Markets are conversations.


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  • First of all, I would like to thank Prof du Toi, at the department of information and knowledge management, for this opportunity to address you today on a topic I am very passionate about. A word of introduction, my name is Rosario Sica and I collaborate with the University of Insubria in Varese, Italy, in the Department of information and communication technology. As a pass time, I am also a director at a management consulting company, being in charge of the area of New Technologies. Over the past year I have been in charge of projects to develop knowledge management systems and community management systems on clients such as Barclays Financial Group, Eurizon Financial Group and other large corporations.
  • Markets are conversations.

    1. 1. <ul><li>UNIVERSITY OF JOHANNESBURG </li></ul><ul><li>5 of September 2007 </li></ul><ul><li>Overview of WEB 2.0 </li></ul><ul><li>Markets are conversations </li></ul><ul><li>Rosario Sica </li></ul><ul><li>e-mail: </li></ul>
    2. 2. <ul><li>Scenario del WEB 2.0 </li></ul><ul><li>Age of “user-generated content” </li></ul>
    3. 3. TIME December 1982
    4. 4. TIME December 2006
    5. 5. A big phenomenon: the barriers of technology fall away The era of “user-generated content” <ul><li>Open encyclopaedia </li></ul><ul><li>60 mil. Access a day Over 5 mil of entries worldwide (+107%) (201.000 in Italy, + 80%). 4 million registered users </li></ul><ul><li>300 mil pages viewed a day(+122% ultimo anno) </li></ul><ul><li>7,5 mil registered users </li></ul><ul><li>400 million pages viewed a day </li></ul><ul><li>120 mil registered users </li></ul>[Google bought for $1,6 Bil] [News Corp bought for $580 Mil] <ul><li>65 mil users registered </li></ul><ul><li>social book marking </li></ul><ul><li>and folksonomy </li></ul><ul><li>( 2003) </li></ul><ul><li>business networking and endorsement </li></ul><ul><li>social broadcasting </li></ul><ul><li>( 2004) </li></ul><ul><li>Social networking </li></ul>[Yahoo bought in 2006] <ul><li>6 mil users registered </li></ul><ul><li>sharing photos with people </li></ul><ul><li>( 2003) </li></ul>
    6. 6. Web 2.0: overview <ul><li>Web 1.0 </li></ul><ul><li>Static view </li></ul><ul><li>Browsing </li></ul><ul><li>HTML </li></ul><ul><li>Personal site </li></ul><ul><li>Content Mgmt system </li></ul><ul><li>Directory / Taxonomy </li></ul><ul><li>Top down </li></ul><ul><li>Web 2.0 </li></ul><ul><li>Social platform </li></ul><ul><li>Feed reader/Syndication </li></ul><ul><li>AJAX/ Portlet assembled by the user </li></ul><ul><li>Blog </li></ul><ul><li>Wiki </li></ul><ul><li>Tag/Folksonomy </li></ul><ul><li>Peer to peer </li></ul>Web 2.0 facilitates collective intelligence Collaboration, Capitalization, Knowledge Sharing, Convergence Source:
    7. 7. From Gutenberg to Berners-Lee Some specific phenomena <ul><li>The users are the goal </li></ul><ul><li>Target/Segment of the market </li></ul><ul><li>Hierarchy </li></ul><ul><li>Taxonomy </li></ul><ul><li>Production capacity </li></ul><ul><li>Mass market </li></ul><ul><li>Top down/Bottom up </li></ul><ul><li>Push </li></ul><ul><ul><li>Discussions </li></ul></ul><ul><li>The users are the producers </li></ul><ul><li>Community </li></ul><ul><li>Social Networking </li></ul><ul><li>Folksonomy </li></ul><ul><li>Reputation and competency </li></ul><ul><li>Market mass </li></ul><ul><li>Peer to peer </li></ul><ul><li>Pull </li></ul><ul><ul><li>Conversations </li></ul></ul>Gutenberg The era of mass media Berners-Lee The era of social networking and conversation
    8. 13. The cluetrain Manifesto <ul><li>The end of business as usual </li></ul><ul><li>Naked conversations </li></ul>
    9. 14. Theses 1 – 6: Markets are Conversations ….95 theses… <ul><li>Historically, the authors state, the marketplace was a location where people gathered and talked to each other (thesis 1): they would discuss available products, price, reputation and in doing so connect with others (theses 2-5.) The authors then assert that the internet is providing a means for anyone connected to the internet to re-enter such a virtual marketplace and once again achieve such a level of communication between people. This, prior to the internet, had not been available in the age of mass media (thesis 6.) </li></ul>
    10. 15. The voice of the customer: market becoming conversation <ul><li>Companies are developing new ways of relating to the market, thus taking the client inside the processes of communication and innovation of the companies. </li></ul><ul><li>This process of innovation concerns all the companies that are already using the mode of conversation with customers to gain a competitive edge and others that are using the web 2.0 to begin a new relationship with the customer. </li></ul>
    11. 16. The phenomenon of Blog Over 50 million of Blogs (as at 09/2006). Doubling every six months 75.000 Blogs created every day
    12. 17. Is it true that markets are conversations? The future of the brands is in the interactions with clients, not in the products” The Blog of the President of Sun Microsistems, Jonathan Schwartz The launch of the Fiat Bravo with the conversations of clients Innovation of new product (Lego Mindstorm) with communities of customers The Blog of the CEO of DUCATI The company answer the case Kriptonite Naked Conversations: How Blogs are Changing the Way Businesses Talk with Customers (Hardcover) ROBERT SCOLBE
    13. 18. Is it true that markets are conversations? The future of the brands is in the interactions with clients, not in the products”
    14. 19. Fiat: a case of innovation in the greatest turnaround of all time <ul><li>The contest of the turnaround </li></ul><ul><ul><li>June 2004: </li></ul></ul><ul><ul><ul><li>10 bil. € loss in past five years </li></ul></ul></ul><ul><ul><ul><li>Company on the edge of bankruptcy. </li></ul></ul></ul><ul><ul><li>September 2006: </li></ul></ul><ul><ul><ul><li>Increase in sales of 21% </li></ul></ul></ul><ul><ul><ul><li>Market share in Europe up to 7,7% </li></ul></ul></ul><ul><ul><ul><li>Operating Margin of 1,2% </li></ul></ul></ul><ul><ul><li>December 2006: </li></ul></ul><ul><ul><ul><li>Turnover of 52 bil. € </li></ul></ul></ul><ul><ul><li>Business Plan 2007-2010: </li></ul></ul><ul><ul><ul><li>Market share in Europe over 11% </li></ul></ul></ul><ul><ul><ul><li>Operating Margin in 2010 over 6% </li></ul></ul></ul><ul><li>Case history </li></ul><ul><ul><li>Fiat Bravo </li></ul></ul><ul><ul><li>Fiat 500 </li></ul></ul>
    15. 28. The launch of a new product based on conversations with client
    16. 29. <ul><li>Conclusion </li></ul>
    17. 30. The “Millennials” Generation <ul><li>Born 1980 - 2000 </li></ul><ul><li>Raised with internet </li></ul><ul><li>Always online </li></ul><ul><li>Multitasking is their mode of operation </li></ul><ul><li>They prefer multimedia rather than text </li></ul><ul><ul><ul><ul><ul><li>What they ask? </li></ul></ul></ul></ul></ul><ul><li>Working in teams in a collaborative environment </li></ul><ul><li>Up-to-date technology </li></ul><ul><li>A forward thinking, responsive and innovative company </li></ul>Source: Is Europe ready for the millennials? Forrest Consulting Research, November 2006
    18. 33. References: <ul><li>Forrester Consulting Research: Is Europe Ready For The Millennials? </li></ul><ul><li>Don Tapscott and Anthony D. Williams: WIKINOMICS </li></ul><ul><li>Jane Klobas: Over WIKIPEDIA </li></ul><ul><li>Clutrain Manifesto: Rick Levine,Christofer Locke, Doc Searls e David Weinberger </li></ul><ul><li>Thomas Friedman: The world is flat </li></ul><ul><li>David Kline: BLOG! </li></ul><ul><li>Community management: </li></ul><ul><li>Processi informali, social networking e tecnologie Web 2.0 per coltivare la conoscenza nelle organizzazioni di Rosario Sica e Emanuele Scotti </li></ul><ul><li>http:// </li></ul><ul><li>http:// </li></ul><ul><li> </li></ul><ul><li>“ A computer without internet is like a paperweight .” </li></ul><ul><li>- e-mail: [email_address] - </li></ul>