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Social Media Revolution And Evolution

Discussion about the journey of social media over the past 10 years, since I started covering it. A look at the past, present, and future of disruptive technology trends. "Social Media Revolution and Evolution", presentation to Direct Marketing Association, Northern California Chapter, April 27, 2011

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Social Media Revolution And Evolution

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  1. 1 Social Media Revolution And Evolution Charlene Li Altimeter Group April 27, 2011 Twitter: @charleneli Email: charlene@altimetergroup.com

  2. 2 © 2011 Altimeter Group

  3. 3 How time flies • Facebook Platform • May 2007 • Facebook Connect • July 2008 • Iphone App Store • July 2008 • Nexus One Android • January 2010 © 2011 Altimeter Group

  4. Past: Coherent Strategies © 2011 Altimeter Group © 2010 Altimeter Group

  5. 5 © 2011 Altimeter Group © 2011 Altimeter Group

  6. 6 © 2011 Altimeter Group © 2011 Altimeter Group

  7. It’s about RELATIONSHIPS © 2011 Altimeter Group © 2011 Altimeter Group

  8. 8 Four goals define your Social Strategy Dialog Learn Support Innovate © 2011 Altimeter Group

  9. 9 Allow all employees to Learn What would happen if every employee could learn from customers? © 2011 Altimeter Group

  10. 10 How DellOutlet drives sales with Dialog © 2011 Altimeter Group

  11. 11 Support can be strategic © 2011 Altimeter Group

  12. 12 Starbucks involved 50 People to drive Innovation © 2011 Altimeter Group

  13. 13 Actio: Create a Culture of Sharing

  14. Present: Rethinking Leadership © 2010 Altimeter Group

  15. How to give up CONTROL But still be in COMMAND © 2011 Altimeter Group

  16. 16 Open Leadership Having the confidence and humility to give up the need to be in control, while inspiring commitment from people to accomplish goals © 2011 Altimeter Group © 2011 Altimeter Group

  17. 17 Traits of Open Leaders Authenticity Transparency © 2011 Altimeter Group

  18. 18 Transparency as an imperative © 2011 Altimeter Group

  19. 19 How Best Buy created Open Leaders © 2011 Altimeter Group © 2011 Altimeter Group

  20. 20 © 2011 Altimeter Group © 2011 Altimeter Group

  21. 21 © 2011 Altimeter Group © 2011 Altimeter Group

  22. Salesforce.com redefines leaders Designated the top 25 users as “Chatterati” and invited to leadership offsite © 2011 Altimeter Group © 2010 Altimeter Group

  23. “You can imagine the Chatterati creating as much value as an SVP in the organization by sharing their institutional knowledge and expertise - and we should look at compensation structures with that in mind.” - Marc Benioff, CEO of Salesforce.com © 2011 Altimeter Group © 2010 Altimeter Group

  24. 24 Action: Prepare for Failure No relationships are perfect Google’s mantra: “Fail fast, fail smart” © 2011 Altimeter Group © 2011 Altimeter Group

  25. 25 © 2011 Altimeter Group © 2011 Altimeter Group

  26. Future: Building Resilience © 2011 Altimeter Group © 2010 Altimeter Group

  27. 27 Identify and prioritizing disruptions that matter User Experience •Is it easy for people to use? •Does it enable people to connect in new ways? Business Model •Does it tap new revenue streams? •Is it done at a lower cost? Ecosystem Value •Does it change the flow of value? •Does it shift power from one player to another? © 2011 Altimeter Group

  28. 28 1) Likenomics (credit to Rohit Bhargava) “How personal relationships, individual opinions, powerful storytelling and social capital are helping brands…become more believable.” Understand the supply, demand, a nd thus, value of Likes as social currency See http://bit.ly/rohit-likenomics for Rohit’s take © 2011 Altimeter Group

  29. 29 Likenomics evaluation  User experience impact - moderate • People with high social currency will enjoy benefits, richer experiences, receive psychic income. • People with low social currency will find ways to get it.  Business model impact – moderate • New economics create opportunity for people who understand Likenomics to leverage gas. • The cost of accessing social currency will increase, and raise barriers to entry.  Ecosystem value impact – none © 2011 Altimeter Group

  30. 30 2) Social Search – Beyond Friends to Interests Social sharing rises as a search ranking signal, esp in the enterprise Create a social content hub to gain traction Use microformats to highlight granularity (e.g. hProduct & hReview) © 2011 Altimeter Group

  31. 31 Social Search evaluation  User experience impact - Moderate • Search becomes more useful, relevant to people.  Business model impact – Moderate • SEO takes on a different dimension, rewards companies with social currency, personalized experiences.  Ecosystem value impact – Moderate • New power brokers are social data/profile players who capture activity data and profiles. • Google has little of either. © 2011 Altimeter Group

  32. 32 3) Big Data  Social monitoring merges with Web analytics • HOT: Omniture, Coremetrics/IBM, Webtrends  Technology like Hadoop makes it easy for companies to tap “Big Data” • E.g. New York Times making its archives public • Twitter archived by Library of Congress • Facebook Cassandra, Amazon Dynamo, Google BigTable  Data visualization tools make it easy to digest  Balancing privacy and personalization © 2011 Altimeter Group

  33. 33 Big Data evaluation  User experience impact - Low • Most users won’t directly experience Big Data.  Business model impact – High • New businesses and initiatives can be started at very low cost.  Ecosystem value impact – Moderate • Owners of Big Data repositories can assert control, demand payments for access. © 2011 Altimeter Group

  34. 34 4) Game-ification © 2011 Altimeter Group

  35. 35 TurboTax used “games” to encourage sharing and support Social design can enter training, collaborat ion, support, hiring © 2011 Altimeter Group

  36. 36 Gamification evaluation  User experience impact – High • Experiences get richer, more engaging  Business model impact – Moderate • Work gets done faster, cheaper. • New organizational structures and cultures emerge.  Ecosystem value impact – Low • Service providers will remain focused, boutique firms. © 2011 Altimeter Group

  37. 37 5) Curation © 2011 Altimeter Group

  38. 38 Curation evaluation  User experience impact – Moderate • User authority established from better curation, better content is organized well.  Business model impact – Moderate • Easier for businesses to create their content.  Ecosystem value impact – Moderate • Individuals challenge media and brands as authorities – and publishers that siphon off ad dollars. © 2011 Altimeter Group

  39. 39 Summary of disruptions User Business Model Moderate Moderate High Value Networks Low Moderate Moderate Experience Moderate Moderate Low Likenomics Social Search Big Data Enterprise Soc Net Gamification Curation High Moderate Moderate High Moderate Moderate Low Moderate Moderate © 2011 Altimeter Group

  40. 40 Action: Ask the Right Questions about Value “We tend to overvalue the things we can measure, and undervalue the things we cannot.” - John Hayes, CMO of American Express © 2011 Altimeter Group © 2011 Altimeter Group

  41. © 2011 Altimeter Group © 2011 Altimeter Group

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