Smart Enterprise Magazine

Volume 8, Number 1, 2014

Issue link: http://www.smartenterpriseapp.com/i/255571

Contents of this Issue

Navigation

Page 8 of 23

indifferent and costly restaurant food when you can share a great home-cooked meal for a fraction of the price? Clearly, a more collaborative economy could be a threat to established business models. For example, if 10 consumers share a new car, that's potentially nine lost new-car sales. If a traveler stays in someone's home and shares meals, then they're not handing over money to hotel and restaurant chains. On the flip side, these new models could be the catalyst needed to free up idle capacity in the economy and promote better use of resources: spare rooms in houses, empty seats in a car and even food left in the refrigerator. Crowd and Its Citizen Sourcing The desire to share is not only working for commercial business ventures. It's also finding its way into the public sector, with governments across the globe harnessing collaboration dynamics to broaden citizen engagement. In San Jose, California, for example, the PulsePoint mobile app lets the public provide life-saving assistance to victims of cardiac arrest, which causes nearly 1,000 deaths a day in the United States. With PulsePoint, citizens skilled in CPR can be quickly located by emergency response teams and called upon to perform resuscitation. In New York City, citizens can report street hazards with their mobile phones. The result: Improved service at lower cost, essentially making citizens a key part of the service. Partnerships are also emerging between government agencies and businesses providing collaborative applications and platforms. For example, former Mayor Bloomberg of New York City recently announced a partnership with Nextdoor, a social network and mobile application for neighborhood communities. Through this partnership, the city government will be able to use Nextdoor to post relevant civic information to specific neighborhoods across all five New York boroughs. Information, from burst water pipes to a police department alert, can be directly targeted to the neighborhoods affected. These examples demonstrate the power of what many are calling collaborative economics. It represents both a problem and an opportunity for C-level executives. "The fundamental issue is, when people are willing to share, they are less likely to buy goods directly from you," says Michelsen, who adds that it shouldn't all be doom and gloom: "In a more collaborative style of business, sucess will come to those organizations that can transform traditional products into services, perhaps even co-creating externally and incorporating them into new business models and marketplaces." CIOs face similar problems, since the principles of sharing are in many ways opposed to how IT has been traditionally delivered. "Up until now, the way we've built and delivered IT services supporting our customers, citizens and markets has been based on control," says Michelsen. "To a great extent, IT has dictated and controlled how customers and partners engage and interact with the business. Now with new sharing platforms, this model has been completely inverted—people now have the control." This is a wake-up call that threatens to disenfranchise the business from its customers unless immediate and practical steps are taken to embrace the sharing revolution. According to Jacob Lamm, Executive Vice President of Strategy and Corporate Development at CA Technologies, "This starts with the CIO taking on a business leadership role, constantly surveying the disruptive technologies and business-model landscape and advising executive counterparts on the dangers and 201 4 • SMART ENTERPRISE 9

Articles in this issue

Archives of this issue

view archives of Smart Enterprise Magazine - Volume 8, Number 1, 2014