Social Business By Design

Social Business by Design

David Armano Principal, Dachis Group dachisgroup.com Hello. Logic + Emotion davidarmano.com @armano 2

Social Business By Design | Date August, 2009 “Social Media is like teen sex. Everyone wants to do it, nobody knows how. When it’s finally done, there is surprise it’s not better. ” Avinash Kaushick, Analytics Evangelist, Google ® 2009 Dachis Group. Conﬁdential and Proprietary 3

Social Business By Design | Date August, 2009 Still, teens are having sex ® 2009 Dachis Group. Conﬁdential and Proprietary 4

Social Business By Design | Date August, 2009 So, whatʼs changed? Command & control. ® 2009 Dachis Group. Conﬁdential and Proprietary 5

Social Business By Design | Date August, 2009 Facilitation leads to engagement ® 2009 Dachis Group. Conﬁdential and Proprietary 6

Social Business By Design | Date August, 2009 Engagement leads to participation Engagement Techniques Used Broadcast Techniques Used “Comments, which were absent from the broadcast phase now represented almost 10% of the view rate.” Source: Doug White, Social Media Today ® 2009 Dachis Group. Conﬁdential and Proprietary 7

Social Business By Design | Date August, 2009 the network economy “America’s opportunity is to lead the network economy, not protect the industrial economy” ~John Gerzema, CIO Young & Rubicam dachisgroup.com ® 2009 Dachis Group. Conﬁdential and Proprietary 8

Social Business By Design | Date August, 2009 Facilitation ® 2009 Dachis Group. Conﬁdential and Proprietary 9

Social Business By Design | Date August, 2009 Participation ® 2009 Dachis Group. Conﬁdential and Proprietary 10

Social Business By Design | Date August, 2009 Facilitation ® 2009 Dachis Group. Conﬁdential and Proprietary 11

Social Business By Design | Date August, 2009 Participation ® 2009 Dachis Group. Conﬁdential and Proprietary 12

Social Business By Design | Date August, 2009 Reciprocation ® 2009 Dachis Group. Conﬁdential and Proprietary 13

Social Business By Design | Date August, 2009 Social networks amplify ® 2009 Dachis Group. Conﬁdential and Proprietary 14

Social Business By Design | Date August, 2009 Attention on the network is earned in streams ® 2009 Dachis Group. Conﬁdential and Proprietary 15

Social Business By Design | Date August, 2009 Ripples in the streams ® 2009 Dachis Group. Conﬁdential and Proprietary 16

Social Business By Design | Date August, 2009 Twitterʼs monetization? “Twitter is allowed to use, copy, reproduce, process, adapt, modify, publish, transmit, display and distribute your tweets because that's what we do.”~Biz Stone ® 2009 Dachis Group. Conﬁdential and Proprietary 17

Social Business By Design | Date August, 2009 ® 2009 Dachis Group. Conﬁdential and Proprietary 18

Social Business By Design | Date August, 2009 ® 2009 Dachis Group. Conﬁdential and Proprietary 19

Social Business By Design | Date August, 2009 100 people 100 blogs, twitter accounts, facebook pages, etc. (that’s a lot of streams) ® 2009 Dachis Group. Conﬁdential and Proprietary 20

Social Business By Design | Date August, 2009 Me-conomics 101 ® 2009 Dachis Group. Conﬁdential and Proprietary 21

Social Business By Design | Date August, 2009 The corporate social media curve ® 2009 Dachis Group. Conﬁdential and Proprietary 22

Social Business By Design | Date August, 2009 Or skipping it the curve all together... ® 2009 Dachis Group. Conﬁdential and Proprietary 23

Social Business By Design | Date August, 2009 Fooled you! ® 2009 Dachis Group. Conﬁdential and Proprietary 24

Social Business By Design | Date August, 2009 Two ways to look at this: “It is the most successful viral advertising ever. We have cut through the media clutter. It has cost us the same as a 30 second commercial, aired a few times on TV’’ ~Peter Helstrup, Gray Advertising VS. “I think there is an audience for virals. I think there is value in "cutting through." but pretending you are a hot, slutty mommy when you are in fact a paid actress is telling a lie and it will reﬂect back on your brand.’’ ~Blog commenter ® 2009 Dachis Group. Conﬁdential and Proprietary 25

Social Business By Design | Date August, 2009 Or is there? “We deeply apologise that the film has offended a lot of people — that certainly wasn't the idea. The idea was to create a positive view of Denmark. In order not to continue offending people, we have removed the film from YouTube...’’ ~VisitDenmark CEO Dorte Kiilerich ® 2009 Dachis Group. Confidential and Proprietary 26

Social Business By Design | Date August, 2009 Social business brings new challenges ® 2009 Dachis Group. Conﬁdential and Proprietary 27

Social Business By Design | Date August, 2009 Social media marketing is only one part of the equation social media marketing (subset of entire marketing activities) legal supply chain IT corporate distribution business functions R&D (which can be socialized) product development manufacturing etc… ® 2009 Dachis Group. Conﬁdential and Proprietary 11

Social Business By Design | Date August, 2009 What about cultural shifts across the company? ® 2009 Dachis Group. Conﬁdential and Proprietary 11

Social Business By Design | Date August, 2009 Putting your ecosystem to work for you ® 2009 Dachis Group. Conﬁdential and Proprietary 11

Social Business By Design | Date August, 2009 Removing the barriers that separate ® 2009 Dachis Group. Conﬁdential and Proprietary 11

Social Business By Design | Date August, 2009 ...and divide hierarchy + networks ® 2009 Dachis Group. Conﬁdential and Proprietary 11

Social Business By Design | Date August, 2009 The network effect flattens and democratizes The “Round World” Way N APPROVE? Y 1 Inspiration strikes. 2 Presents ideas 3 Boss either approves or denies. 4 If approved, individual to “The Boss”. If denied, confidence takes a slight hit. has “permission” to share with others. Sharing Ideas in Flat vs. Round Worlds The “Flat World” Way N IDEA “PUBLISH” TAKES OFF? Y 1 Inspiration strikes. 2 “Presents” ideas 3 “Publishes” idea on social network. 4 If idea takes off, to peers within Waits to see if idea takes off. individual has established social network. If idea doesn’t gain traction— the credibility needed no harm done. to share more ideas. © David // Armano darmano.typepad.com ® 2009 Dachis Group. Conﬁdential and Proprietary 11

Social Business By Design | Date August, 2009 Revenge of the worker bee ® 2009 Dachis Group. Conﬁdential and Proprietary 11

Social Business By Design | Date August, 2009 Better employees = better business Listening: “with employees, listening can turn rapidly into problem solving.” talking: “post policy changes where everyone can read them and see how they’re playing in Peoria” Energizing: “amplifies (an enthusiastic employee’s) voice across the entire Best Buy employee bases. She spreads her positive thinking and advice, which has an impact on stores everywhere.” Supporting: “employees can find the support they need from around the company” Embracing: “community turned out to be a way to surface both ideas and great talent” ® 2009 Dachis Group. Confidential and Proprietary 11

Social Business By Design | Date August, 2009 The digital watercooler ® 2009 Dachis Group. Conﬁdential and Proprietary 11

Social Business By Design | Date August, 2009 more challenges ® 2009 Dachis Group. Conﬁdential and Proprietary 37

Social Business By Design | Date August, 2009 Participation creates scalability issues ® 2009 Dachis Group. Conﬁdential and Proprietary 38

Social Business By Design | Date August, 2009 Personality is a plus, but... “I believe that people would rather have a conversation with a person than a brand.” ~Scott Monty, Ford Motor Company ® 2009 Dachis Group. Conﬁdential and Proprietary 39

Social Business By Design | Date August, 2009 ...individuals donʼt scale well ® 2009 Dachis Group. Conﬁdential and Proprietary 40

Social Business By Design | Date August, 2009 Some organizations are trying imagine if your entire call center was a social business center ® 2009 Dachis Group. Conﬁdential and Proprietary 41

Social Business By Design | Date August, 2009 Signs of ROI Dell Outlet has booked more than $3 million in revenue attributable to its Twitter posts. In addition, the division has done research showing that awareness of the outlet has grown, too. Source: Twitter 101 ® 2009 Dachis Group. Conﬁdential and Proprietary 42

Social Business By Design | Date August, 2009 Social business must be integrated (but often isnʼt) ® 2009 Dachis Group. Conﬁdential and Proprietary 43

Social Business By Design | Date August, 2009 the industrial machine rolls on ® 2009 Dachis Group. Conﬁdential and Proprietary 44

Social Business By Design | Date August, 2009 Great PR & marketing, but is it integrated? ® 2009 Dachis Group. Conﬁdential and Proprietary 45

Social Business By Design | Date August, 2009 Starbucks starts to connect the dots ® 2009 Dachis Group. Conﬁdential and Proprietary 46

Social Business By Design | Date August, 2009 Starbucks starts to connect the dots 70,000 ideas in first year Free coffee for Gold Card members on their birthday Starbucks VIP card Splash sticks Buy coffee beans, get a free cup of coffee ® 2009 Dachis Group. Conﬁdential and Proprietary 47

Social Business By Design | Date August, 2009 Hiring and staffing ® 2009 Dachis Group. Conﬁdential and Proprietary 48

Social Business By Design | Date August, 2009 How many followers means credibility? ® 2009 Dachis Group. Conﬁdential and Proprietary 49

Social Business By Design | Date August, 2009 Wanted: chief social officer? ® 2009 Dachis Group. Conﬁdential and Proprietary 50

Social Business By Design | Date August, 2009 Measurement is a challenge ® 2009 Dachis Group. Conﬁdential and Proprietary 51

Social Business By Design | Date August, 2009 Constructs to measure dachisgroup.com ® 2009 Dachis Group. Conﬁdential and Proprietary 52

Social Business By Design | Date August, 2009 Governance Source: Ambidanze on Flickr ® 2009 Dachis Group. Conﬁdential and Proprietary 53

Social Business By Design | Date August, 2009 What policy do you have in place? ® 2009 Dachis Group. Conﬁdential and Proprietary 54

Social Business By Design | Date August, 2009 Does your workflow facilitate matters? Source: Dell Outreach in the blogosphere, Scribd ® 2009 Dachis Group. Conﬁdential and Proprietary 55

Social Business By Design | Date August, 2009 Organizational culture: open or closed? dachisgroup.com ® 2009 Dachis Group. Conﬁdential and Proprietary 56

Social Business By Design | Date August, 2009 An open culture (worth $900 million) ® 2009 Dachis Group. Conﬁdential and Proprietary 57

Social Business By Design | Date August, 2009 Open cultures invite their constituents to participate ® 2009 Dachis Group. Conﬁdential and Proprietary 58

Social Business By Design | Date August, 2009 A participatory ecosystem ® 2009 Dachis Group. Conﬁdential and Proprietary 59

Social Business By Design | Date August, 2009 Being “open” is contagious ® 2009 Dachis Group. Conﬁdential and Proprietary 62

Social Business By Design | Date August, 2009 Who benefits? Everyone. ® 2009 Dachis Group. Conﬁdential and Proprietary 63

Social Business By Design | Date August, 2009 How does social integrate? ® 2009 Dachis Group. Conﬁdential and Proprietary 64

Social Business By Design | Date August, 2009 Centralization: aka command-and-control Key: TM Traditional Marketing DM Digital Marketing SM Social Media PR Public Relations C Corporate Marketing/Communications ® 2009 Dachis Group. Conﬁdential and Proprietary 65

Social Business By Design | Date August, 2009 Decentralization: aka free-for-all Key: TM Traditional Marketing DM Digital Marketing SM Social Media PR Public Relations C Corporate Marketing/Communications ® 2009 Dachis Group. Conﬁdential and Proprietary 66

Social Business By Design | Date August, 2009 Shared services: a hybrid approach Key: TM Traditional Marketing DM Digital Marketing SM Social Media PR Public Relations C Corporate Marketing/Communications ® 2009 Dachis Group. Conﬁdential and Proprietary 67

Social Business By Design | Date August, 2009 When orchestration is done right... ® 2009 Dachis Group. Conﬁdential and Proprietary 68

Social Business By Design | Date August, 2009 And when done wrong... “if a company does not begin its social media initiative with a strong composition for all to follow; the orchestra would sound like a high school band room during warm up and prior to the conductor tapping his baton. Pandemonium!” ~Laureen Earnest, Source: ChrisBB@prodigy.net on Flickr ® 2009 Dachis Group. Conﬁdential and Proprietary 69

The experience is social ® 2009 Dachis Group. Conﬁdential and Proprietary 70

Social Business By Design | Date August, 2009 The building blocks of an experience experience USEFUL USABLE DESIRABLE SUSTAINABLE serves purpose intuitive enjoyable scalable satisfies needs easy pleasurable maintainable practical seamless delightful adaptive functional accessible memorable pliable helpful efficient differentiated effective The Basics (often broken) USERS BRAND BUSINESS Foundation ® 2009 Dachis Group. Confidential and Proprietary 71

Social Business By Design | Date August, 2009 Now, add “social” social experience USEFUL USABLE DESIRABLE SUSTAINABLE SOCIAL serves purpose intuitive enjoyable scalable shareable satisfies needs easy pleasurable maintainable open practical seamless delightful adaptive distributed functional accessible memorable pliable dynamic helpful efficient differentiated collective effective Natural The Basics Progression (often broken) (toward social experiences) EXTERNAL CUSTOMER PARTICIPATION INTERNAL CONSTITUENT COLLABORATION BUSINESS OPTIMIZATION Foundation ® 2009 Dachis Group. Confidential and Proprietary 72

“Design is the planning that lays the basis for the making of every object or system” ® 2009 Dachis Group. Conﬁdential and Proprietary 73

Social Business By Design | Date August, 2009 Design user experience Hardware: Industrial Design Software: User Interface Design ® 2009 Dachis Group. Conﬁdential and Proprietary 74

Social Business By Design | Date August, 2009 Business design content ecosystem support services commerce ecosystem application ecosystem developer ecosystem cloud services products supply chain ecosystem ® 2009 Dachis Group. Conﬁdential and Proprietary 75

Social Business By Design | Date August, 2009 Social business design ® 2009 Dachis Group. Conﬁdential and Proprietary 76

Social Business Design is the intentional creation of dynamic and socially calibrated systems, process, and culture. ® 2009 Dachis Group. Conﬁdential and Proprietary 77

Social Business By Design | Date August, 2009 Changes pushing business toward being more social ® 2009 Dachis Group. Conﬁdential and Proprietary 78

Social Business By Design | Date August, 2009 Duct tape and bubble gum wonʼt cut it ® 2009 Dachis Group. Conﬁdential and Proprietary 79

Social Business By Design | Date August, 2009 Itʼs time for social business by design dachisgroup.com ® 2009 Dachis Group. Conﬁdential and Proprietary 80

Social Business By Design | Date August, 2009 Four core archetypes dachisgroup.com Ecosystem Hivemind Dynamic Signal Metafilter ® 2009 Dachis Group. Conﬁdential and Proprietary 81

Social Business By Design | Date August, 2009 Ecosystem (Connections) dachisgroup.com From Disparate Silos To Connected Nodes ® 2009 Dachis Group. Conﬁdential and Proprietary 82

Social Business By Design | Date August, 2009 Hivemind (Culture) dachisgroup.com From Hoarding To Collaborating ® 2009 Dachis Group. Conﬁdential and Proprietary 83

Social Business By Design | Date August, 2009 Dynamic Signal (Communication) dachisgroup.com From Static To Dynamic ® 2009 Dachis Group. Conﬁdential and Proprietary 84

Social Business By Design | Date August, 2009 Metafilter (Content) dachisgroup.com From Filter Failure To Clear Signals ® 2009 Dachis Group. Conﬁdential and Proprietary 85

Social Business By Design | Date August, 2009 Why? Leveraged + = & Emergent Outcomes •Cost savings and efficiencies •Improved collaborative processes •Informed social marketing strategies •Adaptable business practices •New product & service offerings/innovations •Customer growth, retention and sustainability •Expansion into new markets ® 2009 Dachis Group. Conﬁdential and Proprietary 86

Social Business By Design | Date August, 2009 because it’s time to grow up ® 2009 Dachis Group. Conﬁdential and Proprietary 87

Social Business By Design | Date August, 2009 “social” will be replaced by “it’s how we do business” ® 2009 Dachis Group. Conﬁdential and Proprietary 88

David Armano Principal, Dachis Group Thank Logic + Emotion davidarmano.com You dachisgroup.com @armano 89

Social Business by Design

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Social Business By Design

by David Armano

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