Transcript of "Business Ecosystems - KSOM Bhubaneshwar"
Perfect Image Management
The Science of
The Science of Image Management
Business Ecosystems: Driving New
Paradigms in Marketing
Value creation is the name of the Game today
Moving beyond price: experience is a key in segments like food chain, entertainment and travel. Value
creation could command a significant price premium
“Marketing is not the art of finding clever ways to dispose of what you make. It is the art of creating
genuine customer value.” -- Philip Kotler
“Companies that solely focus on competition will ultimately die. Those that focus on value creation will
thrive.” -- Edward De Bono
•Connectivity, digitization of businesses and all powerful information exchange through social networks
are challenging the traditional business models. Approach to value creation is changing rapidly in
today’s world of business.
•It is important for managers, to be deeply sensitive to the technology driven ecosystems as well as
manage how the physical environment is changing around them as a result of it….
10 Ways Social Media Technologies are Adding Value and Productivity
The mass market is dead, replaced by the mass of niches
Customization is the key -- the needs of the end-customers vary, requiring nuanced targeting and micro
“You want to dig your well where you have the best chance of finding water with the least amount of
digging.” -- Theodore Levitt
“Don’t find customers for your products, find products for your customers.” -- Seth Godin
“What's measured improves” -- Peter F. Drucker
•“The mass market is dead, replaced by the mass of niches” – The future of the Businesses could be
about Selling in a wide variety of niches….many small products that wouldn‘t sell on their own. This
typical Long Tail Phenomenon is now seen happening in retail and broadcast especially the
The Long Tail : Why the Future of Business Is Selling Less of More
Today ….Markets are conversations
Popular bloggers and fan pages play an important role in influencing opinions. Social media presence
can also help in generating positive buzz, though risks of misuse also exist
dead, and social media holds the smoking gun.” -- Pete Cashmore
“The best way to persuade people is with your ears – by listening to them.” -- Dean Rusk, Former U.S.
Secretary of State
“Everything we hear is an opinion, not a fact. Everything we see is a perspective, not the truth.” -- Marcus
•Today’s marketing is about managing the Talk around you. Altering the behavior of the Buzz in your favor
•Remember, conversations too have their socio-cultural, political and economic context. In the digital age,
corporations no longer deal with green environmental activism or the red flag bearers alone. Conversations
around Communities are fast becoming the agenda setters. If there is a Gulag, it will find its way to Google
The Cluetrain Manifesto
Powerful customer communities can build
around Feedbacks and conversations
Customer retention is much more important now than before. Social media provides dissatisfied
customer enough avenues to damage a brand’s image
“If you do build a great experience, customers tell each other about that. Word of mouth is very
powerful.” -- Jeff Bezos, CEO Amazon.com
“Customer satisfaction is worthless. Customer loyalty is priceless.” -- Jeffrey Gitomer
•Customers are in total control today. Their opinions and views are no longer restricted by borders
anymore. The web enables a worldwide reach
•Customer communities both for and against you can form rapidly – your image depends on how well
you are connected with them
Building Customer Communities Is the Key to Creating Value
A Sampling of Community Scripts
The Community phenomenon also impacts employees
Organizational culture can have positive impact on brand image. Tatas in India have highlighted their
work ethic to position themselves as a ‘trustworthy’ brand
“Imagine a world where what you say syncs up, not sinks down.” -- Stan Slap
“A culture is made -- or destroyed -- by its articulate voices.” -- Ayn Rand
•So the traditional HR structures and strictures are set to change. Conversations around employee
Communities are fast becoming the agenda setters Even a loner with a laptop can seriously challenge
status quo. If there is a Gulag, it will find its way to/on Google!
HR and Marketing Converge: Learn an Integrated Marketing Strategy to Create Brand Ambassadors,
Support the Employer Brand and Improve Community Relations
Customer collaboration is important today to sell
Internet, especially social media, has virtually nullified information symmetry between brand and
customer. Customers are better informed about substitutes and competitor products, Customer
feedback could be instrumental in developing better products.
“New marketing is about the relationships, not the medium.” -- Ben Grossman
“Customers will want to talk to you if they believe you can solve their problems.” -- Jeffrey Gitomer
•No longer is it possible to command premium or profit by controlling access to goods, or information. In
this day of ecommerce be sure that the customer will get access to the cheaper and the better
•Collaborating with customers is key today. Let the market tell you what they want from you
In Social Media, Collaboration is King
The Power of Personalization: Customer Collaboration and Virtual Communities
Hence, platform based networks are
critical for marketing success
“Customers pay only for what is of use to them and gives them value. Nothing else constitutes
quality.”-- Peter Drucker
•The most successful companies today are large networks built on robust technology platforms.
How To Become A Billion Dollar Startup: AirBNB, Youtube and Platform Thinking
What Would Google Do?
Virtual presence is now a compelling reality
Traditional push-based mass marketing has given way to customized ads targeted at a particular
customer. This has been made possible through technology.
“Any sufficiently advanced technology is indistinguishable from magic.” -- Arthur C. Clarke
•Technology is driving this change in the business ecosystem and changing the traditional concepts of
marketing. As Jeff Jarvis says “if you are not searchable, you will NOT be found”
The Importance of Your Company's Virtual Presence
How to Turn Customers into Brand Ambassadors
No Bullshit Social Media : The All-business, No-hype guide to Social Media Marketing
So your customers find you more than you find them
From push-based the emphasis has shifted to pull-based marketing. Apple, for example, had just one
ad. Its demand is primarily driven through product design and customer reviews.
“A brand is no longer what we tell the consumer it is – it is what consumers tell each other it is.” – Scott
“The purpose of a business is to create a customer who creates customers.” -- Shiv Singh, author
•Now most often your customers find you when they want to work with you. And then they become
your advertising agency if they are satisfied.
Top 5 Inbound Marketing Campaigns 2013
The Top 7 Online Marketing Trends That Will Dominate 2014
The LEGO - Apple - Nordstrom Expert Path To Customer Loyalty: Consulting How Great Brands Build
Customer Service Engagement
New age marketing is all about connecting people
through connecting devices
Finding new ways to engage with customers is a Critical Success Factor. Higher engagement with
customer is key to customer retention
“Hyperlinks are the 21st century equivalent of the name-dropper.” -- Chris Brogan & Julian Smith, authors
of Trust Agents
•So many companies are finding newer ways of connecting with the customers through enabling
technologies that has bred a brand new ecosystem
•Platforms such as Apple, Google, Amazon, Facebook, and Microsoft are now in the forefront of a
revolution in building ecosystems that help companies to connect with their customer communities,
employees, suppliers, and partners.
Ecosystem Innovation: New Age Business Models
In this digital era, Transparent and Network based ecosystems
for marketing is all powerful
User feedback and customer reviews are essential determinants of choice.
“Your most unhappy customers are your greatest source of learning.” -- Bill Gates
•Taking the transparency point further, Apple, Groupon, and Amazon are examples of such business
ecosystems that are now connecting their customers to content creators and other partners. This
phenomenon is not an exception but a rule that cuts across sectors
•Such ecosystems are emerging as a critical asset in the success of business models in industries
ranging from healthcare and education to entertainment services. Ignoring this trend can seriously
impact business success
The New Age of Innovation::Mobilising Global Networks to Unlock Co-Created Value in Your
And … Free is often a business model!
Customer-brand engagement is not restricted to price-value model. The benefits go beyond the
Facebook which has remained a free platform for sharing information has 100 petabytes of user
information -- a gold mine for digital marketing and advertising
“Do what you do so well that they will want to see it again and bring their friends.” -- Walt Disney
•Amazon recently announced that the sales of their digital books have already surpassed traditional printed
books. The impact of this change now expands beyond book retailing to the publishing industry
•In the telecom industry, this impact is now even more widespread. The VAS is where the value lies. The
enterprise phones and their enabling platforms such as Apple, Android or even the BBM ecosystems through
smart phones have rendered traditional voice telephony almost free!
•Telecom companies are now forced to reinvent their business models by forging partnerships with device
makers and content creators. Entertainment, games, music and streaming content have redefined the way
telecom services used to be even 5 years ago
Free! Why $0.00 Is the Future of Business
IT is the clear enabler and lends the leadership edge
Technology now provides lead assessing synergies across segments. Brands are now present in
more than one segment. Google, for example, started as a search engine, but now has a browser,
social network and operating system
•Finally, managers need to embrace information technology to innovate on ways of expanding and
even maintaining their current market shares. These new platforms and technologies have given
birth to an interconnected ecosystem that has virtually changed the way traditional businesses were
The Hidden Benefits of Social Media Marketing: Why Your Strategy May Be Working Better Than You
When the urban and rural divide is
more about consumer attitudes
Certain markets in India are characterized by long supply chains involving producers in rural areas,
wholesalers, dealers and retailers and eventual customers in urban areas.
•Urbanization in India maybe taking time to penetrate from a development index perspective but
growing aspirations and guilt free consumerism is now breeding a new cusp between the semi and
•We haven’t seen a rising demand for cheeses yet but chocolates are surely catching up AND the
marketers are cashing in on that….Check the Kumbh Mela merchandise and you will see technology
products making steady inroads
Chocolate Tempts India's Sweet Tooth
Where angels dare - The funding formulae !
Profitability is not the sole criterion for funding decisions. Growth, which factors in variables like market size,
customer profile, social relevance etc has made funding decisions go beyond the traditional revenues-cost
The character of Funding is also changing. From Microfinance to Bank loans, it’s now time for ideas
that get crowd-sourced capitals. Note that even funds seek to market themselves to their niches…the
private equities, the venture caps are the new angels who are looking to incubate ideas and
entrepreneurs across sectors
Which are the best ‘crowdfunding’ websites?
How Can Entrepreneurs Motivate Crowdsourcing Participants?
When new markets are about new ideas!
Novel ways to engage are a key to understanding and meeting these needs
“The nature of the Internet and the importance of net neutrality is that innovation can come from
everyone.” -- Al Franken
•Ideas are now driving markets as they are now waking up to newer ways of innovation where free
is also a business model. The skill lies in cleverly back linking your revenue models with freebies
that flirt with consumers while quietly getting them hooked onto a product or a service
Dropbox: The Inside Story Of Tech's Hottest Startup
When new technologies are key to market leadership
“If you look at the various strategies available for dealing with a new technology, sticking your head in
the sand is not the most plausible strategy.” -- Ralph Merkle
•Manufacturing is changing too. It is now rediscovering itself from the traditional to becoming the ‘newold’ Remember this is where the rubber hits the road, where real people make stuff that must reach to
real customers. But cutting edge technology such as 3D printing and Green engineering are rapidly
3D printing: the new, bottom-up industrial revolution
When you must train to be a sharp shooter
and a smart disrupter
•In the end – this business ecosystem is making marketers into learners, adapters and
•Training to be a part of this global change is now key to survival. This new age training is
increasingly focusing on learning around Designs, Devices and Disruption!
How to harness disruptive innovation as a modern marketer
For more reviews and your views, get in touch with Dilip at:
Office Address: Perfect Relations Pvt. Ltd.
S 27, Star City, Mahatta Towers
District Centre, Mayur Vihar, Phase I
Delhi - 110091
A particular slide catching your eye?
Clipping is a handy way to collect important slides you want to go back to later.