sharing economy & collaborative consumption

Collaborative Consumption& the Sharing Economy

Dr. Robin Teigland Karinda Rhode in SL

Stockholm School of Economicswww.knowledgenetworking.orgwww.slideshare.net/eteigland

@RobinTeigland

October 2014

Who am I? (LinkedIn Inmaps)

SSE

Exec Ed

Swedish IndustryResearch

Wharton

Stanford

McKinsey

vonorange.com

Today’s discussion

Part I Background

Part II The Sharing Economy

Part III Exercise

Part IV Into the Future

Then…

Thx to R. Wieselfors, Ericsson for photos

…Now

Thx to R. Wieselfors, Ericsson for photos

http://www.torbenrick.eu/blog/strategy/the-sharing-economy-is-changing-consumer-consumption/

Collaborative consumption

Botsman, 2010

Valuecreation

People• “Net generation”• 24x7 “mobile”

workforce• Knowledge via MOOCs• Sharing not consuming• Sustainability

Technology • Broadband access• The Cloud• Mobile phones• Internet of Things • Big Data• 3D printing• Robotics/AI• VR/AR

Open Source

• Software • Hardware• Physibles

Convergence of…..

Finance•

Microlending/microfinance

• Crowdfunding/equity/P2P

• Non-fiat cryptocurrencies

• Mobile money/payments

History tends to repeat itself….Innovation, financial crisis, industrial revolution,

…

Steam engine

Internal combustion

engine

Microelectronics

Late 18th C Late 19th C Late 20th C

Schön 2008

Third industrial revolution?

Many are stuck in our old ways …

What’s around the corner?24x7 Global Internet Collaboration + Open Source + 3D

Printing

http://mashable.com/2013/02/13/robohand/

$60,000

$150

Available for free download on

Where is the

firm?

No one knows everything, everyone knows something,

all knowledge resides in humanity.

networks.

Adapted from Lévy 1997

Six degrees of separation

- Milgram, 1967

The wisdom of the crowd

ClosedExpensiveComplexAccurate

OpenInexpensive

SimpleClose enough

Hinton 2007

AccurateUp-to-date

105 emp350+

Partners

43,900+Communitymembers

15,000+Customers in 130 countries

eZ Ecosystem

• Content management software, #1 in media industry

• 250,000 sites in 170 countries• Customers: UN, FT, WSJ, Vogue, Hitachi, 3M, BMW

• 105 employees in 9 countries (US, Europe & Asia)

Teigland et al., 2014 forthcoming

eZ’s platform for building identity and competence throughout its ecosystem

eZ Software development team

Est. $30 mln sales

30% profit margin in commodity business

20 employees but a 24x7 global “workforce”

of 2.4 million

No internal R&D or sales & marketing

ThreadlessA platform for global community

collaboration

From clothing to home products….

Innovation in automotive design/production

“Local Motors is the place for people to create influential vehicles together.”

http://www.youtube.com/watch?v=azCRuwtE_n0

A system that activates the untapped value of all kinds of assets through

models and marketplaces that enable greater

efficiency and access.

The Collaborative Economy

Harvard Business Review, 2014

- Botsman

Across all kinds of assets

Asset Example Organization

Intangible Open source softwareOpen source hardware

Linux, eZ SystemsThingiverse

Financial CrowdfundingP2P lendingCryptocurrencies

FundedByMe, KickstarterToborrowBitcoin

Human Knowledge/skillsLabor

Innocentive, Local MotorsTaskRabbit, MyWays

Tangible TransportationProperty/HousingFood

UberAirBnBEatWith

Other Reputation?

?

What is Crowdfunding?

Accumulation of small investments in individual projects by large number of

individuals (the “crowd”) via or with help of Internet and social networks (De Buysere

et al., 2012)

Picture: FundedByMe

Market size

Global crowdfunding almost doubled 2012 to 2013 to USD 5.1 bln

March 2014 Kickstarter passes USD 1 bln in total pledges

FundedByMe raised USD 10.5 mln to date By 2025, global crowdfunding could reach

USD 90 to 96 bln (1.8 times today’s global VC industry)

Growth potential greatest in emerging markets? USD 50 bln in China by 2025?

Local Stockholm success story: Flippin’ Burgers

Money raised: SEK 36,502 / €4,000

Number of investors: 186

Date funded: September 2011

Sector: Food

Enabling local, small-scale solutions

Top 5 Best American

Restaurants in Europe

http://travel.cnn.com/best-americana-restaurants-europe-023346

Nesta

P2P lending in the US and UK…

• USD 3.8 bln in personal loans since 2007

• USD 750 mln growth each quarter

• Now offering business loans

• Strategic alliance with Union Bank

Toborrow.se

Today’s discussion

Part I Background

Part II The Sharing Economy

Part III Exercise

Part IV Into the Future

UberGlobal platform for local community

collaboration

Launched June 2010

USD 17 bln valuation

43 countries globally

Limited physical assets

UberPop, Uber Rush, ??

UberGlobal platform for local community

collaboration

http://www.inc.com/adam-vaccaro/uber-isnt-a-car-service.html

Exercise

For Uber Against Uber1. Uber CEO 1. Taxi Stockholm CEO2. Uber Taxi driver 2. Taxi Stockholm driver3. Uber passenger 3. Average taxi

passenger4. Automobile Dealer Association Chairman

4. Taxi Industry Association Chairman

5. Politician 5. Politician

Develop an argument for your position:

Today’s discussion

Part I Background

Part II The Sharing Economy

Part III Exercise

Part IV Into the Future

ExploitationImproving

existing value creation activities

ExplorationDeveloping new value creation activities

Adapted from March 1991

DIY 3D printing becoming more commonplace…

http://openfabpdx.com/fffiddle/

What’s around the corner?24x7 Global Internet Collaboration + Open Source + 3D

Printing

http://mashable.com/2013/02/13/robohand/

$60,000

$150

Available for free download on

Where is the

firm?

OpenSimulator: A value-creation ecosystem

AcademicEntrepreneurHobbyistLarge FirmNon-profitLocal PublicFederal PublicResearch InstSME EmployeePeriphery

Teigland, Di Gangi, & Yetis 2012

USD 5.5mln in development

costs

Thomas Jefferson (1816)“Laws and institutions must go hand in hand with the progress of the human

mind.”

The problem is that the human mind itself can’t keep pace with the advances

that computers are enabling. 

http://wadhwa.com/2014/04/15/mit-technology-review-laws-and-ethics-cant-keep-pace-with-technology/

http://www.futuristspeaker.com/2014/09/should-robots-have-their-own-bank-accounts/

The future is already here, it’s just not very

evenly distributed.

- William Gibson

Robin Teiglandrobin.teigland@hhs.se

www.knowledgenetworking.org

www.slideshare.net/eteigland

www.nordicworlds.net @RobinTeigland

If you love knowledge, set it

free…

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