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- 1. Uber-proof your company Creating valuewith digital platforms. Yves Eychenne Carolyn Strong-Eychenne
- 2. Uberisation Platforms such as Uber, Booking, Airbnb, Apple and Google have upsetentire economic sectors. The elements of uberisation: • The transformation of usage • The « Wow » Effect • Disruptive innovation • Rethinking the technical and economic fondamentals of a sector At the head of this battle, digital platforms, firmly place the client in the center.
- 3. What are theissues companies face? Passive consumer >>> active client >>> producer Product , Service, Experience • Rolls Royce moved from selling aircraft motors to selling available flying hours • From service to “client experience“ (smartphone, Google,…) • The consumer’s role changes: he is now connected, better informed, active, changes easily between the role of consumer and producer, and expects to be listened to. • The economy of sharing 2.0 (BlablaCar, Uber, AirBnB) Ource image:https://datafloq.com/read/rolls- royce-shifts-higher-gear-big-data/514
- 4. New values ? •Sleep in the bedroom of a stranger? • Share a car with someone you don’t know? • Borrow money from private individuals? • Share, exchange, make bargains. New behavior for a new economy: 22 % of French people have already tested a service in the sharing economy and 30% think they will try it within the next 12 months. 13% are ready to propose their services. Source: OpinionWay « EcoScope – Baromètre OpinionWay pour Axys Consultants – Le Figaro – BFM Business » sur l’adoption de l’économie du partage
- 5. The Wow Effect •The Wow Effect: The surprise of discovering a service or product which saves time or money or offers an extraordinary simplicity of use. • The Wow Effect is key to acquiring new clients and developing their loyalty to the platform. • The repetition of this positive experience transforms the client into an ambassador. • The Wow Effect pushes the exponential growth of this kind of platform. Source image : www.usine-digitale.fr
- 6. Disruptive Innovation • Disruptive innovation–or “technological rupture“ – is a new technology which is radically different from those existing and which ends up replacing the the older technology. A disruptive innovation is not limited to digital technologies; nylon disrupted silk stockings, Gutenberg disrupted monestary copyists. • The dilema for established companies is how to allocate resources and manage their financial priorities. • The management of investments in R & D tends to target established markets and those market segments which are the most profitable. • Although companies avoid markets which are too small or market sectors which they do not know, these are the markets which are targeted by disruptive innovation. Ex: Amazon, Uber, Netflix • The references on the subject: Clayton Christensen
- 7. The Plateform: themarketplace of modern times
- 8. The Network Effect •The reason for the remarkable speed which with markets are penetrated: • Uber has become a dominant actor in the market of taxis in three years; • Instagram, in only six months in the crowded market of photo-sharing sites, gained 400 milliion users and 75% market share. • The Network Effect and its hyper-growth create value for all the participants of the platform (producers and consumers). Mettre un schema Source: PARKER, Geoffrey G., VAN ALSTYNE, Marshall W., CHOUDARY, Sangeet Paul “The platform revolution” Norton & Company, 2016
- 9. The client inthe center • Reviews from other users help users make their choice and also reassure those who give their opinion that the platform cares about them. A new form of customer service. • Clients’ reviews allow suppliers to know what the user thinks about them and helps them improve their service • In the information era, the consumer is connected, informed and active. • Companies and brands must • listen to the client when he expresses himself on social networks, • understand him, accompany him, and capture new trends Source www.marketing-professionnel.fr
- 10. Creating value viaa digital platform Often the company who manages the platform does not manufacture the products nor furnish the services exchanged on his platform. His value consists of: • the breadth and depth of his catalog, • quality control (curation), • clients’ reviews and critiques, • the exclusion of bad suppliers… and also bad clients.
- 11. How does aplatform work?
- 12. Key technologies foruberisation • A mobile application requires geolocalisation capabilities, as the main support to numberous interactions. • The cloud allows web and mobile platforms rapid growth, globally, at a lower price. • Application Programming Interfaces (APIs) are used to connect and build a network of partners. • Big data and artificial intelligence allow the platform to make relevant propositions to consumers. • The internet of objects helps to build new value-added services. Source IBM
- 13. The importance of the business model…. Lesgéants numériques vs l'économie traditionnelle Capitalisation Economie Capitalisation Economie nouvelle Région (milliards), 2016 Secteur traditionnelle Région2 (milliards), 20162 Apple USA $583 éléctronique Sony JPN $45 Google USA $516 Facebook USA $340 publicité Publicis USA $13 Baidu CHN $281 Microsoft USA $439 logiciel Oracle USA $170 Salesforce USA $50 Amazon USA $281 Alibaba CHN $192 commerce Walmart USA $221 Priceline USA $65 eBay USA $27 Yahoo! USA $36 actualités News Corp USA $7.6 Uber USA $40 taxi Medallion Corp USA $220m Taxi G7 France LinkedIn USA $15 recruitement Manpower USA $6 Netflix USA $45 média Vivendi France $24
- 14. Business model andtwo-sided business platforms A meeting place where some economic actors come to consume a service or product and other actors come to propose their services. Often, the latter group subsidizes the platform. Exemples of two-sided business platforms: • In a newspaper or TV service, the readers / viewers come looking for news and distraction. Advertisers pay for the opportunity to expose the readers/viewers to their brand, product or service. • Google’s search engine: searches are free for users, but here, too, advertising subsidzes the service. Google had over $50 billion in revenues in 2015. • Apple goes even further: everybody pays. The user pays to have a terminal (iPhone, iPad, Mac, iPod) and pays to see content (Apps, music, books). Suppliers of content pay an average commission of 30% to Apple (in its role as marketplace).
- 15. Uberisation of thefuture • Above and beyond digital applications and mobile apps, platforms will be built around 3D printers (additive manufacturing) • With 3D printers, the manufacturer can listen to his clientèle to improve and develop his product more often (the customer in the center). • Products can be built by consumers: • FabLabs are being created in France and throughout the world. • Service providers and users, who in turn become suppliers of this service to their neighbors • New plateforms will also be built around robots and drones
- 16. Transportation and hotellery •Hotellery is the most active sector among digital platforms: Expedia, Trivago, Booking, and TripAdvisor. • The SNCF (French national railway company) started its e-commerce very early on. It has developed web and mobile apps to improve customer experience and an internet of objects to help make the trains run on time. • Transdev is on the front lines against Uber for its taxi activities in the U.S. It has created Digital Factory to spearhead innovation. • The group AccorHotels has reacted to Booking and Expedia by creating its own reservation platform, open to outside partners. AccorHotels has also puts its focus on superb customer experience.
- 17. Transdev • Transdev isin the process of inventing a layer of integration for “Mobility as a Service“, thus moving from the role of public transport to mobility. • Moblity as a service: an agregator of all modes of transportation • Physical plateform: the train lines, the bus network, shuttle buses, taxis and VTC • Plateform of data, to help the user choose the best combination of transportation modes. • A monthly mobility plan, just like cell phone/data. • The data platform will be accessible to all transport companies, local authorities, as well as developers and programmers who wish to create applications for mobility solutions. • Transdev started this project in Finland: maas.global A platform can hide another… and another... And another
- 18. E-commerce • E-commerce was one of the first activitiesto be developed when internet was opened to commercial activities in 1992. Despite this long history, it represents only 6% of commerce in France and has not had the destructive effect once feared. • The large majority of actors in e-commerce in France are French companies who have succeeded in transforming themselves, growing their sales via a web site, bettering their profitibility, and increasing customer loyalty.
- 19. • Carrefour has a digital program to increaseits sales in stores via mobile applications. Carrefour has purchased Rue du Commerce to strengthen its e-commerce. • Click and collect vs. home delivery. Having a home delivery includes certain constraints, which makes “click and collect“ attractive. The client purchases his products on-line then goes to the store to pick them up, at a time which is convenient for him. This allows the store to take advantage of the client being on site to increase the amount of his purchases. Carrefour
- 20. Retency: transforming in-storevisits to purchases • Retency uses new technologies such as beacons and big data to analyse customers’ behaviors within the departments of the retail store transforming a simple visit into a purchase. • To win the battle on the shop level, Retency analyses in real time the percentage of sales per department. The result can be advice on restocking or reorganising the department’s displays, special sales promotions or targeted marketing to clients who went to that department without purchasing product. • The shop shelves become a plateform.
- 21. The service sector •Uberisation of energy? Private individuals invest in mini-generators and high capacity batteries, for only ten or twenty thousand euros. Science fiction? Elon Musk’s companies are already proposing full solutions. • On-line banking, with 4 % market-share in France, is a practical service but not revolutionary. Uberisation is coming from new platforms for payments, cooperative loans, and the re-invention of the accounting ledger (blockchain). • Insurance companies are reinventing themselves with policies linked to a behavior: a connected car can deliver data on driving style which then allows the insurer to propose individualised pricing.
- 22. E.on • E.on isworking as an agregator, mastering the technologies of smart grids, smart meters, and on-site energy production. • The electrical network becomes a platform with a two-sided market which links producers of energy with consumers. • A consumer can decide to install solar panels on the roof of his house or a wind turbine in his garden and become a producer. • E.on has to manage the impact of these new producers on the totality of the network. • When we know that high-tension electricity lines lose 40% of the energy they carry, we better understand the need for a revolution of energy platforms. Source http://www.eon.com/en/business-areas/energy-networks.html
- 23. The role ofFintechs • Payments with PayPal. Google is entering the fray with Google Wallet. Apple already has credit card information for 800 million clients. • Other FinTechs are entering the loan industry such as Lending Club or Amazon who offers loans with low interest rates to small companies. Blockchain:
- 24. Public Service • Post offices worldwidewere among the first to confront a profound transformation of their sector: the development of emails, digital advertising, dematerialised invoicing, a move from printed to digital press. • Education is seeing a rapid digitalisation with the popularity of MOOCs (Massive Open On-line Courses). • For the medical sector, several platforms such as Doctolib.fr offer a list of doctors with additional information and allow the client to make an appointment on-line. Doctissimo.fr allows for auto- diagnosis, while Deuxiemeavis.fr in France and the Cleveland Clinic aux Etats-Unis offer services for long-distance diagnoses.
- 25. Education • MOOCs have receiveda lot of attention since Harvard and MIT announced their attention to reach 1 billion students. MOOCs will represent 10% of all classes given worldwide by 2020. 70 % of students enrolled in a MOOC do not reside in the same country as the platform. • The inversed classroom: • Ecole 42 rejects the traditional notion of lectures and bases its classes on peer-to-peer learning. Instead of a professor giving a lecture, students complete projects which vary in size and difficulty, leading the “learner“ to take initiative and be ingenious and creative in order to achieve his goals. Source http://www.lepetitjournaldesprofs.com/blog/2013/04/16/classe-inversee/
- 26. Healthcare • The platform Honesticatargets doctors allowing them to share patient medical information among healthcare professionals and to participate in public health research projects (via data analysis). • Platforms of connected objects via watches and bracelets with sophisticated captors which can follow physical activity but also conditions such as diabetes. • 3D printers are also going to transform the healthcare sector, from dental implants to prosthetics (hands, legs), medication and even body parts created from human tissue.
- 27. Manufacturing industries • Theuberisation of manufacturing industries comes to play in two aspects: distribution channels and the transformation of products into services. As platforms gain more traction in distributing products in a market, the manufacturer must be careful to retain direct contact with his client base. • Industry 4.0 is a transformation of the factory in which the value chain is completely digitised, from supply, production, delivery… all the way to the clients.
- 28. Michelin • “Michelin Man-as-a-Service“ : Instead of buyinghis tires, a transporter can now lease them. Michelin remains the owner of the tires and handles installation, inspection, and maintenance, and intervenes in the event of damage or breakage. • Michelin purchased Tyredating, BlackCircles.com and Allopneus. The manufacturer now has direct access to client data. It can study users’ searches on the web sites and buying trends in order to improve customer experience and anticipate market evolution. Source http://blogpneu.com/puce-rfid/
- 29. Trumpf, industry 4.0 • Trumpfhas already integrated smart technology into its machine tools, thus allowing data capture which can be agregated from a distance to develop new services (maintenance, inventory management) or to optimize factory planning and production. • This platform is based on an internet of things, the “things“ being machine tools from Trumps and other companies, both partners and competitors. Source : Trumpf
- 30. Societal impact • France has becomea host country to the new economy. As such, she must navigate the issues before other European nations, since the impact of this change will be felt more quickly and stronger here. • What is the impact on work and the status of workers? • What is the impact on governmental finances and social programs? • What are the risks related to the monopoly that certain platforms succeed in creating in certain markets?
- 31. France is ahost country to uberisation Sociovision – “French society is a mirror to Uber“. Uberisation develops following five basic trends in society: • Gain time and simply one’s life : 54% of French people want to save time and 70% look for the means to simply their lives. • Wheeling and dealing : Crossing the line is not a problem for the French, where government is seen as as a stickler for details, wanting to regulate everything. Public tolerance for undeclared work has increased from 42% in 1997 to 61% in 2015. • “Respect“ is a word dear to French people’s heart (62%), in front of “freedom“ at 46% and “trust“ at 43%. The French want to buy products at a fair price. • Short supply chain: 46 % of the French already use short distribution channels (a more positive term than desintermediation!) and 56% are ready to use them in the near future. • A world of entrepreneurs: 71 % of the French are favorable to a society in which people create their own companies or their own employment. 50% are ready to take the plunge themselves. http://www.sociovision.com/sites/default/files/note_sociovision_uberisation_juillet_2015.pd
- 32. The status ofthe worker in the new economy as seen by… Thibaud Simphal, General Manager of Uber France: In the mondialisation of the 21st century, which is fluid and agile, what matters is to protect the rights of the individual person, not to attach those rights to a contract. David Ménascé, author of the report “La France du Bon Coin“: The question is more about what form an intervention by public powers should take to regulate the new economy. This intervention must be subtle, since breaking the dynamic of collaborative platforms, under the illusion of eliminating abusive situations, risks marginalising even more the fragile populations who have no other way out (of poverty), and pushing them to the informal economy. Gaspard Koenig, founder of the think thank Génération Libre: We want to prepare for the emergence of a post-salarial digital economy. This implies a reform of the labor laws, with the creation of a status of worker which includes a certain number of rights, for example the right to paid vacation, for this new form of workers who are neither salaried nor entrepreneurs, like the drivers of cars (for Uber). Another major reform concerns the insurance system in its globality ; we should create a unique social account which would allow each person to manage his time and fusion the different systems of unemployment insurance, continued education and retirement benefits. http://www.usine-digitale.fr/editorial/exclusif-rencontre-avec-le-patron-d-uber-france-qui-prone-un-debat-national-sur-l-economie-a-la-demande.N398012 Ménascé, David, Synthèse du rapport, « La France du Bon Coin », Institut de l’entreprise. Lemarchand, Jean-Louis, « Pour l’abolition des privilèges », GenerationLibre.
- 33. Government’s role asa regulator • The report by Pascal Terrasse gives many interesting ideas • Bridge the gap between the status of self-employed or “autoentrepreneurs” with that of salaried worker: disability benefits and complementary pension, access to renting and bank loans. It is better to protect the person, by ensuring that this type of employment also gives access to continued education and allows the validation of diplomas and certification by gaining experience • Terrasse proposes that platforms automatically transmit information concerning revenue earned to a centralized platform which will transmit this information once a year to the government (ie, tax offices) • Manage the risk of a natural monopoly. The network effect leads to hyper-growth in a platform, creating a large risk for a natural monopoly. When one platform becomes too powerful, it can impose conditions which harm the producers or the consumers on the platform. • Manage the risk of exclusion. A platform/monopoly can fix high costs and over-exploit its dominant position. It can benefit from margins which are higher and higher compared to other actors in the industry or even threaten to exclude certain producers.
- 34. How can acompany manage the uberisation of its market sector? • Capture the « weak signals », the needs and desires of the client, which are indicators of opportunity. • The company must master the network effect, those positive trends which attract client and suppliers, and minimize the negative forces related to an imbalance between these groups. • The company must learn to use external ressources. • Accept the risk and error related to new projects and be prepared to abandon some of them. • Stay receptive to happy accidents.