Salo aalto university Turku visting lecture value creation and value capture with digital services...
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Value creation and capture with digital servicesJari Salo
Professor of Marketing
Editor of Journal of Digital Marketing
Aalto University
Aalto School of Economics
&
Professor of Marketing
Head of Department of Marketing
Oulu Business School
Digital services [email protected]
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Evolution of e-services
User generated content phenomenon and e-services
Illustrative case example : Game services
Agenda
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Electronic services: Digital service delivery to citizens, organizations (profit/non-profit), cities, governments etc and of course consumers
Mobile services: A core value element in mobile services is that they can be accessed and used anytime and anywhere, which enables people to communicate or to access information at any location, any time and any situation (De Reuver, 2008)
Digital Marketing: Aims at creating, demonstrating, documenting, communicating and delivering value in digitized way to customers (B2C and B2B) and for managing customer relationships in ways that enhance digital joint value creation of customers, organizations and stakeholders(Journal of Digital Marketing)
Some basic definitions
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• Digitization substantially reduces cost• Bank and brokerage houses
– possible digitization of the entire process• Travel industry
– viewing an online video clip or seeing photos of a hotel • Other markets changed by digitization
– Job markets– Real estate business!– Stock exchange– Auctions– Teaching– Taxes … list goes on…
Traditional Service Industries
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Services provided in the travel and tourism industryInformation and booking of airlines, hotels, cars, and even golf courses
Fare comparisons360 degree video tours of top destinations
Digital Travel magazines
Tips provided by people that experienced certain situations (like a visa problem)
Pictures/videos of major attractions
Providing maps
Information about entertainment and ticket purchasing
Converting 200 currencies
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Services provided in the travel and tourism industry
Worldwide business and places locator
E-mail to intermediary
Chat rooms, bulletin boards & click to chat
Major international news
Weather watch
Experts’ options
Shopping for travel accessories and books
Special interest vacations
Current status of flights
(real time)
Fare tracker (free e-mail, SMS alerts on low fares)
Bed and breakfast recommendations
Restaurant reviewsSpecial discount information
Frequent flier deals
Travel news
Driving directions in the EU, US…
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• Delta Air Lines has launched The Delta Ticket Window, a Facebook application that lets members find, book and share flights via the “Book a Trip” tab on the airline’s Facebook Page.
• The application was built to keep the user on Delta’s Facebook Page for the duration of the booking process, as well as give them the opportunity to share their booked flight with friends.
Services provided in the travel and tourism industry
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• Delta’s Ticket Window, powered by Alvenda, is the first to isolate the entire booking process inside Facebook.
• European budget airline easyJet began experimenting with selling flights on Facebook earlier in the year, but users are redirected to easyJet’s website to book their flight.
• Delta Ticket Window will evolve outside of Facebook and become integrated into banner ads too.
• Delta Ticket Window is likely to get heavy traction from Facebookusers curious about the application (it already appears to be having a bit of trouble managing the load). Once the newness of the application fades, it should be interesting to see if would-be travelers find the service relevant to their lifestyles.
Services provided in the travel and tourism industry
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UGC: From broadcasters to audience driven content (Turban et al)
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UGC: Digital marketing landscape (Turban et al.
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Digital marketing landscape• User generated content (UGC)
• Places to share content and publish your own content
– CNN (iReport)– Youtube - Vimeo– Flickr (photo management and sharing)– Helsingin Sanomat (send a picture) – Creating a blog (see e.g. blogs.com)– Twitter– Slideshare (consulting, teaching – demonstrating experience)– Google stuff (…)
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Digital marketing landscape
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Digital marketing landscape
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Fazer, Tutti Frutti campaign
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Digital marketing landscape
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Digital marketing landscape
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Twitter: short message service
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Gosalves, Antone: “Dell Makes $3 Million for Twitter-related Sales”, InformationWeek 12 Jun 2009 @delloutlet=600.000 followers
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Digital marketing landscape
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Digital marketing landscape
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• Teaching
• Further education
• Tele, satellite, andvideo broadcastings
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Trust in online markets (Salo & Karjaluoto 2007)
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Google AdSense• In the AdSense service internet website operators and owners (like
bloggers with traffic) can gain fees from Google if they put banner to their website.
• In Adsense the advertiser gets more relevant content for the ad which makes the ad more relevant to the website.
• For example, site that deals with new energy sources is more suitable for wind power company ads than showing that ad on forest industry specific portals.
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Google AdSense
Salo 22
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Digital Marketing - Salo 23
VTT 2007 physical browsing project
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Game industry
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• Angry Birds plot: Birds are angry for green Pigs because they stole eggs - revenge
• Many different versions i.e. levels• CNET 10 best iPhone apps• Most downloaded iPhone game in the world• 8 million downloads in October 3, 2010• Today 350 million downloads• Price: 79 cents• Established by Aalto students (School of Science and Technology)
Rovio – Angry Birds
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Digital Chocolate
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Farmind
Presentation name and author -21/09/2011 27
http://www.farmind.com/games
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• Kajaani area start ups (3D and other games)
• Hiit game research
• Oulu – Game research center
• Oulu game developers (Ludocraft and others)
Finnish game industry
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(Mobile) game ecosystem
29Salo 2008
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Q&AJari Salo @aalto.fi