The document discusses how collaborative consumption and social media are converging to create shared value through online services. It provides examples of how social media enables collaborative consumption through platforms that allow people to share, barter, lend and rent goods and services. The document also discusses how social media provides insights into purchasing trends and demand that can benefit supply chain management. Finally, it outlines areas for further research around socially sustainable supply networks and the role of online reputation.

1. Collaborative consumption and creating
shared value using online services:
Convergence of Social Media and Supply Chains
Dr Suresh Sood
Email: suresh.sood@uts.edu.au
LinkedIn: sureshsood
Skype: sureshsood
Twitter: soody
Google +: http://gplus.to/soody

2. Service-Dominant Logic
• A logic that views service, rather than goods, as the focus of
economic and social exchange i.e., Service is exchanged for service
• Essential Concepts and Components
– Service: the application of competences for the benefit of another entity
• Service (singular) is a process—distinct from “services”— particular types of goods
– Shifts primary focus to “operant resources” (skills and knowledge) from
“operand resources” (static and tangible)
– See value as always co-created (Market With
i.e. Collaborate with Customers & Partners to Create & Sustain Value)
– Sees goods as appliances for service delivery
– Implies all economies are service economies
• All businesses are service businesses
Vargo, S.L. and R.F. Lusch (2004).
“Evolving to a New Dominant Logic for Marketing, Journal of Marketing 68(January): 1-17 2

3. Collaborative Consumption
bartering
gifting
lending
renting via online services
Sharing
swapping
trading

4. Evil Plans: Having Fun on the Road to World Domination
by
Hugh MacLeod (Kindle Edition - Feb 17, 2011)

5. Purpose Motive
Linux-Apache-Wikipedia
Drive #1: Eat when we’re hungry. Drink when we’re thirsty. Etc.
Drive #2: Respond to rewards and punishments in our environment.
Drive #3: We do things because they’re interesting and because they’re
engaging and because they’re the right things to do and because they
contribute to the world. (!!!)
“Our Third Drive, intrinsic motivation, is the most powerful.”
Drive: The Surprising Truth About What Motivates Us, Daniel Pink, Riverhead 2009
5

7. Direct Value of Social Media in Supply Chain
• Delivery & Collection points => Social Network
• Listen to market conversations via social media and feed forecast demands
• Real time efficient communication within supply chain
• Crowd source excess or underutilised inventory
• Trends in web search query data and social media
– Useful in providing models of real world phenomena
– Social media provides insights purchasing intentionality
• Shift to Service Dominant Logic (Lusch 2011)

8. Busting Business Models via Collaborative Consumption (CollCons)
8

9. 3 Sub Markets of CollCons (Rachel Botsman)
http://www.collaborativeconsumption.com/the-movement/snapshot-of-examples.php
Collaborative Lifestyles
It’s not just physical goods
that can be shared, swapped,
and bartered. People with
similar interests are banding
Product Service Systems
together to share and
exchange less tangible assets
Pay for the benefit of using a such as time, space, skills, and
product without needing to money.
own the product outright.
Disrupting traditional industries
based on models of individual
private ownership. Source:
Redistribution Markets
Redistribute used or pre-owned
goods from where they are not
needed to somewhere or someone
where they are

10. http://meshing.it/companies

11. • platform facilitates carpooling and carsharing
• put passengers in touch with drivers – who are free to put
a price on the rides they offer
• 100,000 passengers find rides through Comuto per month
• traffic has doubled since volcanic eruption in Iceland
11

12. Leading social Platform for Peer-to-Peer Borrowing and Lending

13. Transaction is the Social Conversation

14. Trust

15. Nascent Stream of Research
• Beyond supply chain research using network analysis and dynamic visualisation
• Application beyond physical goods to share and exchange of skills and knowledge
• Shift from existing supply chain to socially sustainable or innovate business model ?
• Importance of trust
• Blending social conversations and transactions
• Effectiveness of social media driven forecasts
• Disposability or Reusability ?
• Transformation of public services e.g. buses

16. Framework for Socially Sustainable Supply (S3) Networks
• Independent Moderating Dependent
Human to Human
Network Community
Sharing
Underutilised Online network
Physical Goods B2B and B2C
Collaborative
Rules Consumption
Excess Inventory Traceability
Physical Goods Virtual logistics
Conversations Pay for Use
Trust
• Crowdsourcing
Oxytocin • Forecast
• ATP Social Capital
Skills and
• Surprises
Knowledge
Collaboration
Sustainability/Green
Transaction Cost

17. Where to next ?
Source: Botsman (2012) Welcome to the new reputation economy
Wired magazine 20 August 2012

18. Digital trustworthiness ?
The Aggregation of online reputation
Quora  Demonstrates expertise to recruiters
Stack Overflow  Future job
Airbnb  Trusted renter WhipCar
Ebay feedback  Etsy
Social influence  Credit
Source: Botsman (2012) Welcome to the new reputation economy, Wired magazine 20 August 2012

19. Bank 2.0
CRED (credibility) =
( credit score, eBay rating, P2P money transfers,
Facebook friends, LinkedIn connections, Klout,
referrals, bill payments)
Source: Botsman (2012) Welcome to the new reputation economy, Wired magazine 20 August 2012

20. Reputation transfer between verticals
“Paypals of trust”
Briiefly
Confido
Connect.Me
Kred
Legit
Reputate # social influence Klout
Scaffold PeerIndex
Tru.ly
TrustCloud
TrustRank
WhyTrusted
Source: Botsman (2012) Welcome to the new reputation economy, Wired magazine 20 August 2012

21. 10 Step reputation capital
1. Maven
2. Tagging
3. Super “something”
4. Portfolio of online value
5. Trusted opinions – LinkedIn
6. Deep social network
7. Review and recommend
8. Profile monetisation ( IMVU , Linden, Fbook credits)
9. Reputation cleanup (Reputation.com or Veribo)
10. Social capital
Source: Botsman (2012) Welcome to the new reputation economy, Wired magazine 20 August 2012

22. How much is reputation capital worth?
Good reputation activates reward related brain areas (striatum)
The merged image (fMRI) of
two images of the striatum
activated by monetary
(green) and social (purple)
rewards
Sources: Botsman (2012) Welcome to the new reputation economy, Wired magazine 20 August 2012
Neuron, Vol 58, 284-294, 24 April 2008
Processing of Social and Monetary Rewards in the Human Striatum
Keise Izuma,Daisuke N. Saito,and Norihiro Sadato
http://www.neuron.org/content/article/abstract?uid=PIIS0896627308002663