doing better with less
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Why is the social networks phenomenon relevant to business?TRANSCRIPT
Doing better with less
> Why is the social networks phenomenon relevant to business?
London, 22nd October 2003
The Business of Community, March 2009
Agenda
> Context, purpose, objectives> Why is the social networks phenomenon
relevant to business?> What does this mean for you?> Discussion, Q&A
The Business of Community, March 2009
The law firm group
> History> Recently worked on
• Metrotwin – social utility> British Airways> Recommendation engine
• Carphone Warehouse> Social, eCommerce strategy
> Working on• User generated viral video
> Food brand• Web syndication engine
> Transactions in the ‘long tail’> Insurance industry
The Business of Community, March 2009
The Big Picture – Arrival of the Network Economy
The Business of Community, March 2009
The Big Picture – Hierarchy to Network
> Open Source• Slime mould, Swarms &
Emergent behaviour• Peer production proven
to outperform conventional command & control organisation
• SourceForge: 180k projects, 1.9m users
• Yochai Benkler – Linux and the nature of the firm
> Open Source Census• Europe shows the highest
usage with the United States lagging behind
• US Law: Open Source mandated for IT healthcare systems
• The rise of Ubuntu (& the fall of Microsoft?)
The Business of Community, March 2009
The Big Picture – Social software changes behaviour > The Social Software
Revolution• 300m+ individuals in social
networks and online communities (internet users just passed 1bn mark)
• YouTube grew from 1 to 100 million users in 18 months; Google took 72 months
• At December 2007, there were 50m virtual world users, led by Second Life with 11m
• Facebook> More than 150 million
active users> More than 800 million
photos uploaded to the site each month
> More than 20 million pieces of content (web links, news stories, blog posts, notes, photos, etc.) shared each month
> More than 20 million active user groups exist on the site
The Business of Community, March 2009
The Big Picture – Markets are conversations> The year of Twitter
• 2000 new users per day• Approaching 5m users• Celebrity take up
> Stephen Fry> Jonathan Ross> Comedians> Obama has the highest
number of followers on Twitter
• Serious business use> News gathering> Market intelligence> Product announcements
• Dell, Ford, Kodak, Samsung, Starbucks
• New ways of story telling> Japan
> The year of monetizing data
• ‘Sentiment engines’
The Business of Community, March 2009
So what?
The Business of Community, March 2009
So what?Classes of Business Benefit
Intangible Tangible
Source of contribution
Customer Loyalty & Brand
Awareness
Direct Revenue
Lower Operational Expense
Comment
Customer/Member profile √ √
Customer intelligence & extending market reach at low cost
Advocacy/pass through revenue √ √ √
Sales channel for complimentary products/services
Group Discounts √ √ Special offers to subscribers
Affiliation √ √ Viral sales
Member-Member commerce √ √
Packaging brand products to serve customer's own network
Offline events √ √ Forms deeper relationships
Competitive research √ √ √Access to opinions using polls/surveys
Product development & feedback √ √ √
Lower service development costs
Peer-to-peer self-help √ √ √ Reduces contact centre traffic
Membership √ √ √
Friends invitations. Member get member
The Business of Community, March 2009
How?> The implications of the end
user supplying itself are far reaching
> Small pieces loosely joined> Simple, lightweight tools
(‘doing better with less’)> Mashups, widgets> Web 1.0 vs Web 2.0
• 1.0 Centralised. People come to you (pull)
• 2.0 De-centralised. Go to where people are (push)
> Imaginative use of ‘Cloud Web services’
> Smarter organisation• Re-use of excess capacity• ‘Bioteams’
> Swarm behaviour• From Intranets to social
networks
The Business of Community, March 2009
Network statistics
> “People have figured out they get far better information and support from one another than the companies that are supposed to serve them”.
The Business of Community, March 2009
Discovery of unmet needs
Discuss, Q&A
• L’Oreal – Write a priceless ad• McDonald’s Global Casting • Nokia – Share your idea• Muji “make and send us an object for a place in your home we don’t have a product for”