Esko Kilpi On Interactive Value Creation
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The document discusses new perspectives on value creation and marketing in a social media context. It argues that 1) value is created through how customers use products, not by companies, 2) contexts shape value creation differently, and 3) conversations between connected people drive markets more than traditional demographics. It provides five principles for companies to distribute knowledge and integrate with users through open platforms focused on conversations rather than content or messages. Companies should take a human approach by understanding purposes rather than locations on the web and structure participation to increase communication value in networks.
Esko Kilpi On Interactive Value Creation
- 1. interactive value creation and social media Esko Kilpi 1
- 2. companies don’t create value, but... 2
- 3. ...the way customers use the product creates value - more value or less value 3
- 4. each situation (context) is somewhat the same, somewhat different. same products, but different value 4
- 5. do you know how much, or how little value is created? 5
- 6. there are similarities in our way of thinking about value creation and markets. let’s look at mainstream thinking 6
- 7. traditional markets consist of independent, separated people. we choose particular demographics because we think these people are responsive to the same message 7
- 8. the message then makes the market - or does it? 8
- 9. a market is really a network with connecting nodes 9
- 10. the nodes are people 10
- 11. and the connections are conversations 11
- 12. conversations are always live and always changing 12
- 13. you can’t store them, you can’t effectively study or measure them afterwards. you have to participate 13
- 14. where and when do the conversations that matter to you take place? 14
- 15. there is a need for a change of mind what comes to value creation and perhaps also what comes to marketing! 15
- 16. live context is everything. contexts form groups. value creation and markets should be seen as network phenomena 16
- 17. intentions are driving value creation and marketing. “reverse advertising” 17
- 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 18
- 19. taking intentions of people seriously. what does it mean to be people centric? 19
- 20. it is about network relationships, and reputation, forwarding and recommendation architectures 20
- 21. technically it is about transparent, open platforms and a change of focus from servers (pages) to clients and applications. 21
- 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 22
- 23. examples of this are iPhone applications as well as Firefox and Google Chrome extensions 23
- 24. then what should we do? 24
- 25. principle one: distributing and integrating at the same time 25
- 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 26
- 27. value creation is dependent on the value of connections in the network 27
- 28. links are thus even more important than information in any given context 28
- 29. being able to connect with other users is often more important than being able to connect with the company 29
- 30. principle two: changing the focus 30
- 31. from content to conversations from one way messages to interaction from storage to real time 31
- 32. most importantly don’t create walled gardens - intranets and extranets 32
- 33. principle three: giving organisations a human face 33
- 34. 34
- 35. principle four: in the physical world there are places. in the digital there are only purposes 35
- 36. the primary metaphor we used for understanding the web was location. we “go” to a web “site” using an “address” 36
- 37. portals are rarely successful in really giving people what they want. we just can’t know what is needed in advance 37
- 38. interactive value creation is about context spesific participation in responsive, meaningful way 38
- 39. principle five: creating a social media strategy 39
- 40. all products are understood as services 40
- 41. all services take place in groups, in networks - that are most often not initiated or controlled by the company 41
- 42. but there can be a structured approach to participation 42
- 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 43
- 44. and you can and you should plan how to increase the value of communication 44
- 45. more asynchronous more interactive more closed more open more “for your information” more synchronous 45
- 46. more information from esko@kilpi.fi 46
- 47. www.kilpi.fi photos by Jussi Mononen 47