Salo aalto university Turku visting lecture value creation and value capture with digital services 20_9_2011 [compatibility mode]

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]

Evolution of e-services

User generated content phenomenon and e-services

Illustrative case example : Game services

Agenda

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

• 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

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

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…

• 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.


• 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.


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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Fazer, Tutti Frutti campaign


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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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• Teaching

• Further education

• Tele, satellite, andvideo broadcastings

Trust in online markets (Salo & Karjaluoto 2007)

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

Digital Marketing - Salo 23

VTT 2007 physical browsing project

Game industry

• 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

• Kajaani area start ups (3D and other games)

• Hiit game research

• Oulu – Game research center

• Oulu game developers (Ludocraft and others)

Finnish game industry

(Mobile) game ecosystem

29Salo 2008

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Q&AJari Salo @aalto.fi