20 December 2017

Ownership is Dead-Make Way for Sharing Economy

Humans. Yes. We are the most advanced beings on the planet Earth. How? Because, Thinking is the virtue of our existence. In the 20th century, we held a certain way of thinking: If you needed something, you purchased it, be it cars, clothes, music, or a full-fledged multistorey house.

Advertising, coupled with elevated manufacturing and logistics, in the wake of ever-increasing population-widened the supply-demand gap to create an unprecedented global overflow of Luxury, Normal and Inferior goods, alike. Ownership was soon enough the way to define oneself; better say, defining one’s stature in the society.

Ownership is Dead-Make Way for Sharing Economy
The “Ownership” Model

A large part of the world’s population is still overwhelmed by the “Ownership” model but, change is the only constant, and yes, repercussions of it are visible now: most of us don’t purchase music records anymore. Books sell fewer copies. Owned cars pop up off the garage at weekends-not a weekday spectacle anymore. Many things, we used to own initially and keep at home, are no longer of need today.

For instance, let’s consider the case of music production and promotion. Artists are habitual to releasing albums, but do people actually purchase them? Well, they might purchase the same song on iTunes, or even better, listen to the track on-demand through multiple on-demand services available online.

The story doesn’t end here, though. Consider cars. What would it be like to access a car on-demand, and from the feasibility of your couch? You may say, we already have taxis, but yet again, it’s not as feasible as Netflix. Think of the case where you have your own car, and yes, you don’t own it.

Ownership is Dead-Make Way for Sharing Economy
Mobility-as- a-Service

Mobility-as- a-Service (MaaS) is a model under which you can own traffic sans ownership. You pay a fixed fee for it, like you do currently for Netflix and wherever you go, a dedicated on-demand app offers you instant access to taxis, cabs, buses, and the list goes on. MaaS is a part of a trend called, “as a service” model.

The framework was initially implemented in the software development sector-Companies offered access to their software services for a fixed fees against the convention, when you purchased permanent licenses for Microsoft Office Software. The model later moved into the real-world, beyond the barriers of the World Wide Web.

Ownership is Dead-Make Way for Sharing Economy
The “As a Service” Model

The “As a Service” model elevates in terms of performance when it is coupled with multiple sensors-better say, as the number of sensors in our vicinity increases, the on-demand services will turn out to be feasible than ever. People like to call this development the “Internet of Things”. However, when we bring into our perception, the current disappearance of products and their respective owners, we have the big picture quite clear, in fact, we can surmise it as the “Internet of no Things”.

Now comes the question of the millenium. Why is there so much hype about “as a service” model? Why did people stop owning up things? There are two particular reasons to support the deduction.

  • Ownership makes humans lazy. If we own something, after a point of time, we ignore its presence.
  • Our planet cannot survive with us consuming more than we need.

When we purchase something, say, a mobile phone, we get bored of it and soon enough, its importance declines for us. Alternatively, we may be using the particular product, just because we own it. On-demand slashes out the supply-without- need concept and transforms into a solution that is available only when we need it. Obviously, AirBnB gets multiple people to use the same apartment or BlaBlaCar uses the same car for multiple riders.

Ownership is Dead-Make Way for Sharing Economy
A Step Ahead

In the current scenario of rapid information-based industrialization, we are harnessing a large amount of resources to satisfy our material needs. As a result, the “on-demand” or “as a service” model fits in to minimize the redundancy arising due to the “ownership” model. In the near future, the “on-demand” model will evolve the way we lead our current lives, in which we are bound by ownership, in the case of housing, mobility, and communications systems.

Soon enough, we will have on-demand economy absorbing the current information revolution, by slashing out the ownership model. Think of the case where you don’t have to carry a phone in your pocket, but instead, pay for communicating with your peers as a service? It may sound ideal currently, but necessity is the mother of invention and this necessity will drive the biggest innovations in our era.