Jeremiah Owyang | Interview at Digital Domination Summit with @montemagno

Hello, everyone. Marco Montemagno here, Digital
Domination Summit 2013. And with me, Jeremiah Owyang. Is [pronounces name Jera-mee-ah] the
right way to pronounce your surname? Yes or no? You did a great job. That is right. [laughing]
I’m so bad with all the different surnames, starting from mine. That is so difficult.
Right. Jeremiah. You are the person that I always go to read for years now every time
there is something social media related and how social media and new technology impact
on business. For me your blog is the bible, go to check and take notes of everything that
it makes any interest. So let’s start from this hot topic that you’re talking about,
this collaborative economy. You’re giving this, I would say, this tag. You’re launching
this buzzword. What is it all about? I mean, is something different between paid, earned,
owned media? Or what’s going on? It’s nothing new. Sharing is not new at all, Marco. In
fact, our moms told us to share for years. But now the difference is because of social
and mobile technologies, you can share quickly with other people. But not just ideas or media;
now people are sharing products, goods, services, and the stuff in their house.>>Right. This
is actually the next phase of social business— that people are sharing their cars, their
homes, and they’re using social tools to make this happen. It’s not new. Here’s a few examples,
okay?>>Yeah. Let’s imagine I’m coming over to visit you. Where do you live? I’m in the
UK now. London. Okay, well, I might see you at LeWeb, where I’m going to be presenting
this research on the collaborative economy on June 5th in London. So let’s imagine I
want to get to see you. So instead of renting a taxi, hiring a taxi, I could use RelayRide
and take my neighbor’s car, or I could have somebody pick me up in my neighborhood using
Lift. I don’t have to call a taxi.>>Right. When I get to London, I don’t have to go to
a hotel. I can stay at somebody else’s house using Airbnb. If I need a place to work, I
can use PivotDesk or ShareDesk or LiquidSpace to find an office. If I need funding in order
to grow my company, I can use peer lending such as Lending Club or Prosper instead of
going to a bank. In all of those examples I’ve been able to bypass corporations to get
what I need from other people. It’s faster, it’s cheaper, and I’m not wasting the earth’s
resources to do that. So the key point here is the next phase of social business is beyond
marketing, support, or PR. It’s a social business model, and this is why we call it the collaborative
economy.>>Yeah. Does that make sense? What do you think?>>Yeah. The question is the
following: I remember an old article from Kevin Kelly where he was talking about the
shift from property to us and then, as you say, now it’s true. Airbnb, Viable, all these
companies. What do you suggest to companies that are not social by default, but I mean,
they are traditional companies. So you talk with all these companies in your events, and
how can they shift? What could they do to change without disrupting completely their
model? Yeah. Kevin and I spent some time at an event in Stanford. I’ve talked to Doc Searls,
Cluetrain, Deborah Schultz, who has been in this space, and then I’ve interviewed Lisa
Gansky and Collaborative Consumption crew and Neal from Shareable magazine. So I’ve
been interviewing all these people for my research, and I’ve looked at startups. Last
night I was with BMW, who is actually moving into this space. They’ve invested in ShareMyParkingSpace
or one of those websites.>>Right. They’re allowing for their cars to be rented off their
lots in San Francisco. That’s right, they’re completely shifting their business model.
And Toyota—disclosure of client—is doing the same thing as well. NBC has sponsored
Yerdle, which encourages people to share products rather than buy them. That’s very disruptive.
So the long story here is a few corporations are moving into this space. But before we
talk about what they should do— and I do have recommendations for them today, and this
will be— you’re getting a sneak preview in your audience of what’s going to be my
LeWeb keynote. Here’s what it actually means to companies, the first 3 things. The first
one is the way that they do business, Marco, has changed because staffing and where you
get your ideas and people and locations and your office space is now on demand. So companies
first have to adopt this movement. Just like we said, “Oh, companies, you have to be a
social business,” well, you better start by being social internally first, right? Be socially
first person.>>That’s right. So that’s happening as the first thing. Here’s the second insight
that we found from the research of the many interviews and looking at the data. It actually
means that corporations have to care about their customers for the long term. Marco,
you’re probably saying, “Oh, but they do.” “They tell us that they do all the time.”
>>Yeah. That’s the message. The standard message is, “We care. Consumer first.” Well, if you
do, you wouldn’t have a 1-800 support line and a queue. And if you did, you wouldn’t
have an FAQ on your website. So instead of short-term transactions of a selling, companies
now have to think about long-term sustainable products. And listen, I’m not a hippie, I’m
a capitalist. I have a business degree. I’m with the corporations. I serve them. So I’m
not a hippie. But it means that these products that last longer in the long run are going
to matter more, and consumers are going to buy those because they’re going to resell,
lease, or trade those with other people in the secondary markets.>>Okay. That’s very
interesting. Do you see the big change?>>Yeah.>>That’s right. So it means long-term products
are going to matter more in the resale market. So here’s the third insight, and this one
is very bizarre. This one means that corporations—because consumers are going to buy once and trade
many times with each other. That’s what’s happening here. That’s a disruption. Let me
give you a stat. One properly shared car—and this is UC Berkeley’s data— means that there
are 9 cars that don’t need to be purchased.>>Yeah. I mean, you live in London. If you
live in Europe, this is common. I was just in Denmark. They’re already doing this with
bikes and getting rid of cars. BMW last night said by 2050 even cities can’t support the
amount of new people moving into cities; therefore, they can’t support the cars. BMW knows there
is no choice but to shift to car sharing. So rather than be disrupted, they say that
there is the opportunity to rent or lease 9 cars, not sell 9 cars, and they’re going
to change their business model. So what is the third insight? Here’s what it is. It means
that companies actually have to care about the relationships between 2 customers, between
2 customers, as they share and trade amongst themselves. And if a brand does this right,
it means they monetize that relationship.>>Right. So to summarize, it means companies
have to live in this sharing economy, this collaborative economy themselves; 2) it means
long-term relationships actually matter— no, really, it really matters now; and 3)
the relationship between customers matters. Can I just share 1 story about old versus
new?>>Sure, sure. Go ahead.>>Okay. Sorry. I’m on a roll. I’m going to keep on going.
>>Go, go, go. I’m sorry that I— I saw myself and I am now totally yellow because the sun
came out. It never comes out in London, so [chuckling] your story is alighting me. [laughter]
Go ahead.>>I love it. We should just be happy that there’s sun in London because that’s
a rare feat in itself.>>[Marco laughing] Okay. So here’s the old way of doing business.
This is called brand experience, the brand experience, and it sounds like this: I talk,
you be quiet.>>Right. I talk, you be quiet. That’s a brand experience. Now, that’s changed.
We’re in the age of social. And today it’s a customer experience, and it sounds like
this: I listen, I engage. I listen, I engage. And that’s what brands are doing today. You
see it on their social media channels. Yeah.>>Now get ready. Here’s the change. It’s about
to change 1 more time. The next phase is called a market experience, and this means that the
companies have to help 2 customers connect to each other to share or buy or trade their
services. And that’s a marketplace experience.>>Yeah.>>Go ahead. That’s super interesting.
Do you think that all industries will be impacted by this? Okay, yeah. Yes and no. We’ve run
through the analysis of all the verticals, and I have a lot of brand clients. So the
most obvious ones are the following: companies that are not sustainable; 2) idle usage goods;
3) high consideration goods such as cars or washing machines— why own that if you can
share it; infrequent usage—I’ve talked about that—like the drill. Rachel Botsman says
that the average electric drill is used 12 minutes for its lifetime. Okay>>So why would
you own that? Also unattainable luxuries. So Rent the Runway offers— This is not just
for people that are trying to pinch their wallet. This is not about that at all. Rent
the Runway allows consumers on a subscription basis to get brand new LV purses and stuff
from New York, and it’s re-sent to them and it’s repackaged and they trade it amongst
each other.>>Got it. So it is also about luxury at Uber, and there’s one for jets and
also for yachts.>>Yeah. So it’s not to save money only because this is, I think, a misconception,
but you—>>Yeah, right.>>Okay. Jeremiah, we have— But there is a couple industries
that we— I already talked about banks are afflicted. Even an HR workforce is afflicted.
The one I’m not sure about though, Marco, is healthcare insurance.>>Okay. I’m not sure
if that can be transferable. So I’m still thinking about that. If anybody has any ideas,
let me know.>>All right. A couple of minutes more. You recently were at a Google I/O conference,
or I am wrong? Yeah, I was there.>>Yeah, because I try to understand— I saw your
Mercato talk, which was very interesting, and I just say to the viewers just go and
check Jeremiah’s talk at Mercato conference because it was very interesting about how
many screens you have and so on. What’s happening there with this Google Glass and all this
point of digital content with users? Could you help us to understand a little bit more
how to be out of this noise? Sure. Let’s switch topics.>>Yeah.>>Yeah, yeah. So my next report
is on the collaborative economy, but I recently did a report on converged media about how
paid, owned, and earned are all coming together. And I feel like we should just dedicate a
whole session to that. There’s not even enough time to talk about that.>>Yeah. But that’s
happening on digital screens, and we’re absolutely tracking how digital is happening. And yeah,
I do have Google Glass. I’m sharing it with my colleagues. And it’s okay. It’s very clunky.
But it’s like imagine iPods in 2000, right? Big, fat, carries 1000 songs, which at the
time you thought was a lot, and it has that big, round, weird dial and it’s just kind
of hard to use— which we don’t use that anymore. So it’s like that. Early technology
but really revolutionary, and it’s going to change how we do computing. And because digital
screens are going to be with us everywhere, Marco, it means there’s lots of opportunities
for marketers and lots of opportunities for customers to screen out marketing in the real
world. Right.>>So it’s a double-edged sword. Okay, Jeremiah, last question. I’m just curious.
Do you have any particular app that you use during the day and you suggest to all companies
to use this mobile app or tool that you say, “Gosh, this is for productivity or for digital
business. It is amazing.” Do you have any top favorite app? There’s a suite of apps.
We’re in the cloud. Everything that we do we can transfer between computers. So I’m
a big fan of Google Docs.>>Okay. We use Google Docs extensively. Some people in the company
use Evernote as well. I wouldn’t say we have a clean solution across all of these because
everybody has a different preference. But just collaborating on these docs in real time,
I’m in them all the time. I have so many tabs open usually just for that stuff.>>Yeah.
Right. Jeremiah, thank you so much. I’ll let you go.>>My pleasure. Thank you for this
short interview, but it was super interesting. Guys, just go to check Jeremiah’s blog and
all the research that you always do. Good luck for everything.>>Thanks for having me,
Marco. Take care, everybody. Thanks. Bye.

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2 thoughts on “Jeremiah Owyang | Interview at Digital Domination Summit with @montemagno

  1. Resource-Based Economy? U must be aware of that, right? But I'm sure if that happens in future then we r simply in the transition period from Personal profit driven society toward Mutual Benefit driven one.

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