How the Internet is Redesigning Business by @JoeyShepp

HOW THE INTERNET IS REDESIGNING BUSINESS

AN MBA IN DIGITAL MEDIA

PRESENTED AT

MARCH 10TH, 2011

PRESENTER

JOEYSHEPP.COM

GREENMBA PROGRAM DIRECTOR AT DOMINICAN UNIVERSITY OF CALIFORNIA

FOUNDER AND PRINCIPAL AT EARTHSITE.NET, NEW MEDIA FOR SUSTAINABLE BRANDS

ROAD MAP

I. INTERNET TRENDS

II. CURRICULUM

I. OPERATIONS

II. MARKETING

III. FINANCE

III. WHAT’S NEXT?

IV. DISCUSSION

INTERNET EVERYWHEREUBIQUITOUS, PERVASIVE

INFORMATION AGE

THE INDUSTRIAL AGE FILLED THE WORLD WITH STUFF

THE INFORMATION AGE IS FILLING OUR WORLD WITH INFORMATION.

CHEAP, ACCESSIBLE, ABUNDANT

POTENTIAL LIMITLESS GROWTH

DISRUPTIVE TECHNOLOGY

FREE

MOBILE

DECENTRALIZED

REAL-TIME

HYPER-LOCAL

CLOSING THE DIGITAL DIVIDE

INTERNET TO REACH 2 BILLION USERS THIS YEAR, REPRESENTING 30% OF GLOBAL POPULATION

70% OF DEVELOPED COUNTRIES

21% OF DEVELOPING COUNTRIES

SOURCE: http://mashable.com/2010/10/19/internet-2-billion/

MOORE’S LAW

SPEED OF COMPUTERS DOUBLES EVERY TWO YEARS

“SINGULARITY” COMING… COMPUTERS TRANSCEND BIOLOGY ~RAY KURZWEIL

FACEBOOK:GLOBAL CITIZENSHIP

500,000,000 ACTIVE USERS

700,000 NEW USERS DAILY!

70% OUTSIDE THE US

380,000 LIKES / MINUTES

ACCOUNTS FOR 25% OF ALL USA PAGE VIEWS

YOUTUBE:YOU ARE THE MEDIA

35 HOURS UPLOADED EVERY MINUTE!

HUNDREDS OF THE MOST POPULAR USERS MAKE 6 FIGURES A YEAR

LADY GAGA AND EMINEM SURPASS 1 BILLION HITS

TWITTER:THE PULSE OF THE PLANET

NEW RECORD SET AT NEW YEAR 2011: 6,939 TWEETS/SECOND

40% USA60% INTERNATIONAL

IN THE USA, 87% AWARENESS, YET ONLY 7% USE IT

SENTIMENT ANALYSIS PROVEN AS ACCURATE AS EXIT POLLS

3,339 TEXTS PER MONTHAVERAGE US TEENAGER

BORN INTO THIS WORLD

92% OF U.S. TODDLERS HAVE AN ONLINE PRESENCE

THE VAST MAJORITY OF CHILDREN TODAY WILL HAVE ONLINE PRESENCE BY THE TIME THEY ARE TWO YEARS OLD — A PRESENCE THAT WILL CONTINUE TO BUILD THROUGHOUT THEIR WHOLE LIVES.

MBA IN DIGITAL MEDIA

CURRICULUM

OPERATIONS

WORKING IN THE CLOUD

CLOUD STORAGE

ABUNDANT ONLINE STORAGE MEANS CHEAP END-USER DEVICES

BENEFITS INCLUDE AFFORDABLE, ACCESSIBLE, COLLABORATIVE, RELIABLE

VIDEO CONFERENCING

KEY TECHNOLOGIES: CISCO LIVECONFERENCE, SKYPE AND IPAD/FACETIME

DRIVEN BY COST OF TRANSPORTATION

NOT A REPLACEMENT FOR PHONE, BUT IN ADDITION

REAL TIME LOGISTICS

ONLINE SHOPPING INCREASING AS SHIPPING LOGISTICS ARE REFINED

UPS BANNED LEFT TURNS FOR GAS SAVINGS AFTER IN-DEPTH STUDY

LOCAL FOOD SOURCING

PAPERLESS

AMAZON.COM NOW SELLS MORE DIGITAL BOOKS THAN PHYSICAL BOOKS.

KEY TECHNOLOGY: FUJUTSU SCANSCAP SCANNERS

MOBILITY

INCREASED WIRELESS ACCESS, CHEAPER MOBILE DEVICES

GPS ALLOWS LOCALIZED DATA

KEY TECHNOLOGIES: GPS, 4G, MOBILE HOT SPOTS, ANDROID, IOS

CROWD SOURCING

PRODUCT DESIGN

CUSTOMER SUPPORT

MARKET RESEARCH (SENTIMENT ANALYSIS)

KEY COMPANIES: LOCAL-MOTORS, BEHANCE, PEPSI REFRESH, GAP, STARBUCKS

MARKETING

THE RISE OF SOCIAL MEDIA

RADICAL TRANSPARENCY

MANY TO MANY COMMUNICATIONS ACCELERATES SHARING

PEOPLE TRUST THEIR PEERS

BRANDS NO LONGER CONTROL THE MESSAGE

CUSTOMER COMMUNITY

NO LONGER “CONSUMERS”

COMMUNITY MANAGER

ABOUT ENGAGEMENT

ACKNOWLEDGED POWER DYNAMIC

CUSTOMER STAKEHOLDER

CORPORATE SOCIAL RESPONSIBILITY

EXPECTATION TO COMMUNICATE SOCIAL & ENVIRONMENTAL WORK THROUGH MARKETING

YEARLY REPORTS MOVING TO DAILY COMMUNICATION

HIGHER LEVELS OF ACCOUNTABILITY BECAUSE OF RADICAL TRANSPARENCY

DATA VISUALIZATION

CUSTOMERS WILLING TO SHARE MORE PERSONAL INFO

COMPANIES WILLING TO SHARE DATA THROUGH API’S.

WEALTH OF ACCESS TO DATA

KEY COMPANIES: COOL INFO GRAPHICS, INFORMATION IS BEAUTIFUL,

SOCIAL MEDIA POLICY

DEVELOP A “LIVING DOCUMENT” OF BEST-PRACTICES AND STRATEGY FOR DEALING WITH PROBLEM ISSUES

DATABASE OF SOCIAL MEDIA POLICIES: HTTP://SOCIALMEDIAGOVERNANCE.COM

FINANCE

ACCOUNTING FOR EVERYTHING

MICROFINANCE

MICROLOANS FOR STARTUP CAPITAL

HIGH REPAYMENT RATE FOR LOANS

ALTERNATIVES TO VC FINANCING

KEY COMPANIES: KIVA, KICKSTARTER, CROWDRISE

GROUP BUYING

CONSUMERS BAND TOGETHER FOR DEEP DISCOUNTS

BUSINESSES GET COMMITTED VOLUME + MARKETING BUZZ

KEY COMPANIES: GROUPON, SOCIAL LIVING

POINT OF SALE DEVICES

SMARTPHONE AS UNIVERSAL CREDIT CARD

KEY COMPANIES: SQUARE, VERIPHONE, PAYPAL, INTUIT

THE LONG TAIL

THE LONG TAIL OF AN EXPONENTIAL GRAPH

LOTS OF SMALL MARKETS COMBINED ARE BIGGER THAN POPULAR MARKETS

EXAMPLE: LOTS OF SMALL BLOGS MAKE AS STRONG AS A VOICE AS MAJOR MEDIA

FREEMIUM

OFFER A ROBUST FREE PRODUCT WITH AN UPSELL OPPORTUNITY FOR POWER USERS

BUILDS A LARGE, STABLE CUSTOMER BASE

KEY COMPANIES: 37SIGNALS, GOOGLE, FACEBOOK

WIKILEAKS

TECHNOLOGY SUPPORTS LEAKS

FEAR OF EXPOSURE DRIVES MORE ETHICAL BEHAVIOR

FINANCIAL MODELS MUST ADJUST TO FULL COST ACCOUNTING

EFFECTS BUSINESS, BUT ALSO GOVERNMENT

A FLAT WORLDINFORMATION AND CREATIVITY REMAIN

CREATIVE CAPITAL

EDUCATION

CREATIVITY

STRATEGY

IDEAS

FUTURES

STAY HUMANIT’S ABOUT PEOPLE TO PEOPLE TIES

MORE INFO

TWITTER ACCOUNTS

@JoeyShepp

@GreenMBA

@Earthsite

@SocialGoodMedia

TWEET ME YOUR QUESTIONS@JOEYSHEPP YOUR QUESTION

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