“The bad news is, your customers may be your competitors. The good news is, you can harness them,” declared Jeremiah Owyang, Founder of Crowd Companies, at the 2015 NYC CDO Summit, on April 29, 2015, hosted at Thomson Reuters.
We felt it appropriate to revisit Owyang’s featured presentation from last year’s Summit, given the return of our flagship NYC CDO Summit for its 4th year, presented by Centric Digital and hosted by Thomson Reuters on April 27, 2016.
According to Owyang, we are entering a new era of transformation that will dwarf even the adoption of the internet and social media: the collaborative economy.
“This is an economic movement where commonly available technologies enable people to get what they need from each other,” he explained.
Chief Digital Officers should take note that the collaborative economy is already here.
Billions are being invested in companies like Uber, Airbnb, or BlaBlaCar, and PCW predicts the collaborative economy will grow from $15 billion to $335 billion in revenue in the next ten years.
Investment in the collaborative economy is already almost double that in social media, $11 billion to $6 billion.
Make sure your digital strategy is ready for this big change by watching Owyang’s presentation below or reading on:
Jeremiah Owyang has spent the last few years researching and even living in the Collaborative Economy.
At one point he was able to use shared services to such a degree that he purchased fewer than 10 items in a three-month time span (not including food, personal/health care, and business travel).
The vast body of work that resulted from his research is available here.
To understand the level of disruption occurring, take into consideration:
- It took Hilton Hotels 93 years to build an inventory of 600,000 rooms. Airbnb got there in just 4 years and has amassed 900,000 rooms around the globe, from everyday people, many of whom were previously customers;
- Six-year-old Uber is one of the fastest-growing logistics companies, but it doesn’t own a single car, truck, or town car, and is valued at $43 billion;
- LendingClub enables P2P loans, and has completed over $7 billion in loans in 5 years–without having a single physical branch or ATM;
- Ten-year-old Etsy has 19 million active shoppers, doesn’t own a single factory, warehouse, or showroom, had an IPO for $3.3B
The effect on traditional providers is clearly becoming apparent. Taxi rides are decreasing every year in New York City, losing ground to Uber, for example.
“Whatever you do, don’t call Uber a taxi company,” Owyang said.
“This is a logistics companies, a big data logistics company. Every single car is now outfitted with an iPhone, which now makes that car an internet of things enabled device.
“Who has more data about traffic: The City of New York, or Uber?”
In the hotel sector, a Boston University study found that for every 1% increase in the number of Airbnb bookings, there is a .05% decrease in hotel revenue.
Altogether, Owyang has found over 13 distinct drivers behind the collaborative economy which show it’s here to stay.
This begs the important question: “What role do companies play when people get what they need from each other?”
CDO Club registered members can watch the video and read the rest of Jeremiah Owyang’s guide to the collaborative economy, below.
To register, visit here: http://cdoclub.com/membership .....
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If you are tasked with understanding what digital leaders must do in order to succeed in almost any industry, the best place to learn more is at the CDO Summit.
Register today for the NYC CDO Summit presented by Centric Digital, hosted at Thomson Reuters on April 27, 2016.
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Managing Director, Digital Strategy/Editorial Director
Harvard Business Review
President Barack Obama 2008 and 2012
Chief Digital Officer
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