You probably remember a blog from January in which I spoke about the event-driven economy and FREE products.

This blog gives you in a lot more detail how the event-driven economy is going to impact your organizations.

Why is important that you understand what the event-driven economy is?

If you understand the event-driven economy it you will be able to prepare, adjust and prosper in this new market. You don't want to be a "sailing ship" in the steam age, or a "steam ship" in the plane age… you get my drift. I'm sure that a lot of the sailing ship skippers who looked with disdain to the steel ships didn’t pay too much attention, and found themselves unable to compete when steam became the norm. I’m sure that you will not do the same thing, and you will be able contribute so your organization is ready.

 

Weren't we suppose to be in the "global economy"?

The so called global economy is a product of the late 20th century. It is based on the imbalances in the workforce pay, currency value and commodity prices (among others). One doesn't need to use macro-economics (a subject about which I know very little), sociology or even ecology to see that something is changing with the global economy. Actually through engineering concepts, a topic about which I know a little bit more, that change becomes clear.

 

What characterizes the event-driven economy?

A new type of economy is emerging. This economy focuses NOT on the value of the product itself, but in the value added that its use brings to the user. This economy is about establishing long term partnerships with your customers, and bill them every they use your products to generate value. In this economy, your products will embedded with your customer value chain, and you will be able to have a better understanding know your products/services contribute to your customers wealth. This economy is based on the ability to collected massive amounts of usage information from how your products, so you can deliver a superior customer experience, and bill your customer in a win-win fashion.

 

Shouldn't the business charge as much as the market allows?

 

No organization is able to survive without partners. You will want to the same treatment from your partners. If you don't seek the win-win, and you get to be know as a bad partner, less organizations will want to do business with you. In the idea economy, you don't want to left to partner with the less talented people. Respect for your partners and customers (just another type of partners), is paramount.

 

What are examples of the Event-Driven economy?

Here are a few simple examples of the Event-Driven economy.

 

Wal-Mart	Gives away refrigerators in exchange for an exclusive agreement to sell and deliver groceries directly to your house. The refrigerator has a self-replenishment system that monitors all of your groceries and allows you to order new items as they become available.
Oil Companies	Give away cars in exchange for an exclusive agreement for you to buy their gasoline products. The cars communicate back to the oil companies places you like to be spend time, which they exchange with other organizations
Power Utilities	Gives away all house hold appliances in if you will use their kind of power rather than an alternative type – natural gas versus electric heating

 

Wait a minute… this is not new… telecom has always done it!

You are absolutely right. Telecom has been working in the event-driven economy for years. They give you the cell phone and you pay the usage. What you have to recognize is that there's no coincidence in the fact that they have been doing it for the longest of times. You see, they were the only industry that not only required their customers to be on-line to use their products but also needed to capture electronics records to charge them later.

 

Important note: if you wondering if this economic model is profitable, you should see the margins of the telecom operators, especially after their investments are paid for.... and please don't forget Google.

 

Welcome to the EVERNET!

Now for the really interesting part. With the EVERNET your products can be constantly monitored. This means that you can charge per usage instead of charging an up-front fee to all its customers. Can imagine how exciting that is?

 

What will it be required from your organizations in the event-driven economy?

The event-driven economy brings fantastic challenges and opportunities to your organization. We usually say that the event-driven economy is the "global economy on steroids". In this new economy your organization will collect, monitor, and correlate astronomic amounts of events to:

 

• ensure the highest product quality, and exact customer specifications, during the production cycle
  
• bill your customers during their use of your products
• adapt your processes on the fly to follow market trends

 

Please don't forget that you will have to it ensure strict compliance with security and privacy laws.

 

What is M2MSys' role in the Event-Driven economy?

There are three key concepts in the event-driven economy: the event, the process and event-analytics™. In a nutshell, your organization will have to collect the event (M2M), perform event-analytics (Systemic) and adjust the processes accordingly (BPM).

 

To make it a lot easier for you, M2MSys combined all of these concepts in a concept that is a lot easier to understand - the H2O Organization™ which is supported by the Cognitive Event Driven Information System™. Both concepts were built upon a M2MSys' Unified Event Theory™ and Unified Process Theory™ frameworks that we fleshing out the details (will have more about that in future blogs!).

 

What should you walk away from this blog?

 

1. The event-driven economy opens endless way for you sell your products and services
   
2. The event-driven economy requires hyper-efficiency and adaptability
3. M2MSys is an expert on the event-driven economy.