Guest lecture by Professor Jari Salo from Aalto University, in Turku School of Economics, on value creation and capture with digital services

1. Value creation and capture with digital
services
Jari Salo
Professor of Marketing
Editor of Journal of Digital Marketing
Aalto University
Aalto School of Economics
&
Professor of Marketing
Head of Department of Marketing
Oulu Business School
Digital services jari.salo@aalto.fi

2. Agenda
Evolution of e-services
User generated content phenomenon and e-services
Illustrative case example : Game services

3. Some basic definitions
Electronic services: Digital service delivery to citizens, organizations
(profit/non-profit), cities, governments etc and of course consumers
Mobile services: A core value element in mobile services is that they can be
accessed and used anytime and anywhere, which enables people to
communicate or to access information at any location, any time and any
situation (De Reuver, 2008)
Digital Marketing: Aims at creating, demonstrating, documenting,
communicating and delivering value in digitized way to customers (B2C
and B2B) and for managing customer relationships in ways that enhance
digital joint value creation of customers, organizations and stakeholders
(Journal of Digital Marketing)

5. Traditional Service Industries
• Digitization substantially reduces cost
• Bank and brokerage houses
– possible digitization of the entire process
• Travel industry
– viewing an online video clip or seeing photos of a hotel
• Other markets changed by digitization
– Job markets
– Real estate business!
– Stock exchange
– Auctions
– Teaching
– Taxes … list goes on…

6. Services provided in the travel and
tourism industry
Information and Pictures/videos of
booking of airlines, major attractions
hotels, cars, and even
Information about
golf courses
entertainment and ticket
Fare comparisons purchasing
360 degree Providing maps
video tours of Tips provided by people
top destinations that experienced certain
Digital Travel situations (like a visa
Converting 200
magazines problem)
currencies

7. Services provided in the travel and
tourism industry
Fare tracker (free
Frequent flier deals e-mail, SMS alerts
Special Restaurant reviews
discount on low fares)
information Current status Major international
of flights
Chat rooms, bulletin
(real time) news Special
boards & click to
Travel news Worldwide business interest
chat
Shopping for travel and places locator vacations
Bed and breakfast
accessories and books recommendations E-mail to
Driving directions intermediary
Experts’ options
in the EU, US… Weather
watch

8. Services provided in the travel and
tourism industry
• Delta Air Lines has launched The Delta Ticket
Window, a Facebook application that lets
members find, book and share flights via the “Book
a Trip” tab on the airline’s Facebook Page.
• The application was built to keep the user on
Delta’s Facebook Page for the duration of the
booking process, as well as give them the
opportunity to share their booked flight with friends.

9. Services provided in the travel and
tourism industry
• Delta’s Ticket Window, powered by Alvenda, is the first to isolate the
entire booking process inside Facebook.
• European budget airline easyJet began experimenting with selling
flights on Facebook earlier in the year, but users are redirected to
easyJet’s website to book their flight.
• Delta Ticket Window will evolve outside of Facebook and become
integrated into banner ads too.
• Delta Ticket Window is likely to get heavy traction from Facebook
users curious about the application (it already appears to be having a
bit of trouble managing the load). Once the newness of the application
fades, it should be interesting to see if would-be travelers find the
service relevant to their lifestyles.

10. UGC: From broadcasters to audience driven
content (Turban et al)
10

11. UGC: Digital marketing landscape (Turban et al.
11

12. Digital marketing landscape
• User generated content (UGC)
• Places to share content and publish your own content
– CNN (iReport)
– Youtube - Vimeo
– Flickr (photo management and sharing)
– Helsingin Sanomat (send a picture)
– Creating a blog (see e.g. blogs.com)
– Twitter
– Slideshare (consulting, teaching – demonstrating experience)
– Google stuff (…)
12

13. Digital marketing landscape
13

14. Digital marketing landscape
Fazer, Tutti Frutti campaign
14

15. Digital marketing landscape
15

16. Digital marketing landscape
16

17. Twitter: short message service
Gosalves, Antone: “Dell Makes $3 Million for
Twitter-related Sales”, InformationWeek 12
Jun 2009
@delloutlet=600.000 followers
17

18. Digital marketing landscape
18

19. Digital marketing landscape
• Teaching
• Further education
• Tele, satellite, and
video broadcastings
19

20. Trust in online markets (Salo & Karjaluoto 2007)

21. Google AdSense
• In the AdSense service internet website operators and owners (like
bloggers with traffic) can gain fees from Google if they put banner to
their website.
• In Adsense the advertiser gets more relevant content for the ad
which makes the ad more relevant to the website.
• For example, site that deals with new energy sources is more
suitable for wind power company ads than showing that ad on forest
industry specific portals.
21

22. Google AdSense
Salo 22

23. VTT 2007 physical
browsing project
Digital Marketing - Salo 23

24. Game industry

25. Rovio – Angry Birds
• Angry Birds plot: Birds are angry for green Pigs because
they stole eggs - revenge
• Many different versions i.e. levels
• CNET 10 best iPhone apps
• Most downloaded iPhone game in the world
• 8 million downloads in October 3, 2010
• Today 350 million downloads
• Price: 79 cents
• Established by Aalto students
(School of Science and Technology)
25

26. Digital Chocolate
26

27. Farmind
http://www.farmind.com/games
Presentation name and author -
27
21/09/2011

28. Finnish game industry
• Kajaani area start ups (3D and other games)
• Hiit game research
• Oulu – Game research center
• Oulu game developers (Ludocraft and others)

29. (Mobile) game ecosystem
Salo 2008 29

30. Q&A
Jari Salo @aalto.fi
30