The business case for corporate social networks. Case studies and suggested approaches to building the business case.
Transcript of "The Business Case For Corporate Social Networks"
The Business Case for Corporate Social Networks ROI ideas and stories David Terrar – D2C and WordFrame Corporate Social Networking Forum – June 8 th
Charles Darwin – natural selection “ The theory of evolution by cumulative natural selection is the only theory we know of that is, in principle, capable of explaining the existence of organized complexity.” Richard Dawkins
Recommended reading http://www.throwingsheep.com/ “ Networked Web 2.0 tools and technologies are making a profound impact on every aspect of our lives as social networking changes forms of entertainment in our personal lives and business models in the workplace.” John Chambers, Chairman and CEO, Cisco “ Web 2.0 social networking has far-reaching consequences for corporate executives managing relationships with customers, employees and business partners.” Henning Kagermann, Chairman and CEO, SAP
The 9x Effect <ul><li>John T. Gourville – Albert J. Weatherhead, Jr. Professor of Business Administration at HBS </li></ul><ul><li>Eager Sellers and Stony Buyers: Understanding the Psychology of New-Product Adoption </li></ul><ul><li>New product has to be 9 times better! </li></ul>http://www.scribd.com/doc/16696/Eager-Sellers-and-Stony-Buyers-June-2006
Enterprise 2.0 solutions? New Product Development Customer service Idea generation Market research Developer relations Amplifying Word of Mouth Employee communications General Marketing Reputation management Product testing Public relations LONG TAIL SALES PROJECT COLLABORATION Co-innovation Member networking Capturing Knowledge
Making enterprise 2.0 work S tart with the end in mind W hat's in it for me I ntuitive and simple T echnology supporting not leading C ommunity management H elp and resources
From Command and Control to Teamwork and Collaboration http://www.youtube.com/watch?v=9WX7BNnYTf8&eurl=http://
Nokia <ul><li>Today, Nokia estimates at least 20% of its 68,000 employees use wiki pages to update schedules and project status, trade ideas, edit files, and so on. </li></ul><ul><ul><li>"It's a reversal of the normal way things are done," says Stephen Johnston, senior manager for corporate strategy at Nokia, who helped pioneer the technology. Where Nokia once bought outside software to help foster collaboration, now "some of the most interesting stuff is emerging from within the company itself," says Johnston. - Source : BusinessWeek </li></ul></ul>
Intel <ul><li>In late 2005, Intel engineer Josh Bancroft was looking for a tool that his colleagues could use to share company information. </li></ul><ul><ul><li>Historical information or the progress of internal projects. </li></ul></ul><ul><li>Inspired by Wikipedia, the online encyclopedia assembled by users around the world, he devised Intelpedia , an internal Web site that draws on the input of employees from across the company. </li></ul><ul><li>In a year Intelpedia had accumulated 5,000 pages of content and garnered over 13.5 million page views. </li></ul><ul><ul><li>"Employees can be frustrated that somebody else edited their work," says Jeff Moriarty, collaboration technical architect of Intel's information technology group. "It's a disruptive capability—it shakes things up." </li></ul></ul>
TransUnion <ul><li>One of the big 3 credit report companies in USA </li></ul><ul><li>$50,000 on a social networking platform </li></ul><ul><li>Estimated $2.5 million in savings in less than five months </li></ul>CTO John Parkinson: "It was never very clear to us, looking in, who the authoritative sources were, who was good at solving problems. Now we can see a lot of that because we're starting to see patterns emerge, to see who's following whom, who's the good source of questions, who offers good answers. All those things that you sort of know by the grapevine, we now have data for."
Conclusions <ul><li>Over a hundred case studies in the affirmative, though most are large enterprise </li></ul><ul><li>Successful roll-outs at SME/SMBs, Fortune 500, and Global 2000 </li></ul><ul><li>Forrester has declared the existence of an Enterprise 2.0 industry that will be $4.3Bln by 2013 </li></ul><ul><li>“ Wisdom of Crowds”, collaboration, community </li></ul><ul><li>Focus on business process not technology </li></ul><ul><li>“ Think Big, Start Small, Move Fast” (Lockheed Martin) </li></ul>
Recommended reading Meatball Sundae: Is Your Marketing out of Sync? and Tribes – Seth Godin