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HEC Digital Business. Sharing Economy and other trends

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HEC Digital Business. Sharing Economy and other trends

  1. 1. Digital Business 2015-2016 Sharing economy and other major digital trends 1st Master HEC-Ulg André Blavier 1
  2. 2. 1. Introduction to the course. Tools for your technology watch. 2. Introduction to the digital transformation. Data, Cloud, Social, mobile, GAFA, NATU, Giga economy, … 3. The digital platform. Web standards, API, apps, cloud based, (big) (open) data, … 4. E-business & digital marketing. SEM & content, permission, social, mobile, … 5. Data, Cloud and Sharing economy Your company facing the digital disruption, … 6. Digital business. Perspectives from the algorithmic world. Focus on the media sector and the industry 4.0, … 2 Table of content (adapted)
  3. 3. Mobile Smartphones, tablets, IoT, Internet of Everything, … Permanent connectivity and interactivity blur the boundaries between real and virtual worlds. Mobile technologies are the medium of the digital transformation Cloud Unlimited development and storage capacities “As a Service” unlock the creation and deployment of digital projects on an unprecedented scale . Cloud computing is the platform of the digital transformation Empowerment Social technologies disrupt the traditional relationships and pyramidal organization of our society. They enable the disintermediation of organizations. Empowerment is the crowd driving the digital transformation Data Global, customizable, open, ... Their activation allows to consider the world from a complete new algorithmic and predictive point of view. Data are the fuel of the digital transformation 3
  4. 4. 4 Big Data. Collection of data sets so large and complex that it becomes difficult to process using on-hand database management tools or traditional data processing applications. The challenges include capture, curation, storage, search, sharing, transfer, analysis and visualization. http://en.wikipedia.org/wiki/Big_data Analytics. Discovery and communication of meaningful patterns in data. Especially valuable in areas rich with recorded information, analytics relies on the simultaneous application of statistics, computer programming and operations research to quantify performance. Analytics often favors data visualization to communicate insight. http://en.wikipedia.org/wiki/Analytics
  5. 5. 5Source : IBM The 4 V’s of Big Data. Volume
  6. 6. 6Source : IBM The 4 V’s of Big Data. Variety
  7. 7. 7Source : IBM The 4 V’s of Big Data. Velocity
  8. 8. 8Source : IBM The 4 V’s of Big Data. Veracity
  9. 9. Value. Data in itself is not valuable at all. The value is in the analyses done on that data and how the data is turned into information and eventually turning it into knowledge. The value is in how companies will use that data and turn their organization into an “information centric” company that relies on analytics and algorithms for their decision-making and business transformation. Visualization. Another challenge is to make a vast amount of data comprehensible in a manner that is easy to understand and read. With the right analyses and visualizations, raw data can be put to use otherwise raw data remains essentially useless. Visualizations do not mean ordinary graphs or pie charts. They mean complex and dynamic graphs that can include many variables of data while still remaining understandable and readable. 9Adapted from datafloq.com … but also 2 other “V’s”
  10. 10. • Making information more transparent. In the public sector in particular, making data more accessible will significantly reduce searching and processing time. • Segmenting target audiences to customize the offer. Data volumes allow more segmentation and tailored services matching the most specific needs of customers. • Better decision making with algorithms. Significantly improve decision making. Minimize risk-taking. Identify information with high added value. • New business models. Using data from crowdsourcing to improve product development and to create innovative services. 10Adapted from datafloq.com “Classic” challenges of Big Data
  11. 11. 11Source : Gartner Data : 4 types of analytics capabilities
  12. 12. ... customer churn ... sales revenue ... equipment failure …market volatility ... response to a marketing offer ... fraudulent claims ... cybersecurity breaches ... workforce attrition ... freight cost … credit risk 12Source : Gartner Predictive Analytics Predictive models Common Techniques Regression Decision trees Neural nets Ensemble models
  13. 13. ... assign optimal price ... find the best route ... schedule resources ... give customers the best next offer ... allocate limited resources … optimize marketing mix ... acquire a company … select a site for a power plant … decide where to drill for oil 13Source : Gartner Prescriptive Analytics Decision Models Common Techniques Optimization Linear programming Constraint programming Decision management
  14. 14. Data are nothing … … if they are not activated by algorithms ! 14
  15. 15. 15Source : Gartner 3 core skills needed
  16. 16. • Cloud computing changes the way we think about technology. Cloud is a computing model providing web-based software, middleware and computing resources on demand. • By deploying technology as a service, you give users access only to the resources they need for a particular task. This prevents you from paying for idle computing resources. Cloud computing can also go beyond cost savings by allowing your users to access the latest software and infrastructure offerings to foster business innovation. • “Pay as you go” model. • Public and/or hybrid and/or private clouds. • XaaS : SaaS, PaaS, IaaS, … • API (Application Programming Interface). 16 Cloud computing
  17. 17. 17 Cloud computing. A model for delivering IT services in which resources are retrieved from the internet through web-based tools and applications, rather than a direct connection to a server. http://www.investopedia.com/terms/c/cloud-computing.asp API (Application Programming Interface). An API specifies how some software components should interact with each other. It comes in the form of a library that includes specifications for routines, data structures, object classes, and variables. http://en.wikipedia.org/wiki/Application_programming_interface
  18. 18. 18Source : Gartner Distinctions between cloud deployment models and service types are blurring
  19. 19. “Classic” devices Industry { }{ }{ } ChipsCars SQL / NO SQL Databases Servers & Applications Modern Brower AppAppAppAPI / JSON{ }{ }{ } Data Social Smart Home Smartcities Wearables Hybrid Cloud Global computing platformHybrid Cloud, industry 4.0, no sql, REST, JSON, jQuery, Backbone JS, … Programmable WebCloud, API, apps, Open/Big Data, Chrome, HTML5, Responsive Design, IOT
  20. 20. 20 Communism ;-)
  21. 21. • Highly Empowered and Resourceful Operatives. • New innovators in companies and organizations. • Heavily involved in the creation, development and launch of projects with high added value and based on intensive use of ICT resources (especially from the Cloud). • The world of education has to prepare a digital revolution and to adapt its transmission of knowledge to the new needs of the professional world. 21 We can be HEROes
  22. 22. • Distributed co-creation is a the new model. • Thanks to cloud computing, data, mobile and social technologies, the ability to organize online communities, to develop, and to commercialize new products and services, is moving from the professional sphere to the public sphere. • Employees are members of these 2 worlds now subject to a stronger and more balanced interaction. • BYOD / BYOA ... Bring Your Own Device / Application. • The company must identify the activities of its employees around ICT and establish internal collaborative processes to support the development of these activities. 22 Co-creation
  23. 23. 23 Cloud computing. Also known as collaborative economy. Hybrid market model, in between owning and gift giving, which refers to peer-to-peer-based sharing of access to goods and services, coordinated through community-based online services. https://en.wikipedia.org/wiki/Sharing_economy
  24. 24. A social and economic system driven by digital technologies that enable the sharing of assets from space to skills to objects to money in ways and on a scale never possible before. Social (and ICT) technologies radically disrupt communications, marketing, and customer care. With these same technologies, customers now buy products once and share them with each other. The sharing economy impacts core business models. 2 main principles : • shared access is better than individual ownership; • shift from products to services based on reciprocity. … I want to do things, not to own things. 24Adapted from www.euro-freelancers.eu & www.altimetergroup.com The rise of the sharing economy
  25. 25. Me >< Ownership >< Global >< Centralized >< Competition >< Enterprise >< Ads & marketing >< Credit >< Money >< B2B & B2A >< (Hyper) Consumption >< Us Access and service Local Distributed Collaboration People Community Reputation Value P2P Collaborative Consumption Adapted from www.euro-freelancers.eu 25 Values of the sharing economy
  26. 26. • Increasing population density. Population density enables sharing to occur with less friction. Access to more people mean more points of supply. • Drive for sustainability. There is growing awareness about the environmental impact of our consumption habits. Reselling, renting, co-owning, or gifting maximizes usage and reduces the impact of physical goods that were once bought and discarded after limited use. • Desire for community. A latent desire to connect with people and communities is re-surfacing. Individuals can now bypass faceless brands as they transact with each other. • Generational altruism. The internet is a persuasive technology. It teaches people the power of sharing and collaboration. Once people experience that power, it’s natural to apply the same logic. 26Adapted from Altimeter Group Sharing economy : societal drivers
  27. 27. • Monetize excess. Anytime there is a resource that stays idle for much of its lifetime, there is an opportunity to take advantage of it. • Increase financial flexibility. As owners begin to find uses for idle inventory, the possibility emerges for earning income and gaining greater financial independence and empowerment. It’s a new world of the perpetual freelancer and micro-entrepreneur. • Access over ownership. Individuals who can’t afford luxury goods can now rent them. Businesses can hire on demand workers or rent on-demand space. We’re moving to a world where access to goods, services, and talent triumphs ownership. • Influx of VC funding. Investors are key to the rise of the Sharing Economy. In other internet-related markets, VC funding has already been a core force for the growth of an industry. 27Adapted from Altimeter Group Sharing economy : economic drivers
  28. 28. • Social networks. Social networking facilitates peer-to-peer transactions by matching up supply and demand that wasn’t previously possible. They help build trust between buyers and sellers. • Mobile devices and platforms. Many startups in the Sharing Economy are mobile-driven. The rise of smartphone adoption means that customers can increasingly offer or locate goods and services anytime, anywhere. • Payment systems. E-commerce and payment platforms are required to broker transactions between buyers and sellers. In the future, new forms of value will include nontraditional currencies or new forms of measurement that account for resale or multiple users in the total cost of ownership. 28Adapted from Altimeter Group Sharing economy : technology drivers
  29. 29. 29Adapted from Altimeter Group Desintermediation (“uberisation”) Hospitality. Homeowners displace hotels. They can monetize their extra space by renting out rooms or homes to travelers from around the world. Labor. Marketplaces empower workers to find virtual work and managers to hire on-demand staff. Businesses and individuals are connecting to employees on their own. Office rental. Companies offset costs by renting space from and to each other. This growing marketplace enables on- demand, ad-hoc workspace rental in a pay-as-you-go transaction. Banking. Consumers skip the bank. P2P lending and crowdfunding services sites enable consumers to lend directly to each other and to bypass traditional financial services. Transports. Every car-sharing vehicle replaces 9-13 vehicles, reducing the number of hours a car sits idle in a garage or parking lot and car ownership overall. Products & Apparel. Consumers can now rent or exchange any number of physical goods instead of buying them from traditional retailers. H F  G
  30. 30. 30 www.kickstarter.com Kickstarter is a new way to fund creative projects. Kickstarter is full of projects, big and small, that are brought to life through the direct support of people like you.
  31. 31. • Zipcar Partners With SNCF to Offer New Mobility Solution in France. • Maven, the new service from GM is the latest in a string of moves by the automaker including a $500 million investment in Lyft. • Citigroup agreed a $150m tie-up with Lending Club, to finance loans. Citizens Bank has bought $200m of loans from SoFi, a big student loan-focused marketplace lender. • … 31 Old economy // sharing economy
  32. 32. 32Adapted from thegovlab.org 5 governance deficits Legitimacy Effectiveness BudgetsInnovation Expectation Loss of confidence of citizens in their governments, particularly because of the lack of transparency, accountability and (real) citizen participation in the decision process. Because of their bureaucratic, centralized and rigid nature, public services are struggling to address the challenges of the modern digital world and the needs of citizens. Deficits and budget cuts, questionable expenditures or taxes, ... suggest that governments are not really able to deal with real world problems. Governments are paralyzed by institutional inertia and pyramidal structures. They are not agile, innovative and creative enough. While digital empowerment is breaking down barriers to citizen participation, citizens are frustrated that governments do not allow them to contribute to public policies.
  33. 33. 33 Open Data. Institutions, local actors and governments have considerable amounts of data, but do not necessarily use them. Open Data = make them available in public data clouds. The idea is to allow other public or private players to build services and applications based on these data, following specific licences.
  34. 34. 34Adapted from thegovlab.org From Open Data to Open Government Centralized 6 Decentralized Intuitive 6 Goals Closed 6 Open Intermediary 6 Platform Static 6 Evolutive Deliberative 6 Collaborative From a push and top-down model, to a model involving a maximum of voices in the governance process Transition from intuition and repetition based models to processes based on the richness and intelligence of data, and on wide scale experimentation, for better decisions Personalization of content and services, One2One, pertinent and individual experiences, collective proposals, … Openness. Problems solved with the intelligence of the crowd, rather than only by public services. Validation and co-design by allied citizens … Cloud, mobile, apps, augmented services, programmable Web, suppression of time and location barriers, NWOW, … Networks, online and cloud platforms, 3D, DIY, crowdfunding & crowdsourcing, loss of influence of "historical“ monopolies and intermediaries … Empowerment numérique
  35. 35. 35 Walloon example Next Ride is a mobile application based on “open data”. Now part of the “official” offer from the public transport company in Wallonia. 1 (non professional) developer versus a company with more than 5000 workers !
  36. 36. 36 www.bepark.eu BePark is a network of low-cost car parks that you can access through your mobile. This network consists of public parks as well as private ones (hotels, offices, supermarkets, etc.) which were not available to the public so far.
  37. 37. Public data = Open Data ? Europe highly promotes Open Data, making it the default model for public services through the PSI (Public Services Information) directive. 37
  38. 38. • Government officials oppose sharing that disrupts existing regulations. • Lack of trust between peer-to-peer “buyers” and “sellers.” • Lack of industry-wide reputation systems and data standards. • Historical players view sharing as a threat to their current business models. • Uncertainty about which startups will stand the test of time. 38Adapted from Altimeter Group Of course … it’s not that simple !
  39. 39. 39Source : Orange & www.sparked.com See you next week for Digital Business ;-) A connected cow transmits 200 MB of data each year.
  40. 40. @ Home andre.blavier@gmail.com www.andreblavier.be … needs to be updated :-( @ School ;-) Affiliate Professor andre.blavier@ulg.ac.be @ Work Web & Communication Manager andre.blavier@aei.be www.digitalwallonia.be linkedin.com/in/andreblavier facebook.com/unpeudeblabla @unpeudeblabla andre.blavier unpeudeblabla.tumblr.com slideshare.net/unpeudeblabla scoop.it/t/unpeudeblabla

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