value creation through social media
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Value creation through Social Media
(On twitter #AshridgeMBA)
Atal Malviya
ODiMaX Ltd.
Ashridge Business School, 06/06/2011
∗ Understanding Social Media
∗ Importance of social media
∗ Stakeholders in SM
∗ Value Creation through SM
∗ Financial
∗ Non financial
∗ Q & A
In this session
∗ How many of you have FB account?
∗ How many of you have Twitter account?
∗ How many of you have LinkedIn account?
How Many?
∗ Web 1.0 and Web 2.0
∗ User generated content
∗ Engagement
Social Media
" People might be more interested over a dead squirrel in their front yard than they are over thousands of people in Africa dying.” – Mark Zuckerberg
Importance of SM
∗ 95 million people tweet everyday
∗ 7 billion pieces of content are shared per week on FB
∗ YouTube is the second largest search engine on the web
∗ Facebook usage is up 40% since last year
∗ Twitter is adding 300,000 users a day…
Importance of SM
∗ Is it another Dotcom bubble?
∗ How Social Media can help businesses?
∗ How Social Media can harm businesses?
∗ Is it another Dotcom bubble?
Some Qs -
Value Creation
SM Stakeholders
∗ Shareholders
∗ Customers/ Consumers
∗ Supplier
∗ Employees
∗ Other businesses
Value for Key Stakeholders
∗ How these are creating value through SM?
∗ Coca - cola
∗ Ashridge
∗ Consumer
Some Qs
∗ Radian6 – Financial
∗ Green Peace - Environmental
∗ HBR – Customer engagement
∗ Kenneth Cole – Value destroyed
∗ Manchester United – Corporate Governance
∗ Heathrow – Customer service
Some examples
∗ SM Enablers (Facebook, Twitter, LinkedIn etc.)
∗ SM Users (Coke, EasyJet, Delta Airline, GAP etc.)
∗ SM Mediators (Radian 6, ODiMaX, FarmVille etc.)
Key classification of companies on SM
∗ How to value social media companies?
∗ Standard valuation methods are not right at this stage
∗ Innovation in Valuation
∗ Reverse engineer the existing businesses
∗ Derive per user value
∗ Final valuation depends on user base
Is FB $80 billion?
Is FB $80 billion?
∗ Customers profiling through followership
∗ Customers insight through engagement
∗ Customer advocates
Value through Consumers
∗ Real time free flow of information
∗ Financial value – Groupon
∗ Sharing of resources – DropBox
∗ Video
Value to Consumers
∗ You can reach me on –
∗ @Twitter – AtalMalviya
odimax
∗ @FB – facebook.com/AtalMalviya
∗ @Email – [email protected]@odimax.com
∗ @Phone – Please email ☺.
Thanks