Social Media

In a [business] perspectiveAug. 2010

Social Media

”Guru”

1#There is no such thing as a

#2You : “We ought to look into this new phenomena called:

The Boss : “Is this going to cut down on employee productivity and does this mean employees are going to be checking their personal Facebook pages all day?”

You : “eh… we… ah… No….”

Social Media

Try another approach…

Relational Business

The Boss : “And how does it affect my bottom line and how to get the board to get along with this?

You : “I’ll show you some figures and ideas”

#3You : “We ought to look into this new phenomena called:

30 minutes Facebook daily“Facebook is the largest community in Norway with almost 2/3 of all internet users visiting weekly. Norwegians are also using lot’s of other social networks, but with a significant lower penetration than Facebook”. (NRK Beta 2010)

*Teens 45 min.

The Native Internet Generation“The Internet plays a paradoxical role in Jetlir's life. Although he uses it intensively, he isn't that interested in it. It's indispensable, but only if he has nothing else planned. "It isn't everything," he says.” (Spiegel online 2010 )

The report shows that an internalized digital environment, means that it’s taken for granted , and that social relations and entertainment are far more relevant areas of usage, than lets say gathering information or as a source for getting knowledge.

Has Social Media changed the rules of business – for ever?

+ +

Knowledge of where you are (Who you are)

DemographicsLocation

Knowledge of what you need (What you desire)

Contextual Technology

Provide options to solve unmet needs(Targeted advertisement)

Contextual advertisementBehavioral marketing

GPS Car computer Syndicated service

- Nike/addidas club

- Online Training clubs

- Meet training friends in the park

- Alerts when new shoes are needed

- Find you, when you are missing

- Adjust shoe sole pressure, depending on the surface

- Register your running sessions on your Online training club / Nike profile

Has Social Media changed the rules of business – for ever?

The chip in your shoes connect you with others

How does it affect newspapers?10 – 20 % annual reduction of subscription/ sales revenues 10 – 30 % annual reduction of advertisement revenues 5 % annual revenues from digital media (Norway)

How does it affect advertisement?

How does it affect corporations?

From mass communication to communication between the masses

From mass communication to communication between the masses

OK – show me the money!

Eh…

In fact:It’s like building any other business case, where you have to follow the rules of the game.

( - The rules of the game is those of internet business! )

Desired value

“… While social media technologies seem to scale ok, “the programs - especially those with a labor-intensive component - don’t…”

“…There’s no real shortcut when it comes to holding authentic personal dialogues. That’s the point…” (Peter Kim / 2010 Business Communications Group, LLC)

The use of Social Media? – and show me the money!

Is it a new hype?

People haven't changed much the last 28.000 years, it’s not likely they will the next coming years either…

Is it a new hype?

The market place is an very old ”social business” concept – Relational business

Is it a new hype?

Tupperware as a concept is a well functioning concept on the Internet its- ”social business” – Relational business

Is it a new hype?Musicnodes.no is a “Tupperware” concept

#4You : “I believe that Social media isn't new at all it’s just that…”

The Boss : “Well we better get our business in accordance to this knowledge and not loose more market shares and revenue”

You : “Yup, and we should make sure we reduce costs as well.”

Internet is social & business on the Internet is too

#5You : “…oh one more thing…”

There is a “but”

The Boss : “Huh?”

#6You : “you see…”

The Boss : “Free? You must be insane!”

You : “Nope, and let me show you where the value is.”

Everything on the Internet is free

#7You : “you see…”

The Boss : “Huh… eh you lost me…”

You : “The cost for products/ services in a digital environment comes close to 0.- $.”

“- We need to create added values for the customers”

… The value is beyond free !(Statement from Kevin Kerry, Wired magazine )

(Statement from Copenhagen Institute for Futures Studies)

Create added values for the customers

How to start changing the mind set? How to enable innovation and establish sustainable business models and revenues in your business?

It’s maybe worthwhile contemplating over this:

People would like to pay for :

• Accessibility• Navigation• Security and consistency• From “Good enough” (free) – to High quality (paid)

• Exclusivity (added by me)(Copenhagen Institute for Futures Studies)

Thank you for your attention

This presentation is made by Geir Stene, senior consultant in Devoteam daVinci. Feel free to use this presentation as you wish. We would appreciate that references to Devoteam daVinci and the sources in this presentation are kept in your

usage of the material. www.davinci.no

Contact :geir.stene@devoteam.com

www.gstene.wordpress.com Linkedin : Geir Stene

Slideshare: Geir SteneTwitter: gstene

…the end