Value creation through social media

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Atal Malviya

Negócios Tecnologia

In this session

∗ Understanding Social Media
∗ Importance of social media
∗ Stakeholders in SM
∗ Value Creation through SM
∗ Financial
∗ Non financial
∗ Q&A

How Many?

∗ How many of you have FB account?
∗ How many of you have Twitter account?
∗ How many of you have LinkedIn account?

Social Media

∗ Web 1.0 and Web 2.0
∗ User generated content
∗ Engagement

" People might be more
interested over a dead squirrel in
their front yard than they are
over thousands of people in
Africa dying.” – Mark Zuckerberg

Importance of SM

∗ 95 million people tweet everyday
∗ 7 billion pieces of content are shared per week on FB
∗ YouTube is the second largest search engine on the
web
∗ Facebook usage is up 40% since last year
∗ Twitter is adding 300,000 users a day…

Some Qs -

∗ Is it another Dotcom bubble?
∗ How Social Media can help businesses?
∗ How Social Media can harm businesses?
∗ Is it another Dotcom bubble?

Value for Key Stakeholders

∗ Shareholders
∗ Customers/ Consumers
∗ Supplier
∗ Employees
∗ Other businesses

Some Qs

∗ How these are creating value through SM?
∗ Facebook
∗ Coca - cola
∗ Ashridge
∗ Consumer

Some examples

∗ Radian6 – Financial
∗ Green Peace - Environmental
∗ HBR – Customer engagement
∗ Kenneth Cole – Value destroyed
∗ Manchester United – Corporate Governance
∗ Heathrow – Customer service

Key classification of companies on
SM

∗ SM Enablers (Facebook, Twitter, LinkedIn etc.)
∗ SM Users (Coke, EasyJet, Delta Airline, GAP etc.)
∗ SM Mediators (Radian 6, ODiMaX, FarmVille etc.)

Is FB $80 billion?

∗ How to value social media companies?
∗ Standard valuation methods are not right at this stage
∗ Innovation in Valuation
∗ Reverse engineer the existing businesses
∗ Derive per user value
∗ Final valuation depends on user base

Value through Consumers

∗ Customers profiling through followership
∗ Customers insight through engagement
∗ Customer advocates

Value to Consumers

∗ Real time free flow of information
∗ Financial value – Groupon
∗ Sharing of resources – DropBox
∗ Video

Thanks

∗ You can reach me on –
∗ @Twitter – AtalMalviya
odimax
∗ @FB – facebook.com/AtalMalviya
∗ @Email – atal.malviya@gmail.com
atal@odimax.com
∗ @Phone – Please email ☺.

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Value creation through social media

1. Value creation through Social Media (On twitter #AshridgeMBA) Atal Malviya ODiMaX Ltd. Ashridge Business School, 06/06/2011

2. In this session ∗ Understanding Social Media ∗ Importance of social media ∗ Stakeholders in SM ∗ Value Creation through SM ∗ Financial ∗ Non financial ∗ Q&A

3. How Many? ∗ How many of you have FB account? ∗ How many of you have Twitter account? ∗ How many of you have LinkedIn account?

4. Social Media ∗ Web 1.0 and Web 2.0 ∗ User generated content ∗ Engagement " People might be more interested over a dead squirrel in their front yard than they are over thousands of people in Africa dying.” – Mark Zuckerberg

5. Importance of SM ∗ 95 million people tweet everyday ∗ 7 billion pieces of content are shared per week on FB ∗ YouTube is the second largest search engine on the web ∗ Facebook usage is up 40% since last year ∗ Twitter is adding 300,000 users a day…

6. Importance of SM

7. Some Qs - ∗ Is it another Dotcom bubble? ∗ How Social Media can help businesses? ∗ How Social Media can harm businesses? ∗ Is it another Dotcom bubble?

8. Value Creation

9. SM Stakeholders

10. Value for Key Stakeholders ∗ Shareholders ∗ Customers/ Consumers ∗ Supplier ∗ Employees ∗ Other businesses

11. Some Qs ∗ How these are creating value through SM? ∗ Facebook ∗ Coca - cola ∗ Ashridge ∗ Consumer

12. Some examples ∗ Radian6 – Financial ∗ Green Peace - Environmental ∗ HBR – Customer engagement ∗ Kenneth Cole – Value destroyed ∗ Manchester United – Corporate Governance ∗ Heathrow – Customer service

13. Key classification of companies on SM ∗ SM Enablers (Facebook, Twitter, LinkedIn etc.) ∗ SM Users (Coke, EasyJet, Delta Airline, GAP etc.) ∗ SM Mediators (Radian 6, ODiMaX, FarmVille etc.)

14. Is FB $80 billion? ∗ How to value social media companies? ∗ Standard valuation methods are not right at this stage ∗ Innovation in Valuation ∗ Reverse engineer the existing businesses ∗ Derive per user value ∗ Final valuation depends on user base

15. Is FB $80 billion?

16. Value through Consumers ∗ Customers profiling through followership ∗ Customers insight through engagement ∗ Customer advocates

17. Value to Consumers ∗ Real time free flow of information ∗ Financial value – Groupon ∗ Sharing of resources – DropBox ∗ Video

18. Thanks ∗ You can reach me on – ∗ @Twitter – AtalMalviya odimax ∗ @FB – facebook.com/AtalMalviya ∗ @Email – atal.malviya@gmail.com atal@odimax.com ∗ @Phone – Please email ☺.

Value creation through social media

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