Tagged: collaborative economy

Beyond Ideas: Building Open Innovation Communities

img_0571Open Innovation Communities – where companies and customers collaborate on ideas for new products and services – can be one of the most valuable ways to invest in community engagement. Unfortunately, this type of community is also one of the most difficult to get right. Many companies have experimented with this type of  Open Innovation – Lego Ideas, Dell’s IdeaStorm, Starbucks’ My Starbucks Idea – and each of these companies have seen value from the communities. The bad news is that most companies fail because they lack the vision and commitment to see beyond the initial tactic of soliciting customer ideas.

In my community practice, I’ve seen 4 stages that are typical in the maturation of an Open Innovation Community.

  1. The Social Suggestion Box – Launch an open space for customers to give feedback or make suggestions
  2. Overwhelming Backlog – Period where the company can no longer process the backlog and may abandon the community
  3. Managed Sprints – Develop a strategy to shape feedback and ideas by introducing a more formal process and constraining topics & time
  4. Collaborative Innovation – A significant evolution of programs and platforms that layer ongoing ideation into all design and decision making
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4 Stages of “Ideas” Communities

The Four Stages of Open Innovation Communities

Stage 1. The Social Suggestion Box
Most companies start their Open Innovation Community with an open-ended call for ideas and feedback. Community members are welcome to submit any idea, and the broader community (hopefully) comments on the idea and rates the idea using a simple scale or upvote. Community managers take the most highly rated ideas to the product team for discussion, and eventually some ideas are chosen for production.

The Social Suggestion Box phase is valuable in the short term, as customers will likely have suggestions they have been holding on to since they began their relationship with the company – essentially a communal backlog, if you will. Companies become stuck in this phase when they are unable to process the backlog of ideas, manage the growing community and deliver quality ideas to internal teams (typically product) in a format and within a timeline that aligns with product roadmaps. This break between the promise of a constant stream of new ideas, and the lack of a process and the ability to shape ideas into a usable format is the key challenge.

Stage 2. Overwhelming Backlog
The equivalent of the “trough of disillusionment” from the Gartner Hype Cycle, companies in the Overwhelming Backlog phase can often find themselves with a large pile of unread ideas, a community platform in need of a serious overhaul, an innovation program that no one really values and a community in revolt.

This situation may sound extreme, but it was exactly the one I walked in to when I joined Dell in 2010. IdeaStorm, Dell’s Open Innovation Community, had launched in 2007. After enjoying 2 years of valuable idea contributions, positive PR and internal support, year 3 found IdeaStorm as a “ghost ship” community, with no leadership, vision or community management. Things became so bad that a community member posted the idea that Dell should shut IdeaStorm down. The community quickly upvoted that idea, it caught the attention of Michael Dell and my team was given the task of “making it better, fast”. I eventually hired the community member who posted the “take it down” idea to become the new community manager for IdeaStorm.

To navigate out of the mess we were in, the team immediately began research to inform our new strategy. I wanted to know the financial impact of IdeaStorm to date, understand why ideas weren’t being responded to, and to understand what the barriers were in getting ideas from the Community into the the product teams at Dell. We found that the financial impact from IdeaStorm was really high ($100s of Millions), that we lacked an agreed upon internal process for scoring and prioritizing ideas, and that we needed to create a new type of community management role to help facilitate the new process – an Idea partner that lived on the product team. The final piece of the puzzle was implementing an archiving policy for ideas that didn’t score well in the community. Within a few months we had processed the ideas backlog, started design on a new platform (with the community), and had reengaged most internal product teams.

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Stage 3. Managed Sprints
Companies come out of the Overwhelming Backlog phase with the key insight that shaping the topic, type and form of ideas they would like to receive is critical to realizing value and long term success. Many companies will implement a sprint-like approach to ideation, using phased ideation and design sessions to focus on a single topic or product.

This approach involves developing a clear business or design problem, and then breaking solution development in to smaller ideation projects that are facilitated, in sequence, over a number of weeks. The output of each sub-project helps shape the proceeding sub-project. Ideas and design concepts are generally of higher quality because the problem definition is clear, product teams participate, and community members get real-time feedback from the product team.

Dell did this successfully on IdeaStorm with Project Sputnik, co-creating a Linux-based laptop with and for developers. Other examples of the Managed Sprint stage include Unilever and General Mills. Jovoto (client), an “On Demand Creative Community”, has on of the best Managed Sprint approaches I have seen – you can find more information on their site, and in the book their CEO Bastian Unterberg coauthored, “Crowdstorm“.

Stage 4. Collaborative Innovation
In many ways, moving through Stages 1-3 are a necessary process for companies to undertake in order to develop the strategy, process, alignment, platforms and business models to move beyond what are essentially sporadic innovation campaigns.

Collaborative Innovation is an ideal state where an organization and its community of customer, partners and employees are engaged in an ongoing process to perfect existing products & services and to bring new products and services to market. We’ve talked for years about the boundaries between companies and customers disappearing – in the Collaborative Innovation stage, the boundary is permeable – customers create new products & services with the companies assets, and receive value in return (use, compensation, reputation, etc.).

There are examples of large companies partially engaged in the Collaborative Innovation stage, but none that have extended this to every part of their business.

Some examples include:

Opportunity While Other Stall

The truth is, most companies never make it beyond stage 2, “Overwhelming Backlog”. Dell, an early pioneer in the space (and my former employer) has been regressing back from Stage 3 for a few years (unfortunately). The other notable pioneer, Starbucks, has optimized My Starbucks Idea to be a very well run & designed Stage 1 community. While Communities at each stage offers some dimension of value, companies progressing through to Stages 3 & 4 will discover the most value and innovation.

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The potential opportunity for the next wave of Open Innovation Communities is incredible. Why?

  • Customers have shown they are willing to collaborate & create
  • Customers are willing to buy products still in the conceptual phase (millions of examples of crowdfunding)
  • The tools to create & share complex designs are free and relatively easy to use – see Fusion 360 & OnShape
  • Innovation platform companies have an opportunity to move beyond text / pictures / video into immersive & real-time 2d & 3d collaboration. PS – Platform companies – I would LOVE to work on this and have a ton of ideas.

Summary

Many companies could realize tremendous value from Open Innovation Communities. Most don’t because they don’t experiment, or do a poor job of planning their initiatives. Companies that commit, support and evolve their Communities see value. Beyond the current practice examples of Open Innovation Communities, the next wave will feature immersive and real-time design as a key feature. Those who wish to innovate need to be evolving their platform, programs and internal process now.

Learning More
I’m offering a session on Jolt that expands on the concepts in this post, and goes in to more strategic detail about how to build the best Open Innovation Community for your business. Feel free to book a session and chat with me about tailoring to your organization’s needs.

My First Year as a Consultant and what 2016 Holds for Online Communities (I hope)

Sonoma Sunrise

Sonoma Sunrise in honor of the dawn of 2016

Honestly, I wasn’t going to do this. I’m already rolling eyes at all the “prediction” posts. And there are way too many 2015 retrospectives to look back on… but I’m feeling optimistic and inspired! You are taking the time to read this – THANK YOU! I have had an incredible amount of support for my first year of Structure3C. Thank you for being part of it.

This is a long-ish post – the short version is a list of personal highlights from 2015, and a look ahead to 3 big ideas and aspirations for 2016.

A Look back at the first year of Structure3C

Thank you for letting me take a moment to reflect on a few key accomplishments from this year.

  • Launching Structure3C on February 4, 2015 to help brands create successful customer communities and crowdsourcing initiatives
  • Chairing the inaugural Collaborative Economy conference in San Francisco in March
  • Conducting the first research study on Brands & The Collaborative Economy – exploring a range of organizations level of knowledge, interest, priority and current activities in the Collaborative Economy
  • Having a number of prominent speaking engagements, including SxSWi, Social Business Forum 2015 (Milan), The Silicon Valley Boomer Business Summit and Crowdsourcing Week Europe (Brussels) 
  • Helping a growing portfolio of brand and startup clients with briefings, crowdsourcing strategy, online community development and product design
  • Being interviewed by Virgin Entrepreneur on Crowdsourcing
  • Holding the closing workshop at the Crowd Companies 2015 Main Event in SF – (you can download my custom workbook from the event)
  • Being honored as one of the inaugural A. Barry Rand Fellows for the Life Reimagined Institute
  • And on a personal note: I made a commitment to my family to be present more throughout the year – one lagging indicator of success is the number of pancakes and pieces of french toast made in 2015 numbers just shy of 1,000! (disclaimer: back of the napkin calculation)

3 Big Ideas for 2016:

1.) Beyond “Digital Transformation” 

In 2015, it seemed like Digital Transformation ate the business world. Almost overnight, the big consultancies dropped “Social Business” and began to sell Digital Transformation strategies. Thought leaders and former champions of social published articles and books about establishing, then disrupting “Digital Business”. Former Social Centers of Excellence were abandoned or repurposed for the “new” digital business journey.

In some ways, this is completely logical. Big consultancies need to keep clients anxious and their armies of consultants employed. Thought leaders need a constant stream of new terms, concepts and frames to stay relevant and top of mind. Executives need to frame annual objectives in ways that are novel and show progress year over year.

And, let’s face it: Social, Community, Customer Collaboration are all hard. Really hard.

Getting Real
Obviously, technology plays a critical role in modern business. The problem with many Digital Transformation efforts is a hyperfocus on the technology at the cost strategy and customer relationships.

Further, the definition of “Social Business” was always somewhat nebulous, and the internal culture shift and alignment needed to be successful was an arduous task. Pursuing a primarily technology-driven agenda likely seems more attainable, and “Digital” is an easier sell – both the perceived value and anticipated results.

What is lost in the shift from social to digital is the opportunity to fully realize the business value of connected customer relationships at scale. Realized specifically through strategies based on networks, communities and deep collaboration. Sound nebulous? I’ve shaped and seen first hand the value of social and community in the form of increased direct revenue, increased loyalty, crowd driven products and early market dominance based on building communities in parallel with products. Examples: The quantified value of Dell’s IdeaStorm was in the hundred’s of millions of dollars, Dell’s TechCenter community had billions of dollars in impact on Large Enterprise sales, Autodesk’s support community saves the company millions of dollars a year… I could go on.

2.) Digital / Social Business reframed as Business, Networked

Based on my experience building online communities and collaborative experiences, as well as research I’ve conducted, I’m convinced that a new and comprehensive approach to online communities is the way forward.

An approach where:

  • What we thought of as “social” is really the networked marketplace
  • Your market is synonymous with your crowd
  • Online communities build lasting relationships amongst your customers, prospects, employees and partners and
  • Collaboration looks like a true partnership with customers, not an internal social network no one really uses.

Market as a Network

 

 

 

In order to begin exploring business opportunities in the networked economy, businesses need to shift their mindset to think about markets as networks. Their total addressable market(s), connected via platforms & social networks.

There are three important contexts to think about in the Network Marketplace:

  • Crowd: A group within a Market Network that has:
    • A shared interest or goal
    • The ability and assets to participate in a shared marketplace, task or activity via common platforms
  • Community A connected & hosted group within a Market Network that has:
    • 1 or more shared interests or goals, leading to shared identity & purpose
    • The ability, motivation and assets to work towards a common purpose over time
    • A host with intention to support & manage community over time
  • Collaborative Organization Collaboration amongst organizations, partners and customers essentially functioning as one organization:
    • Shared IP & Common resources
    • Shared vision of activities and outcomes
    • Shared risks and equitable outcomes

3.) Radical New Leadership

To truly make progress in the evolving online community strategy we need new leadership, and evolved (not incremental) vision. This requires a shift from quarterly-driven decision making by businesses and a “sell what we have” mentality from our collective social vendors. Specifically:

Corporations

  • A new function that owns customer experience across every touchpoint – and further – owns developing the 1:Many relationships in the market network, not just 1:1
  • A new Executive to lead this function
  • Integration of platforms, systems and customer data that create internal efficiencies, better customer experiences, and put the customer in control of their experience, relationships and data
  • A new point of view on value, and specifically, the value of customer engagement and participation. The days of customers supporting other customers without compensation are coming to an end.

Vendors

  • We need a bolder vision for online community platforms and social media & network tools. Platforms now are: 1) optimized around specific functions, like peer to peer support 2) are incredibly hard to customize and 3) are incredibly hard to integrate. We need better from you.
  • Reign in sales-driven organizations that over-promise and under-deliver on community quality and outcomes.
  • We need vendors to come together on feature & data standards and interoperability. Just to pick a specific example: The current disconnect between CRM, Marketing Automation and Community Platforms (even from the SAME vendor) is unbelievable. Invest in fixing it.

Thought Leaders

  • You need something new to talk about and sell. I get it. I humbly ask:
    • Connect the dots between your concepts, especially when retiring an old concept for a new one.
    • Talk to your peers in the industry when selling new ideas so clients aren’t dealing with 10 flavors of the same burning platform concept.
    • Show your source data when you have it.
    • Attribution is appreciated. Especially for concepts you are essentially recycling.

Industry Organizers

  • Show you really care about the future of the industry by cooperating on standard definitions, benchmarks and training
  • Try to coordinate conference data and overarching themes
  • When collecting practice data you intend to use for consulting or products, please provide a disclaimer at point of collection.

Do you agree? What would you add to this list?

With that said, 2016 is shaping up to be even more fun.

A preview includes:

  • An upcoming announcement for a series of Crowd Economy “Rapid Orientation Workshops”
  • Select speaking engagements focused on describing a Modern Approach to Online Community Building by developing Market Networks
  • Ongoing research into how Brands continue to evolve their Crowd and Community business strategies
  • An expanded set of consulting offerings, including modules for leadership & team development, value / ROI analysis and scorecard development. 

Should we talk? I’m offering a limited number of free introductory consultations (via phone). I’d love to learn more about your community & crowd plans for 2016, and I promise your will take away new ideas from our call.

Book a call here. 

In the spirit of the New Year, I wish you a peaceful and epic 2016. Thank you for helping make Structure3C ‘s first year a success!

Collaborative Economy Roundup for the Week of November 16, 2015

Collaborative Economy Roundup

With the horrible events of last week in Paris, Beirut, Israel and Kenya on my mind as we start the work week, I want to encourage everyone to think of ways to use connected technologies to bring us together instead of pulling us apart (as the extreme elements want). I wish you all a peaceful and productive week.

See something we missed? Email us, we’d love to hear from you.

3 Reads To Start Your Week

The Best of Last Week

1.   “Is the Sharing Economy a Retail Disruptor?” via eMarketer – “The sharing economy has emerged over the past decade to revolutionize travel and transportation. Is a similar disruption coming to retail?” – http://goo.gl/yrmGl0

2.  “Zipcar’s Co-Founder Weighs In on the Sharing Economy” via Bloomberg Business- “I think it’s one sub set of a much larger movement of platforms and people that are really reinventing the way we build businesses.” – http://goo.gl/q4lJZ6

3. “Future of the Global Workplace: The Growth of the Sharing Economy” via Radius – “Simple in concept, the sharing economy is also disruptive and has the potential to change the nature of work and careers.” – http://goo.gl/XZNt43

4. “We Need a Social Economy, Not a Hyper-Financialized Plantation Economy” via Charles Hugh Smith  – “What we need is a social economy, an economy that recognizes purposes and values beyond maximizing private gains by any means necessary, which is the sole goal of hyper-financialized economies.” – http://goo.gl/8H0G4z

5. “Be Your Own Boss” via Industry Leaders – “This economy isn’t a trend; it’s a new way of working.” – http://goo.gl/soUVsZ

6. “Airbnb is trying to resuscitate its image as the ‘nice guys’ of the sharing economy” via Fusion – “Airbnb, the company pledged, would share anonymized data on hosts and guests with cities, take steps to prevent illegal hotels from existing on the platform, and pay its ‘fair share’ of hotel and tourist taxes in cities that require it to.” – http://goo.gl/MtFZHU

7. “The sharing economy is people fueled and cloud powered” via Dell – “While many companies within the sharing economy—also called the collaborative economy—are just coming into their own, they’re actually not new.” – https://goo.gl/qrwxan

8. “Why I’m All For The Sharing Economy” via Odyssey – “The most profoundly positive aspect that the sharing economy has is its benefits for consumers.” – http://goo.gl/RNDpdS

9. “How the Sharing Economy Can Create Value from Waste” via The World Post – “We as a global society are beginning to pause and question before discarding something that might be of value to someone, no matter how remote or disconnected.” – http://goo.gl/NA62cd

10. “Secrets of the Sharing Economy” via BusinessMatters – “New research suggests that far from being the preserve of the millennial, the Sharing Economy is being more readily embraced by older consumers, with 35-44 year-olds emerging as its most vocal supporters.” – http://goo.gl/C44UM3

Don’t forget to register for our Collaborative Economy Kickstart Workshop. Space is limited, so get your tickets today: https://goo.gl/js28NG

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Announcing a New Online Workshop: The Collaborative Economy Kickstart

Every organization in the world is being impacted by the Collaborative Economy in some way. Smart organizations are engaging now by addressing emerging threats and identifying business opportunities.

I created the Collaborative Economy Kickstart as a companion to our longer-form workshops. In 2.5 hours, participants will get a briefing on the Collaborative Economy, a facilitated exercise to guide ideation and action planning and 30 minutes of group coaching to begin their journey in the Collaborative Economy.

Register (and get more info) by clicking on the “Get Tickets” button below.
Collaborative Economy Kickstart

The purpose of the Collaborative Economy Kickstart Workshop is to help Executives quickly understand how the Collaborative Economy will impact their business, and what new business and product opportunities the Collaborative Economy represents.

In the first hour Participants will be given an overview of the Collaborative Economy, including:

  • The key elements of the Collaborative Economy;
  • The three C’s of a Crowd-powered business: Crowd, Community and Collaborative Organization;
  • Case studies and examples of Crowd-powered businesses;
  • A method for identifying opportunities for, and threats to, a Participant’s business;
  • A framework for developing a Crowd-powered business model.

During the second hour Participants will then be guided through an Ideation & Action Planning exercise that helps them:

  • Explore the dimensions of the Collaborative Economy that are relevant to their business and market;
  • Assess the biggest threats and opportunities;
  • Learn to do an asset inventory;
  • Explore opportunities via the Ideation Canvas tool;
  • Create an action plan to more forward immediately after the session.

The workshop will end with 30 minutes of group coaching to explore topics that have surfaced during the overview and action planning sessions.

Participants will leave the session with a better understanding of the Collaborative Economy, an action plan draft and exclusive templates to use within their organization to kickstart their Collaborative Economy journey.

Collaborative Economy Roundup for the Week Ending October 30

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Your Weekly
#‎CollabEcon Roundup for the Week Ending October 30
We hope everyone is geared up for an extra #spooky Halloween weekend. Uber’s latest valuation and funding round might be scary (actually, terrifying!) We’ll get you up to speed on this week’s best #CollabEcon articles. Just settle in with some trick or treat goodies and read the best the web has to offer this week:

1.  “Can the Commission collaborate on the collaborative economy?” via Science|Business – “At a Brussels news conference, top EU officials had different perspectives on taxi-sharing and other aspects of the ‘sharing’ economy.” – https://goo.gl/ioy5jj

2.  “Developing the Sharing Economy” via Economy Watch – “For any policy in this area to be effective, it needs to grapple with and challenge some underlying assumptions about the ‘sharing economy’ and its associated rhetoric.” – http://goo.gl/ylbgbY

3. “Interview with Uber: Creating a Frictionless Experience That Spawned A Generation of Copycats” via PSFK – “The Uber experience has also impacted consumer expectations across industries: if people can call a driver, organize a ride within minutes and pay for their trip at the tap of a button, why shouldn’t all service brands apply this same methodology?” – http://goo.gl/QSdl07

4. “Today’s sharing economy will shape our future” via The Daily Northwestern – “This recent unprecedented rise in the so-called ‘sharing economy’ is not just defining our careers, but also actively reshaping our daily lives and even our mental approach toward consumption.” – http://goo.gl/WWNuKN

5. “Following Uber’s Success, Copycats Rush To Carve Out Niches” via NewsFactor – “Uber has become a hip shorthand for efficient transportation and seamless commerce, a digital darling that turns your smartphone into a matchmaker between you and your ride home.” – http://goo.gl/PlLF1g

6. “FIR Interview: Jeremiah Owyang On Competing In The Collaborative Economy” via FIR Podcast Network – “The collaborative (or sharing) economy is heating up, with dramatic increases in both the number of startups that employ the model and the number of consumers who use them.” – http://goo.gl/DsV8Ha

7. “A Revolt Is Coming for Cloud Labor” via The WorldPost – “We are on the cusp of a revolution in the way work and labor are done.” – http://goo.gl/wucpNX

8.  “A worldwide paradigm shift from ‘sharing’ to ‘collaborative’ economy?” via LabGov– “Most importantly, it’s only if and when each and all of us gets directly involved in such a process that we together can make a difference – suggesting a more than necessary shift toward a more participatory and collaborative economy.” – http://goo.gl/MlcIiY

9.  “The Sharing Economy Doesn’t Need to Be Full of Monopolies” via The Atlantic – “Without checks on their power from consumers, these billion-dollar companies are beholden only to government regulation—and even then, sometimes they shrug that off.” – http://goo.gl/GvvLqC

10. “Corporate Travel Managers Don’t Trust the Sharing Economy” via Skift – “It’s shocking that more corporate travel managers haven’t embraced mobile technology and the sharing economy as ways to reduce costs and gain more accurate data on the habits of their clients.” – http://goo.gl/JCw0n6

Bonus: Bill spoke at Crowdsourcing Week Europe last week in Brussels (the conference was amazing). Presentations from all the sessions have been uploaded here. Do yourself a favor and spend some time with these slides!

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Communities in the Crowd Economy: #CSWEurope15

image credit: Xavier Damman @xdamman

This week I am participating in Crowdsourcing Week Europe 2015 in Brussels. The conference has an amazing range of speakers from both the public and private sector sharing their ideas about, and experiences from, the Crowd Economy.

My session focused on the critical role of Communities in the Crowd / Collaborative Economy, and covered:

  • Why 20th century businesses aren’t adapting to 21st century realities;
  • Why we need a fundamentally new and more expansive approach to building online communities in our evolving global economy;
  • Emerging opportunities for businesses to create and exchange new forms of value with their communities and in the process, become more sustainable.

Key points detailed below:

  1. Networked Companies Thrive
  2. Connected Customers Create More Value
  3. A Lens on the Collaborative (Crowd) Economy
  4. Crowd, Communities & Collaborative Organization
  5. An Example of a Market Network

1. Networked Companies Thrive
In a recent article from Harvard Business Review, a study between Deloitte and a team of independent researchers examined 40 years of S&P 500 data to examine how business models have evolved with emerging technologies. The study had 3 key findings, including the emergence of a distinct new business model of “Network Orchestrator”. As defined by the study:

Network Orchestrators. These companies create a network of peers in which the participants interact and share in the value creation. They may sell products or services, build relationships, share advice, give reviews, collaborate, co-create and more. Examples include eBay, Red Hat, and Visa, Uber, Tripadvisor, and Alibaba.

Network Orchestrators outperform their peers on revenue and profitability.

2. Connected Customers Create More Value
The 1:1 relationship between a company and a customer is increasingly perishable. The customer is blessed by an abundance of choice in the market, and increasingly (especially for technology) the lifespan of a relationship can last only days, weeks or months — not years. As an example: most software companies are moving from a perpetual license to term-based licensing that can be as short as 24 hours. Creating a great customer experience and minimizing churn are key. One key strategy is to develop customer communities where customers connect to people in the business (as hosts) as well as other customers and prospects (as peers). This creates a network of many to many connections, where bonds strengthen over time and value is exchanged in the form of knowledge, content, advice and help. These communities translate into real value for the customer and for the host business. When I led communities at Autodesk, we found that community members were more loyal and more likely to recommend than non-members. We also were able to quantify cost savings from our support community to be several million dollars. When I led communities at Dell, we discovered our IdeaStorm community members spent 50% more than non-members, and members’ purchase frequency was 33% higher than non-members. Community member ideas from IdeaStorm created $100’s of millions of dollars in revenue in the period between 2007–2011.

3. A Lens on the Collaborative (Crowd) Economy
My POV on the Collaborative Economy is that it is a set of trends, movements and technologies reshaping how we make, market, discover and use products and services. It was born out of the global financial crisis of 2008, enabled by global communications networks and digital technologies, and powered by people. I would also assert that Collaborative Economy initiatives should be focused on sustainable methods and equitable outcomes for all stakeholders.

The purpose of defining, identifying and studying the collaborative economy is to understand how business models need to evolve to thrive in this new economic context. Based on my experience building online communities and collaborative experiences, as well as research I’ve conducted, I’m convinced that a new and comprehensive approach to online communities is the way forward.

An approach where:

  • What we thought of as “social” is really the networked marketplace
  • Your market is synonymous with your crowd
  • Online communities build lasting relationships amongst your customers, prospects, employees and partners and
  • Collaboration looks like a partnership with customers, not an internal social network no one really uses.

There are two great resources I would recommend to see the range of sectors and technologies that make up the Collaborative Economy:
Collaborative Economy Honeycomb – via Jeremiah Owyang / Crowd Companies
The 14 Parts of The Crowd Economy– via Sean Moffitt / CSW2

4. Crowd, Communities & Collaborative Organization
In order to begin exploring business opportunities in the collaborative economy, businesses need to shift their mindset to think about markets as networks. Their total addressable market(s), connected via platforms & social networks.

There are three important contexts to think about in the Network Marketplace:

  • Crowd: A group within a Market Network that has:
    • A shared interest or goal
    • The ability and assets to participate in a shared marketplace, task or activity via common platforms
  • Community A connected & hosted group within a Market Network that has:
    • 1 or more shared interests or goals, leading to shared identity & purpose
    • The ability, motivation and assets to work towards a common purpose over time
    • A host with intention to support & manage community over time
  • Collaborative Organization Collaboration amongst organizations, partners and customers essentially functioning as one organization:
    • Shared IP & Common resources
    • Shared vision of activities and outcomes
    • Shared risks and equitable outcomes

These contexts are not mutually exclusive, meaning, a Collaborative Economy initiative could engage a crowd, community and a collaborative organization context.

Screenshot 2015-10-21 09.45.54

5. An Example of a Market Network
As a thought exercise, I chose Levi’s as a brand to explore opportunities with. Please note: this is not client work.

The three key opportunities I see for Levi’s:
1.
Hosting a peer to peer marketplace where customers can sell / trade used and custom goods, possibly partnering or including listings from external marketplaces.
2. Extending their innovation function online (think a more modern IdeaStorm for apparel), as well as partnering with other communities to develop specific crowdsourcing and challenge initiatives. An example would be partnering with Hackster.io on a smart apparel.
3. Hosting their global fan and denim connoisseur community, while continuing to develop great content on their Unzipped blog. The community feeds all digital activity.

Example of a Market Network

Crowd Market Network Example of “Market as a Network”

My slide deck from my Crowdsourcing Week session:

The Net-net:
Networked companies are more valuable and resilient. Connected customers are more valuable to companies. To create long-term growth in a sustainable way, companies need to evolve their business models to address the “networked marketplace”. A new approach to online communities can provide a path for business model transformation.

Next Steps: I have developed a worksheet, based on my business model innovation workshop, to help businesses begin to explore new Crowd / Collaborative Economy initiatives. Please email me for the worksheet or to discuss participating in a facilitated workshop.

Structure3C Worksheet

New Industry Report: The New Rules of the Collaborative Economy

Jeremiah Owyang of Crowd Companies and Vision Critical have released a follow up report to their 2014 Sharing is the new Buying. In the 2015 report, The New Rules of the Collaborative Economy, over 50,000 people across the US and Canada were surveyed on their attitude towards, and use of, the collaborative economy. There are many clear signals in the report that the Collaborative Economy has shifted from early adopters and is now entering the mainstream. The report indicates that by 2017, 80% of americans will be participate in the Collaborative Economy in some way.

Three key levers were identified that established companies can use to engage in the market that is beginning to be dominated with rising sharing sites: price, brand and convenience.

Key Stats from the Report:

  • The report estimates that by 2017 eight in 10 Americans will participate in the collaborative economy.
  • Financial savings is one of the top drivers of the collaborative economy with 82% of sharing transactions partially motivated by price.
  • 70% of people in the overall population who initially choose the sharing option would consider buying instead, if the buying option were less expensive. A 25% savings would make traditional purchasers consider moving their business to the collaborative economy.
  • The opportunity for big brands is to use price as a lever to retain or win customers in the collaborative economy by creating peer-to-peer marketplaces, allowing customers to purchase and sell pre-owned goods from established brands, or developing offerings that help people maximize the financial benefits of sharing, such as rental models.
  • Established brands are well-positioned to offer greater value to providers in the collaborative economy, of whom barely 60% were “very” or “extremely” happy with their latest transaction. Established brands can thereby attract more providers – and use their brand power to attract more buyers, too.
  • More than a third of traditional buyers will consider home sharing or pre-owned home furnishings if it comes with certification from a reputable brand.
  • The role of brand in the collaborative economy presents an opportunity for large brands to take advantage by marketing on trust or partnering with sharing services to leverage their brand.
  • 78% of sharers indicated that convenience is the most popular reason for using shared services.
  • Across all age groups, about a third of would-be buyers are swayed to consider sharing services if they offer conveniences like next-day delivery or a concierge to provide advice.
  • Convenience is a factor that established brands can compete on, with value-added services that create efficiencies, on-demand access to products and services, mobile apps, and even the sale of locally-sourced and crafted products.
  • Technologies that underpin the collaborative economy decouple convenience from location to an unprecedented degree, yet we found that the desire for local goods was more powerful in driving sharers to buy than in driving buyers to share. As sharing services grow, they will become disassociated with local communities and traditional businesses may be in a better position to provide the convenience of local goods that appeal to community-minded sharers.

The infographic below shares other highlights from the report.

This is a critical read for anyone doing, or planning to do business in the Collaborative Economy. My only criticism (and hopefully an area of coverage in the next wave) is that the report really doesn’t touch on the emerging role of Customer as Creator (Maker) and the value creation that is happening between customers and companies when customers help create the product vs. just sharing goods and assets.

You can download the full report here:
https://www.visioncritical.com/resources/new-rules-collaborative-economy/

If you are interested in more information about how brands are evolving to engage in the Collaborative Economy, I would also suggest:
Brands & The Collaborative Economy Report Preview (Structure3C)