Business model disruption and the next phase of the web

How Companies are Leading the Collaborative Economy

By Jeremiah Owyang @jowyangSept, 2014

Also including: Clorox, MasterCard, Samsung, SAP, Toshiba, Sears, and Disney

CROWD COMPANIES MEMBERS (42)

Launched Dec 2013

Agenda:

1) The Collaborative Economy movement

2) Exercise: Why is it happening?

3) The new business models

4) Build your own business plan

The Collaborative Economy

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Collaborative Economy Terms

• Collaborative Economy: The overall economic

movement where people get what they need from each

other.

• Crowdfunding: A process where people fund new projects

in exchange for perks or equity.

• Maker Movement: A process where people build their

own goods –rather than buying from traditional stores.

• Sharing Economy: People share what they already have –

rather than buy.

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Collaborative Economy Terms

• On Demand Service: Easy to use apps and websites

deliver goods and services within a push of a button

• Access over ownership: On demand models that enable

goods and services to emerge rather than purchasing.

• Activate Idle Resources: A tenant that cars, drills, and

homes are often not used –now we can quickly use on

demand via mobile and social technologies.

• Marketplaces (Two-sided): Software platform that

enables the tractions of providers and partakers. (hosts and

guests, drivers and riders).

Phases of Internet Sharing


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From Altimeter Research: The Collaborative Economy, 2013, Jeremiah Owyang

What role do corporations playif people get what they need

from each other?

The Collaborative EconomyAn economic model where creation, ownership, and access are shared between people and corporations.

Is this a business disruption?

Yerdle enables neighbors to gift goods - rather than buy

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Pleygo means renting Lego sets –rather than owning

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Techshop empowers the Maker Movement –people build instead of buy

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United States White House to host a Maker Faire

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Feastly connects passionate cooks and adventurous eaters for authentic and social dining in a cook’s home.

Feastly launched in 54 hours over Washington D.C.’s Start Up Weekend in November 2011. It currently operates in

New York, San Francisco and Washington D.C.

Introduction

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Cookening is a marketplace connecting traveling guests with local hosts for homecooked meals.

Cookening facilitates local food experiences and meetings between strangers from different cultures over a

homecooked meal.

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Munchery allows customers to order handmade meals by local chefs for same-day delivery.

Munchery has served nearly 600,000 meals in the Bay Area.

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Leftover Swap facilitates trading or giving away of leftovers through their mobile app.

Leftover Swap hopes to minimize the 40% of the food we use going to waste as well as the fact that 25% of people

don’t know their neighbor’s names.

oDesk enables crowd to be a workforce

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Instacart taps the crowd for peer to peer delivery

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Uber enables P2P transportation –largest investor is Google $258m

Google and Waze have already started to share data (May 2014), in addition, Google is rolling out

retail delivery with Shopping Express, and also has self-driving cars.

AirBnb Enables Crowd to be a Hotel

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Liquidspace enables companies to rent from each other

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Kickstarter enables P2P investing by the crowd

LendingClub enables crowd to be a bank

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CHANGE

• 9000 startups

• Heavily funded

• ADD GRAPHIC of bar chart

@ V I S I O N C R I T I C A L

@ J O W YA N G

A properly shared car is

$270,000Lost RevenueOf auto sales

(1 shared car = 9 cars at average of $30k each.)


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Agenda:





Discussion: What’s causing this movement?

Discussion: What’s causing this movement?

In your groups, document all the causes on paper, be prepared to present


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Agenda:





Collaborated with the Revolutionaries

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How can companies alter their business models and become

resilient?

Collaborative Economy: Value Chain

Brand as a Service

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BMW offers DriveNow, a premium car-sharing service that offers cars on-demand vs. owning.

DriveNow lets you own a BMW, just for the day. Vehicles including BMW i, Mini and Sixt. Over 1,000 vehicles are now available in five cities

worldwide, including San Francisco, with over 60,000 customers.

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Volkswagen launches Quicar, a car-sharing program for Volkswagen cars.

Quicar operates solely in Hanover, Germany with over 5,000 members and 62 stations. In April 2013, they bought stake in Greenwheels, the

largest carsharing company in the Netherlands.

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Peugeot offers mobility membership, redefining car ownership to access to many forms of transportation.

Mu by Peugeot is available at over 90 sites in 7 European countries. The elevated level of service offers rentals for cars, vans, scooters,

bicycles and accessories including roof racks and car seats.

Mobility as a Service

Introduction

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ING offers a co-working space, Network Orange, in Downtown Toronto.

Large corporations are finding value in collaborative spaces and launching groups like ING’s Network Orange.

Home Depot as a Service

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Brand as a Service Needs

• Inventory Management

• CRM

• Etc

• LocalMotion

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B&Q launches StreetClub, a social network to enable neighborhood sharing in the UK.

Four months after its launch, StreetClub had over 1,000 set up.

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Numerous European telecom providers partner with Fon to allow users to share wireless networks.

Fon offers access to over 12M hotspots around the world. Only 4M are from Fon routers. The other 8M are from

partnerships with broadband providers.

Introduction

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Argos partners with Barnardo’s for a toy exchange program to raise non-profit funds.

Last year, over 45,000 customers donated toys at 740 participating Argos stores to raise £ 700K for Barnardo’s. This

year’s goal is £ 1M.

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Walmart enables game exchange –reducing waste.

Customer who bring in used video games can receive store credit, currently at Wal-Mart, and soon at Sam's

Club.

Patagonia enables a marketplace for refashioning products.

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Gap partners with Divvy Bike Sharing for a shared workforce

During the summer, people work at Divvy bike sharing, during winter, they’re auto-employed at Gap retail.

H&M Enables Swhopping. Drop off old, get a coupon for new.

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Marketplace Models

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Market Place Model Needs

• Inventory Management

• Reputation Data

• Profiles

• Payment Systems

• Matching Algos

• Near-Me.com

• Sharetribe.com

Enable a Platform

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Microsoft launches Chip In, a crowdfunding program to help students purchase computers.

Microsoft’s program created opportunities for students to use their networks to fund the purchase of a Microsoft

computer or tablet for school. Microsoft kicked in 10% of the purchase price of any fully-funded crowdsourced

purchase.

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U-Haul enables the crowd to fund truck, share in winnings and foster “Shared Destiny”

Tap the crowd for better rates and terms that a company can set and achieve the highest form of loyalty: Shared

Destiny.

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QUOTES

Crowdfunding is the

highest form of loyalty:

shared destiny

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Titan Bank & Congressional Bank start buying loans through Lending Club.

This partnership allows these community banks to facilitate consumer loans they could not profitable service

on their own, creating new opportunities.

GE Co-Develops with Quirky for sharing of ideas, supply chain, marketing, and revenues

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Co-Production with 3D Printers

Nokia enables 3D printing

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Philips spins off Shapeways, a 3D printing marketplace & community platform.

Shapeways has printed more than 1M user-created objects, has over 10,000 shops by independent designers

and 6M+ product variations.

Introduction

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GE partners with TaskRabbit to provide free delivery services by TrekRabbits.

GE promoted their ‘Brilliant Machines’ advertising campaign by highlighting collaborative consumption and

futuristic Star Trek.

Walgreens Co-Delivers with Taskrabbit, extending brand promise

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Coke’s Wonolo shares with customers who become employees “Work Now, Locally”

Retail customers can now stock shelves for Coke displays –and get paid while at it. Customers = Employees.

Barclays offers BarclayCard Ring, a credit card designed and built by community crowdsourcing.

Card community members can propose ideas and vote for ways to make the card better meet their needs. The community

collectively discusses ideas and evolves the card together. The Giveback program allows members to share in the profits of the

credit card program.87

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Market Place Model Needs

• Coinnovation platforms

• Tilt.com

• Reclay

• Etc

• Etc


B2P: Sell one good a thousand times; offer value added

services.

P2P: Enable reselling of used goods and services, scaling new value.

B+P: Tap crowd for innovation, with shared ideas, resources, and rewards

1. People are empowered to get what they need from each other.

2. The crowd is becoming like a company –bypassing inefficient corporations.

3. Corporations must use these same tools and strategies to regain relevancy.

4. This requires business model change: product > service > marketplace > repeat.

5. As a result, companies are resilient: connected, empowering others, efficient, and profitable.

FIVE FINAL TAKEAWAYS

Agenda:





Develop your own Resilient business plan

1) Which of the three business models fit your needs?

2) What’s needed to make this happen? (technology, services, other resources, mindset changes)

3) What are the risks and how will you mitigate?

4) How will you measure success?

Design a Resilient Business Model


B2P: Sell one good a thousand times; offer value added

services.

P2P: Enable reselling of used goods and services, scaling new value.

B+P: Tap crowd for innovation, with shared ideas, resources, and rewards

1) Which of the three business models fit your needs?

2) What’s needed to make this happen? (technology, services, other resources, mindset changes)

3) What are the risks and how will you mitigate?

4) How will you measure success?

Design a Resilient Business Model

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FUTURE

• APIs

• Platforms

• 3D printing

• Airbnb future

• People own less

• Cant tell employees apart from customers

1. People are empowered to get what they need from each other.

2. The crowd is becoming like a company –bypassing inefficient corporations.

3. Corporations must use these same tools and strategies to regain relevancy.

4. This requires business model change: product > service > marketplace > repeat.

5. As a result, companies are resilient: connected, empowering others, efficient, and profitable.

FIVE FINAL TAKEAWAYS

Welcome to the Collaborative Economy

Crowd CompaniesEmpowered People & Resilient Brands

Jeremiah OwyangFounder@jowyang

[email protected]

FEEDBACK FORM

Business model disruption and the next phase of the web

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