Personal money – the implications for service? Phil Godsiff Centre for Innovation and Service...

Venice Service Forum, May 2015 1

personal money – the implications for service?

Phil GodsiffCentre for Innovation and Service Research

University of Exeter Business School

Phil Godsiff, ISR, University of Exeter Business School


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 mapPhil Godsiff, ISR, University of Exeter Business School


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



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


Venice Service Forum, May 2015 5Phil Godsiff, ISR, University of Exeter Business School

firm

provides

The market economy

Ongoing “Value” expected >

Value greater than

Proposition space

money

Identifies potential for use

Operant resources

customer

Operant resources

Does the market economy need current money

Perceived value increase Perceived value increase

Crystallised proposition

Service delivered

The SDL story part 2 – FP7 through 10


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

Venice Service Forum, May 2015 7Phil Godsiff, ISR, University of Exeter Business School

Fig. 1 The S-D logic actor: Co-Creating through resource Integration & Service Exchange(Vargo and Lusch 2014)


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



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



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” (VL), but “facebook”

• “markets and marketing are” not “ primary drivers or creators of society” (VL) but “maths and violence” is? (Graeber)

• What if money was not mediated through a trusted (untrusted) 3rd party



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


Personal money – the implications for service? Phil Godsiff Centre for Innovation and Service...

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