Sense Making

The end of ownership and the rise of usership

The rise and shift

Consumer technologies like Spotify and Netflix are leading the way, as you’d expect. Owning vast collections of physical media is now but a niche play for most consumers. Fast followers are enterprise technology users.

Click to enlarge

Enterprise software vendors figured out pretty early on too, that there was merit in taking away the pain of build and own your own. SaaS was born. The godfather was probably Salesforce. Amazon, an online retailer, now makes $25.7 B (11%) of all its revenue from renting out the same platform it used for its own services and figured it could resell to companies wanting to run online services like it does. Smart move as it’s early days for the enterprise.

What characterises the entire shift is a move to services and solutions that can be rented (subscribed to) and used without massive outlays of capital and ownership costs and with on-demand expenditure that can be planned. They focus on delivering optimal experiences that achieve desired outcomes of the customers choice. They are less damaging to the environment because in a circular economy, the resources can be reused over and over.

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