2011 SBS Sydney | Dion Hinchcliffe, High Impact Social Business: Stories and New Perspectives

High Impact Social Business:Stories and New PerspectivesDion Hinchcliffe

Social Business Summit 2011 Sydney | High-Impact Social Business The drivers for next-generation business• Pervasive global connectivity• New friction-less interaction platforms• Next-gen mobility• Focus on network effects• Information superabundance• Inherent transparency, openness, and broadcast• The rise of social capital

Social Business Summit 2011 Sydney | High-Impact Social Business The current customer engagement landscape Webinars online video direct mail P2P video social networks mobile apps(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.

Social Business Summit 2011 Sydney | High-Impact Social BusinessThe marketplace has reinvented itself in thelast half decade Public Social Networks Interaction and Social Business Worker Us Online Community Trust, Engagement, Reputation Customer Microblogs Communities Community Mgmt Social Web Tech & Standards E2.0 Workﬂow The Social Web 1.5 billion B2C E2.0 Compliance B2B people Trading World Wide Web Business Partners Customers + Public Including how, where, and who we interact and do business with(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.

Social Business Summit 2011 Sydney | High-Impact Social BusinessIn this new marketplace, the opportunitiesare unlimited • All your workers • All your customers • All your competitors • All the ideas and innovation • Only a few proven strategies for long-term competitive advantage If only we can understand how to engage with them where they are today(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.

Social Business Summit 2011 Sydney | High-Impact Social BusinessSocial As The New Dominant Global Trend Source: ComScore Global & Morgan Stanley(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.

Social Business Summit 2011 Sydney | High-Impact Social Business Mobile Internet Ramping Up Faster Than Desktop Internet by 5x(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.

Social Business Summit 2011 Sydney | High-Impact Social BusinessHundreds of public social networks...(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved. ...channel fragmentation 8

Social Business Summit 2011 Sydney | High-Impact Social BusinessDozens of internal social channels• E-mail• Text messaging• Instant messaging• Meetings and conference calls• Enterprise 2.0• Social CMS• Knowledge management• Intranets• Online communities(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved. 9

Social Business Summit 2011 Sydney | High-Impact Social Business Channel Fragmentation Is Now The Norm +400 social networks with over 1 million users = 2 billion mobile Internet users + 100 millionaggregate audience of about 900 million next-gen smart phone users across hundreds of device types Have Become The De Facto Primary Channels for Customer Engagement (cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.

Social Business Summit 2011 Sydney | High-Impact Social Business So Customers Have Moved... And Companies Have Fallen Behind • Mobile • Social • New Digital Channels • Approximately 1 Billion “Digital Natives” Have Migrated In the Last 3 Years(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.

Social Business Summit 2011 Sydney | High-Impact Social Business Companies Know The Problem Will Only Get Worse Outdated frameworks and operational strategies often relegate discussions to incremental ﬁxes and piecemeal approaches Organizations realize they are no longer in charge. They usually lack a credible strategy that empowers employees to catch up to customers. Although @ComcastCares has over 10 employees responding in new customer engagement channels like Twitter, they can’t scale. A proliferation of new social networks and mobile apps are appearing at an increased pace – organizations are falling further behind. The result – large amounts of waste in fragmented data, customer records, touchpoints, and experiences – leaving companies unable to efﬁciently reach customers, prospects, and partners.(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.

Social Business Summit 2011 Sydney | High-Impact Social Business Change Keeps Coming: The Rise of Social and Mobile Apps PepsiCo Digital Chief: “The majority of social interaction will happen via mobile” - Feb 21, 2011(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.

Social Business Summit 2011 Sydney | High-Impact Social Business The worldʼs most important channels...(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.

Social Business Summit 2011 Sydney | High-Impact Social BusinessWhat do new engagement channels really provide? • Radical reductions in cost of doing business (i.e. 30% reduced support costs) • Dramatic improvements in customer sat scores • Real-time response to customer needs & critical situations • Access to deep pools of innovation • Revenue growth (increased See Case Studies Section top-of-line sales and service numbers)(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.

High Impact Social Business Stories(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved. 16

Origin Stories for Social Business• Open Source Software (OSS)•• The Search for Steve Fossett• Innocentive• AOL Social Talent Pool + Problem = Innovation• CIA and A-Space

Social Business Summit 2011 Sydney | High-Impact Social BusinessWhatʼs the best way to interact with someoneunder 30?• Have a mobile app on their ﬁrst screen.• Those under 30 rank text messaging as their #1 form of communicating, followed by Facebook.• These are the critical and future new channels in which to have deep marketing effectiveness.• The primary future of marketing will be in “large scale social experiences.”(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved. 18

Social Business Summit 2011 Sydney | High-Impact Social BusinessHow Customer Engagement Is Evolving Large Scale Social Experiences(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved. 19

Social Business Summit 2011 Sydney | High-Impact Social BusinessCase Study: HBO(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved. 20

Social Business Summit 2011 Sydney | High-Impact Social BusinessWhere is the social business opportunity inworkforce engagement? • Increased levels of productivity that were inaccessible until now • Enablement of tacit interactions on a previously unknown scale (Source: McKinsey & Company) Enterprise 2.0 has the potential to increase productivity in complex interactions, where previous attempts have largely failed(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.

Social Business Summit 2011 Sydney | High-Impact Social Business The 50 Foot Collaboration Rule • Workers are not likely to collaborate very often if they are more than 50 feet apart: Take Away: Surmounting this obstacle is now • Even with traditional possible with social electronic aids such as telephone, e-mail, and technologies remote video(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved. 22

Social Business Summit 2011 Sydney | High-Impact Social BusinessSignificant Social Business Examples• - 50x ROI in high value scenarios• - 29% reduction in e- mail volume after making social their primary business channel• and Atos Origin - Eliminating e-mail entirely while moving to social channels• Gold Corp - $3.5 billion in value generated through

Social Business Summit 2011 Sydney | High-Impact Social Business• Telecommunications giant wanted workers to be much more collaborative (driven by the From Greg Lowe, Enterprise 2.0 Lead: CEO)• 77,000 employees scattered across the globe previously using primarily process-focused tools like SharePoint• Began experimenting with Yammer back in 2008, now over 9,300 workers using it- Users began reporting Ibeneﬁts: a problem.” “Yammer saved me three days of trying to ﬁnd who should talk to about• Spent 13 months working on formal E2.0 implementation, which rolled out earlier in 2010 on Jive Software• Users have been mobilizing and self- organizing, such as sales groups that have created social groups to share best practices and internal techniques (cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved. 24

Social Business Summit 2011 Sydney | High-Impact Social BusinessHuman Resource Implications for Social Business• HR is ground zero for internal and external social media• Example: CHROs we talk to are fielding requests from employees to create Facebook groups to collaborate - Primary Cause: Employees are not given basic collab tools in most firms - One CHRO at a large financial services firm has received over 50 such requests in 2010 alone• Increasingly, HR is actually getting in the driverʼs seat - Policies - Guidance and Support - Professional Development - “Air Cover”(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.

Social Business Summit 2011 Sydney | High-Impact Social BusinessSocial Business in the Workplace(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.

Social Business Summit 2011 Sydney | High-Impact Social BusinessShow Me The Value:Latest B2C ROI ﬁndings:• 1700 executives from around the world across a wide range of industries• 69 percent of respondents report that their companies have gained measurable business beneﬁts, including: - More innovative products and services, - More effective marketing and customer care - Better access to knowledge - Lower cost of doing business - Higher revenues Source: McKinsey, September 2009 (cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.

Social Business Summit 2011 Sydney | High-Impact Social Business How do we best organize for Social Business?(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.

Cross Border Example: Social CRM(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.

Social Business Summit 2011 Sydney | High-Impact Social Business How can we have meaningful conversations with a million customers? Example:(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.

Social Business Summit 2011 Sydney | High-Impact Social Business The Rise of Social CRM• Deﬁnition: Better, more effective customer interaction that leverages the collective intelligence of the broader customer community to create signiﬁcant business value.• Industry leaders include Lithium, Jive, GetSatisfaction, Salesforce, and a rapidly growing host of other offerings• Most Social CRM vendors are focusing on a broader range of interaction beyond just Q&A• Social CRM improves customer satisfaction, drives down costs, and increases innovation and growth Industry Lesson: Most SCRM implementors will reap a ~30% cost reduction ® 2010 Dachis Group & Creative Commons. Some Rights (cc) 2011 Dachis Group.Intuit. Confidential and Proprietary Reserved. 22

Social Business Summit 2011 Sydney | High-Impact Social Business Intuit and Social CRM Live Community. 7.5 million social support users per year (over 20 million of social support transactions a year.) Used extensively in multiple product lines in their SMB division. • Long struggled to use software to compete with live human beings (H&R Block, the previous #1 tax preparer) – Decided to collaborate with customers to help support their users during an extremely time intensive yearly process: tax season – New process allowed anyone, either workers or customers, to answer customer support questions in real-time – Greatly lowered abandonment of the product and make TurboTax the #1 product in the space for the ﬁrst time(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.

Live Community:Focusing Social Activity on Customer Engagement Transactions

Social Business Summit 2011 Sydney | High-Impact Social Business Mobile Customer Engagement Cases(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.

Social Business Summit 2011 Sydney | High-Impact Social Business A new risk: Mobile disintermediation • Customers want ease, control, speed, and results • Offerings in a silo or from on perspective are becoming less appealing • Aggegrators are actively driving disintermediation • Companies need to move their thinking up a level • Or there is a good chance they will lose the primary touch point with the customer (re: Google, Apple, PageOnce)(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.

Social Business Summit 2011 Sydney | High-Impact Social Business(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.

Social Business Summit 2011 Sydney | High-Impact Social BusinessWhat are the social business imperatives? • Become digital natives: Invest profoundly in understanding new social business competencies • Develop engaging social experiences for your workers and customers • Create high impact social business solutions related to your lines of business • Reconcile traditional communication, marketing, learning, and HR with social business models New LG Mobile Concept Devices • Experiment while not worrying about succeeding slowly at ﬁrst • Design your business for constant change and growing loss of control(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.

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2011 SBS Sydney | Dion Hinchcliffe, High Impact Social Business: Stories and New Perspectives

by Dachis Group on May 24, 2011

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