Social media for business professionals. Why bother?
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The document discusses how businesses can leverage social media for competitive advantage. It outlines three strategies - cost leadership, differentiation, and focus - and how social media can support each one. Specific benefits mentioned include lowering costs, building brands, targeting niche markets, and monitoring customer feedback. The document provides advice from Starbucks on responding to online issues and concludes with steps businesses can take to develop their social media capabilities.
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Social media for business professionals. Why bother?
- 1. Social Media for Business Professionals Why Bother?
- 2. Owen Cutajar • 20 years experience in technology • MBA from Heriott-Watt • On-Island since 1999 • Day job: Enterprise IT • Passion for blogging/Social Media • Cofounded IOM Social Media Club • Twitter: @OwenC • www.facebook.com/OwenCutajar • Email: owen@cutajar.net Wednesday, 01 May 2013 Social Media for Business Professionals 2
- 3. Overview About Competitive Advantage •Different Flavours Technology Impact •Waves of technology Social Media Integration in Business Q&A Wednesday, 01 May 2013 Social Media for Business Professionals 3
- 4. Sustainable Competitive Advantage Cost Leadership Differentiation Focus (Low Cost) Focus (Differentiation) UniquenessCost Larger Market Smaller Market Wednesday, 01 May 2013 Social Media for Business Professionals 4
- 5. Cost Leadership • Being the cheapest option on the market through: – Improving processes – Economies of scale – Access to raw materials – Vertical Integration – Access to capital – High level of expertise – Efficient distribution channels Wednesday, 01 May 2013 Social Media for Business Professionals 5
- 6. Differentiation Strategy • Unique product or service • Access to cutting-edge research • Highly skilled and creative development team • Corporate reputation for quality • Strong sales team • Leaders in innovation Wednesday, 01 May 2013 Social Media for Business Professionals 6
- 7. Focus Strategy • Concentration on a narrow segment • Within segment implements cost advantage or differentiation • High degree of customer loyalty • Customers ready to pay more • Multiple niche strategy Wednesday, 01 May 2013 Social Media for Business Professionals 7
- 8. The Impact of Technology • Multitude of benefits including: – Automation – Management of information – Reductions in operational costs – Monitoring and Reporting – Communication networks with suppliers and partners – Interaction with customers Wednesday, 01 May 2013 Social Media for Business Professionals 8
- 9. Definitions of Social Media? Social media are media for social interaction, using highly accessible and scalable publishing techniques. Social media use web-based technologies to transform and broadcast media monologues into social media dialogues. Social media can take many different forms, including Internet forums, weblogs, social blogs, microblogging, wikis, podcasts, pictures, video, rating and social bookmarking. (Wikipedia) My definition: Social Media consist of any form of media or content that can be created, shared and accessed by anyone. It forms a permanent conversation that businesses can choose to become part of, or ignore at their peril. Wednesday, 01 May 2013 Social Media for Business Professionals 9
- 10. Social Media and Cost Leadership • Low advertising and PR costs • Reduced cost of creating content & conversations • Lower customer services cost • Lowering cost of product design by listening to the right channels Wednesday, 01 May 2013 Social Media for Business Professionals 10
- 11. Social Media & Differentiation • Effective way to build a brand “voice” • Ability to accurately target and dialogue with potential customers • Tap into passionate fan base • Analytics on audience • Creation of viral content Wednesday, 01 May 2013 Social Media for Business Professionals 11
- 12. Social Media & Niche Markets • Provides global reach • The rise of micro-targeting • Creates viable niches which wouldn’t otherwise exist • Creating communities • Minimal cost Wednesday, 01 May 2013 Social Media for Business Professionals 12
- 13. Practical advice from Starbucks Whenever Starbucks identifies a problem or opportunity, it responds in one or more of the following four ways: • Amplify: As Starbucks identifies trends or something its customers seem to like, Starbucks amplifies whatever it is to help bring it to the surface and increase visibility and enthusiasm. • Context-ify: Back in 2004, an e-mail was going around claiming that Starbucks had refused to supply free product to GIs serving in Iraq. Many people believed it, got pretty angry and forwarded the message to all their friends. Unfortunately, the message was false. By context-ifying the message, Starbucks revealed the other side of the story--check it out yourself on snopes.com. • Change: If it's broke, fix it. MyStarbucksIdea.com actively solicits constructive criticism and ideas to improve its business and gather suggestions for products, services and projects. • Ignore: You gotta respond? No, sometimes it's best to ignore, especially when it appears you're being provoked into a response or fight. It's easier to ignore things when you can put them into their proper context; for example, if your primary critics are a Facebook Group with 82 members out of the 400 million-plus Facebook accounts, you have little to worry about. Wednesday, 01 May 2013 Social Media for Business Professionals 13
- 14. A question of survival About Online Markets: “Networked markets are beginning to self- organize faster than the companies that have traditionally served them. Thanks to the web, markets are becoming better informed, smarter, and more demanding of qualities missing from most business organizations.” • Source: The Cluetrain Manifesto: The End of Business as Usual (Rick Levine, Christopher Locke, Doc Seals, David Weinberger) Wednesday, 01 May 2013 Social Media for Business Professionals 14
- 15. Social Media - Specific advantages • Attracting Talent • Real-time Response • Brand Monitoring • Expert Reputation • Engaging Customers • Marketing & Advertising Wednesday, 01 May 2013 Social Media for Business Professionals 15
- 16. Creating Social Media Capability 1. Monitor the social web for discussions about your brand and industry. 2. Understand your objectives for using social media 3. Develop a social media strategy by prioritising your objectives and applying your learning 4. Assess and mitigate your risks (include legal/insurance/compliance champions) 5. Adopt appropriate policies and guidelines 6. Set up interdepartmental workflows for social media collaboration 7. Educate your staff and volunteers Wednesday, 01 May 2013 Social Media for Business Professionals 16
- 17. Questions? Wednesday, 01 May 2013 Social Media for Business Professionals 17
- 18. Contact • Where to find me – Email: ocutajar@intelligence.co.im – Twitter: @owenc – Facebook/LinkedIn: Search for “Owen Cutajar” Wednesday, 01 May 2013 Social Media for Business Professionals 18