personal money – the
implications for service?
Phil Godsiff
Centre for Innovation and Service Research
University of Exeter Business School
Phil Godsiff, ISR, University of Exeter Business School
Venice Service Forum, May 2015
1
Changing “money landscapes” through
digitalisation
• Developments
– Mobile payments and fintech
– Cryptocurrencies
– Money as a vector with “dimensions” and “programmable”
• Values
• Time
• Rights
– Money as a form of memory and relationships “trust based
commerce within reputational groups” (Birch)
• Privacy and Identity
• reputation and endorsement
– Tech road map clearer than social map
Phil Godsiff, ISR, University of
Exeter Business School
Venice Service Forum, May 2015
2
3 key influences?
• 4P’s, 7C’s
• or is it 3C’s?
• Convenience
– (Why does it take so long to pay)
– (Does identity have anything to do with it)
• Connectivity
– That includes liquidity
• Community
– Like minded people in a liquid environment
Phil Godsiff, ISR, University of
Exeter Business School
Venice Service Forum, May 2015
3
The SDL story part 1 – FP1 and FP2
• “Service is exchanged for service” “is the primary focus
for exchange”
• “…..Service is provided through complex combinations
of goods, money and institutions….”
• Exchange
– “an act of giving one thing and receiving another
(especially of the same kind) in return.”
• What if money was not being used in the exchange
process
Phil Godsiff, ISR, University of
Exeter Business School
Venice Service Forum, May 2015
4
The SDL story part 2 – FP7 through 10
firm
The market economy
Operant resources
Operant resources
provides
customer
Proposition space
Perceived value increase
Identifies potential for use
Perceived value increase
Crystallised proposition
Value greater than
Service delivered
Does the market economy need current money
money
Phil Godsiff, ISR, University of
Exeter Business School
Venice Service Forum, May 2015
Ongoing “Value” expected >
5
SDL, markets and money
• “price ( an expression of value in exchange) was a
quantitative estimate of how valued a party’s
specialized-resource-based service potential was in a
market-based economy;”
• “SDL is grounded in micro activities of humans ..offers
justifications for ..macro institutions and
structures…goods money organisations intermediaries
and markets …as natural consequences of
specialisation and exchange”
• [SDL replaces] price [with] a strategic orientation
on..value propositions”
• The market place uses money a medium of exchange
Lusch and Vargo
Phil Godsiff, ISR, University of
Exeter Business School
Venice Service Forum, May 2015
6
Fig. 1 The S-D logic actor: Co-Creating through resource Integration & Service
Exchange
(Vargo and Lusch 2014)
Phil Godsiff, ISR, University of
Exeter Business School
Venice Service Forum, May 2015
7
The presumption / assumption of the
market
• Exchange within a market
• The economists’ view
– Still highly influential but no evidence for it other than an
assumption
– To reduce immediate and time based transaction costs of barter
• Frozen memory service and time and identity
• Memory is about identity
– Partly driven by Specialisation and exchange / gains from trade
(MCA); helps us learn the “relative value of things”
• The anthropologist’s view
– Maths and Violence
– credit transactions turned into exchange transactions
Phil Godsiff, ISR, University of
Exeter Business School
Venice Service Forum, May 2015
8
Sdl service value and money
• Things “are only of value because of the value [that looks a bit circular]
that can be extracted or received (my italics) from them in use” (VL)
– i.e not because scarce, or non tarnishable, nor needs effort to attain it,
nor held only by the [self defined] rich
– Does this apply to money?
• What is the value in use of money?
• Identity may be split into
– Privacy / security
– Trust / entitlement
• The derivation and creation of value
– Value and reality is socially created
Phil Godsiff, ISR, University of
Exeter Business School
Venice Service Forum, May 2015
9
Lets be bold and ask a few “what ifs?”
• anything could be money?
– Social graph as money not 3rd party
• Money memory identity and privacy were in some way
equivalent (like mass and energy?)
• Value creation was embedded in the contract in the
blockchain and contingent?
• It was not markets as “the central forum for exchange”
but “facebook”
• “markets and marketing are” not “ primary drivers or
creators of society” but “maths and violence” is? (
• What if money was not mediated through a trusted
(untrusted) 3rd party
(VL)
Phil Godsiff, ISR, University of
Exeter Business School
Venice Service Forum, May 2015
(VL),
Graeber)
10
Discussion/ coffee opportunity
• Research challenges
– What would a personal currency look and behave like
• Security and privacy
–
–
–
–
–
–
“service” as a unit of measure, rather than money
Should memory/money expire?
How many currencies should you have
What is the role of the existing infrastructure
Does SDL need another proposition
Does monetisation need money
Phil Godsiff, ISR, University of
Exeter Business School
Venice Service Forum, May 2015
11