The Reciprocity Advantage Summary

“What’s in your company basement? Sharing unused assets could be your next big leap.”

1. Unlock the potential of unused resources

Every company has untapped assets, often sitting idle like neglected items in a basement. These resources, whether they are expertise, technology, or infrastructure, can be repurposed to create new opportunities and partnerships. Instead of letting them gather metaphorical dust, leveraging these resources can lead to innovation and growth.

Sharing these underutilized resources can reinvent your business model. IBM transitioned from hardware to services by utilizing its data management expertise. When old models fail, businesses can find renewed success by focusing on what they already have.

Sometimes, new opportunities emerge from unlikely allies. Microsoft faced resistance when its Kinect technology was hacked upon release. Instead of resisting, the company embraced collaboration by opening its platform. This created a wide array of uses for Kinect, far beyond gaming.

Examples

• IBM turned its past expertise into a lucrative analytics and data management service.
• Microsoft partnered with hackers to transform Kinect into a multi-purpose global tool.
• Companies like Task Rabbit repurpose idle resources, enabling real-time task solutions.

2. Experimentation fosters growth

Experimentation is a powerful tool for innovation. Maker spaces, like TechSpace in California, exemplify this. These collaborative hubs allow individuals to tinker, test, and create without the initial pressure of a profit. Such freedom often plants the seeds for groundbreaking ideas.

Companies that embrace experiments find unexpected avenues of success. Square emerged from repeated tinkering in a maker community, where creators shared feedback on prototypes. Companies embracing this culture boldly push boundaries and learn together.

Google’s experimentation with Google Fiber in Kansas City offers a strong example. By providing ultra-high-speed internet, they cultivated an ecosystem of innovation. This wasn’t just a tech trial; it was a way to understand and enhance their ability to scale efficiently.

Examples

• TechSpace generated products like Square by fostering collaborative creation.
• Google Fiber in Kansas City became a data goldmine for Google through shared innovation.
• Leading maker spaces worldwide continuously uncover groundbreaking ideas.

3. Sharing drives rapid scaling

TED achieved global reach by embracing an open-platform model with TEDx. By letting organizers host their own TED-inspired events, TED grew its audience and maintained quality control by promoting exceptional talks.

The ability to scale fast through co-creation is a game changer. Sharing your brand and giving others tools to build on it doesn’t dilute your value—it enhances it. LEGO’s CUUSOO platform is another striking case of scaling through collaboration.

Advancements in 3D printing amplify this growth potential. Imagine scaling a business not by manufacturing, but by letting global users print and innovate products. This democratizes access and allows limitless scaling possibilities.

Examples

• TEDx expanded TED’s brand into a global name while maintaining quality control.
• LEGO’s CUUSOO platform made customers co-creators of marketable ideas.
• 3D printing enables worldwide innovation without full-scale manufacturing.

4. Digital natives are redefining business

The generation born into a digital world brings fresh perspectives on property, collaboration, and innovation. Traditional models of intellectual property and rigid company practices are fading; sharing and open access are becoming the new norm.

Crowdfunding is reshaping investments. Kickstarter and Indiegogo allow anyone to contribute to projects they believe in, bypassing traditional funding sources. These digital natives value involvement over consumption, pushing companies to co-create rather than sell.

These shifts suggest that to thrive, businesses must meet this generation on their terms. Companies able to connect meaningfully with digital natives will drive progress across sectors.

Examples

• Kickstarter showcases the collective investment power of online communities.
• Digital natives value shared innovation over strict ownership, creating new challenges for IP-dependent firms.
• Interactive content fosters trust with younger, engaged audiences.

5. Global connectivity transforms collaboration

Connected technology has revolutionized collaboration, enabling massive innovation. Platforms like Task Rabbit redefine work by breaking tasks into distributable, bite-sized jobs that anyone can perform.

New opportunities also emerge when businesses actively engage customers. LEGO allows users to submit and vote for new designs on CUUSOO, giving loyal fans direct input. Crowdsourced development creates more impactful and successful products.

Harnessing online communities generates thousands of ideas no internal team could match. Companies can now expand their resources and perspectives tenfold simply by creating platforms for shared ideas.

Examples

• Task Rabbit aligns freelancers to complete small-scale jobs quickly.
• LEGO’s CUUSOO co-creates its product development processes with fans.
• Global collaboration often begins through simple submissions, accessible to all.

6. Gaming as an engine of engagement

Games offer access into a rich world of emotional connection. Players don’t just want entertainment; they seek accomplishment, community, and a sense of mastery. Minecraft, with over 100 million players, exemplifies how collaboration and creativity are central to today’s gaming culture.

Enterprise-level gaming has implications far beyond entertainment. The US Army’s war games simulate costly, real-world scenarios, preparing soldiers for unpredictable circumstances while improving institutional strategies. For companies, gaming invites fresh ways to connect with customers and teach teams.

Harnessing the emotional impact of games allows businesses to foster loyalty and community. No form of digital interaction comes close in encouraging sustained user connection.

Examples

• Minecraft fosters creativity, collaboration, and loyalty with simplicity.
• The U.S. Army harnesses gaming to refine real-time combat operations.
• Gaming companies help other industries test and teach complex ideas.

7. Cloud computing accelerates innovation

The cloud revolutionizes the scale and speed of innovation by facilitating global access to shared resources. With fewer barriers to technology and partnerships, businesses can expand and innovate more quickly than ever.

Cloud-based machine translation can break language barriers that limit international collaboration. Algorithms get smarter by analyzing vast digital datasets hosted on the cloud. This improves global accessibility for businesses and users alike.

New business models rooted in sharing economies become scalable through cloud technology. Industries shift from product-centric approaches to service platforms, expanding access and fostering worldwide co-creation.

Examples

• The cloud accelerates research with vast, instantly-scalable computing power.
• Businesses like Dropbox make global collaboration seamless and affordable.
• Machine translation technologies like Google Translate thrive on cloud learning.

8. Collaborative partnerships are essential

Collaboration no longer just involves internal teams – it extends to customers, digital communities, and even previously competitive companies. Embracing partners with diverse roles expands impact.

Microsoft’s success with Kinect’s broad uses came from changing their mindset. Similarly, open innovation appeals are driving industries to welcome competitor allies for mutual benefit. Sharing can spark industry-wide growth rather than small-scale wins.

Companies embracing open chains of development thrive in increasingly complex markets. Strategies prioritizing partnership drive success and broader skill-sharing.

Examples

• Businesses turn to open source intentionally (e.g., Microsoft post-Kinect success).
• Partnerships drive massive return growth (SaaS-focused players as emerging examples).
• Modern ecosystems like GitHub accelerate unified solutions across teams.

9. Redefining business as a service

In the digital era, every business should be seen as a service. By aligning resources to user needs, companies foster loyalty and expand opportunities across industries.

Examples reinforce the concept’s importance: IBM’s data success emphasizes adding value services on products outsourcing previously driven efforts towards agility and experience central for industry long-term improvements consistently reshaping transformations leveraging proper responses industry-tailored aspirations adherence rotating repeated strategies improvement ultimately naturally adopted momentum.

Takeaways

1. Look for unused assets and brainstorm ways to share them with others or repurpose them.
2. Test bold initiatives in small steps—experimentation helps identify opportunities.
3. Collaborate widely, from customers to competitors, driving untapped collective value.