Transformation Economy

The book The Experience Economy: Work Is Theatre & Every Business a Stage, by B. Joseph Pine II & James H. Gilmore, identifies these economic layers:

The profession of AgileCoach? works at the 5th level of the economy. A coach transforms a team from whatever to Agile (and therefor "good") software practices.

Each layer of the economy charges 10 times more than the next lower layer, and gives the layer below that away for free. 5c worth of wheat, in a bread roll in a deli (a service) is 50c. In a restaurant (an experience) it is free. The restaurant charges extra for the meals and big premiums for the luxury items, like deserts.

A transformation consists of a series of experiences. Coaches charge for each experience, and essentially give the services away for free. Items like e-mail support, FitNesse, and PairProgramming with the newbies are free because the 100x markup to the transformation level is so lucrative. Charging per line item inhibits the flexible spontaneity that ensures success.

The transforming experiences are:

This model explains the success of ExtremeProgramming itself. It is a software lifecycle with both the verbiage and internal qualities that lead to rapid and lucrative team transformations.

-- PhlIp

And note that the DisneyLand? model - advertising the Experience to your kids, then making you pay extra for all the Goods - is incredibly UserHostile.

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