Visions of the Future (87 page)

ENDNOTES

1. World’s population increasingly urban with more than half living in urban areas
   at
   http://www.un.org/en/development/desa/news/population/world-urbanization-prospects-2014.html
   .
   
2. Seattle’s Dog Obsession
   at
   http://www.seattlemag.com/article/seattles-dog-obsession
   .
   
3. New York City’s Pet Population
   at
   http://www.nycedc.com/blog-entry/new-york-city-s-pet-population
   .
   
4. Dogs in England must be microchipped from 2016
   at
   http://www.bbc.com/news/uk-21345730
   .
   
5. Tagg GPS Pet Tracker – Dog and Cat Collar Attachment
   at
   http://amzn.to/1zVEds3
   .
   
6. Until Tuesday
   at
   http://amzn.to/1AHXdhY
   .
   

Today’s world increasingly challenges us to think differently about value and money. Almost everyone agrees that reputation is important. But how important is it? Does it have an impact on your finances? What is the currency of reputation and is it transferable or exchangeable?

How is reputation created?

Reputation is co-created by individuals having experiences. Looking for a great Italian restaurant for dinner tonight? Search Yelp reviews and see what people who have already dined at a place have to say about it. Want to know what it’s like to work with a potential hire? Read their Linkedln referrals. Wondering whether or not other people are happy with a product you’re about to buy? Amazon reviews will tell you. You’ve probably even shared your own experiences with something you enjoyed or to warn others about a less than positive experience. Your FICO score measures your credit risk, which is really credit reputation, based on your behavior.

But reputation is not always clear-cut. You’ve probably read reviews in which equal numbers of people give raves or have had a bad experience. Values, economic ability and taste all factor into someone’s experience and subsequent review. Reputation can be messy and reviews difficult to differentiate. Reputation is not a fixed asset. Your FICO score, which is your financial reputation, is not set in stone. It changes as your credit habits change.

This brings us to a subject that is not often discussed and doesn’t have a good technical solution: people change and their reputation does too. However, the way people think about each other’s reputation doesn’t necessarily keep pace with the changes. Outdated stigmas remain attached to individuals, products and services. We don’t have a good ability to forgive mistakes and accept positive change. In the digital world there’s the growing pressure for certain events and information to be forgotten. The recent EU ruling requires Google to remove information when requested. This is a clumsy solution to the problem of changing reputation. We need to have a technical solution that can honestly reflect reputational ebbs and flows.

When you need to pay your bills, you can’t go to your LinkedIn page and cash out your recommendations like withdrawing money from an ATM. However, your reputation does influence your cash flow. Positive recommendations may increase the kind and amount of work you’re offered and your ability to increase your salary. A better reputation does lead to increased cash flow.

Reputation is a requirement of the sharing economy. For AirBnB hosts and Uber and Lyft drivers, positive ratings are paramount to their success. It might seem crazy to stay at a stranger’s house, but on AirBnB, host reviews facilitate trust among strangers. On a recent trip to Madrid, I selected an AirBnB location based on the reviews of the host, Sancho. I wanted to stay with someone who knew the local area and could suggest places to visit. When I met Sancho in person, not only did he tell me the best places to go, we became fast friends. This experience has happened to me many times—whether I was hosting or being hosted.

When you know what to expect, you can be more relaxed and focus on the experience. Reviews on AirBnB enable you to select the travel experience you want—thanks to the travelers who stayed there before you. Your AirBnB, Yelp and eBay reviews have immense values outside their immediate platforms. Even though these reputation systems have been created for the specific company—imagine how powerful it would be to have your reputation in one place.

Is reputation transferable?

Is it possible for reputation to be exchanged from one platform to another?

I was recently told a story that illustrates how reputation can be transferred. Uber and Lyft are both independent operator ride-sharing platforms. Both companies facilitate the connection between driver and passenger. Drivers must be reviewed and approved before giving rides through their system. In a move to gain more drivers and compete with Lyft, Uber offered bonuses to tempt already approved Lyft drivers to the Uber platform. In some cases, it was easier for a new driver to go through the Lyft approval process and then switch companies, than it was to apply directly to Uber.

This is an unusual example of the direct immediate transfer of reputation.

Reputation and the Future

Reputation will be a visible part of our everyday transaction experience.

SCENARIO 1:
SMART CHECK DEVICE

In the below scenario four friends are splitting the check through a SmartCheck device. Though the SmartCheck, they can rate their dining experience right there. The restaurant gathers immediate feedback—and if the restaurant wanted, the server could rate the diners.

SCENARIO 2:

MOTORCYCLE FOR SALE

Ever try to sell something on a classified service? It’s often hard to figure out who is a scammer and who is a qualified buyer. In the below scenario, a woman is looking at motorcycles for sale. The seller’s reputation is shown as a “verification” checkmark on their profile. This helps the buyer judge which seller she wants to deal with.

While we will continue to create reputation on individual platforms, there will be an increasing demand for fluid exchange of reputation and ratings from one system to another. I believe we’ll see tools to aggregate your reputation in one place. Reputation system APIs may be developed which will enable you to transfer your reputation to new platforms.