Lecture 6 collaborative consumption and creating shared value using onlne services (24104) v1

Collaborative consumption and creating shared value using online services:

Convergence of Social Media and Supply Chains

Dr Suresh Sood

Email: suresh.sood@uts.edu.auLinkedIn: sureshsood

Skype: sureshsoodTwitter: soody

Google +: http://gplus.to/soody

Service-Dominant Logic

• A logic that views service, rather than goods, as the focus of economic and social exchange i.e., Service is exchanged for service

• Essential Concepts and Components– Service: the application of competences for the benefit of another entity

• Service (singular) is a process—distinct from “services”— particular types of goods – Shifts primary focus to “operant resources” (skills and knowledge) from

“operand resources” (static and tangible)– See value as always co-created (Market With

i.e. Collaborate with Customers & Partners to Create & Sustain Value)– Sees goods as appliances for service delivery– Implies all economies are service economies

• All businesses are service businesses

Vargo, S.L. and R.F. Lusch (2004). “Evolving to a New Dominant Logic for Marketing, Journal of Marketing 68(January): 1-17 2

Collaborative Consumption

barteringgiftinglendingrentingSharingswappingtrading

via online services

Evil Plans: Having Fun on the Road to World Domination by

Hugh MacLeod (Kindle Edition - Feb 17, 2011)

Purpose Motive Linux-Apache-Wikipedia

Drive #1: Eat when we’re hungry. Drink when we’re thirsty. Etc.

Drive #2: Respond to rewards and punishments in our environment.

Drive #3: We do things because they’re interesting and because they’re engaging and because they’re the right things to do and because they contribute to the world. (!!!)

“Our Third Drive, intrinsic motivation, is the most powerful.”

Drive: The Surprising Truth About What Motivates Us, Daniel Pink, Riverhead 2009

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Direct Value of Social Media in Supply Chain

• Delivery & Collection points => Social Network

• Listen to market conversations via social media and feed forecast demands

• Real time efficient communication within supply chain

• Crowd source excess or underutilised inventory • Trends in web search query data and social media

– Useful in providing models of real world phenomena

– Social media provides insights purchasing intentionality

• Shift to Service Dominant Logic (Lusch 2011)

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Busting Business Models via Collaborative Consumption (CollCons)

3 Sub Markets of CollCons (Rachel Botsman)http://www.collaborativeconsumption.com/the-movement/snapshot-of-examples.php

Product Service Systems

Pay for the benefit of using a product without needing to own the product outright. Disrupting traditional industries based on models of individual private ownership.

Redistribution Markets

Redistribute used or pre-owned goods from where they are not needed to somewhere or someone where they are

Collaborative Lifestyles

It’s not just physical goods that can be shared, swapped, and bartered. People with similar interests are banding together to share and exchange less tangible assets such as time, space, skills, and money.

Source:

http://meshing.it/companies

• platform facilitates carpooling and carsharing

• put passengers in touch with drivers – who are free to put

a price on the rides they offer

• 100,000 passengers find rides through Comuto per month

• traffic has doubled since volcanic eruption in Iceland

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The 3 Golden Rules of Sharing

1. Play nice.Helping others has been scientifically proven to reduce stress and

increase happiness. Play nice. It feels good.

2. Treat other people's stuff the way you'd like your stuff to be treated.You know

what to do. If you get something dirty, clean it. If you break something, replace it.

3. Show up on time.People are busy. Be clear and detailed with your plans to meet

up to exchange items. Show up at the agreed meeting time. Be sure to share phone

numbers just in case you're running late.

Leading social Platform for Peer-to-Peer Borrowing and Lending

Transaction is the Social Conversation

Trust

Nascent Stream of Research

• Beyond supply chain research using network analysis and dynamic visualisation

• Application beyond physical goods to share and exchange of skills and knowledge

• Shift from existing supply chain to socially sustainable or innovate business model ?

• Importance of trust

• Blending social conversations and transactions

• Effectiveness of social media driven forecasts

• Disposability or Reusability ?

• Transformation of public services e.g. buses

• Independent Moderating Dependent

Sharing

Human to HumanNetwork Community Social Media

Online networkB2B and B2CRules Traceability

Virtual logistics Conversations• Crowdsourcing• Forecast• ATP• Surprises

Collaboration

UnderutilisedPhysical Goods

Excess InventoryPhysical Goods

TrustOxytocin

Skills andKnowledge

Transaction Cost

Collaborative Consumption

Social Capital

Sustainability/Green

Framework for Socially Sustainable Supply (S3) Networks

Pay for Use

Where to next ?

Source: Botsman (2012) Welcome to the new reputation economyWired magazine 20 August 2012

Digital trustworthiness ?The Aggregation of online reputation

Source: Botsman (2012) Welcome to the new reputation economy, Wired magazine 20 August 2012

Quora Demonstrates expertise to recruiters

Stack Overflow Future job

Airbnb Trusted renter WhipCar

Ebay feedback Etsy

Social influence Credit

Source: Botsman (2012) Welcome to the new reputation economy, Wired magazine 20 August 2012

Bank 2.0

CRED (credibility) =

( credit score, eBay rating, P2P money transfers,Facebook friends, LinkedIn connections, Klout, referrals, bill payments)

Reputation transfer between verticals“Paypals of trust”

Source: Botsman (2012) Welcome to the new reputation economy, Wired magazine 20 August 2012

Briiefly

Confido

Connect.Me

Legit

Reputate

Scaffold

Tru.ly

TrustCloud

TrustRank

WhyTrusted

# social influence

Kred

Klout

PeerIndex

10 Step reputation capital

Source: Botsman (2012) Welcome to the new reputation economy, Wired magazine 20 August 2012

1. Maven2. Tagging3. Super “something”4. Portfolio of online value5. Trusted opinions – LinkedIn6. Deep social network7. Review and recommend8. Profile monetisation ( IMVU , Linden, Fbook credits)9. Reputation cleanup (Reputation.com or Veribo)10. Social capital

How much is reputation capital worth?Good reputation activates reward related brain areas (striatum)

Sources: Botsman (2012) Welcome to the new reputation economy, Wired magazine 20 August 2012

Neuron, Vol 58, 284-294, 24 April 2008Processing of Social and Monetary Rewards in the Human Striatum

Keise Izuma,Daisuke N. Saito,and Norihiro Sadatohttp://www.neuron.org/content/article/abstract?uid=PIIS0896627308002663

The merged image (fMRI) of two images of the striatum activated by monetary (green) and social (purple) rewards