In today’s highly networked and increasingly modular environment, on-demand services and products are no longer a luxury.
You want to customize your own Nike sneakers? No problem. Go to NikeIDwhere you can customize your shoes (albeit with a finite, but large, number of options). Your individual choices will automatically be communicated to the production facility in Asia which has been upgraded to be able to produce pair after pair of customized shoes that can be shipped directly to their buyers. And all for the same (or slightly higher) cost as a mass produced pair of shoes.
This is the reversal of that other Industrial Revolution effect: mass production. But more on that on another day.
A company I discovered this week that does on-demand services and products in publishing is Lulu. The world of publishing has long been dominated by the publishers. They decide what should get published and how much of each product should be published. Consequently, they also control the marketing, pricing, and all other traditional processes for bringing a published product to the market. And the product can be books, music, movies, you name it.
Why is that? Well, there has never been an easy way for the content producers (writers, musicians, film makers) to publish their material on-demand (i.e., only for the number of customers that want to buy it). Partly because they couldn’t know what the demand was unless they first published the product and then saw how many customers bought it. And the physical publishers themselves needed to capitalize on economies of scale, so they would only publish a minimum number of product copies.
Today we have solved both problems. Publishing technology is flexible, digital, and modularized so it can publish one or one million products without a difference in cost. In the case of books, imagine the difference of printing a book that had to be manually typesetted and printing one that is in digital format that can be easily sent to the printer’s digital storage. And if your product is available first in digital format, then you can figure out the demand for it before you actually physically publish it.
Lulu does exactly that. A customer can publish any product (book, music CD, images, and so on) for free. Yes, for free! Basically, the customer uploads the content on Lulu’s servers and then waits to see if someone buys the product. Each time someone buys the product, one copy is published and shipped. Lulu only gets paid a commission if a product is sold.
Lulu’s founders were also smart to realize that once you provide the basic service for free, you can increase your revenue source through value-added services. And they provide some of those, including a number of author marketing tools. They also know that if they help budding authors sell their books, they’ll make more money. So, they’ve created a marketplace on their site for third party services, such as editing, proofreading, translation, etc.
The question of course remains: if Joe Blow publishes his self-described masterpiece on Lulu, will anyone buy it?
Does it matter? Lulu makes money even if only a single copy is sold. Don’t you think Joe Blow will buy at least one copy himself to show off to everyone?
Posted by technodarwinism
Posted by technodarwinism 



