed purchases and broken marketing campaigns that serve only to stuff mailboxes and alienate the very customers that vendors are trying to attract. The rise of e-commerce has only intensified the problem by offering consumers even greater choice and vendors more competition. John Hagel and Marc Singer think they've got a better idea, and in Net Worth, they present an online scenario that would end this chaos and give both customers and vendors what they really want.

At the heart of Hagel and Singer's solution is the "infomediary" that sits between the customer and vendor. For the consumer, the infomediary acts as a trustworthy agent who knows the needs and habits of the client. For the vendor, the infomediary is the holy grail of consumer behavior, a marketer's dream. The infomediary brokers client information to vendors in exchange for goods and services for the consumer. The result? Happy consumers, satisfied marketers, and a very lucrative business model that awaits those entrepreneurs and companies that are bold enough to embrace the idea. The authors painstakingly outline the challenges and opportunities of developing an infomediary business and go as far as to peg the potential market cap of a dominant player at $20 billion by its fifth year of operation. While the idea of software agents is nothing new, Hagel and Singer may be breathing new life into the idea at just the right time. And even if infomediaries never arise, following the thinking of Hagel and Singer is well worth the price of admission. For marketers, managers, entrepreneurs, and just about anyone who thinks about e-commerce. Highly recommended. --Harry C. Edwards

From the Publisher:

A Business Week Bestseller

About this edition

• Publisher: Harvard Business Review Press
• Publication date: 1999
• ISBN 10: 0875848893
• ISBN 13: 9780875848891
• Binding: Hardcover
• Edition number: 1
• Number of pages: 336