This document discusses the rise of the collaborative economy and how companies must adapt. It outlines three eras: 1) a few could publish online, 2) anyone could publish using social tools, and 3) people now share products using social tools, reducing the need to buy from companies. It argues companies should embrace the collaborative economy by becoming services, motivating marketplaces, and providing platforms for crowds to build products. By activating idle resources and enabling sharing, the collaborative economy presents opportunities for new business models and revenues if companies embrace change rather than resist disruption.
Pre Engineered Building Manufacturers Hyderabad.pptx
Story Board: The Collaborative Economy for Corporations (Official Slideshare Version)
1. Jeremiah Owyang
What Companies Must Do When
Customers Share –Rather Than Buy
The Official SlideShare on the Collaborative Economy
Jeremiah Owyang
Industry Analyst
11. Jeremiah Owyang
The Third Era: Using same social tools
people share products
Source: Altimeter Group, the Collaborative Economy Report, 2013
12. Jeremiah Owyang
Using these social
sharing sites, I can easily
get products and services
I can get goods at no
cost from friends. I
don’t need to shop
at companies.
16. Jeremiah Owyang
Ownership and access is shared
between corporations, startups and
people. The Collaborative Economy.
An Opportunity: A New Economic Model
17. Jeremiah Owyang
The only way,
is to let go
to gain more.
For companies to succeed in the
collaborative economy
36. Jeremiah Owyang
The impact of sharing can be quite severe
Customers can buy once –and share
many times amongst each other
–reducing the need to buy again.
37. Jeremiah Owyang
A properly shared car is…
$270,000
Lost Revenue
of Auto Sales
(1 shared car = 9 cars at
average of $30k each.)
39. Jeremiah Owyang
Societal factors: Access is more
important than ownership
• Younger generation, or saddled by debt, are
realizing access to goods is better than
owning them.
• Population density and many global cultures
are accustomed to sharing.
• It means, people don’t need to buy and own
things to get what they need.
40. Jeremiah Owyang
Economic factors: Activate idle
resources
• As population
grows, earth’s
resources stay
fixed.
• It means that: “it
pays to buy
quality,
especially when
we can re-use or
resell to others.”
41. Jeremiah Owyang
Technology enables easy sharing globally
and locally
• 87 phones per 100
people on planet
• Three quarters of
startups use social
tech like Facebook
42. Jeremiah Owyang
Venture Investors fuel this movement –
these startups won’t go away in near time.
Out of 200 collaborative
economy startups, total
funding was over $2 billion
Of those funded, the average
was $28 million
(May 2013, Lyft raised $60m)
45. Jeremiah Owyang
Collaborative Economy: Value Chain
The key is to change the
way we think:
• Products become services
• Services become
marketplaces
• Marketplaces build your
products
46. Jeremiah Owyang
1) Company as a Service
• Products become services
• Customers want access to
products, but may not want
to own them
• Companies must change
the relationship and offer
• Renting
• subscribing
• or event lending.
48. Jeremiah Owyang
Reality: Toyota and BMW rent cars,
as a service
• For companies that have high
durable goods, unattainable
luxuries, idle inventories, or
high consideration purchases,
allow them to now be a
service.
• 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.
51. Jeremiah Owyang
2) Motivate a Markeplace
• Shift services to become a
marketplace
• Motivating a marketplace 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.
52. Jeremiah Owyang
Shifting services to become a marketplace
• 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 are a number of new
activities that people can
perform, including resell,
co-own, swap goods, lend to
each other, or gifting.
53. Jeremiah Owyang
Motivate a Market
• People are bypassing hotels
to stay at unique
experiences, using websites
like Airbnb.
• Example: Rather than stand
by the wayside, Lewis
discovered a new market
opportunity for his guest
room to be certified as
Marriott certified.
• A large brand brings
TRUST.
54. Jeremiah Owyang
Motivate a Market
• Marriot would then funnel
trusted guests, perhaps
from a loyalty program, and
even offer maid, food, or
concierge services.
• Everyone wins: Lewis gets
a trusted guest, the guest
gets a local experience at a
certified home, and Marriot
gets a cut of the
transactions –that they
would have missed out on
completely.
57. Jeremiah Owyang
3) Collaborative Economy: Value Chain
• In this third phase,
companies who have
marketplaces, must activate
them to build their future
products.
• We call this “provide a
platform.” It means that
companies must empower
their crowds to build future
products and services.
59. Jeremiah Owyang
Collaboration
Many startups are already
collaborating with users:
-Ideation sites like
UserVoice co-ideate
new products
-Kickststarter co-funds
new ideas
-Quickly co-builds new
products
60. Jeremiah Owyang
Imagine if collaboration was extended to:
• Co Funding
• Co Ideation
• Co Creation
• Co Distribution
• Co Marketing
• Co Selling
• Co Revenue
68. Jeremiah Owyang
A crowd built a car: Wikispeed
Community led project that:
Is crowd co-funded, co-
designed, and co-built a
working 100MPG car.
The crowd designs
components, 3D prints
them, and mails them to
central location for
assembly.
Car is being sold at $25K
per auto.
69. Jeremiah Owyang
Collaboration
It may be hard to tell the
difference between
employees and customers
as new products are built
from the crowd.
But the costs of building
are leveraged by the
crowd, reducing the costs
of the company.
70. Jeremiah Owyang
Radical –but Efficient: The Crowd
Becomes the Company
In this future state, the crowd will efficiently fulfill
nearly all corporate functions.
The only thing remaining,could be ecommerce
software and a logo!
71. Jeremiah Owyang
Collaborative Economy: Value Chain
• The advanced company
will deploy all three
strategies.
• Startups that partner
with corporations have
opportunities that others
don’t.
73. Jeremiah Owyang
Opposing Market Forces Abound
1. Corporate mindset wants to
hold onto control –and
revenue models
2. Many governments,
lobbyists, and institutions
oppose
3. Fragmented startup scene
creates confusion
4. Excess of startups creates
uncertainty on which will last
75. Jeremiah Owyang
More efficient, as the crowd
helps you
1
2 A long-term relationship
with your vested customers
3 New value created between
people, means new revenues
4 If you act now, you will have
first mover advantage
Benefits to letting go
76. Jeremiah Owyang
Collaborative Goal: Activate the market
around you
Opportunity – Harness
new business
transactions that you
were missing out on.
Take 20% cut from every
market transaction.
Sell new value-added
services.
77. Jeremiah Owyang
To gain this new economy
and market, you must leap
across, leaving behind old
business models