Between the Lines December 2013 Report talking about collaborative economy and its future.

1. Betweenthelines
Report DECEMBER 2013
REPORT NOVEMBER 2013
COLLABORATIVE ECONOMY
AND ITS FUTURE

2. Betweenthelines
Report DECEMBER 2013
1.Collaborative economy
• drivers
• what will be
• what brands can do in colloborative economy situation
2. What is in a future?
• agugment reality and how brands can use it
• new social reality and its consequence for brands
In our first report we would like to introduce you developing connection
between techologies and society, more specifically web 3.0, web 4.0
and social and economical tendencies.
We are going to start with a macro trend that now is started to
develop and in a couple of years will become pure reality –
COLLABORATIVE ECONOMY TREND .
I. What is collaborative economy?
By the Collaborative Economy Coalition:
"Collaborative Consumption, originally coined by Rachel Botsman in
her transformative book «What’s Mine is (Y)ours: The Rise of
Collaborative Consumption», is an economic model that leverages
communities or crowds to rent, share, swap, barter, trade, or sell
access to products or services."

3. Betweenthelines
Report DECEMBER 2013
I.I DRIVERS
All picture credits for Altimeter
I. Societal drivers
-Increasing population density and globalization: private ownership
borders is becoming smoothers, sustainability responsibility is
increasing, people are realizing that some of their needs can be solved
in more eco friendly, one time use ways
-Peter Pan Generation (see our short-term trend article): new
generation that prefer to spend and not saving money and buy
goods, refuse to have property in suburbs and prefer to rent
apartments in city center, they are easy – going and changing
locations, countries. For them is easier to buy some second hand
goods or rent them than buy.
Daily Mail «Generation refuse grow»
II. Economic
-People’s desire of extra income, that gives them feeling of
economical independence
«The best-known example is Airbnb, based in San Francisco, which
has helped 4m people find places to stay since it was founded in
2008—2.5m of them during 2012 alone.»

4. Betweenthelines
Report DECEMBER 2013
«Peer-to-peer car-rental services also provide insurance as part of the
deal. Mr Clark says it took RelayRides 18 months to find an
underwriter for the $1m policy that backs each driver during rentals.
(Much of the 40% commission RelayRides takes on each rental goes
towards insurance.)»
Source 1
Source 2
-Increasing non-cash transaction
III. Combination of societal and economic – urbanistic
-People are continue to moving to big cities, creating a huge
megalopolis communities, changing cities social landscape
Source 1
Source 2
-Community developing – as for a whole history of big cities
establishment citizen’s estrangement was one of the main feature of
cities (In cities there is high people density so that communicate with
everyone would cause psychological and emotional exhaustion, so
basically this emotional coldness is just a self-defense mechanism)
but with people feeling lack of humans touch and sympathy they are
starting to collaborate, first of all among friends of friends,
neighborhoods and after all – wordwilde via technology
Source
IV. Techology
-Payment systems developing
NFC payments
-Social media developing
Source
- WEB 3.0
Web 2.0 vs Web 3.0 and How it is affecting brand's stratigies
Web 2.0 -connecting people to people
Web 3.0 – connecting people to stuff
-sharing, 3d printer
-agugmented reality
-marketplace experience

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Report DECEMBER 2013
I.II WHAT WILL BE
«The rise of sharing requires us to use a new language where «access»
trumps «ownership»; social value becomes the new currency;
«exchanges» replace «purchases»; and people are no longer
consumers but instead users, borrowers, lenders and contributors. All
of this means businesses must redefine their role from providers of
stuff to become purveyors of services and experiences» - Neela
Sakaria, SVP of Latitude
See more
Currency of new way of exchange:
•
MONEY (central reserve currency)
•
ALTERNATIVE: Knowledge, skills, services, material items, time,
reputation & social reach
See more
Collaborative Economy Requires a New Business Mindset: most
representative table by Jeremiah Owyang
Collaborative Economy Requires a New Business Mindset
Company Traditional
Mindset:
Mindset
Social Business
Mindset
Collaborative Economy
Mindset
How they
think:
Customers are in
We must now care about
charge, we’re listening extended life of good after we
Brands are
and will engage. We
sell it, and the
in charge.
care about
relationshipbetween customers.
Deal with it.
your current experience
(PACKAGING, RENTAL
with our goods.
SERVICES SPONSORSHIP)
Strategy
they
deploy:
Brand
Experience
Customer Experience
Marketplace Experience

6. Betweenthelines
Report DECEMBER 2013
All picture credits for Altimeter

7. Betweenthelines
Report DECEMBER 2013
I.III WHAT BRAND CAN DO IN
COLLABORATIVE ECONOMY REALITY?
As percentage of first (directly from brand or official retailers) will be
decreasing brands have to find a way to maintain reputation and
influence at market, that was created by consumers, where
consumers are in charge of prices, experiences and where is no profit
for companies.
1.
Rent your products by yourself.
Why miss opportunity to get extra profit by renting, landing your
products by yourself . Plus consumers more likely will go for this kind
of products to brand itself that to another consumer.
Toyota Rental Service
2.
Prolong brand experience in this new area
by organizing and being a sponsor for civil’s initiatives.
Citi bank launch bike share in New York
Barclay cycle hire in London

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3.
Provide a platform
Kickstarter, ebay, etsy – sharing communities.
My Starbucks Idea from Starbucks
4.
Create your own product live circle
Branded currency
How to stimulate new purchases: new level of gamification is your
own brand currency – earn brand’s «coins» doing brand’s activities
so you can buy new products.
Best ever example is Nike program
On line currency Bitcoin performs better than real exciting currency.
TED «Future of branded currency»

9. Betweenthelines
Report DECEMBER 2013
II. WHAT IS IN A FUTURE?
As we’ve seen in collaborative economy overview one of the most
important drivers is developing of internet. As web 3.0 is almost there,
we wanted to go further and analyze in which direction it will go on and
what will be next step.
II.I WEB 4.0
As Web 3.0 connected people to stuff, Web 4.0 will go further and
connect us to… reality.
Fringe between on-line and off-line is already quite thin and with
technology development it will become almost invisible.
AGUGMENT REALITY is a trend that leads us to this
conclusion.
The Guardian about agugment reality 1&2
HOW CAN BRAND CAN USE IT?
I.
Studies and travelling
Wikitude - travelling agugment reality application that is intergrated
with tripadviser, twitter, Hotels and more.

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II.
Printed media and advertisment
Dunill agugment reality printed advertisment demo
Heinz aggugment reality packaging promo
Layar, the world's #1 augmented reality application for iOS and
Android
Drivers for agugment reality growth - technology
Google glass – first affordable step.
FORBES «Google likely to shatter the price of glass»
News about google glass applications
FORBES graphic techologies expectations

11. Betweenthelines
Report DECEMBER 2013
II.II NEW SOCIAL REALITY AND ITS
CONSEQUENCE FOR BRANDS
As BetweentheLines Team is really curious we decided not to stop at
this half-step-point and try to understand WHAT WILL HAPPEND
IF TECHNOLOGY WILL BE ABLE TO INTERRACT NOT
ONLY WITH PHYSICAL OBJECTS (LIKE WITH AGUGMENT
REALITY) BUT WITH DATA AND PEOPLE'S MIND.
During research we founf out that this kind of technologies already
exist – like with all other innovations Military segment is the first to
adopt it.
TECHNOLOGIES AND WAY OF COMMUNICATING
With arrival of MEDIA material production gave its place to non
material. And new need of area of saving and transaction information.
Firstly it were computer to computer network and tham finally Internet
arrived. Within 10 years new step was made – social media and
social networks. And what is really innovative in them – they have
capability to self regulation and organization, they can create goals into
their system and new algorythm of making descions. That's what
made analytics think that social networks could change non-material
production.
Concept Power to the Edge was discribed in book by Dr. David
S. Alberts and Richard E. Hayes and it can be applied not only to
army but for every type of business in this new information era.
As everything changes so fast nowadays sucess of business can be
depended only at one person. That means end of centralisation and
scales of rank.
McKinsey&Company «The social economy: Unlocking value and
productivity through social technologies»
Same can be imagine with a society: no more top, middle class and
mass market – consumers already mixing products from different
segments, not being ashamed of second-hand and mass market.

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Report DECEMBER 2013
They will be more in a community organization, probably connected
with their living area principle.
Power-to-the-edge 1) all commissions are delegated to executirs,
collaboration instead of scale. 2) innovations will allow to combine
computers and humans minds 3) open information field – fast and
everywhere (google glass + all references in social networks)
Future is collective knowledge, that can’t be achieved by one
person, so new way of motivate employees is ask them to share
information as much as they can. The whole way of how and
why to communicate will be changed, that will affect changes in
people’s value system.
SOCIETY
«Bobos» - coinage by David Brooks is an abbreviated form of
words bourgeois and bohemian – fusion of two social classes that
were in «war» for the past century. This new upper class now is a
leading power to society and culture.
In his book «Bobos in paradise» Brooks describes class inner conflict:
bobos were fighting for freedom and multiplicity so hard that
eventually their individualism in everything they do and decide leaded
to nostalgia for traditions, fundamental connections and
communities . And how to «marriage» individualism and this thirst
for groups and deep connections?
Local communities with their farm markets, coffe shops where you can
meet your neigbours and – all collaborative economy functioning
examples are taking their roots from this nostalia.
Theoratically that kind of conflicts can lead to massive changes in
society structure, but as we see so far bobos found a way to smooth
it. And power-to-edge will only help to strengthen connections and
way of communication.

13. Betweenthelines
Report DECEMBER 2013
WHAT IT WILL BE FOR SOCIETY AND BRANDS
Company Mindset
How they think
Strategy they deploy
Collaborative
Thinking about ways to
prolong product’s life.
Marketplace experience
Power to the Edge
Consumer is more than
friend – he is a partner.
Service is more
important than a
product. Brands should
be involved in sharing
ALL information –
reputation is the inly
currency. Collective and
community approach. It
is not about
personalization
anymore, but about
helping, creating a
community and brand’s
impact in communities.
Community experience.
Skills and services
experience.

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Other sources
http://blogs.wsj.com/cio/2013/08/16/the-collaborative-sharingeconomy/
Altimetr.com
Dailymail.com
guardian.com
Forbes.com
mashable.com
McKinsey&Company.com
Allthingsd.com
Slon.ru
Bobos in paradise David Brooks