Branding in a LinkedIn Economy by hcj

VIEWS: 25 PAGES: 15

									  Profiting In A LinkedIn                                         Economy


                         Dannielle Blumenthal, Ph.D.
                              @thinkbrandfirst

                                         July 2011




Please feel free to reuse and adapt this presentation with attribution. All opinions my own.
                                            E  con  o  my
                                                           (ɪˈkɒnəmɪ)
                                                                  “The complex of human activities
                                                                  concerned with the production,
                                                                  distribution, and consumption of goods
                                                                  and services.”




Definition from World English Dictionary; photo by Dave Hoefler
                     Economists Ask:
            “How Does The System Sustain Itself?”
   Family | Education | Healthcare | Politics | Science| Crime| War| Business



                                      “Producer”
                                                                                    “Consumer”
                                        makes
                                                                                       uses
                                        product
                                                                                      product
                                       or service




                                                           Consumer
                                                          Compensates
                                                            producer,
                                                             so they
                                                            can keep
                                                           producing
Image here; Economic areas of study from Wikipedia; Source for cycle concept here
       Capitalist Businesses Are Mini-Economies
                    Created for Profit




                    Owner                             Owner sells to                         Owner keeps
                    produces/distribut                consumer with                          the
                    es product or                     added fee                              difference
                    service



Definition of a business here; Willy Wonka factory image here; Augustus Gloop image here; money image here
    Production In The Industrial (Machine) Age:
      A Thinking Worker Threatens Profitability
          • Until the dawn of the knowledge-
            based service economy, return on
            employee investment was win-
            lose.

          • In return for subsistence wages,
            employees performed repetitive,                                               Land (Resources)
            un-engaging, often strenuous,
            sometimes dangerous physical
                                                                                              Factors
            labor.
                                                                                                of
                                                                                            Production
          • Workers who challenged or
            deviated from routines created
            inefficiency.

          • Workers who thought “outside the
            box” were a threat.
                                                                          Labor                                      Capital
          • The employer’s attitude: “When I
            want your opinion I’ll give it to
            you.”

Factors of production here; Definition of surplus value here; quotation here; grass image here; worker image here; money image here
           The Industrial Age Is Now Over,
        Product Manufacturing Is Cheap, and
         Service (Knowledge) Creates Profit.




Image source here
    Now That Basic Needs Are Easily Available,
     Owners Must Create Consumer Demand



                      Using

                      Logic

                          &

                    Emotion




Definition adapted from: Wikipedia; Image source here
             They Need Thinking Employees
            To Create Demand and Cut Costs

     “Innovation in
     the current
     climate is about
     making
     processes more
     efficient….trying
     to work smarter.”
     —Frank Ponsioen,
     partner, Grant
     Thornton International




Source: Grant Thorton International Business Report Survey 2009 (most recent); pie chart created using this free tool
                            Thinking Employees Create
                                   Strong Brands
       •    Michael Porter: 2 kinds of
            competitive advantage—
              – Cost
              – Differentiation

       •    Differentiation advantage
            derives from strong brand
              – Perceived functional benefit
              – Perceived emotional benefit

       •    The stronger the brand the
            more profitable the
            consumer:
              –   Buys the first time
              –   Keeps on buying
              –   Willingly pays a premium
              –   Buys new brands
                  introduced/endorsed by same
                  owner

Michael Porter’s model here; Image source here
               Throughout The Business Cycle,
            Profit Is Created Through Brainpower
     • Production:
          – During the Industrial Age, employers
            made money by manipulating
            vulnerable employees into
            submission
          – In the information age, they make
            money by harnessing employees’
            brainpower on their behalf
     • Consumption:
          – Business owners depend on
            employees to cut costs and create
            customer demand
          – The brands employees create
            attract customers to pay more and
            buy frequently
          – Customers willingly pay a premium
            based on the perception of value




Definition of profit here; image source here
  Today’s Knowledge Workers Have Skills
          But Not Permanent Ties




Marriage rates are at their lowest in a century and about 2 out of 5 end in divorce. 1 out of 4
children lives in a single-parent household. 2 out of 5 births are to unmarried women.
Approximately 3 out of 4 children are not being raised by a stay-home-mother or father. 1 in 6
Americans move each year. The average young Baby Boomer changed jobs 11 times
between the ages of 18-44 and Generations X and Y have similar expectations.
                So They Make Up For It
           With Constant Social Networking

    Connections Proliferate                          Updated Frequently




Social networks image here; Updating frequency graphic here
        “LinkedIn” Companies Can Harness This
               For An Era of Mutual Profit
    •    A “LinkedIn” company is any
         organization that connects with
         employees as partners seeking
         mutual gain

    •    These companies network internally
         and externally and they
         encourage employees to do the
         same

    •    These companies understand that
         value is added through the process
         of communicating freely, and
         learning best practices from all
         sources, even competitors

    •    The LinkedIn Economy is powered
         by people who think ahead of the
         curve and who are also socially
         connected in productive, long-
         term work relationships that persist
         after one has moved from one
         organization to the next.

Image source here
                       How Can They Do It?
    •   It is no longer necessary to exploit
        employees to make a profit.
        Rather, profit is gained when they
        are encouraged to self-actualize.

    •   Employee innovation and cost-
        cutting builds their careers and
        their employers’ bottom line.

    •   Work achievements are bolstered
        when both sides invest emotionally
        in the relationship.

    •   To make the most of this
        opportunity, communicate with
        employees about what the
        company’s goals are, how
        employees can help, what the
        rewards are, and who exemplifies
        corporate success.



Image source here
Good Luck!

								
To top