Social Media – Down the Rabbit Hole


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The slides I use for my guest lecture for the Sustainable Business Game organized by Delft Centre for Entrepreneurship (university of Delft

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  • Manpower - Social Networks vs. Management? Harness the Power of Social Media
  • Source:
  • There is a big shift in the way we think about personas on the web. Facebook has 300 million users and has recently dropped the initial focus on geographical location as foundation for your personal network.The story “from zero to hero” can become reality now based on a certain achievement or accomplishment. People become internet celebrities (e.gScoble, EsmeeDenters) or highly reputed in their community (e.g. clouderati, twitterati, followers on Twitter)However the big difference with before is that people can have very distinct personas depending on the situation. You can be a blonde babe in second life, in real life have a boring office job and lead a clan in world of warcraft or have hundred thousands of followers on Twitter. They key here is that there is a shift from focusing on the person to focus on the online persona(s).  your facebook or hyves profile is probably different than your linkedin profile. How do you put such a person in a box to target? The information you harvest from his participation in forums, might be actually irelevant to target him when he’s on facebook. Source: Gartner “The Business Impact of Social Computing on Marketing and 'Generation Virtual‘ and Gartner “How to Determine Levels of Engagement for Generation Virtual”
  • Dunbar's number is a theoretical cognitive limit to the number of people with whom one can maintain stable social relationships. These are relationships in which an individual knows who each person is, and how each person relates to every other person.[1] Proponents assert that numbers larger than this generally require more restricted rules, laws, and enforced norms to maintain a stable, cohesive group. No precise value has been proposed for Dunbar's number, but a commonly cited approximation is 150.
  • 3. Define ecosystem, current trends, and make predictions
  • last Earthquake in China was newsaround the globe in about 3 minutes. The quakebeforethat was admittedby China afterthreemonths. Social media enabled the people living in the area to bring the news to theirpeers. No governmentregulation.
  • These guys at Animoto did it using Amazon Web Services.
  • A couple of nights ago one of our customers—Animoto—saw a monster spike in traffic. Animoto has a product that helps you create web videos with music and graphics. They launched a Facebook app that lets people tell their friends when they’ve uploaded a video that includes that friend. You can see the spike in traffic that this new app caused. The X axis represents time elapsed and the Y axis represents the EC2 instances launched. Because they were using AWS, Animoto didn’t have to do a thing—AWS took care of everything.
  • So having this hugely distributed Internet where you users are scattered over multiple services and website. How do you look at the concept of identity? It’s a LOT to ask a user to create YET ANOTHER account on your site. However, if the user is willing to do so, it means that he/she is assuming that they will get something out of it. You have a couple of standards that are emerging for online identity management: OpenID, oAuth, etc. However, the real gems are in the social graph: i.e. access to your friends, to your photos, to your profile information, etc. You see many sites now using identity providers from e.g. Facebook as the authentication mechanism and store extra information locally on the server.Other examples:Watchmen movie, BlueRay version: connect via FB Connect with your friends and watch together and chatGirlsGuideTo: the only way to connect is FB Connect. Actually some kind of social network that leverages another social network
  • By giving away 100 Ford Fiestas to influential bloggers, 37% of Generation Y were aware of the Ford Fiesta before its launch in the United States.  Is it any wonder why 25% of Ford’s marketing spend has been shifted to digital/social media initiatives?  Ford is the only US auto company that didn’t take a government loan.
  • Case-mate "Recession Case" drives record sales. Andrew Knight, VP of e-commerce, readily admits he was skeptical when a 22 year old on the marketing staff brought him the idea of selling a cardboard case for the iPhone (see image, above). Appropriately dubbed the recession case, this would retail for 99 cents."My initial thought was that this was never going to work. I was thinking we might sell a couple hundred but most of them we would just have to give away. What I underestimated was the power of social media!" said Knight. What happened is that Knight had met blogger Larry Greenberg through Twitter and Greenberg posted an article about the Recession Case. The next day, almost every major tech news site picked up on the recession case: Gizmodo, Engadget, TechCrunch, CNET, Mashable, etc."We broke our daily site traffic record by five-times and we set an all time revenue record in the same day! Our Facebook & Twitter traffic skyrocketed as the story spread virally and people shared it with friends and family. In four days we had sold over 7,000 recession cases! It was truly unbelievable how fast it took off," said Knight.Case-mate also offered free personalized "Sharpie Script" on the recession case. This sparked a mini-phenomenon of its own, as people were buying cases for each other to simply send a personalized message (aka being social).Knight points out another added bonus of the social propagation, "Our search rankings have improved nicely. Our two most important terms are 'iPhone case' and 'iPhone cases.' We are currently #1 for both of them on Google!"
  • BlendTec increased its sales 5x by running the often humorous "Will it Blend" Videos on YouTube, blending everything from an iPhone to a sneaker.
  • Social Media – Down the Rabbit Hole

    1. 1. Social Media – Down the Rabbit Hole<br />Rick Mans - Social Media Evangelist<br />
    2. 2. The rabbit-hole went straight on like a tunnel for some way, and then dipped suddenly down, so suddenly that Alice had not a moment to think about stopping herself before she found herself falling down a very deep well.<br />Either the well was very deep, or she fell very slowly, for she had plenty of time as she went down to look about her and to wonder what was going to happen next. First, she tried to look down and make out what she was coming to, but it was too dark to see anything; then she looked at the sides of the well, and noticed that they were filled with cupboards and book-shelves; here and there she saw maps and pictures hung upon pegs. <br /><br />
    3. 3. Average 18% revenue growth during the crisis<br />
    4. 4. Background<br />In 2006 and 2007, mainstream media caught on to Web 2.0, driven in large part by major acquisitions in the space — News Corporation bought for $580 million in 2005, and Google bought YouTube for $1.65 billion in Google stock in late 2006. There are now almost daily articles in publications like The Wall Street Journal, The New York Times, and BusinessWeek touting the virtues of, marking the stumbling blocks for, and explaining how businesses and consumers alike should approach Web 2.0. Time Magazine even went so far as to declare “You” the Time “Person of the Year” for 2006 as a result of Web 2.0- enabled communities and collaborators.<br />Background<br />Hype<br />In 2005, the term Web 2.0 took off, giving a name to a nascent product category and a marketing lift to fledgling vendors. Dense or imprecise definitions of the phenomenon also gave rise to opportunistic startups looking to ride the wave of giddy exuberance. In all, Google now turns up more than 18 million hits for “Web 2.0;” the O’Reilly- and CMP-hosted Web 2.0 Summit and Web 2.0 Expo are among the most popular tech conferences today; and, in 2007, the World Economic Forum in Davos, Switzerland, held a series of panels on the impact of Web 2.0.<br />Business Adoption<br />Businesses have by no means sat on the sidelines these past four years. Large enterprises such as McDonald’s, Northwestern Mutual Life Insurance, Wells Fargo, and General Motors have all made heavy use of Web 2.0 technologies for customer and prospect outreach, as well as internal worker productivity and collaboration. The rest of the market is quickly catching up — 56% of North American and European enterprises consider Web 2.0 to be a priority in 2008, and adoption of major Web 2.0 technologies is expected to grow at a healthy clip as a result.<br />Media Coverage<br />
    5. 5. Hype Cycle for Social Software<br />
    6. 6. The worldalwayschanges<br />
    7. 7. Social tools a disruptive technology?<br />Managers were afraid Excel was to stimulate workers to make sports- or grocery lists during work hours<br />
    8. 8. The World Wide Web has evolved from content oriented to interaction oriented over the past few years<br />Features<br />Features<br />Features<br />Web 3.0<br />Intelligence oriented<br />Features<br />Web 2.0<br />Interaction oriented<br />The Web guided by Common Sense<br /><ul><li>In a future phase it could connect databases and thereby make intelligent choices for the user
    9. 9. Going from a Web of connected documents to a Web of connected data
    10. 10. Less of a catalog and more of a guide
    11. 11. Taking advantage of increasingly powerful computers that can quickly and completely scour the Web</li></ul>Web 1.0<br />Content oriented<br />The Web as a Platform<br /><ul><li>Nowadays in the second phase it can be used as a common development medium
    12. 12. Modularity and Open Source provides the basis for continuous improvement
    13. 13. Widespread participation through ease of use: people creating the content
    14. 14. Fast, interactive, and personalized
    15. 15. Network-based and community-centric</li></ul>The Web as a series of Static pages<br /><ul><li>The World Wide Web start-up phase focused on building the Web and making it accessible
    16. 16. Setup of protocols, standards and languages
    17. 17. Creation of Web sites, Web browsers and key portals by organizations
    18. 18. Internet access through Internet Service Providers </li></ul>Time<br />
    19. 19. I don't believe there's an atom of meaning in it.<br /><br />
    20. 20. Just don’t do versioning<br />
    21. 21. Technology and social factors have converged over the past few years to create a phenomenon called social computing<br />TECHNOLOGY<br /><ul><li>Cheap hardware and software reach the masses.
    22. 22. Simple devices that anyone can operate.</li></ul>SOCIAL CHANGE<br /><ul><li>Consumers look for cost and time efficient technologies, ways to make their voices heard.
    23. 23. Younger techno savvy generations pioneer the use of personal networks and viral communication.</li></ul>Source: Forrester (2006) – Social Computing.<br />
    24. 24. Another big switch<br />Read<br />Read / Write<br />Traditional media<br />Google search<br />Flickr<br />Mainly Broadband<br />Mainly narrow band<br />Alternative media<br />netvibes<br />Publishing is complex and limited to few traditional media and online merchants<br />Value is created by aggregating content (portals)<br />Wikipedia<br />Easy and free publication for all<br />Value is generated by tools allowing to publish easily<br />2004<br />2005<br />Broadband is (becoming) a right in Spain and Finland<br />
    25. 25. On a Global Scale, Internet Adoption Has Been Quite Significant<br />100 billion Number of clicks per day55 trillion Links on the Internet<br />5%Percentage of global electricity used for the Internet 90 trillion Number of emails sent in 2009 81% Percentage of emails that were spam <br />200 billionNumber of spam emails per day (assuming 81% are spam).1 million IM messages per second 8 terabytes Traffic per second 234 million Number of websites as of December 2009 47 millionWebsites added in 2009<br />
    26. 26. Social Media statistics<br />24 – Hours of video uploaded every minute onto YouTube<br />600k - new members on Facebook per day<br />900.000 -The number of blogs posts put up every day<br />700 million – The number of photos uploaded per day on Facebook<br />400 million – People on Facebook.<br />50% – Percentage of Facebook users that log in every day.<br />500,000 – The number of active Facebook applications.<br />84% – Percent of social network sites with more women than men.<br />1,73 billion – Internet users worldwide (September 2009).<br />18% – Increase in Internet users since the previous year.<br />126 million – The number of blogs on the Internet (as tracked by BlogPulse).<br />27.3 million – Number of tweets on Twitter per day (November, 2009)<br />57% – Percentage of Twitter’s user base located in the United States.<br />5 million – People following @britneyspears (Britney Spears, is Twitter’s most followed user).<br />
    27. 27. THE END <br />OF THE WEB AS WE KNOW IT<br /><br />
    28. 28.
    29. 29.
    30. 30.
    31. 31.
    32. 32.
    33. 33. Social Media is a set of communication and collaborationtechnologiesadoptedbypeople in theirdaily lives<br />Social networks: <br />Social structures of individuals who are bound together by common values, visions, ideas, friendships or interests<br />
    34. 34. Social Media is:<br />Humaninteraction in a virtualworld<br />
    35. 35. Who are YOU?' said the Caterpillar. This was not an encouraging opening for a conversation. Alice replied rather shyly, 'I -- I hardly know, sir, just at present -- at least I know who I was when I got up this morning, but I think I must have been changed several times since then.' <br /><br />
    36. 36. Yourgeneration<br />Generation Y, The Millenials, Digital Natives… the futuregenerations are infinatelyconnected, born and raised digital, and favourvaluessuch as connectedness / community, environmentalawareness, authenticity, freedom and friendshipabove all else. <br />What does thismeanfor a company<br />Cut and paste Generation: Today’syouthcreatetheirownauthenticstylebutcombining different styles.<br />Generation Search: S=searching and sharing, E=equilibrium, A=achieving, R=rules, C=commitment, H=harmony.<br />My Media Generation: Today’syouth have threebasicneeds: community, selfexpression and personalisation; the first 'global' generationThatcancustomizeeverything to itsown taste and wants. <br />GenerationEinstein: Todaysyouth is smarter, stronger and more social: the firstpositivegeneration! <br />
    37. 37. Generation V<br />Generation Virtual is used to describe a growing online culture in which people participate, often anonymously, through personas in a flat, virtual environment. Generation Virtual is not defined by age, gender, social demographics or geographic location. It is based on demonstrated accomplishments (merit) and an increasing preference for the use of digital media channels to discover information, build knowledge and share insights.<br />The Business Impact of Social Computing on Marketing and 'Generation Virtual‘ – <br />Gartner ID Number: G00158087 <br />
    38. 38. Or in a more visual wayMultiple Online Personas<br />gender<br />accomplishments<br />demonstrated achievement<br />use of <br />digital <br />media<br />age<br />social demographic<br />geography<br />“Twitterati”<br />“Clouderati”<br />
    39. 39. Netocracy<br />A portmanteau of internet and aristocracy, netocracy refers to a perceived global upper-class that bases its power on a technological advantage and networking skills, in comparison to what is portrayed as a bourgeoisie of a gradually diminishing importance.<br />
    40. 40. Consumerson the Web 2.0<br />
    41. 41.
    42. 42. But then, shall I never get any older than I am now? That'll be a comfort, one way -- never to be an old woman -- but then -- always to have lessons to learn! <br /><br />
    43. 43. Teensaren’tthat Internet savvy<br />
    44. 44.
    45. 45. Social media usage has gone mainstream attracting the older age groups as well<br />Social media use<br />18<br />24<br />30<br />18<br />24<br />30<br />40<br />50<br />18<br />24<br />30<br />40<br />50<br />65 years old<br />Distribution of Ages of Facebook Users, Worldwide, January 2005-09<br />In the US, 41% of Facebook users in March 2009 were between 25-44 years old<br />15%<br />10%<br />5%<br />5%<br />January 2005<br />January 2007<br />January 2009<br />
    46. 46. Facebook getting older, Twitter getting younger<br />Facebook is seeing a strong rise in activity from an older demographic…<br />…While Twitter appears to be exhibiting the opposing trend<br />Facebook Users by Age (%), US, Oct 2007 – July 2009<br />Unique Visitors by Age (%), US, July 2008 – July 2009<br />Source: Nielsen, Global Faces and Networked Places, March 2009; Comscore press releases<br />Note: Member Community implies Social Networking and Blogging websites<br />
    47. 47. "Take some more tea," the March Hare said to Alice, very earnestly.<br />"I've had nothing yet,“ Alice replied in an offended tone: "so I can't take more."<br />"You mean you can't take less," said the Hatter: "it's very easy to take more than nothing.”<br /><br />
    48. 48.
    49. 49. The LONG TAIL of music<br />
    50. 50. ,<br />The decline of traditional media<br />Primetime television viewership of major channels is decreasing<br />Newspaper circulation is also declining<br />US Daily and Sunday circulation (mn)<br />Relative Change in the Primetime Viewership of Television Channels, US<br />%<br />0<br />-10<br />-20<br />-30<br />-40<br />-50<br />2006-07<br />1995-96<br />2001-02<br />Total daily circulation<br />Total Sunday circulation<br />NBC<br />FOX<br />CBS<br />UPN<br />ABS<br />…causing marketers to move away from traditional media<br />The shift away from traditional media has diminished the effectiveness of traditional marketing efforts <br />% change in US ad revenue, 2007 to 2008 across media<br /><ul><li>90% of the people prefer skipping television ads
    51. 51. 65% of the people believe that there is an advertising flood on TV
    52. 52. 56% of the people avoid purchasing products from heavy advertisers
    53. 53. Every $1 spent on advertising results in a sales return of meager 54 cents
    54. 54. Only 18% of TV ads generate positive ROI for companies</li></ul>%<br />Percentage growth in 2008<br />Local TV<br />Magazines<br />Audio<br />Newspapers<br />Network<br />Consumer media consumption habits are radically changing<br />
    55. 55. 25<br />The rise of social media<br />Social communities are attracting a significant part of consumer time spent online<br />Internet use is growing exponentially, while use of all other media is stagnant or shrinking <br />“In a typical week, how many hours do you spend on each of the following?”<br />Time Spent (hours per week), US<br />% Change<br />(2004 to 2009)<br />Videos/Movies<br />0 %<br />Watching TV<br />Member Communities<br />Search<br />E-mail<br />117 %<br />Using the Internet<br />-18%<br />Listening to the Radio<br />-17 %<br />Reading Newspapers<br />-6 % <br />Reading Magazines<br />Hours per week<br />2004<br />2009<br />Base: 230,000 US Internet Users and 30,000 sites<br />Base: 47,496 US Adults<br />Time spent online will continue to increase as all other forms of media are being made available online. Subsequently, social media will follow as it is a global media distribution hub.<br />Source: Forrester, “The State Of Consumers And Technology: Benchmark 2009”. Nielsen: The Global Online Media Landscape, April 2009. <br />
    56. 56. Social networking websites have evolved from basic one-to-many text communication tools to highly interactive platform-agnostic services<br />1995-02<br />2007-08<br />2009<br />2005-06<br />2004-05<br />2003-04<br />Bulletin BoardsBasic one-to-many text communication forums<br />Have largely remained the same<br />Profile & Content-based Social Networks<br />Many to many communication platforms<br />Microblogging based Social Networks<br />Communication through status updates<br />Mobile Social NetworksSocial networking on the mobile platform<br />Pervasive Social Networks<br />Across platforms such as TV and gaming consoles<br />
    57. 57. What is your business model<br />
    58. 58. SoWhat?<br /><ul><li>The value of music has dramatically fallen. I used to pay nearly $20 for a CD with about 10 songs or about $2 per song. Now I use Spotify and pay just €4.99 per month for all music I want to stream to my ears
    59. 59. Movies and TV shows cost less to watch. I used to pay Comcast about $60 per month for basic cable service. I ditched the service more than a year ago and watch TV programs through a variety of Internet based services such as Hulu.
    60. 60. Newspaper and magazines are available online for free. I used to subscribe to daily newspapers and many magazines. I don’t anymore yet I get nearly the same access to those products for nearly free - just the cost of my ISP.
    61. 61. Telephone communications are dramatically less expensive today thanks to services such as Skype and other VOIP based products.</li></li></ul><li>Whyyouneedotherpeople<br />But the long tail is a decidedly mixed blessing for creators. Individual artists, producers, inventors and makers are overlooked in the equation. The long tail does not raise the sales of creators much, but it does add massive competition and endless downward pressure on prices. Unless artists become a large aggregator of other artist's works, the long tail offers no path out of the quiet doldrums of minuscule sales.<br />One solution is to find 1,000 True Fans. While some artists have discovered this path without calling it that, I think it is worth trying to formalize. The gist of 1,000 True Fans can be stated simply:<br />A creator, such as an artist, musician, photographer, craftsperson, performer, animator, designer, videomaker, or author - in other words, anyone producing works of art - needs to acquire only 1,000 True Fans to make a living.<br /><br />
    62. 62. YourBrainCanOnlyHandleThisManyFriends<br />150<br />
    63. 63. In marketing or politics, the weak ties enable reaching populations and audiences that are not accessible via strong ties. <br />The Strength of Weak Ties – Mark Granovetter<br />
    64. 64. 1000 True Fans<br /><br />
    65. 65. I prefer to make other people famous, as it scales better.<br />Makeitscalable<br />
    66. 66. "Would you tell me, please, which way I ought to go from here?""That depends a good deal on where you want to get to," said the Cat."I don’t much care where--" said Alice."Then it doesn’t matter which way you go," said the Cat."--so long as I get SOMEWHERE," Alice added as an explanation."Oh, you’re sure to do that," said the Cat, "if you only walk long enough.“<br /><br />
    67. 67. Social Media Goals<br />SMILE<br />Activities<br />Supporting<br /><ul><li>Help customers and let customers help themselves and others
    68. 68. Ensure there is a platform for them where they can find you, the brand, and other customers</li></ul>Meshing<br /><ul><li>Integrate customer feedback and input in your product cycles
    69. 69. Create a place where customers can provide input on your product and where they can see the result.</li></ul>Interacting<br /><ul><li>Start solving real world problems
    70. 70. Create an environment that promotes and enables co creation
    71. 71. Use a platform in which you can interact with your customers</li></ul>Listening<br /><ul><li>Doing web care is a good way to get to know what is said about your products
    72. 72. Give customers a platform on which they can share their thoughts.</li></ul>Evangelizing<br /><ul><li>Provide customers a home base with tools so they can promote you / your products
    73. 73. Create easy promotion kits that can be reused over and over again.</li></li></ul><li>Match your goals withthose of your (potential) customers<br />Use the goals in the SMILE-model to translate your goals<br />Enagement / Brand building<br />Need / Want Recognition<br />Information search<br />Provide context<br />Promote products<br />Evaluation<br />Purchase<br />Trust / transactions<br />Postpurchase<br />Satisfaction / loyalty<br />Model inspired on: The Business Impact of Social Computing on Marketing and 'Generation Virtual‘ – Gartner ID Number: G00158087 <br />
    74. 74. Youshould have started 6 monthsago<br />Ifyou want to have successwithsocial media right now<br />
    75. 75.
    76. 76. everything you do should at least create the beginning of a relationship<br />Whenyou are in social media<br />
    77. 77.
    78. 78. If you don’t understand the web and strategic application as a marketer, PR professional or member of the media, it shows you don’t care.  There’s no way around this, if you truly cared about your profession and craft you’d embrace what’s new and ultimately better as opposed to rallying against it or outright ignoring the market.  The web isn’t new or novel, and if you think it is you’ve been too stuck in your ways to see the most clear trend of the last century.  Analog has no future in a connected society.<br />If You Don’t Embrace The Web, It Shows You Don’t Care<br />
    79. 79.
    80. 80. People trust people<br />Teens don't hate advertising, but they rely more on friends. More than twice as many teens as adults — 38% versus 17% — say advertising helps them decide what to buy. That may sound encouraging, but marketers must also take into account that, at the same time, nearly twice as many teens as adults (47% versus 25%) rely on recommendations from friends and family. They are also far more likely to spread the word about products they like (67% versus 39) Blending advertising with social marketing is absolutely critical for marketers targeting this segment.<br />
    81. 81. "You've got no right to grow here," said the Dormouse."Don't talk nonsense," said Alice more boldly: "you know you're growing too."<br />"Yes, but I grow at a reasonable pace," said the Dormouse: "not in that ridiculous fashion." <br /><br />
    82. 82. 5<br />Social media websites are fast overtaking traditional sites and online activities <br /> Take up a significant time of online use<br />And are forever changing the ways the world communicates<br />Social media websites have penetrated the Top 10 in traffic<br />Usage across the US, Europe, Australia and Brazil<br />Global online usage, 2008<br />Users in Mn<br />22%<br />+31%<br />+21%<br />35%<br />16%<br />6%<br />14%<br />8%<br />Category did not exist 4 years ago<br />Communication<br />Social Communication<br />Entertainment & Leisure<br />Shopping & Travel<br />Social Network Use<br />Email Use<br />Business & Education<br />Other<br />2009<br />2008<br />
    83. 83. Top 5 Social Networking Websites Based on Unique Visitors, 2005-2010<br />2005<br />2007<br />2009<br />2010?<br />MSN Groups<br />MySpace<br />Facebook<br />Facebook<br />1<br />Classmates<br />Facebook<br />MySpace<br />Twitter<br />2<br />AOL Hometown<br />Classmates<br />Twitter<br />MySpace<br />3<br />MySpace<br />Windows Live<br />Classmates<br />LinkedIn<br />4<br />Windows Live<br />AOL Hometown<br />Linkedin<br />Classmates<br />5<br />
    84. 84. The World is NotAbout Facebook<br />
    85. 85. " I have an excellent idea. Let's change the subject. “ <br /><br />
    86. 86. Social media ranks over traditional media channels especially in terms of consumer interaction and costs involved<br />Attractiveness of Media Channel<br />Commentary<br />Traditional Media<br />Social Media<br /><ul><li>Traditional media involves significant investments. Cost of running a social media campaign can be 10 times lower than launching a 30 second TV ad</li></ul>Cost of Development<br /><ul><li>Traditional media offers limited opportunity to consumers to influence purchase decisions of others </li></ul>Influence on Purchases<br /><ul><li>Both media are equally competitive in developing business and show similar conversion rate, however, the cost of business development is very high in traditional media as compared to social media</li></ul>Business Development<br /><ul><li>Both traditional and social media are equally valuable in increasing brand awareness. However, the credibility of brand advocacy is higher for social media</li></ul>Brand Awareness <br />
    87. 87. Evolution of Marketing<br />“ Personalized Internet”<br />Traditional Marketing<br />“Pre Internet Explosion”<br />“The World is Online”<br />One-way communication<br />One-way communication<br />Two-way communication<br />TV, Radio, Newspaper, magazines, Direct Mail, etc.<br />Paid placement online, paid search listings, online classifieds, etc.<br />Communication<br />Social Media<br />Company<br />Company<br />Company<br />Consumers<br />Consumers<br />Consumers<br />Highest<br />Lower than in the previous scenario<br />Lower than in the case of traditional marketing<br />Cost<br />Consumers can only look and listen <br />High; consumers connect both with companies and each other<br />Low; ads appear by specific searches and “clicking” may offer more info<br />Level of Interaction<br /> Reach/Scope<br />Narrow; more focused on specific consumer interests <br />Narrower; personalized and custom tailored content<br />Wide; usually geared for the general public<br />
    88. 88. Social media challenges – ROI measurement<br />Type of Metrics<br />Reach<br />Efficiency<br />Consumer<br />Cross Channel<br />Illustrative Metrics<br /><ul><li>Number of hits
    89. 89. Number of unique visitors
    90. 90. Number of subscribers
    91. 91. Ad impressions
    92. 92. Number of referral
    93. 93. Number of comments
    94. 94. Time spent on website
    95. 95. Cost per click
    96. 96. Cost per action
    97. 97. Satisfaction with brand
    98. 98. Willingness to recommend
    99. 99. Frequency of visit
    100. 100. Variation in the amount of purchase over time
    101. 101. Return on marketing objectives
    102. 102. Sales impact from an initiative
    103. 103. Customer profitability
    104. 104. Number of people exposed to the social media activity
    105. 105. Consumers feeling about products and services
    106. 106. Consumer attitude and behavior towards marketing activities
    107. 107. Effectiveness of different tools / activities</li></ul>Insights<br /><ul><li>Easy to measure
    108. 108. Allows comparison with competitors as most companies reveal it
    109. 109. Cost comparisons with other online tools / channels
    110. 110. Long-term view on consumer attitude and behavior
    111. 111. Measures synergy between different channels and effectiveness of each</li></ul>Benefits<br />Shortcomings<br /><ul><li>Very basic in nature, provide little information about consumers
    112. 112. Lacks the long-term view on consumer attitude and behavior
    113. 113. No insights about effectiveness of different media channels
    114. 114. No insights on consumer sentiments, need accurate financial info to build this metrics</li></ul>Marketers must go beyond traffic to measure ROI and should develop a collaborative approach in line with company’s objectives<br />Source: The Interactive Marketing Metrics You Need: Forrester <br />
    115. 115. Despite advertising being the mainstay of social networking, newer revenue models are beginning to appear<br />Advertising Spend and Paid1 Revenue, Social Networking Sites ($ Mn), US, 2008-2013<br /><ul><li>Virtual goods appear to be the most promising model of social network monetization:
    116. 116. The market for virtual goods in the US is estimated to double to over $2 bn in 2010
    117. 117. The virtual goods space is already witnessing significant activity:
    118. 118. EA purchased Playfish, a social gaming developer for $275 Mn in Nov 2009
    119. 119. Zynga, makers of popular games such as Farmville, raised over $180 Mn on an estimated revenue base of over $300 Mn
    120. 120. Internet advertising is showing signs of decline, forcing developers to push for paid approaches:
    121. 121. Social gaming firm Crowdstar abandoned in-game ads in favor of virtual goods</li></ul>Source: eMarketer, “Worldwide Social Network ad spending”, Mar 2009; Piper Jaffray, “Pay to Play: Paid Internet Services”,July 2009; Reuters, “Virtual goods give Web firms new revenue in ad slump”, Dec 2009<br />Note: a) Paid services include membership fees, premium features and virtual goods<br />
    122. 122. Subscription based models are emerging as a viable option for niche social networks<br />Although paid subscribers form a minority on niche social networks such as Xing…<br />…However, they contribute the bulk of the revenues through subscriptions<br />Revenues by Segment, Euro (Mn), Xing, Q2 08 – Q2 09<br />User Split Between Free and Paid (Mn), Xing, Q2 08 – Q2 09<br />Over 75% revenues of popular business-user oriented social network, LinkedIn, comes from paid products.<br />Source: Capgemini TME Strategy Lab analysis; Company websites and annual reports<br />
    123. 123. Increasing consumer need to access social networks on-the-go will drive higher adoption of social networking on the mobile platform<br />Mobile Content Consumption Preferences, Survey Results, US, 2009<br />Global Mobile Social Networking Sessions (Millions), 2008-2013E<br />CAGR 50%<br />Source: Capgemini TME Strategy Lab analysis; Informa,” Mobile Social Networking Forecasts”, 2009; Comsore MobilLens through Morgan Stanley, “Mobile Internet Report”, Dec 2009<br />
    124. 124. Consumers are rapidly scaling up their usage of social networking on the mobile<br />Consumers are increasing their consumption of social networking on the mobile<br />Networks such as Facebook are now seeing significant traffic from their mobile users<br />Mobile Internet Audience Growth, % of Market1, UK, May 08-09 <br />Usage per day (Mins) and Visits per day, Facebook-on PC and Mobile, UK, 2009<br />27%<br />150%<br />PC<br />Mobile<br />Increased usage of social networking on the mobile platform is likely to drive mobile data traffic<br /> Note: 1) % of total market refers to the number of mobile users using mobile Internet services during the three-month periods ending May -8 and May-09<br />Source: Comscore, “Social Networks on the Move”, Sept 2009<br />
    125. 125. In the process, they have also succeeded in weaning away users from traditional horizontal portals <br />Share of Online Time Spent (%), Global, June 2006-June 2009<br />Source: Comscore through Morgan Stanley, “Economy and Internet Trends”, Oct 2009<br />
    126. 126. " Sentence first -- verdict afterwards.“ <br /><br />
    127. 127. Twitter 'costs British economy £1.38bn'<br />
    128. 128. Twitter joke led to Terror Act arrest and airportlife ban<br />
    129. 129. Nathalie Blanchard<br />
    130. 130. Gunsdon’tkillpeople<br />
    131. 131. Whatguns do<br />
    132. 132. Earthquake in China<br />3 minutes<br />VS<br />3 months<br />
    133. 133. Twitter 'costs British economy £1.38bn'<br />Talking about last night's Eastenders costs British economy £1.38bn<br />Eating biscuits costs British economy £1.38bn<br />Unjamming the photocopier costs British economy £1.38bn<br />
    134. 134. " Off with her head!” <br /><br />
    135. 135. Social media as killer feature forMotrin<br />The ad<br />What happened<br />Wearing your baby seems to be in fashion. I mean, in theory it’s a great idea. There’s the front baby carrier, sling, schwing, wrap, pouch. And who knows what else they’ve come up with. Wear your baby on your side, your front, go hands free. Supposedly, it’s a real bonding experience. They say that babies carried close to the body tend to cry less than others. But what about me? Do moms that wear their babies cry more than those who don’t. I sure do! These things put a ton of strain on your back, your neck, your shoulders. Did I mention your back? I mean, I’ll put up with the pain because it’s a good kind of pain; it’s for my kid. Plus, it totally makes me look like an official mom. And so if I look tired and crazy, people will understand why.<br />It all began with an online ad posted Saturday (15 november 2008) on the company’s website. It was about “baby wearing” — i.e. carrying a child in a sling or a wrap, rather than pushing them in a stroller or carrying them in your arms. For some parents it is something they do simply because it works. For others it goes far deeper than that — part of a philosophy of being close to the baby whenever possible.<br />Developments<br />By Saturday evening they were the most tweeted subject on Twitter. By Sunday there was a nine minute video on YouTube, to the tune of Danny Boy, showing screen shots of the outraged twitter posts interspersed with photos of Moms carrying babies in slings. <br />Bloggers began calling for boycotts. Bloggers asked their readers to alert the mainstream press. <br />By Sunday afternoon a few bloggers and tweeters had gotten the ad agency that created the ad on the phone, to find they didn’t know a lot about Twitter and didn’t seem to have a clue that there was so much anger piling up online<br /><br />
    136. 136. HowdidMotrinrespond<br />Developments<br />By Sunday evening the ad was taken offline by McNeil Consumer Healthcare, the maker of Motrin.<br />The response<br />I am the Vice President of Marketing for McNeil Consumer Healthcare. I have responsibility for the Motrin Brand, and am responding to concerns about recent advertising on our website. I am, myself, a mom of 3 daughters.<br />We certainly did not mean to offend moms through our advertising. Instead, we had intended to demonstrate genuine sympathy and appreciation for all that parents do for their babies. We believe deeply that moms know best and we sincerely apologize for disappointing you. Please know that we take your feedback seriously and will take swift action with regard to this ad. We are in process of removing it from our website. It will take longer, unfortunately, for it to be removed from magazine print as it is currently on newstands and in distribution. <br />-Kathy<br />Kathy WidmerVP of Marketing - Pain, Pediatrics, GI, SpecialtyMcNeil Consumer Healthcare<br /># times Motrin was mentioned<br />Motrin peaked on Twitter<br /><br />
    137. 137.
    138. 138.
    139. 139. Sony<br />Fake fan blog:<br />A poorly disguised marketing effort—the URL was registered to Zipatoni (PR firm). <br />After discovery Sony responds:<br />“Charlie” keeps posting his denials, in pseudo hip-hop speak. More than once he writes, “yo where all u hatas com from... juzcuz you aintfeelin the flow of PSP dun mean its sum mad faek website or summ... youall be trippin.” <br /> “Busted. Nailed. Snagged. As many of you have figured out (maybe our speech was a little too funky fresh???), Peter isn’t a real hip-hop maven and this site was actually developed by Sony. Guess we were trying to be just a little too clever. From this point forward, we will just stick to making cool products, and use this site to give you nothing but the facts on the PSP. Sony Computer Entertainment America.” <br />
    140. 140. Ketchum and FedEx<br />This particular Twitter posting came back to bite the agency person from Ketchum <br />(New York office) who made some unflattering remarks about Memphis this morning before he presented on digital media to the worldwide communications group at FedEx (150+) people. Not only did an employee find it, they were totally offended by it and responded to the agency person. The kicker is that they copied the FedEx Coporate Vice President, Vice President, Directors and all management of FedEx’s communication department AND the chain of command at Ketchum. Mr. Andrews, the Ketchum presenter, did not take into account that many FedExers are native Memphians and are fiercely defensive of their city and their company.<br />
    141. 141. "Door: Why it's simply impassible! Alice: Why, don't you mean impossible? Door: No, I do mean impassible. (chuckles) Nothing's impossible!" <br /><br />
    142. 142.
    143. 143. Facebook increased traffic to Animoto 120x<br />Amazon EC2 easily scaled up and down to handle additional trafficPeak of 5000 instances<br />Number of EC2 Instances<br />Launch of Facebook modification.<br />Steady state of ~40 instances<br />4/12/2008<br />4/14/2008<br />4/15/2008<br />4/16/2008<br />4/18/2008<br />4/19/2008<br />4/20/2008<br />4/17/2008<br />4/13/2008<br />
    144. 144. And have a 400% increase in ROI<br />Spendyour budget on different media<br />
    145. 145. Beinggirl<br />Procter & Gamble's Being Girl community is an online community targeted at young girls. P&G was able to use this community to market feminine hygiene products in a subtle way to an audience that doesn't want to talk about them.<br /> <br />What's very interesting to note is that P&G found community building to be four times more effective than traditional advertising.<br />
    146. 146. 1.73 billion Internet users<br />Get to youraudience<br />
    147. 147. Almost 25% of the Internet users have a Facebook account<br />Facebook couldbeinteresting<br />
    148. 148. "But I don't want to go among mad people," Alice remarked."Oh, you can't help that," said the Cat: "we're all mad here. I'm mad. You're mad.""How do you know I'm mad?" said Alice."You must be," said the Cat, "or you wouldn't have come here.“<br /><br />
    149. 149. It’s big business on Facebook<br />Curling<br />
    150. 150.
    151. 151. 639.552 fans?<br />
    152. 152. Monetization<br />
    153. 153. Ernst & Young can reach out to more than 35000 potential new hires and recruiters on Facebook within minutes.<br />
    154. 154. Facebook as an Intranet<br />
    155. 155. Identity? Facebook Connect!It’s the social graph that counts!<br />
    156. 156. Buildyour platform on a platform<br />
    157. 157. Farm withyourfriends<br />
    158. 158. "Now, I give you fair warning," shouted the Queen, stamping on the ground as she spoke; "either you or your head must be off, and that in about half no time! Take your choice!" <br /><br />
    159. 159. H&M<br />Rumorsabout H&M is throwingawayunused and unsoldclothes<br />1299 respond to these rumors (negatively!)<br />400 people ‘Liked’ the respons of H&M<br />H&M reply was effective to prevent a disaster<br />
    160. 160. The White Rabbit put on his spectacles. "Where shall I begin, please your Majesty?" he asked."Begin at the beginning," the King said gravely, "and go on till you come to the end: then stop.“<br /><br />
    161. 161. It starts with a relationship<br />Networkeffects<br />
    162. 162. Ford<br />100 Fiestas<br />37% of Generation Y<br />25% marketing spendonsocial media<br />No Governmentloan<br />
    163. 163. Dell<br />In June PC firm Dell revealed it had made a total of $3m from activity on the micro blogging service. Of that $2m was made directly and another $1m was accounted for when traffic to was factored in.<br />The $3m included both 2007 and 2008 when there was minimal Twitter activity, but the 2009 figure ($6.5m) shows real growth that has come during the year the number of people using Twitter within the Dell organisation has increased to somewhere between 100-200.Some of the strongest growth Dell is seeing is coming from emerging markets. It highlighted Brazil as one area it was doing particularly well. Dell's operation in Brazil via its @DellnoBrasil Twitter account has generated $800,000 in eight months of activity. <br />
    164. 164. Recession case<br />99 cents<br />Got coverage on Geardiary, Gizmodo, Engadget, TechCrunch, CNET, Mashable and many more big blogs<br />Result:<br />Broke site traffic record by five times<br />All time revenue record<br />Facebook and Twitter traffic skyrocketed<br />In four days 7000 cases<br />
    165. 165. Blendtec<br />BlendTecincreased its sales by 20% by running the often humorous "Will it Blend" Videos on YouTube, blending everything from an iPhone to a sneaker.<br />
    166. 166. Alice: I'm sorry I interrupted your birthday party.March Hare: Why my dear child this is not a birthday party.Mad Hatter: Heavens no. This is an unbirthday party!Alice: Unbirthday? I'm sorry, but I don't quite understand.March Hare: It's very simple. Now, thirty days has Septem -No. wait... An unbirthday, if you have a birthday, then you - [laughs] She doesn't know what an unbirthday is!Mad Hatter: You see, you have 1 birthday a year, how silly, but you have 364 UNBIRTHDAYS each year. Today's our unbirthday.Alice: Why, I believe it's my unbirthday too!Mad Hatter: What a small world!!<br /><br />
    167. 167. MakeitanunbirthdayeverydayforyourcustomerS<br />
    168. 168. So How Can Businesses Use Social Media? To Increase Revenue!<br /><ul><li>Through a rich internet application, BMW offers an extended form of customization for the Mini’s roof
    169. 169. Nike and Apple mashup addresses the community of runners
    170. 170. Lego allows customers to design their own LEGO pieces
    171. 171. Enter new markets
    172. 172. Increase customer satisfaction
    173. 173. Increase Marketing Effectiveness</li></li></ul><li>Through A Rich Internet Application, BMW Offers An Extended Form of Customization for the Mini’s Roof<br />Technology<br />Impact<br /><ul><li>Name: Rich internet application, realized with Macromedia Flash / </li></ul>Shockwave, integrated into the Mini website<br /><ul><li>Offering customers to design the roof of their Mini themselves enabled</li></ul>BMW to underline the brand image of individualism and uniqueness for <br />the Mini brand<br /><ul><li>Mini sales have gone up towards the end of 2007, which hints towards </li></ul>good market reception of the current marketing strategy, including the <br />website<br /><ul><li>The customer input generated (some designs are exhibited in an online </li></ul>gallery after being selected by BMW, but all designs submitted could <br />be saved) could be used to screen for market trends<br /><ul><li>Impact on the value chain: Marketing & sales, specifically branding</li></ul>Implementation<br />Strategic Fit<br /><ul><li>The roof customization application went online in June 2007
    174. 174. Actual printing of the roof foil is only available in Italy as of December 2007 for 400 EUR, roll-out in Germany and the rest of Europe is planned
    175. 175. In the US , the “Mini custom paintjob” application is available. </li></ul>It additionally allows for design of the whole body of the car, but is <br />declared to only be for entertainment use, the designs cannot be <br />bought and actually put on a car<br /><ul><li>The extended customization through an online application thrives to </li></ul>make the online experience for Mini customers as interesting and <br />different from other brands as possible<br /><ul><li>By keeping the roof customization option linked to Mini and not </li></ul>offering it to other brands of the BMW group, brand differentiation is <br />deepened <br />
    176. 176. Nike+ and Apple Working Together to Improve the Experience of Runners<br />SOLUTION<br />HEAR YOU RUN…<br />Sensor in the shoe helps the runner hear through the iPod, the details about pace, time, distance and calories burned<br />1<br />BACKGROUND<br />SEE YOU RUN…<br /><ul><li>Nike wanted to create an immediately resonant experience for a broad target market, from marathoners to fitness joggers
    177. 177. Nike+ was born as a multi-channel, multi-sensory marriage of Nike and Apple technologies
    178. 178. Nike+ provides a robust platform of virtual racing, progress tracking, motivational goals and stories, global community comparison tools</li></ul>On docking and synchronizing the iPod, Nike+ software loads the workout statistics to their website where the user will be able to track his/her workout progress<br />2<br />CONNECT AND CHALLENGE<br />Run data can be used to track progress, set goals, motivate runners. win rewards and challenge pals or all Nike+ users<br />3<br />CUSTOMER CENTRICITY THROUGH BETTER INTERACTION USING WEB 2.0<br /><br />III<br />BENEFITS<br />Widgets for setting challenges, goals…<br />Blog facility for Nike+ users<br />Link to purchase Nike+ kit and other Nike gear<br /><ul><li>Nike+ is a unique way to engage with and promote higher levels of brand identity amongst Nike users
    179. 179. Delivers increased value to Nike users through a unique way of collaborating
    180. 180. Engages current and prospective Nike users with uninterrupted and targeted advertising
    181. 181. 20% reduction in ad budgets as Nike is moving towards developing its own media network through such technological endeavors</li></ul>I<br />II<br />III<br />III<br />II<br />I<br />Source: MRD Lab Analysis. Nike+ website. ‘Nike does business 3.0’ Phill Butler, 2007.<br />
    182. 182. Lego Factory Involving Customers in the Design Process<br />SOLUTION<br /><ul><li>Lego launched the Lego Factory ( – an online model of engagement for potential and existing Lego users, which allows users to design, share and buy their own customized LEGO models</li></ul>THE LEGO FACTORY WEBSITE <br />BACKGROUND<br /><ul><li>Lego had traditionally been surrounded by a highly active constellation of Lego User Groups - fan communities comprising of both adult and young members
    183. 183. These groups maintained large online presence; operated independently of the company; exchanged and showed creative toy designs and models amongst themselves
    184. 184. Lego needed to move out of closed proprietary mode and adapt a participative strategy for customer interaction, which would utilize existing user creativity in product design</li></ul>BENEFITS<br /><ul><li>Designer users can then order the bricks needed to make their model, and also customize their own box for the model
    185. 185. Other users on the site can buy uploaded designs in the gallery, and will receive both the bricks for the model as well as the building instructions
    186. 186. Through the Lego Factory, the company has taken a step further in the evolution of user involvement, building strong brand relationship
    187. 187. The initiative has created high levels of awareness and interest with the consumers
    188. 188. The initiative has put Lego a step ahead of competition by moving out of closed proprietary content mode and involving fresh ideas from consumers and community for New Product Development
    189. 189. Users interested in custom-designing their own Lego models have to download and install the ‘Lego Digital Designer’ –
    190. 190. In the designer, the user can drag and drop to create a virtual toy design
    191. 191. Once the user has created a design, he can upload the same to the online gallery
    192. 192. Lego approves all designs before they are added to the online gallery, to filter out models for appropriateness for all age groups</li></ul>Source: MRD Lab Analysis. Capgemini, “ECR Europe Conference: Future Consumer Presentation”, May 2008., “Lego Co-creation Presentation by Mark Hansen: Video”, September 2006., “Co-Creation in Lego Factory”, September 2007. European Centre for the Experience Economy, “Lego’s participative army marches on”, April 2008. <br />
    193. 193. Businesses can Also use Social Media to Reduce Costs<br /><ul><li>A large multination postal group piloted wikis and social networking over its Corporate Intranet to enhance internal collaboration and improve productivity
    194. 194. Boeing used co-creation to reduce development time of new airplane models
    195. 195. Facilitate more effective </li></ul>collaboration<br /><ul><li>Reduce email</li></li></ul><li>A large international postal group piloted wikis and social networking over its Corporate Intranet to enhance internal collaboration and improve productivity<br />A Capgemini Case<br />SOLUTION<br /><ul><li>The new portal will be based on the following set paradigms:
    196. 196. Single vendor strategy
    197. 197. Open industry standards
    198. 198. Modular architecture
    199. 199. The portal is expected to have advance features such as:
    200. 200. RSS Feeds : integration of any content in any context
    201. 201. Personalized news : subscription, alerts: Filter information flows according to business needs
    202. 202. WorkSpace (sharing): share documents and knowledge
    203. 203. Forum: to discuss topics globally, or locally (based on restricted groups or as part of your Intranet-Portal / article)
    204. 204. Wiki: to enable editing and modification of articles with reduced workflow
    205. 205. Networking / About Me / My Profile: To enable find colleagues with common profiles, projects and interests
    206. 206. To ease access, the Corporate Intranet will be using Single Sign-On mechanism</li></ul>BACKGROUND<br /><ul><li>The company corporate intranet serves as an important information platform connecting thousands of employees globally
    207. 207. The Company initiated a corporate intranet improvement project with the aim to:
    208. 208. Personalize the intranet:
    209. 209. Provide customized information based on a user’s affiliation to a business unit
    210. 210. Provide options to personalise users’ information environment to better suit their needs
    211. 211. Provide faster and easier access to the intranet
    212. 212. Increase usage of the intranet </li></ul>BENEFITS<br /><ul><li>Easier access to the intranet with more effective search capabilities has resulted in improved productivity and reduced time
    213. 213. Greater sharing/reuse of intellectual capital and increasing collaboration will enable better and faster business results
    214. 214. Using standardized approach has resulted in reduced operation, maintenance and development cost</li></li></ul><li>Project Lifecycle Management has proven to be a critical success factor for the 787 Dreamliner development<br />Technology<br />Impact<br /><ul><li>Name: Dassault Product Lifecycle Management suite
    215. 215. TechnoVision Technology Cluster: Process on the Fly
    216. 216. The Dassault PLM suite consists of a number of software packages: </li></ul>Catia (3D CAD design), Delmia (Manufacturing simulation), Enovia<br />(Product Data Management)‏<br /><ul><li>Boeing expects PLM to reduce development costs by up to 20%
    217. 217. With the 787, Boeing is able for the first time to outsource over 70% of </li></ul>the aircraft’s components while still retaining control over the process <br />- dozens of suppliers could be integrated from the beginning of the <br />design phase<br /><ul><li>The time schedule for the 787 development will be met almost on time in</li></ul> 2009<br /><ul><li>The PLM system prevented costly mistakes early on and allowedfor necessary adaptions
    218. 218. Impact on the value chain lies within technology developmentand operations</li></ul>Implementation<br />Strategic Fit<br /><ul><li>2002: Decision to work with the Dessault PLM suite is made. </li></ul>6,000 workstations get upgraded to the same software, incurring 120m USD <br />cost<br /><ul><li>2004: Dreamliner program is approved, development and </li></ul>manufacturing planning go into the next phase<br /><ul><li>2006: “Virtual Takeoff” of the 787 – design and manufacturing </li></ul>planning phase is complete<br /><ul><li>Implementation of Dassault’s PLM system enables the secure execution</li></ul>of Boeing’s outsourcing strategy, as all processes are linked on a stable <br />platform and errors in design, manufacturing planning and processes can <br />be spotted early on<br /><ul><li>The PLM execution gave Boeing a significant time advantage over </li></ul>Airbus, who experienced huge drawbacks from software incompatibilities <br />that led to wrong development of subsystems<br />
    219. 219. What Else Can Businesses Do? Use Social Media to Speed Up Time to Market<br /><ul><li>Through ‘crowdsourcing’, Threadless and Look Zippy are facilitating higher interaction levels amongst consumers in designing T-shirts
    220. 220. Proctor & Gamble now generates 35% procent of new product features through crowdsourcing
    221. 221. Collaboratively develop and </li></ul>launch new products & services<br /><ul><li> Use co-creation for faster and </li></ul>more effective R&D<br />
    222. 222. Through ‘crowdsourcing’, Threadless and Look Zippy are facilitating higher interaction levels amongst consumers in designing T-shirts<br />SOLUTION<br />BACKGROUND<br />1<br />2<br /><ul><li>‘Crowdsourcing’ provides retailers with innovative co-creation tools in order to:
    223. 223. generate new designs
    224. 224. evaluate submitted designs
    225. 225. sell products via affiliate marketing systems
    226. 226. THREADLESS: A community-based tee shirt company with an on-going, open-call for design submissions, most voted designs are produced
    227. 227. LOOK ZIPPY: An open design competition captures the distributed creativity of users, selects the best designs, and secures binding orders for production</li></ul>Get Idea Ready…<br />Submit Idea…<br />Users copy their designs in submission templates and fill out ‘submission forms’<br />Users ideate and create their designs in high resolution formats<br />SEE YOU RUN…<br />3<br />Community Rates and Comments on Idea…<br />Over a fixed period of time, community comments and rates the idea through voting<br />4<br />4<br />Winning designs of all sizes and ranges are produced and listed on the website for users to purchase<br />Winning designs are open for orders for a fixed time period, only binding orders are produced<br />BENEFITS<br /><ul><li>Crowdsourcing enables retailers with a cost effective multi-channel offering, apart from the conventional stores
    228. 228. Facilitates early customer commitment thus reducing new product development risk
    229. 229. Offers ‘exclusivity’ phenomenon to customers as only the ordered few number of tee shirts in a span of two weeks are produced
    230. 230. Eliminates waste and ensures low inventory as production begins once the order is placed</li></ul>Source: MRD Lab Analysis. Threadless website. Look Zippy website. “Collective Customer Commitment and Crowdsourcing: How Look-Zippy is bringing the Threadless model to the next level”, 2006.<br />
    231. 231. P&G’s connect + develop Program facilitated Greater Innovation<br />SOLUTION<br /><ul><li>P&G launched the ‘Connect + Develop’ initiative, tapping into a global innovation network comprising of a host of sources, right from independent innovators to virtual innovator networks such as InnoCentive
    232. 232. Having a clear sense of consumers' needs, the company identifies promising ideas throughout this network and applies its own R&D, manufacturing, marketing, and purchasing capabilities to them to enhance the rate of innovation</li></ul>BACKGROUND<br /><ul><li>As P&G grew to a $70 billion enterprise, the global innovation model it devised in the 1980s was yielding shrinking success rates
    233. 233. Their R&D productivity had leveled off, and innovation success rate had stagnated at about 35%, whereas innovation costs were climbing faster than top-line
    234. 234. While P&G owned a 7500+ strong R&D team, it realized that viable product innovation was increasingly being done externally at small and midsize entrepreneurial companies</li></ul>P&G CONNECT + DEVELOP<br />P&G converts them into ‘science problems and sends into the network<br />P&G identifies top 10 customer needs<br />P&G’s Global Innovation Network<br />BENEFITS<br /><ul><li>More than 35% of P&G’s new products have elements that originated from outside P&G, up from about 15% in 2000
    235. 235. R&D productivity increased by nearly 60%
    236. 236. R&D investment as a percentage of sales is down from 4.8% in 2000 to 3.4% in 2006
    237. 237. P&G’s average two-month cycle of generating physical prototypes and testing them with consumers has reduced to around 24 to 48 hours</li></ul>P&G’s 7500+ R&D team work on solutions suggested and with internal communities<br />INNOVATIONS In Areas Of Packaging, Design, Marketing Models, Research Methods, Engineering, Technology, Etc <br />Source: MRD Lab Analysis. Harvard Business School, Working Knowledge, “P&G's New Innovation Model”. Leveraging Ideas for Organizational innovation Blog, Dr. Kevin Desouza, “ Connect & Develop Innovations the P&G Way”. P&G, “P&G Connect & Develop – Brochure”.<br />
    238. 238. So she sat on, with closed eyes, and half believed herself in Wonderland, though she knew she had but to open them again, and all would change to dull reality--the grass would be only rustling in the wind, and the pool rippling to the waving of the reeds--the rattling teacups would change to tinkling sheep-bells, and the Queen's shrill cries to the voice of the shepherd boy--and the sneeze of the baby, the shriek of the Gryphon, and all thy other queer noises, would change (she knew) to the confused clamour of the busy farm-yard--while the lowing of the cattle in the distance would take the place of the Mock Turtle's heavy sobs.<br />Lastly, she pictured to herself how this same little sister of hers would, in the after-time, be herself a grown woman; and how she would keep, through all her riper years, the simple and loving heart of her childhood: and how she would gather about her other little children, and make their eyes bright and eager with many a strange tale, perhaps even with the dream of Wonderland of long ago: and how she would feel with all their simple sorrows, and find a pleasure in all their simple joys, remembering her own child-life, and the happy summer days.<br /><br />
    239. 239. Alice laughed. “There's no use trying,” she said “one can't believe impossible things.”<br />“I daresay you haven't had much practice,” said the Queen. “When I was your age, I always did it for half-an-hour a day. Why, sometimes I've believed as many as six impossible things before breakfast.”<br /><br />
    240. 240. Rick Mans<br /> 6 512 10 144<br />