Although this is the current trend in start-ups and big business is also adopting this model, this is one of the oldest models. We may have moved away from it in the last century, but it had to return if only because it’s an economy that actually works. Others are largely backed by confidence, whilst this one’s backbone is one simple yet crucial element. That’s humanity. That’s what really makes it work. Humanity.
Take for example your successful start-ups that are based on this economy, such as Airbnb, Uber, Lyft, Skillshare, and Sidecar. The reason they are successful is they leverage humanity through the exploitation of the four elements of sharing, i.e.: social, economic, practical reasons and sustainability reasons.
This is the same with long-standing businesses that are savvy enough to adopt this model. Take, for example, Mweb with Fon; eBay; some of South Africa’s Banks (notably FNB), Ford and Marriott Hotels.
Why & how
Why and how would you adopt a sharing economy model in your industry you ask.
The why is simple. Gone is the dog eat dog world, where its every man for himself and if you week we will kick you to the curb. These are the days where to create continued sustainable business, humanity comes first, and we take care of that by creating communities. This became evident very fast in the marketing field as it evolved, with the Internet of Things, then not so slowly every other area of an organisation became affected, to the point where company policies have had to change to accommodate a new era of management. You can risk being left behind by sticking to the good old-fashioned way of doing things, or you can, like the rest of us, embrace the new and expand your horizons and territories.
As for how to go about this, Lea Rude writes: “Being successful in the sharing economy means building a business model that’s based on trust, authenticity and transparency with your customers.”
PWC, in their Sharing Economy report, go over what the sharing economy could mean for your business and what you could do about it. Some elements are:
- Create marketplaces
- Develop a mitigation strategy
- Engage in sharing your own asset base
- Effectively tap talent
- Speak up in shaping regulatory and policy frameworks
- Expand the brand through shared economy experiences
- Never settle for stable
From me to you: Build a better business and prosper!