The Future of Business Models: Partnering with the Crowd (Seattle Interactive Conference 2014)

Editor's Notes

1. My story (tie it today’s revoluiton and choices) Meet Frederick the 7th. Last month, I visited Denmark And I learned about a Danish King, He saw revolutions sweeping across Europe and many kings were losing their heads He saw the revolution coming to his gilded gates and had an option Fight them and potentially lose his head. or Collaborate with the revolutionaries
2. http://www.economist.com/printedition/covers/2013-03-07/na
3. #sharedfood #food https://www.eatfeastly.com/
4. #productasaservice #carsharing #auto #city Links: http://europe.autonews.com/article/20130530/ANE/130529917/ford-joins-europe-car-sharing-sector-as-demand-surges#axzz2g2cML9TF *great article on a number of carshare companies in Europe http://www.mu.peugeot.co.uk/ http://wardsauto.com/ar/peugeot_mu_rental_091216 http://www.autoevolution.com/news/mu-by-peugeot-pilot-scheme-launched-in-the-uk-22107.html http://www.autoevolution.com/news/peugeot-introduces-mu-mobility-program-iphone-app-18438.html
5. #productasaservice #carsharing #auto #city Links: http://europe.autonews.com/article/20130530/ANE/130529917/ford-joins-europe-car-sharing-sector-as-demand-surges#axzz2g2cML9TF *great article on a number of carshare companies in Europe http://www.mu.peugeot.co.uk/ http://wardsauto.com/ar/peugeot_mu_rental_091216 http://www.autoevolution.com/news/mu-by-peugeot-pilot-scheme-launched-in-the-uk-22107.html http://www.autoevolution.com/news/peugeot-introduces-mu-mobility-program-iphone-app-18438.html
6. #productasaservice #carsharing #auto #city Links: http://europe.autonews.com/article/20130530/ANE/130529917/ford-joins-europe-car-sharing-sector-as-demand-surges#axzz2g2cML9TF *great article on a number of carshare companies in Europe http://www.mu.peugeot.co.uk/ http://wardsauto.com/ar/peugeot_mu_rental_091216 http://www.autoevolution.com/news/mu-by-peugeot-pilot-scheme-launched-in-the-uk-22107.html http://www.autoevolution.com/news/peugeot-introduces-mu-mobility-program-iphone-app-18438.html
7. #productasaservice #carsharing #auto #city Links: http://europe.autonews.com/article/20130530/ANE/130529917/ford-joins-europe-car-sharing-sector-as-demand-surges#axzz2g2cML9TF *great article on a number of carshare companies in Europe http://www.mu.peugeot.co.uk/ http://wardsauto.com/ar/peugeot_mu_rental_091216 http://www.autoevolution.com/news/mu-by-peugeot-pilot-scheme-launched-in-the-uk-22107.html http://www.autoevolution.com/news/peugeot-introduces-mu-mobility-program-iphone-app-18438.html
8. #productasaservice #carsharing #auto #city Links: http://europe.autonews.com/article/20130530/ANE/130529917/ford-joins-europe-car-sharing-sector-as-demand-surges#axzz2g2cML9TF *great article on a number of carshare companies in Europe http://www.mu.peugeot.co.uk/ http://wardsauto.com/ar/peugeot_mu_rental_091216 http://www.autoevolution.com/news/mu-by-peugeot-pilot-scheme-launched-in-the-uk-22107.html http://www.autoevolution.com/news/peugeot-introduces-mu-mobility-program-iphone-app-18438.html
9. #productasaservice #carsharing #auto #city Links: http://europe.autonews.com/article/20130530/ANE/130529917/ford-joins-europe-car-sharing-sector-as-demand-surges#axzz2g2cML9TF *great article on a number of carshare companies in Europe http://www.mu.peugeot.co.uk/ http://wardsauto.com/ar/peugeot_mu_rental_091216 http://www.autoevolution.com/news/mu-by-peugeot-pilot-scheme-launched-in-the-uk-22107.html http://www.autoevolution.com/news/peugeot-introduces-mu-mobility-program-iphone-app-18438.html
10. #productasaservice #carsharing #auto #city Links: http://europe.autonews.com/article/20130530/ANE/130529917/ford-joins-europe-car-sharing-sector-as-demand-surges#axzz2g2cML9TF *great article on a number of carshare companies in Europe http://www.mu.peugeot.co.uk/ http://wardsauto.com/ar/peugeot_mu_rental_091216 http://www.autoevolution.com/news/mu-by-peugeot-pilot-scheme-launched-in-the-uk-22107.html http://www.autoevolution.com/news/peugeot-introduces-mu-mobility-program-iphone-app-18438.html
11. 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 again Here’s some stats 9 cars 270k But also loans Insurance Gas I’m sure some economists could show this could be over a million dollars of ecosystem impact That’s just 1 car What about 100 What about 100million?
12. So how do we deal with a revolution that’s REDUCING REVENUES and IS PICKING UP IN MOMENTUM Remember 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.
13. The key is to convert products into services, services into marketplaces, and marketplaces build products They 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.
14. 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 companies Must change the relationship and offer it a new form through renting, subscribing or event lending –beyond just selling.
15. For companies that have high durable goods, unattainable luxuries, idle invetories, or high consideration purhcaseds, allow them to now be a service For 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
16. 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 TRUST Marriot 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.
17. 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 companies Must change the relationship and offer it a new form through renting, subscribing or event lending –beyond just selling.
18. 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.
19. http://campaigns.ebay.com/patagonia/
20. #sharedfoodprep #food https://munchery.com/ http://www.geekwire.com/2014/meal-delivery-service-munchery-raises-20m-expands-seattle/
21. #bikesharing#peertopeer #city #retail
22. 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 TRUST Marriot 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.
23. 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.
24. 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 mindset It doesn’t exist, but we see parts of it We see many startups already doing this: -Ideation sites like uservoice co-ideate new products -Kickstsarter co-funds new ideas -Quickly co-builds new products But 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.“
25. Image from http://productnation.in/5-key-considerations-for-platform-approach/
26. #collaboration #workspace #hotel #coworking Links: http://www.smartplanet.com/blog/design-architecture/how-marriott-is-designing-a-smarter-business-hotel/8828 http://www.workspring.com/
27. #sharedfoodprep #food https://munchery.com/ http://www.geekwire.com/2014/meal-delivery-service-munchery-raises-20m-expands-seattle/
28. Links: https://www.niceridemn.org/about/
29. 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 TRUST Marriot 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.
30. 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 mindset It doesn’t exist, but we see parts of it We see many startups already doing this: -Ideation sites like uservoice co-ideate new products -Kickstsarter co-funds new ideas -Quickly co-builds new products But 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.“
31. 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 mindset It doesn’t exist, but we see parts of it We see many startups already doing this: -Ideation sites like uservoice co-ideate new products -Kickstsarter co-funds new ideas -Quickly co-builds new products But 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.“
32. 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 mindset It doesn’t exist, but we see parts of it We see many startups already doing this: -Ideation sites like uservoice co-ideate new products -Kickstsarter co-funds new ideas -Quickly co-builds new products But 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.“
33. 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 palace I’m pleased to share, that his lineage is the second oldest monarchy in the world Not 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 kingdom And if you want to collaborate in the economy. , then you must….