This document discusses emerging social business strategies in 2010. It examines strategies like enterprise 2.0, online communities, open supply chains, open business models, and crowdsourcing. It notes that these strategies leverage network effects, peer production, and open collaboration. While these strategies provide benefits like innovation, cost reductions, and competitive advantages, they also face challenges adopting a new cultural mindset and relinquishing some control. Overall, the document advocates that businesses reimagine themselves using a "social lens" to harness collective intelligence through new online models.
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Emerging Social Business Strategies in 2010 | Social Business Summit 2010
1. Emerging Social Business
Strategies in 2010
What Works And Why
Dion Hinchcliffe
Thursday, March 11, 2010
2. Introduction
Dion Hinchcliffe
• ZDNet’s Enterprise Web 2.0
• http://blogs.zdnet.com/Hinchcliffe
• Social Computing Journal – Editor-in-Chief
• http://socialcomputingjournal.com
• ebizQ’s Next-Generation Enterprises
•
http://www.ebizq.net/blogs/enterprise
• Hinchcliffe & Company
• http://hinchcliffeandco.com
• mailto:dion@hinchcliffeandco.com
• Web 2.0 University
• http://web20university.com
• : @dhinchcliffe
Thursday, March 11, 2010
3. Opening the
SBS to the Web
http://bit.ly/97hfp4
Thursday, March 11, 2010
4. The vision
• How we run our businesses is changing more quickly
than ever before
• New technology and expectations have led to results not
possible -- or expected -- before
• New economic, social, governmental, and cultural models
emerging globally
• Largely driven by the Web, but changes in us too
• A pragmatic exploration of how they promote resilient,
sustainable new business models
• Using what’s happened recently as a guide, what will this
transformation look like?
Thursday, March 11, 2010
5. The network is a
big place today
• All your customers
• All your competitors
• All the ideas and
innovation
• Only a few proven
strategies for long-term
competitive advantage
Thursday, March 11, 2010
6. The major shifts
• In who creates value (the network does)
• How much control we have over our
businesses
• How intellectual property works
• Great increases in transparency and
openness
• Open supply chains, community-based
processes and relationships
Thursday, March 11, 2010
7. The motive forces of
21st century business
^
tha t we
now of so
• Network effectsk
• Peer production far
• Self-service
• Open business models
• New social power
structures
Thursday, March 11, 2010
8. The Social Business Landscape
Unified Comm 2.0
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 1-2 billion
B2C
E2.0 Compliance
B2B
people
Trading World Wide Web
Business
Partners Customers + Public
Thursday, March 11, 2010
9. The Big Questions
• How do we build and sustain a
connection with a fundamentally new
marketplace?
• What are the rules for success?
• What do social businesses look like?
• Are we starting to understand best
practices?
• Where is this going? Is it part of a
larger story?
Thursday, March 11, 2010
10. Edge Businesses:
A Larger Context?
Always involve people,
but may not necessarily
be social
Thursday, March 11, 2010
11. The Story of KatrinaList & XM Radio
• Hurricane Katrina
– Survivors emerged and announced
where they were on their blogs
– People watching the Web’s syndication
“ecosystem” noticed the reports
– A small group collected the reports out
of the blogosphere and centralized the
listing
– Over 50,000 survivor reports in the first
3 days after the disaster
– Emergent phenomenon
– A critical example for how to rethink
solutions to traditional problems in a 2.0
world in which we can actually tap
collective intelligence
• XM Radio
• Community for Customer
Service
Thursday, March 11, 2010
12. A Few Edge
Business Stories
• Open Source Software (OSS)
•
• The Search for Steve Fossett
• Innocentive
• One Billion Minds
•
Thursday, March 11, 2010
13. The Map of Opportunity
Innovation Growth
Creating new rapid
Leveraging Innovation growth public services
• Product Incubators powered by:
• Open Supply Chains • Peer Production
• Product Development 2.0 • Jakob’s Law
• Some Rights Reserved • The Long Tail
• Blue Ocean
• Network Reinventing the
Fostering Effects
public relationship
Innovation to drive mission:
• Internal Innovation Markets • Customer Communities
• Open innovation •Customer Self-Service
• Database of Intentions
• Marketing 2.0
Current
Change State Driving costs down through
Management less expensive, better 2.0
• Transformation
Communities solutions:
• 2.0 Education • Lightweight IT/SOA
• Capability • Enterprise mashups
Acquisition • Expertise Location
Improving • Knowledge Retention
Business Remodeling productivity and
and Restructuring access to value:
• BPM 2.0 • Enterprise 2.0
• Open APIs
• Employee • Crowdsourcing
Communities • Prediction Markets
• Cloudsourcing
• Pull Systems
Transformation Cost Reduction
Thursday, March 11, 2010
14. The challenges
• Cultural “chasms”
• Disruption
• Cost
• Risk
• Difficulty (“Digital DNA”)
• Repeatability
Thursday, March 11, 2010
15. However, it’s usually a
people problem:
The biggest challenge is in
changing our thinking
Thursday, March 11, 2010
16. Rating social business
strategies
Challenges Repeatability
Questionable Ready for Wide
Value Adoption
Ideal for Early
Adopters
Suitable for Strategic
Experimentation Industry Play
Uncertain Results Proven Benefit
Thursday, March 11, 2010
17. Where Social
Business Applies (social me
in the
dia
enterprise
)
Enterprise 2.0 &
Product Development 2.0 Social Business Models
Product Development
Marketing
Sales crowdsourcing
online Customer Service cloud computing
mashups
community open APIs
Line of Business SaaS
new
development
paradigms
Operations | IT | Back Office
Thursday, March 11, 2010
18. No small system can withstand
sustained contact with a much
larger system without being
fundamentally changed.
Thursday, March 11, 2010
20. The Implications of
Social Business
• The fundamental re-orienting of the supply chain inputs
of most organizations
• Network structured organizations instead of hierarchical
• New value exchange mechanisms that involve direct value
(ideas, work) transfer instead of financial transactions
• Dramatically collapsed resource models for
accomplishing previously very difficult and/or large scale
business problems
• A steady recasting of the very notion of what a business
consists of
Thursday, March 11, 2010
21. Social Business
For Collaboration
(aka Enterprise 2.0)
Thursday, March 11, 2010
23. Applying the
“Web 2.0 effect” at work
• Enterprise 2.0
Enterprise 2.0 systems adapt
– Globally visible, persistent collaboration to the environment, rather
• Employees, partners, and even customers than requiring the
environment to adapt to it.
• Leaves behind highly reusable knowledge
– Uses wikis, blogs, social networks, and other Web 2.0
applications to enable low-barrier collaboration across
the enterprise
– Puts workers into central focus as contributors
– Case studies of early adoption consistently verifying
significant levels of productivity and innovation
Thursday, March 11, 2010
24. Potential E2.0
Benefits
Productivity Competitive Advantage
Knowledge Retention Modern Workplace
Information Discovery More Transparency
Business Agility Less Duplication
Cross-Pollination Better Communication
Fostering Innovation Cost Reduction
Thursday, March 11, 2010
25. Challenge:
The enterprise is not the Web
Enterprise
• We want to replicate the positive
aspects of Web 2.0 platforms in
the enterprise
• But our infrastructure is usually
not very Web-like, creating
significant impedance and diluted
results
• Requires augmentation and
adaptation to reproduce the same
or similar results
Thursday, March 11, 2010
27. Enterprise 2.0:
The bottom line
• Repeatable
• Low Risk
• Proven Benefit Ready for Wide
Adoption
• Rapid ROI
• Transunion Enterprise 2.0 case
study: $3.5M recoup in 5
months with $50K
investment: http://bit.ly/O74W
Thursday, March 11, 2010
28. Open Supply Chains
& Open Data
al so kn own
as APIs
Thursday, March 11, 2010
29. Open Supply Chains
with partner
communities
and open APIs
Key Point:
New online products simply aren’t released today
without building a partner community
Thursday, March 11, 2010
30. vs. :
The Platform Overtakes the Web Site
Thursday, March 11, 2010
31. “Platforming” Your
Business
• Requires opening the server-side to 3rd party
developers
• Allowing the construction of widgets and Web apps
offering some or of all of your functionality by
external partners
• Harnessing the innovation on the network
• Generating the greatest potential reach, competitive
lock-out, market share, and revenue
• This is live, not data files like at http://data.gov
Thursday, March 11, 2010
32. Open Supply Chains:
The bottom line
• Good repeatability
• Can be costly Strategic
• Unproven in Industry Play
certain industries
• Proven ROI
Thursday, March 11, 2010
35. What do online
communities do?
• Customers and workers find and connect with
each other based on a common, shared idea
• Socialize, communicate, and collaborate on
topics that they care about
• Share ideas, experiences, stories, suggestions, etc.
• Draw others in by word of mouth
• Becomes an ideal vehicle for collective
intelligence and peer production
Thursday, March 11, 2010
36. Marketplace Partner Customer
Community
Community Community
Community Management
support participation
Social Business
direction business
models
resources Enterprise 2.0 & Inter
net
Social Media ente
r prise
crossover crossover
Worker Community
Thursday, March 11, 2010
37. Online Community Management:
A Core Social Business Function
Brand Support
Brand Management Situation Management
Upgrades and Improvements
Capture Brand Feedback
Software Know-How
Advertising & Listen/Join Conversation
Feature Selection Platform Management
Marketing Marketing Analysis
Priority & Schedule Impact Reporting
Management Ad Rotation
Documentation Project Management
Staff Development Recruiting
Incorporation of Team Building
Experience
Product Management Staff Training
Product Selection
Business Planning Budgeting
Outreach
Goal Definition
Events
Customer Management Business Alignment
Incentives Community
Control/Management
Issue Management Management
Moderation & Rule
Networking Enforcement
Professional Development Elicit Participation
Identification of Best
Content
Practices Rewards & Incentives
Management
Attend Trade Events Content Plan
Research & Insight
Content “Gardening”
Thursday, March 11, 2010
38. Online Community:
The bottom line
• Medium repeatability
• Can be costly
• Proven ROI
• Dramatically lower
customer support
Ready for Wide
Adoption
costs (10-30%)
• Better Customer
Satisfaction
• New customer
relationship
Thursday, March 11, 2010
40. Network-Driven
Open Collaboration
Breeding New
Business Strategies
Methods:
Open Source
Open
network effects
Business
Methods
Open Data peer production
• Richest, most up-to-date, and
dynamic products & services
pull instead of
push
• Lowest cost of production
UGC & Open • Greatest degree of innovation
and diversity
Content self-service • Ownership, control, and
monetization challenges
Enterprise 2.0
Online Community
Thursday, March 11, 2010
41. Product
Development 2.0
Thursday, March 11, 2010
43. Open business models are
transforming the market
• Product Development
• Marketing and Advertising
• Operations
• Customer Service
Thursday, March 11, 2010
45. Sourcing Models
internally open
outsourced
sourced sourced
direct peer production,
Methods assignment
subcontracting,
crowdsourcing,
consortiums
open platforms
Participants staff contractors,
anyone
partners
Central Control high
medium to high medium to low
Predictability best good lowest
Richness
adequate medium high
of Outcome
corporation, open source
Legal structure contracts,
copyrights, licenses, Creative
& IP protection charters, etc.
patents, etc. Commons, etc.
Thursday, March 11, 2010
46. Open Business Models:
The bottom line
• Medium repeatability
• Medium costs
• Significant cultural
changes required
Ideal for Early
Adopters
• ROI and control
challenges
• Major strategic benefits
Thursday, March 11, 2010
47. How do we
re-imagine our
organizations for
the 21st century?
Thursday, March 11, 2010
48. What Works And Why
• Network Effects By Default
• Turning Business Processes Social
• Partnering with the Network
• Giving Up Non-Essential Control
• Growing Cumulative Social Capital
• Building on the Shoulders of Giants
Thursday, March 11, 2010
49. Challenges to Transitioning to
New Social Business Models
• Innovator’s Dilemma
• “How do we disrupt ourselves
before our competition does?”
• Not-Invented Here
• Overly fearful of failure
• Deeply ingrained classical business culture
• Low level of 2.0 literacy
Thursday, March 11, 2010
50. Key Lesson:
We now have a
fundamentally new and
better set of lenses through
which to look at creating
business value...
Thursday, March 11, 2010
51. It’s time to change
our DNA
• Moving from the 20th century towards
21st century businesses
• Deeply understanding the network and its
profound potential for creating growth and
building value
• Putting 2.0 into the core of our modern
government design
Thursday, March 11, 2010
52. The rewards are
considerable
• A business world that is sustainable
• Successful transition to a rapid evolving
new business landscape
• Attaining of better and new type
relationships with citizens and workers
• Resilience to future change and ongoing
evolution of business, culture, and society
Thursday, March 11, 2010
53. Discussion
Slides:
dion@hinchcliffeandco.com
Thursday, March 11, 2010