Smartups*

sharing economy as first splash of the next wave of startups.

Roope Mokka // Demos Helsinki @ KTH course on Future of Media //

*based on the forthcoming ”smartup manifesto”

Demos HelsinkiWe are an independent

not-for-profit think tank operating in the

Nordic countries.

All of our projects are beneficial to the

society – society is our second client.

We have ten full time employees from

various backgrounds.

We focus to democracy and resource smart

economy.

We combine futures studies and co-creation

in our projects.

Roope Mokka // Demos Helsinki

*all natural resources are in essence commons.

They are primarily outside markets and pricing systems, thus ”natural”.

This is a presention about how ICT can maintain a balance of the commons, known as natural resources and ecosystem services, i.e. stop overexploitation of these fundamentally shared resources by changing the way we live.

Smartups and commons

first lets try and understand how Megatrends grow business?

How can you say so?

Let’s take a look at a very familiar example.

?

computers in 70’s

8

In 1984 was a megatrend moment.ICT was connected to a megatrend of the 1980’s and 90’s: Individualisation. So personal computing began.

Steve jobs understood megatrendsthat the biggest new forces of the 80’s were:

INDIVIDUALISATIONCOMPUTING POWER

Personal computing

now a part of everyday life.

what are the Megatrends of 2014 driving startups ?

groupcentricness

Resource scarcity and climate changE

This is smart business

digitalization ofthe material world

The change is already here.

Oil Coppe

r PhosporCultivated land

Water N

atural

gas

consumption/head is bound to drop

Life

exp

ecta

ncy

Wea

lthInnovationsFreedom

Happiness Love

with the current model its means...

Probably not... However things are going

to change massively and fast.

BOTTOM LINE: What changes the most?

Most natural resources are consumed by

Homes Cars Food Shopping Consumer electronics Tourism

Homes

Cars

Food

Housing

Mobility

Food

demand &disruption

Housing

Mobility

Food

This is key areas where a new breed of

startups is emerging.

What changes is our decisions.

natural resources are decisions

how to impact them?

WTF areSmartups?

Google to Buy Nest Labs for $3.2 BillionInternet Company Extends Reach Into Home with Buy of Thermostat, Smoke Detector Maker Jan. 13, 2014 6:46 p.m. ET

News This Year

Opower Shares Soar in IPOApril 4, 2014, 10:18 AM PDT

Uber Sets Valuation Record of $17 Billion in New FundingBy Serena Saitto and Brad Stone Jun 7, 2014 11:15 AM GMT+0200

Airbnb Might Soon Be Worth $10 Billion, Valued More Than Hyatt HotelsMEGAN ROSE DICKEY MAR. 20, 2014, 9:35 AM

The nature of the biggest startups is changing.

The Wall Street Journal 2014

Teksti

”Due to their relationship to natural resources, smartups are essentially startups that help free their users from inefficient use of natural resources. In a word, they do more with less. ”

Smartup Manifesto, 2014 (unpublished)

Teksti

”The emergence of services and technologies in the intersection of physical and digital changes both. Rather than everything being digital or physical, everything becomes something else. This field of services is currently being defined by smartups.”

Smartup Manifesto, 2014 (unpublished)

Driverless cars

Sharing Optimisation

Upcycling and

refurbishment

Dematerialisation and Smart

substitution

3 improving physical assets by implementing energy efficiency solutions for homes, as well as various circular economy applications.

4 Using smart substitution to replace resource-intensive practices.

2 Optimizing the use of physical inputs through the use of smart home, metering and gamification applications.

1 increasing the utilization rate of physical resources by sharing.

There are four major models in which a business can proliferate resources and therefore create value out of resource scarcity.

1

4

2

3

Driverless cars

Sharing

Airbnb

Driverless cars

Sharing

Hoffice

Driverless cars

Sharing

Venuu

Driverless cars

Sharing

Bla Bla Car

Driverless cars

Sharing

Open Utility

Driverless cars

Sharing

We share solar

Driverless cars

Sharing

PiggyBaggy

Driverless cars

Sharing

Feastly

Driverless cars

Sharing

Swap.com

Driverless cars

Sharing

Sharetribe

Driverless cars

Sharing

= increasing the utilization rate of physical resources by sharing.

Driverless cars

Optimisation

Enerfy

Driverless cars

Optimisation

Nest

Driverless cars

Optimisation

Opower

Driverless cars

Optimisation

Caretosave

Driverless cars

Optimisation

= Optimizing the use of physical inputs through the use of smart home, metering and gamification applications.

Driverless cars

Upcycling, renewal and

refurbishment

Driverless cars

Upcycling, renewal and

refurbishment

Bio-Bean

Driverless cars

Upcycling, renewal and

refurbishment

Bundles

Driverless cars

Upcycling, renewal and

refurbishment

Etsy

Driverless cars

Upcycling, renewal and

refurbishment

Terracycle

Driverless cars

Upcycling, renewal and

refurbishment

RVS

Driverless cars

Upcycling, renewal and

refurbishment

= improving physical assets by implementing energy efficiency solutions for homes, as well as various circular economy applications.

Driverless cars

Dematerialisation and Smart

substitution

Bitty

Driverless cars

Dematerialisation and Smart

substitution

Oculus Rift

Driverless cars

Dematerialisation and Smart

substitution

Beyond Meat

Driverless cars

Dematerialisation and Smart

substitution

DHL in collaboration with Amazon

Driverless cars

Dematerialisation and Smart

substitution

= Using smart substitution to replace resource-intensive practices.

Driverless cars

Sharing Optimisation

Upcycling and

refurbishment

Dematerialisation and Smart

substitution

3 improving physical assets by implementing energy efficiency solutions for homes, as well as various circular economy applications.

4 Using smart substitution to replace resource-intensive practices.

2 Optimizing the use of physical inputs through the use of smart home, metering and gamification applications.

1 increasing the utilization rate of physical resources by sharing.

There are four major models in which a business can proliferate resources and therefore create value out of resource scarcity.

1

4

2

3

Smartup Manifesto, 2014 (unpublished)

Driverless cars

Sharing Optimisation

Upcycling and

refurbishment

Sharing Optimisation

Upcycling and

refurbishment

Dematerialisation and Smart

substitution Smart substitution

Smartupvalue

creation hotspot

However, the real impact lies in combinatory models.

Smartup Manifesto, 2014 (unpublished)

Want to make money? Leave social media, photosharing,

e-commerce, gaming...

Eurostat

Startup SmartupMass market Big marketProof of concept Sufficient marketQuick exit Sustainable value creationDisruption of markets Transformation of infrastructureWinner takes all Market creationCommunications and entertainment Housing, transportation, food, energyARPU CLV

Born global Global platforms for customisation and localisation

Facebook, Google, Apple, Ebay, InstagramAirbnb, Über, Opower, Nest, BlablacarExit via IPO or acquisition by digital corporate

Exit via acquisition by incumbent (or digital corporation)

Freemium and long tail Transactions and ESCO as serviceTime ThingsMore value out of personal relationships More value out of personal propertyOwnership (free or paid for) AccessMass exodus to next service Sustainable valueCreating new resources (e.g. connections) Efficient use of current resources (proliferation)Virtually unlimited pool of resources Tangible pool of assets base Free for users Cheaper for users

End of big companies?

What can you do? Apply Now to the Smart Retro Programme.

Thanks!