By Dion Hinchcliffe for Enterprise Web 2. The evidence has been steadily seeping into the edges of business thinking for years: The online world has clearly and systematically changed the rules of business, and companies must adapt or risk irrelevance. This often seemed self-evident to many of us, even if the ranks of the Fortune and Global didn't actually seem to change very much as a result. But the times, they have recently changed. It wasn't until rather recently that a broad swath traditional businesses started to be challenged at their very core by the realities of social business, a set of relatively new concepts that are both embodied by and taken from social media that seemed to imply great changes in the way we work, think, and live. Admittedly, old media and software - to hold up two industries almost instantly impacted by the global Internet - were particularly disrupted early on, by social media and open source respectively, in such a profound way that they no longer look nearly anything like they once did. In sharp contrast to these two examples, most other industries just didn't witness anywhere near the same dramatic threat to their own business models for well over a decade.
A typical example of a high impact Collaborative Economy startup is Airbnbthe well-known site where anyone can rent out spare rooms or empty houses for anyone else to use, without the need for an intermediary business that provides the physical facilities.
As a clear shot across the bow of the hospitality industry, Airbnb will provide on a peak day placements for up topeople per night. In comparison, the global hotel megachain Hilton has onlyrooms as noted Thomas L. Friedmen in a recent column about this phenomenon.
Thus the size of some of these new startups is now starting to challenge traditional market leaders, often bending or breaking local laws, customs, and regulations along the way, which were never designed for the social business era. Other examples abound in many industries including transportation UberLyftfinance LendingClubworkforce oDeskdining Feastlycorporate real estate LiquidSpaceShareDeskshopping Yerdleventure capital Kickstarterand countless others, of which these are just a tiny but representative sample.
The capitalist sharing economy is a way of purchasing goods and services that differs from the traditional business model of corporations hiring employees to produce products to sell to consumers. In the sharing economy, individuals are said to hire out things like their cars, homes and personal time to other individuals in a peer-to-peer fashion. Jul 29, The Collaborative Economy Value Chain illustrates how companies can rethink their business models [DH: my emphasis] by becoming a Company-as-a Author: Dion Hinchcliffe. May 31, [Report] The Collaborative Economy, by Jeremiah Owyang 1. A Market Definition Report The Collaborative Economy: Products, services, and market relationships have changed as sharing startups impact business models. To avoid disruption, companies must .
The real point is that in-the-large it appears to be a broad demographic digital business trend. Plotted forward five or ten years, and it is evident that the Collaborative Economy will become a major portion of the world economy sooner or later, and very probably the former. Part of the reason that the timing appears to be right for these big ideas is that in a consumption-based society we individually now posses so much in terms of usable resources, and yet they are also typically quite underutilized.
The sharing economy reaches directly into this vast and largely untapped stored value that consumers now control by helping them make much better use of what they have.
An Animated Overview of the Sharing Economy
The implications of all this in terms of efficiency, reuse, environmental impact, productivity, value creation, and other important economic, social, and civic factors are potentially enormous. The corollary, however, may be that there is much less room in the economy for traditional businesses which tend to be much less resource-rich, innovative, or cost effective by comparison.
In short, they may simply not compete strongly in the collaborative economy, because of a much more labor and resource-intensive legacy approach to meeting market needs.
Much has been made over the extremely rapid change in today's technological landscapeand how slowly companies are adapting to it. Part of this is an indictment of how poorly companies have been absorbing new technology in a way that is fundamentally useful to the future of their business.
The other obstacle to change is the sheer residual value of following the dying path they are on. In other words, the Innovator's Dilemma for the digital era. As John Hagel and John Seely Brown were recently quoted in the Wall Street Journalthere are two overarching trends that are pressuring businesses in the digital age where location doesn't matter and market share is a relentlessly zero sum game of who has the biggest ecosystem:.
Collaborative economy dating
While the track record of companies in making the transition to the world of social business has been a checkered one, I've long identified incremental success stories here. In speaking with Owyang about the emergence and threat of the Collaborative Economy to the industrial age generation of companies, I have challenged him on what the prescription is to successfully transform.
Unfortunately, though he too believes it can be done by some, but not by all, the road ahead is as varied as the company and industry.
But looking at the few success stories there are and there are somethese key points stand out as the corporate mindset needed to transition successfully to social business:. Naturally, this is just a high-level set of factors for changing with the economic times and facing fast-moving new competitors using a very new rule set.
The reality will likely be grittier, more challenging, and surprising to the typical classical industrial age business. Yet, the greater the changes taking place in the marketplace, then the greater the opportunity. The message here is that it's probably later for your industry than you think. Most businesses will have to learn innovative and effective ways to adapt to the Collaborative Economy in order to survive and thrive, even in the medium term.
Fom a customer and corporate perspective both, that may not at all be a bad thing. Working in a coronavirus world: Strategies and tools for staying productive. The art of the possible: Pervasive integration of enterprise systems and data arrives.
The sharing economy All eyes on the sharing economy. Collaborative consumption: Technology makes it easier for people to rent items to each other. But as it grows, the "sharing economy" is. The central conceit of collaborative consumption is simple: Obtain value from untapped potential residing in goods that are not entirely exploited by their owners.4 The speed of growth with which sharing systems have spread suggests that the sharing economy might represent a serious threat to established industries, due to fewer purchases and. Jun 24, Collaborative Economy: A marketplace where consumers rely on each other instead of large companies to meet their wants and needs. Collaborative economy consists of .
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Paul Oyer, Stanford economist and the author of "Everything I Ever Needed to Know About Economics I Learned from Online Dating," explains the marketplace of online love. Oct 16, The sharing economy (sometimes also referred to as the peer-to-peer economy, mesh, collaborative economy, collaborative consumption) is a socio-economic system built around the . we help peer to peer platforms, collaborative, sharing and gig economy sites transform their brand into a digital trust proxy. Sharing economy sites are completely reliant on trust between strangers. By offering relevant and safe content you can foster and maintain trust with your users.
Google expects its staff to work from home until and it's not alone. So, you expect life and work to be back to normal soon? Google and many other companies don't. CFOs plan to spend more on virtual business tools, automation, says Deloitte. Technologies for enabling remote work will see more wallet share in the next 12 months say CFOs.
Companies in the collaborative economy are often disruptive to established businesses think Uber and the taxi industry or Airbnb and the hotel industryand many have experienced rapid revenue growth.
The Economics of Online Dating
They rely on the digital space and smartphone apps to connect buyers and sellers. Online reviews and, in some cases, background checks facilitate trust to make these exchanges possible. The collaborative economy encompasses many types of businesses. There are services like Taskrabbit which lets consumers hire individuals to complete tasks ranging from running errands to assembling furniture; Crowdfunding services like Lending Club which connect people who need to borrow money with numerous individuals who collectively fund loans; Room rental services like Airbnb that lets property owners earn extra income by renting out their spare rooms or entire homes to travelers; and peer-to-peer marketplaces such as Poshmark, used for reselling high quality used clothing.
Businesses that rely on customers who buy something rather than share it face a significant threat from businesses in the collaborative economy. Likewise, sharers can be converted to buyers for the same reasons. A big uncertainty surrounding many collaborative economy companies is regulation. Collaborative platforms like Uber and Airbnb have faced well-publicized regulatory battles in numerous cities where their long-established competitors have tried to use fear of consumer harm as a premise, sometimes valid and sometimes overblown, to implement regulations to put these new companies out of business or to make doing business more difficult.
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