Jeremiah OwYang   @SocialShakeUp  Sept 17 2014   - notes by @MeiLinFung

Jeremy Owyang – The Collaborative Economy

#SocialShakeUp  Atlanta Sept 17 2014

This work is licensed by a Creative Commons LIcense Attribution (version 3.0)

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H2H – we are participating in the Human-to-Human collaborative Economy

King of Denmark – Frederick – the crowd revolution in Europe was toppling the monarchies of Europe. He had a choice to fight or collaborate.

“The Sharing Economy” – on the Internet, everything is for hire – THE ECONOMIST Cover Story

How to Make Stuff – the DIY Revolution starts now – WIRED

Phases of Internet Sharing

  1. Internet Era – access media cheaply
  2. Social media Age – share media cheaply
  3. Collaborative Economy Age – Sharing what we have in the physical world

This is the next phase of your social business career

What role do corporations play if people get what they need from each other?

CE = an economic model where the creation ownership and access are shared between people and corporations

Launched Crowd Companies – for large corporations in this space – Coke, Home Depot, Whole Foods, Polycom, Wal-Mart etc – 42 members - Slide 7

Is this a business disruption?

Collaborative Economy Honeycomb Version 1.0

Very robust – resilient

No wasted space

Empowered people are in the center of the honeycomb

6 Verticals

  1. Goods  - Yerdle enables neighbors to gift goods – rather than buy – Andy Rubin is founder, former chief strategy officer of Wal-Mart, Pleygo: Rent Lego sets. 9000 startups here. Techshop empowers the Maker Movement where people build instead of buy. Machines, classes, community – Square came out of TechShop, Foldable Kayak too.
  2. Food – feastly – home kitchens are becoming restaurants – make new friends
  3. Services – Instacart – P2P delivery – deliver within 1 hour’s notice. Helparound – the diabetes safety net P2P support for diabetic community. oDesk and eLance just merged – tap the crowd for business workers
  4. Transportation – sidecar, boatbound – H2H boat sharing – boats are used 17 days of the year. Uber – largest investor is Google $258M – largest investment by Google ventures – its not about cars, Uber is a threat to Amazon – on demand drivers for delivery for Google Express
  5. Space – Airbnb – also have FB Connect – have expanded to in-house dining
  6. Money – Crypto currencies – over 200 crowd currencies; Kickstarter for P2P investing – the crowd beat Apple to market ‘Pebble” raised over $12M for ewatch. Lending Club – biggest investor is Google, founded in 2008 has facilitated $5B in loans from 2007-6/30/2014

This is the collaborative economy – adding education, utilities, and healthcare – H2H social commerce

“Sharing is the new buying” – Adoption rates are doubling

A properly shared car is $270k in lost revenue to car manufacturers alone (gas, tolls etc – 1 car could have $1M impact)– because cars are used 5% of the time 1 shared car = 9 cars at $30k

What’s causing this?

Crowd ratings and trust

Access rather than own – thru mobile

Internet of things

Mobile devices everywhere

VC funding - $2.7 B funded since 1/1/2014 – for sharing

Match.com for everything

King Frederick of Denmark – he went outside of the palace gates – he ratified the constitution to give power to the people – a multi-tiered system

How can brands “Shakeup” their business models and become resilient

Collaborative Economy Value chain

3 business model options

  1. Products
  1. Services
  1. Marketplace

Brand as a service – e.g. Netflix, Salesforce – now BMW as a service “Drive Now” for $90 membership fee – book car – drive and leave

Trunk Club just bought by Nordstrom – sends clothes to men on demand – “clothes as a service”

Home Depot as a service – renting trucks, tools, cleaning equipment – partnered with Uber - #UberTree  “Christmas Trees on demand in Manhattan”

New service models are emerging

Predict – access over ownership – a new business model emerges where we don’t own goods Lisa Gansky author of “The Mesh”

Marketplace Model – private branded online economy

Wal-Mart enables game exchange – reducing waste – customers who bring in used video games can receive store credit

Patagonia enables marketplace for refashioning products “Don’t buy our jacket” – get it used in the eBay market called “common threads’ Together we can reduce our environmental impact

Gap partners with Divvy Bike Sharing for a shared workforce – Join Take Ride Return – bikers and holiday season jobs

Prediction – a progressive Hotel will franchise the crowd, taking Airbnb head on – and pilfer the top Airbnb hosts – and provide guaranteed level of service (sheets, cleaning)- Franchising

Enable a Platform

U Haul enables the crowd to fund truck, share in winnings and foster “shared Destiny” – you can invest in U Haul’s investor club – Tap the crowd for better rates and terms that a company can set and achieve the highest form of loyalty – crowd funding is the HIGHEST FORM OF LOYALTY  - its Shared Destiny

Hasbro enables customer to 3D print product on demand via Shapeways – worked with the Makers

Whole Foods co-delivers with Instacart – extending home delivery within an hour – extending the brand promise – home delivery with Whole Foods quality

Cokes WONOLO – work now locally – shares with customers who become employees  - retail customers can now stock shelves for coke displays and get paid while at it. Customers = Employees – turns own customers into partners

Barclays offers Barclaycard Ring – a credit card designed and built by community crowdsourcing – you design it, set the rates, own it - they back office it Barclays provides back office

In the future we can’t tell the difference between customers and employees

Collaborative Economy Value Chain

B2P – sell 1 good a thousand times and offer value added services

P2P – enable reselling of used good and services, scaling new value

B+P – tap crowd for innovation with shared ideas, resources and rewards

Slides are public on Slide share:

http://www.slideshare.net/jeremiah_owyang/what-the-collaborative-economy-means-for-the-business-of-the-future-socialshakeup

5 takeaways

  1. People are empowered to get what they need from each other
  2. The crowd is becoming like a company- bypassing inefficient corps
  3. Like social corporations must use same strategies to be relevant
  4. Requires business model change
  5. Become profitable – and become efficient through information and crowdsourcing

Back to King Frederick – now Denmark is the happiest country – he gave up the right to rule unquestioned, partnered with the people, and gained a kingdom

Give up your business models, gain the market

Which side of history will you be on?

Q: Denise Holt – regulations shift?

A: Each country and each city is responding differently

California ride sharing is legalized

SF – Airbnb pays 14% hotel tax – new health regulations

Augie – promise of Collaborative economy – will HAVES and Have not’s collide?

This is capitalism – there is new feudalism emerging BUT heavily funded startups tip the balance “Freelancers Union” and “Peers.org”

Q: People Links – eBay – there are people there for the commerce and those there for the community 99-cent widgets – is it commerce? Is it community?

A: Data: why do people participate? Efficiency and Value, Unique experiences, connecting to others, sustainability – for scaling –, which will propagate further

Airbnb founders heavily studied Disney – they were designers – they are training hosts to offer the experience in their homes

Q: What is the role of Brand in social media?

A: Corporate Logos went from “cease and desist” to Please share OUR logo

Build products with the company

Ford gave Uber drivers $3000 to buy cars – it's a brand new sales station – 40 test rides a day – Ford gave their brand to get more customers

Q: Dan Gigiss – Security?

A: 4 phases for security

  1. Background check – vetting
  2. Ratings and reviews –
  3. FB connect and Twitter connect – are they real people
  4. Smart insurance – Lloyds of London – now offering policies