Iii) Internet Of Things (Iot)

This is where every device gets hooked to the Internet, allowing bobble devices to work together to create new functions and services

Samsung aims to have 90% of its products linked to the Internet by 2017 and all of them by 2020. Samsung makes 665 m. products per year (including vacuum cleaners, fridges, washing machines, mobile phones, etc)

As a person's electrocardiogram is more identifiable than a fingerprint and harder to fake, Intel is working on a wearable device that uses the heart rate to authenticate the identity of the wearer over the Internet (John Davidson, 2015)

Under threat by on-demand services online is the big firm professional services model, ie charging premium prices for advice Traditionally a large organisation makes sense when it is more efficient for buyers & sellers to coordinate activities through a centralised hierarchy than to purchase goods & services directly. On the other hand, the Internet has changed all this by allowing buyers & sellers to connect directly

Disruptive innovation occurs if there is relentless focus on satisfying unappreciated customer's needs. In the professional services there is a rift between supply and demand with clients unable to afford or find the services offered by big firms. Also professionals are looking for different ways to offer, charge for and deliver their expertise. It is estimated that the annual cost of legal services for small to medium-size US businesses US'$ 100 b. (Rachel Botsman, 2015). The main priorities in employing legal professionals are price, responsiveness, efficient discovery & transparency.

"...Is it right that clients are paying steep fees for work done largely by junior associates? How can our success be measured by billable hours and not by the quality of work? Do we really want to slug away for a decade to try to make partner?..."

Botsman, 2015 a

There is a trend to professional service providers operating in a virtual marketplace. Some examples,

- UpCounsel, LawyerMatch, PrioriLegal, Lawdingo for lawyers;
- VouchedFor for accountants and financial advisers;
- RecruitLoop for recruiters;
- Skillbridge, Business TalentGroup, Clarity.fm, HourlyNerd, Liquidtalent, MBAco, etc for consulting are some of the start-ups offering on demand services online.
- UpCounsel's transactional revenue growth is 20% monthly
(source: Rachel Botsman, 2015)

"...they work by matching with the skills, pricing and availability needed. It's being labelled the "on-demand talent economy" ......a client posts a brief......the platform creates two or three best matches; to make the final selection, the client can chat online or call prospective attorneys with questions..."
Rachel Botsman, 2015a

Usually the administration, including billing, is handled by the provider with clients able to observe in real time the details of the service, ie how much the services are costing and for what.

In addition to the on-demand professional services, there are other services provided. For example,

- Airtask (finding someone to assemble your IKEA furniture);
- Mad Paws (finding a sitter for your pet);
- Helpling ( will send somebody to clean your house);
- Freelance Elance & ODesk (will find contractors in many fields like designers, assistance to Web developers, etc)

Currently 1 in 3 Americans are independent workers and it is expected by 2020 freelancers will outnumber full-time staff; also millenniums change jobs on average 6.3 times between the age of 18 and 25 (Rachel Botsman, 2015). This is linked with the desire for independence/autonomy, flexibility and freedom to choose work aligned with their interests. For example, Skillbridge (started in 2013) is an online platform that provides top tier consultants on demand. It now has more than 5000 consultants who are professionals with years of experience.

The impact of virtual marketplace with flexible labour force stresses the need for governments to rethink the concepts around taxes, insurance, sick pay, benefits, risk/responsibility allocation, predictability/security of income, etc when staff are not full-time employees

 

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