Emerging Technologies: Blogs Group 6: • Chunmin Zhou • Wendy Han • Stephanie Goetz • Tao Lu L Cartoon by Harley Schwadron 1
Overview of Blog Project Key issues understanding for Corporate Blog • • • L-Z Blogs’ development history Corporate blogs technology Why do corporations launch their own corporation blogs? How do corporations launch their own corporation blogs? What benefits can corporations get from launching corporate blogs? 2
How many of you have blogs? How many of you have read blogs? l l Z-W “Compared to the average internet user, blog readers are found to be significantly more likely 1 to live in wealthier households. ” “Blog visitors are 11% more likely than the average internet user to have incomes of 75 K or higher. ” 2 3
Part 1: Web + log = Blog ? Definition History Statistics Types Functions Tools Z 4
New Blogs per Day 3 w 5
Daily Posting Volume 4 w 6
Blog posts by language 5 W-Z 7
What is a blog? A blog, “a contraction of the term "Web log”, is a web site, usually maintained by an individual with regular entries of commentary, descriptions of events, or other material such as graphics or video. Entries are commonly displayed in reversechronological order. ” 6 A blog is a collection of time-sequenced entries, attributed to an individual, that can be categorized by the owner and commented on by others. 7 Blogs illustrate the fusion of key elements of human desire - to express one's identity, create community, structure one's past and present experiences - with the main technological features 7. 5 of 21 st century digital communication. Z 8
History of Blogs 1980’s Blog concept Z 1994 Justin Hall In radio 8 >200 million blogs 50 blogs 1999 Peter Merholz BLOG 2003 2004 Oxford English dictionary Vlogs Steve Garfield 9
Types of blogs Personal Blog: 9 A personal blog is an ongoing diary or commentary by an individual, is the traditional, most common blog. 10 Corporate Blog: A corporate blog is published and used by an organization to reach its organizational goals. • Corporate bloggers: • 69% are also personal bloggers • 65% are professional bloggers • Professional bloggers: • 59% are also personal bloggers • 17% are corporate bloggers Z-W 10
Blog readership 11 W 11
Actions spurred by blogs 12 w 12 12
Statistical Highlights l l l About 120, 000 new blogs were created everyday in 2007. About 1, 400, 000 posts were created per day in 2007. Most blogs are in Asian language. Blog readership is higher in Asian countries. Blogs spur more actions in Western countries. W-S 13 13
How many Fortune 500 companies are using a corporate blog? 13 S 14
2 Types of Corporate Blogs Definition Functions generally accessed through the corporation's Intranet, is a weblog that any employee can view. 14 • Knowledge Sharing • Company Culture • Direct communication throughout many layers of the corporation • Easily Accessible publicly available External weblog where company employees, teams, or spokespersons share their views. 15 • Communication • Interaction with public • Marketing • React to negative events faster • Little budget input Internal S-L 15
Corporate Blog Tools 16 Searching Tools Technorati Feedster Ice. Rocket Spere Publishing Tools Word Press Movable Type Pad Drupal Monitoring Tools RSS Reader Co. coments Commentful Book Marking Tools Del. icio. us L 16 Co comment Digg Expression Engine
Searching Tools: Technorati. com Technorati- Internet search engine for searching blogs. It uses and contributes to open source software. Looks at tags that authors place on their websites and categorize search results 17 with recent results coming first. 17
Publishing Tools: Wordpress is a state-of-the-art publishing platform with a focus on aesthetics, web standards, and usability. Word. Press is both free and priceless at the same time. 18
Monitoring Tools: Google Reader • • RSS – Really Simple Syndication is “a family of web feed formats used to publish frequently updated works- such as blog comments, news headlines, video, and audio into a standardized format. ” 19 20 Syndicating is another way to increase readership. • RSS reader list: www. aggcompare. com
RSS Reader
Monitoring Tools: co. Comment is a service for managing, powering and researching conversations online. When using co. Comment, you can keep track of your comments across any site, share them with friends, and get notified when 21 you get a response.
Book marking tools: Del. icio. us Delicious is a social bookmarking service, which means you can save all your bookmarks online, share them with other people, and see what other people are bookmarking. 22
Part 2: Case studies External Corporate Blog Internal Corporate Blog Third-Party Blog W 23
Case 1 External Corporate Blog W 24
External Corporate blogs Company background: 23 • • • W NASADQ: JAVA Core bands: Java, Solaris, My SQL, Storage Tek, and Untra. SPARC Employees: 33, 423 worldwide Ranking : #184 on the Fortune 500 (2008) FY 2008 Revenue: $13. 880 billion Location: more than 100 countries around the globe 25
External Corporate blogs Blog Model http: //blogs. sun. com/ W 26
Tips on adoption and exploitation l l “I suggest clearly defining a blogging strategy and guidelines. ” “The rule of thumb is simple: Know the guidelines , then let loose. “ “Be sure to listen to feedback and respond to legitimate ideas – from inside and outside” “Write the blog yourself. ” -Jonathan Shcwartz, COO of Sun Microsystems W 24 27
Case study 2: Internal Corporate Blog W 24. 5 28
Internal corporate blogs Company background: 25 • • Employees: 150, 000 world wide • Ranking : # 66 on the Fortune 500 (2008) • FY 2008 Revenue: $ 40 billion • W-L Electrics Consumer Market Share: 16% Location: 1, 150 retail stores in US, Canada, and China 26 29
Internal corporate blogs Ask questions to HQ directly Ask the Bus 27 Four Key Modules Communication between employees, Wiki Internal Blog Blue Shirt Nation Questions and answers Water Cooler Exchange information and allocate assignment Like Facebook
Internal corporate blogs 27 Highlights from Interview l “ It puts us on one page. It is basically a good communication tool. ” --- Said by Maggie, Store manager. l l l S-Z Each Best Buy employee can log in the internal blog with a Best Buy email address. Using the internal blog is optional for employees, not mandatory. Employees cannot log in the blog anonymously. HR department monitors the post to see if the content is proper or not. The blog integrates sales data in it so that the user can check sales performance easily. 31
Internal corporate blogs 27 Feedback about internal blogs from employees l l Z 2 in 5 interviewees chose “ they dislike the internal corporate blogs” and visit them less than once per week. All of them expect the blog to have more creative format and contents. 32
Internal corporate blogs Lessons from Best Buy's internal corporate blog l l l Z-S Internal corporate blogs can act as effective and efficient communication tools. How to engage the employees’ involvement would be a big challenge, especially in up-down blog. Internal corporate blogs will be more useful to those positions who need to communicate with other colleagues frequently. All employees have opportunity to post at anytime and use is optional. Risk of negative comments will be lower in internal corporate blogs. 33
Case study 3: Third Party Blog S 34
Third party blogs 28 l “In late 2001, Bzz. Agent. com founder and CEO Dave Balter realized that marketers weren't harnessing the power of word of mouth (WOM). “ l “Today Bzz. Agent has grown to become the world's first WOM (word of mouth) media channel, allowing agencies and clients to develop and execute their own WOM campaigns through their community of trained Agents” l Oct 2008 : “ 500, 000 Agents in their international network of WOM volunteers, which is growing by 2, 000 -4, 000 members per week (talk about what the agents do) They have over 500 programs under their belt 80 employees working hard to make Agents and clients happy” l l l S 35
Third party blogs What about the costs of Bzz. Agent? 29 l “Requires a minimum investment of $300, 000 in both WOM media and your selected challenge medium l Bzz. Agent guarantees that the average difference in performance for will be 20% or greater. If it’s anything less, then Bzz. Agent will refund all costs associated with the program” 36
Third party blogs How does Bzz. Agent Measure their sales per campaign? “Sales-Based ROI Measurements: We conduct pre- and post-campaign sales baseline measurements, compare sales in Bzz. Agent markets vs. non-Bzz. Agent markets and use traceable coupons, websites, e-mail links and loyalty cards to identify and analyze sales and acquisition impact. ” 30 37
31 Third party blog Bzz. Campaigns • Bzz. Campaign for Dunkin Donuts for their new “low calorie” Latte coffee drink. • Objective: To educate consumers of their product and to learn about what consumers feel about their product by putting the product directly in their hands. • Strategy: 12 Week campaign, targeting consumers in Detroit, Cleveland, and Boston. They gave out vouchers free for one Latte Lite • Outcome: “-Reached 111, 272 people - 96% of agents said at least one person they reached bought a Latte -After 8 weeks, sales in Detroit, Cleveland, and Boston were now 5% higher then the rest of the market”
Third party blog Bzz. Agent Lessons l If your corporation has little to no time to set up or manage a blog, you may want to consider l If you think your corporation may benefit from WOM, you may want to consider l If your company does not have a lot of money to spare to use a marketing campaign agency, you may not want to consider 39
Part 3: Lessons for GM How do we measure the success of blogs? Challenges: Privacy and security Negative comments Law issue W Cartoon by Charles Barsotti 40
How to measure success of blog 32 • What values does your blog create/ bring to customers? • Traffic • Links • Technorati ranking • Comments 41
Challenges – Privacy and information security Blog Type External & Internal Third-Party W-z Solutions §Establish clear blogging guidelines §Limit bloggership §Identification §Monitoring & censorship §Sign agreements contract with the agent 42 42
Challenges – Deal with negative comments American Airlines’ of a crisis blog ----quiet launch and quiet discontinue 33 • The American Airlines blog, launched in early 2008 is no longer available on blogger. Z Source: http: //blog. holtz. com/index. php/weblog/comments/american_airlines_quiet_launch_of_a_crisis_blog/ 43
Challenges – Deal with negative comments 33 l l l l The first post includes a video offering step-by-step instructions on how to contact the company online; The second post announces the airlines’ return to a regular flight schedule and return service to normal. Few comments followed, one of them was “Returning service to normal is relative when you take into account how horrible AA service is ‘normally. ’ ” ……lots of voices questioned AA: The fact that they haven’t announced publicly makes me wonder how genuine AA is about listening…… I’m sick of the “here to listen” schtick…… I want AA to tell me what the hell is going on and when and how things are going to be fixed. …… …… American Airline Blog-AA conversation discontinued in Oct. 2008. Now, we are back down to 61 companies blogging in the Fortune 500, which was 62 in Sep. 2008 . (Fortune 500 business blogging wiki, ) 44
Challenges – Deal with negative comments 34 Select knowledgeable employees and great communicator to write comments. l Keep a watchful eye. 35 l Give a courteous, professional and quick response directly in blog comments. l Keep track on all links to know where they are out there. l Declare blog policies as clear as you can. l Thank the blogger. Look on the bright side: they’re making you getting tons of attention and your blog more creditable. “Be humble enough to accept that there may be more than one way to get things done and our way might not suit everyone's needs. ” 35. 5 l Z-S 45
Challenges – Legal issues l Kryptonite Lock Company – – – s 36 Faulty locks were produced. People were able to pick with a Bic. pen This was openly discussed in the Blogosphere and Kryptonite initially decided to ignore the comments posted 2004, Class Action Suit Finalized Suit cost $10 mill. for a company making $25 mill. 46
Challenges – Legal issues Kryptonite’s Lessons l 36 In this case it would have been more effective if this corporation would have responded back in the blogosphere, addressing the issue and apologizing instead of ignoring their concerned customers whom now feel neglected. 47
Challenges – Legal issues How to avoid legal issues 37 §Do not post “outside” articles in your blog and incorporate this rule in your policies. §If there has been material posted in your blog, the material must be removed as soon as possible under the “Digital Millennium Copyright Act (U. S). ”(no specific amount of time found) §Respond Quickly to negative comments. If you neglect this opportunity to fix a problem (i. e. . Faulty locks) you may end up in a legal battle. Blogs comments, or lack there of, can be dug up for evidence in court. 48
Executive Highlights -what general managers have got to know? 38 Selection Adoption Exploitation 39 Know your blogging goals and audiences W Establish clear blogging polices. Educate employees. Consistently update your blogs Never neglect negative comments. 49
Let loose, blog, and lead… W 50
references 1. 2. com. Score Media Metrix (Aug. 2005) “Behaviors of the Blogosphere: Understanding the Scale, Composition, and Activities of Weblog Audiences, ” com. Score Networks, Inc. pg. 9 3. The State of the Live Web, 2007, http: //www. sifry. com/alerts/archives/000493. html 4. The State of the Live Web, 2007, http: //www. sifry. com/alerts/archives/000493. html 5. The State of the Live Web, 2007, http: //www. sifry. com/alerts/archives/000493. html 6. http: //en. wikipedia. org/wiki/blog 7. The Six Key Dimensions of Understanding Media, Yates et al. , MIT Sloan Management Review, Winter 2008, P 67. 7. 5 The Psychology of Blogging: You, Me, and Everyone in Between Laura J Gurak, Smiljana Antonijevic. The American Behavioral Scientist. Thousand Oaks: Sep 2008. Vol. 52, Iss. 1; pg. 60 8. http: //www. slais. ubc. ca/COURSES/libr 500/05 -06 -wtl/www/A_Cho/history. htm 9. http: //en. wikipedia. org/wiki/Blog 10. State of the Blogosphere, http: //technorati. com/blogging/state-of-the-blogosphere/who-are-the-bloggers 11. A Corporate Guide to the Global Blogosphere, http: //www. edelman. com/image/insights/content/White. Paper 011107 sm. pdf, P 5 12. A Corporate Guide to the Global Blogosphere, http: //www. edelman. com/image/insights/content/White. Paper 011107 sm. pdf, P 9 13. Businesses embrace blogging, Rich Karpinski, B to B, Chicago: Jun 9, 2008, Vol. 93, Iss. 8; pg. 1, 2 pgs 14. http: //www. bizreport. com/2008/08/the_pros_and_cons_of_a_corporate_blog (10/5/2008) 15. http: //en. wikipedia. org/wiki/corporate-blog (10/5/2008) 16. Strategies and tools for Corporate blogging, John Cass , Elsevier Inc. , 2007 17. http: //en. wikipedia. org/wiki/Technorati 18. http: //wordpress. org/ 19. http: //en. wikipedia. org/wiki/Rss 20. Blogging 101 for CPAs Guido L Geerts, Myunghee Kim. The CPA Journal. New York: Jul 2005. Vol. 75, Iss. 7; pg. 12, 2 pgs 21. http: //www. cocomment. com/about 22. http: //delicious. com/about 23. Sun Microsystems Corporate overview 2008, http: //www. sun. com/aboutsun/media/presskits/Sun. Corporate. Backgrounder. pdf W 51
References (cont. ) 24. If You Want to Lead, Blog, Opinion by Jonathan Schwartz, Harvard Business Review, Nov 2005, Vol 83 Issue 11, p 30 -30, 1 p, 1 color 24. 5 Harnessing the Power of the Oh-So-Social WEB, Ernoff et al. , MIT Sloan Management Review, Spring 2008 Vol, 49, No. 3 25. Best Buy 2008 Annual Financial Report, http: //phx. corporate-ir. net/phoenix. zhtml? c=83192&p=IROL-reportsannual 26. Best Buy, Customer Centricity http: //www. accenture. com/Global/Services/By_Industry/Retail/Client_Successes/Best. Buy. Customer. Centricity. htm 27. On site interview with Maggie Key and other Best. Buy employees. 28. http: //www. bzzagent. com/pages/Page. do? page=History 29. 30. Bzz. Agent WOM Impact Guarantee, http: //www. bzzagent. com/pages/Page. do? page=Bzz. Agent-Impact-Guarantee 31. Dunkin’s Donut Latte Lite Bzzcampain http: //www. bzzagent. com/downloads/Bzz. Agent_Case. Study_Dunkin%20 Donuts. pdf 32. Blog marketing, Jeremy Wright, , Mcgraw-Hill Comapies, 2006 ed 33. http: //blog. holtz. com/index. php/weblog/comments/american_airlines_quiet_launch_of_a_crisis_blog/ 34. CHATTING TO CUSTOMERS AT SOUTHWEST Angela Vargo. Strategic Communication Management. Chicago: Jun/Jul 2006. Vol. 10, Iss. 4; pg. 3, 1 pgs Also, BLOG: GROWTH PRINCIPLES, Sona Hathi. Strategic Communication Management. Chicago: Oct/Nov 2008. Vol. 12, Iss. 6; pg. 3, 1 pgs 35. Jump on the Blog Wagon Jonathan Paisner. Journal of Accountancy. New York: Jun 2006. Vol. 201, Iss. 6; pg. 28, 1 pgs 35. 5 BLOG: INSIDE OUT Sona Hathi. Strategic Communication Management. Chicago: Oct/Nov 2008. Vol. 12, Iss. 6; pg. 3, 1 pgs 36. Scoble, R. , and Isreal, S. (2006), “Naked Conversations: how blogs are changing the way businesses talk with customers, “John Wiley & Sons, Inc. , Hoboken New Jersey 37. Anonymous. (Apr. 2008) “What You Should Know About Using Web 2. 0, ” Vol. 85, Iss 4; pg. 10, HR Focus, New York 38. Mastering the Three Worlds of Information Technology, Mc. Afee, Andrew, Harvard Business Review, Nov 2006, Vol 84 39. Lessons in Corporate Blogging, Nicholas Carr, Bussinessweek, 7/18/2006, http: //www. businessweek. com/technology/content/jul 2006/tc 20060718_932217. htm/
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