The document discusses the concept of the "Open Economy" and how businesses are adapting to this new environment. Some key points: - Social media has shown that people are willing to engage with brands and participate in innovation. This has led to new platforms for open innovation using crowdsourcing. - Few companies know how to scale experimentation with open models into full business transformation. As big firms struggle with legacy issues, the market is becoming more open, connected and social. - Open data, open innovation at scale, open capital/crowdfunding, and networked human capital are strands of the Open Economy that companies must understand to succeed. - Becoming an "Open Business" through structured use

1. The Open Economy
90:10 Group: Your Open Business Partner

2. Introduction
The Open Economy & Open Business
• Social media has shown people are willing to engage with brands;
share, discuss, create and offer ideas
• It has given birth to new platforms dedicated to opening innovation
to the crowd
• Most believe this can deliver value across the whole organisation
from marketing to product and service innovation
• But few know how to move beyond experimentation to scale into
business transformation
• As big firms struggle to overcome their legacy issues market forces
become more open, connected, and social
• This means big disruptions and challenges to them and their
agencies
• We call this environment The Open Economy and our framework
for response to it is Open Business.
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3. The Open Data Movement
Data is expected to be shared and open
Companies such as Facebook
are valued on the data of its
users – who trade it in return
for utility
API: The idea of
organisations making
their data easily
accessible to outsource
and derisk innovation or
offer for public good
Hacktivism at its roots is about
exposing hidden truths; be that
how poorly companies protect
your data or the secret
dealings of super powers and
shady corporations.
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4. Open Capital
The democratisation of capital means increased competition
• There are more than 450 crowd-funding platforms around the world
• With 5 white-label crowd-funding platforms introduced this year
• To date $1.5 billion dollars has funded more than 1 million projects
• 55% in Europe, 44% in the US and 1% in other regions
• The average crowd-funding project takes 10 weeks from beginning-to-end
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5. Open Innovation Scaled
Co-creation is being applied across all business innovation gates
Open Innovation has existed since the 1960s, a term
promoted by Henry Chesbrough, but with the recent
advent of affordable and widely used collaborative
technologies, it can be applied at scale.
There are now hundreds of co-creation and idea
crowd-sourcing platforms and case-studies across
almost every sector from FMCG to Automotive. With
brands like Proctor & Gamble driving 60% of all
innovation from partnerships outside their
organisation.

6. Networked Human Capital
An increasingly virtual workforce crowd-sources solutions
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7. The Open Economy
The new market reality
The Open Economy
Open
Open Data Open Innovation Open Capital
Organisation
Movement Scaled (Crowdfunding)
(Crowdsourcing)
Powered by: Social Media + Internet Culture of Openness x People
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8. Untangling the buzzwords
Open Business is structured use of the strands of Open Economics
Crowd-sourcing Open Data Crowd-funding Co-Creation
Netnography
Open Business
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9. Market Forces are now; Connected, Open & Lean
Becoming an Open Business is not optional just a matter of time
Tomorrow’s Customers Activists
Competition
Barrier to entry Almost every Organisations like
for competition purchase cycle Greanpeace see
has never been now involves a themselves as a
lower. Crowd- Google Search or platform for their
funding and Community advocates to lead
white-label API Reach-out in both change. Activist
tech dominate. B2B and B2C attacks have
increased YOY.
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10. Open Business
For communication, product & service innovation
• We think of social media as a door to
the outside world.
• A door to; listen, ask, connect and
create with people outside both
partners, customers and experts.
• All for the purpose of competitive
advantage in marketing, service and
product innovation.
• Over the last 3 years we have
developed a frame-work to deliver
open business at an Enterprise level
for blue-chip companies

11. Open Business Opportunities
to become a better more profitable business
• Customer satisfaction increase of 20-30% achieved at
20% the cost
• Resulting in an increase of 31% in customer retention
• 27% increase in existing customer sales
• 31% increase in brand advocates (each worth 5 x the
average customer)
• 34% increase in feedback & ideas from customers
• 34% increase in brand awareness
• 27% increase in new customer sales
• 31% increase in ideas generated within the company
• Net profit per employee rose by 53%
• Overall sales-to-assets increase of 66%
Sources: Cohort-Study on Social Innovation – TNO Work & Employment 2008-09
P&G Connect & Develop Program – Harvard Business review June 2011
Social Business Software Survey (Jive Funded) 2010
BT Care Interview 90:10 Group Jamie Burke

12. Closed businesses can’t compete
Open equals a better fit with the networked world
• Many of the success stories of the 21st Century are built on
multiple Open Business Principles. Google, Apple and Amazon are
among the more famous.
• According to IBM’s CEO survey in May 2012, companies that
outperform their sector are 30% more likely to identify ‘Openness’
as a key factor in their success with particular benefits for
collaboration and innovation.
• Businesses starting today build on the Principles of Open Business
from the word go. They do so because the principles are self-
evident to those growing up in a networked world.
• They know they are simply the most effective way of taking greatest
advantage of the world as it exists today.
• This places them at significant competitive advantage over those
who are not seeking to apply the principles for legacy or other
reasons.
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13. Challenges of the Open Economy
Issues for today’s corporations to address to survive
Corporate Declining & Exponential Data
Glocal Needs
Citizenship Migrating Trust Sets
The combination of It is no longer acceptable to Trust in large media More and more data is
Globalisation in an internet just make a donation to companies and brands is in available for companies to
age requires multinationals charity or speak of good decline. It is migrating to mine - and make sense of.
to be consistent globally but intentions through your CSR peers but in a complex and From big data, to real-time
reflect local cultural department. Our ever shifting way. The days and behavioural data from
nuances in a real-time way. connectedness means you of control advertising or mobile, social and other
This challenges traditional can’t just say, you have to clever PR are over. new sources. The desire to
organisational structures do. If you want to be part of simplify the complexity is
and requires a breaking the online community you increasingly difficult to
down of silos and market are expected to actively resist. But this reductionism
divisions. participate in the world risks destroying the true
around you as a good citizen value.
Community
People / System Influence Insight
Culture
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14. Minimum demanded in an Open Economy
New entrants are emerging with these attributes as their default
1. Transparency
2. Openness
3. Connectedness
4. Purpose
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