Okay, "Client 1.0′′ still is. But I want to talk about the “Customer 2.0′′ and, now taking on a “boring” Post, it makes sense to create some context and define who is the “Client 1.0′′”.

In the old world pre “2.0′′, the customer was only a number in the business plan of most companies. In the world of Internet and IT, Client 1.0 was someone who:

  • Buying software packages;

  • Installed this software and maintained it;

  • paid for updates;

  • He owned and controlled his data;

  • It had significant initial fixed costs with the purchase of software;

  • it took time to use due to the need for demand-purchase-send-installation;

  • I found it hard to switch from one software to another.

Customer 1.0 is served by a traditional software selling model that has the following characteristics:

  • Low volumes / Significant transactions;

  • Quantity is a more important feature than quality;

  • indirect sales channels through partners or dealers;

  • High barriers at entry and exit;

  • Expert and fragmented customer support;

  • Structured price and product models.

Trends in the environment 2.0:

  • Software market much more competitive and aggressive;

  • growth of digital content;

  • Internet (and broadband) proliferation;

  • Computer clouds (Cloud computing);

  • Social networking;

  • collaboration;

  • Web 2.0 Mashups;

  • Code-savvy users;

  • Online Advertising presenting successful business models.

These “trends” followed the evolution of “Client 1.0′′ to “Client 2.0′′” through features such as:

  • optional purchase models (flat tariffs and consumer-based subscriptions);

  • Pay only what is used and when used;

  • Possibility to add features transparently;

  • Expectation of free and continuous updates;

  • Ease in supplier exchange;

  • Flexible budgets for software purchase;

  • Expectation of experiences Advanced Internet;

  • Acceptance of advertising models;

  • Problem solving and management expectations in “Self-service” model;

  • Acceptance of web software models (not installed in the client);

  • Local and Internet data;

  • direct relationship with the service provider;

  • Instant purchase and activation.

These characteristics are radically different and force change in traditional models. Today, “subscription” business models have emerged and are a significant part of global models, becoming the key to much of the new business strategies.

Business models based on “subscription” require features such as:

  • Dynamic product models and pricing;

  • infrastructure providing reliability and buying regulatory standards;

  • Customer data is spread across services;

  • Levels of use of progressive characteristics/functionalities;

  • High volumes / small transactions (Long Tail effect);

  • Troubleshooting “Self-Service”;

  • regular service updates;

  • Critical customer retention;

  • Service management (and service levels) in “Self-Service”;

  • Low entry/output barriers;

  • direct relationship with the client (through the value chain);

  • Poor customer segmentation;

  • Experience if unified customer support;

  • Customer unique view at 360 degrees;

  • There are no boundaries between features and support systems in IT;

  • Business models by Subscription/consumption/points/publicity;

  • Balanced transfer between credits and points.

These new Business Models represent a radical change and force a new vision, about the current models and about the areas of information systems.

Speaking a little about “who” interests... the next post.