MBA's Favorite e-commerce books 2010: Netflix

For this book review project, I wanted to use David Meerman Scott’s “The New Rules of Marketing and PR,” but it was claimed first by another student. I wanted to use “Inbound Marketing” by Brian Halligan and Dharmesh Shah, the guys at Hubspot, but it was also taken. I moved on to “Rework” by Jason Fried and David Heinemeier Hansson, the guys at 37signals, but it proved to be more general business than specific ecommerce. I did write that one up anyway - you can my glowing review of "Rework" right here.

So, I was at a loss … until I read a blog post from Seth Godin propping up a new, “big idea” book (in which he’s name checked as the pioneer of “permission marketing”).

Lisa Gansky’s “The Mesh: Why The Future Of Business Is Sharing” is absolutely both “brand new” and “big idea.” It’s also “right now.” The Mesh is a book that could not have been written 5 years ago, though much of the concept’s foundation was well underway at that time. Likewise, it’s a book at which we could look back 5 years from now and appreciate how insightful and telling her vision was at the time.

Aside from having to read about businesses, strategies and tactics as being “meshy” or “very meshy,” I found the book a complete pleasure to read. Aside from having to accept a few arguments and ideas without direct connection to the presumably-backing references listed at the end (no direct citations), I found Gansky’s vision smart, compelling and forward looking.

So what is “The Mesh?” In short, think Netflix versus Blockbuster. Though both are based on the concept of buy once and sell many times (renting out the same DVD over and over again to different customers), Netflix is an information company. Layers upon layers of data are collected and processed to make it easier and easier for Netflix customers to find, watch and review movies and TV shows. Meanwhile, Blockbuster’s in bankruptcy protection.

Gansky’s preferred example is Zipcar, an information company that happens to share cars (as opposed to making and/or selling cars). It's exemplary because it touches on all the main characteristics of Mesh companies:

Core offering that's shared
Reliance on web, mobile and social networks
Frequent interactions with each customer
Layers and layers of data collected about each car, customer, transaction, trip, etc.
Data analysis to produce offers that are more and more personal, timely and relevant
Partnerships with other companies to provide more value and collect more data

Once you sign up for Zipcar, you're given a Zipcard. You can use a web or mobile app to find cars near you and reserve one for an hour, an afternoon, a couple days or more. Your Zipcard or mobile phone unlocks the car you've reserved; the keys are waiting inside. The cars are typically fun models and each is given a name. For those who either are on vacation or live in large cities, this kind of easy access to high quality cars exactly when and where you need them is more convenient and less expensive than owning the same car outright.

Other companies highlighted include Prosper (peer-to-peer lending), thredUp (clothes), Crushpad (wine making), Kickstarter (project funding), Roomorama (apartments), several other car-sharing services and many more. Again, Zipcar and Netflix seem to exemplify best her full vision.

Included in this fast, fun read:

Characteristics of Mesh companies
Load of example, plus a half dozen or so "Case Study" breakouts
Macro-level enabling factors and driving forces
Specific advantages of employing Mesh strategies
How and why Mesh strategies threaten traditional models
Points to consider for your own Mesh start-up

I highly recommend “The Mesh” for marketers, entrepreneurs, environmentalists and anyone else who’s into what’s happening right now and what’s around the corner.

LINKS

The Mesh Homepage and Business Directory: