Topic 4 Web 2.0 Implementation and Performance Measurement

Web 2.0 Implementation Main issues and challenges in the successful implementation of Web 2.0 actions and initiatives To ensure that projects are delivered ‘on time, within budget’ and that core business objectives are achieved Five main issues: General advice ICT project performance, planning and management Agreeing Web 2.0 priorities and budgets Implementation of key actions and initiatives using a BSC approach Performance measurement

Main issues and challenges in the successful implementation of Web 2.0 actions and initiatives

To ensure that projects are delivered ‘on time, within budget’ and that core business objectives are achieved

Five main issues:

General advice

ICT project performance, planning and management

Agreeing Web 2.0 priorities and budgets

Implementation of key actions and initiatives using a BSC approach

Performance measurement

Learning Outcomes On completion of Topic 4, you will understand: The importance of planning to successful Web 2.0 implementation The key steps involved The way in which a Balanced Scorecard approach can help in the successful implementation of Web 2.0 initiatives The importance of setting priorities and allocating budgets How to measure performance

On completion of Topic 4, you will understand:

The importance of planning to successful Web 2.0 implementation

The key steps involved

The way in which a Balanced Scorecard approach can help in the successful implementation of Web 2.0 initiatives

The importance of setting priorities and allocating budgets

How to measure performance

General Advice on Implementation Your Web 2.0 Balanced Scorecard will have identified the 2.0 actions and initiatives your organisation should implement (ensuring alignment and ‘strategic fit’ with your overall business goals and objectives) Agree priority areas and timescales taking into account ease of implementation and expected business impact (ROI). Focus on ‘quick wins’ and low resource intensive actions, at least initially. ‘Quick wins’ help to build organisational momentum for change Develop a 12-month Action Plan and individual Project Plans for each Web 2.0 initiative (follow professional project management procedures)

Your Web 2.0 Balanced Scorecard will have identified the 2.0 actions and initiatives your organisation should implement (ensuring alignment and ‘strategic fit’ with your overall business goals and objectives)

Agree priority areas and timescales taking into account ease of implementation and expected business impact (ROI). Focus on ‘quick wins’ and low resource intensive actions, at least initially. ‘Quick wins’ help to build organisational momentum for change

Develop a 12-month Action Plan and individual Project Plans for each Web 2.0 initiative (follow professional project management procedures)

General Advice on Implementation For each initiative, be very clear on the core objective to be achieved, targets, KPIs and the key actions required for getting there Implement the initiative Ensure that you take account of organisational, people, resource etc issues, including post-project sustainability and extension Assess performance on an on-going basis

For each initiative, be very clear on the core objective to be achieved, targets, KPIs and the key actions required for getting there

Implement the initiative

Ensure that you take account of organisational, people, resource etc issues, including post-project sustainability and extension

Assess performance on an on-going basis

ICT Project Performance, Planning and Management Poor track record of ICT projects. A very large number of projects are delivered late, over budget or not at all Many fail to produce the expected business benefits or return on investment 80-90 per cent of projects do not meet requirements 80 per cent of systems are delivered late or over budget 40 per cent of projects fail or are abandoned Under 40 per cent address key issues such as staff training and skills development Less than 25 per cent properly integrate business and technology objectives Only 10–20 per cent meet all success criteria

Poor track record of ICT projects. A very large number of projects are delivered late, over budget or not at all

Many fail to produce the expected business benefits or return on investment

80-90 per cent of projects do not meet requirements

80 per cent of systems are delivered late or over budget

40 per cent of projects fail or are abandoned

Under 40 per cent address key issues such as staff training and skills development

Less than 25 per cent properly integrate business and technology objectives

Only 10–20 per cent meet all success criteria

Reasons for ICT Project Failure Poor requirements specification Failure to anticipate and manage project risks (including Requirement, Systems, Technology, Skills and People Risks) Inappropriate development methodology Poor IS/IT/database design and construction Poor Project Management Seeking quick ‘Out of the Box’ solutions Failure to link ICT to the overall business goals and objectives of the company

Poor requirements specification

Failure to anticipate and manage project risks (including Requirement, Systems, Technology, Skills and People Risks)

Inappropriate development methodology

Poor IS/IT/database design and construction

Poor Project Management

Seeking quick ‘Out of the Box’ solutions

Failure to link ICT to the overall business goals and objectives of the company

Costs of ICT Project Failure The costs of ICT project failure can be very high. It is not just the wasted time and development costs involved but also the wider negative impact on staff morale, relationships, frustration, impact on customers and the potential loss of competitiveness

The costs of ICT project failure can be very high. It is not just the wasted time and development costs involved but also the wider negative impact on staff morale, relationships, frustration, impact on customers and the potential loss of competitiveness

Web 2.0 Projects Lower project risks due to reduced technology barriers and lower development costs But many other project risks still exist e.g. organisational, people etc Good ‘Project Planning Pays’ Sound planning and project management of Web 2.0 implementations can significantly reduce the likelihood of things going wrong; ensuring that the project is delivered ‘on time, within budget’; and that agreed business objectives are achieved

Lower project risks due to reduced technology barriers and lower development costs

But many other project risks still exist e.g. organisational, people etc

Good ‘Project Planning Pays’

Sound planning and project management of Web 2.0 implementations can significantly reduce the likelihood of things going wrong; ensuring that the project is delivered ‘on time, within budget’; and that agreed business objectives are achieved

Project Life Cycle The ‘Project Life Cycle’ (PLC) concept is important here. All ICT projects (indeed all projects) go through a ‘life cycle’ from agreeing objectives, deciding what needs to be done, planning a solution, implementing the solution, performance assessment and project closure. Web 2.0 projects are no different

The ‘Project Life Cycle’ (PLC) concept is important here.

All ICT projects (indeed all projects) go through a ‘life cycle’ from agreeing objectives, deciding what needs to be done, planning a solution, implementing the solution, performance assessment and project closure. Web 2.0 projects are no different

Project Life Cycle

Agreeing Web 2.0 Priorities and Budgets At this stage in the process, you will probably have identified a number of Web 2.0 initiatives you would like to implement. However, given cost and organisational resource constraints these may represent more of a ‘wish list’ All organisations, especially SMEs, have limited resources to invest in Web 2.0. It is critical, therefore, that decisions are made concerning which projects to invest in and what budget to allocate A suggested framework using the BSC approach........

At this stage in the process, you will probably have identified a number of Web 2.0 initiatives you would like to implement. However, given cost and organisational resource constraints these may represent more of a ‘wish list’

All organisations, especially SMEs, have limited resources to invest in Web 2.0. It is critical, therefore, that decisions are made concerning which projects to invest in and what budget to allocate

A suggested framework using the BSC approach........

Agreeing Web 2.0 Priorities and Budgets

Agreeing Web 2.0 Priorities and Budgets Step 1: Agree the overall project budget for Web 2.0 - time, money and effort an agreed per cent of turnover or based on the strategic importance of Web 2.0 Step 2: Allocate budget between competing projects and initiatives. Use the BSC to identify the strategic importance of different Web 2.0 initiatives

Step 1:

Agree the overall project budget for Web 2.0 - time, money and effort

an agreed per cent of turnover or

based on the strategic importance of Web 2.0

Step 2:

Allocate budget between competing projects and initiatives. Use the BSC to identify the strategic importance of different Web 2.0 initiatives

Implementing Web 2.0 Actions and Initiatives The BSC establishes clear ‘cause and effect’ linkages between objectives, targets, performance measures, key actions and initiatives This provides a very strong foundation for successful 2.0 implementations.........

The BSC establishes clear ‘cause and effect’ linkages between objectives, targets, performance measures, key actions and initiatives

This provides a very strong foundation for successful 2.0 implementations.........

‘ Lag’ and ‘Lead’ Measures ‘ Lag’’ indicators measure how well an organisation is currently performing i.e. the performance impact of past strategies and actions. Your ultimate goals e.g. Increased sales ‘ Lead’ measures represent the main drivers of future performance e.g. customer satisfaction and loyalty; number of site visits

‘ Lag’’ indicators measure how well an organisation is currently performing i.e. the performance impact of past strategies and actions. Your ultimate goals e.g. Increased sales

‘ Lead’ measures represent the main drivers of future performance e.g. customer satisfaction and loyalty; number of site visits

Implementation Template Strategic Objectives Lag Measures Lead Measures Key Actions

Monitoring Performance

Is It Worth It? Aberdeen Research Group – study of the social media practices of 250 organisations ‘ Best in class’ (50) ‘ Industry average (125) ‘ Laggards’ (75) ‘ Best in class’ outperformed others in many key areas Customer satisfaction Actionable insights delivered Reduced time to market Customer insight Source: Weber, 2009

Aberdeen Research Group – study of the social media practices of 250 organisations

‘ Best in class’ (50)

‘ Industry average (125)

‘ Laggards’ (75)

‘ Best in class’ outperformed others in many key areas

Customer satisfaction

Actionable insights delivered

Reduced time to market

Customer insight

Source: Weber, 2009

New performance measures are required in a Web 2.0 environment

New performance measures

are required in a Web 2.0 environment

Web 1.0 KPIs Site visits Unique visits Geographical spread of visits Length of time spent on the site Navigation through the site Most/least popular pages Number and quality of site enquiries e-mail registrations e-commerce sales U ser feedback on the site Links

Site visits

Unique visits

Geographical spread of visits

Length of time spent on the site

Navigation through the site

Most/least popular pages

Number and quality of site enquiries

e-mail registrations

e-commerce sales

U ser feedback on the site

Links

Measurement Tools Web analytics e-mail campaign monitoring Linkpopularity etc

Web analytics

e-mail campaign monitoring

Linkpopularity

etc

Web 2.0 KPIs Network quality, relationship strength, ability to leverage Web 2.0 ‘winners’ will be those companies who fully utilise the interactive power of 2.0 technology for building strong ‘1-to-1’ customer and network relationships - especially with their ‘Most Valuable’ and ‘Most Growable’ customers Those who fully leverage Web 2.0 for ‘Identifying, Acquiring, Retaining and Growing ‘Quality’ Customers Requires a new ‘mindset’ and new approaches to business strategy and online marketing

Network quality, relationship strength, ability to leverage

Web 2.0 ‘winners’ will be those companies who fully utilise the interactive power of 2.0 technology for building strong ‘1-to-1’ customer and network relationships - especially with their ‘Most Valuable’ and ‘Most Growable’ customers

Those who fully leverage Web 2.0 for ‘Identifying, Acquiring, Retaining and Growing ‘Quality’ Customers

Requires a new ‘mindset’ and new approaches to business strategy and online marketing

Web 2.0 KPIs Involvement – network/community numbers/quality, youtube and flickr views, time spent, frequency, geography Interaction – actions they take – read, post, comment, reviews, recommendations Intimacy – affection or aversion to the brand ; community sentiments, opinions expressed etc Influence – advocacy, viral forwards, referrals and recommendations, social bookmarking S Social Media Monitoring Tools –Audit, Assess, Impact

Involvement – network/community numbers/quality, youtube and flickr views, time spent, frequency, geography

Interaction – actions they take – read, post, comment, reviews, recommendations

Intimacy – affection or aversion to the brand ; community sentiments, opinions expressed etc

Influence – advocacy, viral forwards, referrals and recommendations, social bookmarking S

Social Media Monitoring Tools –Audit, Assess, Impact

Social Media Monitoring Tools Monitor and evaluate what is being said, by who, where and what impact – delivers actionable insights Three stage process Aggregate what is being said Natural language analysis – understand the data Deliver actionable insights Companies – Cymfony, BuzzMetrics, Radian6, Biz360, Umbria, Visible Techologies, Coremetrics, Omniture, Web Trends

Monitor and evaluate what is being said, by who, where and what impact – delivers actionable insights

Three stage process

Aggregate what is being said

Natural language analysis – understand the data

Deliver actionable insights

Companies – Cymfony, BuzzMetrics, Radian6, Biz360, Umbria, Visible Techologies, Coremetrics, Omniture, Web Trends

BSC 2.0 Performance Measures LAG MEASURES Strategic objectives Financial objectives Marketing (marcom) objectives Customer objectives LEAD MEASURES - Engagement Involvement Interaction Intimacy Influence

LAG MEASURES

Strategic objectives

Financial objectives

Marketing (marcom) objectives

Customer objectives

LEAD MEASURES - Engagement

Involvement

Interaction

Intimacy

Influence

Implementation Template Strategic Objectives Lag Measures Lead Measures Key Actions Strategic objectives Financial objectives Marketing (marcom) objectives Customer objectives Involvement Interaction Intimacy Influence Internal 2.0 External 2.0

Thank You

Thank You