interactive value creation andsocial media

Esko Kilpi

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companies don’t create value, but...

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...the way customers use the product creates value - more value or less value

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each situation (context) is somewhat the same, somewhat different. same

products, but different value

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do you know how much, or how little value is created?

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there are similarities in our way of thinking about value creation and

markets. let’s look at mainstream thinking

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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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the message then makes the market - or does it?

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a market is really a network with connecting nodes

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the nodes are people

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and the connections are conversations

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conversations are always live andalways changing

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you can’t store them, you can’t effectively study or measure them afterwards.

you have to participate

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where and when do the conversations that matter to you take place?

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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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live context is everything. contexts form groups. value creation and markets should

be seen as network phenomena

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intentions are driving value creation and marketing.

“reverse advertising”

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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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taking intentions of people seriously.what does it mean to be people centric?

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it is about network relationships, and reputation, forwarding and recommendation architectures

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technically it is about transparent, open platforms and a change of focus from

servers (pages) to clients and applications.

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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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examples of this are iPhone applications as well as Firefox and Google

Chrome extensions

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then what should we do?

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principle one: distributing and integrating at the same time

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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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value creation is dependent on the value of connections in the network

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links are thus even more important than information in any given context

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being able to connect with other users is often more important than being able to

connect with the company

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principle two: changing the focus

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from content to conversationsfrom one way messages to interactionfrom storage to real time

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most importantly don’t create walled gardens - intranets and extranets

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principle three: giving organisations a human face

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principle four: in the physical world there are places. in the digital there are

only purposes

the primary metaphor we used for understanding the web was location. we “go” to a web “site” using an “address”

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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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interactive value creation is about context spesific participation in

responsive, meaningful way

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principle five: creatinga social media strategy

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all products are understood as services

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all services take place in groups, in networks - that are most often not

initiated or controlled by the company

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but there can be a structured approach to participation

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transparency

commentary

contributions

publishing search conversation

presence,

intentions tags

blogs

wikis and

rich objects

context

search

search as

subscription

social

bookmarks

questions and

answers space

reflective

conversations rating

forums,

discussion threads

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and you can and you should plan how to increase the value of communication

more asynchronous

more synchronous

more interactive

more “for your information”

more closed more open

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more information from esko@kilpi.fi

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www.kilpi.fi

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photos by Jussi Mononen