Just say no to silos

While it might seem counterintuitive to share rather than compete, it’s actually smart business. The new paradigm is no longer about who makes it "best"; it’s about who makes it best for the way consumers want to consume it. (See Iconoculture's Cultural Zeitgeist report The Innovation Evolution.)

That means attempts to lock consumers in by limiting access or control just won’t cut it anymore. Companies are realizing that in order to succeed with modern-day consumers, they may need to cooperate with possible competitors. The key? Giving consumers options, opportunities and control, rather than planting them deep in the soil of the walled garden.

This mindset shift to openness has evolved from the knowledge explosion. The age of information isolation is long gone, and consumers (even late adopters) are more aware about the details behind products and companies, thanks to an unending array of Internet info at their fingertips. Consumers no longer placidly accept product usability limitations because of ignorance; they're exploring the "why" behind the deny. If the answer is based only on the best interests of the company, consumer reaction is … not a smiley face.

Forward-thinking companies are responding to consumer demand for more access and connectivity by way of cooperation. The mentality: better to live together than die alone. The move also serves to prove to customers that corporations are about more than just profits — they care about consumers and their lifestyles, too.

Tech on the loose

Here’s how some media, entertainment and technology brands are working together to give consumers what they want (while still watching the bottom line):

eBooks break free: The Kindle seemed so revolutionary, but consumers soon started wondering why they couldn’t read Amazon’s eBooks anywhere else. Amazon responded in 2009 by launching an iPhone app that allows books purchased for the Kindle to be read on Apple’s iPhone. Sure, it could cut down on Kindle sales when consumers realize they don’t need the (pricey) device to do their reading, but Amazon still profits from the eBook sales, so it results in a win-win-win.
  
Content choices on the box: Even though they compete with each other, both Netflix and Blockbuster saw the value of making their content available on TiVo boxes. Why? Reaching some TiVo consumers was better than not reaching consumers at all. With both content providers available on one box, consumers have the choice to select the service that best fits their needs, and both services wind up with new subscribers.  

Satellite radio goes device free: Used to be that consumers had to buy a special device to listen to the content on Sirius/XM radio. But as consumers started finding alternatives that were less expensive or even free (think: Pandora on the iPhone), Sirius/XM realized they'd better make the content more readily available on more devices. Subscribers can now listen to the shows and music on smartphones (other device expansions are in the works), saving consumers the cost of the device without making them sacrifice their Howard Stern.

Sharing the scoop: The idea of news organizations sharing reporters, photographers and stories was once unfathomable, but in an age when the print industry is struggling, publishers are tapping into a network of stringers to help keep budgets low and content high-quality. The Associated Press is now syndicating investigative journalism stories financed by nonprofits to help smaller papers continue to get the scoop.

The Boxee misstep: While we praise brands for making the merge work, we must also spank those that didn't. Online media aggregator application Boxee caused quite a stir at CES 2009 for carrying content from multiple high-profile sources  — including video wunderkind Hulu. However, soon after the launch, the powers-that-be at the TV networks weren’t so keen on the co-op mode and pulled content access. Who got hurt? Boxee's growth slowed, the networks lost a chance to gain greater viewership, and consumers missed the ability to watch content on their terms.

Who else is open to it?

The "cooperation, not competition" mentality has spread to a number of other industries, particularly now that the recession is affecting so many consumers. Partnership often means money savings.

T-Note teamwork: Multiple lending bodies go to the consumers instead of making consumers come to them. The online sites Virgin Money, Lending Club, On Deck capital, Credit Karma and Geezeo are all built around the idea (and values) of circumventing traditional banks and creditors.

Drinking buddies: New Belgium Brewing and Elysian Brewing Co. share facilities and talent to create specialty suds. In 2008, Sam Adams started a Hop Sharing Program to provide 20,000 pounds of hops, at cost, to home brewers who needed the supplies.

Snacking together: Most consumers combine brands when snacking, and now Kraft and Nestlé are banding together to recognize that reality. In a recent campaign called "Why Snackrifice?" Kraft's Chips Ahoy and Nestlé's Capri Sun were paired as an economical (under $1!) and delicious snack, showing that the brands were looking out for consumers' bottom lines (and hungry bellies).

Fashionable friendship: Although Ann Taylor Loft and P&G's Tide and Downy don't seem like competitors, they do have conflicting goals: one wants consumers to buy new clothes, while the other helps consumers maintain the wardrobes they have. Putting these conflicts aside, the retailer and laundry brands have joined forces to put consumers first, with Ann Taylor Loft stores giving shoppers samples of the laundry products to help cut down on dry-cleaning bills.

The four C's

Four values make the "cooperation, not competition" model sensible for consumers:

Convenience: Brands are making it easier for consumers to get what they want, how they want it and when they want it — without worry about what device, medium or platform they're using. Tearing down walled gardens to make content and information, not to mention interaction, as simple as possible makes consumers more likely to keep coming back.

Convergence: One-off devices and experiences just don’t cut it anymore. Like almost everything else in their lives, consumers are looking for brands to bring it all (content, information, innovation, experience) together in one simple, flexible and practical manner that puts the consumer first.

Connectivity: Feeling connected to a brand, whether because content is available on the go or because they played a role in creating a new product or device, makes consumers more willing to buy into a brand or product moving forward. A brand willing to partner with another company to place consumers' needs first is one that consumers will see as a lifestyle partner.

Control: Whether the recession is U, V or W shaped, consumers are using technology to learn new ways to cope with less. They're reevaluating what they need and really need. The values of control, savvy, practicality and simplicity are rising stars as consumers seek to take the reins — and save some cash — while getting more open-source bang for the buck.

Iconoculture is the leader in consumer trend research and advisory services that enables innovation and business growth for clients.