What is a Prosumer?

A Prosumer is a portmanteau of the words producer and consumer. The word was first coined by Alvin Toffler. Alvin Toffler is a futurist and a writer of many books, most notably ‘Future Shock’, ‘The Third Wave’, and ‘Revolutionary Wealth’. In his works, Toffler describes a ‘First Wave’ of society as a usurping of the hunting and gathering society with the agrarian revolution. In the ‘Second Wave’, the agrarian society was pushed aside by the Industrial Revolution. Toffler proposes that we are in the midst of a ‘Third Wave’, a post-industrial society that has the ‘prosumer’ as a central tenet to his thesis. Mass production is being replaced by mass customization. For further context on Alvin Toffler, please watch these videos: Alvin Toffler interviewed by Newt Gingrich, Alvin Toffler interviewed by Canadian pollster and media pundit Allan Gregg, and an episode of the television program ‘Big Thinkers’ that featured Alvin Toffler.

Toffler’s idea of the ‘prosumer’ involves the consumer performing some part of the role of the producer. He calls it the consumer’s ‘Third Job’. The consumer’s ‘First Job’ is the work that he performs to earn a living. His ‘Second Job’ is the work that is related to maintaining the home, like grocery shopping, laundry, fixing the roof, etc… His ‘Third Job’ is activities that the producer paid employees to do that the consumer now does. An example that Toffler frequently uses is the ATM machine. By using a bank machine to complete many bank transactions that would have previously been done by bank tellers, Toffler estimates that hundreds of thousands of bank tellers in the United States are no longer employed at banks. Self service gas stations, instead of full service ones, is another example. Bagging your own groceries is, also,  another example. Toffler makes a point that the ‘prosumer’ is providing unpaid work to the benefit of the producer.

Dr. David Chaffey‘s definition of ‘prosumer’ ‘indicates that the customer is closely involved in specifying their requirements in a product’. His definition enhances Toffler’s idea of the ‘prosumer’ to include the consumer providing input into the creativity in the development of the producer’s products. This idea is more than calling your favourite radio station and recommending a song or putting a note in a company’s suggestion box. With the advent of the internet and the advancements of technology today, consumers are able to interact with producers and influence the development of products. Instead of calling your local radio station and hoping the disc jockey will play your song, you can go to a website like last.fm or spotify and have your music tailored to you. Amazon and ebay are doing the best they can to anticipate your needs based on your prior purchases and items you previously viewed. They customize their website to provide you with the products you want.

Toffler does not know how or when this ‘Third Wave’ will end or what society will look like when we are there, but he does suggest that the pace of change is ever increasing and many institutions are not changing fast enough, like government,  education and health care. The ‘prosumer’ knows the power it has and knows what it wants. The producers that are able to capitalize on these wants are the ones that will survive. The ones that will not adapt, will not survive.


Canada’s NSA! Should We Be Concerned?

With the world following every detail about Edward Snowden and his revelations about the NSA, do Canadians need to be worried about our version of the NSA?

Canada’s version of the NSA is the Communications Security Establishment Canada (CSEC), which was established in 1946 and is now under the control of the Department of National Defense. The CSEC’s three-part mandate is ‘to acquire and use information from the global information infrastructure for the purpose of providing foreign intelligence’, ‘to provide advice, guidance and services to help ensure the protection of electronic information and of information infrastructures of importance to the Government of Canada’ and ‘to provide technical and operational assistance to federal law enforcement and security agencies in the performance of their lawful duties.’ The CSEC has a budget around $422 million and a staff of about 2000 people. ‘The Communications Security Establishment (CSE) Commissioner provides independent review of CSEC’s activities to ensure compliance with the law and the protection of privacy of Canadians.

The CSEC asserts that it does not spy on Canadians. The CSEC released a statement , in reference to the Annual Report submitted to the Canadian Parliament by the CSE Commissioner, defending itself from current media scrutiny by pointing out that the Commissioner found no evidence that the CSEC acted outside the law or its mandate.

So, what has been the media scrutiny?

A CBC article focuses on the collection and analysis of ‘metadata’ by the CSEC. Metadata is, loosely, data of data. So, since the CSEC is not technically breaking the law by not actually looking at the specifics of the data, could it be breaking the spirit of the law as metadata can reveal a substantial amount of useful information?

The Globe and Mail, who broke the story on the CSEC, further criticizes the use of ‘metadata’ and reveals that Defence Minister, Peter MacKay, approved the reinstatement of surveillance of global telephone and internet data in 2011

The National Post points out that the Annual Report from the CSE Commissioner does not exonerate the CSEC from illegal activities because the report indicated that some illegal acts by the CSEC ‘may’ have been perpetrated.

Global News reports that the CSEC was the genesis behind the ability for national security agencies to enter a back door into encrypted information. In an accompanying interview, Dr. Michael Geist, law professor at the University of Ottawa, is convinced the CSEC is an ‘active participant and partner’ with other national security agencies, like the NSA.

So, should we be concerned?

I definitely think we should. There are too many questions around what data is actually being collected, who is collecting it, and for what purpose? These questions need to be clarified by the Canadian Government in a transparent and thorough manner, so we, the Canadian people, can feel confident that the spirit of the law is being adhered to and that the rights of individuals are being protected.