How social media is going to change the company? Anthony Okuogume, Yliopettaja Kauppa & Kulttuuri KTAMK 21.09.09 Brändistä kaveri? –Mopaali- ja eLVa-hankkeiden aamiaisseminaari 16.9.09. .

How social media will change the company? 21.09.09

Honestly, the Effect will be Tsunamic! 21.09.09

Why Tsunamic Effect? One Example; The future workers, owners and customers of ’companies’ will be made up of people who have grown up on social media! 21.09.09

One Example;

The future workers, owners and customers of ’companies’ will be made up of people who have grown up on social media!

Take a Look at these Figures! According to a research ( The Pew Internet & American Life Project ,2007) ; Some 93% of teens use the internet, and more of them than ever are treating it as a venue for social interaction – a place where they can share creations, tell stories, and interact with others. Their ”only private space” in the world. Social media through online social networks makes it possible for people to connect and network on an imaginable scale! 55% of online teens ages 12-17 have created a profile on a social networking sites such as Facebook or MySpace. 21.09.09

According to a research ( The Pew Internet & American Life Project ,2007) ;

Some 93% of teens use the internet, and more of them than ever are treating it as a venue for social interaction – a place where they can share creations, tell stories, and interact with others. Their ”only private space” in the world.

Social media through online social networks makes it possible for people to connect and network on an imaginable scale!

55% of online teens ages 12-17 have created a profile on a social networking sites such as Facebook or MySpace.

Growing up on Social Media! Young people today are the authors of the new digital revolution that is changing firms and society in general E.g., Napster, was created by a teenager. Although it no longer exists, but its legacy; free online file sharing still lives on and continues to transform the media sector today! Facebook, Google and many more are no exception! Young people dominates online social networks and are socialising and collaborating on everything from: Evaluating companies and their products to governments and their actions To self-organising and have become an online force (see, Tapscott & Williams, 2006). E.g., the election of Obama as the US President 21.09.09

Young people today are the authors of the new digital revolution that is changing firms and society in general

E.g., Napster, was created by a teenager.

Although it no longer exists, but its legacy; free online file sharing still lives on and continues to transform the media sector today!

Facebook, Google and many more are no exception!

Young people dominates online social networks and are socialising and collaborating on everything from:

Evaluating companies and their products to governments and their actions

To self-organising and have become an online force (see, Tapscott & Williams, 2006).

E.g., the election of Obama as the US President

A New Economic Culture? Is the ‘economy of social production’ and the backbone of the new ‘networked information economy’ (Yochai Benkler ) According to Don Tapscott & Anthony Williams, (2007) it is based on self-organized collaborations; It will ”change the way we invent, build, market, and distribute products and services ” ” Its greatest impact today is in the production of information goods—and its initial effects are most visible in the production of software, media, entertainment, and culture” 21.09.09

Is the ‘economy of social production’ and the backbone of the new ‘networked information economy’ (Yochai Benkler )

According to Don Tapscott & Anthony Williams, (2007) it is based on self-organized collaborations;

It will ”change the way we invent, build, market, and distribute products and services ”

” Its greatest impact today is in the production of information goods—and its initial effects are most visible in the production of software, media, entertainment, and culture”

Online Network Communities: The New Market place? 21.09.09 Free at Last!

Social Media: The Holy Grail of marketing communication Social media will allow firms to connect and communicate with customers better than before It has value beyond traditional marketing communication. Such as the power of the word of mouth! Firms will come to know their customers better and with co-creation, inputs of customers knowledge and satisfaction can be achieved at a greater scale 21.09.09

Social media will allow firms to connect and communicate with customers better than before

It has value beyond traditional marketing communication. Such as the power of the word of mouth!

Firms will come to know their customers better and with co-creation, inputs of customers knowledge and satisfaction can be achieved at a greater scale

Social Media: The Holy Grail of marketing communication For example, on millions of blogs and social networks sites like Twitter and YouTube, people talk about products or service experiences, preferences, and what matters to them most. All a business can do, is to listen, understand, and prosper. They can use the insights gained to uncover, generate or proof new service concepts 21.09.09

For example, on millions of blogs and social networks sites like Twitter and YouTube, people talk about products or service experiences, preferences, and what matters to them most.

All a business can do, is to listen, understand, and prosper.

They can use the insights gained to uncover, generate or proof new service concepts

Freedom Atlast! Companies no longer have monopoly of information and are now increasingly have to deal with a very informed user groups or buyers. In prosuming, companies can no longer act autonomously in developing products & production proceses (Prahalad & Ramaswamy, 2004) Now, users seek to exercise influence over every part of the business system (Prahalad & Ramaswamy, 2004) E.g., the sale of Manchester City FC and Facebook’s redesign. On online social networks, people organise through preferences, causes or by personal relationships Online social network is a ’wedia’ (EGO, 2008) and it is not dominated either by the producer or the prosumer! 21.09.09

Companies no longer have monopoly of information and are now increasingly have to deal with a very informed user groups or buyers.

In prosuming, companies can no longer act autonomously in developing products & production proceses (Prahalad & Ramaswamy, 2004)

Now, users seek to exercise influence over every part of the business system (Prahalad & Ramaswamy, 2004)

E.g., the sale of Manchester City FC and Facebook’s redesign.

On online social networks, people organise through preferences, causes or by personal relationships

Online social network is a ’wedia’ (EGO, 2008) and it is not dominated either by the producer or the prosumer!

21.09.09 Look!

FOUR Ps Product Price Promotion place The new situation From product to co-produced value and shared From price to shared investments From promotion to more interactive communication Online social networks 21.09.09

FOUR Ps

Product

Price

Promotion

place

The new situation

From product to co-produced value and shared

From price to shared investments

From promotion to more interactive communication

Online social networks

Factors that will challenge our views of business organizations and their operating models : Social production: mass collaboration Crowd sourcing (eBay innovation?) Prosumers ‘ New Alexandrians’ ** (E.g., Google books): Culture of sharing and open source Wiki Workplace Self-motivating ‘knowledge nomads’ Hierarchy as we know it will disappear No more tightly scripted and controlled structures Leadership will be earned not appointed, What you can do will become the only basis for participation Openness and sharing - the underling organizational culture. 21.09.09 **( Tapscott & Williams, 2007)

Social production: mass collaboration

Crowd sourcing (eBay innovation?)

Prosumers

‘ New Alexandrians’ ** (E.g., Google books): Culture of sharing and open source

Wiki Workplace

Self-motivating ‘knowledge nomads’

Hierarchy as we know it will disappear

No more tightly scripted and controlled structures

Leadership will be earned not appointed,

What you can do will become the only basis for participation

Openness and sharing - the underling organizational culture.

Making Money With “Free” Offering open and free products allows a firm to gain rapid market share, turn out profit and competitive advantage. Ways money can be earned from ‘free’ Advertising: Purely ad-supported contents Ad supported free contents, and contents without ads for a fee Premium content: Free basic content, with a fee for extra features links to online shops, donation buttons on the site, or Google’s adsense and etc. 21.09.09

Offering open and free products allows a firm to gain rapid market share, turn out profit and competitive advantage.

Ways money can be earned from ‘free’

Advertising:

Purely ad-supported contents

Ad supported free contents, and contents without ads for a fee

Premium content:

Free basic content, with a fee for extra features

links to online shops, donation buttons on the site, or Google’s adsense and etc.

21.09.09 How to Make Money - May Be A Fortune - on Twitter “ The eligibility criteria "Money Making : 1.Your Twitter account must be at least 4 months old. 2.You should have at least 200 followers However, actually making money using your tweets need some strategic thinking, in terms of content and the quality of your followers; since the pay out would be directly proportional to individual tweeter's passion and expertise, and the history of link clicking by the followers “ Source:http://www.abhijitkar.com/life/2009/09/how-to-make-money-on-twitter.html

Crowd sourcing Social media and the power of the masses are already being utilised in several services. In crowd-sourcing. Users can be used for creating content, and product development and design eBay innovation The role of end users for successful delivery of innovation - “Prosumer” 21.09.09

Social media and the power of the masses are already being utilised in several services.

In crowd-sourcing. Users can be used for creating content, and product development and design

eBay innovation

The role of end users for successful delivery of innovation - “Prosumer”

Uusi kenkä- ja laukkusuunnittelukilpailu ! 21.09.09 Suomen Messut kutsuu tuoreet kenkä- ja laukkusuunnittelijat sekä alan opiskelijat uuteen kenkä- ja laukkusuunnittelukilpailuun. Kilpailu tuo esiin uusia ideoita ja mielenkiintoisia ratkaisuja kenkien ja laukkujen designiin, kannustaa alan suunnittelijoita ja tukee suomalaisen kenkä- ja nahkateollisuuden kehitystä K-KENKA use crowd-sourcing to know what the customers wants and also, for new product design & development and for strengthening its presence in the marketplace & to ‘connect’ with customers!

Thank you ! 21.09.09