Keynote: The Collaborative Economy with Jeremiah Owyang

Editor's Notes

1. 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
2. My story (tie it today’s revoluiton and choices)Meet Frederick the 7th.Last month, I visited DenmarkAnd I learned about a Danish King, He saw revolutions sweeping across Europe and many kings were losing their headsHe saw the revolution coming to his gilded gates and had an optionFight them and potentially lose his head.orCollaborate with the revolutionaries
3. http://www.economist.com/printedition/covers/2013-03-07/na
4. But what about corporations?.
5. 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
6. 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.
7. Sharing is not new, parents have taught us how.
8. JKO to tell a story of how we’re going on a business trip.I’m taking a person’s car, instead of using a taxi corporationThis will be in first person narrative to connect with audience. (this is why person is same)
9. We need a place to stay, I stay at Airbnb –rather than Marriott
10. The business meetings went so well, I was able to get funding without the banks.But I use LendingClub to get money from peers –rather than using HSBC
11. Rather than hire through traditional workforce solutionsI use odessk to find workers ready to go –rather than Manpower.
12. Rather than hire through traditional workforce solutionsI use odessk to find workers ready to go –rather than Manpower.
13. I find office space from other startups that have extra space –rather than work with a tranditional property manager.In these examples (and we have a bigger list), which span many industries and b2b and b2c, we can see how this movement impacted many parts of society.
14. We need a place to stay, I stay at Airbnb –rather than Marriott
15. 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?
16. 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.
17. 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
18. 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
19. 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.
20. 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
21. 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.
22. 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…
23. 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.
24. 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.
25. 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
26. http://www.mu.peugeot.co.uk/discover-mu-by-peugeot/
27. 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.
28. 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.
29. http://campaigns.ebay.com/patagonia/
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 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.“
31. Image from http://productnation.in/5-key-considerations-for-platform-approach/
32. 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
33. 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.
34. You must let go of your company to gain the market
35. So what are the benefits?
36. The goal is to activate the market around you, and these circles represent all the transactions that the brand can now extract value from.Our cursory look at the startups show that they often take 20-25% of every transaction, the opportunity here is for the company to add new value –but to also extract value, perhaps 25% from each of these new market transactions! Now to get all this –you’ve got to make a leap. To let go of products, services, and your brand.
37. 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….
38. You must let go of your company to gain the market
39. What side of history --will you be on.
40. Do a big 
41. Appendix