WORKSPACEDESKSPACE

MEETINGSPACEEVENTSPACE

Utrecht, December 2012

2013: SERENDIPITY RULES OUTLOOK & STRATEGY

SEATS2MEET.COM AND THE MESH.

INTRODUCTION.

Our society is changing. In our Western world large corporations and institutions become smaller and less infuential. Traditional economic and marketing models/methods no longer work. It becomes more and more difcult to generate business from and with companies who are, in spite of constantly downsizing and cost cutting, still losing market share.

The individual is gaining a more central position in our economic society and as an infuencer within organizations. It is no longer all about the organization itself, but about the people around which an organization is built. The real power within the Interdependent Economy of the Society 3.0 will shif to the consumer or the citizen. As it happens these people organize themselves. They want to participate. They want to engage with suppliers. These engaged consumers or ‘Prosumers’ (Tofer, 1980) (Tapscot, 1995) want to co-create in order to develop customized products and services of impeccable quality. Transparency, accountability and authenticity are the core values.

The Internet makes these afairs transparent, making the prosumer more educated than ever on what’s for sale at which price or on how your organization interprets its social role and responsibility. The prosumer has a whole range of alternative suppliers, provided by his or her social network, at its disposal. The prosumer wants to chose, can chose and will chose. Hence the Organization30 will have to seek an alliance with prosumers to ensure that consumers are participating at an early stage and in doing so, determine what is being produced. Social Business if you like. In this case it is not about the product itself. More and more products are being packaged in a service. Many people want to have access to something, but do not necessarily have to own it. In their book ‘What’s mine is yours’ the authors Botsman and Rodgers call this development collaborative consumption (2010). We prefer to call it collaborative prosumption. Network Value Creation. Collaborative prosumption means when we create economic value in the Interdependent economy, we are moving automatically away from the traditional value chain towards so called value networks (Allee, 2008) (Benkler, 2006).A value network is mainly characterized by shared points of view and a path of creation that is mutually discovered in a context of collective responsibility. In the collaboration with or within organizations the community leader facilitates the process as much as possible, but you can’t call this managing. There is an open structure: for new knowledge and contacts one can make an appeal to the entire outside world. The same goes for the capturing and making the acquired knowledge by the value network available; the old ‘team thinking’ is disposed to keeping this within their walls; but value creation is of course best served by open connections.

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SEATS2MEET.COM AND THE MESH.

INTRODUCTION (2).

Boundaries continue to dissolve: value networks are extraordinarily dynamic and fow into each other. That is why it is so difcult for outsiders to understand: it is not always an obviously recognizable team or project group that is on the job. The work is also no longer done between four walls under a single roof, with the name of the organization on the façade of the building. The places where new value creation takes place are hard to identify… they can be found in what we like to call The Mesh, THE network of networks.

Mesh networks can be described as a network system of nodes where each node must not only capture and disseminate its own data, but also serve as a relay for other nodes, that is, it must collaborate to propagate the data in the network (Wikipedia, 2012).

Traditional organizations will become increasingly reliant on independent professionals for value creation. In the next 10 years in the Western capitalist world the number of Self Enterprising Professionals (SEP’S) or Knowmads (ZZP in Dutch) will probably rise up to 40% of the total working population. These SEP’S progressively work in diferent compositions (cluster of value networks) with diferent clients. Society30 organizations will be innovative network organizations within their own Mesh. They will grow towards so-called real time companies: network organizations with permanently connected stakeholders, where informal and formal relationships fourish.

The people of these new value network organizations need virtual and physical locations to meet and to collaborate. The ofce as we know it, is gone. The traditional school, library and meeting centre will follow. The need for new physical locations on new geographical locations, where people can meet, work, exchange information and more is growing fast. It is a revival of the 3rd Place (Oldenburg, 1999). Regus, the largest provider of fexible workspaces in the world, labels 3rd Places in their 2011 annual statement, as “exciting opportunities to grow the business” (Regus, 2012).

We have taken this development even a step further.

Our co-working formula Seats2meet.com (S2M) ofers venues for co-working, meetings and collaboration between Knowmads and traditional organizations on their way to the Society30. A super hub & spoke network of physical co-work, ofce and meeting locations, where besides dedicated locations even individual co-working places in 3rd party ofce buildings (belonging to companies who believe it is an asset to welcome outsiders within their walls) are participating.

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SEATS2MEET.COM AND THE MESH.

INTRODUCTION (3).

Our meeting rooms and ofce spaces are booked by regular corporate clients and Knowmads who pay a fee per seat-used (and not per room), where pricing is based on a sophisticated yield management system. For Knowmads who just want a place to work, meet and connect with others, we ofer co-workspaces, Wif, beverages and even an occasional lunch free of charge in old monetary terms. ‘Free’ means however ‘no free lunch’: upon reservation the bookers/co-workers tell the system, thus the S2M network, what topics he/she is working on, where his/her interests lay and more. This way the booker commits him/herself to the network: he/she is available for unexpected meetings and maybe called upon by traditional clients in the meeting rooms to share their expertise and knowledge. Payment by Knowmads is therefore done by means of social capital. As traditional organizations in transition are renting regular meeting rooms still pay per seat in traditional Euros, we have created a monetary system linking traditional and social capital. On top of every physical Seats2meet.com location there is a real time virtual blanket of information and knowledge of people present that can be cleverly used. In this way co-working and meeting other people at Seats2meet.com locations become unexpectedly relevant, useful and become a new way to connect and form new ways for cooperation.

Serendipitously.

We go even further: we facilitate free of charge for every stakeholder a dynamic (mobile) sofware platorm where professionals can interact, virtually work and meet. Also, when a physical meeting room is booked through the S2M online booking system, a virtual meeting space is generated automatically and linked to the group of people atending that meeting, training session or conference. This service is ofered in close cooperation with the Helsinki based company Meetin.gs . These virtual meeting rooms or classrooms are used to interconnect participants upfront, to communicate with participants before and afer the physical session and to communicate organizational details around that meeting. A meeting/event 2nd screen makes it possible to share real time the content of the event/meeting with the outside world.

With these sofware systems we enable our stakeholders to collaborate real-time within the Social Economic Entities of the world of Society 3.0. In blurring these virtual and the physical products, services and logistic components around our physical locations we have created an organization in, what Pine & Korn name in their latest book Infnite Possibility (2011) ‘The 3rd Space’: “The digital frontier, lying at the intersection of digital technology and ofering innovation, beckons companies seeking to create new customer value by mining its rich veins of possibility… But by far the greatest value will come from those innovations that create third spaces that fuse the real and the virtual.”

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SEATS2MEET.COM AND THE MESH.

INTRODUCTION (4). Thus the 3rd Place has become the 3rd Space.This 3rd Space enables us at Seats2meet.com to ofer a unique, tailor-made experience, with a serendipitous educational element, to all our stakeholders. ‘Experiences’ at Seats2meet.com locations become ‘Transformations’, in line with Pine & Gilmore’s theory of “Progression of Economic Value” (The Experience Economy, updated edition, 2011), where ‘Transformations’ are the subsequent drivers of value creation after the traditional ‘Experiences’. We as an organization, get back a lot. The return is immense. Our stakeholders appreciate our products and services tremendously and help us to position Seats2meet.com on the ‘free agents’ mesh. They create an enormous fow of buzz on the web (we used to call that PR. in the old days); they feed us with tips, reviews, knowledge and their time (that used to be called ‘marketing’) and actively promote us to other Knowmads and to corporate and governmental organizations (that used to be called ‘sales’). Whenever they have ‘real business’ they book their training and meeting rooms at Seats2meet.com locations without asking for a discount. So at Seats2meet.com we no longer have a pr, sales- or marketing and reservation department. How do you think that works out for our operational costs? And the still growing army of ‘fans’ who do our commercial activities is staggering.

With (potential) co-working operators worldwide we now share our co-working reservation & yield management system, the property management sofware and operational knowledge (partly free) through a special program called Myownseats2meet.com.

In the Netherlands alone we have grown this way within 2 years from 1 location to over 50 locations, while internationally we are on the brink of making the same waves. 2013 will be the year of the tipping point for our organization. Globally co-working is on the rise. There are over 2500 locations world wide and just recently Marriot hotels entered the market with another 3000 locations.Seats2meet.com aims to be a global player in this fast growing market.

Marielle SijgersRonald van den Hof

December 2012.

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SEATS2MEET.COM in 2013

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SEATS2MEET.COM in 2013.

“An organization that succeeds in getng a serendipity machine operational within its own Mesh will be able to valorize the infnite potential of a highly resilient source of value. It will be able to work with and in the interest of stakeholders to create products and services of great value.” Sebastian Olma, The Serendipity Machine, 2012.

COWORKING, OR RATHER NEW VALUE CREATION, IS ON THE RISE. GLOBALLY!

The annual survey on co-working worldwide by Deskmag shows an incredible growth of co-working locations of over 200% over the past 2 years. These numbers show that co-working is here to stay and although some may be skeptical of a future where 'not working in a dedicated ofce is the new standard for value creation', many of us realize that co-working has become a non reversible trend.

The survey also shows that almost 80% of the co-working spaces/locations, like the Hub in Amsterdam and the Beta Haus in Berlin, still operate as a community with a fxed group of 'members' working there. This frst group of users experience the 'closed network' as a strength of co-working, but we saw in 2012 that the traditional model of coworking, based on these monthly membership fees, doesn’t grow in comparison with the S2M model. The US based booking ofce Loosecubes went out of business as the VC involved pulled the plug, due to the slow growth of ‘members’.

We believe that it is fne to work closely together with people in networks, but a traditional membership is not the solution. Eventually co-working, or rather new value creation, can only really boom when these networks of co-workers are 'opening up' and seek the connection with the traditional organizations. Even stronger: As said before, we believe that co-workers are the key in connecting the 'old' and the 'new’ and this connection leads to a new way of value creation within the Interdependent economy of Society30.

So our aim is to make every visit to a S2M location count: the unexpected relevance when meeting other people at a S2M location is our extreme, co-created added value. Serendipity. Therefore we need a lot of coworkers. Lots of them!

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SEATS2MEET.COM in 2013.

Seats2meet.com International connects the physical locations through the web, thus creating a 3rd Space ecosystem with a layer of unique transactional-, social sofware and real time dashboards. This sofware system enables S2M to ofer a serendipitous experience for its visitors: there is always an unexpected, but relevant meeting on the physical locations, which is the unique added value for any S2M location.

The choice regarding the location to work or to meet at will no longer (only) be dependent on geographical preferences, but on the knowledge and skills available at a particular location.

This Seats2meet.com Mesh we created, has an enormous new potential.

Since we made it compulsory for Knowmads to book upfront and register, we don’t only know who these people are, but we know their talents/knowledge, their social networks, as well as their mail addresses. From the corporate traditional bookers we know not only who they are, but also what the purpose of their meeting is. Around the physical meet up of all these people we see a range of new interactions between them, creating a demand for additional services: car sharing, team buying, book exchange, virtual meeting spaces, virtual classrooms, matching, dating, social dining, logistical services and social connections during events, couch surfng, skill sharing, lost & found services and more.

So, for starters, we created in the Netherlands a fast growing group of people to whom in 2013 we can up-sell all kinds of new products and services, thus realizing the desired growth in turnover. This is our Mesh. Our future.

The focus of our company is changing dramatically. We are moving from being a location operator to a combination of a conceptual sofware development exploring company and a web-department store, selling relevant products and services to knowledge workers. A real time, social business. 2013 we will exploit our potential with new products and services in the Dutch Mesh, where internationally the focus will be on the creation of a global Mesh.

Our present activity as a location operator is no longer our core business. Our locations may be sold or run by another company in the near future. S2M International will pursue global growth as the concept-, software- and brand owner.

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SEATS2MEET.COM in 2013.

THE S2M.com MESH IN THE NETHERLANDS.

A survey of the Roterdam School of Business in 2012 shows that our Knowmad network in the Netherlands is relatively young and fast growing: the majority of the visitors didn’t know us 6 months ago. This survey will continue in 2013 making the serendipity factor of Seats2meet.com as a concept more visible, thus ensuring future growth.

The network/mesh will grow. Our goals for 2013 are:

The number of visits per Knowmad will go up from 4 times per year to 5 times per year, as we ofer more services and connections. As the number of Knowmads rises to an estimate of 25.000, resulting in 25.000 X 5 = 125.000 workspaces booked.This creates over 400.000 touch points (booking confrmation, welcome message and review request), opportunities (points of sale) to communicate with the workspace bookers alone.

Mindz will grow organically in the same pace it has been doing so far, and will gradually raise in 2013 to 60.000 profles. That means we will have a potential Mesh (considering an overlap between Knowmads bookers and Mindz profles of 30%) of 25.000 + 40.000 = 65.000 coworkers, complemented by 2k plus bookers, and 175.000 meeting participants.

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visited S2M for the first time

Forecast2013

Number of people 2012

Number ofseats

booked 2012

Number ofpeople 2013

Number ofseats

booked 2013

S2M workspaces 15.000 60.000 25.000 125.000

Mindz.com 40.000 75.000

S2M meetingpsaces 153.000 153.000 185.000 185.000

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REGION 1REGION 2

REGION 3

Through the program www.myowns2m.com co-working and meeting centers are invited to join the physical network of locations.

The process of coworking seats participation is done automatically by a self explanatory software wizard.

S2M NETWORK.

The Spoke & Hub Model.

The business model of Seats2meet.com International for local operators is a freemium model. Participating as a location operator is initially free. Access to the sofware and knowledge is provided. Only when operators are making money on the seat and/or ofce rentals, they pay a (license) fee per seat, presently ranging 2 Euros per seat sold.

Regionally various S2M Work-, Ofce and Meeting Space operators collaborate with each other and share the social network of Residents and corporate bookers.

NETWORK DEVELOPMENT.

“The signifcance of weak ties is that they are far more likely to be bridges than are strong ties. It should follow, then, that the occupational groups making the greatest use of weak ties are those whose weak ties do connect to social circles diferent from one's own”

(Mark Granoveter in his paper ‘The strength of the weak ties, a network theory revised’).

S2M aims to grow the network of S2M locations. Globally.

Presently we have a large network in The Netherlands. Some locations are small, only ofering workspaces. Others are big, with over 20 meeting rooms. Locations are presented to the market under their own name, with the addition of the words“a Seats2meet.com location”.

In total we ofer presently (Dec. 2012) daily over 2800 cowork spaces and over 200 meeting rooms. There are 30 meeting space locations and (30+52) 82 workspace locations, including ‘pilot’ spaces at corporations like Cap Gemini, KPN and Arcadis.

Abroad we are located in Cairo and will open up in February 2013 a location in Tokyo, Japan.

THE NETHERLANDS 2013.

The fagship store of Seats2meet.com is at Hoog Catharijne, one of the largest shopping malls in the Netherlands, situated at the Central Station in Utrecht. The mall is owned by Corio. This location is operated by S2M International. Also located, in an adjacent building, is ‘Meeting Plaza Utrecht, a Seats2meet.com location’. This property is also operated by Seats2meet.com International.

In 2014 we aim together with Corio and the NGO Pax Christi to consolidate Pax Christi’s ofce and both our S2M locations in one World Peace Centre. The Corio mall development strategy is to create Life Style Centers, called ‘A Favorite Meeting Place’, in bigger cities as an answer to the changing consumers retails shopping behavior. The cooperation between Pax Christi and Seats2meet.com fts seamlessly into their plans.

In spring 2013 we will start working with Pax Christi. In our location Meeting Plaza Utrecht they will rent permanent OfceSpaces as well as WorkSpaces. This contract has a value in 2013 of €150.000.

A pilot project with VNU Exhibition will be a ‘pop-up’ Seats2meet.com during the international fair Bouw-Beurs 2013. htp://tinyurl.com/azcj34y . When this pilot project is successful it opens the door to a whole new range of international activities

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THE WORLD 2013.

In Japan we work together with League Ginza, a part of the UDS Company, a real estate developer, also active in China. htp://www.uds-net.co.jp/about . This company is owned by KOKUYO FURNITURE Co., Ltd., one of the leading ofce supply companies in Japan. Afer opening 1 location, they are aiming the next years for 30 locations in Japan.

In Egypt our partner is a local network group of people. htp://www.district-egypt.com . More international locations should follow quickly, with potentiality at this moment in Surinam, Germany, the US and the UK.

In the US, as a frst step to the US market, we have made a sponsor deal with the San Francisco based platorm Shareable www.shareable.net . That will generate web presence and publicity within the cowork communities of the United States for us.

As Seats2meet.com International we will start an international network platorm on coworking, new value creation and serendipity. Content for this new platorm, to be launched in March 2013, will be provided by an international team of free lance journalists, where video content will be provided by the Dutch company Fast Moving Targets. www.fastmovingtargets.nl

The frst step towards global branding was the release of the English book The Serendipity Machine in December 2012. In summer 2013 a new and translated version of the book Society30 will be presented to the international market.

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SEATS2MEET.COM

WORKSPACES

Working with the new value network around S2M locations, unique collaboration opportunities for the local operators arise.

S2M business coworkspace model is based on the combination of social and traditional capital. Working in the central lounge, using wif, beverages and on some occasions even lunch, is paid for by social capital: we ask our guests to identify their expertise when reserving a workspace. This allows us to match the total knowledge available in the network to those who are in need of this knowledge. This is how we bring the supply and demand of knowledge together. Serendipity, the unexpected relevance of meeting other people is realized that way.

We also ofer Premium Coworking: a seat, run of the house, in a quiet area. These seats are paid for in monetary capital (Euros).

Our coworkers create buzz around the S2M locations, form a virtual helpdesk and act as ambassadors: we no longer spend money on sales, marketing, PR & reservation departmental activities. This cost saving efect is caused by the reciprocity of the community, as part of the social capital.

Content creation to generate more buzz is also done by the workspace operator in cooperation with the location network by sponsoring roundtable meetings, book launches, network meet-ups, open cofees and more.

This way S2M has a weekly average (2012) of almost 1.5 million Twiter impressions and a tweet reach on Twiter alone, of close to 284.000 people in the Netherlands.

13MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY SUNDAY

SEATS2MEET.COM

RESIDENT SPACE

The network asked us to come up with a product/service where coworkers can show their connection to their favorite coworking location.

We call this a “Resident”. Residents can:

● Increase his/her personal branding; promote his/her skills and talents to corporations & event organizers and has free access to the “Freelance Market Place”.

● Get relevant knowledge: free access to the Cross Knowledge network and has exclusive access to the free seats for various events on S2M locations.

● Search our community dashboards for serendipitous people & meetings.Use his/her favorite Seats2meet.com location as your official office.

Next to that a Resident will have free access to some fantastic tools making his/her professional life more safe and beter:

A free Meetin.gs PRO account. Meetin.gs is the worldwide leading company in virtual meetings. Organize meetings, use the date picker, share materials & agenda and connect network members before and afer the meeting.

A free ViruaLock PRO account. Laptops are an easy target for thieves but with VirtuaLock thieves have no chance. Nobody touches your laptop while you're having a cofee break. VirtuaLock is a Dutch startup.

A free set of Lost&Found stickers. With the lost and found stickers you can easily mark al you important products. When they get lost the honest fnder can contact you immediately.

Residents pay a monthly fee of €49,- per month to S2M International.

Promotion: 3 months free trial period.

Fee is excluding V.A.T.

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SEATS2MEET.COM

DESKSPACES

We see a growing demand for temporary ofces. Temporary, for periods of 3 to 6 months for parties like startups and business accelerators. Project groups may even want to rent an ofce for a couple of weeks..

Some people may want to share an ofce, but still want a dedicated desk, others may want a dedicated ofce space, with some desks: ‘Shared ofce’ and ‘Dedicated ofce’ space we call that.

These ofce spaces are ofered at a periodical fee per seat/desk. The more seats rented the cheaper the seat becomes.

Ofce space users are automatically a ‘Resident’ with all its benefts.

Seats2meet.com International gets a straight forward transaction fee.

Dutch corporations have shown an interest in renting ‘branded spaces’: dedicated ofce- and or meeting spaces with their own identity for their own clients.

Also we fnd growing demand from corporations to rent a number of cowork seats and/or shared ofces for its employees at all Seats2meet.com locations. Presently we are talking to KPN and Capgemini.

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SEATS2MEET.COM

MEETING & EVENT SPACES

Renting seats in meeting rooms, thus creating a more private environment, is paid for by traditional capital. Meeting seats are rented by the hour.

Any meeting can be tailor made by using a range of additional products and services. Pricing becomes therefore less important for bookers, so we have created a fexible pricing system, where a sofware algorithm comes up with a price proposition, depending on the budget, client history, occupancy and other factors. Contract pricing and/or serial bookings are also possible.

Afer booking a meeting room the booker as well as the atendants have access to an automatically generated virtual meeting room, where the agenda, presentations, documents can be shared or Skype calls can be made. This service is ofered in cooperation with the Finnish company Meetin.gs.

Any meeting can be made ‘social’ by using our virtual community dashboard “The 2nd Screen”, ofering Twiter fountains, live streams, and connecting meeting participants as well as the present Knowmads in the central lounge during the meeting.

Larger event operators are being ofered ‘human assistance’, when the group request is larger than 30 participants. Contact is made with the client by a group of experts form the present locations to close the deal. This conversion increase is one of our objectives for 2013.

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SEATS2MEET.COM MEETING & EVENT SPACES.

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In order to make life more easy for large corporate event bookers, thus increasing the conversion, we also started on the Dutch market with the so called “tientjes deal” (Ten Euro Deals).

All elements of a large event are priced at € 10,-- pp. However, the deal is prepaid, with a strict cancellation policy.

Event sofware to publish the event and sell tickets is made available to organizers. Freemium model.

SEATS2MEET.COM

EVENT SOFTWARE

In 2012 S2M operators in The Netherlands handled over 350 events (event = meeting with over 50 participants) with approx. 35.000 seats.

In 2013 we ofer for event organizers our Event Sofware. This is a solitary product with its own earning potential. S2M Operators may act as resellers, so revenues will be split. The sofware is free when no admission for the event is charged. The moment the event organizer activates the admission fee module, the fnancial administration of invoices, money reception and more is provided. The organizer pays then a fee per seat sold to S2M International.

A fortnight before the event the organizer is asked to share his remaining seats with the last minute platorm ‘Last Minute Events’, where the seats are ofered to the S2M Residents in exchange for their social capital, in this case to assist during the event to make the event a soical afaire by real time sharing information with the outside world.

Another added value of this event sofware is the social dashboard “the Second Screen”, showing real time event info, matching participants, broadcast a live stream, twiter tools and so create a social network around that particular event.

S2M Event website & dashboard example:

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SEATS2MEET.COM 2013 SUMMARY

Our aim is to make every visit to a S2M location count: the unexpected relevance when meeting other people at a S2M location is our extreme, co-created added value. Serendipity. Therefore we need a lot of coworkers. They are the connection between the new Society30 and the traditional world.

The Mesh:We created a fast growing group of people to whom in 2013 we can up sell all kind of new products and services, thus realizing the desired growth in turnover. This is our Mesh. Our future.

Shift of core activities:Our present activity as a location operator is no longer our core business. Our locations may be sold or run by another company in the near future. S2M International will pursue global growth as the concept-, sofware- and brand owner.

2013 Strategy:Global expansion brand awareness.Exploitation of the Dutch Mesh, resulting in an increased turnover.

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