1.
Dave Capece
sparxoo.com Digital I fl
Di it l Influence in a
i
david@sparxoo.com Network Economy
twitter.com/sparxoo
November 15, 2009
1 | | Digital Influence in a Network Economy

2.
Network Economy
In a network economy, value flows from connectivity. Value
is created and shared by all members of a network.
Economies of scale stem from the size of the network.
2 | | Digital Influence in a Network Economy

3.
Economic Structures
Power by One Power to the People
Traditional Web 1.0
Type Web 2.0
Corporation
Increased power
by Influencers who
have gained
reputations and
Top-Down
T D are looked to for Mob R l
M b Rule
Features Leadership providing
leadership to the
digital community
3 | | Digital Influence in a Network Economy

4.
The Changing Social Structure
Pre-Network Network
Leaders
Followers
ll
4 | | Digital Influence in a Network Economy

5.
The rules have changed in the network economy
Pre-Network Network
Physical assets, money, job
assets money Overall contribution to
Status title, and family power community by way of skills,
intelligence, products, services
Value
Exchange Goods and currency Reputation and Relationships
Supply / Limited capacity (demand Over capacity (supply
Demand outweighs supply)
g pp y) outweighs demand)
g )
Other Less emphasis on absolute Honesty and transparency rule
Conditions truth due to limited feedback due to real time networked
real-time,
mechanism feedback mechanism
5 | | Digital Influence in a Network Economy

6.
Who is more influential?
versus
6 | | Digital Influence in a Network Economy

7.
Who is more influential?
Cash $33 Billion $22 Billion
Revenue $56 Billion $23 Billion
Earnings $22 Billion $9 Billion
Users (USA) 133 million 165 million
7 | | Digital Influence in a Network Economy

8.
8 | | Digital Influence in a Network Economy

9.
Balancing Goals in the Network Economy
versus
9 | | Digital Influence in a Network Economy

10.
A new class of Influentials is emerging
10 | | Digital Influence in a Network Economy

11.
Maximize reputation and
relationships to increase your
influence in the network
economy
11 | | Digital Influence in a Network Economy

12.
Define the brand you are building
Personal Brand Organization
g Personal
Re-Brand
• Once you start aggressively building a brand, it becomes difficult to change the brand as
O t t i l b ildi b d b diffi lt t h th b d
you risk losing links and any initial momentum in building fans
12 | | Digital Influence in a Network Economy

13.
Lead with purpose
Liberal Hyper-Connected
yp Hollywood’s
y
Leadership Community Most Hated
Gossiper
• In
I a world of overcapacity, don’t be average. Stand f something you are passionate
ld f it d ’t b St d for thi i t
about, and make it outstanding
13 | | Digital Influence in a Network Economy

14.
Build a valuable network
Network value is based on
• N b of connections
Number f ti
• Influence of connections
• Depth of relationships
Do You Need more…
• Connections (blogging, vlogging, twitter, conferences, forums, word-
of-mouth)
• Influential connections (interview leaders, invite speakers to
conferences)
• Deep relationships (coffee, do favors, collaborative p ojects, e oo s,
eep e at o s ps (co ee, a o s, co abo at e projects, eBooks,
get a mentor)
14 | | Digital Influence in a Network Economy

15.
Advance the conversation
• Listen to the existing conversation
• Share expert advice
• Tell stories
• Create an experience through visual cues
• Reference influencers and celebrities
• Build on ideas from the community
15 | | Digital Influence in a Network Economy

16.
Mobilize the community
• There’s enough ideas out there…we want action
• Get involved and get others involved
• Make if fulfilling
16 | | Digital Influence in a Network Economy

17.
Be transparent and honest
• Know who you are and manage one persona across platforms (use a
consistent voice)
• Be human … it’s ok if you have flaws
Dear JetBlue Customers,
,
We are sorry and embarrassed. But most of all, we are deeply sorry.
…we have published the JetBlue Airways Customer Bill of Rights — our
we
official commitment to you of how we will handle operational interruptions
going forward—including details of compensation.
17 | | Digital Influence in a Network Economy

18.
Measure success
• Those with influence are more likely to become a part of the
conversation through word-of-mouth and recommendation
– Blog traffic, community buzz, twitter followers, facebook fans
• N tP
Net Promoter S
t Score i a t diti
is traditional measure of recommendation
l f d ti
– Net Promoter Score = Promoters – Detractors
– On a scale of 1 – 10, “how likely are you to recommend”; 8 to 10 (promoters) and
1 to 5 (detractors)
• Overlay sphere of influence as promotion from an influencer has more
impact than promotion from a follower
i t th ti f f ll
– Consider Forrester.com/Groundswell’s definition of involvement (creators, critics,
joiners, etc)
– Consider Malcolm Gladwell s (Tipping Point) segmentation of innovators early
Gladwell’s innovators,
majority, late majority, laggarts
18 | | Digital Influence in a Network Economy

19.
Additional reading on digital influence
Blogging is a community Buzz, word-of-mouth To stand out to the crowd,
ruled by reciprocity. and influencers are you need to stand out from
Promoting other
o o go e increasingly important.
c eas g y po a the c o d Se e up
e crowd. Serve
bloggers will help you The most powerful form distinct purpose and own
build meaningful of building trust is it. Know what you are
relationships while through friendships good at and pursue it
extending your audience offline wholeheartedly—with
and peer network. authenticity, trust and
passion.
19 | | Digital Influence in a Network Economy

20.
Dave Capece
sparxoo.com Digital I fl
Di it l Influence in a
i
david@sparxoo.com Network Economy
twitter.com/sparxoo
November 15, 2009
20 | | Digital Influence in a Network Economy