Collabeconomy4slideshare 130727084143-phpapp02


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Collabeconomy4slideshare 130727084143-phpapp02

  1. 1. The Official SlideShare on the Collaborative Economy What Companies Must Do When Customers Share –Rather Than Buy Jeremiah Owyang Industry Analyst Jeremiah Owyang
  2. 2. Why is the crowd becoming more powerful than companies? Jeremiah Owyang
  3. 3. How much will it hurt when the crowd doesn’t need to buy from companies? Jeremiah Owyang
  4. 4. What should a company do to respond and stay profitable? Jeremiah Owyang
  5. 5. Why embrace a Collaborative Economy? Jeremiah Owyang
  6. 6. Let’s look at the past to see where we’re going Jeremiah Owyang
  7. 7. The First Era: A few people could publish on the internet Source: Altimeter Group, the Collaborative Economy Report, 2013 Jeremiah Owyang
  8. 8. Few of us can publish, I talk, and you listen. Jeremiah Owyang
  9. 9. The Second Era: Anyone can publish using social tools Source: Altimeter Group, the Collaborative Economy Report, 2013 Jeremiah Owyang
  10. 10. Hmmm. I’ve lost media power. We can speak our minds, and hear trusted opinions. Jeremiah Owyang
  11. 11. The Third Era: Usingsame social tools people share products Source: Altimeter Group, the Collaborative Economy Report, 2013 Jeremiah Owyang
  12. 12. Using these social sharing sites, I can easily get products and services I can getgoods at no cost from friends. I don’t need to shop at companies. Jeremiah Owyang
  13. 13. What role do corporations play if people don’t need them? They stole my cheese. *Sniffle* Jeremiah Owyang
  14. 14. The first instinct is for companies to fight it Jeremiah Owyang
  15. 15. But they don’t have to fight –they can join Jeremiah Owyang
  16. 16. An Opportunity: A New Economic Model Ownership and access is shared between corporations, startups and people. The Collaborative Economy. Jeremiah Owyang
  17. 17. For companies to succeed in the collaborative economy The only way, is to let go to gainmore. Jeremiah Owyang
  18. 18. Question: Is this a business disruption? Jeremiah Owyang
  19. 19. Sharing is not new, our Moms taught us to do it! Jeremiah Owyang
  20. 20. But now, people can use technology to do it at a scale without boundaries Jeremiah Owyang
  21. 21. Imagine you’re going on a business trip And you can tap the crowd to get what you need—without buying from companies Jeremiah Owyang
  22. 22. Transportation Use another person’s car –instead of a taxi corporation. Jeremiah Owyang
  23. 23. Lyft enables crowd to be transportation –avoiding taxis Jeremiah Owyang
  24. 24. Hospitality …use AirBnb and stay at someone’s house –rather than a hotel. Jeremiah Owyang
  25. 25. AirBnb enables crowd to be a hotel Jeremiah Owyang
  26. 26. Funding …use peer lending websites to borrow money from the crowd –rather than go to a bank. Jeremiah Owyang
  27. 27. LendingClub enables crowd to be a bank Jeremiah Owyang
  28. 28. Staffing …hire people from the crowd –rather than working with traditional staffing agencies or HR. Jeremiah Owyang
  29. 29. oDesk enables crowd to be a workforce Jeremiah Owyang
  30. 30. Facilities …rent office space from other companies that have extra space–rather than work with a traditional property manager. Jeremiah Owyang
  31. 31. LiquidSpace enables companies to rent from each other Jeremiah Owyang
  32. 32. Food and beverage …enjoy a home cooked meal from someone’s home kitchen—rather than eat at a restaurant. Jeremiah Owyang
  33. 33. Feastly enables your neighbors’ kitchens to be a restaurant Jeremiah Owyang
  34. 34. Goods and products …get goods and products from the crowd at no cost for our office and home –rather than buying at a store. Jeremiah Owyang
  35. 35. Yerdle enables neighbors to gift goods –rather than buy Jeremiah Owyang
  36. 36. The impact of sharing can be quite severe Customers can buy once –and share many times amongst each other –reducing the need to buy again. Jeremiah Owyang
  37. 37. A properly shared car is… $270,000 Lost Revenue of Auto Sales (1 shared car = 9 cars at average of $30k each.) Jeremiah Owyang
  38. 38. What’s causing this? Three major factors. Jeremiah Owyang
  39. 39. Societal factors: Access is more important than ownership • Younger generation, or saddled by debt, are realizing access to goods is better than owning them. • Population density and many global cultures are accustomed to sharing. • It means, people don’t need to buy and own things to get what they need. Jeremiah Owyang
  40. 40. Economic factors: Activate idle resources • As population grows, earth’s resources stay fixed. • It means that: ―it pays to buy quality, especially when we can re-use or resell to others.‖ Jeremiah Owyang
  41. 41. Technology enables easy sharing globally and locally • 87 phones per 100 people on planet • Three quarters of startups use social tech like Facebook Jeremiah Owyang
  42. 42. Venture Investors fuel this movement – these startups won’t go away in near time. Out of 200 collaborative economy startups, total funding was over $2 billion Of those funded, the average was $28 million (May 2013, Lyft raised $60m) Jeremiah Owyang
  43. 43. The sharing revolution is an unstoppable movement* *Caveat: The only way to stop this movement, is to stop the internet. Jeremiah Owyang
  44. 44. What can companies do when they’ve lost power to the crowd? There is a solution Jeremiah Owyang
  45. 45. Collaborative Economy: Value Chain The key is to change the way we think: • Products become services • Services become marketplaces • Marketplaces build your products Jeremiah Owyang
  46. 46. 1) Company as a Service • Products become services • Customers want access to products, but may not want to own them • Companies must change the relationship and offer • Renting • subscribing • or event lending. Jeremiah Owyang
  47. 47. Company as a service isn’t new! Jeremiah Owyang
  48. 48. Reality: Toyota and BMW rent cars, as a service • For companies that have high durable goods, unattainable luxuries, idle inventories, or high consideration purchases, allow them to now be a service. • 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. Jeremiah Owyang
  49. 49. Dollar Shave Club offers razors as a service Jeremiah Owyang
  50. 50. Peugeot offers Mobility as a service –even renting vans, cars, buses, and bikes Jeremiah Owyang
  51. 51. 2) Motivate a Markeplace • Shift services to become a marketplace • Motivating a marketplace 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. Jeremiah Owyang
  52. 52. Shifting services to become a marketplace • 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 are a number of new activities that people can perform, including resell, co-own, swap goods, lend to each other, or gifting. Jeremiah Owyang
  53. 53. Motivate a Market • People are bypassing hotels to stay at unique experiences, using websites like Airbnb. • Example: Rather than stand by the wayside, Lewis discovered a new market opportunity for his guest room to be certified as Marriott certified. • A large brand brings TRUST. Jeremiah Owyang
  54. 54. Motivate a Market • Marriot would then funnel trusted guests, perhaps from a loyalty program, and even offer maid, food, or concierge services. • Everyone wins: Lewis gets a trusted guest, the guest gets a local experience at a certified home, and Marriot gets a cut of the transactions –that they would have missed out on completely. Jeremiah Owyang
  55. 55. ScotteVest enables second market Jeremiah Owyang
  56. 56. Patagonia enables second market and altruism Jeremiah Owyang
  57. 57. 3) Collaborative Economy: Value Chain • In this third phase, companies who have marketplaces, must activate them to build their future products. • We call this ―provide a platform.‖It means that companies must empower their crowds to build future products and services. Jeremiah Owyang
  58. 58. Provide a Platform This is the hardest level –but yields the most benefits. Jeremiah Owyang
  59. 59. Collaboration Many startups are already collaborating with users: -Ideation sites like UserVoice co-ideate new products -Kickststarter co-funds new ideas -Quickly co-builds new products Jeremiah Owyang
  60. 60. Imagine if collaboration was extended to: • Co Funding • Co Ideation • Co Creation • Co Distribution • Co Marketing • Co Selling • Co Revenue Jeremiah Owyang
  61. 61. Co-Fund new products like Kickstarter Jeremiah Owyang
  62. 62. Co-Design products like Nike Jeremiah Owyang
  63. 63. Co-Develop like Quirkly Jeremiah Owyang
  64. 64. Co-Customize like Etsy Jeremiah Owyang
  65. 65. Co-Produce with 3D Printers Jeremiah Owyang
  66. 66. Co-Storage of Products with Lockitron Jeremiah Owyang
  67. 67. Co-Deliver with Deliv Jeremiah Owyang
  68. 68. A crowd built a car: Wikispeed Community led project that: Is crowd co-funded, codesigned, and co-built a working 100MPG car. The crowd designs components, 3D prints them, and mails them to central location for assembly. Car is being sold at $25K per auto. Jeremiah Owyang
  69. 69. Collaboration It may be hard to tell the difference between employees and customers as new products are built from the crowd. But the costs of building are leveraged by the crowd, reducing the costs of the company. Jeremiah Owyang
  70. 70. Radical –but Efficient: The Crowd Becomes the Company In this future state, the crowd will efficiently fulfill nearly all corporate functions. The only thing remaining,could be ecommerce software and a logo! Jeremiah Owyang
  71. 71. Collaborative Economy: Value Chain • The advanced company will deploy all three strategies. • Startups that partner with corporations have opportunities that others don’t. Jeremiah Owyang
  72. 72. What will challengeus as we move forward? Jeremiah Owyang
  73. 73. Opposing Market Forces Abound 1. Corporate mindset wants to hold onto control –and revenue models 2. Many governments, lobbyists, and institutions oppose 3. Fragmented startup scene creates confusion 4. Excess of startups creates uncertainty on which will last Jeremiah Owyang
  74. 74. What are your benefits for letting go to the collaborative economy? Jeremiah Owyang
  75. 75. Benefits to letting go 1 More efficient, as the crowd helps you 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 Jeremiah Owyang
  76. 76. Collaborative Goal: Activate the market around you Opportunity – Harness new business transactions that you were missing out on. Take 20% cut from every market transaction. Sell new value-added services. Jeremiah Owyang
  77. 77. To gain this new economy and market, you must leap across, leaving behind old business models Jeremiah Owyang
  78. 78. The Collaborative Economy Jeremiah Owyang Industry Analyst @jowyang Jeremiah Owyang
  79. 79. Re-imagine Your presentations 925-406-0921