Psychology of design
Tobias Baer shares an article on the latest Google news and the regulation of Big Tech. He explores the impact of Google’s algorithms on e-commerce and the commercialization of the internet.
In spite of its limited scope, the DOJ’s antitrust complaint against Google already highlights three fundamental issues of e-commerce and the commercialization of the internet. The first is about industrial organization – how to create a digital market structure that isn’t monopolized through natural network and scale effects? The second issue is the bundling of services especially in areas where due to information asymmetry, consumers don’t see the true cost of their decisions (as they pay with their data) and hence are highly vulnerable to exploitation. The third issue is the important role of design as a key trigger of human behavior – an aspect where governments still are playing catch-up with the latest insights of psychology and behavioral economics.
Before offering two specific solutions to the problem, I want to briefly explain these three issues.
Monopolization of e-commerce
The DOJ’s allegations of anticompetitive behavior is the latest evidence that the internet, rather than democratizing seller and buyer relationships and giving more power to consumers by getting rid of the “middle man”, has enabled the creation of powerful new quasi-monopolies. Such creation of dominating platforms is driven not only by network effects (e.g., just as we benefit from everyone speaking the same language, it also benefits us to communicate through the same channel or app) but also because of an inherent need for risk management, as I’ve argued in an earlier article. I learned already in Industrial Organization 101 that in such situations regulations need to create a market structure protecting a balance of forces between sellers and buyers – sadly my teacher did not explain exactly how to do this for the internet (which back then was in its infancy)!
Key points include:
- The high cost of bundling
- The psychology of design
- A regulated code of conduct
Read the full article, What Google’s antitrust lawsuit means, on LinkedIn.
Umbrex is pleased to welcome Abhinav Chandra. Abhinav is a seasoned Senior Leader with deep expertise in Retail/Consumer and Technology across a wide range of functional areas. Abhinav was an Associate Partner in McKinsey’s Retail and Operations practices where he served multiple clients on topics including omni-channel supply chain strategy, marketing and growth strategy, store operations and private label design and sourcing to name a few.
Post McKinsey, Abhinav was at Amazon, where he was Head of Customer Experience, Worldwide and Head of Women’s Clothing business. At Amazon, he drove increased automation using advanced technologies like AI/ML to scale operations and drive growth and profitability. Abhinav lives in the San Francisco – Bay Area and loves to watch and play cricket. He is looking forward to collaborating with you.
Umbrex is pleased to welcome Neil Bansal with Coppertree Partners. Neil is a 20+ year New York based executive and former McKinsey consultant who is passionate about building, scaling and leading businesses across consumer/retail, financial and technology sectors.
He most recently served as Managing Director and Head of Transformation at BNP Paribas in the Americas where he focused on strategy, innovation and digital transformation. Neil recently launched Coppertree Partners as a platform for independent consulting work and thought leadership.
Umbrex is pleased to welcome Alina Khlibyk. Alina spent 2 years as a Consultant at McKinsey & Company, Moscow, primarily focusing on transformation projects in banking, retail and basic materials. Has experience in Agile transformations at banks. Prior to McKinsey graduated as a Master’s in Management from Graduate School of Management in Saint-Petersburg, Russia. As a student striked all Big-3 consulting international events as well as Google: was selected as a participant of McKinsey Next Generation Women Leaders, BCG Aspire, Bainworks, Google Bold Immersion EMEA. Currently, lives in Moscow. Alina is happy to collaborate on projects, especially on Agile topics.
Umbrex is pleased to welcome Aurora Rotes. Aurora Rotes spent 8 years at McKinsey, specialising in strategy and operations for the retail and consumer industries. Aurora moved to corporate, working as Head of Strategy and Transformation for Mango, second apparel retailer in Spain behind Inditex. Later, she dived into the start-up world joining an early start-up specialised on location intelligence applied to retail, and as senior advisor to multiple start-ups in the retail and e-health space.
Aurora is currently based in London, and is happy to engage in professional opportunities, both as independent consultant or interim positions in UK, always related to retail, consumer or e-health.
Umbrex is pleased to welcome Pablo Craievich. Pablo has over 20 years of experience in senior management roles in strategy (McKinsey&Co and ANZ) and in business management, integration and turnaround across a number of industries (e.g. banking, education, retail, telecom and professional services). Throughout his career, Pablo developed strategies to tackle complex industry issues and led businesses going through significant transformation or complex market environments.
Pablo is based in Melbourne, Australia and is happy to collaborate in projects across Australia and Asia-Pacific.
Umbrex is pleased to welcome Brad Sostack. Brad Sostack spent two years in McKinsey’s operations practice and has over 15 years of leadership experience in transformation strategy, operational planning and execution, and change management. Brad served in the United States Navy as an enlisted technician and as an officer specializing in the operations and maintenance of nuclear submarines.
He holds a Masters’ of Business Administration from the University of Florida and Bachelor of Science in Civil Engineering from Oregon State University. Brad lives in St. Petersburg, Florida with his wife, Lana. He is currently an independent consultant where he has worked with clients in retail, manufacturing and aerospace/defense
Umbrex is pleased to welcome Mukesh Jagota with JRCC Partners. Mukesh Jagota spent five years as a Senior Leader in the Consumer and Retail Practice at Strategy& (formerly, Booz & Co.). Mukesh was one of the firm’s key thought leaders in the area of Sales & Marketing. In particular, Mukesh has conducted numerous client projects and research in the areas of in organizational transformation, portfolio strategy, next-generation marketing and innovation capability building, insights & analytics, international strategy, CPG and retail trade effectiveness, digital strategy, and sales force effectiveness. Mukesh also led significant work across the firm’s Deals practice, including helping architect the largest ecommerce acquisition in history.
Prior to his time at Strategy&, Mukesh led a regional specialty retailer, tripling its size within three years, and was a finance professional (e.g., corporate finance consulting, investment banking, private equity). Since 2019, Mukesh has been Managing Partner at JRCC Partners, a boutique strategy consulting firm that counts multiple Fortune 500s as clients. Mukesh would be happy to collaborate on projects across the globe in the Consumer & Retail sectors or that focus on Deal (including due diligence) or Sales & Marketing related work.
Umbrex is pleased to welcome Marla Malluk Gozman. Marla Malluk Gozman spent nearly ten years at Bain & Company in their Boston, London, and New York City offices. Since then, she has been an independent strategy consultant and also spent three years as Sales Strategy Director with Zearn, a nonprofit education technology organization. Marla has expertise in growth strategy and strategic planning, market and competitive analysis, and pricing, as well as advising start-up and nonprofit organizations. She has experience in many sectors, including health care, education, consumer finance, retail, hospitality, and telecommunications. Marla lives in northern New Jersey with her husband and son. She is happy to collaborate on growth strategy and market/competitive analysis projects in the greater New York City area.
Umbrex is pleased to welcome Swan Sit. wan Sit is an independent consultant specializing in digital, marketing and strategy. Having spent the past decade of her career accelerating digital into legacy companies, she held two key roles as a Vice President at Nike — overseeing Global Digital Marketing during the Emmy-winning “Dream Crazy” campaign featuring Colin Kaepernick, and running Digital Operations, Product, Supply Chain and Service for a $2B ecommerce business during the Air Jordan 11 Concord launch, the largest in online history. She led digital at Revlon and Elizabeth Arden, using it to pull them out of a turnaround, and ran online strategy for the Esteé Lauder Companies, increasing its digital footprint to 400+ sites across 50 countries in 5 years. From modernizing hundred-year-old brands and partnering with unexpected influencers like Chelsea Handler, Iris Apfel and Gigi Gorgeous, to launching augmented reality makeovers and driving double-digit growth, Swan has demonstrated both the left- and right-brain skills required for a marketer that drives revenue. She was selected as a Brand Innovators 40 under 40 and Marketing Woman to Watch, and took home both Best Social Campaign and Best in Show at the Glossy Awards. You might recognize her as one of the faces in Twitter’s national “She Inspires Me” campaign during the Oscars, or from judging the world’s largest hackathon in Saudi Arabia alongside Steve Wozniak.
Prior to beauty, Swan was a management consultant at Bain, owned an ad agency focused on emotional branding, was a product manager at Newell (she launched a factory in China during SARS) and created infamous marketing campaigns at Trilogy Software during the dotcom boom. Swan graduated with a BA in Economics from Harvard and an MBA from Columbia.
Swan does speaking engagements around the world on Marketing, Digital Transformation and Leadership in the Digital Age. She is a Board Director of a publicly-traded pharmaceuticals company, advises a variety of businesses and sits on the boards of industry and philanthropic organizations including AdWeek’s Diversity and Inclusion Council, L2 Digital Think Tank, Women in Retail, Consumer Goods Technology Council, Impact Network, Foundation Rwanda and Worldview’s space think tank. Having traveled to 85+ countries, her favorites include Antarctica, North Korea, Mongolia, Rwanda, Bhutan, Myanmar and Tanzania for Kilimanjaro. She can often be found smashing a volleyball and chasing restaurant openings, or flying around on skis and horses – her two newest hobbies.
Umbrex is pleased to welcome George Nahra with GZN Consulting. George spent four years in the Chicago office of McKinsey, in the retail and sales & marketing practices, serving predominantly retailers and other consumer-facing clients.
After leaving McKinsey, he spent several years as a Senior Management Associate at Bridgewater Associates. He then returned to retail, re-joining Abercrombie & Fitch (where he started his career several years earlier) and building the company’s first Strategic Planning function.
He then move to Chico’s FAS, a women’s apparel/accessories retailer with three principal brands: Chico’s, White House I Black Market, and Soma. At Chico’s FAS, George led Strategy, Business Development, and International.
George has been an independent consultant twice – once between working for Abercrombie and Chico’s, and most recently since roughly December 2019. He serves retailers across a wide range of topics.
George lives in Fort Myers, FL, with his wife and dog. He’d be happy to collaborate on any retail projects
Umbrex is pleased to welcome Sai Patil. Sai Patil spent seven years as a strategy consultant at Bain & Co and then three years at Mattel leading strategy and marketing teams. Sai has particular expertise in growth strategy for consumer/retail companies as well as retail promotional strategy and marketing optimization. Prior clients include Fortune 500 companies in beauty, fashion, home decor, coffee, printing, pet food and education. Sai is highly strategic with deep expertise in utilizing consumer and market insight. She lives in Manhattan Beach, California with her husband and 3 elementary age children and new dog, Lucky.
Sai is happy to collaborate on projects involving competitive/market analysis and growth strategy in the U.S.
Umbrex is pleased to welcome Yevgeniy Rikhterman. Yevgeniy Rikhterman spent three years as the Director of Strategy at Herff Jones, a PE owned CPG company. Yevgeniy has experience in creating strategic plans, as well as an evergreen strategic planning processes. Yevgeniy led the strategic planned that helped to maximize the value of Herff Jones during a critical PE transaction.
He also led the corporate development, and M&A aspect, and as such has specific experiences that is applicable to mid-size companies looking to grow through partnerships and acquisitions. In addition, he led multiple product transformations, and is experienced in not only understanding root causes, but also guiding the implementation of the solution. Prior to Herff Jones Yevgeniy spent two years as a consultant at the Boston Consulting Group (BCG), working on a variety of projects in finance, retail, pharmaceuticals, telecom, industrial goods, and aviation.
Yevgeniy lives in New York City, and when not working enjoys travelling around the world, and outdoor activities. He is happy to work projects globally.
Umbrex is pleased to welcome Allyson Pritchett. Allyson spent 4+ years as a Project Leader and Consultant in the Retail / Consumer practice at Boston Consulting Group and recently began independent consulting in 2020. Prior to BCG, she worked in Business Development for Walt Disney Parks & Resorts as well as Corporate Strategy for 7-Eleven and Dean Foods Company.
Allyson has particular expertise in implementing large scale transformations and has lead major transformations in retail, travel & leisure, and financial services. She hails from Alabama and North Carolina, but now lives in New York, New York and is actively involved in her alumni chapter and the New York Junior League. Allyson is happy to collaborate on projects involving business transformation, product launch, and sourcing / procurement in the U.S.
Umbrex is pleased to welcome Liz Kenny. Liz Kenny is a former McKinsey consultant with eight years of independent consulting and freelance experience. She partners with clients to drive sales growth as either a consultant, or a short-term embedded team member. Liz has a strong blend of both consulting and operating experience, and has supported strategic initiatives across a wide range of industries including retail, technology, media and entertainment, and financial services.
Liz balances her time between strategic and creative projects. When she is not working with a client, she is writing screenplays and other content (TV pilots, short films, etc.) Liz is based in Los Angeles with her new puppy, Fozzie Bear. Liz is happy to collaborate on projects in the Western U.S.