Week 10: ROI

Well it’s finally the last blog. Thanks for reading and commenting on post’s appropriate the community we all helped build over the semester.

Onto this weeks topic: Return on investment. What is it? Well it is calculated using the following formula:

On the surface social media seems like it would have a great ROI:

  • cheap/free to setup and use,
  • easily able to upload/use

However, understanding the formula is easy, finding actuate numbers to enter is difficult. Let’s look at the formula again. It’s obvious from the onset that the ROI needs fairly specific numbers, and yet depending on the business or Social Media endeavor not all investments are quantifiable.

One of the most common McKinsey (Global Institute Report) levers we looked at in the past has been marketing, sales and customer service related. An organisation’s marketing team might not be able to discern which marketing tools have proved most valuable unless they launched and tracked a specific Facebook/Twitter campaign. Furthermore, effective (or ineffective for that matter) customer service leads to impacts on a business reputation and brand. These individual impacts however can be hard to track and measure (for both positive or negative effects). In the past posts we have also looked at social media risks and their business impact. These risks (such as a inflammatory comment) could lead to loss of sales but that same quarter might have had other issues that caused loss of sales (historical low sales period).

So why invest in Enterprise 2.0 if a business is unable to track their effects? Well this is not entirely true. When it comes to social/front facing technologies, Martian Kosler  discusses the issues and “flawed logic” behind ROI calculations and enterprise 2.0 tools. He argues that ROC (return on change) or RONI (risk of not investing) is what organisations should focus on, however understands that positioning these concepts to a board is exceptionally difficult.

Back to our favorite mobile phone manufacturer; Apple. I have already previously discussed how the media (of all forms) keep telling us different details about Apple products especially the ever famous iPhone. Does Apple take stock of the market via the McKinsley levers? Well we have already investigated this in great detail here. The organization however can’t put a price on Social Technology. Do not mistake this with Apple not putting a price on their reputation and brand which has become the world’s top brand.

The issue is that I am unable to tell you that Apple’s Facebook and Twitter has directly helped or hindered their growth to become the number one brand and I doubt anyone with Apple can provide specific numbers either.

Well guys I hope you enjoyed the last blog, good luck with your last assignments!

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Week 9: Social Analysis

Hi guys, welcome to the second last blog post! This week we are tasked with using Social Media Monitoring Tools and use it one a organization of our choice. But why? So we can analyse both the tool and the results.

This week we shall be looking at Apple through the free online tool Addictomatic . This week Apple has many  new announcements and news surrounding their new phone launches iPhone 5S and iPhone 5C and the accompanying new software iOS7.

I choose Addictomatic because it is supposed to help aggregate several news stories from multiple live websites such as  Google, Flickr, Youtube and Twitter among others. At first glance Addictomatic seems pretty basic, you enter a search and up comes several items. However, it was apparent after first glance that the tool lacks the ability and algorithm of a Google search. As I mentioned previously, I wanted to search Apple because it’s a time where the media dedicates a lot of time discussing the new iPhone Launches and features.

When using the tool however, the tool found nothing on twitter (which just isn’t right), provided search results from Bing (all three Bing users would be pleased) and Youtube results of videos that were either in French or Russian. The tool does allow the user to change the layout of the results (or even omit some, bye bye bing) but the actual results are sub par.

In terms of the results that did display, only two where really relevant or even news worthy which is about iOS7’s new animations which is making certain users sick. Upon reflection, I’m not sure if this means that a) Addictomatic is simply a subpar tool or b) Apple is VERY effective at manipulating algorithms to hide bad press. At this point I’m more inclined to believe A.

Anyone else come to the same conclusion? Did I personally miss the point of the tool? Let me know through the comments section!



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Week 8: Nokia (Blogs and Twitter will they help us sell phones?!?)

Hi all, hope everyone is ready for another blog post!

Last week we discussed Oxfam and how they apply value levers to their organization. This week’s topic is to analyze how the Professional Industry use the value levers found in McKinsey Global Institute Report to add value to their business.

 Nokia needs no introduction but in the interest of being consistent I’ll lightly touch on their history. Nokia used to be THE mobile company, although this mantle has been fought over between Apple and Samsung as of late, Nokia is a cellular phone maker who has been quite late entering the smart phone market. However, the company has been gaining ground in the market recently. Microsoft has purchased Nokia’s smart phone division likely to help push Microsoft’s Mobile software further into the smart phone market. You can read more about this purchase here and here.

Nokia uses a wide verity of social technology including but not limited to: Facebook, Twitter, LinkedIn and Blogs. The name of the game is to add value so how do these technologies add value?

Use social technologies for marketing communication/interaction.

Nokia uses their twitter feed to mostly educate potential customers about their new products and innovative features / new releases.


Look at this snapshot of their twitter, mostly advertisements and promotions. Twitter is a great avenue for such advertisements since the hash tag system allows for quick searching and creates a level of engagement with customers.  Although we have all heard of all sorts of excellent and not so excellent stories of marketing campaigns through social media, Nokia seems to receive quite a lot of positive feedback through these social technologies.

Nokia’s blogging space does quite a lot of this marketing as well. However, “Conversations by Nokia” is just that, a conversation. Each blog post can be easily shared through twitter (a counter exists of most blog pages) and their comments sections can occasionally provide and interesting insight on the topic at hand.

Derive Customer Insights, is the main value lever stemming from this blog / twitter combination. Both technologies have ways to “listen” to their customers to help identify issues with product design, something that has been an issue with Nokia since the emergence of smart phones.

The company is at the cusp of something new, the new development with Microsoft could see new uses of social media and new exiting times for the company. Hopefully, it might mean we can see less of these fails:

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Week 7: Oxfam and Value Levers

Hello again readers,

This week we shall be discussing how Enterprise 2.0 technologies benefit Social Sector.  Specifically, I shall be looking at how two value levers at mentioned in this McKinsey Global Institute Report.

Oxfam Australia is the Australian offshoot of Oxfam an international amalgamation of several organizations who are trying to eradicate poverty. Oxfam Australia works in several countries and are probably best known for their Oxfam stores which sell hand-crafted items with the profits funding their humanitarian efforts.

So how’s Oxfam is utalising Enterprise 2.0 technologies to add value to their business?

  • Help Fundraise 
  • Educate the public

According to the McKinsey report, social media can help organisations better target their fundraising efforts while also saving money in the process.  Oxfam utilizes their online presence to showcase their store products to ensure they can find a wider market. The picture below shows how a simple post not only generates interest but also encourages users to “share” the post with their friends. 18 Shares might look like a small amount, but people on Facebook have an average of 100 friends so that’s an extra 1,800 people who so this message.


Oxfam however excels at educating their Audience. Their Facebook, Twitter and Blogging pages are full of interesting information regarding many issues that influence poverty. Have a look at their Facebook page in particular, each informative post has several “shares” and more then a handful of comments.

BUT THAT’S NOT ALL… check out this initiative that helps cement Oxfam at the forefront of such social media users:

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Hey all,

This space was created for the Enterprise 2.0 class.

Please check out all of my weekly blogs and post some of those juicy juicy comments!

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