Tag Archives: linkedin

Economic Graph: Why Microsoft bought LinkedIn?

“You might feel a sense of excitement, fear, sadness, or some combination of all of those emotions. Every member of exec team has experienced the same, but we´ve had months to process”
Jeff Weiner, LinkedIn Ceo

LinkedIn was bought for $26.2 billion in an all-cash deal this week. It is one of the biggest acquisitions this year and the biggest acquisition in the history of Microsoft. Failure rate of mergers and acquisitions in general is somewhere between 70% and 90% and Microsoft has not really been an exception. This deal might still actually make sense. Below I present some of the main points why Microsoft bought LinkedIn.

“LinkedIn will become the social fabric across all of Microsoft”
Satya Nadella, Microsoft CEO

Data is power
Firstly, Microsoft is mainly buying access to the lucrative professional audience. LinkedIn has 433 million users of which pretty much everyone is on their target audience. LinkedIn will be run as a separate entity (a bit like Instagram within Facebook), but naturally there is vast amount of insights to be gained from the platform that would benefit Microsoft in multiple ways (product development etc.). Microsoft will want to create an economic graph, alike to Facebook´s social graph but with people with money.
Better productivity: Goodbye work-life balance
Microsoft has been aggressively pushing their cloud solutions. The first possible use cases Satya Nadella mentioned in his memo were around connecting Office 365, Dynamics and LinkedIn database. You could for example get articles in LinkedIn newsfeed based on the actual project you are working on. Or Office could suggest you to connect with expert to connect via LinkedIn to help you complete a task you are working on. When you are going to a new business meeting you would get automatically the background information from LinkedIn. Great functions, but are they worth the $26 billion price tag?

LinkedIn as a CRM Platform
Currently Microsoft is at fourth place in CRM software, behind Salesforce, Sap and Oracle. Merging databases with LinkedIn could bring Microsoft much needed advantage in this field. Of course around 75% of CRM implementations fail, but that also means that there is target market not particularly happy with their current products.

This deal might be really good thing for the future of LinkedIn. The platform has not really evolved from recruiting site, which is a challenge if majority of your audience is not actively looking for a job. Although some argue that LinkedIn is a content company, only 25% of LinkedIn users return every month to the site. Connecting with Microsoft might give it a boost that it needs to stay relevant in the competitive social media space. Twitter could do with similar boost.

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Personal Blogs Are Dead. Long Live Personal Blogs.

Fish where the fish are.

That has been my mantra for a long time. It does not make sense for brands to build expensive destinations and then spend shitloads of money trying to force people to discover those destinations where they don´t want to go in a first place. Generally it is better to collaborate with existing successful destinations. Two thirds of the apps get under 1000 downloads. Same way as it makes more sense to borrow relevance from already popular unit than trying to make your brand popular yourself.

In many ways the same applies for blogging. We who are still blogging in WP, blogspot, etc. are relics of an old age. Nowadays if you have some thoughts you want to write, better to highlight them on Medium or LinkedIn. There is an existing user base and recommendation algorithm helps your content to pop out there. Majority of readers to this blog come from Twitter & LinkedIn, so why not be even closer to the reader?

I realize the value of Medium & LinkedIn, but at the same time I also recognize the value for having something “own”. Own naturally being quite relative term in here, because probably WordPress can switch my account off anytime. That is why it also still makes sense for companies to have a website. In the digital world where information ownership is getting centralized to few major players, it might still make sense to retain some of your intellectual property to yourself.

That being said, I will feature some of my “best” posts from here in Medium and later on LinkedIn. Mainly I want to test them out from user perspective and also compare the reach. Also being a lazy and egoistic person, I feel that I could easily revisit my highly intelligent gems with no big effort and get some more readers.
You can find the greatest hits in Medium.

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Endorsements: LinkedIn Likes?

During last couple of weeks, there have been sudden surge of people adding their business skills in LinkedIn. The main reason for this is that  you can now do one-click endorsement of particular skill of your LinkedIn contacts. It is as easy and probably as worthwhile in professional way as Facebook like in less-professional setting. I don´t know will the amount of endorsements affect your employment opportunities in future, unless you apply to become a social media manager.
More than just another way to flex the virtual vanity, endorsements are a great example of smart “nudging” from LinkedIn to make people use their service more. More complete LinkedIn profiles, the closer will be the day that your LinkedIn profile has completely replaced traditional CV.
LinkedIn Endorsements is a great example of the power of social recognition and how it can be one of the most powerful incentives you can have. Overall LinkedIn has been build brilliantly combining nudges, gamification and social elements to make people make their profile complete and spend more time with the service. Naturally that helps LinkedIn to better monetize their service with advertisers. And while everyone has been concentrating on hoopla around Facebook, LinkedIn has been doing their thing more quietly and arguably more effectively (at least adjusted to user numbers) as well.
And thanks for all the endorsements I have gotten in LinkedIn. I probably thank by endorsing you back.
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