Can we say that social media were the drivers of a second ICT revolution? Apparently so. In this presentation I try to show that there are many lessons that we can draw from previous disruptive changes in the industry, but that companies need to be outliers and define new business models and new business processes to leverage the advantaged offered them by new social medias. Various Italian and American cases are cited, as well as research in the field. Useful for your intro class on internet marketing.

1. The Future is Now
Innovation, New and Old Business models
facing the Social Media Revolution
Alberto Di Minin
In collaboration with
Elena Casprini and Leonardo Dri
Istituto di Management
Scuola Superiore Sant’Anna
www.diminin.it
© 2012 Alberto Di Minin

2. Digital Revolutions
© 2012 Alberto Di Minin

3. Facing a Social Revolution
(…way beyond business)
© 2012 Alberto Di Minin

4. The real embrace
© 2012 Alberto Di Minin

5. A life of its own
© 2012 Alberto Di Minin

6. © 2012 Alberto Di Minin

7. Rick Wion:
McDonald's social media director
We saw
this right
It wasn’t
2Weaway
hours
working!
pulled it
down
And most importantly, Rick..
What do you mean:
“we pulled it down??”
© 2012 Alberto Di Minin

8. Let’s Review what Happened
during the 1st Digital Revolution
© 2012 Alberto Di Minin

9. A Good Reading for the 1st Revolution
– Analog Economics Still Apply -
Shapiro, Carl, and Hal R. Varian. Information rules:
a strategic guide to the network economy. Harvard Business Press, 1998.

10. Another lesson for the 1st Revolution
– IT is an enabling technology -
Carr, Nicholas G. Does IT matter?: information technology and the corrosion of
competitive advantage. Harvard Business Press, 2004.

11. Three types of strategies back
then…
Deny
React
Reinvent
© 2012 Alberto Di Minin

12. Three types of strategies back
then…
React
© 2012 Alberto Di Minin

13. Three types of strategies back
then…
Reinvent
© 2012 Alberto Di Minin

14. How about the Second Revolution?
© 2012 Alberto Di Minin

15. Manuel Castells: Father of the
Network Society
CONNECTIVITY
CONTENT
© 2012 Alberto Di Minin

16. Deny Content?
Three days of social media silence by Costa and
Carnival
© 2012 Alberto Di Minin

17. Or not Deny?
BP starts an open campaign
requesting ideas for the Oil Spill
thousands of ideas
within days….
The suggestion box itself
started SPILLING!
© 2012 Alberto Di Minin

18. User Led Innovation VON HIPPEL
True innovation sits at the
intersection between Users and
Producers
Means to prevent such
interaction are obstacles to
innoveation.
© 2012 Alberto Di Minin

19. Reinvent T-Shirts
© 2012 Alberto Di Minin

20. Neo Tribalism
Consumption & Individualism + Use value
type of value Tribalism + Linking value
Consumption Individualism
behaviour
Neo-tribalism
1950s XXIst Century
View Modernity Post-modernity
Cova, B. (1995) Community and consumption. Towards a definition of the “linking value”
of product or services. European Journal of Marketing 31 (34): 297-316

21. Attempting to React

22. Chen, Y., S. Fay, et al. (2011). The role of Marketing in social media: how
online consumer reviews evolve. Journal of Interactive Marketing 25: 85-94.
Publicize and share
WOM
Psychological motivations product experiences
lead consumers to post and opinions
Customer
online reviews
reviews
SOCIAL MEDIA
Impact on product
sales
Firm level
Impact on marketing
strategies
© 2012 Alberto Di Minin

23. React… maybe not like this
© 2012 Alberto Di Minin

24. React: Review your BM
Wroe Alderson (1898–1965) © 2012 Alberto Di Minin

25. Towards a New Marketing Mix
Web Experience
“ The Web Experience is the consumer’s
impression about the online company”
(Constantinides, p. 60)
S S
SCOPE SYNERGY
Traditional Marketing Mix
(Borden, 1964)
Operational VS Strategic Tool
The Web Marketing Mix Model
3 levels:
S S
Strategic
SITE SYSTEM
Operational
Organisational
+
Other issues
E. Constantinides (2002), The 4S Web-Marketing Mix Model,
Electronic Commerce Research and Applications, Vol. 1, pp. 57-76

26. Reinvent Music
© 2012 Alberto Di Minin

27. Reinvent Investment
© 2012 Alberto Di Minin

28. Outliers: the history of success
Gladwell, Malcolm.
Outliers: The story of success. Little, Brown, 2008.

29. Alberto Di Minin
In collaboration with
Elena Casprini and Leonardo Dri
Istituto di Management
Scuola Superiore Sant’Anna
www.diminin.it
Grazie per l’attenzione!
DON’T FORGET THE PAST
& BE AN OUTLIER FOR THE FUTURE
© 2012 Alberto Di Minin