The Customer is Always Right (or at least able to convince the Internet masses they are)

       With the dominance of social networking, user generated content, and the ability to comment on just about anything, web 2.0 has changed the way consumers interact with corporations, especially when they are pissed off. Many corporations are performing the role of laggards, as they do not realize the impact of web 2.0 on their business models until it is brought to their attention. This is done by the consumers directly through a variety of online statements, videos, and discussions that can quickly turn into public relations nightmares.

        On March 31, 2008, David Carroll and his band Sons of Maxwell flew on United Airlines from Halifax to Omaha, with a stopover in Chicago. Upon landing in Chicago a woman commented, “My god they’re throwing guitars out there.” David and his band’s instruments were being thrown by baggage handlers, without any regard for their delicacy (David Carroll Music, 2008). Upon finally arriving in Omaha, David Carroll found that the base of his $3500 Taylor guitar was smashed. When it became clear that nobody from Untied Airlines would compensate him for the damage, Carroll took his plight online with the following video:



       9 200 321 views later, David Carroll has a record deal, been interviewed by every major news network including CNN and Fox News, was given two new guitars by a guitar manufacturer, and United Airlines made a charitable donation in his name (CNN, 2010).

       A more recent example occurred in August of 2010. Tanner Bawn is a terminally ill boy who flew with his family from Toronto to New York on Air Canada. Upon arriving in La Guardia airport the family learned that Tyler’s $15 000 custom wheelchair had been reduced to pieces (CBC, 2010). Air Canada’s initial response was to provide Tanner with a regular wheelchair, and after hearing from the family that this was inadequate proceeded to provide an electronic scooter-type wheelchair that was also inadequate (CBC, 2010). Tanner’s aunt tweeted @herbadmother the events as they unfolded. This struck a cord with readers, and created what the media dubbed a “twitter storm” (MarketingMag, 2010). Within twenty-four hours hundreds of angry tweets led to Air Canada fully repairing the wheelchair to its original form, and offering the family a free trip to Disney World (CP24, 2010).

       Despite the popularity of taking one’s customer service plight online, corporations do little research into the impact of web 2.0 technologies on their core business models. It is only through researching these socioeconomic impacts that a corporations or an individual could respond fluidly to future threats, or be able to predict such occurrences before they happen. Such research would provide tangible results in the forms of increased brand recognition, a stable digital reputation, and new form of transparent online communication directly with the customer. Remember, the customer is always right (or at least able to convince the Internet masses they are).

References

Carroll, David. (March 31, 2008) Story.
http://www.davecarrollmusic.com/ubg/story/

CBC News. (August 5, 2010) Air Canada fixes ill boy’s wheelchair.
http://www.cbc.ca/canada/toronto/story/2010/08/05/air-canada-twitter-chair541.html

Marketer News. (August 5, 2010) Air Canada in Twitter storm over boy’s broken wheelchair.
http://www.marketingmag.ca/english/news/marketer/article.jsp?content=20100805_152554_6260

Stern, Linda. (September 14, 2010) How to get what you want from customer service.
http://money.cnn.com/2010/09/13/pf/dealing_with_customer_service.moneymag/

The Canadian Press via CP24. (August 5, 2010) Air Canada repairs broken wheelchair of boy with muscular dystrophy.
http://www.cp24.com/servlet/an/local/CTVNews/20100805/100805_wheelchair/20100805/?hub=CP24Home

Book Review: Network Power - David Singh Grewal

       Globalization is reintroduced to society in David Singh Grewal’s "Network Power". A volume that contains so much information, it can easily be viewed as a contemporary globalization handbook. Grewal’s perspective is fresh and bold, albeit not empirically substantiated. The lack of empirical evidence is easily overlooked, by the sheer intelligence of Grewal’s arguments, and the historical validity of his observations and considerations.

       Grewal himself acknowledges that globalization is a beast of a topic that can often be misdefined, or misused. "The global coordination of international standards" is the one-line definition of globalization Grewal wants readers to keep in mind, as he introduces the main theme of the book, network power. This is essentially a type of global common sense that is adopted by a network of people, governments, and nations either directly or indirectly. It relies on the concept that standards are of greater value when more people use them, and some standards are established through sovereign collective decision making, while others are defined through decentralized local decisions that in the end, affect the entire group. These standards create network power, which directly and indirectly guides globalization.

       “The idea of network power argues that we are pulled by our choices along avenues smoothed by the prior choices of others.” In conjunction with this theme, the dominance of the English language is explored and justified by its economic necessity. Grewal has an interesting argument with himself on evaluating the quality of network power, and what can be done to defuse it when necessary. This is a bold stance to take, as Grewal is challenging his own beliefs, to prove just how valid they are. The book is very balanced between traditional topics of globalization like technology and world trade, while still covering new and edgy topics like neoliberalism, and our goal of not descending into a McWorld through cultural globalization.

       “Globalization can be reworked, but not rejected…it depends on what we decide to make of it together.” This message is consistent throughout the book, reminding readers that globalization is not going anywhere, while reinforcing the concept of network power. It reminds readers that the standards we establish together will end up carrying greater validity then the ones we define by ourselves. A bold message to anti-globalization theorists, and a rational message to the average reader trying to understanding this newly shaping world.

 Grewal, David Singh. Network Power: The Social Dynamics of Globalization.

         Ann Arbor, MI: Sheridan Books, 2008.

Television Viewership and IP Video: Adopting a New Business Model

“From 2007 – 2009, I coordinated website content and online initiatives for a community television station. In this time I was able to experience first hand the fear traditional television stations have of losing viewership to the internet.”

The traditional television business model generates revenue through commercials and advertisements. This revenue is in turn used to finance production and generate profit. This model is completely dependent on viewership. The more viewers, the more valuable the advertising space and therefore the more revenue generated.

This business model went undisturbed for decades until the internet and IP video challenged television as the supreme source for entertainment, news, and information. Many traditional television stations fell into a panic, while others were innovative enough to realize that websites and television channels share the same business model. Websites are financed by advertisers who want the same thing they do on television. On the internet viewership is referred to as impressions or hits, but the concept is the same, the more hits the more revenue.

How can a television station use this information to their advantage? For starters, stop resisting the internet. Let’s say a station’s total viewership was 100% before the internet and IP video. After the internet and IP video their viewership dropped to 50%, with the other 50% going online. At this point in my example many television professionals identify the internet as a competitor, and refuse to post their station’s content online. They fear that by taking their content online they will reduce viewership further. What they don’t realize is that if they did post their content online they would be able to raise their viewership back to 100%. The solution is in online advertising. If you carry commercials either before, during, or after your IP video you can recover the revenue lost, and maintain 100% viewership by having 50% watch traditional television and 50% watching online. Essentially you are producing the same content and splitting it between two mediums. Advertisers won’t care as all they want is viewership.

Congratulations to FOX, ABC, Showcase, and many other television stations that have figured this out on their own. As for the others, next time you get a viewer response asking for your content to be posted online, listen! The internet isn’t going anywhere, and if you continue to resist you will lose control of your content. People are pirating your content as I write this. At least if you post the content yourself, you will control its distribution, and therefore its monetary value. Or, you can keep resisting. We all know how well that worked out for the music industry. Doesn’t a computer company distribute most of the world’s music now?

Masters of Media Research Blog

Through my studies at the University of Amsterdam (UvA) I will be participating in the Masters of Media Research Blog. It features posts by media theorists, UvA alumni, and current UvA New Media students. All materials I post there I will post here as well, to consolidate my online writings.

Introduction

I am a Canadian project manager who asked himself the question, what projects would I like to manage?

The short answer to my question is New Media, but the long answer is this blog.

Project management is such a broad field, I quickly learned that to enjoy work I need to focus on projects that match my interests. My interests revolve around IP video, gaming, augmented reality, human-computer interaction, and social networking.

I completed my bachelor studies in communications and information technology at the University of Toronto. My professional experience focuses on coordinating internet-based projects for a major Canadian telecom company. The projects I managed specifically focused on video podcasting, IP video, and social networking. Independently I have produced numerous concerts in the Greater Toronto Area, and have worked on a variety of events by North By Northeast, Random Sounds, and Open Roof Films. I currently find myself studying at the University of Amsterdam, in the Masters of New Media program.

Now, when people ask me what type of projects I manage I answer, "Nieuwe Media, eh!"