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Socially Intelligent Business


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Success in the "Pull Economy" means understanding that a number of significant business principles have changed. In a hyper connected world information flows much faster and more freely. Organisations …

Success in the "Pull Economy" means understanding that a number of significant business principles have changed. In a hyper connected world information flows much faster and more freely. Organisations as a result are subjected to a growing level of collective intelligence and value creation from outside the company's walls brought on by the increased collaboration of customer/consumers, consumers, employees and suppliers in what is now a much larger ecosystem of data, conversation, innovation and participation. There needs to be a knowledge framework to help companies manage this transformational change and maximise as much value from it in a way that benefits the business and the customer/consumer.

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  • 1. From socially intelligentbusiness to sociallyintelligent researchAndrew NeedhamCEO . Face
  • 2. 02Contact us on +44 (0) 20 7874 6599 or . www.facegroup.comFrom socially intelligentbusiness to sociallyintelligent researchSuccess in the “Pull Economy”means understanding that anumber of significant businessprinciples have changed. Ina hyper connected worldinformation flows much fasterand more freely. Organisationsas a result are subjected toa growing level of collectiveintelligence and value creationfrom outside the company’s wallsbrought on by the increasedcollaboration of customers,consumers, employees andsuppliers in what is now amuch larger ecosystem of data,conversation, innovation andparticipation. This has lead tosocial business models startingto augment traditional oneswhere central production isgiving way to peer production,community based networksare becoming more prevalentthan management hierarchies;nearly free real time global dataflows are replacing expensiveponderous ones. The generationof economic capital is beingaugmented by the generationof social capital (defined asthe economic value createdthrough the collaborationof customers/ consumers,employees and suppliers in thenetworked economy) poweredby social power structuressuch as open source, crowd-sourcing, customer/consumercommunities, mass self serviceand social CRM that are provingto be more effective and efficient.There needs to be a knowledgeframework to help companiesmanage this transformationalchange and maximise asmuch value from it in a waythat benefits the businessand the customer/consumer.Social IntelligenceWe call this social intelligence.An adaptive, continuous,collaborative and opencustomer/consumer drivenknowledge framework that sitsat the centre of a company’sorganisation like the hub of abicycle wheel where all marketingand business disciplines feedinto and out from the customer/consumer. In this model theempowered customer/consumeris at the heart of everything acompany does. (See Figure 1).Alongside the role of thecustomer/consumer there aretwo other key ingredients tobecoming socially intelligent.The first is the applicationof smart technology to helpmanage the real time flowand exchange of information,creativity and value from withinand outside the company’s walls.The second is a growing army ofpeople who have proficient skillsto extract value and meaningfrom big data. Socially intelligentresearch has a big role to playNetworkedConsumerInnovationSalesMarketingSmart People Technology PlatformsCustomerExperienceCollaborationService&SupportFigure 1Social IntelligenceFramework
  • 3. 03Contact us on +44 (0) 20 7874 6599 or . www.facegroup.comin helping companies on thisjourney to becoming moresocially intelligent by helpingthem to have a real time, in depthholistic view of their customers/consumers. Socially intelligentresearch combines best in classsocial media research, on-linequalitative communities,mobile ethnography andco-creation practices in anintegrated way. It is poweredby proprietary platforms thathave been built by researchersfor researchers to deliverrobust insight supported byrigorous qualitative processes.This paper will set out what itmeans for business to becomemore socially intelligent and theimportant role socially intelligentresearch can play in this process.New emerging client needsJames Murdoch, heir tothe global media empire thatowns Sky, Star TV, WSJ andthe The Times Newspaperssaid way back in 2008 in hisMarketing Society Lecture that“Ubiquitous Connectivity meansfundamentally that the individualbecomes the agent of everything.It is not a question of scale itis a different way of existing”.Since then the transformationalpower shift from organisationsto customers and consumershas continued to accelerate,reshaping operating businessmodels along the way includingnewspapers and leavinganachronistic ones in its wakeas the recent demise of Comet,Jessops and HMV in the UKhave shown. With this powershift to the networked consumerwe are seeing new client needsemerging. The most pressing ishelping clients to make sense ofwhat is clearly a fast changing,more complex, data obese world.An IBM Global CEO studylast year covering 1,130 CEOsacross 45 countries and 32industries highlighted thatorganisations not only feltbombarded by change butmany are struggling to dealwith it. 8 out of 10 CEOssaw significant change aheadand yet the gap betweenthe expected level of changeand the ability to manageit has almost tripled sincethe previous study in 2006.What is becoming clearis that delivering againstconsumer needs and wantsin this rapidly changing landscapequicker than your competitorsis what will drive competitiveadvantage. Companies and theirbrands must move much fasterand become more agilewithout compromising onquality whether that is generatingcustomer/consumer insightor getting the right productsto market more quickly. Theability to dynamically adapt andswiftly respond to the needsof the customer/consumer ina continuous way is becomingincreasingly important. Andwith this so is the ability togrow an information advantage,to uncover, process, shareand act upon customer/consumer information fasterthan your competitors.Socially IntelligentCompanies MustEmbrace The CustomerCompanies have often spokenabout how the customer/consumer is at the heart of theirbusiness and more often thannot have failed to deliver againstthis mantra. Success in the pulleconomy means doing justthat at a time when companiesfeel that it is harder to achieve.Simon Clift the ex Global CMOof Unilever said in an article in theFinancial Times “We are behindthe consumer and that is anuncomfortable place for us to be.That requires a cultural changefor companies like Unilever.We have to listen to genuinecustomer/consumer concerns.Companies aren’t set up forthat.” If companies are seriousabout generating social capitalthen customers/ consumersand the role they’re allowed toplay in their relationships withorganisations has to be centralto everything a company does.There are many examples wherethis is already happening.From Open Innovationto Crowd-sourcingOpen innovation and crowdsourcing business models tapinto the collective wisdom andcreativity of consumers and thishas been incredibly disruptiveto more traditional approaches.Instead of “not invented here,”the mind-set is shifting to“proudly found elsewhere.”The most notable case isProcter & Gamble’s ambitionto ensure that over 50% of its
  • 4. 04Contact us on +44 (0) 20 7874 6599 or . www.facegroup.cominnovation is driven from outsidethe organisation with the setup of its Connect & Developplatform that has secured morethan 1,000 partner agreementson innovation. A key part ofthis is the creation of where theyhelp their “customers to developideas and solve importantproblems by broadcasting themvia the internet to the world’smost creative problem solvers”.Kickstarter is a U.S website(see Figure 2) that allowsprojects to turn to peopleoutside the organisation forfunding taking small or largedonations from thousands ofbackers in return for credit orearly access to products andservices. Coca-Cola usedcrowdsourcing to develop newdesigns for bottle crates inGermany and marketing ideasfor Coke Zero in Singapore.GE has crowdsourced greenbusiness ideas under its“eco-magination” challenge.By opening innovation processesto outside voices, organizationsnot only gain a broader rangeof perspectives to enrich theinnovation gene pool, they alsogain valuable scale—moreresources at a fraction of theprice. And it’s not just the frontend that stands to gain: greaterconnectivity with suppliersand buyers can be a win-winsituation when it comes tomanaging inventory, budgetingand forecasting, allowingorganisations to access better—and more— real-time data,and refining productionand supply-chain processes onthe spot. In a McKinsey Quarterlyinterview, Bob McDonald, P&G’sCEO, said his organisation looksto increase integration withretail partners because “gettingthe data becomes part of thecurrency of the relationship.”In some cases, P&G is evenusing its scale “to bring state-of-the-art technology to retailersthat otherwise can’t afford it.”From Social CRM to SocialWOM CommunicationsSocial CRM, where thecustomer/consumer helps todeal with problems, queries andcomplaints of other customers/consumers is also being appliedto a number of businesses.Telefonica who launched GiffGaff– “the mobile network run byyou” – relies on its customers/consumers to service othercustomers/ consumers aspart of its community drivenbusiness model. In the areaof communications examplesof content generated byconsumers and how it is sharedis also prevalent. One of themost famous being the Doritosadvertisements generated bytheir fans and aired at the U.SSuper Bowl. If consumers don’tgenerate the content, thenthey play a crucial role in how itspreads. A recent campaign wedid with the UK’s Irn Bru showedjust how powerful this is – onecustomer/consumer RachieFigure 2Crowd Funding
  • 5. 05Contact us on +44 (0) 20 7874 6599 or . www.facegroup.comcaused Irn Bru’s latest TVadvertisement to generate 1.5million views (see Figure 3) beforeit even went live. In the U.S oneof the most buzz-worthy ads ofthis year’s Super Bowl wasn’teven a commercial – it was amere tweet from Oreo duringthe blackout (see Figure 4). Thepower went out in the SuperDrome during the showdownbetween the San Francisco49ers and the Baltimore Ravens.Oreo seized on the opportunity,and tweeted this during thethirty-four minute hiatus. Viewersloved Oreo’s message, whichwas re-tweeted 10,000 times inone hour, according to Ad Age.BuzzFeed’s Ashley McCollumsaid the tweet was “super smart”while CNET’s Daniel Terdimandeclared: “Oreo came up with anidea so brilliant and bold that itout and out won the night.”The reaction left some wonderingwhether the quick tweet had aneven greater payoff than Oreo’sactual Super Bowl Ad whichcost millions more to create.From On-lineCommunities to fasterdecision making processesContinuous on-line communitieswhere companies can connecttheir internal employeeswith customers/ consumers,suppliers and partners isanother example of where theconsumer rules. Burberry theiconic global British luxury brandoffers a good illustration of this.Angela Ahrendts, the CEO hasa grand vision of her companyas a social enterprise whereall employees, customers/consumers and suppliersshare the same experience ofthe Burberry brand whetherthrough physical stores or digitalplatforms and their communityBurberry World. Throughcommunities companies arespeeding up cycle times byshortening learning curves,testing new products or ideaswith consumers using mockups,computer-generated virtualproducts and simulations.Together with the use of socialmedia this is also helping tofast track the decision makingprocess. In the case of Oreotheir ad agency 360i toldBuzzfeed that they had gatheredOreo executives together inadvance, just in case somethingin the Super Bowl sparked anadvertising idea. With all thekey players in one room, theywere able to capitalize on socialmedia’s nimbleness and actedquickly. “We had a missioncontrol set up at our officewith the brand and 360i, andwhen the blackout happened,the team looked at it as anopportunity,” agency presidentSarah Hoffstetter told Buzzfeed.“Because the brand teamwas there, it was easy toget approvals and get itup in minutes.”RachieFigure 3Irn Bru campaign
  • 6. 06Contact us on +44 (0) 20 7874 6599 or . www.facegroup.comCustomers/Consumers createvalue beyond just transactionsThe significant shift underpinningall these examples (and thereare many more of them) is thatcustomers/consumers seek outinteractions with brands that gobeyond the merely transactional.Empowered through ubiquitousaccess to information andtherefore radical transparencythrough an abundance ofchoices on the web as well asthe ability to contribute andtap into social networks in realtime and on the go they expectcompanies and brands inreturn to offer engagement andcollaboration models that matchthe more distributed and multilayered mechanisms of valuecreation. This is driving large-scale behaviour change wherefocus on hyper-personalisation,relevance and customisation arecritical. In a recent interview withthe Social and Digital Director ofa major global retailer he spokeof the “role of a more traditionalretailer in a socially structuredeconomy” where his company“has a very empoweredcustomer base with hugeexpectations of relevance andpersonalisation” and “Amazonas a competitor who have givenall the power to the customer sothat they can choose what theywant, when they want.This puts the real wind up aretailer”. As he continued topoint out “It’s becoming lessand less important about whatwe tell customers/ consumersand much more importantabout what customers/consumers say to us and whatthey are saying to each other;it is becoming everything andif you don’t put that at thecentre of your organisationthen you will be in trouble”.Socially IntelligentCompanies Must ApplyTechnologyWhat is exciting is that withthe application of technologyorganisations have the ability tobe socially intelligent, enablingnew strategies and techniquesthat will work most effectively ina profoundly connected society.As value creation shifts fromworkers to customers andconsumers, companies realisethey need technology to helpthem manage and derivevalue from a much largerecosystem of data, conversation,innovation and participation.Companies need to be ableto connect and tap into theglobal network in real time andcontinuously both for obtainingvalue and for deriving it.Trends like Enterprise 2.0 arestarting to put tools that makethis possible into millions ofemployees and customers/consumers hands.Figure 4Oreo 2013 SuperBowl tweet
  • 7. 07Contact us on +44 (0) 20 7874 6599 or . www.facegroup.comNow Every CompanyIs a Software CompanyDavid Kirkpatrick from goes further. He said in arecent article that: “regardlessof industry your company isnow a software company, andpretending that it’s not spellsserious peril. With hardwareand software growing morecapable at exponential rates,data of all sorts are increasinglygetting into the hands ofordinary people—competitors,employees and, especially,customers/ consumers.Extraordinarily sophisticatedtools of measurement, analysisand communication allow theseempowered hordes to evaluate,process and distribute the data,along with their opinions aboutit. Ordinary people increasinglyhave tools that match andin some cases exceed thesophistication of those usedinside the companies that servethem”. As Kirkpatrick continues“That leads to an increasinglyurgent and overarchingmandate: Your company must,using software and technology,become as responsive and agileas your customers/ consumers.And then remain as aggressiveas they are by measuring,monitoring, evaluating andresponding to data about yourproducts and services and theirimpact on society”. He citesthe example of Ford MotorCompany by quoting VenkateshPrasad, Senior Technical Leaderat Ford “Bill Ford said recentlythat when he was growing uphe used to worry about makingmore cars. Now he worries—what if we only made morecars? Just making more cars isnot our future.” Instead, Prasadre-envisions Ford as a makerof “sophisticated computers-on-wheels.” Anyone who’stest-driven a Ford lately canexperience this: Wi-Fi receiversturn your car into a mobilehot spot; built-in softwarehelps maximize fuel efficiency;ultrasonic sensors enableautomatic parallel parking.The key piece now, in Prasad’sview, is connecting their vehiclestogether. “We’re rapidly marchingtoward 2 billion cars, trucksand buses on this planet,”he says. “There’s no reasonwhy they should not all befully networked.”Making P&G the mosttechnologically enabledbusiness in the worldAnother good example isthe mission Robert McDonald,P&G’s CEO is on to makeProcter & Gamble the mosttechnologically enabled businessin the world. He is overseeingthe large-scale application ofdigital technology and advancedanalytics across every aspect ofP&G’s operations and activitiesfrom the way the consumergoods giant creates moleculesin its R&D labs to how itmaintains relationships withretailers, manufactures products,builds brands, and interacts withcustomers/ consumers. Theprize: better innovation, higherproductivity, lower costs, and thepromise of faster growth. As anexample he cites “I personallysee the comments about theP&G brand. This allows for real-time reaction to what’s going onin the marketplace, because weknow that if something happensin a blog and you don’t reactimmediately—or, worse, youdon’t know about it—it couldspin out of control by the timeyou get involved. The technologyalso lets us improve thingsthat are working. For example,we’re rolling out a productcalled Downy Unstopables,a fragrance addition you canadd to your wash, and thereal-time comments fromconsumers about the product’scharacteristics are helping usfigure out how best to join inthe discussion through ourmarketing efforts. And what I’dlove to be able to do is see thecosts of product at the sametime. It’s challenging becauseaccounting systems aren’tdesigned today like that foroperations—they tend to lookbackward—but we’re workingon integrating our operationalsystem with the financial systemto move in that direction.”Innovative companies in otherindustries are experimentingwith ways to combine products,services, and data to createentirely new businesses—oftenwith software playing a criticalrole in knitting together orenabling these new models.Industries from manufacturingto consumer goods havestitched information assetsinto their traditional product
  • 8. 08Contact us on +44 (0) 20 7874 6599 or . www.facegroup.comofferings and have come awayredefining the category andraising the bar for competitors.The example of what Nike didwith one of its shoe-lines iswell known. It created Nike+, asensor compatible with AppleiOS devices (for instance, theiPod or iPhone), to be used withits running shoes. The sensorallows the wearer to trackmileage and running habits andupload data onto a Web site tomanage workouts, connect withfellow runners, and share routes.The line not only launched aprofitable new revenue streambut also helped boost Nike’smarket share and createda community of highlyengaged users.Social computingrevolution is going mobileThe mobile Web is currentlyexperiencing unprecedentedgrowth in use. The iPhone andAndroid platform in particularare fundamentally changingthe game when it comes toour new usage of mobile Webapplications. Smartphoneshipments are now expected tobe greater than notebook andPC sales combined by 2012.When coupled with the seachanges taking place in socialthere is a social computingrevolution that is going mobile.This new mobile reality is basedon smart phones, with all theirunique capabilities such aslocation awareness, video/audio capabilities, and arrays ofother sensors. In other words,most businesses need a planfor a near-term future wheremost interaction with workers,partners, and customers/consumers is through task-specific and social applicationson mobile devices with alltheir attendant strengthsand weaknesses.Socially IntelligentCompanies Need SociallyIntelligent ResearchBy applying socially intelligentresearch, research companiescan play a big role in helpingcompanies to be more sociallyintelligent. Understanding andgetting close to customers/consumers in a real time andcontinuous way both passivelyin terms of mining social datafor insight and mobile realitymining and actively in termsof helping companies tocollaborate and co-create withtheir customers/ consumers andadapt to their needs quickly isat the heart of a more sociallyintelligent way of doing research.Seamless Integration of SocialData With Qualitative RigourTo become socially intelligentresearch companies will need tobe highly skilled at integrating arange of methodologies and datasets in a coherent and seamlessway to deliver a holistic viewof the customer/consumer.It will not be enough to rely onjust one or two sources of data.The ability to augment the depthof qualitative with the breadthWithNot AtBeingthereHolisticReal timeSmart People Technology PlatformsCo-CreativePredictiveMocro-MacroFigure 5Socially IntelligentResearch Principles
  • 9. 09Contact us on +44 (0) 20 7874 6599 or . www.facegroup.comand scale of social data as wellas be able to use social data tovalidate and scale up learninggathered through qualitativeis vital. Integrating socialand mobile data directly intocommunities, being technologydriven and full of smart peoplethat can apply qualitative rigourto big data is what will makethe difference.The Power of Real Time InsightMining the collective intelligenceof the social web is nowachievable with a range of socialanalytics tools giving businessesthe means to deeply access,understand and react intelligentlyto all the important currents ofcustomer and consumer activitythat affect them across thesocial universe. Social media hascreated a new information map.Traditionally competitive analystsdifferentiate between primarysources of information (experts,competitors, employees andsuppliers) on the one handand secondary sources (suchas published data, articlesand market research) on theother. Social Media Intelligenceoperates on a different plane,identifying people and theirconversations in social spacesproviding qualitative insight on aquantitative scale. And as JakeSteadman, Head of Social MediaResearch from Telefonica O2said in a recent interview “it is avery important real time researchdata set for us... it is the only100% unbiased research dataset”. For both Telefonica andthe major global retailer this isbringing many benefits. The firstis that it is allowing them to takeinstant action on what they maybe doing wrong and correct itquickly. For example TelefonicaO2 ran a text based campaignaround a Christmas offer witha music partner and it becameapparent within days from socialdata that the wording they usedwas confusing to customersand consumers alike so theychanged it and the uptake ofthe campaign doubled. On amore strategic level becausethey are now building up along-term data set they can seetrends forming and understandbetter the role Telefonica O2 canplay in customers/ consumers’conversations. As Steadmansays “it is helping us to deliverbetter customer experiencesby reacting faster to customerneeds. We are becoming a lotsmarter about learning what ourcustomers want and matchingthat with our offering”. Thesecomments were echoed bythe social and digital directorof the major global retailer whosaid the “immediacy of it (socialmedia insight) is so important;we are able to get very realand live feed back that is anunedited, unfiltered reality ofwhat people think about whatwe are doing”. He feels thatthe value as a social channel isthat his company will be able tocreate new customer/consumerexperiences off the back of itFigure 6Pulsar TRAC, Face’s Social Media Insight and Planning Platform searches the social web not justby keywords (tracking) but also by reach (visibility), audiences (mapping) and content (diffusion)
  • 10. Contact us on +44 (0) 20 7874 6599 or . 10helping them to understandtheir customers/ consumersthat much better and that muchdeeper. Another key benefit isthe ability to deliver a level ofcustomisation and relevance tocustomers/ consumers that isimpossible to achieve in sucha fast time frame using moretraditional methods of research.He cited as an example what hiscompany was able to achievein the lead up to Christmas. Heexplained “Those final sevendays make for an anxious weekfor customers as there are many“aha” moments when you realisethat you forgot to buy some ofthose critical individual items.From the insight garnered fromsocial data we were able to feedinto our advertising in real timewith what customers had beensaying they had forgotten. Asa result we were able to checkthat we were stocking our storeswith the right items”. He alsorecognises the power of socialdata in helping them to achievethe powerful combination ofbeing able to augment whatcustomer/consumers are feelingwith what customers/consumersare doing or actually buying.It can also help them bring tolife experience in the physicalform at a local level.Real time social data also meansthat where in the past 80% oftime was spent on gatheringdata and 20% analysing it thereverse is starting to happennow. Types of analysis arebecoming more sophisticated.Technology platforms such asour own social media insight andplanning tool, Pulsar TRAC (seeFigure 6), are becoming morefocused on the needs of theinsight and planning communitywhere layers of insight can begenerated over and above thebasic tiers of analytics. So forexample it is possible to movebeyond key word tracking andtopic analysis to mapping brandaudiences, tracking specificcontent and reach. TelefonicaO2 who used Pulsar TRAC havere-structured around a centralintelligence hub of customer/consumer data so that everyteam whether it is insight,brand, innovation, marketing orCRM are all plugged in to it, likespokes in a bicycle wheel.The Power of CommunitiesHowever there is more todelivering socially intelligentresearch than just mining socialdata for insight with the help oftechnology. Having the ability toactively engage and co-createwith customers/ consumersin an open and adaptive waymeans that customer/consumercommunities have an importantpart to play in a socially intelligenttool kit. It is the new connectionsthey enable between internalemployees on the one endand customers/ consumers,suppliers, and partners on theother that is allowing companiesto co-create new relationshipsand offerings and reinventtheir operating model.Figure 71000faces Community Platform
  • 11. Contact us on +44 (0) 20 7874 6599 or . 11There are abundant examplesof the value co-creating withcustomers/ consumers incontinuous communities aswell as having the ability to dothis face to face is generatingfor organisations. From a purelyresearch perspective usingon-line research communitieshelps not only to deliver contextto consumer behaviour andattitudes but also helps tounderstand “the why” behindthose behaviours. A recentexample is a major foodcategory we are working withwho wanted to foster genuineconnections to reach realconsumer stories leading them tothe best consumer insights andstarter product ideas across theglobe, cost and time effectively.We therefore designed acommunity using our 1000facescommunity platform (see Figure7) that united stakeholders withconsumers across the world toco-create global solutions to aspecific challenge. The processinvolved generating insightsand starter product ideasbetween 100 creative forwardthinking consumers and 40client participants from 4 regionscovering 14 countries with 6different business functionsto drive new occasions andopportunities in the category.The scheme produced 15 newinsights across three differentidea platforms, 80 seed ideasfor innovation and 10 starterproduct ideas. And this learningwas brought together into aglobally unified perspective onone particularly exciting platformsupported with local nuance.The Global CMI Director for thepilot said “This is an ideal wayof continuous connectivity withour consumers across the globenot just on a project basis;the co-creation was awesome,dynamic, collaborative,creative and very efficient”.The key benefits toresearch communities are:›› Building longer relationshipswith consumers over timerather than just a snap shotin time over two hours›› Using life logging through mobilecan capture in the momentbehaviour and observe whatconsumers actually do ratherthan just what they say they do›› Seeing consumers in their naturalenvironments breaks down barriersand helps us as researchers get tothe truth faster by seeing their realroutines and rituals›› Using on-line focus groups andforums allows the research team toprobe deeper into behaviour andattitudes with prompted questions›› Allows for real time and reflectiveresponses as well as for consumersto open up about topics they feeluncomfortable discussing F2F›› Allows for builds and angles todiscussions to come not justfrom researchers but from otherconsumers and that often meansconsumers going to places youwould never have got to on yourown or you would have predictedwith a discussion guide›› Allows research with techniquesFigure 8Face InvertedModel ofCo-creationSocial data thatgives us the biggerpicture of topics,audiences andinfluencersQualitative thatgives you richerinsights intoindividual livesand networksCo-create withconsumers forsolutions that arerooted in truth andstrategically acuteReal-TimeValidation &Content Trackingthat is dynamicand efficientListening to allthe crowdEngaging with manyyour crowdDevelopingwith1%ersValidation
  • 12. Contact us on +44 (0) 20 7874 6599 or . 12such as netnography tomove from a staged theoreticalworld to the real world whereconsumers live out their lives›› Allows you with techniqueslike crowd sourcing to combineindividual thinking with groupthinking which is critical tosuccessful innovation›› Allows for consumers to builda rich narrative and compellingstories of what they do andhow they act over timeThe Power of Co-creationCo-creating with leadingedge consumers as partof a well thought throughprocess is another essentialpart of a socially intelligenttool kit especially when itcomes to innovation andNPD. For us co-creationbest practice is defined bythe following key principles:Reversing the funnel:Rather than adopt aconventional approachwhere ideas are generatedand proposed by anintimate group of expertsthen tested on increasinglylarge samples of researchparticipants throughqualitative then quantitativepractices we begin theinnovation process bycasting the net wide,thinking and operating on abroad scale, before narrowingdown to work in tightergroups on ideas that havebeen generated, selectedand validated by the crowdand shaped and curatedby experts. (See figure 8)A bottom-upapproach is not enough:Bottom-up processes needto be complemented by solidstrategic direction and expertise.Successful innovations emergeat the intersection of three,sometimes very different,agendas: the consumer andhis needs, the brand and itsstrategy, the expert and hisvision (he or she providesmarket knowledge andexpertise, market trends).Allow group thinking aswell as individual thinking:Group thinking is generative andprovides elements of validation,but it is also skewed towardssocial conformity. On theother hand, individual thinkingprovides a more independentidea generation process butit does not generate as muchmaterial. The best ideas oftencome from building on eachother’s contribution rather thancoming up with the final solutionin one go. A balanced innovationprocess needs to ensure bothdynamics are well represented.The Power ofMobiles as SensorsBeyond geo-located contenton the go, a key opportunity isemerging: mobile sensing, thepassive recording of a person’sonline and offline daily life in aFigure 9Mobiles as sensors
  • 13. Contact us on +44 (0) 20 7874 6599 or . 13quantitative way. Sensors in themobile handset can be usedto capture communication,proximity, location, and activitydata alongside the moreestablished prompted inputs, a360-degree approach becomingknown as Reality Mining. Thisresearch technique allows us toaugment qualitative research withlongitudinal quantified self data(low level capture of behaviour,interactions and states throughmobile) to uncover patterns andinsights that would be difficult tospot on an exclusively qualitativebasis. We have applied an opensource platform designed byMIT called Funf (see Figure 9) tohelp us take advantage of theincreasingly widespread use ofmobile phones for modelling ofconversation context, proximitysensing, and temporal-spatiallocation throughout largecommunities of individuals.The average person is alwayswithin reach of his/her mobilephone and looks at it on average150 times a day, every 6.5minutes. This makes the mobilephone the most accurate proxyfor a person’s behaviour. Wehave broken down our mobileresearch process into thefollowing areas:Active CaptureThrough SMS, MMS andother mobile life-logging toolsparticipants are periodicallyasked to log specific activities,such as eating (e.g. takingpictures of food), loggingany physical activity, loggingattendance to specific events,logging interactions with brandsetc. This data stream allowsus to uncover unconsciousbehaviours by establishingcorrelations with specificactivities and baseline patterns.Prompted ResponseParticipants are also periodicallyasked to answer questions,engage in text chats or respondto stimulus around specifictopics, such as mood. Bystimulating self-reflection andadding depth to the datacaptured in the previousstream, this second one helpsus investigate why certainbehaviours occur in real-time.Mobile sensingPassive capture of datafrom mobile sensors through acustom built Android application.Data ranges from locationto proximity to other people,contacts, call logs, stress levels,temperature, applications used,web surfing, google searching,map usage and many more.This stream provides uswith both a qualitative and aquantitative portrayal of actualbehaviours ranging from dailymovements to daily interactionswith online and face-to-facesocial networks.We recently used this approachas part of an integrated studyto help a major media companyin the U.S understand the roleand lived experience of popculture in people’s individual andshared lives today and into thefuture. It was important for themedia company and some of itsbrands to generate a very robustdata story that had credibilitywith advertisers as well as helptranslate a big messy topic intouseful outputs.Smart PeopleFrom a research perspectivehaving clever people whocan bring smart thinking andan understanding of how toapply technology to customer/consumer driven data, contentand creativity is a powerfulcombination. In a world ofincreasing data obesity thereis going to be a massive needfor more human analysis tohelp us understand the “why”in an integrated way. All of thiswill require more depth, morerichness, more rigour, moreclarity of insight, all the skillswe can bring to the table asqualitative researchers ratherthan less. This isn’t naturallygoing to fall into our laps. Onefrustration or concern is that theindustry is not moving quicklyenough to keep up with thespeed of change so that othercategories of business are beingafforded the opportunity tomuscle into our patch. To win inthis space we are going to haveto combine rigour with speed,– it’s not a question of either or –we need to do both well.Mix of qualitative skillsneeds to changeWhat is going to have to changeis the mix of skills qualitativeresearch companies are goingto need to bring together to
  • 14. Contact us on +44 (0) 20 7874 6599 or . 14help deliver quality insight andinnovation quickly. Havingresearchers who are alsotechnologists will be key; havingresearchers who understandqualitative and quantitativeresearch while also get thesocial web will be essential.We are already starting to seethis eclectic mix of skills at Face.It means research agencieswill need to look beyond theirnormal boundaries to findways of attracting people fromoutside the industry. It will benecessary for one researcher toaugment a number of differentskills to deliver qualitative insighteffectively, drive action fromthis insight and help companiesachieve a more holistic viewof their customer/consumer.ConclusionThe power of social intelligentresearch is that for the first timein history the industry can helpcompanies deliver on putting thecustomer/consumer at the heartof their organisation.Social Intelligence is aboutestablishing a real timecustomer/consumer centricity– an adaptive, continuous,collaborative and opencustomer/consumer drivenknowledge framework that sitsat the centre of a company’sorganisation like the hub of abicycle wheel (see Figure 1)where all marketing and businessdisciplines feed into and outfrom the customer/consumer.To achieve this frameworkcompanies are going to haveto take P&G’s lead. As BobMcDonald says “Our purposeat P&G is to touch and improvelives; everything we do is in thatcontext. With digital technology,it’s now possible to have a one-on-one relationship with everyconsumer in the world. The moreintimate the relationship, themore indispensable it becomes.We want to be the companythat creates those indispensablerelationships with our brands,and digital technology enablesthis”. Social intelligent researchhas a critical role in helpingclients deliver a holistic view ofthe customer/consumer throughthe seamless tie up of best inclass social media research,on-line qualitative communitiesintegrated with mobile andco-creation practices. Sociallyintelligent research means nolonger delivering work purelyon an ad hoc, project-by-project basis (as it has largelybeen done to date with a focusgroup based model) but on amore continuous, real time andstrategic basis. It is going tobe about connecting the dotsacross multiple data sets using avariety of methodologies; havingan appreciation of a technologydriven tool kit whether that’smobile, communities or socialmedia and combining that withsmart thinking. The future willbe bright for companies that areprepared to make this journeyfrom traditional qualitativeresearch agency to SociallyIntelligent Insight Consultancy.
  • 15. Contact us on +44 (0) 20 7874 6599 or . 15ReferencesCompeting in a digital world:Four lessons from the software industryHugo Sarrazin and Johnson SikesMcKinsey QuarterlyCo-Creation:The Real Social-Media RevolutionFrancis GouillartHarvard Business ReviewEsomar Online Research 2010:Designing RelevanceHow open and agile researchmethodologies can help complexorganisations respond to changeand stay relevantFrancesco D’Orazio – FaceEsther Garland – FaceTom Crawford – NokiaEsomar 3D Digital Dimensions 2012:Future Mobile Market ResearchMining Reality Through The PhoneFrancesco D’OrazioInside P&G’s Digital RevolutionMichael Chui and Tom FlemingMcKinsey QuarterlyNow Every Company IsA Software CompanyDavid KirkpatrickContributorIn Marketing, People Are Not NumbersSam Ford – PeppercommSix Social Business Trends To WatchDion Hinchcliffe – DachisOpenness or How Do YouDesign for the Loss of Control?Tim Leberecht – Frog DesignHow social intelligencecan guide decisionsMartin Harrysson, Estelle Metayerand Hugo SarrazinMcKinsey QuarterlyThe Quiet rEvolution In Marketing InsightsLenny Murphy, EditorGreenbookThe Six Stages of Social BusinessTransformationAltimeterBig Data Goes SocialAndrew Needham – Face