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Lecture SeriesWeb: Liberty
Fraternity Equality
Anirudh AgrawalPhD Fellow IKL
Last Week
• Fundamental Rights– Shared Values, Share rights
• Internet growth and the emergence of New Media– Paradigm shift
• Social movements, Civil Society Organizations– Collective values– http://www.youtube.com/watch?v=
fgwl7YelOUY
state
marketCivil society
Lecture 5
• Online Activism• Social Media Marketing• Co-creation• Crowdsourcing
1. Online Activism
Online Campaign
• http://www.youtube.com/watch?v=5LIpTKOCHY8
Online Activism : Wikileaks• http://www.youtube.com/watch?v=jzMN2c24Y1s• “We open governments”• Allows people to give – and get – raw information
without relying on the traditional news media.
Twitter in….Iran
• Al Jazeera (10 Jan 2011): “In the summer of 2009, the word on everyone's lips was "Iran." As the youthful Green Movement rose up against what they perceived to be a tampered election, the world banded together in solidarity. The hashtag #iranelection trended on Twitter for weeks, while media outlets spoke of a "Twitter revolution.”http://www.youtube.com/watch?v=
7jln9jba4cU
Twitter in London
• Student protests last month (December 2010) against fees.
• Activists used Twitter and Google Maps to avoid police, and send messages to each other about where to organize.
http://www.youtube.com/watch?v=EJ9gnuDCv64
What is Occupy Wall Street
• Movement against social, economic inequality, influence of corporate money and lobbyists on government
• Participants are the “99%”• Started in New York on September 17 and has
moved world wide • 82 countries, 1000 cities• Presidential commission whose goal is to end the
control money has over our representatives in Washington
• Equal distribution of wealth • “people before profits”• http://www.youtube.com/watch?v=re4CWYuxlc0
Online Activism
• http://www.greenpeace.org/international/en/news/Blogs/makingwaves/social-media-can-save-the-planet/blog/11832/
• https://www.youtube.com/watch?v=1BCA8dQfGi0
• http://www.ted.com/talks/clay_shirky_how_the_internet_will_one_day_transform_government.html
Activity 1
• In groups of 4/5 , Discuss the advantages and disadvantages of Social Media in activism and advocacy?
• Do a SWOT Analysis of social media in activism and advocacy?
• You have …10 minutes
• Eg.
Dis-advantages Advantages
London Riots GreenPeace Campaign against Coke (last lecture)
Anti-Islam movie and following riots across the world
Transparency through wikileaks
Rumor mongering transparency
Strength(I) S W Weakness(I)
Opportunities(x) O T Threats(x)
2. Social Media Marketing
Viral Marketing- What is it?
• Like WOM, relying on individuals to pass along a marketing message through any form of communication
• Provides a message that encourages others to spread the word about the firm/product/service
• Name derived from virus, the effect multiplies just life the growth rate of virus
• Chain reaction
Who are the carriers of Viral marketing
• Bloggers• First users/lead users• Journalists• Communities with strong identities
How to achieve viral marketing?
• Bring out emotion form the customer• Do something unexpected• KISS• Don’t try to make an advertisement• Make sequels• Offer incentives• Allow sharing, downloading• Call for feedback
Benefits of viral marketing
• Cost – effective• Quickly build brand recognition/reputation• Gain short term/long term visitors
WOM as a strategic factorfor companies
the importance of promoters
Courtesy : Elanor Colleoni
The dangers of Detractors
WOM could also be Negative
Courtesy : Elanor Colleoni
Correlation between WOM and income growth
Courtesy : Elanor Colleoni
Online Engagement
Coke Online Viral Marketing
• 2009 Coke spent approximately $3 billion worldwide
• cost-effective way to build deeper connections with consumers, especially teens
• Coke Market research Campaign– 73 percent of teens online– If teens loved a piece of digital content, they
hesitated to post a link to it on their Facebook or MySpace page out of fear that their friends would not approve their choices
– Share content validated by their peers
Coke Online Viral Marketing
• Launched digital media applications focused on teens– Iphone/android based application (I million
dl)– Facebook/Myspace/Orkut based
applications(1 million dl)– Goodies package including wallpapers,
screensavers (2 million dl)– Happiness Machine– http://www.youtube.com/watch?v=
lqT_dPApj9U (6 million views)
• Cost of the video : 50000 Dollars
Result on the video
• Within 10 days on facebook, 1 million views
• 50 percent outside US, 70 percent blogpost other than english
• Positive impacts, switching from pepsi to coke
• Happiness/connection/youthfulness/cool ness/emotions
• Success promoted further investment in social media
Lessons Learnt
• Online Consumer behavior – wom, past preference, evaluation, need
based
• Develop a social media HUB– blogs, wiki, forums, search, user ratings,
Web content
• Develop Great Content – cool videos, cool quotes, cool pictures,
fantastic user interface, content
• Facilitate action on the part of user• Measure progress, improvise, set goals
Follow Online Customer review to Determine whether a local business is a good business
Source: The Local Consumer Review Survey 2012, the search engine land
No. of Online reviews one needs to read before deciding to trust a local business
Source: The Local Consumer Review Survey 2012, the search engine land
Does online reviews impact consumer perception of the local business
Source: The Local Consumer Review Survey 2012, the search engine land
Trust the online reviews as much as personnel recommendations
Source: The Local Consumer Review Survey 2012, the search engine land
Case Trip Advisor
• Travel website that assists travellers in gathering travel related information like reviews, opinions and issues
• Third most visited travel website• Worlds larget social travel network• User-generated content
User-Generated Content and Travel: A Case Study on Tripadvisor.Com
User-Generated Content and Travel: A Case Study on Tripadvisor.Com
Traveler as Travel Guide!
User-Generated Content and Travel: A Case Study on Tripadvisor.Com
Tripadvisor case…Challenge of authenticity
• Press reports call into question the legitimacy of the review system
• Perhaps some reviews are not genuine? • No-verification process for the entries• TripAdvisor posts notices warning that fake
reviews will not be tolerated and hotels attempting to manipulate the system will be penalised in their rankings and be identified as have tried to post fake reviews, blacklisting of hotels for faking the rating
ENTER 2008 Research Track Slide Number 34
User-Generated Content and Travel: A Case Study on Tripadvisor.Com
Tripadvisor case…Research Objectives
• To explore how hotels are presented on TripAdvisor
• To investigate if relationships existed between characteristics (such as star rating) and positioning on the system
• To establish if hotels were utilising their right to reply
• To search for evidence of dirty tricks
ENTER 2008 Research Track Slide Number 35
User-Generated Content and Travel: A Case Study on Tripadvisor.Com
Tripadvisor case…Research Methodology
• 100 London hotels• Selected characteristics (star rating,
TripAdvisor Traveller Rating, rank within the London market, average rate and number of reviews listed) recorded
• Five most recent reviews analysed in detail
ENTER 2008 Research Track Slide Number 36
Tripadvisor case…Results
ENTER 2008 Research Track Slide Number 37
Star Rating
Number Average Rank within London
Average TripAdvisor
Rating
Average number of
reviews
Average Room Rate
(US$) Unclassified 46 468 3.10 67.6 256
1 star 4 857 1.75 38.5 154 2 star 4 470 3.25 32.5 188 3 star 32 290 3.56 83.1 316 4 star 10 91 4.10 129 409 5 star 4 314 3.50 33 555
Overall 100 383 3.32 74.76 282
Tripadvisor case.False Reviews?
ENTER 2008 Research Track Slide Number 38
Measure Sample Single Reviews Multiple Reviews Mean 3.14 2.93 ** 3.33 ** Standard Deviation 1.48 1.63 1.31
TripAdvisor Rank
Suspect Reviews
Other Single Reviews
Multiple Reviews
Overall sample
1 36% 21% 12% 21% 2 14% 14% 16% 15% 3 11% 7% 20% 16% 4 15% 24% 29% 24% 5 24% 34% 22% 24%
Extreme scores and a solitary visit by the reviewer to join and post the review
User-Generated Content and Travel: A Case Study on Tripadvisor.Com
Tripadvisor case..Conclusion• All hotels the subject of multiple reviews• “Right to reply” rarely used• Little (if any) evidence of false reviews• No hotels identified as having posted fake reviews
ENTER 2008 Research Track Slide Number 39
User-Generated Content and Travel: A Case Study on Tripadvisor.Com
Reliability of user rating on online platform (2003)
Discussion
• Monopoly / Legitimacy/Pressures/Authenticity
• How do you preserve your moral position against commercial pressures?
• http://www.youtube.com/watch?v=tPgQsv2KPwc
Samsung GS 4
• http://www.youtube.com/watch?feature=player_embedded&v=dIEfNaNCkKM#!
Activity 2Vampire is a lingerie venture which is 5 year old,. This year it accounted for 10 million dollars of annual revenue. Its revenues were 20 percent less than that of last year. In the recent board meeting it concluded that its marketing is not producing any new costumers. Its annual marketing budged is capped at 20 % of the annual revenues. Its marketing budget includes :- Promotions at Fashion Shows 40% of the marketing budgetMarketing and Promotion to prominent retail players 20% of the marketing budgetIts print media promotions and communications: 20% of the marketing budget including its websitePromotions through its CSR campaign and CSR activities 10% of the marketing costsEcommerce based promotions 10% of the marketing budget Its primary costumers are low wage Americans, where 95 % of them are from California, Texas and Nevada . Its primary sales mechanism is through supermarket retail outlets like Wal-Mart.. Now, it is strategizing to expand into ecommerce domain as well. Task : Design a Social media based marketing strategy for Vampire. Costs of social media is as follows: Youtube video production: 100 000 dollarsYoutube video adwords: 100 dollars/city/monthGoogle adwords : 100 dollars/city/monthYahoo adwards: 100 dollars/city/monthFacebook adwards: 100 dollars/city/month Optimise the budget such that the marketing produces the highest impact. Give reasons for your choice. Discuss them in the class.Think about brandingRevenuesNew InvestmentLimited marketing budget
3. Co-Creation and Crowdsourcing
Co-Creation
Courtesy : Elanor Colleoni
Courtesy : Elanor Colleoni
Potential Actors in a Co-Creative Process
Actors involved in co-creation
Insiders Users Customers Vendors Citizens …..
Co-Creation not only involves customers and users, but also many other stakeholders; thus co-creation is more than user-driven innovation!
Co-creation processes can “produce” customized and personalized products and services but also standardized or mass products.
Co-creation contains the web 2.0 enabled concepts such as mass collaboration, open contents, crowd sourcing and open source.
Courtesy Prof. Dr. Thorsten Posselt
The Co-Creation Principle
Human experiences
Co-creatio
n
Collaborative process
Engagement platforms
According to Ramaswamy/Gouillart (2010)
Real-Time visualization
Dialog about experiences
Value creation together with customers and stakeholders
Live meetings Websites Open/private
communities
Courtesy Prof. Dr. Thorsten Posselt
Courtesy : Elanor Colleoni
Courtesy : Elanor Colleoni
http://www.youtube.com/watch?v=9VKRbmnqXR4
Courtesy : Elanor Colleoni
http://www.youtube.com/watch?v=vV_mSNI_b8Q
Courtesy : Elanor Colleoni
Courtesy : Elanor Colleoni
http://www.youtube.com/watch?v=daautsKE8tA
Courtesy : Elanor Colleoni
Courtesy : Elanor Colleoni
http://www.youtube.com/watch?v=R-z_vqGNN5w
Courtesy : Elanor Colleoni
Crowdsourcing is a process that involves outsourcing tasks to a distributed group of people. This process can occur both online and offline, and the difference between crowdsourcing and ordinary outsourcing is that a task or problem is outsourced to an undefined public rather than a specific body, such as paid employees.
Crowdsourcing
Courtesy : Elanor Colleoni
Commons-based peer production
“Any one of a wide range of collaborative
efforts we are seeing emerging on the Net
in which a group of people engages in a
cooperative production enterprise.”
Benkler
Courtesy : Elanor Colleoni
• Crowdsourcing is an online, distributed problem-solving and production model
• Crowdsourcing is channeling the experts’ desire to solve a problem and then freely sharing the answer with everyone
• http://www.youtube.com/watch?v=ZSTurPXtDAw
Problem
How can we organize a crowdsourcing platform?
Courtesy : Elanor Colleoni
Social Production: FeasibilityAll the inputs necessary to effective productive activity are under control of individual users:• Inputs Need:
– Human factors: Time, creativity, wisdom, knowledge and culture
– Computers (for production)– Networks (for distribution)(Time as ”excess capacity available to be used for activities whose rewards are not monetary, directly or indirectly”)
Courtesy : Elanor Colleoni
• Extrinsic (external forces, payoffs and social rewards) vs. Intrincic (personal satisfaction or pleasure) reasons
• Social reputation (community-based motivations, eg. recognition)
• Loyalty or friendship• For any given culture, there will be some acts that a
person would prefer to perform not for money, but for social standing and recognition.
• Social and money-oriented motivations are historically and cultural contingent
What motivates people to Produce?
Courtesy : Elanor Colleoni
• Contributions are diverse in quality, quantity, focus, timing…
• Two main technical and organizational architectures: Modularity and granularity- Modularity: Tasks can be broken down into
independent modules before they are assembled
- Granularity: The size of the modules in terms of time and effort an individual must invest
Critical for success: Organizational architectures
Courtesy : Elanor Colleoni
When crowdsourcing not Effective?
• When the means of production required are expensive, or hard to get access to (eg. Large machinery)
• When the raw materials are expensive, or hard to get access to (eg. Steel)
• When technology or systems do not permit sharing• When people have no time to spare
Courtesy : Elanor Colleoni
Activity 3You own a successful e-commerce venture UNMondial focused on Travel (international travel, adventure travel, culture travel, forest travel, cruise). The annual revenues of the business are going down yearly. Last year the revenues were 30 million dollars. They were 10 percent down from the previous one. You have fired 2 high profile CEOs in the last 18 months. The firm has reached a roadblock in terms of new customer acquisition, new market acquisition, technology innovation, and business model innovation. The main sources of revenue areOn-line travel and experience package deals for your oriented back-pack travelling (40 % of revenues)On –line travel and experience package deals for salaried/middle age comfort travelling (25 % of revenues)Online ticketing (15 % revenues)Tour packages, honeymoon packages, group travel packages, corporate tour packages (15 % revenues)Offline travel books, experience books (5 % revenues) The firm is facing much competition in the market.More players in the e-commerce marketProfit margins on revenue decreasingLiquidity crunch due to financial crises, less spending on leisure….…..and more Remember:Key drivers to increase reveneus areIncreasing pressure on employees to performIncreasing the budget on marketingSqueezing margins on profit and catering to larger communityIncreasing quality of service on online media… Device an innovation strategy for this firm on e-commerce medium keeping in mind: -Social Media strategiesCo-creation activitiesCrowdsourcing activities
Lecture 6
• Business model Analysis• Business Model Canvas• Case Kiva vs MYC4• Open Innovation
www.businessmodelgeneration.com
Cost structure Revenue streams
Key resources Channels
Key activitiesKey partners Value proposition
Costumer relationships
Costumer segments
Text
Text
Text Text Text
KIVA and MYC4