Social Media Strategy

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Social Media Strategy

  1. 1. Industry Future Trends – Social Presenter: Vishal
  2. 2. Table of ContentsEconomic UpdateIndustry Players – Stock & Brand StatusSocial Web & NetworksDrivers & BenefitsSocial Transformation StrategiesSocial Stack & ProductsAppendixHype Curve Demystified, Top 100 BrandsSocial – Use Cases
  3. 3. EconomicUpdate• PIIGS lead by Greece, It’s a question of when• Default is not the concern, it’s the banks in ??• Greece: CCC, Portugal : BBB-• Italy: AA-, Spain: AA+• Ireland: BBB• India: BBB - ???, China: A+• Gold: Stock vs IR Source: Bmi, Seeking alpha
  4. 4. Economic China’sUpdate - Asia Private Rescued Bailed Out Debt By Govt. Double Dip in US 2008 2008 Could further Fuel This Govt. Rescue Bail Out ??? Debt 2011 2011• Gold is money and nothing else – J.P.Morgan Australias Major Bank• Australian Banks Too Levered and Too Exposed• Housing Debt to GDP Ratio = 75%, H.Mkt Could Collapse• AUD vs China (Commodity Prices)• Stock Market Crash - ?? Source: BMII
  5. 5. Industry Status Check Dotcom & Sept 11 Impact GFC Operating Margin vs Revenue in USD Name Rev/Emp. (USD) 35.00% Accenture 103,587 Infosys; 29.13B IBM 234,024 30.00% Infosys 45,223 TCS, 44.45B 25.00% Wipro Tech 43,508 Operating Margins % Cognizant; 23.65B TCS 41,328 20.00% Cognizant 38,799 15.00% Wipro Tech; 24.19B IBM; 206.02B 10.00% Accenture; 37.6B 5.00% 0.00% -20.00 0.00 20.00 40.00 60.00 80.00 100.00 120.00 Revenue in USDSource: Google Finance, Reuters Size of Bubble Represents Market Cap.
  6. 6. Industry Status Check Price Per Earnings Beta 22.09 1.8 21.08 1.17 18.17 1.09 19.07 0.71 14.05 0.76 17.1510 12 14 16 18 20 22 24 0.6 0.8 1 1.2 1.4 1.6 1.8 2 Accenture IBM Congnizant Infosys Wipro Tech TCS Accenture IBM Congnizant Infosys Wipro Tech Industry Sector Industry Sector P/E (Consulting) 16.44 17.74 Beta (Consulting) 0.76 1.13 P/E 30.01 28.1 Beta 0.84 0.97 • Accenture and IBM are safer and rewarding Source: Google Finance
  7. 7. Industry Status Business Partners IBM Dotcom & Sept 11 Impact CISCO Operating Margin vs Revenue in USD 50.0% 45.0% ORACLE, 141.0 MSFT, 205.5 40.0% 35.0% Infosys; 29.1 30.0% 25.0% SAP, 59.4 20.0% IBM; 206.0 CISCO, 81.7 15.0% 10.0% HP, 44.1 Accenture; 37.6 5.0% 0.0% Size of Bubble -20.00 0.00 20.00 40.00 60.00 80.00 100.00 120.00 140.00 160.00 Represents Market Cap.Source: Google Finance, Reuters
  8. 8. Industry Status Check ROTA MAP Dividend Gives a Good View of Business Strategy Net Profit Margin Accenture Capacity Constraint High IBM Capital Intensive (H), Fixed Apple Rising Stars Cost (H), Entry Barriers (H), Falling Stars Cognizant Product Differentiation Infosys Wipro Tech TCS Microsoft Telstra P/B Competitive Constraint Capital Intensive (L), Fixed Cost (L), Recovering Firms Entry Barriers (L), Low Cost Leadership Cisco Yahoo HP Dogs Low Qantas Low P/E High Asset Turnover Undervalued Name Accenture IBM Infosys Wipro TCS Cognizant HP Telstra Qantas BHPP/B > 2.98 (High) 12.34 8.8 5.12 4.57 4.39 7.14 1.29 3.09 0.57 2.95 P/E > 15 (High) 17.15 14.05 19.07 18.17 21.08 22.09 5.32 11.41 13.82 9.09 Source: Google Finance
  9. 9. Consulting Business or Management Consulting • Value Creation • Proactive, Revenue Side of Business Value Creation Value Creation • Premium Segment, High Margin • Integrative, Cooperation is Required • Project Alliance – Win-Win for Procurement • Reverse Sell, Game Theory Strategic AdvisorsStrategic Buyers Valuation Quantity/Services Price = WTP = WTS Our BATNA is = ? System Is It Win - Win = ? Integrators Sellers ValuationOperational Outsourced Service System Providers Providers Price Implement & Mgmt. Advisory Value Destruction • Distributive Claiming – Win/Lose is Required Technical & Domain Consulting • Single Issues (Price) • Value Destruction • Recent Negotiations – Started, Kashmir Problem • Cost Side of Business, Commodity • Price and RFP Driven Legend Failure Success
  10. 10. Consulting ModelsHigh Nurse PsychotherapistAmount of Client Contact Expert Advisors Have depth Have depth and breadth Provide answers Ask great questions Control Collaborate Provide Expertise Provide Insight Analysis Synthesise Pharmacist Brain SurgeonLow Low Degree of Customisation High Source: Four types of consulting practices (Duboff 2005)
  11. 11. SalesLong Term View Selling is not about relationships Its not because relationships no longer matter rather, what the data suggests is what matters is the nature of the relationships. Challengers win by pushing customers to think differently, using insight to create constructive tension in the sale. Relationship Builders, on the other hand, focus on relieving tension by giving in to the customers every demand. Where Challengers push customers outside their comfort zone, Relationship Builders are focused on being accepted into it. They focus on building strong personal relationships across the customer organization, being likable and generous with their time. The Relationship Builder adopts a service mentality. While the Challenger is focused on customer value, the Relationship Builder is more concerned with convenience. At the end of the day, a conversation with a Relationship Builder is probably professional, even enjoyable, but it isnt as effective because it doesnt ultimately help customers make progress against their goals. This finding — that Challengers win and Relationship Builders lose — is one that sales leaders often find deeply troubling Source: HBR – Challenger Selling
  12. 12. • Accenture is a premium brand (Anderson consulting roots)Industry • Indian outsourcing companies are commodity players as brands are associated with cost arbitrageStatus - Brand Spectrum House of Endorsed Branded Subbrands Housed Brands Brands Master No Shadow Co Same Different Brand as Connect Endorser Drivers Identity Identity Driver Product Product Corporate Corporate Product Corporate Ease of Operation Role of Corporate Brand Infosys TATA Accenture IBM TATA IBM WIPRO Accenture T S Source : Brand Relationship Spectrum by David Aaker & Erich Joachimsthaler
  13. 13. Brand Business or Management Consulting • Value Creation • Proactive, Revenue Side of Business Management • Premium Segment, High Margin Strategic IBM Advisors NewStrategic Virgin Blue Reposition Rebrand Positioning System IntegratorsOperational Outsourced Brand Revitalise Existing Service System Providers Providers Apple, GE Implement & Mgmt. Advisory Existing Identity New Technical & Domain Consulting • Value Destruction • Cost Side of Business, Commodity • Price and RFP Driven Legend Failure Success
  14. 14. Brand PortfolioTelstra Source : Strategy and Architecture, Project Ascent, 2009
  15. 15. FutureConvergence SO Social LO MO Local Mobile Source: TOP MOBILE INTERNET TRENDS , KPCB, 2011
  16. 16. Social Web Perceptual Map Future Collaborative SocialHigh WebWillingness to Share Prohibitive Web PastLow Low Ability to Share High Mass Niche Source: The Social Practice – 2011, Gerd Leonhard, Media Futurist, The Future Agency
  17. 17. Social Networks Evolution 97 2000 2002 2004 2006 Six MiGente Friendster, Flickr, Piczo, Mixi, Windows Live,Degrees.com Six Degree Closes Skyblog Facebook, Twitter, Mychurch Hyes, Orkut 2003 2005 99 2001 Linkedin, Youtube, Live Journal, Cyworld, Myspace, Xanga, Blackplanet Ryze Last.fm, Hi5 Bebo, Ning, Yahoo!360 Source: HBR Facebook Platform 2010
  18. 18. Social Networks Perceptual Map High High Twitter Linkedin Knowledge Updates LinkedinProfessional Twitter FacebookLow Low Facebook Low Personal High Low Personal Updates High
  19. 19. SummaryDrivers• Customer Service – Establish Credibility, Operationally Efficient• Brand Awareness - Establish Credibility• Innovation and Upgrades – Most potential, Simplification and Shorter Development• Customer Relationship (Loyalty & Incentives ) – loyalty via rebates or vouchers, can reduce the operational efficiency and simplify the productBenefitsBefore After• Branded Presence • Branded Presence (revitalisation)• Short Term Relationships • Long Term Relationships• Immediate Conversion • Full Customer Life Cycle• Broadcast Marketing • Conversational Marketing• Limited Metrics • Broad Metrics across the lifecycle• One Funnel • Multiple Funnel across the web Source: Capgemini 4 Trends in Social Media
  20. 20. Value Chain Analysis Advertise or Price Distribution Service & Customer Create Promote Innovation Collaboration (Retail) (Sales) Support Experience (Marketing) Pre Purchase Post Purchase Purchase Customers BuyingAware Consideration Comparison Intent Implement Support Renewal AdvocatePre Purchase Post Purchase
  21. 21. Perceptual MapSocial Footprint • Mavens – Dell, Coca Cola, Starbucks High Selective Mavens Engagement Wall Flowers Butterflies Low One Channel Many Source: Enagegementdb.com
  22. 22. Case Study - DELL5 Years of Experiment & Experience Source: From Campaigns to Community: Building Sustained Community Engagement
  23. 23. Perceptual Map Social Transformation Strategies Customer Engagement • MarketingHigh • Sales • Production Customer Urgent Enterprise Engagement Wide • ServiceSocial Customers Enterprise Wide • All Process Corporate Branding • HR • Corporate Communication Corporate Cost Reduction Branding Cost ReductionLow • Product Development • Production • Procurement Low Competitiveness High • Logistics Source: Capgemini – Social Business Transformation
  24. 24. Strategy Social TransformationFinancial Growth Strategy Productivity StrategyPerspective • Increase Customer Volume (new Segments) • Improve Efficiency & Effectiveness • Increase Share of Customer WalletCustomer Brand Awareness Products & Services Customer RelationshipPerspective • Improved Awareness • Simplification and Innovative • Improved Intimacy • Customer Reach • Upgrades and Automation • Customer Loyalty (Less Churn) • Shorter Development LifecycleInternal Communication GovernancePerspectiveLearning & Culture & People TechnologyGrowth • Roll out Social StackPerspective
  25. 25. Maturity ModelOrganisation Maturity Organisation Uptake Maturity Beginner Intermediate Advanced Financial Perspective Customer Perspective Internal Perspective Learning & Growth Perspective
  26. 26. Maturity ModelTechnical Maturity Technical Maturity Inaction Incubation Integration Platforms Programs Processes
  27. 27. Social StrategyEnablers• Online Analytics (Listen) & Innovation• Social CRM• Social Commerce • Ratings • Reviews • Shopping Lists (Shared) • Recommendations • Referrals • Wish Lists • Social Marketplace Source: Deloitte Touche Tohmatsu 2010. : F-commerce, Leveraging Facebook to develop – Barry Sweeney,2011, Altimeter Group, The 5MS
  28. 28. Social StackView - Top Down Social Networks (Facebook, Twitter, Foursquare, Linkedin) Monitoring & Analytics (Brand Monitoring, Insights) Infrastructure Services Aggregation Publication (Identity Brokers, Aggregators) (Apps, Management) Social Platforms (Community, Collaboration, Blogging, Innovation, Social Commerce ) Source: Altimeter Group, Business Stack
  29. 29. Social Stack Technology - Products Social Layer Products Social Networks • Facebook, Twitter, Foursquare, Linkedin • Over 145 known vendors Monitoring • Radian6, Alterian, Scout Labs, Visible Technologies, CymfonyInsights/Analytics • Crimson Hexagon, Crowd Factory, SAS, Oracle, Sap, Qlikview • Social Inbox Aggregation: Chatter, SocialText, Gist Aggregation • Identity Brokers: Gigya and Janrain • Aggregation and Curation Solutions: Disqus, Echo • Applications in Social Networks: Facebook Apps, LinkedIn and Twitter experiment with developers • Social Media Management Systems: CoTweet, HootSuite, Sprinklr, Objective Marketer, Expion, Publications SpredFast • Sharing Tools: A feature of other systems, also Sharethis and Addthis • Community Platforms: Awareness, Mzinga, Jive, Telligent, Ingage Networks, Kickapps, Pluck, Lithium, Liveworld • Collaboration Platforms: Sharepoint, Jive, Telligent, Atlassian, SocialText, PBWorks, and recent entrant BroadVision’s Clearvale Social Platforms • Enterprise Microblogging Platforms: SocialCast, Yammer, Gist SocialText, Chatter • Blogging Platforms: Wordpress, SixApart, Squarespace, Google’s Blogspot • Innovation Platforms: Salesforce Ideas, UserVoice and open source Pligg • Social Commerce Platforms: Bazaarvoice, Zuberance, Alvendia, ShopIgniter, Wildfire Interactive • Data Layer: Data brokers are emerging (brand monitoring is harvesting data, SSO) and reputation Infrastructure identifiers (Gist, Rapportive, Klout) • Social CRM: Many vendors claim Social CRM, not a single product covers all the use cases • Agency (digital), Agency (specialized) Services • Consulting: 1000s of ‘experts’, Research and Analysis • Advocacy Programs, blogger networks, Peer groups, conferences, and education Source: Altimeter Group, Business Stack
  30. 30. Questions Thank you Source: http://www.flickr.com/photos/yggg/774488265/sizes/o/in/photostream/
  31. 31. Appendix
  32. 32. EconomicUpdate• US has become a services based economy• Service sector is stable compared to manufacturing during recessions Source: Seeking alpha
  33. 33. Org Structure5 ModelsCentralised • One department controls all efforts, Consistent, May not be as authentic, e.g. Ford • 28.8%Distributed (Decentralised) • Organic growth, Authentic, Experimental, Not coordinated, e.g. Sun • 10.8%Coordinated (Hub and Spoke) • Sets rules, best practices, procedures, Spreads widely around the org, Takes time, e.g. Red Cross • 41%Multiple Hub and Spoke • Similar to Coordinated but across multiple brands and units, e.g. HP • 18%Holistic • Each employee is empowered, Unlike Organic, employees are organised, e.g. Zappos, Dell • 1.4% Source: Rise of Social Commerce, Altimeter Group 2010
  34. 34. Social AnalyticsUse Cases - Listen Conversations Facilitate Support • Share of Voice • Issue Resolution Rate • Audience Engagement • Resolution Time • Conversations Reach • Customer Satisfaction Rate Service Customer Marketing Sales Innovation Collaboration & Support Experience Advocacy Innovation • Active Advocates • Topic Trends • Advocate Influence • Sentiment Ratio • Advocacy Impact • Idea Impact Source: Altimeter - Social Marketing Analytics: A New Framework for Measuring Results in Social Media
  35. 35. Social CRMUse Cases 1. Social Customer Insights Service Customer Marketing Sales Innovation Collaboration & Support Experience 2. Social 6. Social Sales 9. Social 12. Innovations 14. 17. Seamless Marketing Insights Support Insights Collaboration Customer Insights Insights Insights Experience 3. Rapid Social 7. Rapid Social 10. Rapid Social 13. 15. Enterprise 18. VIP Marketing Sales Response Response Crowdsourced Collaboration Experience Response R&D 4. Social 8. Proactive 11. Peer-to-Peer 16. Extended Campaign Social Lead Unpaid Armies Collaboration Tracking Generation 5. Social Event Management Source: Altimeter Group, The 5MS
  36. 36. Top 100 BrandsMost Valuable - 2011 Source: 2011 Brndz Top 100 Report
  37. 37. • Social MediaHype Curve • • Cloud Computing MobileEmerging Technologies - 2011 Source: Gartner Hype Curve - 2011
  38. 38. • Cloud ComputingHype CurveCloud Computing - 2011 Source: Gartner Hype Curve - 2011
  39. 39. Hype CurveDemystified Source: Gartner Hype Curve - 2011
  40. 40. RatiosATO vs NPM 2.00 Accenture 1.80 1.60 1.40 Cognizant Asser Turn Over 1.20 HP Apple 1.00 IBM Infosys Wipro Tech 0.80 Qantas Microsoft 0.60 Telstra 0.40 0.20 0.00 0 5 10 15 20 25 30 35 Accenture IBM Infosys Wipro Tech Cognizant HP Telstra Microsoft Apple Qantas Net Profit Margin Source: - Google Finance
  41. 41. Ratios P/E vs P/B Name P/B > 2.98 (High) P/E > 15 (High)Accenture 12.34 17.15 IBM 8.80 14.05 Infosys 5.12 19.07Wipro Tech 4.57 18.17 TCS 4.39 21.08Cognizant 7.14 22.09 HP 1.29 5.32 Telstra 3.09 11.41 Qantas 0.57 13.82 Cisco 1.78 13.60 Microsoft 3.78 9.64 Apple 7.23 15.23 Yahoo 1.51 16.19 BHP 2.95 9.09 Source: - Google Finance

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