Felix Ter Chian Tan Michael Cahalane Barney Tan

Felix Ter Chian Tan, Michael Cahalane, Barney Tan and Jonathan Englert – December 2017 GOGET FACILITATING COLLABORATIVE CONSUMPTION PRODUCT-SERVICE SYSTEMS (PSSS), A TYPE OF COLLABORATIVE CONSUMPTION SYSTEM THAT COMBINES PRODUCTS WITH (OFTEN DIGITAL) SERVICES, ARE BECOMING INCREASINGLY IMPORTANT FOR FIRMS’ ECO-FRIENDLY STRATEGIES AND NATIONAL AND LOCAL SUSTAINABILITY POLICIES. IT PLAYS A VITAL ROLE IN CREATING EFFECTIVE AND SCALABLE PSSS. THE CASE OF GOGET CARSHARE, AN AUSTRALIAN CAR-SHARING SERVICE, ILLUSTRATES THE STAGES OF DEVELOPING A PRODUCT-SERVICE BUSINESS MODEL, INCLUDING THE EVOLVING INTEGRATION OF IT THAT UNDERPINS GOGET’S SUCCESS. THIS CASE PROVIDES LESSONS FOR ORGANIZATIONS STARTING A TRANSFORMATION JOURNEY THAT INCORPORATES SHARED ACCESS TO PRODUCTS AND SERVICES VIA PSSS

GOGET FACILITATING COLLABORATIVE CONSUMPTION FELIX TER CHIAN TAN, MICHAEL CAHALANE, BARNEY TAN AND JONATHAN ENGLERT – DECEMBER 2017 Agenda The Growth of Collaborative Consumption Four Principles Underpinning Collaborative Consumption Business Models Car-Sharing Is an Example of a Smart Product-Service System Go. Get Car. Share’s PSS The Evolution of Go. Get’s PSS Lessons Learned and Practical Implications Concluding Comments

GOGET FACILITATING COLLABORATIVE CONSUMPTION FELIX TER CHIAN TAN, MICHAEL CAHALANE, BARNEY TAN AND JONATHAN ENGLERT – DECEMBER 2017 The Growth of Collaborative Consumption §Collaborative consumption refers to various socio-economic models that incorporate sharing, renting, swapping or trading goods and services. §The research questions we set out to answer were: § § Why have collaborative consumption business models emerged as an area of interest for organizations? Why have they become an idea that will change the world? §The answers are complex, but are rooted in the ability of collaborative consumption business models to tap into emerging markets that have arisen because of fundamental changes in people’s relationships with the objects they consume. §Economically, the austerity and crises of the “great recession” exposed the excess capacity problems of a throwaway culture riddled with the over-consumption of goods and services.

GOGET FACILITATING COLLABORATIVE CONSUMPTION FELIX TER CHIAN TAN, MICHAEL CAHALANE, BARNEY TAN AND JONATHAN ENGLERT – DECEMBER 2017 Agenda The Growth of Collaborative Consumption Four Principles Underpinning Collaborative Consumption Business Models Car-Sharing Is an Example of a Smart Product-Service System Go. Get Car. Share’s PSS The Evolution of Go. Get’s PSS Lessons Learned and Practical Implications Concluding Comments

GOGET FACILITATING COLLABORATIVE CONSUMPTION FELIX TER CHIAN TAN, MICHAEL CAHALANE, BARNEY TAN AND JONATHAN ENGLERT – DECEMBER 2017 Four Principles Underpinning Collaborative Consumption Business Models §There are four principles common to all types of collaborative consumption initiatives and that underpin these emerging business models. These principles are 1. 2. 3. 4. Critical mass; Idling capacity; Belief in the commons (a term invented by Botsman and Rogers and explained below) Trust between strangers.

GOGET FACILITATING COLLABORATIVE CONSUMPTION FELIX TER CHIAN TAN, MICHAEL CAHALANE, BARNEY TAN AND JONATHAN ENGLERT – DECEMBER 2017 Agenda The Growth of Collaborative Consumption Four Principles Underpinning Collaborative Consumption Business Models Car-Sharing Is an Example of a Smart Product-Service System Go. Get Car. Share’s PSS The Evolution of Go. Get’s PSS Lessons Learned and Practical Implications Concluding Comments

GOGET FACILITATING COLLABORATIVE CONSUMPTION FELIX TER CHIAN TAN, MICHAEL CAHALANE, BARNEY TAN AND JONATHAN ENGLERT – DECEMBER 2017 Four Principles Underpinning Collaborative Consumption Business Models §The PSS developed by Go. Get Car. Share in Australia is a prime example of this type of collaborative consumption. The products (cars) are owned by Go. Get Car. Share, which is responsible for maintenance, repair and control of the vehicles. Using web-enabled devices, customers reserve the use of a vehicle, which is used sequentially by different customers, each of whom pays for use of the vehicle.

GOGET FACILITATING COLLABORATIVE CONSUMPTION FELIX TER CHIAN TAN, MICHAEL CAHALANE, BARNEY TAN AND JONATHAN ENGLERT – DECEMBER 2017 Agenda The Growth of Collaborative Consumption Four Principles Underpinning Collaborative Consumption Business Models Car-Sharing Is an Example of a Smart Product-Service System Go. Get Car. Share’s PSS The Evolution of Go. Get’s PSS Lessons Learned and Practical Implications Concluding Comments

GOGET FACILITATING COLLABORATIVE CONSUMPTION FELIX TER CHIAN TAN, MICHAEL CAHALANE, BARNEY TAN AND JONATHAN ENGLERT – DECEMBER 2017 Go. Get Car. Share’s PSS

GOGET FACILITATING COLLABORATIVE CONSUMPTION FELIX TER CHIAN TAN, MICHAEL CAHALANE, BARNEY TAN AND JONATHAN ENGLERT – DECEMBER 2017 Agenda The Growth of Collaborative Consumption Four Principles Underpinning Collaborative Consumption Business Models Car-Sharing Is an Example of a Smart Product-Service System Go. Get Car. Share’s PSS The Evolution of Go. Get’s PSS Lessons Learned and Practical Implications Concluding Comments

GOGET FACILITATING COLLABORATIVE CONSUMPTION FELIX TER CHIAN TAN, MICHAEL CAHALANE, BARNEY TAN AND JONATHAN ENGLERT – DECEMBER 2017 The Evolution of Go. Get’s PSS Stage 1: Amplifying Pro-Social Objectives Stage 2: Ensuring Business Viability Stage 3: Blending Market and Social Logics Objective of Product-Service System Cultivating Trust and Belief in the Commons Improving Scalability and Idling capacity Leveraging Critical Mass and Reinforcing Collective Identity Role of IT Evangelization: Fostering Shared Beliefs Orchestration: Optimizing Resource Allocation Harmonization: Promoting Growth While Reinforcing Social Aims (2003 -2006) (2006 -2011) (2011 -Preseent) IT-enabled Collaborative Consumption

GOGET FACILITATING COLLABORATIVE CONSUMPTION FELIX TER CHIAN TAN, MICHAEL CAHALANE, BARNEY TAN AND JONATHAN ENGLERT – DECEMBER 2017 Agenda The Growth of Collaborative Consumption Four Principles Underpinning Collaborative Consumption Business Models Car-Sharing Is an Example of a Smart Product-Service System Go. Get Car. Share’s PSS The Evolution of Go. Get’s PSS Lessons Learned and Practical Implications Concluding Comments

GOGET FACILITATING COLLABORATIVE CONSUMPTION FELIX TER CHIAN TAN, MICHAEL CAHALANE, BARNEY TAN AND JONATHAN ENGLERT – DECEMBER 2017 Lessons Learned and Practical Implications 1. 2. 3. 4. 5. At First, Prioritize Pro-Social Objectives over Business Objectives Subsequently Establish a Viable Long-Term Business Model Reconcile Business and Social Logics if Business Growth Dilutes the Initial Pro-Social Identity Allow the Role of IT in Enabling the PSS to Evolve as the PSS Evolves Avoid “Ideal” Solutions that Don’t Work in Practice

GOGET FACILITATING COLLABORATIVE CONSUMPTION FELIX TER CHIAN TAN, MICHAEL CAHALANE, BARNEY TAN AND JONATHAN ENGLERT – DECEMBER 2017 Agenda The Growth of Collaborative Consumption Four Principles Underpinning Collaborative Consumption Business Models Car-Sharing Is an Example of a Smart Product-Service System Go. Get Car. Share’s PSS The Evolution of Go. Get’s PSS Lessons Learned and Practical Implications Concluding Comments

GOGET FACILITATING COLLABORATIVE CONSUMPTION FELIX TER CHIAN TAN, MICHAEL CAHALANE, BARNEY TAN AND JONATHAN ENGLERT – DECEMBER 2017 Concluding Comments §The four principles of collaborative consumption business models 1. 2. 3. 4. Critical mass Idling capacity Belief in the commons Trust between strangers