How to use social media to support value creation

1. interactive value creation and
social media
Esko Kilpi
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2. companies don’t create value, but...
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3. ...the way customers use the product
creates value - more value or less value
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4. each situation (context) is somewhat the
same, somewhat different. same
products, but different value
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5. do you know how much, or how little
value is created?
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6. there are similarities in our way of
thinking about value creation and
markets. let’s look at mainstream thinking
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7. traditional markets consist of
independent, separated people. we
choose particular demographics because
we think these people are responsive
to the same message
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8. the message then makes the market -
or does it?
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9. a market is really a network with
connecting nodes
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10. the nodes are people
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11. and the connections are conversations
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12. conversations are always live and
always changing
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13. you can’t store them, you can’t effectively
study or measure them afterwards.
you have to participate
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14. where and when do the conversations
that matter to you take place?
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15. there is a need for a change of mind what
comes to value creation and perhaps also
what comes to marketing!
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16. live context is everything. contexts form
groups. value creation and markets should
be seen as network phenomena
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17. intentions are driving value creation
and marketing.
“reverse advertising”
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18. in the network economy, the buyer
notifies of the intent to buy and sellers
respond. accordingly companies need to
be responsively present in the contexts of
value creation
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19. taking intentions of people seriously.
what does it mean to be people centric?
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20. it is about network relationships,
and reputation, forwarding and
recommendation architectures
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21. technically it is about transparent, open
platforms and a change of focus from
servers (pages) to clients
and applications.
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22. the aggregation is going from server-side
to client-side. the decision about what to
bring together in a bundle is made by the
user, not by the producer
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23. examples of this are iPhone applications
as well as Firefox and Google
Chrome extensions
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24. then what should we do?
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25. principle one: distributing and integrating
at the same time
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26. the web's architecture is based on links.
links connect. we are able simultaneously
to distribute the task of knowing and
integrating what we know
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27. value creation is dependent on the value
of connections in the network
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28. links are thus even more important than
information in any given context
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29. being able to connect with other users is
often more important than being able to
connect with the company
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30. principle two: changing the focus
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31. from content to conversations
from one way messages to interaction
from storage to real time
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32. most importantly don’t create walled
gardens - intranets and extranets
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33. principle three: giving organisations a
human face
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34. 34

35. principle four: in the physical world there
are places. in the digital there are
only purposes
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36. the primary metaphor we used for
understanding the web was location. we
“go” to a web “site” using an “address”
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37. portals are rarely successful in really
giving people what they want. we just
can’t know what is needed in advance
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38. interactive value creation is about
context spesific participation in
responsive, meaningful way
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39. principle five: creating
a social media strategy
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40. all products are understood
as services
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41. all services take place in groups, in
networks - that are most often not
initiated or controlled by the company
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42. but there can be a structured approach
to participation
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43. contributions wikis and social forums,
rich objects bookmarks discussion threads
commentary blogs search as reflective
subscription conversations
rating
transparency presence, context questions and
intentions search answers space
tags
publishing search conversation
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44. and you can and you should plan how to
increase the value of communication
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45. more asynchronous
more interactive
more closed more open
more “for your information”
more synchronous
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46. more information from esko@kilpi.fi
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47. www.kilpi.fi
photos by Jussi Mononen
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