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1Creating A CoherentSocial Media StrategyCharlene LiAltimeter Group2011 April 12Twitter: @charleneliEmail: charlene@altime...
2© 2011 Altimeter Group
3       It’s time to move past experiments© 2011 Altimeter Group
It’s about RELATIONSHIPS© 2011 Altimeter Group
5                          Agenda                          Strategy                          Lead                       ...
6                          Agenda                          Strategy                          Lead                       ...
7       Strategy Process Stages                                    Formulation             Discovery   Ideation           ...
8       Strategy Process Stages                                    Formulation             Discovery   Ideation           ...
9       Align social with key strategic goals                              Examine your                              2011 ...
10       Objectives differ by level         Corporate             Risk          management      Business unit             ...
11       Ask the Right Questions about Value                         “We tend to overvalue the things we can              ...
12       Use appropriate metrics at each level                          Corporate        Business metrics: revenue,       ...
13       Assess your readiness to be social        Highlight where you are strong, where you need         to develop.    ...
14       Benchmarking Social Readiness (Before)                         December 2009© 2011 Altimeter Group
15       Benchmarking Social Readiness (After)                         April 2010© 2011 Altimeter Group
16       Strategy Process Stages - Discovery                                          Formulation             Discovery   ...
17       Evaluate each initiative                         Impact             Readiness                         • How does ...
18       Define Your Strategy With Objectives                                  Dialog                         Learn   Supp...
How does social media matter to B2B?                             Chief stakeholders may                             not be...
20       People in B2B use social media for work                     Read user ratings/reviews for                        ...
21                          Agenda                          Strategy                           • Learn                   ...
22       Track brand mentions with basic tools                                  What would happen                         ...
23       Integrate monitoring with workflow                                                  Other providers              ...
24       Be sure to track the actual conversations,       not just the tweets                                    @JaimieH ...
25       How KLM listened and surprised flyers© 2011 Altimeter Group
26       Go beyond basic monitoring to analytics                                                                          ...
27       Shoppers want to be “known”              I walk into the store       Store knows it’s me                         ...
28       Community insight platforms      » Communispace and            Passenger offer           online focus groups     ...
29       Pros and cons of private communities        Private communities give better control               • Get input fr...
30       Learn also from your employees© 2011 Altimeter Group
31       Go beyond traditional data to understand       your customers                         Demographic                ...
32       Socialgraphics asks key questions       1. Where are your customers online?       2. What social information or p...
33       Engagement Pyramid                          Curating                          Producing                         C...
34       Engagement Pyramid - Watching                                         Watch videos                          Curat...
35       Engagement Pyramid - Sharing                          Curating         Share a link                              ...
36       Engagement Pyramid - Commenting                          Curating    Comment on a blog                           ...
37       Engagement Pyramid - Producing                          Curating      Write a blog                               ...
38       Engagement Pyramid - Curating                          Curating                                      Moderate a w...
39       Engagement Pyramid Data                                                                                  United  ...
40       Putting socialgraphics to work        Conduct research to identify the social behaviors of your         target c...
41       Summary - Learn        Listen and learn from your customers.        Start with basic monitoring tools, but quic...
42                          Agenda                          Strategy                           • Learn                   ...
43       The New Normal        Conversations, not messages        Human, not corporate        Continuous, not episodic©...
44       Blogs establish thought leadership                             CEO Richard Edelman has                           ...
45       SonyEurope rewards Twitter followers with       discount that drives significant sales                           ...
46       VW inserted a tweet analyzing tool into their       banner ad to suggest a specific model© 2011 Altimeter Group
47       Spain Tourism used multiple channels to       encourage dialog/sharing© 2011 Altimeter Group
48       Kohl’s engages directly with customers© 2011 Altimeter Group
49       B2B can also use Facebook                             • Develop                               relationships with ...
50       Encourage commenting to get into       the Facebook news feed© 2011 Altimeter Group
51   Premier Farnell supports engineers with   community, and employees with “OurTube”© 2011 Altimeter Group
52       Getting people to share within your       company        Give out Flip cameras/smartphones               • Set u...
53       Tivo joined an existing community© 2011 Altimeter Group
54       Advocacy – A five-phase approach                                                     Phase 4:      Phase 1:      ...
55       Tesco engages influencer blogs                                   Blog post series                                ...
56       Summary - Dialog        Have an authentic conversation with your         customers that they want to have.      ...
It’s about RELATIONSHIPS© 2011 Altimeter Group
© 2011 Altimeter Group
1Support and Innovate WithYour CustomersCharlene LiAltimeter Group2011 April 12Twitter: @charleneliEmail: charlene@altimet...
It’s about RELATIONSHIPS© 2011 Altimeter Group
3                          Agenda                          Strategy                           • Learn                    ...
4       Vodafone UK uses Twitter to proactively       communicate with customers                                 Vodafone ...
5       Ritz-Carlton managers monitor Twitter for       real-time service                                   Property manag...
6       Support during a crisis                                 Used #euva and                                 #ashtag to ...
7       DellOutlet supports sales with Twitter© 2011 Altimeter Group
Question & Answer sites provide opportunity       for support© 2011 Altimeter Group
9       Q&A encourages dialog too© 2011 Altimeter Group
10       iRobot ties discussion boards into       customers support                                    iRobot escalates   ...
11       Salesforce.com Service Cloud ties       social channels back to customer data© 2011 Altimeter Group
12       Solarwinds’ community is strategic© 2011 Altimeter Group
13       Retailer Best Buy has 2,500 employees       providing support via Twitter© 2011 Altimeter Group
14       Summary - Support        Real-time isn’t fast enough.        Integrate “social” support into your support      ...
15                          Agenda                          Strategy                           • Learn                   ...
16       P&G uses reviews to improve products© 2011 Altimeter Group
17       Danish bank ask for help to improve       mobile banking on Facebook© 2011 Altimeter Group
18       Finnish post created an idea exchange© 2011 Altimeter Group
19       Fiat invites ideas for a new car© 2011 Altimeter Group
20       Archer collects product development       ideas in a private community© 2011 Altimeter Group
Starbucks involves 50 people around the       organization in innovation                                   Over 100 ideas ...
Dell taps employee ideas too© 2011 Altimeter Group
23       P&G goes outside for innovation                                          P&G made                                ...
24       Success story: Glad Press’n Seal        P&G developed technology from diaper research        Reached out to com...
25       ModCloth has customers merchandise       new products© 2011 Altimeter Group
26       Summary - Innovating        Innovating can come from any customer or         employee interaction.        Dedic...
27       Strategy Process Stages                                      Formulation             Discovery     Ideation      ...
28       What’s the Next Big Thing?© 2011 Altimeter Group
29© 2011 Altimeter Group
30       Identify and prioritizing disruptions that matter     User Experience     Business Model     Ecosystem Value     ...
31       1) Likenomics (credit to Rohit Bhargava)       “How personal relationships, individual opinions,       powerful s...
32       Likenomics evaluation        User experience impact - moderate               • People with high social currency ...
33       2) Social Search – Beyond Friends to Interests                                       Social sharing rises        ...
34       Social Search evaluation        User experience impact - Moderate               • Search becomes more useful, re...
35       3) Big Data        Social monitoring merges with Web analytics               • HOT: Omniture, Coremetrics/IBM, W...
36       Big Data evaluation        User experience impact - Low               • Most users won’t directly experience Big...
37       4) Game-ification© 2011 Altimeter Group
38       TurboTax used “games” to encourage       sharing and support                                 Social design can   ...
39       Gamification evaluation        User experience impact – High               • Experiences get richer, more engagi...
40       5) Curation© 2011 Altimeter Group
41       Curation evaluation        User experience impact – Moderate               • User authority established from bet...
42       Summary of disruptions                            User      Business    Value                         Experience ...
It’s about RELATIONSHIPS© 2011 Altimeter Group
44 44          Thank you                         Charlene Li                         charlene@altimetergroup.com          ...
1Leading The OpenOrganizationCharlene LiAltimeter Group2011 April 12Twitter: @charleneliEmail: charlene@altimetergroup.com
It’s about RELATIONSHIPS© 2011 Altimeter Group
3                          Agenda                          Strategy                           • Learn                    ...
OUT of CONTROL?© 2011 Altimeter Group
5© 2011 Altimeter Group
6© 2011 Altimeter Group
7                         How to give up control                         but still be in command© 2011 Altimeter Group
8       Open Leadership                         Having the confidence                         and humility to give up     ...
9       10 elements of openness                         Information Sharing                         •   Explaining        ...
10       Explaining strategic decisions                Open book management                                       Managing...
11       Updating with every day stuff© 2011 Altimeter Group
12       Kohl’s has conversations on Facebook© 2011 Altimeter Group
13       Open Mic: When people contribute© 2011 Altimeter Group
14       Crowdsourcing new Walkers flavour© 2011 Altimeter Group
15       Open platforms make it easy to partner       and share               Open architecture   Open data access© 2011 A...
16       Decision making models                         Centralized   Democratic                         Consensus     Dis...
17       Social technologies make distributed       decision making possible               Manage complex tasks   Organizi...
18       Determine how open you need to be with       information to meet your goals                                Openne...
19       Complete the Openness Audit© 2011 Altimeter Group
20       Traits of Open Leaders                         Authenticity   Transparency© 2011 Altimeter Group
21       Transparency as an imperative© 2011 Altimeter Group
22       How Best Buy became open and social© 2011 Altimeter Group
23       Best Buy’s First Social Media Experts       Steve Bendt &       Gary Koelling© 2011 Altimeter Group
24       The Executive Advocate                   Barry Judge                 CMO of Best Buy© 2011 Altimeter Group
25       Barry’s first post© 2011 Altimeter Group
26       The Premier Black Fiasco       6.8 million       emails sent       instead of       1,000 test© 2011 Altimeter Gr...
Developing Open Leaders© 2011 Altimeter Group  2010
“You can imagine the Chatterati creating as                         much value as an SVP in the organization by           ...
29                          Agenda                          Strategy                           • Learn                   ...
30       #1 Create a Culture of Sharing© 2011 Altimeter Group
31       #2 Discipline is Needed to Succeed                                                                               ...
32       Five ways companies organize around social media© 2011 Altimeter Group
33       #3 Ask the Right Questions about Value                         “We tend to overvalue the things we can           ...
The new lifetime value calculation                                            • Percent that refer              + Value of...
35       35% increase in LTV captured                                 Year 1     Year 2      Year 3     Number of customer...
36       Make decisions with metrics               Find more fans                  with large                  networks   ...
37       #4 Prepare for Failure                         No relationships are perfect                         Google’s mant...
38© 2011 Altimeter Group
39       Structure your risk-taking and failure       systems to create resilience       1. Conduct pre- and post-mortems....
40       Action plan to prepare for failure        Audit the last few failures you and your         organization experien...
It’s about RELATIONSHIPS© 2011 Altimeter Group
42                         Give Up Control                         AND STILL BE IN COMMAND© 2011 Altimeter Group
© 2011 Altimeter Group
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  1. 1. 1Creating A CoherentSocial Media StrategyCharlene LiAltimeter Group2011 April 12Twitter: @charleneliEmail: charlene@altimetergroup.com
  2. 2. 2© 2011 Altimeter Group
  3. 3. 3 It’s time to move past experiments© 2011 Altimeter Group
  4. 4. It’s about RELATIONSHIPS© 2011 Altimeter Group
  5. 5. 5 Agenda  Strategy  Lead  Prepare© 2011 Altimeter Group
  6. 6. 6 Agenda  Strategy  Lead  Prepare© 2011 Altimeter Group
  7. 7. 7 Strategy Process Stages Formulation Discovery Ideation Planning Roadmap & Alignment© 2011 Altimeter Group
  8. 8. 8 Strategy Process Stages Formulation Discovery Ideation Planning Roadmap & Alignment Set context • Determine key objectives • Level of strategy (corporate, biz unit, brand) • Identify key metrics • Assess readiness© 2011 Altimeter Group
  9. 9. 9 Align social with key strategic goals Examine your 2011 goals Pick ones where social will have an impact© 2011 Altimeter Group
  10. 10. 10 Objectives differ by level Corporate Risk management Business unit Consistency Leadership development & culture across brands Social strategist Brand & COE Community Engagement Channel focus manager & metrics education Value metrics ROI metrics© 2011 Altimeter Group
  11. 11. 11 Ask the Right Questions about Value “We tend to overvalue the things we can measure, and undervalue the things we cannot.” - John Hayes, CMO of American Express© 2011 Altimeter Group
  12. 12. 12 Use appropriate metrics at each level Corporate Business metrics: revenue, CSAT, reputation. LOB/Geo Social media analytics: Insights, Stakeholders share of voice, resonance, WOM. Social Engagement metrics: fans, Strategist/Community followers, clicks. Manager© 2011 Altimeter Group
  13. 13. 13 Assess your readiness to be social  Highlight where you are strong, where you need to develop.  Don’t create strategies that you can’t execute.  Demonstrate impact of strategic work.  Categories for readiness assessment • Customer Profile • Communication • Market Analysis • Mindset • Processes • Roles • Organizational Model • Stakeholders • Education • Monitoring • Reporting© 2011 Altimeter Group
  14. 14. 14 Benchmarking Social Readiness (Before) December 2009© 2011 Altimeter Group
  15. 15. 15 Benchmarking Social Readiness (After) April 2010© 2011 Altimeter Group
  16. 16. 16 Strategy Process Stages - Discovery Formulation Discovery Ideation Planning Roadmap & Alignment Collect and prioritize strategic options • Metrics-based value assessment • Prioritize against objectives© 2011 Altimeter Group
  17. 17. 17 Evaluate each initiative Impact Readiness • How does it • Are there support an people who objective? can do this? • What metrics • Is there matter? budget? Risks Priority • What are the • Does this risks if we do initiative this? enable other • What if we work? don’t?© 2011 Altimeter Group
  18. 18. 18 Define Your Strategy With Objectives Dialog Learn Support Innovate© 2011 Altimeter Group
  19. 19. How does social media matter to B2B? Chief stakeholders may not be using social media. • But lieutenants will be. Social media is impacting how B2B decisions are being made. • Background research • Expertise • Search results impact© 2011 Altimeter Group
  20. 20. 20 People in B2B use social media for work Read user ratings/reviews for 62% business products/services Visit company profiles on social 62% media sites Visit company blogs 55% Participate in online business 51% communities or forums Ask questions on Q&A sites 49% Use Twitter to find or request 29% business information Source: 2009 Business.com Business Social Media Benchmarking Study (n=2,393)© 2011 Altimeter Group
  21. 21. 21 Agenda  Strategy • Learn • Dialog • Support • Innovate  Lead  Prepare© 2011 Altimeter Group
  22. 22. 22 Track brand mentions with basic tools What would happen if every employee could learn from customers?© 2011 Altimeter Group
  23. 23. 23 Integrate monitoring with workflow Other providers Alterian BrandsEye Buzzmetrics Cymfony Sysmos Visible Tech.From Radian 6, to be acquired by Salesforce.com© 2011 Altimeter Group
  24. 24. 24 Be sure to track the actual conversations, not just the tweets @JaimieH is a top diabetics advisor who was talking with an insulin pump maker© 2011 Altimeter Group
  25. 25. 25 How KLM listened and surprised flyers© 2011 Altimeter Group
  26. 26. 26 Go beyond basic monitoring to analytics Monitoring & analytics Deep support monitoring to integrated into prep & support everyday Centralized campaigns monitoring but workflow not actionable Tracks brand in business mentions unites using basic tools (Google, Make course corrections No monitoring Twitter) nearly real-time. in place Use predictive analytics to anticipate demand.© 2011 Altimeter Group
  27. 27. 27 Shoppers want to be “known” I walk into the store Store knows it’s me Give me offers And plans my visit© 2011 Altimeter Group
  28. 28. 28 Community insight platforms » Communispace and Passenger offer online focus groups solutions.© 2011 Altimeter Group
  29. 29. 29 Pros and cons of private communities  Private communities give better control • Get input from specific communities • Can target specific hard-to-reach communities  But they are hard to create – and maintain • Who needs to be included? Excluded? • Provide non-monetary incentives/rewards for participating in the community • Deserves and requires dedicated community manager • Integrate into your company’s support and innovation process© 2011 Altimeter Group
  30. 30. 30 Learn also from your employees© 2011 Altimeter Group
  31. 31. 31 Go beyond traditional data to understand your customers Demographic Geographic Psychographic Behavioral Socialgraphic© 2011 Altimeter Group
  32. 32. 32 Socialgraphics asks key questions 1. Where are your customers online? 2. What social information or people do your customers rely on? 3. What is your customers’ social influence? Who trusts them? 4. What are your customers’ social behaviors online? 5. How do your customers use social technologies in the context of your products.© 2011 Altimeter Group
  33. 33. 33 Engagement Pyramid Curating Producing Commenting Sharing Watching© 2011 Altimeter Group
  34. 34. 34 Engagement Pyramid - Watching Watch videos Curating Read blog posts Listen to podcasts Read tweets Producing Read discussion forum posts Commenting Sharing Watching© 2011 Altimeter Group
  35. 35. 35 Engagement Pyramid - Sharing Curating Share a link Share photos Share videos Producing Write a status update Retweet Commenting Sharing Watching© 2011 Altimeter Group
  36. 36. 36 Engagement Pyramid - Commenting Curating Comment on a blog Write a review Rate a product Producing Participate in a discussion forum Commenting @Reply on Twitter Sharing Watching© 2011 Altimeter Group
  37. 37. 37 Engagement Pyramid - Producing Curating Write a blog Create videos or Producing podcasts Tweet for an audience Commenting Sharing Watching© 2011 Altimeter Group
  38. 38. 38 Engagement Pyramid - Curating Curating Moderate a wiki or discussion forum Producing Curate a Facebook fan page Commenting Sharing Watching© 2011 Altimeter Group
  39. 39. 39 Engagement Pyramid Data United Spain Germany UK States Curating <1% <1% <1% <1% Producing 30.3% 21.1% 52.7% 26.1% Commenting 45.1% 31.9% 54.0% 34.4% Sharing 58.6% 61.8% 79.3% 63.0% Watching 82.2% 78.9% 89.3% 78.1% Source: Global Wave Index Wave 2, Trendstream.net, January 2010© 2011 Altimeter Group
  40. 40. 40 Putting socialgraphics to work  Conduct research to identify the social behaviors of your target customer  Also identify: • Where are they online: Surveys or brand monitoring • Who do they trust: Surveys • Who do they influence: Survey or brand monitoring • How they use these tools in context of your products: Most often surveys.  When you first understand your customers, your marketing efforts will naturally unfold.© 2011 Altimeter Group
  41. 41. 41 Summary - Learn  Listen and learn from your customers.  Start with basic monitoring tools, but quickly evolve them.  Invest in analytics that matter. Use metrics that are relevant to your business.  Understand the socialgraphics of your customers.© 2011 Altimeter Group
  42. 42. 42 Agenda  Strategy • Learn • Dialog • Support • Innovate  Lead  Prepare© 2011 Altimeter Group
  43. 43. 43 The New Normal  Conversations, not messages  Human, not corporate  Continuous, not episodic© 2011 Altimeter Group
  44. 44. 44 Blogs establish thought leadership CEO Richard Edelman has been blogging consistently since Setpember 2004.© 2011 Altimeter Group
  45. 45. 45 SonyEurope rewards Twitter followers with discount that drives significant sales SonyEuropes 10% off VAIO laptops deal to celebrate their 1,000 Twitter follower lead to over €1m worth of product ordered.© 2011 Altimeter Group
  46. 46. 46 VW inserted a tweet analyzing tool into their banner ad to suggest a specific model© 2011 Altimeter Group
  47. 47. 47 Spain Tourism used multiple channels to encourage dialog/sharing© 2011 Altimeter Group
  48. 48. 48 Kohl’s engages directly with customers© 2011 Altimeter Group
  49. 49. 49 B2B can also use Facebook • Develop relationships with job candidates, prospects, and current employees • Insert your content into newsfeed of fans • B2B is really people to people© 2011 Altimeter Group
  50. 50. 50 Encourage commenting to get into the Facebook news feed© 2011 Altimeter Group
  51. 51. 51 Premier Farnell supports engineers with community, and employees with “OurTube”© 2011 Altimeter Group
  52. 52. 52 Getting people to share within your company  Give out Flip cameras/smartphones • Set up an internal “OurTube” • Transcribe conversations into emails and posts  Ask people for best practices, reactions, advice, opinion in areas of passion.  Recognize key contributors.© 2011 Altimeter Group
  53. 53. 53 Tivo joined an existing community© 2011 Altimeter Group
  54. 54. 54 Advocacy – A five-phase approach Phase 4: Phase 1: Phase 2: Phase 3: Phase 5: Put Internal Identify Build Foster Advocates Readiness Advocates Relationships Growth First© 2011 Altimeter Group
  55. 55. 55 Tesco engages influencer blogs Blog post series highlights & drives traffic to blogs by Influencers. Twitter feed encouages engagement too.© 2011 Altimeter Group
  56. 56. 56 Summary - Dialog  Have an authentic conversation with your customers that they want to have.  Engage across and through social communities  Engage off of your Web site.  Recruit an army of customer advocates.  Respond to your prospects and customers in real time.© 2011 Altimeter Group
  57. 57. It’s about RELATIONSHIPS© 2011 Altimeter Group
  58. 58. © 2011 Altimeter Group
  59. 59. 1Support and Innovate WithYour CustomersCharlene LiAltimeter Group2011 April 12Twitter: @charleneliEmail: charlene@altimetergroup.com
  60. 60. It’s about RELATIONSHIPS© 2011 Altimeter Group
  61. 61. 3 Agenda  Strategy • Learn • Dialog • Support • Innovate  Lead  Prepare© 2011 Altimeter Group
  62. 62. 4 Vodafone UK uses Twitter to proactively communicate with customers Vodafone UK humanizes their Twitter account by including pictures of their support team and identifying different respondents by an “^” and the team member’s initials.© 2011 Altimeter Group
  63. 63. 5 Ritz-Carlton managers monitor Twitter for real-time service Property manager helped unhappy honeymooners© 2011 Altimeter Group
  64. 64. 6 Support during a crisis Used #euva and #ashtag to track Source: simplifying.com conversations© 2011 Altimeter Group
  65. 65. 7 DellOutlet supports sales with Twitter© 2011 Altimeter Group
  66. 66. Question & Answer sites provide opportunity for support© 2011 Altimeter Group
  67. 67. 9 Q&A encourages dialog too© 2011 Altimeter Group
  68. 68. 10 iRobot ties discussion boards into customers support iRobot escalates unanswered questions into support centers© 2011 Altimeter Group
  69. 69. 11 Salesforce.com Service Cloud ties social channels back to customer data© 2011 Altimeter Group
  70. 70. 12 Solarwinds’ community is strategic© 2011 Altimeter Group
  71. 71. 13 Retailer Best Buy has 2,500 employees providing support via Twitter© 2011 Altimeter Group
  72. 72. 14 Summary - Support  Real-time isn’t fast enough.  Integrate “social” support into your support infrastructure.  Scaling support to meet the groundswell will require that you create your own groundswell.© 2011 Altimeter Group
  73. 73. 15 Agenda  Strategy • Learn • Dialog • Support • Innovate  Lead  Prepare© 2011 Altimeter Group
  74. 74. 16 P&G uses reviews to improve products© 2011 Altimeter Group
  75. 75. 17 Danish bank ask for help to improve mobile banking on Facebook© 2011 Altimeter Group
  76. 76. 18 Finnish post created an idea exchange© 2011 Altimeter Group
  77. 77. 19 Fiat invites ideas for a new car© 2011 Altimeter Group
  78. 78. 20 Archer collects product development ideas in a private community© 2011 Altimeter Group
  79. 79. Starbucks involves 50 people around the organization in innovation Over 100 ideas have been implemented© 2011 Altimeter Group
  80. 80. Dell taps employee ideas too© 2011 Altimeter Group
  81. 81. 23 P&G goes outside for innovation P&G made outside-in innovation a priority© 2011 Altimeter Group
  82. 82. 24 Success story: Glad Press’n Seal  P&G developed technology from diaper research  Reached out to competitor Clorox to form a new joint venture  Helped Glad become Clorox’s second largest brand© 2011 Altimeter Group
  83. 83. 25 ModCloth has customers merchandise new products© 2011 Altimeter Group
  84. 84. 26 Summary - Innovating  Innovating can come from any customer or employee interaction.  Dedicated innovation communities require significant commitment and nurturing.  Extend your firewall to bring customers into your organization.© 2011 Altimeter Group
  85. 85. 27 Strategy Process Stages Formulation Discovery Ideation Planning Roadmap & Alignment Strategy statement • What you will do • What you won’t do Scenarios development • Implementation roadblocks • Company and leadership implications • Risk identification • Build resilience© 2011 Altimeter Group
  86. 86. 28 What’s the Next Big Thing?© 2011 Altimeter Group
  87. 87. 29© 2011 Altimeter Group
  88. 88. 30 Identify and prioritizing disruptions that matter User Experience Business Model Ecosystem Value •Is it easy for •Does it tap new •Does it change people to use? revenue the flow of •Does it enable streams? value? people to •Is it done at a •Does it shift connect in new lower cost? power from one ways? player to another?© 2011 Altimeter Group
  89. 89. 31 1) Likenomics (credit to Rohit Bhargava) “How personal relationships, individual opinions, powerful storytelling and social capital are helping brands…become more believable.” Understand the supply, demand, and thus, value of Likes as social currency See http://bit.ly/rohit-likenomics for Rohit’s take© 2011 Altimeter Group
  90. 90. 32 Likenomics evaluation  User experience impact - moderate • People with high social currency will enjoy benefits, richer experiences, receive psychic income. • People with low social currency will find ways to get it.  Business model impact – moderate • New economics create opportunity for people who understand Likenomics to leverage gas. • The cost of accessing social currency will increase, and raise barriers to entry.  Ecosystem value impact – none© 2011 Altimeter Group
  91. 91. 33 2) Social Search – Beyond Friends to Interests Social sharing rises as a search ranking signal, esp in the enterprise Create a social content hub to gain traction Use microformats to highlight granularity (e.g. hProduct & hReview)© 2011 Altimeter Group
  92. 92. 34 Social Search evaluation  User experience impact - Moderate • Search becomes more useful, relevant to people.  Business model impact – Moderate • SEO takes on a different dimension, rewards companies with social currency, personalized experiences.  Ecosystem value impact – Moderate • New power brokers are social data/profile players who capture activity data and profiles. • Google has little of either.© 2011 Altimeter Group
  93. 93. 35 3) Big Data  Social monitoring merges with Web analytics • HOT: Omniture, Coremetrics/IBM, Webtrends  Technology like Hadoop makes it easy for companies to tap “Big Data” • E.g. New York Times making its archives public • Twitter archived by Library of Congress • Facebook Cassandra, Amazon Dynamo, Google BigTable  Data visualization tools make it easy to digest  Balancing privacy and personalization© 2011 Altimeter Group
  94. 94. 36 Big Data evaluation  User experience impact - Low • Most users won’t directly experience Big Data.  Business model impact – High • New businesses and initiatives can be started at very low cost.  Ecosystem value impact – Moderate • Owners of Big Data repositories can assert control, demand payments for access.© 2011 Altimeter Group
  95. 95. 37 4) Game-ification© 2011 Altimeter Group
  96. 96. 38 TurboTax used “games” to encourage sharing and support Social design can enter training, collaboration, support, hiring© 2011 Altimeter Group
  97. 97. 39 Gamification evaluation  User experience impact – High • Experiences get richer, more engaging  Business model impact – Moderate • Work gets done faster, cheaper. • New organizational structures and cultures emerge.  Ecosystem value impact – Low • Service providers will remain focused, boutique firms.© 2011 Altimeter Group
  98. 98. 40 5) Curation© 2011 Altimeter Group
  99. 99. 41 Curation evaluation  User experience impact – Moderate • User authority established from better curation, better content is organized well.  Business model impact – Moderate • Easier for businesses to create their content.  Ecosystem value impact – Moderate • Individuals challenge media and brands as authorities – and publishers that siphon off ad dollars.© 2011 Altimeter Group
  100. 100. 42 Summary of disruptions User Business Value Experience Model Networks Likenomics Moderate Moderate Low Social Search Moderate Moderate Moderate Big Data Low High Moderate Enterprise High Moderate Moderate Soc Net Gamification High Moderate Low Curation Moderate Moderate Moderate© 2011 Altimeter Group
  101. 101. It’s about RELATIONSHIPS© 2011 Altimeter Group
  102. 102. 44 44 Thank you Charlene Li charlene@altimetergroup.com charleneli.com/blog Twitter: charleneli For more information & to buy the book visit open-leadership.com© 2011 Altimeter Group
  103. 103. 1Leading The OpenOrganizationCharlene LiAltimeter Group2011 April 12Twitter: @charleneliEmail: charlene@altimetergroup.com
  104. 104. It’s about RELATIONSHIPS© 2011 Altimeter Group
  105. 105. 3 Agenda  Strategy • Learn • Dialog • Support • Innovate  Lead  Prepare© 2011 Altimeter Group
  106. 106. OUT of CONTROL?© 2011 Altimeter Group
  107. 107. 5© 2011 Altimeter Group
  108. 108. 6© 2011 Altimeter Group
  109. 109. 7 How to give up control but still be in command© 2011 Altimeter Group
  110. 110. 8 Open Leadership Having the confidence and humility to give up the need to be in control, while inspiring commitment from people to accomplish goals© 2011 Altimeter Group
  111. 111. 9 10 elements of openness Information Sharing • Explaining • Updating • Conversing • Open Mic • Crowdsourcing • Platforms Decision Making • Centralized • Democratic • Consensus • Distributed© 2011 Altimeter Group
  112. 112. 10 Explaining strategic decisions Open book management Managing leaks© 2011 Altimeter Group
  113. 113. 11 Updating with every day stuff© 2011 Altimeter Group
  114. 114. 12 Kohl’s has conversations on Facebook© 2011 Altimeter Group
  115. 115. 13 Open Mic: When people contribute© 2011 Altimeter Group
  116. 116. 14 Crowdsourcing new Walkers flavour© 2011 Altimeter Group
  117. 117. 15 Open platforms make it easy to partner and share Open architecture Open data access© 2011 Altimeter Group
  118. 118. 16 Decision making models Centralized Democratic Consensus Distributed© 2011 Altimeter Group
  119. 119. 17 Social technologies make distributed decision making possible Manage complex tasks Organizing for speed  170 employees  65,000 employees  100 modules with  16 Councils, “module owners” 50 Boards make  One person makes strategic decisions the final decision in  Joint leadership of each module each group© 2011 Altimeter Group
  120. 120. 18 Determine how open you need to be with information to meet your goals Openness audit available at http://bit.ly/opennessaudit© 2011 Altimeter Group
  121. 121. 19 Complete the Openness Audit© 2011 Altimeter Group
  122. 122. 20 Traits of Open Leaders Authenticity Transparency© 2011 Altimeter Group
  123. 123. 21 Transparency as an imperative© 2011 Altimeter Group
  124. 124. 22 How Best Buy became open and social© 2011 Altimeter Group
  125. 125. 23 Best Buy’s First Social Media Experts Steve Bendt & Gary Koelling© 2011 Altimeter Group
  126. 126. 24 The Executive Advocate Barry Judge CMO of Best Buy© 2011 Altimeter Group
  127. 127. 25 Barry’s first post© 2011 Altimeter Group
  128. 128. 26 The Premier Black Fiasco 6.8 million emails sent instead of 1,000 test© 2011 Altimeter Group
  129. 129. Developing Open Leaders© 2011 Altimeter Group 2010
  130. 130. “You can imagine the Chatterati creating as much value as an SVP in the organization by sharing their institutional knowledge and expertise - and we should look at compensation structures with that in mind.” - Marc Benioff, CEO of Salesforce.com© 2011 Altimeter Group 2010
  131. 131. 29 Agenda  Strategy • Learn • Dialog • Support • Innovate  Lead  Prepare© 2011 Altimeter Group
  132. 132. 30 #1 Create a Culture of Sharing© 2011 Altimeter Group
  133. 133. 31 #2 Discipline is Needed to Succeed Take reasonable action to fix issue and let customer know action taken Positive Negative Yes Yes No Does customer Do you want Assess the Evaluate the need/deserve more to respond? message purpose info? No Yes Unhappy Yes Are the facts No Gently correct the Response Customer? correct? facts No Yes Can you No Dedicated Yes Are the facts No add value? Complainer? correct? No Yes Is the Explain what is Respond in Thank the Comedian problem Yes being done to kind & share person Want-to-Be? being fixed? correct the issue. No Adapted from US Air Force Comment Policy Yes Let post stand and monitor.© 2011 Altimeter Group
  134. 134. 32 Five ways companies organize around social media© 2011 Altimeter Group
  135. 135. 33 #3 Ask the Right Questions about Value “We tend to overvalue the things we can measure, and undervalue the things we cannot.” - John Hayes, CMO of American Express© 2011 Altimeter Group
  136. 136. The new lifetime value calculation • Percent that refer + Value of purchases • Size of their networks -Cost of acquisition • Percent of referred + Value of new customers people who purchase from referrals • Value of purchases + Value of insights • Percent that provide + Value of support support + Value of ideas ____________________ • Frequency and value of = Customer lifetime value the support Spreadsheets for all calculations available at open-leadership.com© 2011 Altimeter Group
  137. 137. 35 35% increase in LTV captured Year 1 Year 2 Year 3 Number of customers 10,000 5,000 3,500 Gross profit of purchases $400,000 $200,000 $140,000 Cost of acquisition $150,000 $25,000 $17,500 Net profit $250,000 $175,000 $122,500 Traditional LTV/customer $74.89 Value of referrals $30,000 $45,906 $45,287 Value of insights $10,000 $5,438 $4,080 Value of support $5,438 $8,156 $6,120 Value of ideas $2,000 $1,000 $1,000 Net profit and value $297,438 $235,500 $178,986 Revised LTV per customer $101.48© 2011 Altimeter Group
  138. 138. 36 Make decisions with metrics Find more fans with large networks Refers Large network Doesn’t refer Fans Refers Small network Doesn’t Encourage fans refer to make more referrals© 2011 Altimeter Group
  139. 139. 37 #4 Prepare for Failure No relationships are perfect Google’s mantra: “Fail fast, fail smart”© 2011 Altimeter Group
  140. 140. 38© 2011 Altimeter Group
  141. 141. 39 Structure your risk-taking and failure systems to create resilience 1. Conduct pre- and post-mortems. • E.g. Johnson & Johnson after Motrin Moms. 2. Identify the top 5-10 worst case scenarios. • Develop mitigation and contingency plans. • E.g. Ford’s “lost” Fiesta. 3. Build in responsiveness. • E.g. Best Buy’s Black reward card. 4. Prepare yourself for the personal cost of failure.© 2011 Altimeter Group
  142. 142. 40 Action plan to prepare for failure  Audit the last few failures you and your organization experienced. • 25% - what happened. • 25% - what you learned. • 50% - what you will do next.  Keep a failure file.  Identify risk-taking training needs.  Build failure into your planning and operating processes.  Create support networks for the inevitable failures.© 2011 Altimeter Group
  143. 143. It’s about RELATIONSHIPS© 2011 Altimeter Group
  144. 144. 42 Give Up Control AND STILL BE IN COMMAND© 2011 Altimeter Group
  145. 145. © 2011 Altimeter Group
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