Magnet 360 and 3M - Becoming A Customer Company

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This is the deck that was presented by Jeremiah Owyang to 3M, in conjunction with Magnet 360, on July 18th, 2013.

This is the deck that was presented by Jeremiah Owyang to 3M, in conjunction with Magnet 360, on July 18th, 2013.

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  • We have a passion for working with our clients to help them engage with with their audiences to provide meaningful and measurable outcomes.That is the basis for our Mantra: Engagement for Outcomes.Provide a relevant story here based on what you know about the customer you’re meeting with and their audience(s).
  • We have threeuniques that enable our Mantra. If you only remember three things about Magnet 360, remember these three things:We help our clients with Marketing Strategy for B2B and B2C EngagementThrough our Deep Technical Expertise, we map that Strategy to the salesforce.com platform Last, we Drive Competitive Advantage for our Clients Through Iterative DeliveryAny ONE of these items in itself is not unique. But the combination of the three sets us apart in the marketplace. (Can you think of anyone that can do these three things? - OR - I can’t think of anyone else that can do these three things.)I’m going to spend a few moments giving you a high-level overview of our 3 uniques.
  • Our last unique focuses on helping our clients gain competitive advantage and value as fast as possible.One of the great benefits of the Salesforce platform is it allows us to do things quickly. SHORT STORY: Our unique of “Iterative Process for Business Value” means we can work in short sprints/iterations to drive significant value in each iteration.Unlike an Accenture that can’t get started without of truck load of consultants, we have a lean team that quickly can drive great value to the business.Our promises:Magnet 360 leverages Native Functionality wherever possibleBecause the platform is in the cloud it allows us to get value fastThese two facts lead to a lower risk of entryDETAILED VERSION: Today we are in the discovery phase of our process, learning about your goals, giving an overview of our capabilities, and determining if there is an opportunity to engage.Based on that opportunity we would create a statement of work that usually outlines: Objectives, Process, Timeline, Resources and Budget. The type of opportunity depends on how much work you have done. We work with clients on helping them with a roadmap or reviewing requirements. Based on what we heard today, I could see us engaging in a _____________ in either Relationship Management, Branded Sites, apps or Communities, Marketing Automation, or Social Campaign Management. Based on our collaboration step, we would prioritize value and then start to iterate. We would implement, learn and evolve. These iterations typically work in two week increments.
  • Sharing “who we are” is more than giving you a bulleted list of “what we do”. What you see here represents the people of Magnet 360, who deliver every day on our promises, put our clients front and center, and keep our culture strong. We have ____ employees, with offices in Minneapolis and New York. We’ve recently been named Minnesota’s fastest-growing business, and will soon be opening offices in several more markets, including Chicago, San Francisco….etc.We have a Rockin culture, committed to fostering entrepreneurship in Minnesota (MN Cup), giving back to local charities (CFC), and being a best place to work (BPTW, Magnetics).For me….(this is what it means to be part of the team) <MAKE IT YOUR OWN>
  • http://www.economist.com/printedition/covers/2013-03-07/na
  • But what about corporations?.
  • We’ve all heard how the collaborative economy startups and people are succeeding in the sharing economy.But we posed a question: What role do large companies play if their relationship has been disrupted?After interviewing experts corporations and startups that are here todayIn fact for those of you are here,the report is on your chair, or those following online can find it from my Twitter profileI’m excited to share with you today, we found a way for eeryone to win together:“An economic model of shared ownesrhip and access beteen corps, startups, and people”The Collaborative Economy
  • But we found out in this research was intriguing, that in order for companies to be succeed in the collaborative economy,They actually had to let go ,in order to gain more.
  • Sharing is not new, parents have taught us how.
  • But what’s the impact?It’s quite severe. It means that customers can buy once –and share many times among each other –reducing the need to buy againHere’s some stats9 cars270kBut also loansInsuranceGasI’m sure some economists could show this could be over a million dollars of ecosystem impactThat’s just 1 carWhat about 100What about 100million?
  • To get to the bottom of this, In our interviews, we asked just that.we found that there were over 13 individual elements which are easily grouped into three major factors.
  • People are more social –whther they’re saddled by debt, a younger generation, or just realizing that owning products isn’t as efficient.As a result, there’s a movement towards conscious consumers to get what they need beyond owning it.It means that: Access is more important than ownership>Photo credit required to: Thomas La MelaShutterstock.com
  • In my life, population start at about 4billion, and when Im’ an old man, it’ll be around 9 billionAs population doubles in my life, earth’s resources stay fixed. It means every pound, euro or dollar counts.SO when people DO buy, they want it to count. They want this product to sustain. It means that:” it pays to buy quality, esp when we can re-use or resell to others”Source is UN: world-crises.net
  • Lastly, we’ve found that technology enablement has spurred this movement on, with mobile devices, smart phones, payment systems and also social media.We looked closely at 30 of the top discussed sharing startups and found that 54% of them had facebook connect, and 74% had social profiles and reputation features, showing how closely tied to the social networking movement.It means this movement is bolstered by the technology and social media –which is growing faster than ever.
  • The startups aren’t going awayOut of 200 they’ve been funded 200b --not to mention the 60m from LyftIt means on average, those you were funded received 28mIn culmination of these societal, economic and technology drivers that this young movement isn’t going to dissipate soon, and in fact will only pick up in momentumData: Altimeter Data
  • So how do we deal with a revolution that’s REDUCING REVENUES and IS PICKING UP IN MOMENTUMRemember Frederick? He had a choice: Either fight the revolution with his guards, or collaborate with the revolutionaries on his own terms.He chose to leave his gilded gates, and offered to work with them to build a people’s government, and draft up a new constitution.
  • Now back to our revolution, the sharing revolution.What can companies do when they’ve lost power to the crowd?The good news is, there’s a solution…
  • The key is to convert products into services, services into marketplaces, and marketplaces build productsThey start off simple, but as we progress around the value chain, the investment and risk increases, but as well as the potential payoff. Let me walk through each one in detail and show you how.
  • First, let’s focus on products becoming services. We call this “Company as a service”Now that customers want access to products –and may not necessarily want to own them, it means that companiesMust change the relationship and offer it a new form through renting, subscribing or event lending –beyond just selling.
  • For companies that have high durable goods, unattainable luxuries, idle invetories, or high consideration purhcaseds, allow them to now be a serviceFor example Toyota and BMW now rent cars from their dealership in SF bay area. To get ahead of changing consumer needs, Toyota and BMW are now services.Acknowledgment required by Shutterstock for the Toyota image: Kosarev Alexander - Shutterstock.com
  • http://www.mu.peugeot.co.uk/discover-mu-by-peugeot/
  • Next, let’s talk about shifting services to now becoming marketplaces.We call this ‘Motivating a marketplace”. The naming is specific, you can’t own the marketplace, you can’t manage it, you simply must help usher them along, in this use case, the goal is to get the people to do these actions among themselves.If your company offers services, like a hospitality company serves guests, then learn how to tap into the marketplaces that are already forming in the sharing economy.There’s a number of new activities that people can perform, including to resell, co-owning, swapping goods, lending to each other, or gifting.
  • An example: Right now, people are bypassing hotels to stay at unique experiences using websites like Airbnb.Rather than stand by the wayside, we discovered a new market opportunity for Loic’s guest room to be certified as Marriott certified. A large brand brings TRUSTMarriot would then funnel trusted guests, perhaps from a loyalty program, and even offer maid, food, or concierge services.Everyone wins: Loic gets a trusted guest, the guest gets a local experience at a certified home, and Marriot gets a cut of the transactions –that they wouldn’t have missed out on completely.
  • http://campaigns.ebay.com/patagonia/
  • In this third phase. Companies who have marketplaces, must activate them to build their future products.We call this “provide a platform”And it means that companies must empower their crowds to build future products and services.This is the hardest level –but yields the most benefits.Lots of of “co” words that are part of the collaboration mindsetIt doesn’t exist, but we see parts of itWe see many startups already doing this:-Ideation sites like uservoice co-ideate new products-Kickstsarter co-funds new ideas-Quickly co-builds new productsBut imagine if this was extended to co distribution, co marketing, co selling, and even co revenue sharing?In this case, it may be Hard to tell the diference between employees and customers as new products are built from the crowd.But the costs of buidling are leveraged by the crowd, reducing the costs of the company In this radical state, the non essential parts of the company reduce, and perhaps the most important remaining parts are the brand, and perhaps an ecommerce engine.In this future state: “The CROWD BECOMES THE COMPANY.“
  • Image from http://productnation.in/5-key-considerations-for-platform-approach/
  • While we’ve seen examples of software companies allowing for developers to build on top of their platforms, we can also examine this physical bike that was built from an open communityThis bike the Chrisitana bike was designed by crowd efforts in Freetown, Copenhagen, an anarchist community that set their own rules who didn’t allow cars, so they built their own product, this transport bike that’s now sold around the world.This example illustrates how a crowd was able to come together for a single problem to solve and take a product to market around a common brand, their anarchist city, Christiana.http://www.christianiabikes.com/english/uk_main.htm
  • To complete this cycle, those newly created crowd products flow back into the process, starting over again.This means that the startups who participate in this, will have an advantage over those that don’t.Savvy companies will do one.But superior companies will do all.
  • You must let go of your company to gain the market
  • So what are the benefits?
  • So what happened to fred who met the revolutionaries at the gate?Fred is a hero, he saved bloodshed, gave them people what they wanted –yet stayed in the palaceI’m pleased to share, that his lineage is the second oldest monarchy in the worldNot only is denmark the second happiest country in the world, He’s revered as a national icon, and his family is taken care of by the nation, and they’re still in the palace. Fred let go of his throne -- to gain the kingdomAnd if you want to collaborate in the economy. , then you must….
  • You must let go of your company to gain the market
  • What side of history --will you be on.
  • Do a big 
  • Appendix

Transcript

  • 1. WITH JEREMIAH OWYANG
  • 2. OUR MANTRA
  • 3. DEEP EXPERTISE
  • 4. I T E R AT I V E D E L I V E RY
  • 5. WHO WE ARE /// CLIENT TRUST EARNED EVERYDAY /// CONSTANT EVOLUTION /// RESPONDING WITH URGENCY /// COLLABORATION /// SHARED OWNERSHIP /// ROCKIN MINNEAPOLIS | NY 95+ EMPLOYEES
  • 6. @jowyang
  • 7. Eras of the Internet
  • 8. What role do corporations play if people don’t need them?
  • 9. The Collaborative Economy An economic model where ownership and access are shared between people, startups, and corporations.
  • 10. The only way, is to let go to gain more.
  • 11. Is this a business disruption?
  • 12. Sharing Is Not New
  • 13. Lyft enables crowd to be transportation – avoiding taxis
  • 14. AirBnb Enables Crowd to be a Hotel
  • 15. LendingClub enables crowd to be a bank
  • 16. oDesk enables crowd to be a workforce
  • 17. Feastly enables your neighbors kitchens to be a restaurant
  • 18. Liquidspace enables companies to rent from each other
  • 19. Yerdle leverages Facebook connect to build a trusted network to share products
  • 20. StokeBox enables collections to be shared for $5.
  • 21. Giftflow enables neighbors
  • 22. NextDoor helps neighbors get what they need.
  • 23. A properly shared car is $270,000 Lost Revenue of auto sales (1 shared car = 9 cars at average of $30k each) 24
  • 24. Is this a passing fad?
  • 25. Societal Factors 75% said they predicted sharing of physical objects and spaces will increase in next 5 years –Shareable Magazine Study
  • 26. Population Economic Factors 1975: 4 Billion 2050: 9 Billion
  • 27. Technology Factors • 87 phones per 100 people on planet • Three quarters of startups use social tech like Facebook
  • 28. A movement that’s only increasing Out of 200 collaborative economy startups, total funding was over $2 billion Of those funded, the average was $29 million (May 2013, Lyft raised $60m)
  • 29. The sharing revolution is an unstoppable movement
  • 30. Collaborated with the Revolutionaries
  • 31. What can you do?
  • 32. Collaborative Economy: Value Chain
  • 33. Collaborative Economy: Value Chain
  • 34. 1. Company as a Service
  • 35. Toyota as a Service
  • 36. Razors as a service
  • 37. Beauty as a service
  • 38. Luxury Handbags as a Service
  • 39. Mobility as a Service
  • 40. Company as a Service Insights • Companies must offer goods products available on-demand. • Rather than sell a product once –sell it 100 times • To do this, focus on rental, subscriptions, and memberships
  • 41. Collaborative Economy: Value Chain
  • 42. 2. Motivate a Market
  • 43. UK retailer M&S fosters Swhoping
  • 44. Patagonia enabling second market and altruism
  • 45. Motivate a Marketplace Insights • Companies must enable customers to resell, swap, gift –not hamper it. • Foster a new experience: peer to peer relationships. • Extract value from these new relationships, value added services, or take a cut from transactions.
  • 46. Collaborative Economy: Value Chain
  • 47. 3: Provide a Platform
  • 48. Co-Fund new products like Kickstarter
  • 49. Co-Design products like Nike
  • 50. Co-Develop like Quirky
  • 51. Co-Customize Like Etsy
  • 52. Co-Production with 3D Printers
  • 53. Co-Storage of Products with Lockitron
  • 54. Co-Deliver with Deliv
  • 55. The Crowd Built a Car: Design, Funding, Production, Assembly, Wikispeed project enabled the crowd to build a 100mpg car
  • 56. Provide a Platform Insights • Reduce your operating expenses and risk as the crowd gets involved –and generates new value • The highest form of loyalty is co- ownership, as they champion your brand • As the crowd becomes the company, could the evolution of a corporation just retain an ecommerce system and a logo?
  • 57. Collaborative Economy: Value Chain
  • 58. What will challenge us as we move forward?
  • 59. Opposing Market Forces Abound 1. Governments, lobbyists, and institutions oppose 2. Buyers and sellers lack complete trust 3. Fragmented startups in every category 4. Uncertainty about which startups will stand the test of time
  • 60. What are your benefits for letting go to the collaborative economy?
  • 61. More efficient, as the crowd helps you 1 2 A long-term relationship with your vested customers 3 New value created between people, means new revenues 4 If you act now, you will have first mover advantage
  • 62. Let go of your company to gain the market.
  • 63. What side of history will you be on?
  • 64. Download Report: http://bit.ly/collabeco Jeremiah Owyang Partner and Industry Analyst Altimeter Group @jowyang web-strategist.com jeremiah@altimetergroup.com
  • 65. Collaborative Economy Glossary Collaborative Economy (Model): An Economic model where ownership and access is shared between people, startups, and corporations. Two sided Marketplace (Category): An online website where buyers and sellers of goods or services are sharing inventory, need, and transacting. Example: Ebay, Craigslist, AirBnb, 99 dresses. Transactions (Verbs): There are many types of verbs that can be used in facilitation including: Buy, Sell, Swap, Lend, Gift, Co-own, co-fund , buy and more. Maker Movement (Trend): An emerging trend where customers can self-design, create, produce, and distribute products and goods on their own. Company as a Service (Strategy): Rather than sell goods in the traditional sense, offer products or services to customers on- demand or through a subscription model. Rent, Subscribe, or Gift. Motivate a Marketplace (Strategy): A community around a brand enabling customers and partners to resell or co-purchase products, swap goods related to the brand, or even enable lending or gifting for no monetary exchange. Provide a Platform (Strategy): Corporations that enable an ecosystem customers to build products and new services as partners — not just consumers. Online Reputation (Feature): Any number of online features that store historical and current information about social profiles, individuals network connections, credibility, or reviews of previous and predictable behavior. Social Sign On (Feature): A technology feature that connects websites with profile systems from social networks like Facebook, LinkedIn or Twitter connect enabling existing reputation, social contacts, and social graph information
  • 66. Credits: Research Interviews Airbnb, Molly Turner, Public Policy Arbor Advisors, Dean Callas, Investment Banker Ariba, An SAP Company, Joseph Fox, VP of Strategy August Capital, David Hornik, Investor Bazaarvoice, Stephen Collins, CEO carpooling .com, Markus Barnikel, CEO Cisco, Carlos Dominguez, SVP, Office of the COB and CEO ConnectMe 360, Brian Hayashi, Founder Decide.com, Shauna Causey, VP, Marketing Enterprise Holdings, Ryan Johnson, WeCar AVPeToro, Yoni Assia, CEO and Founder eToro, Nadav Avidan, PR and Communications Manager eToro, Adi Yagil, Head of Social Media Gazelle, Israel Ganot, CEO HomeExchange, Ed Kushins, Founder Jive Software, Christopher Morace, Chief Strategy Officer LiquidSpace, Mark Gilbreath, CEO/Founder/Skipper Lithium, Rob Tarkoff, President and CEO Lyft, Kristin Sverchek, General Counsel MuckerLab, William Hsu, Co- Founder, Partner Sasson Capital, Vivian Wang, Venture Capitalist oDesk, Gary Swart, CEO oDesk, Shoshana Deutschkron, Director, Communications OuiShare, Antonin Léonard, Co-Founder Oversee.net, Gene Chuang, CTO PivotDesk, Alex Newman, Director, Customer Development Sass.me and Oversee.net, Min Chan, GM of Mobile SCOTTEVEST, Scott Jordan, CEO and Founder Shareable Magazine, Neal Gorenflo, Founder Shasta Ventures, Rob Coneybeer, Managing Director Collaborative Lab, April Rinne, Chief Strategy Officer Collaborative Lab, Lauren Anderson, Chief Knowledge Officer The Mesh, Lisa Gansky, Author, The Mesh: Why the Future of Business is Sharing Zuora, Tien Tzuo, CEO Zuora, Brian Bell, CMO Deborah Schultz, Innovation Strategist
  • 67. The following people provided guidance, reviewed content, tested ideas, or most importantly, challenged the thesis during the project: David Armano, David Berkowitz, Richard Binhammer, Mel Blake, Erik Boles, Michael Brito, Noelle Chun, Steve Farnsworth, Lyle Fong, Ian Greenleigh, Shel Holtz, Noah Karesh, Kevin Kelley, Matt Krebsbach, Wendy Lea, Evelyn Lee, Geoff Livingston, Jacob Miller, Marcus Nelson, Ben Parr, Jeff Richards, Andy Ruben, Jim Rudden, Ben Smith, Aaron Strout, Carmen Taran, Rob Tarkoff, Ed Van Siclen, Mike Walsh, Sharon Weinbar, Adam Werbach, Susan Williams, Vladimir Mirkovic, Anita Wong, and the entire Altimeter Group research and consulting team. We extend special appreciation to LeWeb founder Loic Le Meur who inspired Altimeter Group to research this topic. Credits: Research Input