Corporate Website 1.0 is dead. Long Live Corporate Website 2.0: Consumer Co Creation

http://windchimesindia.wordpress.com/2008/11/22/corporatewebsite/#comment-322
Social media is an interesting and yet very lucid context that exalts the power of networking forums to promote ideas , communicate and debate. Happened to browse through Nimesh Shah's blog on Corporate Website 2.0 as a interactive social medium to promote the brand, company and products. Original link as given in the beginniing. This is my extension of the Corporate website 2.0 concept into something that i call consumer co creation.


Hi
As promised Nimesh, i would like to add onto Corporate Website 2.0 idea. I would call this “Co Creating with the Consumer”.
Technology is evolving fast and (if not for the Recessionary mood), PE and other moneys are available for ideas that deliver better solutions at a lower cost to consumers. This has a far reaching effect in terms of Technology ROI. For any organization to milk revenues out of a technology investment, it takes time. However with the redundancy rates of technology it becomes difficult to forecast when a disrutive technology would make an existing one a thing of the past. Thus Organizations need to build stickiness around their products/services. This would also help them beat the fragmentation economics in the market and get a premium over others.This is where a Corporate website 2.0 idea can be extended to something that is called the “consumer co creation”. Every product / service has a base element and a Value added part to it. Normally product/business managers work out the best fit product/solution which they think works best in the market. However the corporate website can be engineered that they provide the “base” and allow the consumer to choose his “value added” services. For the value adds their would be a premium charge. At the end of the day the consumer is satisfied because the product is order made according to his needs. The example in question is Dell which makes computers that have been oredered by the consumers. I am privy to many companies that make a product with a long luandry lists of “firsts” and “bests” and yet the consumer buying them only uses 10% of the “full monty”. The conusmer thus pays money for stuff he doesnot want and may or may not get the stuff he wants in the product hes paid a fortune for.Increasingly companies identify this but there is not enough that has been done to make this idea see the light of the day…

What is the biggest challenge Telcos currently face?

This was amswered as a part of a discussion in LinkedIn. http://www.linkedin.com/answers?viewQuestion=&questionID=373970&askerID=20831362&browseIdx=10&sik=1227942408141&goback=%2Easr_2_1227942408141&report%2Esuccess=vfLh7ZiQxNtkwQoO3efsNN1zAgQ8WXmCT24lKBBmlHq_pfcN7JydQUoVP_zdv4b8

The Biggest challenges faced by Telcos primarily are two in nature:

Faster technology cycles impacting corresponding business ROIs adversely
Creating stickiness thru personalization of products

New technologies enable users to do more at lesser price commoditizing the older technology. Earlier it was voice, text and some data that one was primarily dealing with. With the advent of 3G, 3.5G, Web 2.0 technologies voice and text have seen rapid commoditization. Not only are we talking of more advanced technology within the vertical, but we also have competing medium, most notably internet which is democratizing a lot of services.

In this kind of rapid technology cycle, Telcos face stand offs on the kind of technology that they would invest in and how much returns in future terms would they be expecting out of the those investments. Such calculations tend to go haywire when ever another disruptive technology takes over. Telcos may fail to make the returns they expected from a particular technology / product. In that kind of a scenario you would often find a large Telco suddenly becoming irrelevant because the business models are based on revenues and profits not technology cycles. Smaller and nimbler competitors bring in the new technology, create the market and gain dominance. Sometimes these new players get acquired by the market leader which provides them a suitable platform into the new technology.
Thus Technological obsolescence may impact RoIs adversely.

Content, Context and Services are the next big stories. Cumulatively we could call them personalization. Telcos that master these would be able to make business out of web 2.0, 3.0 and the others. However, that is easier said than done. It is difficult to ascertain consumer price elasticity for these services. It is difficult to understand the nature of revenue flows and the market potential and then there always is consumer inertia to move into these services. However with the eminent fragmentation of the market and commoditization of businesses, this is the essential piece of the jigsaw which will create the stickiness in consumption. Google, RIM Blackberry and Apple have made the first splash in this aspect and competition in here is set to amplify with Nokia and other following suit.

Can the internet and social media change a B2C company’s group structure?

http://www.linkedin.com/groupAnswers?viewQuestionAndAnswers=&gid=102576&discussionID=445139&commentID=592971&goback=%2Ehom%2Eanh_102576#commentID_592971 .. in response to a question posted in Linked In

I think it already is.
The supply chain will be radically altered by Internet which is already bringing products and experiences directly to the end consumer. This eliminates a lot of the agents in the chain between the source and the consumer. Not only does it bring direct access, it also has direct bearings over the costs of channel management and the staffing. Hence a lot of companies today are paying more heed to their online presence. Presently these would only be a supporting tool, but in days to come it will become a delivery channel. What ever little remains in terms of physical deliveries is being outsourced.
This is just scratching the surface as many technology companies are already thinking of co opting and inventing with the consumer. Case in point is Dell. From the configuration of the product/services (as Dell does) to Payments (directly thru the internet) to after sales service, intenet is altering the nature of transactions
As far social media is concerned, C2C referrals are in. A consumer tends to believe another consumer more than the source. Social networking communities are gathering more clout as more and more consumer affiliate to them. Hence the developers and the businesses are seriously looking at engaging these communities. It is a much more focussed advertising media than anything else, where you are speaking directly to your target audience. Hence as you see, internet is chopping out the physical channels and social networking is redefining the role of marketing.
The direct advantage of this goes to the small and nimbler companies who find this focussed and cost effective medium to be more effective than blowing millions of dollars on channel, people and marketing as such. Currently the trend is catching in. So it is a supporting tool. However the next 4/5 years could see these mediums to beecome very relevant and substituting mainstream channels. (This substitution is also a function of the nature of your business). B2B also evolves more or less in the same manner.

Is Facebook the Future of Search?

http://www.time.com/time/business/article/0,8599,1710493,00.html?iid=sphere-inline-bottom --> Original Article

This article caught my eye for its provocative headline! For almost 9 years now, Google's pristine white search page has exemplied "search" for me. During my MBA days, i remember assignments and project reports that were dug out and googled. Back then and even now, Google is my saviour in terms of information i need. There was encarta and there was Brittanica encyclopaedia, but Google over ruled them all. Alongside came Wiki and the search for information found it panacea. No wonder Google is a lingo out there is the west, a connotation for information search.

So then, when i saw this headline, i was taken aback. Facebook to me is social networking. It is like a real ife experience on screen on internet. You meet freinds, you send messages, you declare your state of mind, you play, you share birthdays, you meet more people, you share photos, you share information. Prima facie, the impact of the statement never hit me. However a deeper thought on the issue made me look at it otherwise. Free world, free trade, free information, sharing are wholistically a democratization of knowledge sharing. No one screens it, we make it, we share it, it is for us. Web 2.0 and 3.0 are all about free availability of the information from consumers to consumers. As a consumer, i would much more believe a C2C source than a B2C source. In their lies the insight and genius. When you co discover with other people like you, you feel more affirmative, more reassured. I had trust a friend telling me to watch a movie because it is nice than trust all the trailers and promos of the movie. Facebook is delivering on this insight! Thus it is bridging the gap between social networking and information search. So much elementary!

This is an interesting insight and in the times to come i see a lot more of this happening and businesses come all over supporting this structure. Giving the consumer his right to referral and information is possibly going to be the next big thing. Watch this!

PS: Wiki does some bit of this thru open source content development but then it is more informative and academic than business/transactional...

Customer Loyalty program for telecom service providers

LinkedIn discussion on the topic of Customer Loyalty programmes by Telecom Service Providers (TSPs).
Increased competition and introduction of number portability will make it imperative for mobile service providers to introduce good customer loyalty programs.
http://www.linkedin.com/groupAnswers?viewQuestionAndAnswers=&gid=23013&discussionID=434160&commentID=550356&trk=discq_mor&goback=%2Esrp_1_1226460130686_in%2Eanh_23013#commentID_550356

Hi Ritu

I think Telecom Service Providers (TSPs) need to take a leaf out of your books (Credit Cards) on the Customer Loyalty Programmes.

However a few stumbling blocks to be kept in mind (these act as restriants currently):
1. Number Portability and Churn are devils that may and probably will ruin the ROI sheets of a lot of these TSPs.
2. Opening up of the licences can see a lot of investment in India by other TSPs (e.g. Etilasat, Telenor)
3. Hence the market will see further fragmentation
4. Given this, there is a reluctance from operators in investing in higher quantums in 2009
5. While operators reduce the capital expenditures by sharing infrastructure, uncertain economic conditions cast a doubt on returns over existing infrastructures.
6. 80% revenues of the TSPs comes from less than 20% of consumers in very small pockets. (Metros and major 10 towns)
7. Hence there is excess demand in cities and rural networks have huge white spaces.
8. Spectrum Limitations by the government donot allow operators to value sell higher services to the premium customers (the 80% revenue ones)
9. Higher Spectrum (3G) has very high entry cost which presently doesnot guarantee a break even in a medium term horizon.
10. Then there are other disruptive technologies such as VoIP which loom as a threat in the horizon.
11. The internal competition threatens to commoditize the voice and sms based revenues and most operators will need to value sell to maintain profitability.
12. However most operators are holding up their investments presently in face of toughening market and general conditions.

In all, the only gainer is the exchequer who holds the spectrum, the new technology licences and service taxes. The markets will gain in competition and users will benefit out of that but most of this will be discount deals or customer loyalty programme led. There wont be any major value lifting propositions.

Bottomline for you: While TSPs will take Credit Card Route to retain consumers, that wont really guarantee innovations and newer technology and services to consumers. Do let me know if i confused you with the discourse. Thanks Regards Manas

Emerging Power of social networking and its Impact on Telecom Strategy

A post on "Linked in" as a reposnse to the following question....
http://www.linkedin.com/groupAnswers?viewQuestionAndAnswers=&gid=81113&discussionID=32245&commentID=135617&trk=discq_mor&goback=%2Eanh_81113#commentID_135617

What are you thoughts on the emerging power of social networking and it's impact on telecom strategy?
How do vendors leverage social networks to reach business customers? Where do managed services fit in? Are social networking mediums a viable marketing platform for telcos?

I am fresh from reading Andy rubin's vision for Mobiles and communication. social networking is emerging as the MEGA TREND! The future of all Telecom companies is in getting Consumers to be actively living the product and the services. While consumers consume, their patterns of consumption shape the products of tomorrow and all telecom companies are tying to tap into this understanding thru various means. Enabling Social networking and learning from it is one! To cite examples from my work, i have at different stages in my work tried different methods to tap into the Orkuts and Facebooks of the world. To get them experience the product or service, convert them into active users and finally hoping that some of them become evangelists of my cause. The Challenge as i would put it today is NOT TO SEEK CONSUMERS, THEY ARE ALREADY LOOKING FOR A SOLUTION. Therefore the task is to ENGAGE THEM CONTINUOUSLY AND KEEP LEARNING FROM THEM. The other challenge that marketers are facing is "WHAT KIND OF BUSINESS MODELS AND MONETIZATION STRUCTURES DO THEY CREATE ON A SUSTAINABLE BASIS". To answer the other questions: Social networks are very well split by nature. Knowing where to look for your consumers and communicating with them thru Blogs,Clubs,Webinars, free trails, sharing the architecture is where the task lies. take an instnce of Google Chrome. With some smart PR and Free downloads, they upstaged some older players in terms of market shares. The pictorial representation of how Chrome architecture is based was one genius. Services are not a external thing that has to fit in. It is intrinsic to the nature of consumers. As i said earlier Adoption rates are no challenge, stickiness is! Building continuous excitement and Monetizing it is what we are cahllenged with. Social networking tools are not just viable, they are next to zero cost platforms for Telco's. Once you get your solution right and comunicate it well, the viral takes care of it...

Is Indian market ready to take 3G services????

Linked In Posting on Success factors for 3G in India

http://www.linkedin.com/answers?viewQuestion=&questionID=325889&askerID=11562313&browseIdx=11&sik=1222255763110&goback=%2Each_TCH*4ITS*4TCI%2Eabq_2_1222255763110_n_o_TCH*4ITS*4TCI&report%2Esuccess=vfLh7ZiQxNtkwQoO3efsNN1zAgQ8WXmCT24lKBBmlHq_pfcN7JydQUoVP_zdv4b8

I have read thru all the other answers. As a marketeer and thru frequent interactions with consumers, my feel is that the Urban population is READY for 3G. Infact the face of Indian telecomunications would be 3G services in towns and WiMAX in rural areas and that would happen in about 4 years from now.

However, in the present context, there are two stumbling blocks as i see it.
1. 3G Licensing fees are exorbitantly price by DoT. Even with infrastructure sharing, Operators have doubts about the cash flows and the RoIs in the near term.
2. Number Portability, as and when it happens, would reduce customer stickiness to the Operator. The operators are wary of this and the inability to estimate the churn may be translating into paralysis and inaction in terms of new investments.

On the flip side
1. 3G would the mantra to counter VoIP revolution when that happens. Ironically due the lobby Raj, VoIP in India depends on the success of 3G in India.
2. 3G would be a tool to increase ARPUs for Telcos.

Status of VoIP regulation in India

VoIP and its introduction is an eagerly anticipated event in the Industry. My Take in response to a linked in question...
http://www.linkedin.com/answers?viewQuestion=&questionID=327771&askerID=4765290&browseIdx=0&sik=&report%2Esuccess=vfLh7ZiQxNtkwQoO3efsNN1zAgQ8WXmCT24lKBBmlHq_pfcN7JydQUoVP_zdv4b8


While TRAI's recomndations have been tabled at the DoT, it would be difficult to provide any fixed time frame. For sure, there is some amount of lobbying from the Telecom Operators who see VoIP as a threat to already wafer thin profits. DoT is also under no hurry to displease this Cartel. To answer your question, you can expect to see some action on VoIP after the auction of 3G services (expected end of this year). Two things more that you must also factor in: Given High 3G Licensing fees in face of uncertain cash flows, the operators are not too keen on betting big money in 3G. The other thing is about Number Portability which would reduce the stickiness of the customers to these telecom operators. In the face of these two variables, which impact profitability of the operators, 3G licensing is still in some zone of uncertainity.3G Licensing would directly impact VoIP! Hence there are quite a few variables influencing VoIP introduction in India.

What do you think will be the most transformational Telco products and services within the next 4 years?

My first attempt to be a subject expert in the industry that i work for. This post was for Linked In Answer:
http://www.linkedin.com/answers?viewQuestion=&questionID=290102&askerID=1694000&browseIdx=6&sik=1222237925237&goback=%2Each_TCH*4ITS*4TCI%2Eabq_1_1222237925237_n_o_TCH*4ITS*4TCI&report%2Esuccess=vfLh7ZiQxNtkwQoO3efsNN1zAgQ8WXmCT24lKBBmlHq_pfcN7JydQUoVP_zdv4b8

Just happened to read through all the answers provided. My view is not divergent and hence nothing new. Rather i would converge upon three points in terms of MOST TRANSFORMATIONAL TELCO PRODUCTS AND SERVICES WITHIN THE NEXT 4 YEARS:
1. Since we are talking products, product architecture and design is the first domain. From base level products designs and UI, the evolution to a touch based concept is already unfolding. In times to come the Evolution may be from Touch --> Telekinetic forms (using Alpha and Beta Brain waves as inputs, already experimented succesfully); It could be AI into the phones which responds to user moods and habits; It could be a Phone that sits in your watch or button or Spectacles ( Nokia was experimenting Morph concept sometime back --> The ultimate in Convergence).
2. The second level of development would be the way the phones would integrate communities and provide information to people. It could start wit the Facebook integration, to Music share, high speed internet applications and content downloads. On a wider scale, Mobile Commerce, Emerging market aplications (such as weather forecasts, commodity rates to everyday rates for selling and buying stuff), GPS based navigation systems and tracking will impact the citien millions
3. Then there is Technology evolution enabling ifferent and better solutions to the same question of better voice, image and data conectivity. The point to make here is the technology that will balance cost, convenience and yet deliver more the threshold level of user expectations will rule th roost.
Between these three domains you can have a 3D plain. Customers and needs will exit in different axes of the plain and there would be many solutions/technologies to address these needs. Cost would be a very important factor to balance the development versus spread of these new trends.