the internet ecosystem? - what should i do and where is it heading ... (paper version)


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DDMCA | Keizersgracht 330-b | 1016 EZ Amsterdam | The Netherlands | W: ddmca.com | E: [email protected] !

The internet ecosystem?What should I do and where is it heading

(by Denis Doeland, 28 February 2013)

Introduction

Wikipedia describes an ecosystem as follows: An ecosystem is formed by the interaction

between all organisms and the abiotic environment within a certain geographical or

otherwise defined entity. The term ecosystem was introduced by English botanist Arthur

Tansley in 1935 and developed by American ecologist Eugene Odum.

Examples of ecosystems are a forest, but also the whole earth. Some even consider a pot

plant to be an ecosystem. Parts of an ecosystem are individual plants, animals and micro-

organisms and the complex which they form, for example in the form of living communities

and populations. People often see ecosystems as dynamic and functional entities.

The Internet is actually an ecosystem. It is an ecosystem which consists of a community

which is connected online, formed by end users, developers, suppliers and distributors.

They use each others strong points, complement and strengthen each other to create

added value together for other end users (for example: clients or fans).

As a company, organisation or brand you should be a part of the entire internet ecosystem.Even more so when you wish to have a better chance of being embraced by the end user or

the (future) fan or client. In addition, as a company, organisation or brand you must realise

that you exist thanks to content (intellectual property) and that you offer functionality and

are data. The content is distributed via the various user interfaces of the web, the social

channels, the (mobile) apps and the open APIs or interfaces where developers can develop

their functionalities themselves.

It is time to determine a strategy. Make choices concerning which groups you wish to cater

for, how and with whom you want to cooperate and select the ecosystems you wish to be

present in. Develop suitable products, (new) online services and seduction techniques. This

requires the necessary creativity. Allow yourself to be inspired by natures inventiveness: the


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flowers and the bees, the frog and the fly. Create an (online) business model where you can

take the lead as compared to your competition or other market parties, the organisation is

stimulated to innovate and enables you to reach (new) clients and hold on to them.

A very important difference is that the parties who have a good strategy, which is based on

a place within the ecosystem, are the ones who can let the processes seamlessly connectwith each other and benefit from this. The parties, which ensure that the fan or client has the

optimal experience, which is connected to each channel, will benefit optimally from this.

This requires a fundamentally different attitude towards the various parties in the ecosystem,

not only to the social networks, but also to the individuals. Where previously the emphasis

lay on competing and protecting within the collaborations, the emphasis is now on working

together. On listening to, participating in and anticipating on the data which is created in so-

called conversations and interactions. This data must be stored, analysed and related to

the data which you (possibly) already have.

A short overview of the content of this document where an insight is given and trends are

signalled on the aspects below. A number of trends are indicated with each of theseaspects.

Vision

Strategy

Execution

Value


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Vision

It is clear that Social Media or individual social channels such as Facebook, Twitter,

YouTube etc. are still approached in an isolated way. Silo thinking is in our blood. It is

integrated in our way of doing business and it even shows in the various, individual,

business functions Social Media can affect significantly. Social Media channels are often

approached separately, without any integration with the total marketing approach. Let alonein combination with other channels.

Companies, organisations or brands rarely ask the question how the structure and

efficiency throughout the entire organisation and its network can be improved by Social

Media. People are blinded by the old push principle, literally sending (communication)

messages.

Customer Service, Human Resource, Research & Development: aforementioned aspects are

rarely addressed. These are the areas where the mechanics, which take place on the social

channels, can often be the most efficient. Managers often dismiss Social Media. The failure

to use Business Intelligence, which is created on a daily basis thanks to Social Media, is agood example of this.

The implementation of Social Media in the current business model, or Social Business, is

not simply hype: the adoption of social channels and the far-reaching impact of it on all

company processes are only limited by the questions which people ask and the level in

which people can, or dare, to operate outside the limitations of the silos. Companies,

organisations or brands must couple the various own domains and social channels with

each other and provide the end user with an optimal user experience.

Trend

In the past decades, marketers overestimated the value of entirely measurable factors with

regards to the emotional factors. This resulted in the marketer losing the emotional

connection with their fan or client. A company, organisation or brand that does not create a

positive connection with its clients becomes exchangeable for any other company,

organisation or brand that does.

The comprehensive internet landscape has changed and the rules of the game change in

accordance. Fans and clients would rather listen to each other than to the communication

messages from companies, organisations or brands. A logical consequence, because whom

should you listen to with such a wealth of choice for providers where the products and

services are barely distinguishable. Fans and clients integrate the new rules into their daily

lives while companies, organisations or brands still stubbornly steer clear from it. It is clearthat the fan or client has become more assertive and powerful.

In the future, fans and clients will need a Likeable company, organisation or brand. Fans

and clients wish to be seen and heard. Dialogue is the key word. The fan, the client wants to

be treated as a human again. Establishing an actual connection and speaking with the fan

or client is what it is about.


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Strategy

We are currently living in a digital feudal economy where social platforms such as Facebook,

Google, Twitter etc give unlimited (free) access to our data and behaviour by way of the

Social Identitywhich is created there. The Single Sign-On button is the holy grail which

leads to connection on the basis of demography and relevance. It is the button which gives

access to the data of the profile itself, the references but also the purchases andpromotions of a fan or related client. The strategy must therefore be coordinated with this.

Standard data from the Social Media channels, such as those which exist at a number of

companies, do not offer direct value. Only after meaningful correlations, analytics and

setting up (additional) earning models on the validated fan, tweets and like data

(in)direct cash streams can be generated. The value of the company, the organisation or the

brand will increase in the form of potential goodwill. The strategy must be coordinated with

the collection of data from all possible sources.

Trend

Single Sign-On (in short SSO) allows end users to log in once and subsequently automatic

access is granted to all applications and resources in the ecosystem of a company,

organisation or brand. Fans or clients log in with their favourite Social Identity (for example:

via Facebook or Twitter) or their user name /password. The SSO module collects this data

to then enter it automatically, or to add to additional data if requested, when a fan or client

wants to open an application.

When the end user has logged in, the SSO module takes over the login process and allows

an automatic login in all applications and systems which the fan or client has access to.

Therefore the fan or client does not have to login each time. The application is immediately

started if they click on an icon of an application. The login screen is removed and no longerdisplayed.

The advantages of Single Sign-On are:

Straight-forward for the end user.

The end user is more productive.

The registration procedure is tightened.

Data from Social Identities is saved in own database.


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Execution

It is clear that the internet is an ecosystem and that we have the urge to think in silos. What

should we do now? The silos need to be literally broken down and an internal and external

ecosystem should be created. The first step is to determine which domains, networks and

equipment you wish to serve within the own ecosystem. Subsequently determine which

ecosystems you wish to connect with. The image below displays an ecosystem.

The second step consists of connecting all data sources from these domains and networks.By way of the Single Sign-On button, which is described in the previous paragraph, you

can extract the data from all networks. You should integrate the button in the own domain,

all applications which you construct and by way of landing pages or an application which

you integrate in the various Social Media channels. A platform which supports such

functionality is Social Brand Builder, for example.

Trends

A number of trends on the execution side have recently become clearly visible.

SoLoMo (Social Location Mobile)

A term that we increasingly see is SoLoMo, an abbreviation for social, local and mobile.

These three components concern the behaviour of a fan or client.

A large group of fans also make use of Social Media during a visit to an event. In this way a

large amount of the event visitors share photos with family and friends during their visit.

People use messages on Social Media to keep their family and friends up to date with their

adventures via their mobile (smart) phone from the location where they are that moment.

Among other things, smart phones are used to check in, to find out if friends are present

and to look at reviews from other fans.


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Customer Care (Social Care)

Social Media has become a crucial part of the fan or client contact. A company,

organisation of brand which serves large groups of fans or clients, has no other choice other

than to use these channels to react towards fans or clients. Some fans or clients would not

make contact with the company, organisation or brand without Social Media. People usedto do this via the mail, then came the advent of call-centres, and nowadays fans or clients

use the various new online platforms.

Social Media channels are used for contact with fans or clients. It is obvious that service

should get the most important role. Therefore it is important that the marketers are aware of

how the staff members of the company, organisation or brand can increase the brand value.

They are often the first and only contact point between the fan or client, and the company.

The loyalty subsequently increases.

Fans or clients who make contact with a company, organisation or brand via Social Media

are generally more loyal than other fans or clients, according to a case from Social Brand

Builder. These groups of fans or clients will operate as long-term ambassadors and canpromote the company, organisation or brand in their network. A condition is that they are

effectively, quickly and professionally assisted with queries and comments which they

communicate to the organisation via Social Media.

Live

It is clear that the internet is a real time phenomenon. Where previously one would have to

wait for a reaction or content, this now occurs in real time. Companies, organisations and

brands must react to this trend. Photos, videos, audio and text can be curated and

published in the own domain, or via the own applications or the own social channels. In this

way you demonstrate that the fan or client is involved with the company, brand ororganisation.

The content, which is created by fans or clients, can be saved, followed and the data of it

can be analysed. This in turn gives many opportunities for subsequent actions.

Connection

Single Sign-On allows fans or clients to log in a single time, where subsequently automatic

access will be granted to all applications and resources in the ecosystem of a company,

organisation or brand. Fans or clients log in with their favourite Social Identity (for example:

via Facebook or Twitter) or their user name/password. Now you have a connection with afan or client.


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Value

Inventory, hardware, stock and debtors. These are less and less important in the valuation

of a company. The approach and the behaviour of banks, valuators and investors endorse

this. But what does increase the value of your company? While historical value will continue

to play a role in determining the value, it primarily concerns future cash flow.

By making advanced and careful use of the own domain and Social Media networks new

and digital marketing profiles can be created from this data. So it can be determined that

the value of companies, organisations or brands which carefully organize and ensure this

increases.

Value creation

Creating value at IE by using Internet and Social Media concerns being able to, in the basis,

establishing, distributing, maintaining and optimising current and new digital relations on the

various internet platforms where (in)directly and in a demonstrable way additional and future

net cash flows can be generated (ed. The Voice A supplementary earning model (Denis Doeland/Pimvan Berkel)

The words establishing, distributing, maintaining and optimisingrefer to the costs of work

and means. In addition it concerns the digital relationson multiple platforms. Digital is a

key element with this, in the view of the fact that this makes it clear that it does not concern

a whole stack of addresses or other traditional marketing activities. Naturally there is

possibly still a little overlap between the digital platforms and so-called churn rates, just as

with off-line marketing. Twitter users can be the same as a Facebook fan and vice versa.

The rise of Social Media gives companies, organisations and brands an extra possibility to

reach and follow their current fans but also future fans and clients. A direct relationship can

be made, which was not the case with the traditional off-line marketing.


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The step which companies, organisations and brands must make is to collect and analyse

the data to subsequently implement a follow-up strategy or entirely new (marketing) strategy,

with the objective of increasing future revenue.

Trends

There is a huge wealth of data, also called Big Data. Is it a hype? Can you as a company,

organisation or brand wait for the (strategic) deployment of data or it is actually already

reality? According to McKinsey, who have published a scientific publication, the effective

use of data and analytics increases productivity, profit and market value of companies by 5

or 6 per cent. In some industries the strategic deployment of data analysis can even make

the difference between profit and loss.

Big Data Storage and Big Data Analytics are two current trends. These two trends are

inextricably linked to each other: not the level, but the way in which people want to make

use of data determines whether data is Big or not. The requirements which are connected

to Big Data Storage come from the analyses which people wish to carry out on the data.

Big Data Analytics concerns data which is:

Rapidly available

Comes from multiple sources.

Is supplemented with other (unstructured) data.

One can take things even a step further. Consider internal and external data. These should

be linked to each other. You can call on this data in real-time to optimally communicate with

fans and clients and make tailor-made offers. Big Data is therefore not something for the

future, its a reality now.


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About DDMCA

DDMCA assists brands, companies and organisations to apply internet and social business to meet the new

expectations of fans, clients, staff members and other involved parties. DDMCA helps give their voice a place in

business and in the internal organisation.

In the combination of development of knowledge, sharing of knowledge and consultancy in the area of

deployment of internet from the organisation and social business sees DDMCA taking its place as a leader in its

field. DDMCA offers its services in the form of, among other things, consultancy, analysis, lectures, valuation,

training, social media monitoring and internet monitoring.

Clients of DDMCA are both major organisations as well as smaller ones who are aware that communication and

conversation will continue to play an even greater role in and outside the organisation. DDMCA clients include

Marlies Dekkers, 22tracks, JoinFeedBack, Dance Therapy, Armada Music, Extended Music, Eurosport, B2S, 2-

Dutch Agency, 8ballMusic, Whoopaa, HRMatches, Werk en IK, Muziek Centrum Nederland, Herome, Amsterdam

Dance Event, JunkieXL.

A good internet strategy begins with a good Action Plan. DDMCA is specialised in making of Action Plans.

Questions? Please do not hesitate to contact us.

Contact: DDMCA - Keizersgracht 330b - 1016 EZ Amsterdam - T: +31 (0)20 4272880 - M:

[email protected]

Special thanks to Paul Sparks of the Bright Spark Media Group for helping out with the translation.

the internet ecosystem? - what should i do and where is it heading ... (paper version)

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