Value creation through social media

Value creation through Social Media

(On twitter #AshridgeMBA)

Atal Malviya

ODiMaX Ltd.

Ashridge Business School, 06/06/2011

∗ Understanding Social Media

∗ Importance of social media

∗ Stakeholders in SM

∗ Value Creation through SM

∗ Financial

∗ Non financial

∗ Q & A

In this session

∗ How many of you have FB account?

∗ How many of you have Twitter account?

∗ How many of you have LinkedIn account?

How Many?

∗ Web 1.0 and Web 2.0

∗ User generated content

∗ Engagement

Social Media

" 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…

Importance of SM

∗ Is it another Dotcom bubble?

∗ How Social Media can help businesses?

∗ How Social Media can harm businesses?

∗ Is it another Dotcom bubble?

Some Qs -

Value Creation

SM Stakeholders

∗ Shareholders

∗ Customers/ Consumers

∗ Supplier

∗ Employees

∗ Other businesses

Value for Key Stakeholders

∗ How these are creating value through SM?

∗ Facebook

∗ Coca - cola

∗ Ashridge

∗ Consumer

Some Qs

∗ Radian6 – Financial

∗ Green Peace - Environmental

∗ HBR – Customer engagement

∗ Kenneth Cole – Value destroyed

∗ Manchester United – Corporate Governance

∗ Heathrow – Customer service

Some examples

∗ SM Enablers (Facebook, Twitter, LinkedIn etc.)

∗ SM Users (Coke, EasyJet, Delta Airline, GAP etc.)

∗ SM Mediators (Radian 6, ODiMaX, FarmVille etc.)

Key classification of companies on SM

∗ 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

Is FB $80 billion?

Is FB $80 billion?

∗ Customers profiling through followership

∗ Customers insight through engagement

∗ Customer advocates

Value through Consumers

∗ Real time free flow of information

∗ Financial value – Groupon

∗ Sharing of resources – DropBox

∗ Video

Value to Consumers

∗ You can reach me on –

∗ @Twitter – AtalMalviya

odimax

∗ @FB – facebook.com/AtalMalviya

∗ @Email – atal.malviya@gmail.comatal@odimax.com

∗ @Phone – Please email ☺.

Thanks