The next digital/social revolution is the 'Collaborative Social Economy.
The Collaborative Social Economy is an economic model where ownership and access are shared between people, startups, and corporations
Social technologies radically disrupted communications, marketing, and customer care. With these same technologies, customers now buy products once and share them with each other. Beyond business functions, the Collaborative Economy impacts core business models. The real point is that in-the-large it appears to be a broad demographic digital business trend. The current value of the Collaborative Economy at $26 billion today, with other data showing it growing overall at a 25% year-over-year rate. 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.
The basic idea of the Collaborative Economy, like so many major shifts, is actually pretty simple: The world has started moving beyond the simple mass sharing of ideas and media over the Internet. Instead, we have now begun sharing products and services directly with each other en masse using the same social media principles. The early evidence is starting to support, that this will be much more disruptive than the first wave of social media was.
Right now, customers are sharing media and ideas on social technologies, in the near future, they’ll use similar technologies to share products and services, which will cause a ripple of impacts far more disruptive than what we’ve seen before.
Business Ecosystem - Power to the many.
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.
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.
Don't compete with your customers, cooperate with them
Networked social businesses focus on cultivating communities , fostering co-creation, and optimizing shared value, wherever it lies, instead of just creating and selling things. These are also the core skills of Collaborative Economy startups. 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. From a customer and corporate perspective both, that may not at all be a bad thing.
A typical example of a high impact Collaborative Economy startup is Airbnb,
the 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 to 200,000 people per night. In comparison, the global hotel megachain Hilton has only 600,000 rooms.
As social media became a primary means of communication in the consumer world, a similar transformation would inevitably happen in the workforce. The associated benefits, such as more shared and open work processes, the accumulation of actionable collective intelligence, improved expertise location, and much more were expected. It would be a challenge for some organizations, as social media is largely a consumer-driven phenomenon, but it would happen.
Digital transformation, a top priority in most organizations these years, now centrally involves the cloud.
Company-as-a-Service, Motivating a Marketplace and Providing a Platform.
The world becoming flat once more.
- Business Ecosystem
- IaaS, PaaS, SaaS, XaaS
- Internet of Things
- Big Data and Analysis
- Collaborative Economy
- Sharing Economy
- Workforce Collaboration
- Business of Social Currency
- API server and Directory
- Social currency
- And so on – opportunity limitless
Companies risk becoming disinter mediated by customers who connect with each other.
The Collaborative Economy Value Chain illustrates how companies can rethink their business models by becoming a Company-as-a-Service, Motivating a Marketplace and Providing a Platform
An economic community supported by a foundation of interacting organizations and individuals—the organisms of the business world. The economic community produces goods and services of value to customers, who are themselves members of the ecosystem.
Today’s organizations operate in a more complex world. They integrate competition and cooperation in innovative and unexpected ways and they need each other in order to survive.
We’re all familiar with ecosystems in the natural world.
The word was coined in the 1930s by British botanist Arthur Tansley to refer to a localized community of living organisms interacting with each other and their particular environment of air, water, mineral soil, and other elements. These organisms influence each other, and their terrain; they compete and collaborate, share and create resources, and co-evolve; and they are inevitably subject to external disruptions, to which they adapt together.
Successful businesses are those that evolve rapidly and effectively. Yet innovative businesses can’t evolve in a vacuum. They must attract resources of all sorts, drawing in capital, partners, suppliers, and customers to create cooperative networks. . . . A company be viewed not as a member of a single industry but as part of a business ecosystem that crosses a variety of industries.
In a business ecosystem, companies co-evolve capabilities around a new innovation:
They work cooperatively and competitively to support new products, satisfy customer needs, and eventually incorporate the next round of innovations.
Initially the concept of “business ecosystems” was embraced primarily in the community that was itself creating the transformative capabilities of connection and collaboration that enabled them.
Ecosystems are dynamic and co-evolving communities of diverse actors who create and capture new value through increasingly sophisticated models of both collaboration and competition.
On top of the open web a small number of giant, corporately run, proprietary systems and networks have come to dominate. Google accounts for 65 per cent of all search in the US, and 80 per cent in Europe. As of the third quarter of 2016, Facebook had 1.79 billion monthly active users. Amazon now reaches almost half of all US households. To be clear, all these services – and other well-known examples like them – have delivered extraordinary benefits to their users. Yet they represent an unprecedented concentration of power in very few hands.
There are two dominant narratives about the institutional changes we are experiencing and neither one of them gives anyone much respite: The first is that companies will fragment to smaller and smaller entities and even down to individual providers; the second is a winner take all world where only the largest survive. We believe that both of these narratives are too simplistic. We see a world where both of these narratives co-exist and are mutually reinforcing rather than conflicting. Scale and fragmentation interact in a symbiotic relationship where the growth of each is what drives the growth of the other.
Platform used in our means that the area is built on services-based principles and architecture.
The goal is to create an interoperable set of services that can be brought together to create applications, apps and workflows. This creates a symbiotic collection of technology capabilities and components that form a platform. A services-first versus applications-first mindset is one of the main attributes of a loosely coupled, interoperable platform. Think of Lego blocks (services) that can be easily rearranged to meet any need. The openness and composite nature of a platform is ideally suited to the external-facing capabilities required by new digital business processes, moments and models.
Building a Digital Business Technology Platform
A digital business is supported by technology platforms in ve areas:
■ Information systems platform — Supports the back ofce and operations, such as ERP and core systems.
■ Customer experience platform — Contains the main customer-facing elements, such as customer and citizen portals, multichannel commerce and customer apps.
■ Data and analytics platform — Contains information management and analytical capabilities. Data management programs and analytical applications fuel data-driven decision making, and algorithms automate discovery and action.
■ IoT platform — Connects physical assets for monitoring, optimization, control and monetization. Capabilities include connectivity, analytics and integration to core and OT systems.
■ Ecosystems platform — Supports the creation of, and connection to, external ecosystems, marketplaces and communities. API management, control and security are its main elements
Digital business is the creation of new business designs by blurring the boundaries between the digital and physical worlds due to the convergence of people, business and things. To cities, digital business means smart cities with connected parking, facilities and services. To manufacturers, digital business can mean connected factories and the industrial internet. To others, the notion of ecosystem or platform businesses (such as Airbnb and Uber) come to mind. Regardless of the variety of digital business, most enterprises do not have the technology components to support the new capabilities and models. A digital business requires much more than technology (for example, leadership, talent and skills, and new business models). All of these areas are covered in "Building the Digital Platform.
APICENTRUM.com - as a API Business Hub. (AaaS)
This is what makes the Cloud Platform an open platform and ecosystem that customers and 3rd parties can build upon. It provides a central catalog of development interfaces (APIs) for cloud services. This makes cloud much more open, compelling, and useful to organization than it would be otherwise.
In the world of Cloud Computing the collaboration has come to refer to a set of tools or applications that facilitate it. Organisations embrace remote working, collaboration tools enable geographically diverse workers to access business-critical data and applications anywhere, any time and on any device. More powerful devices, greater 4G coverage and ubiquitous broadband services have seen real-time communications (Skype, IM, WebEx) begin to replace any-time communications (email, voicemail) as the media of choice.
SaaS, and social software ushered in a wave of major change in the workplace, that's nothing compared to what's coming. Businesses are moving beyond traditional industry silos and coalescing into richly networked ecosystems, creating new opportunities for innovation alongside new challenges for many incumbent enterprises.
- An infrastructure and operations perspective (e.g., data centers, networking and cloud) — it will be an important enabler of digital business.
- A data management and retention perspective — The framework does not dictate how and where data is cleansed, moved and stored, although it assumes that data management is at least a formal program and is covered by policy. Information and semantics integration and consistency must be covered.
- A security, risk and compliance perspective — Enterprises building a business technology platform need to understand their risk tolerance and effectively implement the security controls to balance between exposing information to exploit digital business moments while mitigating the risks that can create. In many industries, there are regulatory compliance requirements that may influence the platforms (e.g., the need to keep customer data solely in the enterprise as opposed to keeping it with ecosystem partners)
- A comprehensive integration strategy — Successfully building a digital business technology strategy will hinge on an enterprise's ability to define an approach to integration that allows for maximum flexibility to support shifting business demands.
- Insourcing, outsourcing, as-a-service and cloud sourcing guidelines — All of the capabilities in the platform can be sourced from any combination of internal resources or external partners.
The message here is clear:
The cloud is the doorway through which the future of enterprise technology lies. It's a vision that is unapologetically cloud-first, app-centric, mobile-friendly, increasingly open, and even democratized. The aforementioned strategic emerging technologies of today, including IoT, artificial intelligence/machine learning, and the ever-growing and specializing world of big data analytics, all as Platform-as-a-Service (PaaS.)