A.Okuogume, KTAMK

How social media is going to change the

company?Anthony Okuogume,

YliopettajaKauppa & Kulttuuri

KTAMK

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Brändistä kaveri? –Mopaali- ja eLVa-hankkeiden aamiaisseminaari 16.9.09..

A.Okuogume, KTAMK

How social media will change the company?

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A.Okuogume, KTAMK

Honestly, the Effect will beTsunamic!

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Why Tsunamic Effect?

One Example;The future workers, owners

and customers of ’companies’ will be made up of people who have grown up

on social media!

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Take a Look at these Figures!According to a research (The Pew Internet & American Life Project ,2007) ;

Some 93% of teens use the internet, and more of them

than ever are treating it as a venue for social

interaction – a place where they can share creations,

tell stories, and interact with others. Their ”only private

space” in the world. Social media through online social networks makes it possible

for people to connect and network on an imaginable scale!

55% of online teens ages 12-17 have created a profile

on a social networking sites such as Facebook or

MySpace.

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A.Okuogume, KTAMK

Growing up on Social Media!

• Young people today are the authors of the new digital revolution that is changing firms and society in general– E.g., Napster, was created by a teenager. – Although it no longer exists, but its legacy; free

online file sharing still lives on and continues to transform the media sector today!

• Facebook, Google and many more are no exception!• Young people dominates online social networks and are

socialising and collaborating on everything from:– Evaluating companies and their products to

governments and their actions– To self-organising and have become an online

force (see, Tapscott & Williams, 2006).E.g., the election of Obama as the US President

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A New Economic Culture?

• Is the ‘economy of social production’ and the backbone of the new ‘networked information economy’ (Yochai Benkler )

• According to Don Tapscott & Anthony Williams, (2007) it is based on self-organized collaborations;– It will ”change the way we invent, build,

market, and distribute products and services”

– ”Its greatest impact today is in the production of information goods—and its initial effects are most visible in the production of software, media, entertainment, and culture”

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Online Network Communities: The New Market place?

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Free at Last!

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Social Media: The Holy Grail of marketing communication

• Social media will allow firms to connect and communicate with customers better than before– It has value beyond traditional marketing

communication. Such as the power of the word of mouth!

• Firms will come to know their customers better and with co-creation, inputs of customers knowledge and satisfaction can be achieved at a greater scale

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A.Okuogume, KTAMK

Social Media: The Holy Grail of marketing communication

For example, on millions of blogs and social networks sites like Twitter and YouTube, people talk about products or service experiences, preferences, and what matters to them most. –All a business can do, is to listen,

understand, and prosper.–They can use the insights gained to uncover, generate or proof new service concepts

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A.Okuogume, KTAMK

Freedom Atlast!Companies no longer have monopoly of information and

are now increasingly have to deal with a very informed user groups or buyers.

In prosuming, companies can no longer act autonomously in developing products & production proceses (Prahalad & Ramaswamy, 2004)

Now, users seek to exercise influence over every part of the business system (Prahalad & Ramaswamy, 2004)E.g., the sale of Manchester City FC and Facebook’s

redesign.On online social networks, people organise through

preferences, causes or by personal relationshipsOnline social network is a ’wedia’ (EGO, 2008) and it is not

dominated either by the producer or the prosumer!

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Look!

A.Okuogume, KTAMK

• FOUR Ps1.Product2.Price3.Promotion4.place

• The new situation1. From product to co-

produced value and shared

2. From price to shared investments

3. From promotion to more interactive communication

4. Online social networks

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A.Okuogume, KTAMK

Factors that will challenge our views of business organizations and their operating

models:

1. Social production: mass collaboration2. Crowd sourcing (eBay innovation?)3. Prosumers4. ‘New Alexandrians’** (E.g., Google books): Culture of

sharing and open source5. Wiki Workplace

1. Self-motivating ‘knowledge nomads’ 2. Hierarchy as we know it will disappear 3. No more tightly scripted and controlled structures4. Leadership will be earned not appointed, 5. What you can do will become the only basis for

participation6. Openness and sharing - the underling

organizational culture.

08.04.23 **(Tapscott & Williams, 2007)

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Making Money With “Free”Offering open and free products allows a firm to gain rapid market share, turn out profit and competitive advantage.

Ways money can be earned from ‘free’– Advertising:

• Purely ad-supported contents• Ad supported free contents, and contents

without ads for a fee– Premium content:

Free basic content, with a fee for extra features

– links to online shops, donation buttons on the site, or Google’s adsense and etc.

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How to Make Money - May Be A Fortune - on Twitter

“The eligibility criteria "Money Making :1.Your Twitter account must be at least 4 months old.2.You should have at least 200 followersHowever, actually making money using your tweets need some strategic thinking, in terms of content and  the quality of your followers; since the  pay out would be directly proportional to individual tweeter's passion and expertise, and the history of link clicking by the followers “

Source:http://www.abhijitkar.com/life/2009/09/how-to-make-money-on-twitter.html

A.Okuogume, KTAMK

Crowd sourcing

• Social media and the power of the masses are already being utilised in several services.

• In crowd-sourcing. Users can be used for creating content, and product development and design

–eBay innovation• The role of end users for successful

delivery of innovation - “Prosumer”

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A.Okuogume, KTAMK

Uusi kenkä- ja

laukkusuunnittelukilpailu!

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Suomen Messut kutsuu tuoreet kenkä- ja laukkusuunnittelijat sekä alan opiskelijat uuteen kenkä- ja laukkusuunnittelukilpailuun. Kilpailu tuo esiin uusia ideoita ja mielenkiintoisia ratkaisuja kenkien ja laukkujen designiin, kannustaa alan suunnittelijoita ja tukee suomalaisen kenkä- ja nahkateollisuuden kehitystä

Suomen Messut kutsuu tuoreet kenkä- ja laukkusuunnittelijat sekä alan opiskelijat uuteen kenkä- ja laukkusuunnittelukilpailuun. Kilpailu tuo esiin uusia ideoita ja mielenkiintoisia ratkaisuja kenkien ja laukkujen designiin, kannustaa alan suunnittelijoita ja tukee suomalaisen kenkä- ja nahkateollisuuden kehitystä

K-KENKA use crowd-sourcing to know what the customers wants and also, for new product design & development and for strengthening its presence in the marketplace & to ‘connect’ with customers!

K-KENKA use crowd-sourcing to know what the customers wants and also, for new product design & development and for strengthening its presence in the marketplace & to ‘connect’ with customers!

A.Okuogume, KTAMK

Thank you!

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