DaretoShare:MakingdatasharingacompetenceinthesharingeconomyThursday,10August2017

AISSIGGIS2017:LocationalBigDataandAnalytics:ImplicationsfortheSharingEconomy

Dr.StephanieL.WoernerResearchScientistCenterforInformationSystemsResearch(CISR)MITSloanSchoolofManagementwoerner@mit.educisr.mit.edu,@SL_Woerner

ResearchTeamDr.KristineDery (lead)Dr.StephanieL.WoernerDr.PeterReynolds

ThisresearchwasmadepossiblebythesupportofMITCISRsponsorsandpatrons.

©2017MITSloanCISR

MIT CISR

Sharingeconomy:bigandgrowing

Fiveprimarysharingeconomysectors:peer-to-peerfinance(e.g.,Venmo,SquareCash),onlinestaffing(e.g.,TaskRabbit,fiverr),peer-to-peeraccommodation(e.g.Airbnb),carsharing(e.g.,Uber,Lyft),andmusicandvideostreaming(e.g.,Spotify,Vimeo)

Generates$15Binglobalrevenues=5%oftraditionalrentalsectors

By2025,samefivesharingeconomysectorscouldgenerate$335B

Challengestogrowth:

• Majorregulatoryandfiscalissues

• Maintaininguniquenessandauthenticitywhilescaling

Partneringwithtraditionalorganizations,bothprivateandgovernment,isanopportunitytogrow

Sources:2014PwCreport(http://www.pwc.co.uk/issues/megatrends/collisions/sharingeconomy/the-sharing-economy-sizing-the-revenue-opportunity.html)

MIT CISR

Partneringbetweentraditionalenterprisesandsharingeconomybusinesses

Transactional(manyexamples)• Levi’spartnerswithYerdle todistributeunsoldmerchandise

• PatagoniapartnerswithiFixit towriterepairmanualsforclothing

• ChateauandHotelCollectionpartnerwithAirbnb tosellroominventory

Newbusinessmodels(fewsuccessfulexamples)• Partnershipsthatsharedata,drivenewcustomerinsightsaroundcustomerneedsandprovidenewproductsandservicestoaddresstheseneeds

Example:CityofBoston/Uber partnershipofferedpossibilityofnewservices,moreefficientinfrastructureplanningandwaystosupportsomeofthecity’smostdisadvantagedcitizens

Sources:M.Wright,“Yerdle,ShiftingMindsetsandtheSharingEconomy,”Unzipped,September14,2015(http://levistrauss.com/unzipped-blog/2015/09/yerdle-shifting-mindsets-and-the-sharing-economy/);N.Gloudeman,“HowYerdle andPatagoniaareboostingthesharingeconomy,”GreenBiz,April15,2014(https://www.greenbiz.com/blog/2014/04/15/yerdle-patagonia-collaborative-economy);J.Bluff,“MendingtheWorld– OneSeamataTime,”November26,2013(http://ifixit.org/blog/5620/patagonia-ifixits-perfect-partner/);G.Sell,“AirbnbannouncesfirstEuropeanhospitalitycollaborationwithChâteaux&Hôtels Collection,”BoutiqueHotelNews,Dec.12,2016,(http://www.boutiquehotelnews.com/home/news/2016/12/16/airbnb-announces-first-european-hospitality-collaboration-with-châteaux-hôtels-collection/)

MIT CISR

CityofBostonandUber

Partnership:Possibilityofnewservices,betteruseofinfrastructure,moreefficientinfrastructureplanning,andwaystosupportsomeofthecity’smost

disadvantagedcitizens

MIT CISR

Dataatthezipcodelevelisnotgranularenoughforinfrastructuredecisionmaking

51zipcodesintheCityofBoston

Populationperzipcodevariesfrom0(postofficeboxes)to28,000people

“WhilethedatahasbeenveryusefulinunderstandingthegrowthofandtheirserviceprofileintheCity,we’venothadalotofbigsuccessinputtingthedatatouseinamoreplanning-orientedcontext.”

-Jascha Franklin-Hodge,CIO,BostonSources:Zipcodemap(https://www.cityofboston.gov/images_documents/ZipCodes_tcm3-47884.pdf)andquote(https://www.boston.com/news/business/2016/06/16/bostons-uber-partnership-has-not-lived-up-to-promise)

MIT CISR

Sharing,especiallydata,inapartnershipalwaysdifficult

Whoevercontrolstheecosystemcontrolsthedataandestablishestherulesforpartneringandtransacting

Needtonegotiatewhichdatatoshare,atwhatgranularityandwhen

Valueembeddedwithinthedatahardtodetermineup-front

Requirestrust,establishedbyrepeatedbehaviorsovertime

MIT CISR

Whatcapabilitiesdoorganizationsneedtobuild?

Partneringcapabilities Identifywhatyourorganizationiswillingtoshareandnegotiatewhatisrequiredforallpartiestosucceed

Analyticcapabilities Abletomeaningfullystore,integrateandmanagelargedatasetsandmakethemavailablewiththerightlevelofquality,currencyandprivacy,aswellasusethatdatatoprovideinsights

Testandlearncapabilities Recognizevaluefromdatamaybemoreemergentthanknown,needtoexperimentandimprovise