What Is A Sharing Economy?

Being a child of the 80’s, I grew up with images of big companies, doing big things. Panty hose was still a thing, along with the JC Penny three-piece suit. Samsonite briefcases were all the rage. Corporations ridden with layers of low, middle and upper management became the corporate ladder of choice for many young professionals. Complicated workflow models were created to allow for more people to enter a business than what was usually needed. Big organizational charts were challenged by big hair. Aahh..the 80’s.

While this new decade has already brought about all its own set of business challenges, one thing is certain, the next generation of customer wants simplicity done right. They are a no frills, tech based, no extras, dial direct, email and text sent, type of consumer. With how many decisions, actions and technology distracted moments they have, they want business to be easy. So easy, it makes me wonder if life is turning into a dream.

With companies such as Uber, Grubhub, AIRBNB and Zipcar projecting positive earnings, the consumer market is pointing to all signs that we desire a sharing economy. What is a sharing economy you ask? A sharing economy is where a business minimizes the infrastructure and removes as many barriers as possible to get the product or service into the hands of the customer. While in decades past a shared economy has always had representation(U Pick Your Own Farms, Co Work Spaces, Co-Op Nursery schools), it wasn’t until recently that we have seen on a grand scale, a company using the sharing economy model turning profits..in a really big way. AIRBNB going public this year, speaks to the ever-growing interest in tech based, shared economy businesses.

If you are starting to panic that your business can only run with layers of infrastructure that technology could never replace, don’t. While getting a car to show up anywhere you want through an app is incredible and what the market is showing they want, it is viscerally accepted and understood that certain services and products can only be acquired the good ol’ fashioned way. But, what if the good ol’ fashioned way could be influenced by sleek, minimal and simple new ways?

Is Your Product or Service Easy to Get into The Hands of Your Customers? A sharing economy model removes those layers and layers of positions that in some ways, slowed the ability for products and services to get in the hand of willing buyers. A shared economy is a business model for the future, moving at speeds never known too man. Companies are using technology for quicker communication and transactions. They are empowering people through education and training to take on more responsibility and minimizing complexity in the services and products themselves. Making them focused on doing 1 thing well.

Are your payment systems electronic? Similar as to what I was discussing above, speeding up the transaction process allows for an easier yes to be had in the sales process. Using systems such as Square, Paypal and Venmo allow a seamless payment system to quicken the transaction, reduce mistakes and hence help get the product and service to the customer quicker. 

Do Your Employees Deliver Your Brand? With fewer human touch points, it is vital that employees are delivering a brand experience with every customer contact they have. While brand has always been a key system for business differentiation, it takes on a larger role in a shared economy business. With commoditized business transactions, the brand is what makes the business feel different and unique, the defining factors that will grab market share. It is the brand they buy, as opposed to the functionality of the product or service, which has already been diminished as a commoditized offering. It is not enough to even say an employee needs to deliver the brand. They need to be the brand. Brand training should not be a one-off hour discussion on the first day of work, but an integrated mentoring model that continues for the lifetime of employment. Documenting workflow systems that are supported with brand standards will give critical instruction to employees on everyday tasks.

What would it be like to run an organization that focuses on minimizing wasteful behaviors? What if you could service your customers quicker? Build a model that empowers employees with high degrees of accountability, so they can spend time on building brand, not just processing transactions. Now that is the wave of the future.

Ready to ride?