Ondema: Breaking eCommerce’s Core Constraints
A Brief Overview
The world of internet and computing has impacted our lives in profound ways, some of which unimaginable just two decades ago.
In short, tech advancements and proliferation of computers and smartphones have made information abundantly available, highly accessible, and easy to generate or edit. New business models emerged, new ecosystems rose, everyday folks got mass media power within the reach of their fingertips, and new data is produced at an unprecedented pace.
As a result, some well established business models and industries were majorly disrupted by newer ones. For example, Amazon is killing retail, Airbnb is disrupting the hospitality industry, Uber is an imminent danger to taxis, and Bitcoin and Blockchain might undermine the old finance industry of banking, to name a few.
Since massive amounts of data enable precise consumer segmentation in terms of taste preference (value proposition), channel of delivery (smartphone/browser etc), particular medium (app/site/in app/site), content type (video/banner etc), and specific messaging, it suddenly became possible for companies to reach consumers in their native environments, and to target them specifically using personalized advertising.
As a consequence, competition is fiercer than ever before, which in return makes consumer demands higher, and vice versa, in a never-ending cycle. In some industries, companies’ profit margins are being consistently eroded, which makes them more sensitive to unnecessary expenses and market fluctuations.
Unfortunately, this seems to be a trend which cannot be avoided using customary business procedures. The reason is that even though information is abundantly available, it still remains very difficult to foresee the future; as a result, many companies are still trapped in a painful paradigm, in which they try to predict what end consumers might like, and then they go on and buy or manufacture their products based on their predictions. Since such predictions are rarely precise enough, this process usually leads to stale inventory, lost time, and unnecessary expenses.
Constraints in the Context of Commerce
Things evolved, but old constraints were still in place, stopping further evolution in commerce. One major constraint was mass production.
In a world in which products are mass produced, how precise can a company really be when trying to meet the demands of different consumers? Since setting up a production line is a costly operation, companies had to aim at a low-enough common denominator in terms of product design, which limited their potential of meeting the specific demands of different individual users.
New technological developments, such as “manufacturing on demand” (or MOD), are easing this constraint up. In simple terms, MOD allows for production of goods when or as they are required, in quantities as low as single items. This leads to leaner inventory, which allows tech savvy companies to save money in supply chain execution, and carries ecological significance as well. Moreover, it also allows for more precise product specification, per batch or individual consumer.
Constraints in the Context of eCommerce
In the context of eCommerce, we’re at a stage where one can connect an online store front to a back end MOD service, and achieve unlimited production power without the burden of inventory. By doing this, consumers get better offerings while store owners ease the pain of inventory management and cashflow derivatives associated to it.
This is a major step forward, however, two inherent constraints still remain:
The first constraint is that getting a consumer to an eCommerce website is usually not an easy task. It involves cost, and a considerable amount of friction.
The second constraint is that most sites choose products that appeal to the widest range of their potential consumers (based on the “low-enough common denominator” principal) instead of showing each and every consumer personalized products that fit their liking perfectly. In essence, such sites are a “one shop fits all” environment.
In the context of the established way of doing things, there seems to be no way of breaking these constraints.
Ondema: Breaking Constraints
This is where Ondema enters the stage. It developed a unique solution that enables generation of highly personalized products, to meet the likings of each and every consumer out there, specifically.
This solution is applicable to any digital outlet in virtually every domain, such as gaming, hardcore news, publishing, or photography, to name a few.
Adding the Ondema solution to a digital platform takes minutes, and once done, users can choose content they like from that platform by clicking a cool little button located on the content itself, and buy products that feature that content directly from the same platform. The process involves minimal friction from the consumers’ perspective, since no advertising or redirects are involved, but also from the platform-owner’s perspective, since Ondema handles payment, fulfilment, customer support and revenue share, through a transparent interface.
The big deal is that Ondema meets the consumer in her or his native environment in which they spend time organically and feel at home. Therefore, the need to get the consumer to a store front is eliminated, since every content page in every digital environment becomes a store front! And on top of that, Ondema offers each individual consumer personalized products that fit their liking perfectly.
To sum it up, Ondema is positioned at the intersection between consumers and the content that they organically consume, in a stylish and non-intrusive way