digital natives: the new generation

DigitalNatives

Jean HeninRafael MartínJonatas Melo

Stephanie Weg

Videohttp://www.youtube.com/watch?v=sIFYPQjYhv8

Why are we here?

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A new generation is…already here

• Digital Natives are ~30% of the total population in developed countries

• By 2018, Digital Natives will constitute 50% of the working population

• 90% owns a computer• 80% owns a mobile phone• Spend more time online than watching TV

(Source: Pacific Northwest Apprenticeship Symposium 2009, Forrester Technographics Benchmark Survey (2008) & International Database (IDB)

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There are clear generational differences in online activities

• Online games• Instant messaging• Social networking• Download music• Blogging

• Health info• Buying online• Online banking• Government sites• Religious info

Digital Natives Digital Immigrants

Collaborative Reactive

(Younger than 31) (Aged 31 and above)

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The world is getting mobile…

2007 2008 2009 2010 2011 2012 2013 2014 20150

500

1000

1500

2000

2500

Mobile Internet usersDesktop internet users

Desktop vs Mobile(million users)

In 2014, more mobile internet users than desktop ones are expected(Source: Morgan Stanley Research)

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…and socialEmail vs Social Networking

(minutes spent)

(Source: Morgan Stanley Research)

2 years ago, users spend more time on Social Media than on emails

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Brands are promoting themselves through different media

Brands # Fans(million)

Starbucks 7.7Skittles 4.9Oreo 4.7Redbull 4.2Victorias’s Secret 3.7Pringles 3.4Adidas Originals 3.0

(Source: Facebook)

Facebook Fans

What are YOU doing?

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Objectives• Becoming aware of a generational

change• Learning about how companies could

be impacted: risks and opportunities

• Broadening your perspective to think about future strategies

1. Who are Digital Natives?

Videohttp://www.youtube.com/watch?v=7_zzPBbXjWs

Digital Natives

(Source: “Digital Natives, Digital Immigrants” – Marc Prensky (2001))

Digital Immigrants

The Digital World is populated by Digital Natives and Digital

Immigrants

• Adopters• Speakers with an accent

• Grown up in a digital world• Native speakers of digital language

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The most common applications among the Digital Natives are Facebook, LinkedIn,

…

(Source: www.facebook.com & www.facebakers.com)

• Personal home page• Status updates• Pictures• Events

• 400+ mm active users• 3+ bn photos / month# 2

• Professional profile• Networking• Job search

• 70+ mm members• All Fortune 500 companies# 29

(Source: www.linkedin.com)

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… YouTube, Twitter and Blogs

(Source: www.facebook.com & www.facebakers.com)(Blogs)

• User-generated info• Easy to create content• Interactive

• 113 mm blogs (2008)

# 3

• Video sharing platform• Comments & Rating

• 2 bn views / day• 24 hours uploaded / min(Source: http://www.digitalbuzzblog.com)

• Real-time status updates• Private messaging• Retweeting (forwarding)

• 106 mm active users• 50 mm tweets / day# 11

(Source: Twitter Chirp & www.rjmetrics.com)

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Digital Natives shape the digital world…

…and the digital world shapes the Digital Natives

Digital dependent

Entitled

Participatory

Playful

Instantaneous

2.- Characteristics and Behaviors

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Playful

Love to experiment and create – in unconventional ways

Benefits• Intuitive• Dare to try and risk• Unleash imagination• See work as fun

Challenges• Not target oriented• Unstructured• Find, don’t memorize• Disruptive

• More than 1.5 millions pieces of content are created dailywww.facebook.com

•17% of US top companies have disciplined an employee for violating message board policies 19

Playful Entitled Digital Dependent ParticipatoryInstantaneous

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Entitled

Demand rather than ask – feel that life owes them something

Benefits• Aware of needs• Autonomous• Follow their dreams• Pursue happiness

Challenges• High expectations• Egocentric• Embrace individuality• Low threshold to quit

15% expect more frequent opportunities to change jobslife Robert Half International

Biggest driver for resignations: failure to meet expectations http://www.humanresourcesmagazine.com.au/articles/FB/0C0516FB.asp 21

EntitledPlayful Digital Dependent ParticipatoryInstantaneous

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Instantaneous

Want to be constantly engaged – sometimes at a cost

Benefits• Instant reaction• Multitasking• Cross-referencing • Adapt to change easily

Challenges• Get bored easily• Lower task quality• Unfocused• Instant gratification

The collision risk of drivers is 23 times greater when texting http://www.keyorganization.com/time-management-statistics.php

Shipping that takes longer than 2 days is a reason not to buy

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InstantaneousPlayful Entitled Digital Dependent Participatory

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Digital dependent

Famous digital star - prisoner of the technology

Benefits• Perform well remotely• Are mobile• Inclusive recognition• Access to network

Challenges• Technology as a goal• What’s "OMG2bad4U” ? • Lost in a virtual world• Fans take over brands

85% use social networking sitesPricewaterhouseCoopers LLP

200 millions searches every day on GoogleGoogle

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Digital dependentPlayful Entitled ParticipatoryInstantaneous

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Participatory

Give and take active participation – whether expected or not

Benefits• (Inter-)Active• Prepared to share• Collaborative• Sustain culture

Challenges• Expect to be engaged• Demand power• Unlimited sharing• Time to delivery

Digital Natives prefer consensus over hierarchical decisions http://www.millennialinc.com/Millennial_Inc_PRINTPDF.pdf

Word-of-mouth is the preferred information source 42% http://www.millennialinc.com/Millennial_Inc_PRINTPDF.pdf

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ParticipatoryPlayful Entitled Digital DependentInstantaneous

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Remember: Digital Natives are…

Digital dependent

Entitled

Participatory

Playful

Instantaneous

3. Implications to Companies

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Behavior and technology deeply affect traditional marketing

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Web Page Games YouTube FacebookMyspace Twitter

VALUE PROPOSITION

Consistency of value proposition accross all virtual media is

fundamental

> 230.000 “like this”

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Total Views > 3.8 million

Consistency of value proposition accross all virtual media is

fundamental

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Should the PR and CRM policies incorporate Social Media capabilities?

Good PR on twitter can be beneficial for a

company

Bad PR on twitter can destroy a

company

Micro-blogosphere

Blogosphere Highly

traffickednews

websites &blogs

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Comcast said… yes!

+• Monitor brand comments• Answer every tweet• Customer service tool

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But social media can also be very dangerous if not well managed

(Source: Welcome to the world 2.0: Fahri Karakas)

Talent Management should focus on leveraging Digital Natives capabilities

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Google people management practices are innovative and address digital natives needs

US$ 21 billion in revenues

Trust Freedom Confidence

Working time80:20 rule

Personal Project Google

(Source: www.google.com)

4. Take aways

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Going back to your business, leverage the opportunities Digital Natives

bring…

…achieving a balance that works for all generations

Me - Explore

Employees - Listen

Customers - Serve

Think...

then…

REthink

Thank you very much

Jean Henin, France jean.henin@mba2010.imd.ch 7 years international operations in FMCG (L’Oréal, Electrolux, Nespresso)

Rafael Martín, Spainrafael.martindeagartirado@mba2010.imd.ch 7 years IT Consulting as an entrepreneur (Emergya)Future: IT Consulting, focused on Social Networking

Jônatas Melo, Braziljonatas.melo@mba2010.imd.ch 10 years Supply Chain, Logistics, Projects and Sales in Oil & Gas and Industrial products (ExxonMobil, Cosan)

Stephanie Weg, Germany stephanie.weg@mba2010.imd.ch 5 years International IT Project Management in Industrial Applications, Healthcare (Siemens)

Back-up slides

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Generational differences in online activities: Millennials win..

(Source: Pew Internet and American Life Project)

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… though not in all activities… yet!

(Source: Pew Internet and American Life Project)