The On-Demand Economy

Cynthia A. Montgomery; James  Weber; Elizabeth Anne Watkins

Technical Note | HBS Case Collection | September 2015

The On-Demand Economy

by Cynthia A. Montgomery, James Weber and Elizabeth Anne Watkins

Abstract

This note describes the emerging on-demand economy, also referred to as the sharing economy. The note highlights several companies including Uber and Airbnb that exemplify this new mode of competition, a model that threatens to disrupt traditional firms. Uber provides ride services much like a traditional taxi company, but it owns no cars and employs no drivers, and instead matches independent car owners with customers looking for rides. Airbnb provides a lodging service, but owns no hotels, and instead matches home owners with extra rooms with customers looking for a place to stay. The note allows students to explore what impact such companies might have on traditional business models, what impact they might have on labor and how people work, and whether existing regulations aimed at traditional business models are adequate for the new model.

Keywords: regulation; reform; Disruption; Disruptive Innovation; Strategy; Technological Innovation; Labor; Employment; Working Conditions; Human Capital; Rights; Organizational Design; Social and Collaborative Networks; Service Industry;

Language: English

Format: Print

24 pages

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Citation:

Montgomery, Cynthia A., James Weber, and Elizabeth Anne Watkins. "The On-Demand Economy." Harvard Business School Technical Note 716-405, September 2015.

In 2018, Swedish furniture maker IKEA was undergoing a significant transformation. Challenged by the rise of online shopping and changing consumer behavior, and mourning the death of its founder, the Company's top executives knew they had to step out of their comfort zones and embrace new strategic initiatives to stay relevant. But which initiatives, executed where, when and how, would enable IKEA to achieve its goals in a way that was profitable while creating an IKEA they would want to pass on to the next generation of co-workers and customers?

Case | HBS Case Collection | October 2019 (Revised June 2020)

The Predictive Index

Lynda M. Applegate and James Weber

Mike Zani and Daniel Muzquiz needed to decide next steps to create a new category in the human resources consulting industry and scale their company.
Zani and Muzquiz, serial entrepreneurs, acquired Predictive Index in 2014. Previously, as clients of the 65-year-old Predictive Index, they had used its behavioral assessment tool to help them hire staff and build teams and they strongly believed in its value. They also believed, however, that Predictive Index had the potential to be something more. After acquiring the company, they invested in technology and people to modernize the business, and Predictive Index earned recognition as a “best place to work.” In 2018, they developed a Talent Optimization platform, an offering that had the potential to transform the industry by helping companies align their business strategies with their human capital and leadership development strategies. In late 2019, as they prepared a broad rollout of Talent Optimization, and planned to scale their business by an order of magnitude, the pair wondered what hurdles they might face along the way and what other steps they should take to reach their goals.

Keywords: Human Resources; Selection and Staffing; Talent and Talent Management; Recruitment; Corporate Entrepreneurship; Venture Capital; Change Management; Disruptive Innovation; Market Platforms; Growth and Development Strategy; Consulting Industry; Service Industry; United States;

Citation:

Applegate, Lynda M., and James Weber. "The Predictive Index." Harvard Business School Case 820-034, October 2019. (Revised June 2020.) View Details

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The case discusses the strategy of CIAM, a French activist investment firm, involved in a case of a buy-out of minority shareholders in the telecommunications sector. Altice NV, an international telecommunications company based in the Netherlands that owned more than 77% of SFR Group shares, made a bid for the remaining shares of France’s second largest mobile operator. Believing that the offer was woefully inadequate and constituted an abuse of power, CIAM had been fighting for a better offer as one of SFR’s vocal minority shareholders with a series of action plans—leveraging legal, communications, and public relations tactics. CIAM had just received a new piece of information, divulging a potential misuse of SFR corporate assets by Altice, and was discussing next steps.

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The On-Demand Economy

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