The Future of the Business Model

By Jeremiah Owyang, Chief Catalyst

Question: How can brands be resilient during times of

great change?

1. How have business models been

disrupted?

2. What are the changes companies

must make?

3. Which brands are leading with new

business models?

QUESTIONS WE’LL ASK AND ANSWER

BUSINESS IS CHANGING

DISRUPTION HAS BEGUN

Do you remember when Social Media meant that sharing ideas

disrupted the media and communications industry?

DISRUPTION CONTINUES

The next phase of sharing is taking place in the physical realm.

People are sharing goods, services, time, space and money.

ECONOMIC UNCERTAINTY GIVES US PAUSE

Governments and businesses struggle to find a clear economic path,

while people are learning to depend on each other to be self-sufficient.

TECHNOLOGY POWERS PEOPLE TO BE SELF-EMPOWERED

New startups are using powerful social data, mobile apps, and

smart phones to enable people to connect to each other.

PEOPLE ARE BECOMING LIKE COMPANIES –

BYPASSING TRADITIONAL CORPORATE MODELS

Hotels

vs.

Taxis

vs.

Restaurants

vs.

EVEN “OCCUPY” HAS A BUSINESS MODEL

These new sharing startups enable people to get what they need

from each other instead of from big corporations.

Source: Digital Trends

BIG COMPANIES ARE SLOW TO CHANGE,

LEAVING THEM VULNERABLE

NEW MARKET DESIRES

CHANGE BUSINESS METHODS

THE OLD WAY THE NEW WAY

1. Maximize profit

2. Global Marketplaces

3. Standardize Offerings

4. Slow delivery of goods

5. Consumerism

6. Passive customers

1. Purposeful brands

2. Local (and Global)

3. Personalize

4. On-demand

5. People make & share

6. Empowered people

Deloitte studies show that “Millennials” seek companies

that have a purpose and social mission beyond just profit.

1) PEOPLE WANT A PURPOSE

They are about one-third of the

American workforce.

Boomers seek to retire soon.

They want companies

with a purpose.

They seek

sustainability.

Sharing startups, like Airbnb, Uber (funding over $260m by Google),

Google Shopping Express and Postmates, deliver goods and services

at the local level.

2) LOCAL MARKET DELIVERY TRUMPS GLOBAL

Uber moves idle goods at local

levels to be delivered to others

on demand.

Uber can start to

compete with

Amazon.

Local

merchants and

homes win.

People can now make and customize their own goods using

Shapeways 3D-Printing service. CustomMade is a network of “Makers”

that are ready to produce to scale.

3) PERSONALIZED GOODS AND SERVICES

More products will soon be

customized to your needs and

preferences, printed on demand.

Online marketplaces

like Etsy and

CustomMade scale.

One size no

longer needs

to fit all.

Location-based apps and mobile devices empower local delivery on-

demand. Uber, Google, eBay, Walmart, PostMates, Instacartand Deliv

power instant to hourly delivery.

4) ON-DEMAND MEANS THAT REAL TIME MATTERS

A battle over same day delivery is

happening between Google,

Walmart, eBay and others.

Amazon’s fulfillment

centers must compete

with local.

The crowd speeds

delivery, enhancin

g service.

People are consuming less. Instead, they are using marketplaces to

re-use and recycle. Those that can make, will buildand share.

5) DON’T CALL THEM CONSUMERS.

THEY MAKE AND SHARE.

People can now re-use goods

using Nextdoor.com and

Yerdle.com to gift to friends.

Techshop enables people

to become Makersof their

own products.

The crowd

functions like a

company.

The people have become like a company, getting what they need

from each other and bypassing inefficient institutions.

6) THE CROWD IS EMPOWERED

Using social networks, they

connect with each other instantly.

They are becoming

like a powerful

company.

The crowd

functions like a

company.

WHAT COMPANIES ARE

LEADING THE CHARGE?

THESE BRANDS THAT

ENABLE SHARED VALUE:

PURPOSEFUL BRANDS PROVIDE SHARED VALUE

Millennials (and beyond) want companies to have a purpose.

Corporations must think more about community and environment.

GIVE PEOPLE PURPOSE

Toyota 100 Cars for Good Program –The program awards 100 vehicles to 100 deserving nonprofit organizations

over the course of 100 days based on votes from the public.

MISSION-DRIVEN FUELS SOCIAL ADVOCACY

Pepsi Good is a community of people who have a purpose.

ENABLE THE CROWD TO CONTRIBUTE

The crowd chooses how funds are distributed to non-profits in

this example of Barclays.

ENABLE THE CROWD TO CONTRIBUTE

GE partners with Quirky for crowd innovation.

CROWD FUNDING MEANS SHARED RESULTS

– THE HIGHEST STATE OF LOYALTY

U-Notes are sold in increments of $100 over the Internet with

an asset-backed feature and make quarterly payments

(interest and principal).

RECYCLING HARNESSES NEW BRAND LOYALTY

H&M encourages recycling of old clothes to reduce the

environmental impact of the fashion industry.

PRODUCTS FOR RENT – NOT JUST FOR SALE

People can rent cars from BMW with the DriveNow

program, instead of buying a car.

EXPERIENCES ON-DEMAND

FUEL NEW BUSINESS MODELS

W Hotel and DesksNearMe partner for on-demand workspaces.

GENTLY WORN MARKETPLACES TAP MOVEMENT

Patagonia partners with eBay to encourage

second-hand usage of goods – beyond selling new.

LOCATION-BASED TECHNOLOGY

ENABLES SHARINGRelayRide enables people to share privately owned cars, using OnStar.

NBC SPONSORS GIFT ECONOMY

Yerdle.com is a place where thousands of people give and

obtain things for free from neighbors – avoiding retailers.

REAL TIME DELIVERY FROM LOCAL MERCHANTS

Google Shopping Express provides local delivery from

merchants, challenging Amazon. Rapid delivery, right to your home.

RETAILERS PARTNER WITH ETSY “MAKERS”

Etsy and West Elm have partnered to discover emerging artists.

MAKERS EXPAND PRODUCT EXPERIENCE

A community of Makers from CustomMade has partnered with

Lincoln Motors to build matching jewelry for new car owners.

CROWDS ARE BECOMING LIKE COMPANIES

Co-funding new products like Kickstarter.

NIKE CO-OPS PRODUCT DESIGN WITH CROWD

Nike offers co-design products, allowing you to customize the shape, color,

style, and fit, with thousands of options available, personalizing at scale.

BRANDS ENABLE 3D PRINTING FOR MASS

PERSONALIZATIONNokia offers 3D files, enabling custom cases to be printed at Shapeways

THE OLD WAY THE NEW WAY

1. Maximize profit

2. Global Marketplaces

3. Standardize Offerings

4. Slow delivery of goods

5. Consumerism

6. Passive customers

1. Purposeful brands

2. Local (and Global)

3. Personalize

4. On demand

5. People share/make

6. Empowered people

ONCE AGAIN….

Companies that meet these

new market needs, become

Resilient Brands

They are:

innovative, agile, empoweri

ng, built to last, and

profitable.

• The market seeks purposeful brands,

local, personalized, on-demand models.

• The crowd is becoming like a company –

bypassing inefficient corporations.

• Corporations must use these same

strategies and tools to regain relevancy.

• To do this, companies must embrace a

business model change.

• Corporations that partner with the

empowered people become resilient.

FINAL TAKEAWAYS

Takeaway: Brands achieve Resiliency by collaborating

with the empowered people for shared value.

Crowd CompaniesEmpowered People & Resilient Brands

for Shared Value

Jeremiah OwyangChief Catalyst, Founder

@jowyangJeremiah@crowdcompanies.com