 Now it is my pleasure to introduce one of my favorite people in the sharing economy and a great thought leader She has this incredible way of making the incredibly complex simple and incredibly apparent Please welcome me in joining. Please join me in welcoming to the stage Author of the mesh why the future of business is sharing Lisa Ganski Hi, good morning. How great is this? Thanks for joining us in San Francisco. Just out of curiosity. How many people are not from San Francisco? Awesome. Oh my god, that is so great. Thank you for coming. This is so great So I'm gonna do a couple of quick things One is thank you very much for I'm looking forward to the next few days Did I do something wrong already? Possibly Uh-oh Hang on Is there a little technical glitch maybe while she's doing that? I was just gonna say I was gonna take the time to do three things One is kind of a super fast in case you you forgot some of the key pieces. Thank you so much But it's not going up there I Could turn this around but that seems Not really technically sophisticated and it is San Francisco. I'm not worried so three things So the first thing was I thought we could do like a really fast in case you're new to the sharing economy a little like You know the top is version Top this I said not topless if people are time The second thing is just to say It turns out that that movements and economies and companies like bio biological things have life cycles So I thought it would be a good thing to answer the question of where are we? with respect to So whereas our movement is it in its early infancy and and how do we know and then the second part is You know, there's been some real trends that are very clear for the first few Big companies for example five billion dollars have been raised by venture capital that gets, you know The lion's share of attention by press Five companies have actually got two billion dollars of the five billion and so in that case We're looking at things. This is part of the sharing economy. We share islands Yeah, so anyway, I think the the bottom line is just to say that for us From my perspective as I look at the arc of what's happening so much of what's been gaining attention Are things that have raised a lot of money or scaling internationally? Which are amazing and great and certainly have validated a lot of what's taking place But on the other hand we see things that are happening at the grassroots level peers is is a you know The master of of corralling that sort of thing But a lot of that is also happening by community funded things Capital campaigns like Natalie said in Kansas. I thought if I mentioned Kansas, there'd be applause because that's what happened with her Kansas, okay, and then and then things like cooperatives, which we'll be hearing a lot about a little later. So Here's the the speedy version last century the 20th century Was what I call the century of the generals General motors general dynamics general mills general electric It was top-down One to many. Hey do what I say we got this handled Followed a military model and our organizations and a lot of our thinking including our education system follows that model This century the 21st century is a totally different theme We have different tools challenges ideas stresses opportunities At least the first half of this century is very much organized around We were on a roll for a second Hold it sharing Okay, we share lots of stuff sharing isn't new to us, you know, we share parks and our transportation Definitely beers at pubs Please don't tell my insurance company I took this photo, but it looked really cool at the time we share infrastructure Weirdly we share tips about how to clean aluminum siding and We share so many things that are happening at the urban level that Basically, you know Education and food and how we live and how we work So much of what's happening in the collaborative economy is happening in cities So cities are platforms for sharing For me and it's been mentioned already One of the main tenets of the collaborative economy is this that we're moving from an orientation where we aspire to own things as individuals and as companies To one in which we want to now either own in different ways But mostly we're moving to a world in which access to goods Services and talent will triumph over the ownership of them One of the great things that is happening is actually technology has brought us except for this little device apparently but Technology has made us more connected to more people on the planet than ever before But in addition to being technologically connected we've learned again Thankfully in recent years how powerful how valuable how Wonderful it is to be connected to other people and the core of building resilient communities and resilient brands as we'll hear it Shortly is about being connected and reaching out into the communities and into the crowd Part of what's driving this is Population we as of this morning or at seven point one seven bless you billion people on the planet today We're moving towards nine point six billion in 2050 this is like a big number 75 to 80 percent of these people are expected to live in cities and we're already Seeing and feeling so much of that pressure on cities most cities aren't in condition to take care of it Climate change we several decades ago had single-digit disasters in the world in 2012 we had 1553 there's a lot of pressure on companies and communities to Kind of create new muscle memory and become resilient in new ways and so much of that Happens from us being connected to each other The internet of everything or the internet of things or the industrial internet It has all those names is the idea that not only are we connected to each other But our things are connected to each other Connected cars and homes There are sensors and streets in San Francisco that know how much traffic is going around and could raise the price of parking on street All of these things are enabling us really from a technical perspective To create new kinds of business models and opportunities so that we get more value As a global community out of what we already have known and then lastly the recession in 2008 Really kind of caused a lot of people to say holy crap. What's going on here? I have to rethink how I spend and what I value Ultimately, I think that that nestles down into this little phrase which is unused value equals waste that Increasingly we've become aware that the things that we value if we're a business on the asset side of the balance sheet Or if we're individuals the stuff in closets and garages Talent what we're not using in this moment is wasted and because we can now take things that were invisible like My bike that's sitting in the garage for three months because my nephew is not here or my kayak Those things are sitting around wasted. Well now we can reveal them and they become part of a new kind of marketplace one of the things that we've seen travel is an industry that's taken a big opportunity here to Rethink the way travel happens and surprisingly perhaps to many of you private homes are One of the things that's growing fastest in travel air B&B, which I'm sure many of you have heard of Is the leading platform? This also is I'll take the second to say a peer-to-peer marketplace Which is essentially on both the buyer and the seller side the traveler and the place where you stay They're both individuals. They're both peers You're not buying from a big company and this model a peer-to-peer marketplace or a two-sided marketplace You'll see that model basically being shown and discussed throughout the next two days So Airbnb to give it some context has 600,000 rooms in six years the largest hotel chain on the planet the intercontinental has 650,000 rooms in 663 years So in 10% of the time almost as many rooms the other thing so peer-to-peer marketplaces are very Easy faster and more flexible. Let's say to grow and to be responsive But also from a resilience perspective when there's a demand surge because there's the World Cup in Rio or there's You know a huge issue called the hurricane Sandy in New York These marketplaces are much more adaptable to the necessities of communities than the other capital-intensive very structured completely owned hotels so one of the things that we see as as Movements and economies mature is we impersonate each other We actually get good at copying things that work and you'll see the two-sided marketplace and the model where? The platform takes a percentage for bringing actors together buyers and sellers That's a model that you'll see repeated and refined as we go Here's an example, which is a company started in the UK called fanbed. They were really big football Fans whenever there was a big game there wasn't there weren't places to stay So this is a community Organized around sport and you'll see this model applied hundreds and hundreds of times all over the world We're learning rapidly from each other as you heard earlier and also some of the research and the general feedback from these Marketplaces is that we love being connected to other people that there has been a joy and a liberation in actually being connected to individuals What I think a big part of what's fueling what's happening and the speed of the movement is the culture of generosity The characters to the right or the we share community who are conspicuously generous and trying to Enable all sorts of things. There's another kind of generosity that I refer to as open-air experiments That's to the left in that case believe which is in 2007 the first big bike sharing service since that time over 500 cities have launched bike sharing services all standing on the shoulders of what we were able to learn from the open-air experiment of the lead Aloja Vasia Aloja Vasia in Portuguese it means empty shop This is another great example where last winter in Sao Paulo where it's quite cold even though Brazil is You know a hot country in in more ways than one They started with an empty shop and the idea in a very conspicuous location was Bring really beautiful things to donate to other people and so the shop filled up over time They rate they had three hundred and three point two tons of Clothing donated but also it was such a conspicuous and such a beautiful model that they have decided to open source it and now Aloja Vasia or empty shop is happening all over the world So this is one of the things also the open-air experiments and the open sourcing have been really one of the ways that we've accelerated the movement and learning from each other and sharing a Gentleman who's over decades has done work on this idea of the Maturation model for corporations and movements is dr. Adiza's it's a long conversation But the short version is I think that we are in phase one of the collaborative economy between go-go and adolescence We know this And it's worth saying that while we as humans die Companies and movements and economies don't have to because when they get to like late prime or aristocracy They can partner or in innovatively reinvent themselves, and that makes brands resilient One of the ways that we know that we're in adolescence is because we're getting red flags on the play that we're basically Playing it out so that we've now rubbed up against sufficiently policymakers and regulators and some other incumbent industries In cities and in places where we're working. That's a good thing from my perspective It means that we're maturing and that people are taking it seriously enough to begin to be concerned and engage So and lastly we have a very diverse Ecosystem that's emerging another way that we know that we're maturing as we see concierge services and Companies that are actually renting cars to people who want to be drivers and lift inside car who don't have their own cars Those secondary offerings are evidence of a more mature marketplace as well It's worth also just saying in brief that I'm hoping that in the next two days We'll also discuss the need for further diversification So that the collaborative economy isn't really something that looks like sharing for rich people But we have the ability to more broadly Provide access to many different services And I didn't even say Kansas Jeannie's definitely out of the bottle. No way we're going back Brands can play very big here one quick thing that I also and you'll be hearing from my colleagues shortly One of the big questions that I've been focused on in the last couple of years is the relationship between value capture and value Sorry value created and value captured Who creates the value and who gets to reap the rewards and is that equitable? Bless you. So if we have a relationship where we basically have For example, quirky, which is a crowd sourced inventions platform where they create consumer products and GE One of the generals that's working hard to make it into this new era Form a partnership and GE actually decided a couple of years ago. They're focused on B2B only not consumer so essentially they Were convinced by this very dynamic founder of quirky to give them To give quirky give in quotes the patent portfolio and put it on quirky's platform to make it available To its global community to actually use the technology that GE had invested in for other things Directed to consumer products. Well, the first thing that's launching this week is the arrows air conditioner Dr. Garthin Leslie was the is a retired 68 year old employee of the Department of Energy in the United States and He really hated these big ugly air conditioners in New York that turn out to use 20% of the electricity So together they created this new device. It's it's launching. It's great. It's good for both companies Certainly, but I asked the question. Well, what is dr. Leslie get and it turns out that with this model dr. Leslie gets $700,000 check As a as a compensation for the invention So we're looking at and we're exploring many different models for how we share the value and value doesn't only mean money But I welcome all those conversations in the next couple of days Please bite off more than you can chew and then yep chew like hell Welcome to San Francisco and thank you very much