EXPLORING VALUE CREATIONTHROUGH
SOCIAL MEDIA
DR. ROBIN TEIGLANDSTOCKHOLM SCHOOL OF
WWW.KNOWLEDGENETWORKING.ORG
WWW.SLIDESHARE.NET/ETEIGLANDROBINTEIGLAND
"...when the rate of change "...when the rate of change outside an organization is outside an organization is greater than the rate of greater than the rate of
change inside, the end is change inside, the end is near...." near...."
Jack Welch…Jack Welch…
Did You Know: Shift HappensDid You Know: Shift Happenshttp://www.youtube.com/watch?http://www.youtube.com/watch?
v=cL9Wu2kWwSYv=cL9Wu2kWwSY
How are these trends impacting How are these trends impacting you and your organization?you and your organization?
GrowthGrowth
TimeTime
Information Information and knowledgeand knowledge
Human Human absorptive absorptive capacitycapacity
Human capacity cannot keep up…Human capacity cannot keep up…
Adapted from Cohen & Levinthal 1989Adapted from Cohen & Levinthal 1989
””No one knows everything, No one knows everything,
everyone knows something, everyone knows something, all knowledge resides in all knowledge resides in
humanity.”humanity.”networksnetworks
Adapted from Lévy 1997
Six degrees Six degrees of separationof separation
- Milgram, - Milgram, 19671967
The wisdom of the crowdThe wisdom of the crowd
ClosedClosedExpensiveExpensiveComplexComplexAccurateAccurate
OpenOpenInexpensiveInexpensive
SimpleSimpleClose enoughClose enough
Hinton 2007
AccurateAccurate
History tends to repeat itself….History tends to repeat itself….Innovation, financial crisis, industrial revolution, Innovation, financial crisis, industrial revolution,
… …
Steam Steam engineengine
Internal Internal combustion combustion
engineengine
MicroelectroniMicroelectronicscs
Late 18Late 18thth C C Late 19Late 19thth C C Late 20Late 20thth C C
Schön 2008
Third industrial revolution?
Prensky 2001, Beck and Wade 2004Prensky 2001, Beck and Wade 2004
““Digital Immigrants”Digital Immigrants”““Digital Natives”Digital Natives”
Company loyaltyCompany loyaltyWork ≠ PersonalWork ≠ Personal
Learning=Behind the deskLearning=Behind the deskIndividualismIndividualism
Company loyaltyCompany loyaltyWork ≠ PersonalWork ≠ Personal
Learning=Behind the deskLearning=Behind the deskIndividualismIndividualism
Professional loyaltyProfessional loyaltyWork = PersonalWork = Personal
Learning=Fun and gamesLearning=Fun and gamesCollectivismCollectivism
Professional loyaltyProfessional loyaltyWork = PersonalWork = Personal
Learning=Fun and gamesLearning=Fun and gamesCollectivismCollectivism
http://www.slideshare.net/helgetenno/post-digital-marketing-2009http://www.slideshare.net/helgetenno/post-digital-marketing-2009
..using social media to learn, solve problems, and build relationships
Adapted from FredCavazza.net
Drivers of changeDrivers of changeIn
crease
dIn
tera
ctivity
DiGangi 2010DiGangi 2010
Content created by a user to be used by a userContent created by a user to be used by a user
Shifting sources of value
From organization-generated content From organization-generated content (OGC) to user-generated content (UGC)(OGC) to user-generated content (UGC)
Content created by an organization to sell to a userContent created by an organization to sell to a user
Di Gangi 2008Di Gangi 2008
Inc 500 companies report successInc 500 companies report success
Barnes, 2010 Inc. 500 Update: Most Blog, Friend And Tweet But Some Industries Still Shun Barnes, 2010 Inc. 500 Update: Most Blog, Friend And Tweet But Some Industries Still Shun Social MediaSocial Media
But most ”traditional” companies…But most ”traditional” companies…
Organizational useOrganizational use
Employee useEmployee use
No use
Ban use
One-way “broadcasting”
Allow use
Encourage use
Two-wayconversations
… are here
Teigland, The Network Survey, 2010
In your groups…In your groups…
…….investigate the use of social media.investigate the use of social media
1.1. for service/product promotionfor service/product promotion
2.2. for customer servicefor customer service
3.3. for service/product innovationfor service/product innovation
4.4. through exploring new uses: through exploring new uses: geotagging, “groupon”, mobile, etc.geotagging, “groupon”, mobile, etc.
• Prepare max 10 min ppt presentation Prepare max 10 min ppt presentation Post links and comments on wikiPost links and comments on wikiShow examplesShow examplesWhat could you do at your companies? What could you do at your companies?
Some companies to investigateSome companies to investigate
1.1. Ford, JetBlue, Southwest Ford, JetBlue, Southwest AirlinesAirlines
2.2. Starbucks, Best BuyStarbucks, Best Buy
3.3. Dell, IBM, Cisco, SymantecDell, IBM, Cisco, Symantec
4.4. Threadless, ZapposThreadless, Zappos
5.5. Nike, Coca-Cola, Old Spice Nike, Coca-Cola, Old Spice
6.6. LegoLego
Some search tipsSome search tips
Some search words for search enginesSome search words for search engines−Social mediaSocial media - Twitter- Twitter−Social networkingSocial networking - Facebook- Facebook−Web 2.0Web 2.0 - LinkedIn- LinkedIn−FoursquareFoursquare
Some sitesSome sites−Company homepageCompany homepage blogsblogs−www.wikipedia.orgwww.wikipedia.org www.slideshare.netwww.slideshare.net
−www.youtube.comwww.youtube.com www.flickr.comwww.flickr.com−www.linkedin.comwww.linkedin.com www.facebook.comwww.facebook.com−www.twitter.comwww.twitter.com www.foursquare.comwww.foursquare.com−http://www.delicious.com/tag/facebook+casestudieshttp://www.delicious.com/tag/facebook+casestudies−http://www.socialmediaexaminer.comhttp://www.socialmediaexaminer.com
Social Media Wiki – one per groupSocial Media Wiki – one per group
http://knowledgenetworking.pbworks.com/w/page/36197617/Social+Media+-http://knowledgenetworking.pbworks.com/w/page/36197617/Social+Media+-+Promotion+Promotion
My Starbucks IdeaMy Starbucks Idea
LegoLego
IKEAIKEA
http://www.youtube.com/watch?v=0TYy_3786bohttp://www.youtube.com/watch?v=0TYy_3786bo
>16,000 unique visitors>16,000 unique visitors
http://www.hhs.se/se/BusinessAndSociety/Press/pressmeddelanden/Pages/aretsaffarskreator2011.aspx
http://sararywe.blogspot.com/
GrouponGroupon
http://techcrunch.com/2011/02/10/meeker-mobile-slides/http://techcrunch.com/2011/02/10/meeker-mobile-slides/
http://techcrunch.com/2011/02/10/meeker-mobile-slides/http://techcrunch.com/2011/02/10/meeker-mobile-slides/
Social media enable communitiesSocial media enable communities
Why do people participate?Why do people participate?
http://www.slideshare.net/vnnw/social-media-marketing-english-edition-4470494http://www.slideshare.net/vnnw/social-media-marketing-english-edition-4470494
Why do people participate?Why do people participate?
BA
Two individuals/organizations Two individuals/organizations with the same number of contacts…with the same number of contacts…
……but with very different access to but with very different access to resourcesresources
BA
A
Poor Poor creativity and creativity and
innovative innovative performanceperformance
Highcreativity and
innovative performance
Teigland 2003
B
www.youtube.com/watch?v=NugRZGDbPFU
Business models
So, what happens to them?
Johnson, Christensen, and Kagermann 2008, DiGangi 2010
They evolve...
DiGangi 2010DiGangi 2010
Closed model
Organizations internalize resources for value creation; restrict access to
knowledge, and protect intellectual property. DiGangi 2010DiGangi 2010
DiGangi 2010DiGangi 2010
Open model
Organizations leverage both internal and external resources for value
creation; strategically interact with environment DiGangi 2010DiGangi 2010
““Distributed groups of individuals Distributed groups of individuals focused on solving general problem focused on solving general problem
and/or developing new solution and/or developing new solution supported by computer-mediated supported by computer-mediated
communication.” communication.” Dahlander & Wallin, 2006 p. 1246Dahlander & Wallin, 2006 p. 1246
User-driven Innovation
DiGangi 2010DiGangi 2010
DiGangi 2010DiGangi 2010
““Distributed groups of individuals Distributed groups of individuals focused on solving general problem focused on solving general problem
and/or developing new solution and/or developing new solution supported by computer-mediated supported by computer-mediated
communication.” communication.” Dahlander & Wallin, 2006 p. 1246Dahlander & Wallin, 2006 p. 1246
User-driven Innovation
Co-created model
Organizations encourage flow of knowledge between internal and external resources; focus on common good where
both parties benefit DiGangi 2010DiGangi 2010
eZeZ 230+230+PartnerPartner
ss
32,000+32,000+CommunityCommunitymembersmembers
5,000+5,000+Customers in Customers in 130 countries130 countries
• Content management software, #1 in media Content management software, #1 in media industryindustry
• Customers: UN, Vogue, Hitachi, 3M, MIT, FT, Customers: UN, Vogue, Hitachi, 3M, MIT, FT, WSJWSJ
• 75 employees in 9 countries (US, Europe & 75 employees in 9 countries (US, Europe & Asia)Asia)
The backbone of eZ Systems is social The backbone of eZ Systems is social media - media - throughout the value chainthroughout the value chain
Driven by both parties sharing their experiences and co-creating value of
network
Private-collective Community
Transparency, transparency, transparencyTransparency, transparency, transparency
http://twitter.com/#!/zappos
Core Value #6: "Build Open and Honest
Relationships with Communication
Some things do not changeSome things do not change
Innovation Exchange
Exchange Trust
Trust Relationships
Relationships Interaction
"E-connection is processed in the brain like an in-person connection."
http://slideshare.net/missrogue
IBM’s blogging policy & guidance, IBM’s blogging policy & guidance, created by the employeescreated by the employees
Policies based on IBM’sBusiness Conduct Guidelines
Apply internally and externally
Available on ibm.com“blogging guidelines”
Adapted from Poole 2008
My company has blocked my computer from
accessing most of the social media sites. But I feel so cut off from my network. So, now I just connect through my
phone.
Management Management cannot mandatecannot mandate social relationships social relationships
Empower employees to make right Empower employees to make right decisionsdecisions
Trust your employees and enable social media use
Discuss social media usage and guidelines Use wikis to enable employees to create
company guidelinesProvide examples of good use and poor useCheck out others’ guidelines
http://socialmediagovernance.com/policies.php
When trusted, employees feel When trusted, employees feel empowered to do the right thing!empowered to do the right thing!
Communicate competitive landscapeCommunicate competitive landscape
What is our strategy?1. Who are our customerscustomers?
2. What products do we sell?3. How do we create value?4. Who are our competitors?
https://www.securestate.com/PublishingImages/Competition-https://www.securestate.com/PublishingImages/Competition-(BIG).gif(BIG).gif
U r always on…U r always on…
http://meritwager.wordpress.com/2009/08/04/fragor-till-forsaljningschefen-pa-fortum-varme/
Monitor with social analyticsMonitor with social analyticshttp://analytics.topsy.com/http://analytics.topsy.com/
http://analytics.topsy.com/
Who are the Twitter influencers?Who are the Twitter influencers?
http://www.briansolis.com/2011/02/the-interest-graph-on-twitter-is-alive-studying-starbucks-top-http://www.briansolis.com/2011/02/the-interest-graph-on-twitter-is-alive-studying-starbucks-top-followers/followers/
Word cloud of Starbucks’ Word cloud of Starbucks’ top 50,000 consumer profilestop 50,000 consumer profiles
http://www.briansolis.com/2011/02/the-interest-graph-on-twitter-is-alive-studying-starbucks-top-http://www.briansolis.com/2011/02/the-interest-graph-on-twitter-is-alive-studying-starbucks-top-followers/followers/
A day in the life of a Foursquare userA day in the life of a Foursquare user
http://www.briansolis.com/2011/01/checking-in-to-the-state-of-foursquare/http://www.briansolis.com/2011/01/checking-in-to-the-state-of-foursquare/
Social
Mobile Location
http://www.relenet.com/
http://techcrunch.com/2011/02/10/meeker-mobile-slides/http://techcrunch.com/2011/02/10/meeker-mobile-slides/
http://techcrunch.com/2011/02/10/meeker-mobile-slides/http://techcrunch.com/2011/02/10/meeker-mobile-slides/
www.rabble.sewww.rabble.se
Just when you thought you got it…..Just when you thought you got it…..
O’Driscoll 2009O’Driscoll 2009
Building skills in virtual environmentsBuilding skills in virtual environments
My CVMy CV•Leading a virtual team of 30 Leading a virtual team of 30
individuals from across the globeindividuals from across the globe•Creating and successfully Creating and successfully executing strategies under executing strategies under
pressurepressure•Managing cross-cultural conflict Managing cross-cultural conflict
without face-to-face without face-to-face communicationcommunication
Teigland 2010
How many usually think of virtual worlds…How many usually think of virtual worlds…
Teigland 2010
But what else can they be?But what else can they be?
•Ability to manipulate/create contentAbility to manipulate/create content•Virtual economy and currencyVirtual economy and currency
http://www.youtube.com/watch?v=Quh2OiPHkm8
Egypt protests inworldEgypt protests inworld
VWs moving out of “Gartner hype cycle” VWs moving out of “Gartner hype cycle” troughtrough
Virtual worlds today
http://www.gartner.com/it/page.jsp?id=1447613http://www.gartner.com/it/page.jsp?id=1447613
>1 bln usersMay 2006
July 2007
http://www.slideshare.net/nicmitham/kzero-radar-q1-2011?from=ss_embed
Accelerating innovation to meet global Accelerating innovation to meet global needsneeds
Teigland et al. 2010Teigland et al. 2010
Integrating users in Integrating users in development development
processprocess
http://www.youtube.com/watch?v=2kMNWBU1Yb8http://www.youtube.com/watch?v=2kMNWBU1Yb8
““Clearly if social activity migrates to Clearly if social activity migrates to synthetic worlds, economic activity will go synthetic worlds, economic activity will go
there as well.”there as well.” Castranova, 2006Castranova, 2006
http://www.flickr.com/photos/rodenberger/5085364909/in/pool-popartlab/#/photos/rodenberger/5085364909/in/pool-http://www.flickr.com/photos/rodenberger/5085364909/in/pool-popartlab/#/photos/rodenberger/5085364909/in/pool-1240578@N23/1240578@N23/
•US US $3 bln in virtual good sales 3 bln in virtual good sales in 2009 to grow to US in 2009 to grow to US $12 bln in 12 bln in 20122012
•US $222,000 raised at American Cancer Society Relay in Second Life
•Swedish government granted Swedish government granted bbank license to Mind Bank in 2009
•US US $3 bln in virtual good sales 3 bln in virtual good sales in 2009 to grow to US in 2009 to grow to US $12 bln in 12 bln in 20122012
•US $222,000 raised at American Cancer Society Relay in Second Life
•Swedish government granted Swedish government granted bbank license to Mind Bank in 2009
USD 635,000 for an asteroid!USD 635,000 for an asteroid!
http://blogs.forbes.com/oliverchiang/2010/11/13/meet-the-man-who-just-made-a-cool-half-million-from-the-sale-of-virtual-property/
USD 500,000 profit in 5 yearsUSD 500,000 profit in 5 years-Jon “Neverdie” Jacobs-Jon “Neverdie” Jacobs
The rise of Avapreneurs The rise of Avapreneurs (avatar+entrepreneur)?(avatar+entrepreneur)?
Global marketsGlobal marketsMicropaymentsMicropayments
Microemployees Microemployees
Teigland 2010Teigland 2010
3D interactive marketing3D interactive marketing
Miss Calypso Virtual Beauty Pageant on Planet Miss Calypso Virtual Beauty Pageant on Planet CalypsoCalypso
−Fashions modeled by avatars on virtual Fashions modeled by avatars on virtual catwalkcatwalk
−State of flow -> greater purchase intent and State of flow -> greater purchase intent and positive brand attitudespositive brand attitudes
Hooker 2010Hooker 2010
Increasing pace of VW development!Increasing pace of VW development!
VWs on VWs on stickstick
Browser-Browser-based VWsbased VWs
SeamlessnessSeamlessness
http://www.hypergridbusiness.com/2009/05/hypergrid-101-why-its-good-for-business/http://www.hypergridbusiness.com/2009/05/hypergrid-101-why-its-good-for-business/http://mediagrid.org/groups/technology/OFF.TWG/http://mediagrid.org/groups/technology/OFF.TWG/
"Create Once, "Create Once, Experience Experience
Everywhere”Everywhere” Expanding Expanding usesuses
For smart For smart phones and phones and tablet PCstablet PCs
• Virtual currency to buy virtual goods in Virtual currency to buy virtual goods in over 100 over 100 games and applications games and applications on Facebook platform on Facebook platform
• Purchase with credit card, PayPal, mobile phone or in Purchase with credit card, PayPal, mobile phone or in physical stores (such as Walmart)physical stores (such as Walmart)
• Intention is to make it easy for people to purchase Intention is to make it easy for people to purchase games and virtual goods within themgames and virtual goods within them
• On every purchase Facebook takes 30% of revenueOn every purchase Facebook takes 30% of revenue• Some argue Facebook Credits will develop into F-Some argue Facebook Credits will develop into F-
commerce while others think it will only be for gamescommerce while others think it will only be for games• In study with almost 3000 respondents: Will you be In study with almost 3000 respondents: Will you be
buying and spending Facebook Credits? buying and spending Facebook Credits? – 17 % Yes, absolutely 17 % Yes, absolutely – 58 % No, absolutely not58 % No, absolutely not– 25 % I have to learn more25 % I have to learn more
Group 8b , Course 2304, Media Management 2011Group 8b , Course 2304, Media Management 2011
Facebook Credits – A new economy?Facebook Credits – A new economy?
“As soon as the Facebook generation wakes up and
embraces virtual reality, we are going to see a giant
wave of virtual world millionaires”
-Jon “Neverdie” -Jon “Neverdie” JacobsJacobs
FOR YOU?FOR YOU?
Key takeaways:Key takeaways:- Learn from online interactions and then innovate Learn from online interactions and then innovate
based on what customers wantbased on what customers want- Provide structured opportunities for people Provide structured opportunities for people
within the business to learn about and within the business to learn about and participate in social media presenceparticipate in social media presence
- Executive support, dedicated personnel and key Executive support, dedicated personnel and key championschampions
- Humanize the business, and give opportunities Humanize the business, and give opportunities for customers to tell their storiesfor customers to tell their stories
- Social Media Guidelines for your peopleSocial Media Guidelines for your people
What are the opportunities for What are the opportunities for you?you?
Karinda RhodeKarinda Rhode
aka Robin Teiglandaka Robin [email protected]@hhs.se
www.knowledgenetworking.owww.knowledgenetworking.orgrg
www.slideshare.net/www.slideshare.net/eteiglandeteigland
www.nordicworlds.net www.nordicworlds.net RobinTeiglandRobinTeigland
Karinda RhodeKarinda Rhode
aka Robin Teiglandaka Robin [email protected]@hhs.se
www.knowledgenetworking.owww.knowledgenetworking.orgrg
www.slideshare.net/www.slideshare.net/eteiglandeteigland
www.nordicworlds.net www.nordicworlds.net RobinTeiglandRobinTeigland
Photo: Lindholm, Metro
Photo: Nordenskiöld
Photo: Lindqvist
If you love knowledge, set it
free…
Interested in learning moreInterested in learning more??