Soraya Sedkaoui - Sharing Economy and Big Data Analytics

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The different facets of the sharing economy offer numerous opportunities for businesses ? particularly those that can be distinguished by their creative ideas and their ability to easily connect buyers and senders of goods and services via digital platforms. At the beginning of the growth of this economy, the advanced digital technologies generated billions of bytes of data that constitute what we call Big Data. This book underlines the facilitating role of Big Data analytics, explaining why and how data analysis algorithms can be integrated operationally, in order to extract value and to improve the practices of the sharing economy. It examines the reasons why these new techniques are necessary for businesses of this economy and proposes a series of useful applications that illustrate the use of data in the sharing ecosystem.

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In fact, taking marketing into account inevitably implies taking C2C systems into account, because they fill the blind spots that marketers generally pay little or no attention to (C2B, C2C, C2G) (Ertz 2017).

In the context of the collaborative economy, there is an overlap between production and consumption functions, in such a way that roles between individuals have reversed. “Exchanges between individuals are brought to the forefront, while organizations act as intermediaries” (Ertz 2017).

As a result, the consumer is no longer a mere spectator, but rather an essential player in the business-consumer relationship. He can even do without the company by producing and marketing goods and services.

Box 2.4. Meaning of the different transaction methods

Transactions initiated by the company:

– B2B (Business to Business): describes business transactions between companies;

– B2C (Business to Customer): describes the business transactions between a company and end consumers;

– B2G (Business to Government): describes business transactions between companies and the government.

Transactions initiated by the consumer:

– C2B (Customer to Business): describes business transactions between consumers and businesses;

– C2C (Customer to Customer): describes the business transactions between consumers;

– C2G (Customer to Government): describes the business transactions between consumers and the government.

Transactions initiated by the government:

– G2B (Government to Business): describes business transactions between the government and businesses;

– G2C (Government to Customer): describes business transactions between the government and consumers;

– G2G (Government to Government): describes business transactions between governments.

Basically, the economic model of sharing is essentially based on the “consumer-to-consumer” (C2C) formula. The platforms have served as intermediaries between individuals (Buda and Lehota 2017).

Based on this operating logic, the relations between producer, consumer and government have been redefined and have revealed the new exchange methods discussed above. Collaborative consumption embodies the change that has led economic networks to move towards a more local and collective organization, similar to an ecosystem, guided by new patterns of exchange (Ertz et al . 2017).

By freeing the sharing economy, will companies be able to transform today’s threat into tomorrow’s opportunity?

So many issues call on business leaders to be players in this new economic model, not just bystanders suffering the consequences of this change. The answer to these issues is suggested by the honeycomb representation of the collaborative economy. It was developed by Jeremiah Owyang (founder of Catalyst Companies, industry analyst). It outlines the scope of the sharing economy in the different sectors of the economy.

The illustration in the form of a honeycomb structure is not accidental, explains the designer: “The cells are elastic structures that allow the accessing, sharing and improving of resources in a group” (Torfs 2016b).

The representation is evolutionary, interpreting the change in strategies in companies. Currently, we are on its third version, the first version only had six honeycombs in the center of the graph. Several companies have joined the sharing economy movement and the list of sectors that have integrated the sharing economy into their strategies includes “the finance, logistics, food and transport sectors” (Hallet 2018).

Figure 22 Honeycomb representation of the collaborative economy Owyang - фото 4

Figure 2.2. Honeycomb representation of the collaborative economy (Owyang 2016). For a color version of this figure, see www.iste.co.uk/sedkaoui/economy.zip

On the third version, Owyang argues that the collaborative economy allows people to get what they need from each other. Similarly, in nature, honeycombs are resilient structures that allow access, sharing and growth of resources within a common group:

Our latest version of the Honeycomb Framework, Honeycomb 3.0, shows how the collaborative economy market has grown to include new applications in the areas of reputation and data, worker assistance, mobility services and beauty. (Owyang 2016)

The collaborative economy is no longer a simple fashion phenomenon, nor is it the apanage of some companies. However, the transition from a traditional to a sharing economy requires a review of all the issues. The French Chamber of Commerce and Industry (CCI 2014) suggests that companies consider the following points:

– The company must be interested in the stakeholders influencing its internal activity, in other words, suppliers, customers, investors and partners. For example, to improve its relationship with its customers, the company creates a customer club to facilitate the exchange of its used products. At first glance, it will sell less, so what would it gain by creating this club? In the long term, “positive external factors would compensate for the risks” (CCI 2014) and the company would win the loyalty of these customers.

– It must find an alternative to its business model 6in regard to the challenges of the collaborative economy. In this case, the company opts for a gradual change in its activity, as opposed to an abrupt one. It integrates social elements “on a small scale, by creating an agile ad hoc structure (in lean start-up mode) in order to experiment with more open models” (see Box 2.5).

– The company must intercept a part of the clients from start-ups that are engaged in collaborative economy practices. Companies in the “traditional economy” have underutilized capacities and assets to mobilize a shared or collaborative approach: “It can be a customer base, a local presence, a network of business partners, exclusive suppliers or patented technology.”

Box 2.5. Lean start-up

Lean start-up is a methodology that presents a new way of developing new products with an emphasis on rapid iterations, customer understanding, great vision and great ambition, all at the same time (Ries 2011; Bernet 2014).

These initiatives allow companies wishing to transition to the sharing economy to gradually integrate this new economic model into their strategy. They can choose one initiative or the other according to the capacity of its resources (human and financial) and remain alert for all changes affecting its sector of activity.

2.5. Conclusion

The sharing economy is gaining more and more ground, and this is not a “whim” in the business world. It really does exist and provides solutions to many of the problems caused by the traditional economy, which in this case, are those related to social well-being, particularly poverty and social exclusion.

Even if there is some reluctance about the economic consequences of the collaborative economy, an initiative in favor of the collaborative economy is only beneficial for companies, because it opens up opportunities for them to enhance the value of their products and ensure their sustainability. That is why they must not resist: either they surf this new wave of possibility, or they get carried away. It is therefore better to turn these threats into opportunities.

TO REMEMBER.– Opting for an approach in favor of the sharing economy is a great adventure for a company. The protagonists of this new model were motivated by their convictions and desires to contribute to the sustainability of the community, the economy and the environment.

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