Social Media in the Enterprise: Trends, Opportunities, and Lessons Learned

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This is the talk I'll be giving at the MMC HR Executive Team meeting on October 13, 2009. Topics include an overview of social media trends and its impacts on companies and organizations.

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Social Media in the Enterprise: Trends, Opportunities, and Lessons Learned

  1. 1. Social Media in the Enterprise Trends, opportunities, and lessons learned MMC HR Executive Team Meeting October 13, 2009 Presented by Daniel Leslie Reflexions Data, LLC
  2. 2. Overview The social media lexicon The long view Impacts and trends How are companies benefiting? McKinsey Global Survey results Looking ahead Q&A
  3. 3. The social media lexicon
  4. 4. The social media lexicon Emerging web terminology can be confusing and ambiguous. Lack of consensus by experts & innovators in the field. Discussion is often mediated by marketers and startups. Fluid nature of vocabulary reflects the dynamic landscape of the web itself.
  5. 5. The social media lexicon Some of the more useful terms: social media (user-generated content) conversational media (text: blogs, microblogs, comments) social web (the web of people; social networks) semantic web (the web of linked data; one giant shared database)
  6. 6. How did we get here? The long view 1. Internet a network of computers 2. World Wide Web a network of documents 3. Giant Global Graph a network of people & data (left: “clock of the long now”)
  7. 7. (Video by Erik Qualman: www.socialnomics.net) Compare to radio, TV, the internet
  8. 8. Social media impacts and trends Information flow is highly distributed and decentralized. Extremely low latency; approaches real-time. Increasingly mobile and location- aware. Increased information efficiency.
  9. 9. Social media impacts and trends Social media and web technologies are almost always layered. Innovations become stacked on top of one another. Web innovation exists within a positive-feedback loop.
  10. 10. Social media impacts and trends Both a disruptor and enabler. Information exchange becomes less top-down, more bottom-up and horizontal. Downward shift of power and influence and increased transparency. This is happening to everything from companies to governments.
  11. 11. Social media impacts and trends Web 2.0 and social media applications have largely arisen due to reduced infrastructure costs and improved capital efficiency. “It now takes about 1/10th of the hardware, software, bandwidth, and storage costs to build a web service compared to 1999/2000 time period.” (http://www.avc.com/)
  12. 12. Social media impacts and trends Already highly disruptive to some industries: Traditional print and broadcast media PR/Communications Advertising
  13. 13. How are companies benefiting? New opportunities for cost reduction and revenue generation Two categories of cost reduction: Infrastructure costs Transaction costs
  14. 14. How are companies benefiting? What infrastructure costs are reduced? Application development Software licensing Hardware acquisition & maintenance Hosting and bandwidth Real estate
  15. 15. How are companies benefiting? What transaction costs are reduced? Recruiting and candidate assessment 80% of companies are using LinkedIn as their primary tool to find employees 80% use candidate profiles in their assessment; 95% use LinkedIn Source: Jobvite Social Recruitment Survey
  16. 16. How are companies benefiting? What transaction costs are reduced? Employee communications: improved knowledge-sharing and employee engagement Interactions with suppliers and partners Gaining expertise from outside the company walls
  17. 17. greater benefits. We also looked closely at the factors driving these improvements—for example, the types of technologies companies are using, management practices that produce benefits, and any organizational and cultural characteristics that may contribute to the gains. We found that successfu companies not only tightly integrate Web 2.0 technologies with the work flows of their employees bu y conducted June 2009 also create a “networked company,” linking themselves with customers and suppliers through the McKinsey Global Survey esponses from use of Web 2.0 tools. Despite the current recession, respondents overwhelmingly say that they will dustries, nal specialties. continue to invest in Web 2.0. The “Networked Company” These survey results indicate that a different type of company may be emerging—one that makes intensive use of interactive technologies. This networked organization is characterized both by the internal integration of Web tools among employees, as well as use of the technologies to strengthen company ties with external stakeholders—customers and business partners.
  18. 18. Glance: Exhibit title: A mix of technologies Exhibit 2 A mix of technologies Use of technologies, % of respondents Use given tool and report at least 1 measurable benefit from using Web 2.0 Internal, Customer-related Working with external Web 2.0 technologies technologies n = 1,032 purposes, n = 870 partners/suppliers, n = 627 Use given tool and report no Video sharing 48 48 50 measurable benefits from using 24 30 39 Web 2.0 technologies Blogs 47 51 51 44 42 60 RSS1 42 45 45 32 42 50 Social networking 42 48 49 30 26 48 Wikis 40 37 38 22 31 36 Podcasts 36 37 35 29 24 32 Rating 22 22 24 10 13 22 Tagging 21 23 24 12 13 31 P2P2 20 20 25 5 8 8 Microblogging 18 21 22 13 15 22 Mashups3 14 14 16 3 8 17 Prediction markets 9 9 12 5 4 7 1Really Although manysyndication. simple 2Peer to peer. companies use a mix of tools, the survey shows that among all respondents deriving benefits, the more sources of data into a single tool. 3A mash-up is a web application that combines multiple heavily used technologies are blogs, wikis, and podcasts—the same tools that are popular among consumers. Among respondents who report seeing benefits within their companies, many cite blogs, RSS, and
  19. 19. Glance: Exhibit title: Where the benefits are Exhibit 3 Where the benefits are Use of technologies Internal purposes, n = 1,032 Customer-related purposes, n = 870 Working with external partners/ % of respondents within each industry % of respondents within each region suppliers, n = 627 gaining at least 1 measurable benefit from gaining at least 1 measurable benefit using Web 2.0 technologies1 from using Web 2.0 technologies1 75 64 Latin 55 High tech/telecom 65 India 46 47 48 43 America 36 Business/legal/ 62 North 62 Developing 54 60 54 47 professional services 46 America 36 markets2 41 52 58 53 Manufacturing 37 Europe 45 China 52 24 35 41 51 57 Financial 32 Asia-Pacific 47 20 36 1Includes respondents who are using at least 1 Web 2.0 technology, even if on trial basis. 2Excludes China, India, and Latin America. Regardless of industry, executives at companies that use more Web 2.0 technologies also report greater benefits. Comparing respondents’ industries, those at high-technology companies are most likely to report measurable benefits from Web 2.0 across the board, followed by those at companies offering business, legal, and professional services (Exhibit 3). Companies with revenues exceeding $1 billion—along with business-to-business organizations—are more likely to report benefits than are smaller companies or consumer companies.
  20. 20. Glance: Exhibit title: Integrating for success Exhibit 5 Integrating for success Most important practices for successfully using Web 2.0 technologies, % of respondents reporting at least 1 measurable benefit from using Web 2.0 tools1 Use of technologies Internal purposes, Customer-related purposes, Working with external partners/ n = 1,032 n = 870 suppliers, n = 627 Integrating use of Web 2.0 Integrating Web 2.0 with Integrating Web 2.0 with into employees’ day-to-day 75 other modes of customer 74 other modes of partner/ 71 work activities interaction supplier/expert interaction Senior leaders role Ensuring participation of leading Marketing Web 2.0 modeling/championing 59 52 partners/suppliers/external 57 initiatives to customers use of technology experts to gain critical mass Marketing Web 2.0 initiatives Providing informal Providing informal 43 35 to partners/suppliers/ 46 incentives incentives external experts Providing formal Providing informal Allowing nonwork uses 17 9 33 incentives incentives Providing formal Providing formal incentives 14 10 incentives 1Includes respondents who are using at least 1 Web 2.0 technology, even if on trial basis. Many companies experiment with Web 2.0 technologies, but creating an environment with a critical mass of committed users is more difficult. The survey results confirm that successful adoption requires that the use of these tools be integrated into the flow of users’ work (Exhibit 5).
  21. 21. % of respondents, n=1,088 Increasing speed of access to knowledge Reducing communication costs Increasing speed of access to internal experts Decreasing travel costs Increasing employee satisfaction Reducing operational costs Reducing time to market for products/services Increasing # of innovations for new products/services Increasing revenue No measurable effects/benefits 0 17.5 35 52.5 70 Gains from using Web 2.0 for internal purposes (McKinsey Global Survey Results, June 2009)
  22. 22. Where are we going? “The three current big megatrends in Looking ahead the web/tech sector are mobile, social, and real-time. I like to think of this as the golden triangle. You can build interesting businesses in each of these three sectors. [...] But it is what happens inside the golden triangle that is really interesting to me.” Fred Wilson (www.avc.com) Union Square Ventures Impact on the enterprise: productivity applications location awareness resource planning
  23. 23. Where are we going? “The Web as I envisaged it, we have Looking ahead not seen it yet. The future is still so much bigger than the past.” Tim Berners-Lee 10-year outlook: transition of a web of text to a web of data and knowledge Impact on the enterprise: intelligent applications data mining and analysis information search will flip: people and data will find you
  24. 24. Questions?

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