1.
March 2016
www.hhs.se

2.
Halloween in Nashville, 1974

3.
The future is already here,
it’s just not very evenly
distributed.
- William Gibson

4.
Thx to R. Wieselfors, Ericsson for photos

5.
Thx to R. Wieselfors, Ericsson for photos

6.
2015

7.
• What technologies are used?
• What assumptions are broken?
https://www.youtube.com/watch?v=y-rEI4bezWc

8.
People
• “Net generation”
• 24x7 “mobile” workforce
• Knowledge via MOOCs
• Sharing not owning
• Sustainability
• Work but not employed
Technology
• Broadband
• Smart phones
• The cloud
• Internet of Things
• Big Data
• 3D printing
• Robotics/AI
• VR/AR
• Holography
Open Source IP
• Software
• Hardware
• Physibles
Convergence of…..
Finance
• Microlending/microfinance
• Crowdfunding/equity/P2P
• Cryptocurrencies
• Blockchain
• Mobile money/payments
• M2M payments

9.
History tends to repeat itself….
Innovation, financial crisis, industrial revolution, …
Steam
engine
Internal
combustion
engine
Internet
Microelectronics
Late 18th C Late 19th C Late 20th C
Schön 2008
Third
industrial
revolution?

10.
Uber
• Launched June 2010
• >330 cities in 60 countries
• Limited physical assets
• > USD 60 bln valuation
(Ericsson – USD 30 bln)
“Doing more with less” through a global
platform

11.
From 60 years in 1960 to 16 in 2010

12.
Increasing pace of change
 From 2000 to 2010
− 40% Fortune 500 list replaced
 Predictions
− In next few years, 70% Fortune 1000 to be
replaced
− By 2020, >75% of S&P 500 do not exist today
− By 2025, >45% of Fortune 500 to be from
emerging markets
Fast Company, McKinsey & Inc

13.
USD 45 bln

14.
Amazon + 3rd-party vendors
> Wal-Mart in 2016?

15.
Doing more with less

16.
A system that activates the untapped
value of all kinds of assets through models
and marketplaces that enable greater
efficiency and access.
- Botsman
The Sharing Economy
Harvard Business Review, 2014
The Sharing Economy: Embracing Change with Caution
http://www.slideshare.net/eteigland/sharing-economy-webb

17.
Examples and well-known actors
in the Sharing Economy
Asset Examples Actors Swedish Actors
Tangible
Transportation
Property
Food
Uber
BlaBlaCar
Didi Kuaidi
AirBnB
Skjutsgruppen
SunFleet
Hoffice
Intangible:
Financial
Crowdfunding
P2P lending
Kickstarter
Indiegogo
LendingClub
Prosper
GoFundMe
FundedByMe
Crowdcube
ToBorrow
Intangible:
Services
Professional
Personal
Innocentive
Mechanical Turk
Upwork
TaskRabbit
eWork
Vint
TaskRunner

18.
The Sharing Economy is enabled through
peer-to-peer (P2P) transactions on
multi-sided platforms (MSPs)
http://sloanreview.mit.edu/article/strategic-decisions-for-multisided-platforms/

19.
LEARNING
p2p learning open courses & moocs
PRODUCTION
co-design / co-innovationdigital peer production distributed fabrication (makers)
FINANCE
p2p funding p2p payments p2p insurance compl. currencies
GOVERNANCE
SWARM
participatory organizations participatory government blockchain / DAO
CONSUMPTION
redistribution local food systemsproduct-service on-demand services
COLLABORATIVE ECONOMY FRAMEWORK V0.1

20.
“Sharing” is big business…
http://www.web-strategist.com/blog/2015/06/04/the-collaborative-sharing-economy-has-created-17-billion-dollar-companies-and-
10-unicorns/
USD 26 bln today -> USD 335 bln in 2025

21.
In-house initiatives

22.
Increasing efforts to regulate the sharing economy

23.
If Uber were to pay drivers as employees in USA.

24.
Spawning a new form of capitalism -
Modern day sweatshops?
Digital Robber Barons?
“Monopoly” platform “Monopoly” platform
“Perfect
competition”
“Perfect
competition”

25.
Jobs vs Gigs

26.
LEARNING
p2p learning open courses & moocs
PRODUCTION
co-design / co-innovationdigital peer production distributed fabrication (makers)
FINANCE
p2p funding p2p payments p2p insurance compl. currencies
GOVERNANCE
SWARM
participatory organizations participatory government blockchain / DAO
CONSUMPTION
redistribution local food systemsproduct-service on-demand services
COLLABORATIVE ECONOMY FRAMEWORK V0.1

27.
Banking is essential,
but banks are not.
Bill Gates
The emergence of FinTech

28.
Local Stockholm success story:
Flippin’ Burgers
Money raised:
SEK 36,502 /
€4,000
Number of
investors: 186
Date funded:
September 2011
Sector: Food

29.
Enabling local, small-scale solutions
http://travel.cnn.com/best-americana-restaurants-europe-023346

30.
Four forms of crowdfunding
Form Benefits for funders
Donation-
based
Donation Intangible benefits.
Reward-
based
Donation or pre-
purchase
Rewards in addition to
intangible benefits.
Equity-based Investment
Return on investment if
company does well. Rewards
sometimes also offered and
intangible benefits may motivate
too.
Loan-based Loan
Repayment of loan with
interest. Alternatively intangible
benefits if loan given interest-

31.
Toborrow.se

32.
zopa

33.
Crowdfunding growth 2012-2015
USD 34 bln E

34.
But in China alone in 2015…
http://www.crowdfundinsider.com/2016/01/79612-report-china-p2p-lending-topped-150-billion-in-2015/

35.
Democratizing innovation
through access to capital?

36.
“Made in Africa” 3D printer (Togo)
Winner of International
Space Apps Challenge
http://www.engineering.com/3DPrinting/3DPrintingArticles/ArticleID/5712/E-Waste-3D-Printer-to-Mars.aspx

37.
What is FinTech?
Accenture/CB Insights
Technologies for banking and corporate finance,
capital markets, financial data analytics,
payments, and personal financial management
Finance TechnologyFinTech

38.
A recent survey of milennials

39.
>USD14
2015E

40.
Profits from non-mortgage retail lending, e.g., credit
cards, car loans, could be reduced by 60% and revenues
by 40% over next decade.

41.
Launching in beta
https://www.getdreams.com/en

42.
Encouraging financial inclusion

43.
Bitcoin – An emergent phenomenon
• Open source project on SourceForge in Jan 2009
• Original source code by “Satoshi Nakamoto” – pseudonym?
• Developed by self-organizing community of thousands of
strangers across globe
• Approx USD 6.3 bln market cap and approx 180,000 daily
transactions volume 1 BTC = USD 413 (March 8, 2016)
Teigland, Yetis, Larsson 2013 http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2263707
Within 6 years:
Challenging the
fiat money
system?

44.
Bitcoin – one of 100s of cryptocurrencies
https://coinmarketcap.com/

45.
What is a cryptocurrency?
 Digital
 Decentralized, peer-to-peer (P2P), i.e., no central,
third party
 Uses cryptography to validate/secure transactions
 Also uses cryptography to generate currency itself
 Non-technical explanation of Bitcoin
− https://www.youtube.com/watch?v=t5JGQXCTe3c

46.
How does Bitcoin work?
Screenclip from: How Bitcoin Works under the hood, by “Curious Inventor”
Block chain
• Shared public ledger
• All transactions ever
made logged
• Chronology and
integrity enforced by
cryptography

47.
Betting on the Blockchain - Together
Goldman Sachs, JPMorgan,
Credit Suisse, Barclays,
Commonwealth Bank of
Australia,
State Street, RBS, BBVA, UBS,
Nordea, SEB, + ……
+

48.
Enablers of a “true” Collaborative Economy?
Blockchains
Collaborative
Economy
IoT/sensors
P2P/M2M
micropayments
Big data

49.
LEARNING
p2p learning open courses & moocs
PRODUCTION
co-design / co-innovationdigital peer production distributed fabrication (makers)
FINANCE
p2p funding p2p payments p2p insurance compl. currencies
GOVERNANCE
SWARM
participatory organizations participatory government blockchain / DAO
CONSUMPTION
redistribution local food systemsproduct-service on-demand services
COLLABORATIVE ECONOMY FRAMEWORK V0.1

50.
The automotive industry
Disruptions ......the likes of which the
industry hasn’t seen since the
automated assembly line.
http://asmarterplanet.com/blog/2015/01/auto-industry-innovation.html

51.
59

52.
https://www.cbinsights.com/blog/startups-drive-auto-industry-disruption/

53.
New technologies enable new entrants

54.
As do new forms of financing…crowd equity

55.
No one knows everything,
everyone knows something,
all knowledge resides in humanity.networks.
Adapted from Lévy 1997Image: Krebs

56.
“Local Motors is the place for people to create
influential vehicles together.”
http://communities-dominate.blogs.com/brands/2015/02/local-motors-and-the-radical-redesign-of-business.html
• 100xs less capital cost
• 5xs faster production

57.
Local Motors to print 3D cars
in its micro-factories

58.
Microfactories – Local and Mobile
Integrating offline and online communities

59.
Community platform
Hierarchicalfirm
VS
E.g., Ford
~ Created by employees within
organizational boundaries
E.g., Local Motors
~ Created by community collaborators
regardless of affiliation
Teigland, Di Gangi, & Yetis 2012
The Flipped Firm: New model of value creation?

60.
Darja Isaksson, Ziggy
Automated, fossil free, service-based

61.
The Sharing Economy:
How many cars do we need?

62.
Increasing number of substitutes

63.
New forms of “face to face” meetings

64.
How does Bitcoin work?
Screenclip from: How Bitcoin Works under the hood, by “Curious Inventor”
Block chain
• Shared public ledger
• All transactions ever
made logged
• Chronology and
integrity enforced by
cryptography

65.
Betting on the Blockchain - Together
Goldman Sachs, JPMorgan,
Credit Suisse, Barclays,
Commonwealth Bank of
Australia,
State Street, RBS, BBVA, UBS,
Nordea, SEB, + ……
+

66.
Groupwork
 Prepare max 8 min ppt presentation answering the
questions in Notes in your groups:
1. Sharing Economy
2. Internet of Things
3. 3D Printing
4. Crowdfunding
5. Crowdsourcing
 Some search tips
− Company homepages blogs
− www.wikipedia.org www.slideshare.net
− www.youtube.com www.instagram
− www.linkedin.com www.facebook.com
− www.twitter.com

67.
If the rate of change on the
outside (of an organization)
exceeds the rate of change on
the inside, the end is near....
-Jack Welch

68.
From factories ….

69.
...to offices…

70.
…to server halls and …

71.
….. robots and
MX3D to 3D print steel bridge

72.
.… “Third Places” and co-working spaces
US: 40% of workforce freelancers

73.
Hoffice – a Swedish concept gone global

74.
Jobs that did not exist 10 years ago
 iOS/Android developer
 Social media manager
 UI/UX designer
 Big data architect
 Cloud services specialist
 Digital marketing specialist
 Sustainability expert
 Zumba instructor
 Beach body coach
 Drone pilot and photographer
http://talent.linkedin.com/blog/index.php/2014/01/top-10-job-titles-that-didnt-exist-5-years-ago-infographic

75.
Increasing forces
for local community

76.
Scheveningen Harbor – The Hague

77.
A 3D printer workshop on Lisette’s boat
RepRap community
E-commerce

78.
My first attempt at 3D printing – successful!

79.
Microfactories and local networks of 3D printers

80.
Enabling circular economies
• Printers printing themselves
• Recycling local garbage into filament

81.
DIY Growing

82.
Turning 3D printing into a business…
http://openfabpdx.com/fffiddle/

83.
Developing circular economies
Local demands?
Local materials?
Reduced transport?

84.
What’s around the corner?
24x7 Global Internet Collaboration + Open Source + 3D Printing
http://mashable.com/2013/02/13/robohand/
$60,000
$150
Available for free
download on
$45
Where is
the firm?
$5

85.
Thomas Jefferson (1816)
“Laws and institutions must go hand in hand
with the progress of the human mind.”
The problem is that the human mind itself
can’t keep pace with the advances that
computers are enabling.
http://wadhwa.com/2014/04/15/mit-technology-review-laws-and-ethics-cant-keep-pace-with-technology/

86.
The challenge of ensuring trust
Leap of faith when
meeting strangers ->
Increased trust in
society?
Innovation is forward
looking while
regulations are
backward looking.
http://www.weforum.org/sessions/summary/rise-demand-economy

87.
Some questions…
• What basic assumptions will no longer hold,
e.g., economies of scale, third party
verification?
• How will trust be enabled?
• How will new forms of value creation be
regulated?
• Why does the firm exist?

88.
Exploitation
Improving existing
value creation
activities
Exploration
Developing new
value creation
activities
Adapted from March 1991

89.
http://www.slideshare.net/eteigland

90.
Robin Teigland
robin.teigland@hhs.se
www.slideshare.net/eteigland
www.funnovation.se
@robin.teigland
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