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The
   Business         Of Web 2.0
         Opportunities and Lessons




                                    The new B2C – Brand-to-Community –
                                    strategy, tactics and learnings from the
                                              Age of Conversation




                         Gavin Heaton // www.servantofchaos.com // servant@servantofchaos.com
© Gavin Heaton                                                                                  1
www.servantofchaos.com
People of earth …
© Gavin Heaton           2
www.servantofchaos.com
A powerful global
 conversation has begun.
© Gavin Heaton             3
www.servantofchaos.com
Through the Internet,
 people are discovering …
© Gavin Heaton              4
www.servantofchaos.com
and inventing new ways to
 share relevant knowledge
© Gavin Heaton               5
www.servantofchaos.com
… with blinding speed.




© Gavin Heaton            6
www.servantofchaos.com
As a direct result, markets
 are getting smarter …
© Gavin Heaton
www.servantofchaos.com
                               7
and getting smarter faster
 than most companies.
© Gavin Heaton                8
www.servantofchaos.com
1. Markets are conversations.




© Gavin Heaton                   9
www.servantofchaos.com
2. Markets consist of human
 beings, not demographic
 sectors.




© Gavin Heaton                 10
www.servantofchaos.com
12. There are no secrets.
© Gavin Heaton               11
www.servantofchaos.com
20. Companies need to
                   realize their markets are often
                   laughing. At them.




© Gavin Heaton                                  12
www.servantofchaos.com
26. Public Relations does not
 relate to the public.




© Gavin Heaton                   13
www.servantofchaos.com
29. Elvis said it best: quot;We
 can't go on together with
 suspicious minds.quot;




© Gavin Heaton                 14
www.servantofchaos.com
36. Companies must ask
 themselves where their
 corporate cultures end.
© Gavin Heaton
www.servantofchaos.com
                           15
52. Paranoia kills
 conversation.




© Gavin Heaton           16
www.servantofchaos.com
60. Markets want to talk to
 companies

© Gavin Heaton                 17
www.servantofchaos.com
67. As markets, as workers,
 we wonder why you're not
 listening …




© Gavin Heaton                 18
www.servantofchaos.com
You seem to be speaking a
 different language.
© Gavin Heaton               19
www.servantofchaos.com
68. The inflated self-important
 jargon you sling around …
 what's that got to do with us?




© Gavin Heaton                     20
www.servantofchaos.com
69. Maybe you're impressing
 your investors. Maybe you're
 impressing Wall Street …
© Gavin Heaton
www.servantofchaos.com
                                21
You're not impressing us.




© Gavin Heaton               22
www.servantofchaos.com
71. Your tired notions of quot;the
 marketquot; make our eyes glaze
 over.
© Gavin Heaton
www.servantofchaos.com
                                  23
72. We like this new
 marketplace much better.
 In fact, we are creating it.




© Gavin Heaton                  24
www.servantofchaos.com
73. You're invited, but it's our
                     world. Take your shoes off at
© Gavin Heaton
                     the door.
www.servantofchaos.com
                                                    25
75. If you want us to talk to
 you, tell us something. Make
 it something interesting for a
 change.
© Gavin Heaton
www.servantofchaos.com
                                  26
78. You want us to pay?




© Gavin Heaton             27
www.servantofchaos.com
… We want you to pay
 attention.




© Gavin Heaton           28
www.servantofchaos.com
82. Your product broke. Why?
© Gavin Heaton                  29
www.servantofchaos.com
84. We know some people
 from your company. They're
 pretty cool online …
© Gavin Heaton                30
www.servantofchaos.com
Do you have any more like
 that you're hiding? Can they
 come out and play?
© Gavin Heaton                  31
www.servantofchaos.com
87. We'd like it if you got
 what's going on here. That'd
 be real nice.
© Gavin Heaton                  32
www.servantofchaos.com
89. We have real power and
 we know it.

© Gavin Heaton                33
www.servantofchaos.com
95. We are waking up and
 linking to each other. We are
 watching. But we are not
 waiting.
© Gavin Heaton
www.servantofchaos.com
                                 34
Ten years on, the
               Cluetrain still sounds
               radical …




© Gavin Heaton                          35
www.servantofchaos.com
About Gavin Heaton




© Gavin Heaton                                36
www.servantofchaos.com
Hands up if you have
               heard of …




© Gavin Heaton                        37
www.servantofchaos.com
The Long Tail …




© Gavin Heaton                   38
www.servantofchaos.com
Open Source …




© Gavin Heaton                           39
www.servantofchaos.com
Mash ups …




© Gavin Heaton           40
www.servantofchaos.com
This is Web 2.0




© Gavin Heaton                             41
www.servantofchaos.com
Sites and Spaces




© Gavin Heaton                              42
www.servantofchaos.com
Tools // Platforms




© Gavin Heaton                                43
www.servantofchaos.com
And Many More …




© Gavin Heaton                             44
www.servantofchaos.com
http://theconversationprism.com/1650


© Gavin Heaton                                       45
www.servantofchaos.com
People Online?




                                http://www.businessweek.com/magazine/content/07_24/b4038405.htm


© Gavin Heaton                                                                         46
www.servantofchaos.com
Why is this important?




© Gavin Heaton             47
www.servantofchaos.com
Five Impacts of Social Media




      Experts coming under
    pressure from new voices
    who are early adopters of
         new technology




© Gavin Heaton                                                 48
www.servantofchaos.com
Five Impacts of Social Media




   New organisations emerging
  to deal with the social, cultural
       and political changes




© Gavin Heaton                                                   49
www.servantofchaos.com
Five Impacts of Social Media




   There is a struggle to revise
   the social and legal norms --
      especially in relation to
        intellectual property




© Gavin Heaton                                                    50
www.servantofchaos.com
Five Impacts of Social Media




   The concepts of identity and
   community are transformed




                                                                 http://darmano.typepad.com


© Gavin Heaton                                                                     51
www.servantofchaos.com
Five Impacts of Social Media




  New forms of language come
          into being




© Gavin Heaton                                            52
www.servantofchaos.com
Five Impacts of Social Media




                          Educators are pressured to
                         prepare their students for the
                            newly emerging world




© Gavin Heaton                                                      53
www.servantofchaos.com
© Gavin Heaton           54
www.servantofchaos.com
Elizabeth Eisenstein on the
                    invention of the printing press




© Gavin Heaton                                        55
www.servantofchaos.com
This goes beyond the question of
                      whether your company or brand
                       quot;should have a websitequot; or a
                   quot;blogquot;, but whether it is important for
                        you to be part of the web of
                    signification that creates the worlds
                                that we live in.


                                                     http://tinyurl.com/soc5impacts


© Gavin Heaton                                                            56
www.servantofchaos.com
Social networking sites
              now more popular than
              porn sites.
              Time, October 31, 2007




© Gavin Heaton                          57
www.servantofchaos.com
Increasingly networked
      but also individualised.




© Gavin Heaton                   58
www.servantofchaos.com
Individualism   Community
                         Independence     Relationships
                    Commercialism         Authenticity

      Disconnect between how we
      “express ourselves” and what
      we “value”




© Gavin Heaton                                            59
www.servantofchaos.com
ABC, the third commercial network
in the USA began broadcasting in
               1948




© Gavin Heaton                      60
www.servantofchaos.com
3 Networks x 60 years x 365 days
                      x 24 hours
                          =
             1.5 million hours programming




© Gavin Heaton                                61
www.servantofchaos.com
More than 1.5 million hours were
                         uploaded to YouTube in the last 6
                                      months




© Gavin Heaton                                               62
www.servantofchaos.com
Over 9000 hours per day
                         200,000 3 minute videos
                          For an audience <100
                            88% new/original




© Gavin Heaton                                     63
www.servantofchaos.com
“Dunbar Number”




                         http://en.wikipedia.org/wiki/Dunbar's_number


© Gavin Heaton                                              64
www.servantofchaos.com
Only 18% of TV ad campaigns
             generate positive ROI
               -- Ad Age/Accenture




© Gavin Heaton                         65
www.servantofchaos.com
The Auchterlonie Effect




                                       http://tinyurl.com/soceffect


© Gavin Heaton
www.servantofchaos.com
Social Capital




                                          http://tinyurl.com/soceffect


© Gavin Heaton
www.servantofchaos.com
Social Judgement




                                            http://tinyurl.com/soceffect


© Gavin Heaton
www.servantofchaos.com
“75 percent of Fortune 1000
                  companies with websites will have
                undertaken some kind of online social
                 networking initiative for marketing or
                customer relationship purposes in the
                              next year.”
                                    – Gartner, October 2008



                                                         http://gartner.com


© Gavin Heaton                                                    69
www.servantofchaos.com
But 50% of those campaigns will be
             classified as failures.
            -- Gartner, October 2008




                                           http://icanhascheezburger.com


© Gavin Heaton                                                  70
www.servantofchaos.com
http://www.oovoo.com


© Gavin Heaton                       71
www.servantofchaos.com
User Generated   User Generated   User Generated
               Content          Filtering      Distribution
                         User Generated Context




                                                  http://tinyurl.com/socsimplesocialmedia


© Gavin Heaton                                                                  72
www.servantofchaos.com
Forget the hype, this is business …




© Gavin Heaton                                             73
www.servantofchaos.com
Business-to-Business




                                                                              In B2B the value of what you
                                                                              have to offer has few customers
                                                                              BUT they are willing to pay a
                Value and Effectiveness




                                                                              premium.
                                                             Custom
                                                            Solutions




                                          Complexity                                                    Volume


                                               Enterprise               SME                     Consumer




© Gavin Heaton                                                                                                   74
www.servantofchaos.com
Business-to-Consumer




                                            The value of what you have to
                                            offer has many customers BUT
                                            the margins are incremental .
                Value and Effectiveness




                                                                                  Mass prod /
                                                                                   volume




                                          Complexity                                                   Volume


                                               Enterprise                   SME                 Consumer




© Gavin Heaton                                                                                                  75
www.servantofchaos.com
Enterprise 1.0 Sales


                                                                     Enterprise 1.0 firms are
                                                                  designed to service these two
                                                                  markets but they leave a gap in
                                                                            between.
                Value and Effectiveness




                                                             Custom                          Mass prod /
                                                            Solutions                         volume




                                          Complexity                                                              Volume


                                               Enterprise                      SME                         Consumer




© Gavin Heaton                                                                                                             76
www.servantofchaos.com
Enter Web 2.0




© Gavin Heaton                           77
www.servantofchaos.com
Convergence is Not About Technology




© Gavin Heaton                                                 78
www.servantofchaos.com
The Convergence of Markets


                                                                Knowledge Workers are no
                                                              longer happy to leave their rich
                                                                web experiences at home.
                Value and Effectiveness




                                                            B2B                                  B2C




                                          Complexity                                                          Volume


                                               Enterprise                  SME                         Consumer




© Gavin Heaton                                                                                                         79
www.servantofchaos.com
The Convergence of Markets


                                                                        The NEW B2C …
                                                                  Brand-to-Community extends
                                                                    from the consumer space
                                                                      through the enterprise
                Value and Effectiveness




                                                            B2B           Br2Comm              B2C




                                          Complexity                                                        Volume


                                               Enterprise                    SME                     Consumer




© Gavin Heaton                                                                                                       80
www.servantofchaos.com
Web 2.0 opens markets and
    changes the way that we interact.




© Gavin Heaton                          81
www.servantofchaos.com
It represents a fundamental shift
                         in the nature of value




© Gavin Heaton                                               82
www.servantofchaos.com
It’s no longer about what you make




© Gavin Heaton                                 83
www.servantofchaos.com
… but what you know and
                         who you connect to




© Gavin Heaton                                     84
www.servantofchaos.com
Peter Steiner’s famous
                         cartoon captured a
                         realization and a spirit
                         of the time.




© Gavin Heaton                                      85
www.servantofchaos.com
The “level playing field”
                         had finally arrived.




© Gavin Heaton                                       86
www.servantofchaos.com
Samples




                           http://www.servantofchaos.com/20
                           08/07/where-the-hell.html



   More than 6.8 million
   student reviews of 1
   million professors

                                                              http://ratemyprofessors.com


© Gavin Heaton                                                                  87
www.servantofchaos.com
Over 11 million views @
                         4:29 per view, 23 million
                         Google references




                                                     http://tinyurl.com/socwhereismatt


© Gavin Heaton                                                               88
www.servantofchaos.com
Continuous Digital Strategy

                                                  Objectives




                             Measurement                                 Audience




                         Commitment                                           Footprint




                                       Converse                Content




                                                                                      http://tinyurl.com/socdigitalstrategy


© Gavin Heaton                                                                                                    89
www.servantofchaos.com
Tim O’Reilly’s Web 2.0




                                        Blogs
                          Sharing                                  UGC




                                    Web2.0
                         Openness       Wikis                       Social
                                                                   Networks




                                     http://www.oreilly.com/pub/a/oreilly/tim/news/2005/09/30/what-is-web-20.html


© Gavin Heaton                                                                                          90
www.servantofchaos.com
The Machine is Us/ing Us




                                           Understand Web 2.0 in four
                                           minutes thanks to Prof Wesch




                                            http://www.youtube.com/watch?v=6gmP4nk0EOE


© Gavin Heaton                                                                 91
www.servantofchaos.com
Web as a Platform




                                             Let me tell you a story …




© Gavin Heaton                                                           92
www.servantofchaos.com
It Enables

     It started with a question …




                                                 http://www.drewsmarketingminute.com


© Gavin Heaton                                                              93
www.servantofchaos.com
Harnessing Collective Intelligence




                   What did we know?




                                                        http://www.ageofconversation.com


© Gavin Heaton                                                                  94
www.servantofchaos.com
And the Person of the Year




                                                 Crowdsourcing …




© Gavin Heaton                                                     95
www.servantofchaos.com
Continuous Beta




© Gavin Heaton                             96
www.servantofchaos.com
Data is the Next Intel Inside




© Gavin Heaton                                           97
www.servantofchaos.com
Lightweight Programming




                                            Usable technology does the
                                            hard work




                                               http://pipes.yahoo.com




© Gavin Heaton                                                           98
www.servantofchaos.com
Open Collaboration




     103 authors across the globe




                                                         Http://technomarketer.typepad.com


© Gavin Heaton                                                                    99
www.servantofchaos.com
Software Everywhere




      From idea to print in 3 months




                                                         http://lulu.com/ageofconversation


© Gavin Heaton                                                                  100
www.servantofchaos.com
Software Everywhere




                                               Hard, soft and
                                               eBooks




                                                http://collaborativeideation.com


© Gavin Heaton                                                        101
www.servantofchaos.com
Rich Experiences




      Technology enabled the
      project and the project
      spawned the connections




© Gavin Heaton                                     102
www.servantofchaos.com
http://mindblob.typepad.com


© Gavin Heaton                            103
www.servantofchaos.com
And We Raised Money




                                               Raised $10,000 for
                                               Variety in the first
                                               60 days




                                               http://varietychildrenscharity.org


© Gavin Heaton                                                        104
www.servantofchaos.com
Prescribed Textbook




                                               A number of US
                                               colleges prescribed
                                               the book as a text




© Gavin Heaton                                                  105
www.servantofchaos.com
AdAge Feature




                                         The book was
                                         featured in the
                                         AdAge Bookstore




© Gavin Heaton                                             106
www.servantofchaos.com
And Again in 2008




                                             An even stronger
                                             band of
                                             contributors this
                                             year




© Gavin Heaton                                                   107
www.servantofchaos.com
Lessons We Learned and
                           Things to Remember




© Gavin Heaton                                    108
www.servantofchaos.com
Everything is
                         amplified




© Gavin Heaton                           109
www.servantofchaos.com
Your business
                         ecosystem is the
                         consequence of
                         relationships




© Gavin Heaton                              110
www.servantofchaos.com
It is subject to
                         unplanned futures
                         … or the ebb and
                         flow of trends and
                         events




© Gavin Heaton                                111
www.servantofchaos.com
There are no
                         boundaries




© Gavin Heaton                          112
www.servantofchaos.com
Everything is linked
                         to everything (and
                         everyone) else




© Gavin Heaton                                  113
www.servantofchaos.com
Have a large funnel
                         and focus on a goal.




© Gavin Heaton                                  114
www.servantofchaos.com
How Did It Work?




© Gavin Heaton                              115
www.servantofchaos.com
Influencers and Connectors




                                                      It’s about reputation,
                                                      authority and
                                                      participation




                                                          http://tinyurl.com/socweakties


© Gavin Heaton                                                                116
www.servantofchaos.com
Influencers and Connectors




  Which gives your opinion
  context, weight and
  credibility




© Gavin Heaton                                            117
www.servantofchaos.com
Influence Ripples




                                             And ripples across
                                             the internet




                                                          http://darmano.typepad.com


© Gavin Heaton                                                             118
www.servantofchaos.com
Measurement




           But can you measure it?




© Gavin Heaton                                     119
www.servantofchaos.com
Measurement


              Analytics + Page Rank +
              Feeds + Time with Brand
              + Volume of Comments




© Gavin Heaton                                        120
www.servantofchaos.com
Return on Investment?


                         Determine the R first.
                    Social Media (and all marketing)
                  should be aligned with your business
                                strategy.
                               Listen first.
                    Understand audience behaviour.
                                Get help.



© Gavin Heaton                                           121
www.servantofchaos.com
Getting Started




                                           It’s a conversation that
                                           you start by LISTENING




© Gavin Heaton                                                  122
www.servantofchaos.com
Licensing/Attributions
      Flickr Images:                                Ideas:
      http://www.flickr.com/photos/chicadecasa/     Tim O’Reilly: http://www.oreilly.com
      http://www.flickr.com/photos/enviale/         David Armano: http://darmano.typepad.com
      http://www.flickr.com/photos/ryanmft/         Drew McLellan: http://www.drewsmarketingminute.com
      http://www.flickr.com/photos/redvers/         Sean Howard: http://www.craphammer.ca
      http://www.flickr.com/photos/articnomad/      Geoffrey Moore: http://geoffmoore.blogs.com
      http://www.flickr.com/photos/modadimagno/     Joseph Jaffe: http://www.jaffejuice.com
      http://www.flickr.com/photos/st3f4n/          Katie Chatfield: http://www.getshouty.com
      http://www.flickr.com/photos/jluna/
      http://www.flickr.com/photos/calanan/         See my blogroll @ servantofchaos.com
      http://www.flickr.com/photos/austinellison/
      http://www.flickr.com/photos/spittal/         Get this presentation:
      http://www.flickr.com/photos/jepoirrier/      www.slideshare.net/servantofchaos
      http://www.flickr.com/photos/edtarwinski/
      http://www.flickr.com/photos/thomashawk/
      http://www.flickr.com/photos/jonnybaker/




© Gavin Heaton                                                                                           123
www.servantofchaos.com
Flickr

                  Gadl:
                  http://www.flickr.com/photos/gadl/274460455/


                                                                                             Obo Bobolina
                                                                                             http://www.flickr.com/photos/obo-bobolina/1544393823/

                   Driph
                   http://www.flickr.com/photos/driph/2534655305/
                                                                                                Eric Rice
                                                                                                http://www.flickr.com/photos/ericrice/3862126/


                    Pingnews.com
                    http://www.flickr.com/photos/pingnews/473141678/


                     Lincolnian
                     http://www.flickr.com/photos/lincolnian/1829986285/




                         ProfessorMortis
                         http://www.flickr.com/photos/professormortis/2279725463/




                         James Good
                         http://www.flickr.com/photos/jamesgood/363013819/




© Gavin Heaton                                                                                                                             124
www.servantofchaos.com

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The Business Of Web 2.0 V6

  • 1. The Business Of Web 2.0 Opportunities and Lessons The new B2C – Brand-to-Community – strategy, tactics and learnings from the Age of Conversation Gavin Heaton // www.servantofchaos.com // servant@servantofchaos.com © Gavin Heaton 1 www.servantofchaos.com
  • 2. People of earth … © Gavin Heaton 2 www.servantofchaos.com
  • 3. A powerful global conversation has begun. © Gavin Heaton 3 www.servantofchaos.com
  • 4. Through the Internet, people are discovering … © Gavin Heaton 4 www.servantofchaos.com
  • 5. and inventing new ways to share relevant knowledge © Gavin Heaton 5 www.servantofchaos.com
  • 6. … with blinding speed. © Gavin Heaton 6 www.servantofchaos.com
  • 7. As a direct result, markets are getting smarter … © Gavin Heaton www.servantofchaos.com 7
  • 8. and getting smarter faster than most companies. © Gavin Heaton 8 www.servantofchaos.com
  • 9. 1. Markets are conversations. © Gavin Heaton 9 www.servantofchaos.com
  • 10. 2. Markets consist of human beings, not demographic sectors. © Gavin Heaton 10 www.servantofchaos.com
  • 11. 12. There are no secrets. © Gavin Heaton 11 www.servantofchaos.com
  • 12. 20. Companies need to realize their markets are often laughing. At them. © Gavin Heaton 12 www.servantofchaos.com
  • 13. 26. Public Relations does not relate to the public. © Gavin Heaton 13 www.servantofchaos.com
  • 14. 29. Elvis said it best: quot;We can't go on together with suspicious minds.quot; © Gavin Heaton 14 www.servantofchaos.com
  • 15. 36. Companies must ask themselves where their corporate cultures end. © Gavin Heaton www.servantofchaos.com 15
  • 16. 52. Paranoia kills conversation. © Gavin Heaton 16 www.servantofchaos.com
  • 17. 60. Markets want to talk to companies © Gavin Heaton 17 www.servantofchaos.com
  • 18. 67. As markets, as workers, we wonder why you're not listening … © Gavin Heaton 18 www.servantofchaos.com
  • 19. You seem to be speaking a different language. © Gavin Heaton 19 www.servantofchaos.com
  • 20. 68. The inflated self-important jargon you sling around … what's that got to do with us? © Gavin Heaton 20 www.servantofchaos.com
  • 21. 69. Maybe you're impressing your investors. Maybe you're impressing Wall Street … © Gavin Heaton www.servantofchaos.com 21
  • 22. You're not impressing us. © Gavin Heaton 22 www.servantofchaos.com
  • 23. 71. Your tired notions of quot;the marketquot; make our eyes glaze over. © Gavin Heaton www.servantofchaos.com 23
  • 24. 72. We like this new marketplace much better. In fact, we are creating it. © Gavin Heaton 24 www.servantofchaos.com
  • 25. 73. You're invited, but it's our world. Take your shoes off at © Gavin Heaton the door. www.servantofchaos.com 25
  • 26. 75. If you want us to talk to you, tell us something. Make it something interesting for a change. © Gavin Heaton www.servantofchaos.com 26
  • 27. 78. You want us to pay? © Gavin Heaton 27 www.servantofchaos.com
  • 28. … We want you to pay attention. © Gavin Heaton 28 www.servantofchaos.com
  • 29. 82. Your product broke. Why? © Gavin Heaton 29 www.servantofchaos.com
  • 30. 84. We know some people from your company. They're pretty cool online … © Gavin Heaton 30 www.servantofchaos.com
  • 31. Do you have any more like that you're hiding? Can they come out and play? © Gavin Heaton 31 www.servantofchaos.com
  • 32. 87. We'd like it if you got what's going on here. That'd be real nice. © Gavin Heaton 32 www.servantofchaos.com
  • 33. 89. We have real power and we know it. © Gavin Heaton 33 www.servantofchaos.com
  • 34. 95. We are waking up and linking to each other. We are watching. But we are not waiting. © Gavin Heaton www.servantofchaos.com 34
  • 35. Ten years on, the Cluetrain still sounds radical … © Gavin Heaton 35 www.servantofchaos.com
  • 36. About Gavin Heaton © Gavin Heaton 36 www.servantofchaos.com
  • 37. Hands up if you have heard of … © Gavin Heaton 37 www.servantofchaos.com
  • 38. The Long Tail … © Gavin Heaton 38 www.servantofchaos.com
  • 39. Open Source … © Gavin Heaton 39 www.servantofchaos.com
  • 40. Mash ups … © Gavin Heaton 40 www.servantofchaos.com
  • 41. This is Web 2.0 © Gavin Heaton 41 www.servantofchaos.com
  • 42. Sites and Spaces © Gavin Heaton 42 www.servantofchaos.com
  • 43. Tools // Platforms © Gavin Heaton 43 www.servantofchaos.com
  • 44. And Many More … © Gavin Heaton 44 www.servantofchaos.com
  • 46. People Online? http://www.businessweek.com/magazine/content/07_24/b4038405.htm © Gavin Heaton 46 www.servantofchaos.com
  • 47. Why is this important? © Gavin Heaton 47 www.servantofchaos.com
  • 48. Five Impacts of Social Media Experts coming under pressure from new voices who are early adopters of new technology © Gavin Heaton 48 www.servantofchaos.com
  • 49. Five Impacts of Social Media New organisations emerging to deal with the social, cultural and political changes © Gavin Heaton 49 www.servantofchaos.com
  • 50. Five Impacts of Social Media There is a struggle to revise the social and legal norms -- especially in relation to intellectual property © Gavin Heaton 50 www.servantofchaos.com
  • 51. Five Impacts of Social Media The concepts of identity and community are transformed http://darmano.typepad.com © Gavin Heaton 51 www.servantofchaos.com
  • 52. Five Impacts of Social Media New forms of language come into being © Gavin Heaton 52 www.servantofchaos.com
  • 53. Five Impacts of Social Media Educators are pressured to prepare their students for the newly emerging world © Gavin Heaton 53 www.servantofchaos.com
  • 54. © Gavin Heaton 54 www.servantofchaos.com
  • 55. Elizabeth Eisenstein on the invention of the printing press © Gavin Heaton 55 www.servantofchaos.com
  • 56. This goes beyond the question of whether your company or brand quot;should have a websitequot; or a quot;blogquot;, but whether it is important for you to be part of the web of signification that creates the worlds that we live in. http://tinyurl.com/soc5impacts © Gavin Heaton 56 www.servantofchaos.com
  • 57. Social networking sites now more popular than porn sites. Time, October 31, 2007 © Gavin Heaton 57 www.servantofchaos.com
  • 58. Increasingly networked but also individualised. © Gavin Heaton 58 www.servantofchaos.com
  • 59. Individualism Community Independence Relationships Commercialism Authenticity Disconnect between how we “express ourselves” and what we “value” © Gavin Heaton 59 www.servantofchaos.com
  • 60. ABC, the third commercial network in the USA began broadcasting in 1948 © Gavin Heaton 60 www.servantofchaos.com
  • 61. 3 Networks x 60 years x 365 days x 24 hours = 1.5 million hours programming © Gavin Heaton 61 www.servantofchaos.com
  • 62. More than 1.5 million hours were uploaded to YouTube in the last 6 months © Gavin Heaton 62 www.servantofchaos.com
  • 63. Over 9000 hours per day 200,000 3 minute videos For an audience <100 88% new/original © Gavin Heaton 63 www.servantofchaos.com
  • 64. “Dunbar Number” http://en.wikipedia.org/wiki/Dunbar's_number © Gavin Heaton 64 www.servantofchaos.com
  • 65. Only 18% of TV ad campaigns generate positive ROI -- Ad Age/Accenture © Gavin Heaton 65 www.servantofchaos.com
  • 66. The Auchterlonie Effect http://tinyurl.com/soceffect © Gavin Heaton www.servantofchaos.com
  • 67. Social Capital http://tinyurl.com/soceffect © Gavin Heaton www.servantofchaos.com
  • 68. Social Judgement http://tinyurl.com/soceffect © Gavin Heaton www.servantofchaos.com
  • 69. “75 percent of Fortune 1000 companies with websites will have undertaken some kind of online social networking initiative for marketing or customer relationship purposes in the next year.” – Gartner, October 2008 http://gartner.com © Gavin Heaton 69 www.servantofchaos.com
  • 70. But 50% of those campaigns will be classified as failures. -- Gartner, October 2008 http://icanhascheezburger.com © Gavin Heaton 70 www.servantofchaos.com
  • 71. http://www.oovoo.com © Gavin Heaton 71 www.servantofchaos.com
  • 72. User Generated User Generated User Generated Content Filtering Distribution User Generated Context http://tinyurl.com/socsimplesocialmedia © Gavin Heaton 72 www.servantofchaos.com
  • 73. Forget the hype, this is business … © Gavin Heaton 73 www.servantofchaos.com
  • 74. Business-to-Business In B2B the value of what you have to offer has few customers BUT they are willing to pay a Value and Effectiveness premium. Custom Solutions Complexity Volume Enterprise SME Consumer © Gavin Heaton 74 www.servantofchaos.com
  • 75. Business-to-Consumer The value of what you have to offer has many customers BUT the margins are incremental . Value and Effectiveness Mass prod / volume Complexity Volume Enterprise SME Consumer © Gavin Heaton 75 www.servantofchaos.com
  • 76. Enterprise 1.0 Sales Enterprise 1.0 firms are designed to service these two markets but they leave a gap in between. Value and Effectiveness Custom Mass prod / Solutions volume Complexity Volume Enterprise SME Consumer © Gavin Heaton 76 www.servantofchaos.com
  • 77. Enter Web 2.0 © Gavin Heaton 77 www.servantofchaos.com
  • 78. Convergence is Not About Technology © Gavin Heaton 78 www.servantofchaos.com
  • 79. The Convergence of Markets Knowledge Workers are no longer happy to leave their rich web experiences at home. Value and Effectiveness B2B B2C Complexity Volume Enterprise SME Consumer © Gavin Heaton 79 www.servantofchaos.com
  • 80. The Convergence of Markets The NEW B2C … Brand-to-Community extends from the consumer space through the enterprise Value and Effectiveness B2B Br2Comm B2C Complexity Volume Enterprise SME Consumer © Gavin Heaton 80 www.servantofchaos.com
  • 81. Web 2.0 opens markets and changes the way that we interact. © Gavin Heaton 81 www.servantofchaos.com
  • 82. It represents a fundamental shift in the nature of value © Gavin Heaton 82 www.servantofchaos.com
  • 83. It’s no longer about what you make © Gavin Heaton 83 www.servantofchaos.com
  • 84. … but what you know and who you connect to © Gavin Heaton 84 www.servantofchaos.com
  • 85. Peter Steiner’s famous cartoon captured a realization and a spirit of the time. © Gavin Heaton 85 www.servantofchaos.com
  • 86. The “level playing field” had finally arrived. © Gavin Heaton 86 www.servantofchaos.com
  • 87. Samples http://www.servantofchaos.com/20 08/07/where-the-hell.html More than 6.8 million student reviews of 1 million professors http://ratemyprofessors.com © Gavin Heaton 87 www.servantofchaos.com
  • 88. Over 11 million views @ 4:29 per view, 23 million Google references http://tinyurl.com/socwhereismatt © Gavin Heaton 88 www.servantofchaos.com
  • 89. Continuous Digital Strategy Objectives Measurement Audience Commitment Footprint Converse Content http://tinyurl.com/socdigitalstrategy © Gavin Heaton 89 www.servantofchaos.com
  • 90. Tim O’Reilly’s Web 2.0 Blogs Sharing UGC Web2.0 Openness Wikis Social Networks http://www.oreilly.com/pub/a/oreilly/tim/news/2005/09/30/what-is-web-20.html © Gavin Heaton 90 www.servantofchaos.com
  • 91. The Machine is Us/ing Us Understand Web 2.0 in four minutes thanks to Prof Wesch http://www.youtube.com/watch?v=6gmP4nk0EOE © Gavin Heaton 91 www.servantofchaos.com
  • 92. Web as a Platform Let me tell you a story … © Gavin Heaton 92 www.servantofchaos.com
  • 93. It Enables It started with a question … http://www.drewsmarketingminute.com © Gavin Heaton 93 www.servantofchaos.com
  • 94. Harnessing Collective Intelligence What did we know? http://www.ageofconversation.com © Gavin Heaton 94 www.servantofchaos.com
  • 95. And the Person of the Year Crowdsourcing … © Gavin Heaton 95 www.servantofchaos.com
  • 96. Continuous Beta © Gavin Heaton 96 www.servantofchaos.com
  • 97. Data is the Next Intel Inside © Gavin Heaton 97 www.servantofchaos.com
  • 98. Lightweight Programming Usable technology does the hard work http://pipes.yahoo.com © Gavin Heaton 98 www.servantofchaos.com
  • 99. Open Collaboration 103 authors across the globe Http://technomarketer.typepad.com © Gavin Heaton 99 www.servantofchaos.com
  • 100. Software Everywhere From idea to print in 3 months http://lulu.com/ageofconversation © Gavin Heaton 100 www.servantofchaos.com
  • 101. Software Everywhere Hard, soft and eBooks http://collaborativeideation.com © Gavin Heaton 101 www.servantofchaos.com
  • 102. Rich Experiences Technology enabled the project and the project spawned the connections © Gavin Heaton 102 www.servantofchaos.com
  • 103. http://mindblob.typepad.com © Gavin Heaton 103 www.servantofchaos.com
  • 104. And We Raised Money Raised $10,000 for Variety in the first 60 days http://varietychildrenscharity.org © Gavin Heaton 104 www.servantofchaos.com
  • 105. Prescribed Textbook A number of US colleges prescribed the book as a text © Gavin Heaton 105 www.servantofchaos.com
  • 106. AdAge Feature The book was featured in the AdAge Bookstore © Gavin Heaton 106 www.servantofchaos.com
  • 107. And Again in 2008 An even stronger band of contributors this year © Gavin Heaton 107 www.servantofchaos.com
  • 108. Lessons We Learned and Things to Remember © Gavin Heaton 108 www.servantofchaos.com
  • 109. Everything is amplified © Gavin Heaton 109 www.servantofchaos.com
  • 110. Your business ecosystem is the consequence of relationships © Gavin Heaton 110 www.servantofchaos.com
  • 111. It is subject to unplanned futures … or the ebb and flow of trends and events © Gavin Heaton 111 www.servantofchaos.com
  • 112. There are no boundaries © Gavin Heaton 112 www.servantofchaos.com
  • 113. Everything is linked to everything (and everyone) else © Gavin Heaton 113 www.servantofchaos.com
  • 114. Have a large funnel and focus on a goal. © Gavin Heaton 114 www.servantofchaos.com
  • 115. How Did It Work? © Gavin Heaton 115 www.servantofchaos.com
  • 116. Influencers and Connectors It’s about reputation, authority and participation http://tinyurl.com/socweakties © Gavin Heaton 116 www.servantofchaos.com
  • 117. Influencers and Connectors Which gives your opinion context, weight and credibility © Gavin Heaton 117 www.servantofchaos.com
  • 118. Influence Ripples And ripples across the internet http://darmano.typepad.com © Gavin Heaton 118 www.servantofchaos.com
  • 119. Measurement But can you measure it? © Gavin Heaton 119 www.servantofchaos.com
  • 120. Measurement Analytics + Page Rank + Feeds + Time with Brand + Volume of Comments © Gavin Heaton 120 www.servantofchaos.com
  • 121. Return on Investment? Determine the R first. Social Media (and all marketing) should be aligned with your business strategy. Listen first. Understand audience behaviour. Get help. © Gavin Heaton 121 www.servantofchaos.com
  • 122. Getting Started It’s a conversation that you start by LISTENING © Gavin Heaton 122 www.servantofchaos.com
  • 123. Licensing/Attributions Flickr Images: Ideas: http://www.flickr.com/photos/chicadecasa/ Tim O’Reilly: http://www.oreilly.com http://www.flickr.com/photos/enviale/ David Armano: http://darmano.typepad.com http://www.flickr.com/photos/ryanmft/ Drew McLellan: http://www.drewsmarketingminute.com http://www.flickr.com/photos/redvers/ Sean Howard: http://www.craphammer.ca http://www.flickr.com/photos/articnomad/ Geoffrey Moore: http://geoffmoore.blogs.com http://www.flickr.com/photos/modadimagno/ Joseph Jaffe: http://www.jaffejuice.com http://www.flickr.com/photos/st3f4n/ Katie Chatfield: http://www.getshouty.com http://www.flickr.com/photos/jluna/ http://www.flickr.com/photos/calanan/ See my blogroll @ servantofchaos.com http://www.flickr.com/photos/austinellison/ http://www.flickr.com/photos/spittal/ Get this presentation: http://www.flickr.com/photos/jepoirrier/ www.slideshare.net/servantofchaos http://www.flickr.com/photos/edtarwinski/ http://www.flickr.com/photos/thomashawk/ http://www.flickr.com/photos/jonnybaker/ © Gavin Heaton 123 www.servantofchaos.com
  • 124. Flickr Gadl: http://www.flickr.com/photos/gadl/274460455/ Obo Bobolina http://www.flickr.com/photos/obo-bobolina/1544393823/ Driph http://www.flickr.com/photos/driph/2534655305/ Eric Rice http://www.flickr.com/photos/ericrice/3862126/ Pingnews.com http://www.flickr.com/photos/pingnews/473141678/ Lincolnian http://www.flickr.com/photos/lincolnian/1829986285/ ProfessorMortis http://www.flickr.com/photos/professormortis/2279725463/ James Good http://www.flickr.com/photos/jamesgood/363013819/ © Gavin Heaton 124 www.servantofchaos.com