Andreas Weigend@aweigend

www.weigend.com

San Francisco, CA03 May 2010

1990’s: Search - find

2000’s: Social - share

2010’s: Mobile - create

3 Decades of Innovation

Social Data RevolutionHow the

Changes (Almost) Everything

• How do we “utilize” the “community”?• Who do we listen to?• Who do we co-create with?

– Physical friends– Peers (similar properties to you)– Ad hoc (e.g., for car purchase)– Experts (what bestows authority?)

• Institution? Past action? • Reputation/ brand as shortcut to allocate

attention

Social Data Revolution

Social Data RevolutionIn the last minute• 4,000,000 search queries,• 500,000 pieces of content shared on

FB,• 100,000 product searches on

Amazon.com,• 40,000 bit.ly urls created,• 40,000 tweets sent

Who creates data? Data is the digital air in which we breathe

How will this data be used? Improve product design, service delivery, relationships

How will this data be shared?Every company is a publishing company

What (if anything) does it mean to “own” data?

Data creation andsharing

1800’s: Transport energy Industrial Revolution

1900’s: Transport data Information Revolution

2000’s: Create and share data

Social Data Revolution

private public

Blippy: Sharing purchase info

Social: Distributed to FB friends

Case study: weigend.com/blog

CompareFBconnect on blog withtraditional contact box (no social element)

ConnectingComputers

ConnectingPages

ConnectingPeople

Underlying?

Data The amount of data each person

creates doubles every 1.5 … 2 years

□ after five years x 10□ after ten years x 100□ after twenty years x 10000

1 billion connected flash players

40 billion RFID tags worldwide

Pay-as-you-drive car insurance (GPS)

99% DNAoverlap

Biology: ~100k yrs

Time Scales

Social Norms: ~10 yearsData, Technology: ~1 year

Social Data RevolutionHow the Changes (Almost)

Everything

Or is information justan excuse for

communication?

Purpose of communication:to transmit information?

Web 0 Computers

Web 1Pages

Web 2People

Data

Introduction DataI C2B (Customer-to-Business)II C2C (Customer-to-

Customer)III C2W (Customer-to-World)IV Insightsv Questions

C2BPart I:

+1 800-4-SCHWAB

Imagine...

You knew all the things people here have bought

... what would you do?

You knew all of their friends

You knew their secret desires

Discovery

Recommendations

Decision making

Google helps people find

stuff

…but people want to discover and help with decisions!

…based on reviews

Amazon.com helps peoplemake decisions…

C2B Data Strategy:- Reviews- Purchases, Clicks…

Customers who bought this item also

bought…

Customers who viewed this item also viewed…

Customers who viewed this item ultimately

bought…

… based on clicks and purchases

Amazon.com helps peoplemake decisions…

… only occasionallypunctuated by purchases

Process of creating and refining product space awareness…

Shopping?

How do you know peoples’secret desires?

Accounting

Amazon.com is engineered for feedback

Context Geolocation Device

Attention Transactions Clicks

Intention Search

Data Sources

Connection data

The Social Graph

New phone product: How to market?

Connection dataWho called whom?

Traditional segmentation

DemographicsLoyalty

Connection data

Traditionalsegmentation

0.28%

Adoptionrate

1.35%

4.8x

Business

Customers

C2CPart II:

C2C = Customer-to-Customer

Customers share with each other

Amazon.com Share the Love

Amazing conversion rates since you chose:

Content (the item)

Context (you just bought that item)

Connection (you ask Amazon to email your friend)

Conversation (information as excuse for communication)

Blippy: Sharing purchases

Social network intelligence

Fraud reduction

–

Provide risk scores

Social graph targeting

Provide list of prospects

Influencer Marketing?

Real life vs

Market to influential people… … and then reach everyone else for free

Real Life Facebook 38% ≥ 4 links 86% ≥ 4 links

1

23

4

Chain length

C2WPart III:

Amazon.com: Public sharing of interests

Consumers

- Engage- Share- Connect

3 times per week

“We are not in the business of keeping the media companies

alive.”

“We are in the business of connecting with consumers.”

Trevor EdwardsNike Corporate Vice President forBrand and Category Management

Q: Or rather in the business of facilitating consumers to connect with

each other?

• Search tweets• Create tweets • Follow users

http://www.mrtweet.com

The Illusion of an Audience

InsightsPart IV:

+ wheels

+ heels

=

=

Product

Customer

Brand

From controlled production for the masses…

… to uncontrolled production by the masses

Shift in CustomerExpectations

People trust reviews and comments by others more than marketing messagesPeople use their friends’ attention to filter information and to discover new things

=

Socialfilter

Rooms to Avoid:

01, 21

08, 17

Rooms Ending in:

Possible Ice Machine / Elevator Noise

Limited View Rooms

Corner / Oversized Rooms:

04

24

Oversized, Corner Room, Quiet RoomOversized, Corner Room with North Times Square Views (Higher Floors are Preferred

Rooms Ending in:

QuestionsPart V:

Data creation and sharing Consumer expectations Innovation methodology Marketing in SDR

The 4 C's of marketing

E-business Me-business We-business Monetization

Outline: Intuit Questions

Who creates data? Data is the digital air in which we breathe

How will this data be used? Improve product design, service delivery, relationships

How will this data be shared?Every company is a publishing company

What (if anything) does it mean to “own” data?

Data creation and sharing

How have consumer expectations changed towards creating, sharing, accessing, and controlling data, especially in the financial area?

•

What benefits will customers expect in exchange to giving Intuit permission to use their data?

Ultimately, how can Intuit help people discover products and services, make better decisions, and subsequently participate in the value its customers create?

Consumer expectations

How should Intuit experiment with C2C platforms for social commerce, such as Facebook?

How can Intuit leverage C2W data (Customer-to-World), such as Twitter?

Which new data sources and technologies should Intuit pay attention to, e.g., for recommendations?

Innovation methodology

What are the obstacles for Intuit to fully utilize the data of its customers

Including consumer choice, purchase decisions, social relations, attitudes and beliefs?

How can the limitations of traditional market research be overcome by "instrumenting the world“?

I.e., by systems and incentives that enable customers to give feedback to Intuit whenever they want to?

How can Intuit marketing leverage the consumer mind shift of the social data revolution?

Marketing in SDR

Content

Context

Connection

Conversation

The 4 C’s of Marketing

Who talks to whom? Consumers to consumers

Who trusts whom?Shift from institutions to individuals

Who is in control? From e-business (company focus, Web 1.0)to me-business (customer focus , Web 2.0)to we-business (community focus , Web 3.0)

E-biz Me-biz We-biz

Who manages whom? Move from CRM to CMR (Customer Managed Relationships)

Who pays whom? Design incentives for participation and interaction

Charge as much as you can Charge as little as you can?

• Jeff Jarvis

Transaction economy Relationship economy• Shoshana Zuboff

Monetization

Innovation Internal External

• “Most smart people don’t work here.” Bill Joy

DataCollect and analyze Create and share

ExperimentsPush and prey Launch and learn

Summary

Andreas Weigend@aweigend

www.weigend.com

Q & A

http://weigend.com/blog @aweigend

OPEN DATA is part of the OPEN FIRST group.Ted Shelton. Noreena Hertz. Doc Searls. Andreas Weigend.Research focused into how mobile – global – cloud impacts the organizations of the future.

OPEN DATA helps companies: Understand the value of the data they already have, and to Show them how to create significant additional value by combining these data with appropriate other data

Example: Publishing the right data in order to benefitCustomers and trading partners, andThird party developers.