This is a repost of Steve Faktor’s original Forbes article
My business is helping companies speed up innovation – often by partnering with tech startups. A wilder ride compared to my days leading innovation at Fortune 100 companies. But lately, I’ve experienced enough déjà vu to get a platinum medical marijuana card. Maybe you’ve heard of “multiple discovery”. The theory says that similar inventions happen simultaneously because of converging technologies and common problems. Among mobile payments and loyalty startups, easy money is fueling what I call “marginal discovery” – slight variations on similar ideas. For every truly outstanding startup, five or six have a faulty premise, fail to solve a problem, or choose “cool” over simple. To protect the innocent, I’ve turned my list of frustrations into a set of “rules” to help budding entrepreneurs and experienced executives steer clear of the weed dispensary…
Why am I writing about Twitter at midnight? Even Ashton Kutcher is icing his iThumb at this hour. I’m chasing a brainstorm for my keynote at New Media Expo/Blogworld on Sunday. My talk is about the future of social currencies and the new economics of work. Since launching several successful loyalty services at MasterCard and American Express, I’ve been obsessed with deconstructing what motivates us. That’s why social media and gamification are so amusing to me. They’re a shiny new set of controls that can change – or exploit human behavior. But before drunkenly commandeering The USS Twitter, it’s best to first meet its passengers. Like my 15 Faces of Facebook article last year, here is a deconstruction of Twitter – what it is, who uses it, and what motivates them. In future articles, I’ll go deeper into tools to change both customer and employee behavior.
Registered users will get the detailed infographic here (to be posted on 1/11)
Having led innovation at Amex, MasterCard and Citi, I know where the bodies are buried. I also know that payment wars aren’t just about fees anymore. That’s so 1990′s. Years ago, when Walmart threatened to enter payments and banking, incumbents nearly soiled their Hanes. After a little sword-fighting, providers slashed their margins so thin, big merchants had no incentive to do their own thing. This time it’s different. Payments companies are not the real threat.
Today’s war is about data and its power to shift loyalties. In the arms race to probe customers’ deepest, darkest desires, card companies and merchants find themselves bringing spitballs to a gunfight. So, I’m not surprised to see Walmart, Target and others are starting their own 99% movement. Big retailers are launching their own mobile payments system. This is the first of many moves you can expect by merchants to liberate themselves of increasingly omnipotent middlemen. Below are three reasons retailers’ strategy makes sense