Jeremiah Owyang, Partner, Altimeter Group
The Collaborative Economy: How People, Startups, and Corporations build a new Market
Industry Analyst Jeremiah Owyang, will share findings from a recent research on the Sharing Economy. He’ll highlight the trends in the startup space, including verticals served, funding, and forecast what types of startups that will make it –and who won’t. The speech will outline how startups can work with corporations to serve this greater movement of sharing
Photo by: “Luca Sartoni – http://www.heisenbergmedia.com/”
Shows us Frederick VII, King of Denmark. He was watching the EU revolutions spreading and had options. Fight or collaborate.
We have heard about orgs that are looking at sharing and collaborate. So what role do corps have if people don’t want or need them., We look at how ownership AND Access is shared. The interesting thing is that corps have to let go in order to gain more. It is the only way.
Sharing is not new but it’s happening faster. If we go on a business trip, rather than using a taxi company, we use a neighbourhood person. We avoid hotels, stay in someone’s home. As the company grows, you don’t grow to bank, you can get peer lending. Grow more, use crowd resources. Use excess office space that is brokered. There is a disruption happening. The average car, that is properly shared reduces need for 9 cars. That’s a $270k opportunity loss. Don’t forget insurance, gas etc. One properly shared car could have $1m impact. This is absolutely a disruption for business
We looked at if this was a passing fad? is it a long term trend. There are many different instances/factors. There are silo, economy and techfactors
Silo Factors: 75% of people polled expect to see an increase in sharing objects and spaces. It’s not just the youth, or closer living etc. We are amplifying with scalable velocity the need to share
Economic Factors: The population continues to rise but resources stay the same. People want to do more with the products they buy. They want to re-use
Technology Factors: 87 phones per 100 people. Startups use social channels. THis revolution is on top of the disruptor – the internet
Looking at startups in this space. They are being funded. 200 startups have received $2b. This movement is not going away and it will increase in speed
So what do you do if you are being disrupted? What happened with Frederick? Frederick collaborated. He helped with the government, a new constitution. He helped, on his own terms. So there are lessons to be learnt. We call it the Collaborative Economy Value Chain
We take products and turn into services. We take services and turn into marketplaces. You activate your marketplaces to create your products
Company as a Service. You let products be rented, or subscribed to or gift them. Look at BMS in SF. You can rent cars off the lot. Subscription is not new, can we do this ti durable goods and services. Build a long term relationship. BMW see that cars will be saturated in cities in 2050, so they know the renting model will matter
Motivate the Market Place. You can encourage only, as they are already doing this. When buyers and sellers. The opportunity is to connect them. Rg Marriott can certify my guest hose/room and bring them trusted guests. You get trusted folks from loyalty programme and then gets a cut of the revenue. Any type of company can do this. Can a software provider do this service? It does not exist yet
Provide a Platform: your market places build products. Customers can build the next generation of products. Co-ideate. Co-fund. Co-build. Co-market. Co- etc etc etc. There is software but it is not connected to corps etc. Provide a platform that the crowd becomes the company. there are a few small examples. Eg Nike design shoes.
Why would you connect the players in this? how would you provide the services? why would you try the models? You can tap into the crowd. You can be in a deep relationship and get them to help. You can add value between customers and extract some value. No-one is doing this yet. This is an open market. THe opportunity? is 20% Looking at the startups that is the average cut in these transactions. There is a revenue growth opp
Frederick was a hero. He stopped the bloodshed. They remained as a monarch. He let go of his throne to gain the kingdom. IF corps want to be part of the collaborative economy to gain the market/ What side of history will you be on?