Euan Davis, Europe Head of the Center for the Future of Work, Cognizant

OREANDA-NEWS. “In the face of stiff competition, how can companies benefit from the digital transformation and thrive in the sharing economy,” asks Euan Davis. “In order to facilitate—and profit from—interactions between customers, companies have to truly understand their customers by listening to them and acting upon their feedback. This does not mean investing in big data for big data’s sake; it is about harnessing this data—from our buying preferences to how we like to interact with each other, from the way we move around to how we pay for things.” Excerpts:

“By using this data, companies can predict future trends and adapt their business models accordingly, before customers take their business elsewhere.

As our society becomes increasingly digital, traditional business models are being disrupted, creating new business models and opportunities that previously were inconceivable.

According to Upbeat research, the app sector will be worth ?31 billion to the British economy by 2025 and a recent report by IDTechEx predicts that the wearables market will be worth $70 billion globally by 2024. However, these are not the only new business models emerging thanks to digital technology and the business transformation it engenders.

People are undeniably at the heart of a sharing economy, so it is vital to understand and recognize consumer trends. Through the use of what Cognizant terms “Code Halos”, the information generated by every click, like or browse that surrounds people, organizations, and devices, companies playing a part in the sharing economy and beyond can access customer insight and use this to tailor their products and services to increase customer loyalty.

This data is crucial; it is the backbone of the collaborative economy model. It underlies the capacity calculations, social media integrations and digital technology interactions that together make on-demand access to places, people and items possible.

Existing regulations need to be adhered to until they are updated eventually to reflect our digital times, existing tax systems have to be respected, again until new models are introduced, and insurance policies and license requirements—especially relating to road safety and property protection—need and must be followed. Despite these challenges, the sharing economy will not stand still. Given how fast the landscape is changing, many companies now have to re-architect their core business and organizational models to help them transform their businesses into digital enterprises.”