The document outlines a three-phase project to develop social business tools for the financial services industry. Phase 1 involved market research that found opportunities in data analytics, risk reduction, and adapting to changing customer demands. Phase 2 used workshops to develop prototypes for geo-locative, building, learning, testing, operations, and risk tools. Phase 3 created a business case and valuation tool, and recommended developing initial tools over one month and using a freemium pricing model.

1. image source: tweetping.com
How can the Financial Services
industry take advantage of
new social business practices?
2013 Crystal Campbell MACPfNE MBA

2. About
It's time for the financial services to actively look for change. Faced with an increasing array of challenges,
ranging from unpredictable markets to new entrants, to customer, regulatory and operations costs - many
financial entities are struggling to post even moderate growth.
In the Summer of 2013, I completed my MBA internship at Novabase, the Portuguese leader in IT. Exploring
the themes of social enterprise 2.0 and next generation banking models exclusively focused on how social
media can be harnessed using the strategic application of insight analytics.
The question we asked was: How can the Financial Services industry take advantage of new social business
practices and capabilities to transform themselves, create competitive advantage and drive real business value?
2013 Crystal Campbell MACPfNE MBA

3. Action
The investigation was structured in three phases over eight weeks. This document is an overview of all phases
of work, documenting my market research, and outlining a business case and road map for implementing social
business tools using a methodology that would maximise business value and minimise risk.
PHASE 1
MARKET RESEARCH
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PHASE 2
DESIGN THINKING METHODOLOGIES
CONFIRMING HYPOTHESES
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2013 Crystal Campbell MACPfNE MBA
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PHASE 3
BUSINESS CASE
SOCIAL BUSINESS VALUATION TOOL
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4. by 2020 financial services revenues are predicted to flat line at 5%
of GDP, and the only action that will counter balance this is if an
unexpected burst of product and service innovation takes hold.
Accenture 2013
PHASE 1
Research
Market research from hundreds of resources drew information from academic sources, industry whitepapers,
Quora, technology blogs, consulting executive blogs, industry specific Twitter streams, and consulting firms
published research, including Accenture, McKinsey, Gartner, Infosys, Oliver Wyman, Forrester, eMarketer,
Nielsen, and others.
This research was analysed and summarised using Porter’s 5 Forces and Baron’s 4-1 framework. In addition,
both specific and non-specific case studies for industry benchmarking painted a picture of the current trends
in social business.
PHASE 1
MARKET RESEARCH
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2013 Crystal Campbell MACPfNE MBA
PHASE 2
DESIGN THINKING METHODOLOGIES
CONFIRMING HYPOTHESES
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PHASE 3
BUSINESS CASE
SOCIAL BUSINESS VALUATION TOOL
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5. closing 2013, the FSI is expected to report earnings of
$198.5 billion, 19% of the S&P 500’s annual earnings.
USA Today 2013
PHASE 1: RESULTS
Market
This is a market where there is a lot to gain if the
cards are played right. The competition is getting
fiercer, and the ever-changing game rules are strict
and come with high penalties for failure. But the
rewards are lucrative.
Innovation in the financial services industry has long
been the driving force to build revenue and profit,
and the area which stands to benefit most from
innovation, is data. The business of information
within the financial services may soon be more
valuable than the rest of the industry. Specifically,
the processing, storage, manipulation and,
ultimately, the knowledge it yields.
PHASE 1
MARKET RESEARCH
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2013 Crystal Campbell MACPfNE MBA
PHASE 2
DESIGN THINKING METHODOLOGIES
CONFIRMING HYPOTHESES
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PHASE 3
BUSINESS CASE
SOCIAL BUSINESS VALUATION TOOL
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6. PHASE 1: RESULTS
Critical Focus
• Restoring customer trust and engagement
• Defending themselves against new entrants
Accenture
• Offering segment-specific value propositions and embracing client centricity
• Striving for lean front-to-back business processes
Boston Consulting Group
• The prevention of fraud and impersonation
• Changing customer behaviour
Infosys
• The prevention of fraud
• The changing customer
McKinsey
2013 Crystal Campbell MACPfNE MBA
PHASE 1
MARKET RESEARCH
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CONFIRMING HYPOTHESES
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7. PHASE 1: RESULTS
Conclusion
Cross-analysing these results confirms that the areas of interest within the financial services industry are
inline with the challenges they are facing in the industry.
Namely:
• Making use of big data
• Reducing risks
• How to handle the changing customer demands landscape
• The emergence of disruptive business models
PHASE 1
MARKET RESEARCH
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2013 Crystal Campbell MACPfNE MBA
PHASE 2
DESIGN THINKING METHODOLOGIES
CONFIRMING HYPOTHESES
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PHASE 3
BUSINESS CASE
SOCIAL BUSINESS VALUATION TOOL
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8. PHASE 2
Do: Workshop
The second phase was dedicated to building, testing and iterating the most promising solutions hypotheses.
An action learning workshop was conducted using design thinking and lean startup methodologies to identify
gaps in the research and validate early product development concepts for iterations.
VIDEO: https://vimeo.com/73655000
PHASE 1
MARKET RESEARCH
1
2013 Crystal Campbell MACPfNE MBA
PHASE 2
DESIGN THINKING METHODOLOGIES
CONFIRMING HYPOTHESES
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3
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PHASE 3
BUSINESS CASE
SOCIAL BUSINESS VALUATION TOOL
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9. PHASE 2: WORKSHOP
The 3 hour workshop was divided into two parts. In the first half, our participants worked in groups to build
four data driven personas and their varied social media trails to determine which online activity would affect
a range of behavioral drivers such as their decision making capabilities, risk profiles, adaptability, willingness
to change or influencer ripples.
What we really wanted the participants to come away with, was a world where hard transactional data can
be augmented by social media's soft data to build 360 degree analytical insight tools into micro-segments
for the financial industry.
PHASE 1
MARKET RESEARCH
1
2013 Crystal Campbell MACPfNE MBA
PHASE 2
DESIGN THINKING METHODOLOGIES
CONFIRMING HYPOTHESES
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PHASE 3
BUSINESS CASE
SOCIAL BUSINESS VALUATION TOOL
5
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10. PHASE 2: WORKSHOP
Using gamification in the second half of the workshop, our participants were reorganised into four fictional
bank groups with a mission to build and defend a new product offering that used the advanced analytics
discussed earlier that morning. A fifth group, role-playing each of our personas, were interviewed by the
banks for customer-driven product fit.
To wrap up, the personas group took on the bank's propositions MasterChef style, voting for the best
solutions in an afternoon that was as challenging and enlightening as it was entertaining.
PHASE 1
MARKET RESEARCH
1
2013 Crystal Campbell MACPfNE MBA
PHASE 2
DESIGN THINKING METHODOLOGIES
CONFIRMING HYPOTHESES
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PHASE 3
BUSINESS CASE
SOCIAL BUSINESS VALUATION TOOL
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11. PHASE 2
TakeOuts
The workshop takeouts, validated with follow up interviews and questionnaires with experts on the field
tested, evaluated and confirmed six conceptual prototypes. The following were the recommended:
Geo Locative Tools
Keywords: pervasive presence
Testing Tools
Keywords: concierge MVP, low-budget testing
Building Tools
Keywords: co-creation, customisation
Operations Tools
Keywords: lean startup methodology, intranet
Learning Tools
Keywords: social CRM, digital advisory, customisation
Risk Tools
Keywords: reducing unexpected loss
PHASE 1
MARKET RESEARCH
1
2013 Crystal Campbell MACPfNE MBA
PHASE 2
DESIGN THINKING METHODOLOGIES
CONFIRMING HYPOTHESES
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PHASE 3
BUSINESS CASE
SOCIAL BUSINESS VALUATION TOOL
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12. PHASE 2: TAKE OUTS
Geo Locative Tools
These are the aggregation of geo-located check-ins to
confirm geographic movements, travel patterns and
collect purchasing information and data patterns.
Keywords: pervasive presence
Building Tools
These are tools that use the collective intelligence and
self-interest of customers to co-build products and
services that they will actually use that are customised
to that micro-segment’s market requirements.
Keywords: co-creation, customisation
Learning Tools
These tools deliver behavioural data converted it into
actionable insights. They use data collected from social
media activity combined with standard CRM insights,
and transactional data.
Keywords: social CRM, digital advisory, customisation
PHASE 1
MARKET RESEARCH
1
2013 Crystal Campbell MACPfNE MBA
PHASE 2
DESIGN THINKING METHODOLOGIES
CONFIRMING HYPOTHESES
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PHASE 3
BUSINESS CASE
SOCIAL BUSINESS VALUATION TOOL
5
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13. PHASE 2: TAKE OUTS
Testing Tools
Tools that assist minimum viable product (MVP)
targeting to validate demand for potential products and
services in a risk free and low budget environment
Keywords: concierge MVP, low-budget testing
Operations Tools
These are tools that will enable intrapreneurial
operations to streamline the processes involved in
managing the social business.
Keywords: lean startup methodology, intranet
Risk Tools
These tools enable faster, secure and more reliable
credibility checks, reduction of risk behaviour as well as
identify areas of concern and likelihood assessments.
Keywords: reducing unexpected loss
PHASE 1
MARKET RESEARCH
1
2013 Crystal Campbell MACPfNE MBA
PHASE 2
DESIGN THINKING METHODOLOGIES
CONFIRMING HYPOTHESES
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PHASE 3
BUSINESS CASE
SOCIAL BUSINESS VALUATION TOOL
5
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14. PHASE 2: RECOMMENDATIONS
Do: Practice
The Lean Startup Methodology was suggested as the best practice for leading the new product development.
The proposal laid out a straight forward process for creating new products within existing businesses to
minimise risk and ensure market and client fit.
PHASE 1
MARKET RESEARCH
1
2013 Crystal Campbell MACPfNE MBA
PHASE 2
DESIGN THINKING METHODOLOGIES
CONFIRMING HYPOTHESES
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PHASE 3
BUSINESS CASE
SOCIAL BUSINESS VALUATION TOOL
5
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15. PHASE 3
Validate
Social business is becoming the very fabric of an organisation’s ability to evolve, with high performing
companies competing based on the quality of their information. Thus, the estimated payback value of
developing social business tools is high.
The final phase presented a business case and a business valuation tool to validate action taken byNovabase
towards initiating a project into developing a range of social business tools for the financial services industry.
PHASE 1
MARKET RESEARCH
1
2013 Crystal Campbell MACPfNE MBA
PHASE 2
DESIGN THINKING METHODOLOGIES
CONFIRMING HYPOTHESES
2
3
4
PHASE 3
BUSINESS CASE
SOCIAL BUSINESS VALUATION TOOL
5
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16. PHASE 3
Tool
The overarching objective for the social business tools is to use social data to drive better results. Thus,
getting a handle on the metrics that the client will base it’s success information on will make all the difference
in validating the business value of the social business tools for the client.
Being that, a financial valuation tool was developed to help the client identify, prioritize and quantify
opportunities across it’s business functions. Using the model they are able to navigate through the social
business opportunities, creating a starting point, and an implementational roadmap which will maximise
returns.
Additionally, the tool serves an internal purpose for Novabase, that which to prepare a targeted sales strategy
by presenting the potential business value for a prospective client.
PHASE 1
MARKET RESEARCH
1
2013 Crystal Campbell MACPfNE MBA
PHASE 2
DESIGN THINKING METHODOLOGIES
CONFIRMING HYPOTHESES
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BUSINESS CASE
SOCIAL BUSINESS VALUATION TOOL
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17. PHASE 3: RECOMMENDATIONS
Do
Based on internal data provided by Novabase, the following implementation timeline was proposed:
In one month, an eight person team, working hand-in-hand with the client, and focused on one area of
interest, should be able to develop at least four iterations. The goal here is to develop a range of social
business tools that have different front end applications but utilise the similar social media/big data analytics
requirements in the back end.
PHASE 1
MARKET RESEARCH
1
2013 Crystal Campbell MACPfNE MBA
PHASE 2
DESIGN THINKING METHODOLOGIES
CONFIRMING HYPOTHESES
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PHASE 3
BUSINESS CASE
SOCIAL BUSINESS VALUATION TOOL
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18. PHASE 3: RECOMMENDATIONS
Pricing Models
Since the business value of the social business tool for the client is ambiguous at best, the following challenge
that presents itself is the optimal pricing of the tool. While the pricing model must be appropriate for the
interested financial services player, it must also be influenced by any direct or indirect competitors.
Simply proposing a cost based or value based model will not work in this particular ecosystem because the
costs to develop are too low in comparison to the value they return, and this very value, as discussed cannot
easily be evaluated.
Give it away for free, and make money later
Given that the social business tools will be a work in progress, developed hand-in-hand with the first sets of
clients, creating a pricing model based on the free offering is the recommended option.
PHASE 1
MARKET RESEARCH
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2013 Crystal Campbell MACPfNE MBA
PHASE 2
DESIGN THINKING METHODOLOGIES
CONFIRMING HYPOTHESES
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PHASE 3
BUSINESS CASE
SOCIAL BUSINESS VALUATION TOOL
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19. PHASE 3: PRICING MODEL RECOMMENDATIONS
Free product, bundled with paid services
Common for open source software, this pricing model offers the product for free download, but customers
pay subscription fees for support.
The Freemium model
A free, limited-functionality version of the product is on offer, and some users pay a premium for advanced
features. This model needs to offer just enough value to attract and lock in regular users, and more value in
the premium version to entice conversion and maximize cash flow.
Feature pricing
You configure your product to have a bare-bones version with a variety of optional upgrades. Interested
buyers are attracted with a low price and then are upsold on features.
PHASE 1
MARKET RESEARCH
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2013 Crystal Campbell MACPfNE MBA
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CONFIRMING HYPOTHESES
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SOCIAL BUSINESS VALUATION TOOL
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