Thursday, 11 October 2012          Designing Around People          White Paper          Valtech          120 Aldersgate S...
Designing Around PeopleTABLE OF CONTENTSAbstract ___________________________________________________ 31.   Why Design Arou...
Designing Around PeopleABSTRACTThis whitepaper provides evidence that the internet has entered a third phase in its evolut...
Designing Around People1. WHY DESIGN AROUND PEOPLE?1.1    IntroductionThe internet is being rebuilt around people. This wh...
Designing Around PeopleCertainly there have been some very high profile businesses which have grown hugely by treatingpeop...
Designing Around PeopleA survey of 1,598 company respondents reported the benefits (shown in the diagram below) ofutilisin...
Designing Around PeopleWith respect external facing systems, McKinsey surveyed 1,088 company respondents whoreported the f...
Designing Around PeopleWe are all more familiar with the use of social technologies in customer orientated applications,wh...
Designing Around People                                                Yahoo! built a deep Open Graph integration into its...
Designing Around People                                                                      Fig 5 TripAdvisor’s Facebook ...
Designing Around People         In a world         where we are         increasingly         swamped by         choice, pe...
Designing Around Peopledecide, the make-up of social networks and how we are influenced across social networks and havethe...
Designing Around PeopleIn simple terms the amount of information inthe world is increasing at a vast speed. Yet weonly hav...
Designing Around People2. FACEBOOK VERSUS HYPEThe diagram below shows the familiar Gartner Hype Curve, a graphic represent...
Designing Around PeopleFacebook page. However, it is better to think of Facebook Commerce as being any type ofbusiness use...
Designing Around PeopleMost businesses are not agent based, thus the Oriflame model can’t be translated wholesale toserve ...
Designing Around People                           Germany – 30%                           France – 39%                  ...
Designing Around People3. MONETISING FACEBOOK AS A NEW CHANNELMany brands that have attempted to exploit the Facebook plat...
Designing Around People                         Fig 11 Facebook’s model to grow relationships between consumer and brandIf...
Designing Around Peopleimaginative digital concepts, underpinned by Facebook when you use the concept of “connectingpeople...
Designing Around People       Social relationships – Since social relationships grow over time (many lightweight         ...
Designing Around PeopleAt Valtech we were curious if there was any pattern in sentiment, so we mapped the major spikesto d...
Designing Around People          interaction on their wall and stumble across a brand for the first time.Thus for many amb...
Designing Around PeopleFeatures:     Open Graph        social data        integration     Payment     Scalable     Clo...
Designing Around PeopleREFERENCES      Where Angels Will Tread, The Economist, November 17th 2011       http://www.econom...
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White Paper: "Designing Around People"

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This whitepaper provides evidence that the internet has entered a third phase in its evolution and is currently being rebuilt around people. Significant evolutionary change usually provides opportunities for innovation, both incremental and disruptive.
Whilst people orientated systems are benefiting both applications designed for B2B and B2C users, this whitepaper focuses predominantly on use of applications integrated with Facebook as a business channel. Whilst some companies have seen huge success with their Facebook initiatives, others have stalled. This whitepaper provides evidence and tactics to successfully monetise the Facebook channel.

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White Paper: "Designing Around People"

  1. 1. Thursday, 11 October 2012 Designing Around People White Paper Valtech 120 Aldersgate Street London, EC1A 4JQ United Kingdom www.valtech.co.uk Author: Name: Jonathan Cook Title: Head of New Media jonathan.cook@valtech.co.uk Twitter: @trendshedWe are Valtech. We create value through technology.
  2. 2. Designing Around PeopleTABLE OF CONTENTSAbstract ___________________________________________________ 31. Why Design Around People? __________________________________ 42. Facebook Versus Hype _____________________________________ 143. Monetising Facebook As A New Channel ________________________ 18References ________________________________________________ 25Valtech 120 Aldersgate Street | London, EC1A 4JQ | United Kingdom 2
  3. 3. Designing Around PeopleABSTRACTThis whitepaper provides evidence that the internet has entered a third phase in its evolution andis currently being rebuilt around people. Significant evolutionary change usually providesopportunities for innovation, both incremental and disruptive.Whilst people orientated systems are benefiting both applications designed for B2B and B2Cusers, this whitepaper focuses predominantly on use of applications integrated with Facebook asa business channel. Whilst some companies have seen huge success with their Facebookinitiatives, others have stalled. This whitepaper provides evidence and tactics to successfullymonetise the Facebook channel. Jonathan Cook, October 2012Valtech 120 Aldersgate Street | London, EC1A 4JQ | United Kingdom 3
  4. 4. Designing Around People1. WHY DESIGN AROUND PEOPLE?1.1 IntroductionThe internet is being rebuilt around people. This whitepaper argues that rethinking businessesaround people first, rather than technology or content is the most important focus that firms whouse software can have. Fig 1 Three evolutionary phases of the internetIf we grossly simplify the evolution of the internet, then three broad evolutionary phases emerge.In the early days firms did little more than copy and paste existing print marketing content andpush it on-line.Over time we became more sophisticated, we allowed people to interact with web-sites, tocomment and buy. As the internet evolved we mashed up services to play video and allow peopleto Like or Tweet our content and implemented more advanced features and services. There is now,however, significant evidence that we have entered a 3rd phase in the evolution of the internet, thatapplications are being designed around people as the first priority.In an article in the Economist in November 2011, Ron Conway, often described as one of SiliconValley’s “Super Angels”, gave his view on where significant wealth via the internet will be generatednext. In his opening paragraph Conway stated:“One might think that the “social web” is maturing. In fact, I predict it is only at the beginning. Ibelieve the current and future crop of talented young entrepreneurs will build applicationsenabling deeper connections between users and the world around them—and the evidence will beseen in 2012 in the start-ups that attract our seed-stage investments, with mobile prominent inour sights”Conway’s opinion begs the question, is mobile merely an enabling technology which helps us buildbetter people orientated services connecting users? Is mobile currently popular purely because itsatisfies very human cravings for immediacy, convenience and personal interaction?Advocates for people orientated concepts argue that we have already entered the 3rd phase in theinternet’s evolution and that companies who are rethinking their businesses around people as thefirst priority and relegating technology or content to secondary considerations are reaping thebenefits of innovation.Valtech 120 Aldersgate Street | London, EC1A 4JQ | United Kingdom 4
  5. 5. Designing Around PeopleCertainly there have been some very high profile businesses which have grown hugely by treatingpeople orientated concepts as a distinct business strategy. Countless more companies haveexperienced the benefits of smaller incremental innovation, through taking small tactical steps inbetter connecting people within software systems.Having said that, some firms who have experimented with Facebook as a channel have stalled.They haven’t been able to mirror the success of firms who have experienced run-away growth, norhave they been able to make the Facebook channel relevant to their customers.This whitepaper goes on to explore:  Examples of people orientated applications  Discusses how increased scientific understanding of human beings is underpinning the significant growth of companies with people orientated digital strategies  How to better utilise Facebook as a channel1.2 Examples of People Orientated ApplicationsCompanies are increasingly building people orientated applications. Most of these applications donot represent a revolutionary change in business strategy, instead, these applications tend to beincremental innovations. These applications are successful because they better integrate andconnect people.In December 2010 the respected management consultancy McKinsey released a report detailingstatistical analysis of companies that had engaged in various social business activities, buildingbetter software to power “social business processes”. McKinsey broke their findings down intothree different types of software application: 1. Internal 2. External & Suppliers 3. Customer RelatedValtech 120 Aldersgate Street | London, EC1A 4JQ | United Kingdom 5
  6. 6. Designing Around PeopleA survey of 1,598 company respondents reported the benefits (shown in the diagram below) ofutilising social technologies internally within their businesses, with “increased speed of access toknowledge” being reported as the most significant benefit. Fig 2 Benefits of social technologies in internal facing applicationsA typical example of social technologies utilised with an internal focus are “Social Intranets” whichdrive benefits such increased speed of access to knowledge. Traditional intranets can be quite staleenvironments, a combination of technology and content, where the content begins to decay themoment it is published. Social intranets, however, add people into the mix and inject thenecessary spice to breathe life and utility into an intranet.Within a social intranet, for instance, you can navigate content by what your boss has read, or seewhat experts in your company have been reading, it adds a whole new dimension.A social intranet allows you to not only find the author of a case study, but also see which of yourcolleagues were responsible for delivering individual parts of the service. This means that you caneasily reach out immediately to someone who can answer the very specific question that you mighthave.A social intranet becomes more useful over time, people post and broadcast their expertise onplatforms which come alive because they are populated and more natural. Adding people into themix transforms the leverage of intranets.Valtech 120 Aldersgate Street | London, EC1A 4JQ | United Kingdom 6
  7. 7. Designing Around PeopleWith respect external facing systems, McKinsey surveyed 1,088 company respondents whoreported the following benefits of social technologies: Fig 3 Benefits of social technologies in external facing applicationsTypical social applications with an external focus include collaboration tools such as SharePointand electronic chat products.There are, however, examples of companies taking an even more sophisticated approach tointegrating people within external facing business processes. Teva, a large Canadianpharmaceutical company publicly reported it had reduced its manufacturing cycle by 50%. Tevahas deployed not only the SharePoint collaboration application, but tools such as Strategy-Nets toconnect disparate people across the supply chain who do not work together, but have commoninterests and also an application called Moxie to fine tune this ad-hoc communication across acomplex ad-hoc external networks.This networked innovation has provided Teva with new tools to manage the strategic direction ofits wider supply chain. Of course Teva’s competitors share elements of this wider external supplychain, however, since Teva has created influence over this network it has put itself in a betterposition to compete.Valtech 120 Aldersgate Street | London, EC1A 4JQ | United Kingdom 7
  8. 8. Designing Around PeopleWe are all more familiar with the use of social technologies in customer orientated applications,whether branded Facebook pages or Twitter accounts. Many of us are also increasingly aware ofcompanies who use listening tools to interact with customers mentioning a brand on social mediaplatforms to provide proactive customer service. Other firms are starting to generate significantbusiness intelligence, through listening to customers and interested third parties on social mediaand blogs, often to generate a more realistic understanding of how their company is perceivedexternally. McKinsey surveyed 1,708 company respondents who reported the following benefits ofsocial technologies within business processes focused on suppliers and 3 rd party external purposes: Fig 4 Benefits of social technologies in customer facing applicationsThe prime focus of this whitepaper is the use of Facebook as a channel. There have been some wellpublicised successes, as well as other initiatives which have seemingly dribbled away and failed.At Facebook’s F8 conference in September 2011 several companies stood up and launched newapplications. These companies discussed what they thought would make their services successful.Removing all the marketing froth, each of the companies re-iterated some common themes. Theirapplications were said to be “social by design” and “frictionless” and would allow people“serendipitously” to “stumble” onto content that pleased them. Two months after the F8conference those same companies had achieved some amazing results: The Guardian built an app for Facebook which had been installed by nearly 4 million people, generating an extra million page impressions each day. Half the apps users were 24 and under, a traditionally hard to reach demographic. A social reader app for Facebook which drew more than 3.5 million monthly active users.Valtech 120 Aldersgate Street | London, EC1A 4JQ | United Kingdom 8
  9. 9. Designing Around People Yahoo! built a deep Open Graph integration into its site and more than 10 million people chose to turn on the social news experience. A 600% increase in traffic coming from Facebook, and those people were reading more articles than an average user. More than a million users connected their Facebook accounts to the new social experience on the Independent’s website. Many of the most shared and most viewed stories were from the late 1990s, as a result of increased social virality. Spotify had added 4 million users after launching its Facebook integration at the F8 conference 8 weeks earlier.Whilst each of these Facebook concepts examples show impressive growth, they all fundamentallyshare broadly the same idea, that when people are logged into Facebook they can see what theirfriends are reading or listening to giving them the opportunity to explore that content too.TripAdvisor, on the other hand, are a great example of a successful Facebook concept which takes adifferent approach.TripAdvisor’s traditional content and technology driven on-line business was very successful andprovided a popular restaurant and pub review service for users. Overtime, however, TripAdvisorexperienced trust issues. Since it was possible to write reviews with anonymous “internet handles”there were complaints that venues had written false glowing reviews to promote themselves.Equally some businesses complained that their competitors had written fake reviews whichseriously impacted their business.In December 2010TripAdvisor launched adeep integration oftheir service withFacebook. Overnighttrust issues evaporatedwhen users of theFacebook version of theservice increasingly sawreviews which wereattributed directly toreal people’s Facebookprofiles.The Facebookintegration providedsignificant additionalbenefits to users.Consider the adjacentscreen shot of theFacebook integration.Valtech 120 Aldersgate Street | London, EC1A 4JQ | United Kingdom 9
  10. 10. Designing Around People Fig 5 TripAdvisor’s Facebook integrationWhen compared to the compared to the traditional TripAdvisor service, the Facebook integrationprovides the following additional benefits:  Personalised navigation - It is now possible to navigate by your own friends activity. This is a far more personal and interesting navigation experience than standard web- search experience delivers.  Judgement – We all know friends who are tight fisted. If we see our cost conscious friend has given a positive recommendation or “liked” a venue we can be fairly sure that this venue represents value for money.  Expert versus idiot – We know friends who we might consider to be expert on a subject. Indeed we also have friends whose opinion we most certainly wouldn’t trust, for instance, someone who is an appalling cook. When we can see how people we know have been interacting with a web-site, it enables us to take our own knowledge of those individuals to form a better judgement. We know how much we might trust a friends recommendation, since we know exactly how much we value their opinion on different subjects. Using our friends activity in this way also helps us to avoid things we are likely to want to avoid, which is just as valuable as finding something new shiny and exciting.  The real world – unlike anonymous reviews, we can pick up the phone to people we know and get a whole bunch of information we’d never glean from a traditional web-site. Our friends can provide us with the benefit of their experience, for instance “you really should visit that pub on a Sunday because their roast dinner is brilliant”. No amount of expensive software coding could mimic that sort of useful interaction. Putting people in the mix transforms a web-site.Within a year of launch 85 million people had tried TripAdvisor’s Facebook integration and whencompared to the traditional web-site TripAdvisor measured that Facebook users were 27% moreengaged and twice as likely to contribute.Valtech 120 Aldersgate Street | London, EC1A 4JQ | United Kingdom 10
  11. 11. Designing Around People In a world where we are increasingly swamped by choice, people orientated applications are just better. For instance when faced with hundreds of TV channels to browse, it is a better experience to be able to browse through what your friends have watched, or to flick through the films that your friends have flagged for you.Fig 6 People orientated experiences will become more common place because they are just better1.3 The Power Of PeopleThe process of designing applications and digital marketing strategies around people as the firstpriority is sometimes known as “Social By Design”.Companies that live and breathe the concepts of social by design, talk of building applicationswhich make it easy for people serendipitously to stumble upon new content or products that theyare attracted to frictionlessly.This short-hand way of speaking, obscures the deep lessons that these firms have learnt. Inessence, these firms have understood much of the scientific research into human beings and thenworked out how to beneficially exploit this knowledge.Lessons have been drawn from numerous disciplines such as anthropology, psychology andsociology. Companies have been taking research within fields such as how the brain works, how weValtech 120 Aldersgate Street | London, EC1A 4JQ | United Kingdom 11
  12. 12. Designing Around Peopledecide, the make-up of social networks and how we are influenced across social networks and havethen translated this knowledge to determine how to build better applications and design superiordigital marketing strategies.Valtech’s previous Whitepaper titled “Simplifying Facebook Commerce Part 2 V1.1” provides morecommentary regarding how the lessons from increased scientific understanding of human beings isbeing exploited, however, the most important points to understand are that we rely on other peopleto both find new products or services we might be interested in and also to help us to decide toreject or approve options.Research shows that we tend tohave four or five people who we arevery close to and with whom weinteract with several times a week.We both subconsciously and overtlyrely on these close relationships tohelp us make decisions.For instance just throughmentioning the brand of a car innormal conversation, wesubconsciously observe how ourclose friends react and this helps usmake a judgement of our owntowards that make or model Fig 7 Scientists have mapped typical human networksAs per the diagram above scientists have mapped out an understanding of human relationshipsand not just the number and intensity of relationships, but also how the way we interact withpeople changes the further they get from our core social group of four or five people.Since the core group of people tend to be quite similar to us, we have evolved a subconsciousstrategy of scanning people two steps removed from us in order to ensure that we stumble acrossnew ideas, products, events, services or shows that might interest us.Now consider our reliance on other people to both help us make decisions and to find new thingswe might be interested in, especially when you think of how we seem to live in a world where weare bombarded with more and more information.In fact this trend for an ever increasing onslaught of information has been quantified somewhat, byEric Schmidt the CEO of Google when he stated:“Between the birth of the world and 2003, there were five exabytes of information created. We[now] create five exabytes every two days. See why it’s so painful to operate in informationmarkets?”Valtech 120 Aldersgate Street | London, EC1A 4JQ | United Kingdom 12
  13. 13. Designing Around PeopleIn simple terms the amount of information inthe world is increasing at a vast speed. Yet weonly have one brain. Our close friends help usto make decisions and our wider network offriends helps us to stumble on new things wemight be interested in. Those companies whichunderstand our natural strategy to cope with anonslaught of information and design softwareapplications which leverage this very humancapability will build better, more useable, moreuseful and ultimately more successfulapplications. Fig 8 Why rely on one brain when you can rely on many?When you compare the vast speed which technology changes, to the comparatively slow speed thathuman beings have evolved there are two simple points to take note of:  Those companies that try to bend people around technology will fail  Those companies that bend technology around people will succeedThis whitepaper has only touched on a fraction of the research into human beings which is beingexploited to improve new software concepts. At minimum companies should take note of the keytrends in building better software applications around people. As the quantity of information andchoice in the world continues to increase, it is the companies that provide a more useable humanexperience that will be most attractive to users.Valtech 120 Aldersgate Street | London, EC1A 4JQ | United Kingdom 13
  14. 14. Designing Around People2. FACEBOOK VERSUS HYPEThe diagram below shows the familiar Gartner Hype Curve, a graphic representation of thematurity, adoption and social application of specific technologies. Fig 9 Gartner hype curveOf course any one of the technologies in Gartner’s diagram could be blended together to buildoverall digital concepts which work better for people than is being achieved by existing services.The central thrust of this whitepaper is that individual technologies should be ignored in the firstinstance, since it is more important to think about people and design business concepts aroundthem and then to consider technology and content considerations latterly.The secondary purpose of this whitepaper is to consider Facebook as a channel and how companiescan better use it and better bend it around customers. Specifically we explore how to approachnew application concepts which are under-pinned by Facebook.For the last couple of years the hype around Facebook has been overwhelming and the promise ofthe platform has drawn companies in. It is fair to say that the concept of “Facebook Commerce” iscurrently in the descendancy, towards the “trough of disillusionment” on Gartner’s model above.Whilst many companies have experienced run-away success, others have tried to harness theplatform and not yet been able to generate similar success.Many of those companies which have struggled have seen the allure of the phrase “FacebookCommerce” as the green light to replicate traditional eCommerce websites, although within aValtech 120 Aldersgate Street | London, EC1A 4JQ | United Kingdom 14
  15. 15. Designing Around PeopleFacebook page. However, it is better to think of Facebook Commerce as being any type ofbusiness use of the Facebook channel, rather than an as a specific “eCommerce” opportunity.Having said that, there are successful shop applications which have been implemented inFacebook. Consider the Oriflame example built by Valtech. On the face of things the functionalityof the Oriflame application below looks very much like a traditional eCommerce store, with theability to navigate products and then click buy: Fig 10 Swedish launch of Oriflame Facebook Commerce storeWhat sets the Oriflame Facebook store apart from a traditional eCommerce site, is that it wasdesigned around people. Oriflame run an agent based sales business model with 3 millionindependent agents operating around the world. The Facebook concept for Oriflame was designedaround people, it was designed so that each individual sales agent could have their very ownrepresentation of the Oriflame Facebook store. The concept thus connects each sales agent withtheir friends and also their friends, friends via Facebook.The primary consideration for Oriflame was how to better connect individual sales agents withpeople in their local area to improve sales? Facebook was selected as the secondary choice as besttechnology platform to deliver on this ambition.Valtech 120 Aldersgate Street | London, EC1A 4JQ | United Kingdom 15
  16. 16. Designing Around PeopleMost businesses are not agent based, thus the Oriflame model can’t be translated wholesale toserve other companies, yet there remain strong reasons to consider utilising Facebook to underpindigital concepts as discussed in the table below: Aspect Comment Scale In October 2012 Facebook announced that there were now 1 billion users of the platform. We sometimes get dulled by large sounding numbers, but this is a truly massive user base. Stickiness Neilsen reported data that shows that people spend far more time on Facebook than any other digital platform. Measured in billions of user minutes for one month in May 2011 in the United States :  Facebook – 53.5  Yahoo! – 17.2  Google – 12.5  AOL – 11.4  MSN – 9.4  YouTube – 9.1  eBay – 4.5  EA – 4.3  Apple - 4.3  Microsoft – 3.4 Figures for the UK show data for less companies, but record the same effect, that people spend more time on Facebook than any other digital platform and also about three times more time than the next closest platform.Penetration More than 50% of the British population are Facebook users. More than 50% of the population of countries as diverse as the US, Singapore, Sweden, Taiwan and Canada are also Facebook users. In short if Facebook is sticky and it is also the place where people spend their time and half the population of the country are users, then if nothing it makes Facebook a contender to underpin many digital concepts. However, it is important to consider where your key markets are located, since not all countries have such high percentage usage amongst the population, for instance:  Russia – 5%Valtech 120 Aldersgate Street | London, EC1A 4JQ | United Kingdom 16
  17. 17. Designing Around People  Germany – 30%  France – 39%  Italy – 39%  China – 0.04%  India – 5% Word-of- On average people on Facebook have 130 friends. Friends activity on Facebook acts mouth as a pointer to help people stumble across things they didn’t know about previously and might be interested in. Any activity on Facebook such as a “like” or a wall update that a friend has read an article or even purchased an item acts as a positive word of mouth recommendation towards a brand. Connects People tend to be connected in groups together with other similar people, for Groups instance, groups which are defined by similar interests, of a similar social demographic or groups of people who live in the same area. This connectivity give brands the opportunity to target and market themselves towards specific groups with a strong level of precision and social influence across those groups.Given these significant strengths, there is every chance that Facebook as a channel for brandedapplications will emerge from the trough of disillusionment on Gartner’s Hype Curve model andthat both firms and Facebook users themselves will value interaction with brands on the Facebookchannel. Afterall, in the real world, we tend to like local shops who recognise us as good customersand seem to treat us especially well because they know us. The key issue that brands need toaddress is how to make this interaction appear natural and not forced.Furthermore the wider Facebook ecosystem will continue to evolve and as firms build applicationswhich hook into the platform, this will spark additional opportunities for innovation and newpossibilities. Every successful application which plugs into the Facebook ecosystem grows thestrength of the network. Thus rather like plugging into a socket to source electricity, brands mightconsider Facebook a compelling platform to plug into in order to tap a ready built social powersource and network.Valtech 120 Aldersgate Street | London, EC1A 4JQ | United Kingdom 17
  18. 18. Designing Around People3. MONETISING FACEBOOK AS A NEW CHANNELMany brands that have attempted to exploit the Facebook platform have attempted to re-build atraditional eCommerce store directly within Facebook and then have quietly taken them downagain. You have to ask yourself, what benefit there is for consumers in merely replicating what isalready available on traditional web-sites within a Facebook page?Whilst it is an obvious point to suggest that brands need to consider that Facebook is a socialplatform, there is certainly benefit in examining how social relationships form.If you think about your closest friends, you tend to have strong trust in them, you have numerousshared experiences, you will feel more comfortable in telling them something personal and you arelikely to also be comfortable behaving in a more extrovert way around them than you would astranger. Now this level of trust and understanding didn’t happen overnight. Even your closefriend was once unknown to you, but over numerous conversations over a long period you haveformed a close bond.The way that we build trust in a brand is very similar to the way we build personal friendships.Gradually over time, through numerous points of exposure, either through advertising or byutilising a brands products or services, we move from zero knowledge to trusting and favouring abrand with our custom. We may even reach a point where strongly favour a brand and closelyidentify ourselves with it, almost as we were a fan of the brand.The lesson to learn is that brands can’t expect to suddenly “park their tank” on a Facebook pageand expect consumers to appreciate this. Facebook is a social platform and social relationshipswith both friends and brands are something that need to grow over time. Facebook themselvesarticulate this viewpoint with the short-hand phrase “many lightweight interactions over time” andsuggest that for brands to be successful on Facebook they need to generate many lightweightinteractions over time in order to build trust and familiarity within the Facebook environment.The diagram in figure 11 below is borrowed from Paul Adams, one of Facebook’s global productmanagers, who uses it to explain how Facebook’s own products are designed with a flow ofinteraction which increases to suit the depth and intensity of a growing relationship i.e. Advertisingproducts are considered the entry level product and then as a relationship grows, that a brandedFacebook Pages provides the next-step product which is suited to serve a maturing relationshipbetween a brand a consumer.Valtech 120 Aldersgate Street | London, EC1A 4JQ | United Kingdom 18
  19. 19. Designing Around People Fig 11 Facebook’s model to grow relationships between consumer and brandIf you consider Facebook application concepts such as TripAdvisor or Oriflame, then these wouldfit on the diagram above in the “time to get heavy” phase of the diagram above:  TripAdvisor – existing users of the service were invited to login via Facebook from the traditional version of the web-site. Thus TripAdvisor had built a relationship with people over time and they trusted the brand sufficiently to log-in via Facebook. TripAdvisor were able to provide immediate value to users of the Facebook version, since it mapped the locations people had travelled around the world and gave a new navigation option (to navigate via friends rather than just traditional search).  Oriflame – Many Oriflame agents had Facebook accounts. By adding a store to their own homepage, each agent was merely presenting a store to people who they had already built a relationship over time. Through stimulating conversation, purchases, comments and “likes”, Oriflame agents were then able to ensure that friends of friends saw this positive “word of mouth” message spreading. Once again Facebook gave Oriflame customers something which the traditional sales model couldn’t provide (product parties and door-to-door sales). The Facebook solution gave a platform to chat about products without waiting for a sales event, it also gave consumers the ability to purchase without having to wait to be contacted by the sales agent.3.1 Think Big but Start SmallIn this whitepaper we have indicated that designing around people is a catalyst for bothincremental as well as disruptive (radical) innovation. It is relatively easy to come up withValtech 120 Aldersgate Street | London, EC1A 4JQ | United Kingdom 19
  20. 20. Designing Around Peopleimaginative digital concepts, underpinned by Facebook when you use the concept of “connectingpeople” as lens through which to view innovation . Fig 12 Using people as an innovation lensAs per the diagram above, it is the radical more disruptive concepts which have the potential togenerate the greatest value. Whilst we encourage people to think big and bring to market moreinnovative concepts, we would also recommend starting small for the following reasons:  Good practice – best practice development is founded on building the minimum marketable feature and releasing something, however small, which takes a viable and useful step towards implementing a more ambitious vision. Proving the approach and gaining feedback from the real world is a valuable tool to building what the market actually values.  New Media – Facebook is a new media. It will take time to understand how to use it properly. When telephones were first marketed, people thought it would be a broadcast device to transmit audio from concerts and church sermons to people at home. Brands should be prepared to listen, learn and adapt to customers in order to understand how users relate to Facebook applications. Given it is also possible to target products to people biased in favour of their own social preferences, it will also take some practice in order to understand how to understand how to profile customer segments and define the social triggers that activate prioritisation.Valtech 120 Aldersgate Street | London, EC1A 4JQ | United Kingdom 20
  21. 21. Designing Around People  Social relationships – Since social relationships grow over time (many lightweight interactions over time) there is no harm in starting small. In fact there is benefit in starting small and lightweight rather than trying to launch an “all singing, all dancing” feature rich application. Why not start small and start building this relationship today, rather than wait for an impressive application to be built?  Time To Market – An ambitious idea will take time and effort to plan and budget. Starting small enables brands to generate real life knowledge that either rapidly proves or disproves a more ambitious business case, without incurring significant expense.3.2 Minimum Marketable FeatureValtech has been involved in helping customers conceive imaginative and ambitious digitalapplication concepts underpinned by Facebook. When looking for the smallest meaningful nextstep to take in order to proceed with a more ambitious plan, we have found that “popping up” abranded application around a specific event such as Christmas, Valtentines day or the Springseason and then popping the application down again and taking stock of what has been learnt is agood initial starting step.The inspiration behind this pop-up approach was based on our analysis of data within Facebook.As a research and development project Facebook had been measuring and recording positive andnegative sentiment amongst Facebook users by country over time. Within a week of Valtechpointing out the value of this data Facebook removed searchable access their sentiment data(sorry!), however, we can summarise our findings. Firstly the diagram below shows a screen grabfrom Facebook’s sentiment analysis tool, measuring sentiment amongst Facebook users in the UKduring 2011 and 2010: Fig 13 Sentiment analysis amongst UK Facebook users 2010/ 2011Valtech 120 Aldersgate Street | London, EC1A 4JQ | United Kingdom 21
  22. 22. Designing Around PeopleAt Valtech we were curious if there was any pattern in sentiment, so we mapped the major spikesto dates and found the following: Event CommentNumber 1 Christmas Eve – December 24th 2009 – positive sentiment spike 2 New Years Eve – December 31st 2009 – positive sentiment spike 3 Valentines Day – February 14th 2010 – positive sentiment spike 4 Mothering Sunday – March 14th 2010 – positive sentiment spike 5 Grand National horse race – April 10th 2010 – positive sentiment spike 6 Heatwave in The UK - May 23rd 2010 – positive sentiment spike 7 Father’s Day – June 20th 2010 – positive sentiment spike 8 Aftermath of student riots - December 10th 2010 – negative sentiment spike 9 Christmas Eve – December 24th 2010 – positive sentiment spike 10 New Years Eve – December 31st 2010 – positive sentiment spike 11 Valentine’s Day – February 14th 2011 – positive sentiment spike 12 Mothering Sunday – April 3rd 2011 – positive sentiment spike 13 Grand National horse race – April 9th 2011 – positive sentiment spike 14 Father’s Day – June 19th 2011 – positive sentiment spike 15 UK Riots - August 9th 2011 – negative sentiment spikeWe concluded that this data revealed the following conclusions:  Predictable – that there were predictable dates which marketeers could plan around, when they know that sentiment will be both high and positive.  Activity – that spikes in predictable positive sentiment correlate to peak periods of use of Facebook as a platform. (Positive sentiment spikes correlate to a greater number of photos being uploaded by users and thus represent high traffic events on Facebook).  Probability of purchase – when people are feeling more positive, there is also an increased chance that they will buy or react favourably towards a brand. There is a greater chance that people might “like”, comment or buy during a positive sentiment spike, which increases the number of friends of friends who might see positive “word of mouth”Valtech 120 Aldersgate Street | London, EC1A 4JQ | United Kingdom 22
  23. 23. Designing Around People interaction on their wall and stumble across a brand for the first time.Thus for many ambitious digital concepts, we have defined the smallest minimum marketable anduseful step to take as “popping-up” an application for a short period around an event such asChristmas such as a:  Social catalogue  Event based offer  Invitation / Check-in to a physical event  Social pop-up-shopEach of these being small steps which can be popped up, presented to consumers in a mannerwhich make sense as adding value in a social platform and which can be taken down gracefully andthe knowledge from the exercise being utilised as inputs to developing a more ambitious concept.3.3 ProductWhilstbrands can set-up free pages on Facebook these are quite limited, whereas bespokedevelopment of dedicated applications is expensive.In order to solve this issue Valtech has created a product to enable our customers to pop-upconcepts quickly and easily, hosted in the cloud in order to minimise impact on existinginfrastructure and teams.The single most useful feature of this product is that you can profile customer segments within theplatform and since it is integrated to Facebook’s Open Graph data, it is possible for marketeers tobegin to experiment with understanding how to prioritise products towards people based on theirown social preferences. For instance within Facebook you can use data such as age and gender,together with preferences, for instance, such as they “like” music, football and David Beckham totarget and prioritise the visibility of Product A over Product B.Valtech 120 Aldersgate Street | London, EC1A 4JQ | United Kingdom 23
  24. 24. Designing Around PeopleFeatures:  Open Graph social data integration  Payment  Scalable  Cloud based  Multi- channel  Low cost entry Fig 14 Valtech’s customisable Facebook pop-up shop productThis product provides a simple way for our clients to experiment with understanding how to profiletheir customer segments, and determine which social triggers are strong mechanisms to choose inorder to:  Better profile customer segment  Better target customers segments  Present more attractive offers to customers  Increase sales END OF DOCUMENTValtech 120 Aldersgate Street | London, EC1A 4JQ | United Kingdom 24
  25. 25. Designing Around PeopleREFERENCES  Where Angels Will Tread, The Economist, November 17th 2011 http://www.economist.com/node/21537967  Social Business By Design, Dion Hinchcliffe and Peter Kim, February 2012  Facebook, Developers Blog, How-to: Improve the Experience for Returning Users, May 2012 https://developers.facebook.com/blog/post/2012/05/08/how-to--improve-the- experience-for-returning-users/  How Many Friends Does One Person Need? – Dunbar’s Number and other evolutionary quirks, Robin Dunbar, February 2010  Everything Is Obvious *Once You Know The Answer, Duncan Watts, July 2011  Grouped – how small groups of friends are the key to influence on the social web, Paul Adams, November 2011  Gartner Hype Cycle, Wired, October 2012 http://www.wired.com/beyond_the_beyond/2012/10/gartner-hype-cycle-2012/  The Social Media Report, Nielsen, September 2011 http://blog.nielsen.com/nielsenwire/social/  Social Bakers, October 2012, http://www.socialbakers.com/facebook-statistics/  Cultural Events Marketing and F-Commerce, Jonathan Cook, August 2011, http://trendshed.com/2011/08/30/cultural-events-marketing-and-f-commerce/Valtech 120 Aldersgate Street | London, EC1A 4JQ | United Kingdom 25

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