the future of business models: partnering with the crowd (seattle interactive conference 2014)

The Future of Business Models: The Crowd

Seattle Interactive Conference, 2014By Jeremiah Owyang @jowyang

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The Collaborative Economy

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Phases of Internet Sharing

The Collaborative Economy

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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.

Also including: Clorox

Esurance, Pepsi

43+ CROWD COMPANIES MEMBERS

Launched Dec 2013

Is this a business disruption?

Techshop empowers the Maker Movement –people build instead of buy

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Pleygo means a subscription to Lego sets –rather than owning

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Yerdle enables neighbors to gift goods - rather than buy

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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.

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Helparound builds P2P support for members of the Diabetic community

“Never get stuck again. Getting stuck without a glucose meter, test strips or glucose The Diabetes Safety Net lets you find and rely on others with diabetes in your

area.

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Boatbound provides Peer 2 Peer boat rental –instead of owning

Boats are used 17 days of the year. That’s 4% of the year.

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Pronto enables bikes –and helmets as a service, launched here in Seattle 2 days ago.

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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.

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Airbnb offers person to person space sharing, for a local experience. They’ve expanded to in-house dining.

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Seattle's WeWork offers anyone to have office space –on demand, rather than long term lease.

The crowd has created over 200 currencies

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Kickstarter enables P2P investing by the crowd. The crowd beat Apple to market.

LendingClub enables crowd to be a bank –founded in 2008. Biggest investor: Google

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What’s causing this?

A properly shared car is

$270,000Lost RevenueOf auto sales

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

The Collaborative Economy

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“…65 percent of their business migrate to ride

services like Uber, Lyft and Sidecar…”

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“All told, they found that for every 1 percent increase in the

number of Airbnb bookings, there is a .05 percent decrease

in hotel revenue”

Study by Boston University

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Airbnb Bookings

Source: Airbnb 2013 annual report

Collaborated with the Revolutionaries

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How can brands change their business models and become

resilient?

Collaborative Economy: Value Chain

Collaborative Economy: Value Chain

Brand as a Service

BMW as a Service

Trunk Club Sends Clothes on demand –Now part of Nordstrom

Home Depot as a Service

Prediction: Membership models emerge of “Access over Ownership*” –people may not own goods.

*Lisa Gansky, Author of “The Mesh” refers to Access over Ownership models

Collaborative Economy: Value Chain

Collaborative Economy: Value Chain

Patagonia enables a marketplace for refashioning products.

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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.

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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.

Prediction: A progressive Hotel will franchise the crowd –taking Airbnb head on

Collaborative Economy: Value Chain

Collaborative Economy: Value Chain

Enable a Platform

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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.

Hasbro enables customers to 3D print products on demand via Shapeways

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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.59

Prediction: We can’t tell the difference between employees and customers.

Collaborative Economy: Value Chain

Collaborative Economy: Value Chain

Collaborative Economy: Value Chain

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

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

3. Like social, corporations must use these same strategies to regain relevancy.

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

5. Becomes become Resilient: connected, empowering others, built to last, and profitable.

FIVE FINAL TAKEAWAYS

What side of history will you be on?

Welcome to the Collaborative Economy

Crowd CompaniesEmpowered People & Resilient Brands

Jeremiah OwyangFounder@jowyang

Jeremiah@CrowdCompanies.com