This is a quick summary of the book titled “The Mesh: Why the Future of Business is Sharing” written by Lisa Gansky … enjoy reading thenšŸ™‚

Traditional businesses follow a simple formula: create a product or service, sell it, collect money. But in the last few years a fundamentally different model has taken root – one in which consumers have more choices, more tools, more information, and more peer-to-peer power.

Mesh companies use social media, wireless networks, and data crunched from every available source to provide people with goods and services at the exact moment they need them, without the burden and expense of owning them outright.

What characterizes a mesh business?

1. The core offering is something that can be shared, within a community, market, or value chain, including products, services, and raw materials.

2. Advanced web and mobile data networks are used to track goods and aggregate usage, customer, and product information.

3. The focus is on shareable physical goods, including the materials used, which make local delivery of services and products – and their recovery – valuable and relevant.

4. Offers, news, and recommendations are transmitted largely through word of mouth, augmented by social network services.

Five disparate vectors make the mesh particularly viable and rewarding within today’s economic and cultural landscape :

1. The conomic crisis has bred distrust of old companies.

2. The crisis has also encouraged people to reconsider what’s valuable and important to them.

3. Climate change is forcing up the cost of doing business, including the making and selling of throwaway goods.

4. The growing population and greater urbanization create densities that favor mesh businesses.

5. Information networks of all kinds have matured to the point where businesses can provide better and more personalized services exactly when needed.

Trust is the key of mesh businesses. There are seven keys to build trust in the mesh :

1. Say what you do.
2. Use trials.
3. Do what you say.
4. Perpetually delight customers.
5. Embrace social networks.
6. Value transparancy, but protect privacy.
7. Deal with negative publicity and feedback.

How to design a great mesh?

1. Provide services or platforms that enable and encourage mesh business like Amazon Web Service, Paypal, Apple Store, Wikipedia, etc. A very important category of mesh-enablers is the social network such as Twitter, Facebook, Blogs, etc.

2. Leverage physical assets, both products and materials, as share platforms. Mesh share strategies enable compies to extract more use, and more profit, from their products more of the time.

3. Truly engage partners by mutually sharing resources and information – including customer feedback and other data in their preferences – that enable better designed, more timely, and more relevant products and services. The most important innovations often can’t be done alone.

4. Integrate the supply chain, in forward and reverse, Tight integration of distributed (not vertically integrated) supply chain increase efficiencies of cost and time. It is often improves the quality of raw materials, and the product or service to be integrated.

5. Extend the mesh ecosystem, that means the partnerships in doing business.

So, the MESH BUSINESS MODEL is the integration in harmony of elaborating partnerships with all key stakeholders in business strategy, managing physical flows of goods and services, and the massive flow of information through the social network or social media on the internet.


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