Tallinn University of Technology (TUT) Case Analysis: The Entrepreneurs at Twitter Author: Ken Mark Year: 2011 (revised) from 2010 Te Rattanak (Student X) Unggul Sagena (Student Y) Technical Change, Techno-Economic Paradigm and Changing Opportunities for Development Prof. Carlota Perez
SummarySummaryIn 2006, trio Jack Dorsey, Evan Williams & Biz Stone released “Twitter”. Twitter is a free social messaging and micro-blogging utility for staying connected realtime. Users send 140 character messages referred to as “tweets” and are delivered to those who have subscribed (followers) to the author’s tweets.In 2010, beginning of the e-commerce plan with promoted account, tweets,business models (as we can see on the next slide) and also announced it’scustomer based and not-for-sale policies.In 2011, It is regarded as one of the hottest technology companies. Twitter become more famous since many of public figures, most of them politicians and celebrities enter the services and gain millions of followers. It also for people to twit (send text messages) important events happening in the real time. It has been cited as being an influential factor in socio-political events ( USA, Moldova, Tunisia, Egypt…etc)Now In 2012 (from internet-research) : Twitter announced its marketexpansion to europe with opening new branch in Dublin, Ireland foreuropean (sales) market.
Locating the Case : Product (X)Twitter is in the take off andgrowth stage. Within the industry, Twitter is in position which the market is growing (market growth fase)
Locating the Case : Context andFactors (Y) Twitter appeared in 2006 in the Frenzy Phase of the 5th great surge. It was first developed in USA and later spread to Asia and Europe. Continuation of the trajectory of innovation from the concept of Chatting model & SMS in 90s. Cloud Infrastructure and Internet is growing and establishing as Infrastructure and Externalities to the services. Popularity of open source that create free internet services of the ICT paradigm. Need to become Economically Profitable (it was already Technologically Feasible and Socially Acceptable). Twitter announced their business models of promoted ads and open their API for third party developers and SKIES business companies
Lesson & Applicability (X)Lesson : Using Open Source technologyApplicability : Startup (SKIEs) companies because it is cheap, flexible and possibel for third party to develop theprogram more and better. Open source technology will contribute a lot in the success of company development in ICTParadigm. Because Open Surce is one of 10 powers to flatten the world (Thomas L Friedman)Lesson : the modern network organizationApplicability : all companies, because it has the most effective and efficient structure.Lesson : A clear goal and consistence, idealistic company.Applicability : this kind of companies will get investors and have a good relations to the customers. So up and downand they can ensure the long-life of community based customers.Lesson : The new features of Knowledge Society. There is a universal access to knowledge. Everyone can innovate asentrepreneurs or in organization.Applicability : Everyone who want to become entrpreneurs.Lesson : Promoting free services but have plans to get the money from the services, or Free-mium prices of product &services.Applicability : Companies have to think about how to get money from the services, example via freemium services that10 % of users pay for the premium services. Or, make the third party possible to “fund” their operational services.
Lesson & Applicability (Y)Lesson : Public figures as brand ambassadors for the product/services.Applicability : the growth of network based product & services mostly influenced by public figureswho enters the services. So, use and invite public figures into the services (for free, also sometimescompany may be have to pay public figures professionally)Lesson : Business models of Connecting brands (Companies) to engage with [millions] of registered users(Consumers) with real-time Advertising & Promotions.Applicability : Start-up and Services companies can do the sameLesson : Feed back from the customers as communities.Application : All companies in modern world have to listen the feedback from their customers,especially the community network they build so the company will grow faster and customers will bedevoted and not abandon the services.Lesson : Creating means for people to communicate better with the world of globalization.Applicability : companies who want to start a network & internet servicesLesson : Continues innovation of product and services and make alliances with SKIE’sApplicability : Every companies who want to globalize and glocalize their product & services can opentheir API (Application Programming Interface) and create better services with alliances of SKIE(technology start-up company’s SKIEs)
The Best Illustration from the Caserelated to the CoursesThis case is a good illustration of the power of building free networks as a basis forprofitability.It also demonstrates the creativity as the source of intangible value added with humancapital.With infrastructures of Internet technology as externalities, we can innovate product &services which already technologically feasible, into socially acceptable, and to ensurethat it is economically profitable.This case uniquely demonstrate how using Public Figures to make customers devoted andenjoy the services, also power of communication, all in the time of “social unrest” duringthe frenzy phase so that it is a services applied in the perfect time, a time of communitybased and network economies.Innovation in business models & process requires the involvement of customers as users.In addition, It provides the aspect of opportunity spaces for a global positive-sum game.