EXPLORING VALUE CREATIONTHROUGH

SOCIAL MEDIA

DR. ROBIN TEIGLANDSTOCKHOLM SCHOOL OF

ECONOMICSROBIN.TEIGLAND@HHS.SE

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 Teiglandrobin.teigland@hhs.serobin.teigland@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 Teiglandrobin.teigland@hhs.serobin.teigland@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??