Social business - Looking beyond Social Media and Enterprise 2.0 to real ROI

Social Business:Looking Beyond Social Media and Enterprise2.0 to Real ROIby Dion Hinchcliffe (@dhinchcliffe)

IntroductionDion 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 • http://dachisgroup.com • mailto:dion.hinchcliffe@dachisgroup.com• Web 2.0 University • http://web20university.com• : @dhinchcliffe 2

Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO RoundtableThe realization has hit “Social networking is the most signiﬁcant business development of 2010, topping the resurgence of the U.S. automobile industry.” - Bill George, Professor of Management Practice at Harvard Business School® 2010 Dachis Group. Confidential and Proprietary 3

Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO RoundtableSocial is now how we function today® 2010 Dachis Group. Confidential and Proprietary 4

Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO Roundtable The drivers for next-generation computing• 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- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO RoundtableIn this new marketplace, the opportunitiesare unlimited • All your associates • 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 access them® 2010 Dachis Group. Confidential and Proprietary

Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO RoundtableA key source of experience:The 2.0 Adoption Council • Over 250 large firms • Practitioners of Social Business and Enterprise 2.0 • Only companies with over 5,000 employees • Our research and insight into these hundreds of firms drive best practices and lessons learned • Participants must share their data • We are now publishing reports of council memberʼs business benefits® 2010 Dachis Group. Confidential and Proprietary

Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO RoundtableHundreds of public social networks...® 2010 Dachis Group. Confidential and Proprietary ...channel fragmentation 8

Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO RoundtableDozens of internal social channels• E-mail• Text messaging• Instant messaging• Meetings and conference calls• Enterprise 2.0• Social CMS• Knowledge management• Intranets• Online communities® 2010 Dachis Group. Confidential and Proprietary 9

Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO Roundtable So the World Has Have Moved On... And Companies Have Fallen Behind • Mobile • Social • New Digital Channels • Approximately 1 Billion “Digital Natives” Have Migrated In the Last 3 Years® 2010 Dachis Group. Confidential and Proprietary

Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO RoundtableShow Me The Value:Latest B2B social 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 ® 2010 Dachis Group. Confidential and Proprietary

Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO Roundtable Using Traditional Means, Companies Canʼt Keep Up  For companies, real time is not fast enough, Example: Motrin responded to angry moms within 24 hours – it was too slow.  Companies are unable to scale to meet the needs of social, Example: Dell and ComcastCares community managers cannot scale to meet all customer interactions  Customers don’t care what department you’re in. They just want their issues resolved.® 2010 Dachis Group. Confidential and Proprietary

Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO Roundtable Companies Know The Problem Will Only Get Worse Outdated frameworks and operational strategies 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 tools 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.® 2010 Dachis Group. Confidential and Proprietary

Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO Roundtable What do new social business channels really provide? • Radical reductions in cost of doing business (i.e. 30% reduced support costs) • Signiﬁcant improvements in customer sat scores • Real-time response to customer needs & critical situations • Access to deep pools of innovation • Revenue growth (increased top-of-line sales and service numbers) See Case Studies Section® 2010 Dachis Group. Confidential and Proprietary

Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO Roundtable Knowledge is increasingly visible in social channelsIt no longer “evaporates” or is hidden ® 2010 Dachis Group. Confidential and Proprietary 15

Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO RoundtableAnd we now realize itʼs part of a single continuum... Social Busine enterp rise ec osyste m ss net t ane r Inte extr customers + world net business partners a intr Web 2.0 integr ated vision Crowdsourcing workers Social Media Social CRM Online Communities Enterprise 2.0® 2010 Dachis Group. Confidential and Proprietary 16

Dachis Group | 2011Social business design applied® 2011 Dachis Group. Confidential and Proprietary 17

Dachis Group | 2011 Why Social Business Design? Improved = & + Emergent Outcomes•Adaptable business practices •Cost savings and efﬁciencies•Improved collaborative processes •Informed social marketing strategies•Customer growth, retention and sustainability •New product & service offerings/innovations•Expansion into new markets ® 2011 Dachis Group. Confidential and Proprietary 18

Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO RoundtableThe Social Business Landscape in 2010

Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO RoundtableThe Social Business Platform Landscape

Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO Roundtable Collective Intelligence “The creation of typed signals by listening to social ecosystems, resulting in the ability to tap into collective intelligence as well as aggregate, mine, and predict outcomes.”Getting value from what’s observable ® 2010 Dachis Group. Confidential and Proprietary 21

Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO RoundtableBut is all this observable information valuable? story® 2010 Dachis Group. Confidential and Proprietary 22

Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO RoundtableObservable work: The issues• Knowledge workers currently spend 20% of their time looking for the information they need to do their jobs (1 day a week) Source: Forrester• Approximately 42% of the economies of developed nations is “tacit interactions”, meaning complex collaborative problem solving carried out by knowledge workers. Source: McKinsey• Organizations that adopt social tools widely, after several years, see the amount of observable work skyrocket, becoming a management and search concern. Source: Jive• Between 80%-90% of the information that organizations have spend hundreds of billions collecting over the last 30 years in IT systems is inaccessible by most workers. Source: Various including Gartner, IDC, others® 2010 Dachis Group. Confidential and Proprietary 23

Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO Roundtable“Information overload is not the problem. Itʼsfilter failure.” - Clay Shirky® 2010 Dachis Group. Confidential and Proprietary 24

Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO RoundtableOur information landscape is now measured inmillions of exabytes 1 EB = 1,000,000,000,000,000,000 B = 1018 bytes = 1 billion gigabytes = 1 million terabytes• Social ecosystems are largely responsible.• The good news: Information is no longer submerged.• However, it is increasingly becoming an onslaught. Visible Knowledge Us® 2010 Dachis Group. Confidential and Proprietary 25

Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO Roundtable Overcoming the fact that the enterprise is not the Web• We want to replicate the positive aspects of consumer social 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 • Linkability, SEO of social knowledge, federated search, etc.

Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO RoundtableComparing analytics and search Seeing the Finding the shape of the needle haystack analytics versus search® 2010 Dachis Group. Confidential and Proprietary 27

Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO RoundtableSignificant Recent Examples • TransUnion - 50x ROI in high value scenarios • IBM - 29% reduction in e- mail volume after making social their primary interaction channel • Siemens - Eliminating e- mail entirely • Atos Origin - Pledge to be zero e-mail in 3 years • Alcatel-Lucent - Over 10,000 active users in just a few month since 2010 launch

Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO RoundtableTransunion• The ﬁrm: - Founded in 1968 - 3,000 workers in 25 countries - Revenue: Closely held - 50,000 corporate customers - Top credit rating firm• Discovered most employees used social tools today• Objective: Improve IT performance to the business, make sure the businessʼs work “didnʼt get too public.”• CTO initiated a company-wide social collaboration strategy® 2011 Dachis Group. Confidential and Proprietary

Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO RoundtableTransUnion and Social Collaboration Realization TransUnion realized it was time to provide an internal TransUnion conducted a survey: social collaboration tool when Step 1 people started asking for About 2,000 of its 2,700 permission to set up employees were already using employee groups inside some kind of public social Facebook networking tool. Demand® 2011 Dachis Group. Confidential and Proprietary

Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO RoundtableTransUnion and Social Collaboration Challenges TransUnion CTO TransUnion deals in John Parkinson: credit reports: He believed it would meet a Step 2 It wasn’t keen on need for employees, and, just as employees gathering to importantly, “I wanted to defend talk shop on the public against too much of this going on Web on the Internet,” he says. Managing Change, Instead of Being Managed By It® 2011 Dachis Group. Confidential and Proprietary

Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO RoundtableTransUnion and Social Collaboration Strategic Collaboration Focus on what The CTO decided to most work is, informal. tackle both social Step 3 computing and collaboration using a Existing systems of record used cohesive strategy to for their strengths, while drive business goals. ad hoc collaboration is supported and harnessed. Focus on how people really work together® 2011 Dachis Group. Confidential and Proprietary

Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO RoundtableTransUnion and Social Collaboration Solution: Social Software Associates can tune their settings • They created a program to to allow all questions or allow only give associates user proﬁles, a wiki capability, those from certain groups or and instant messaging people. internally. Step 4 • Perhaps most powerfully, employees can use it to ask TransUnion is applying usage data to learn who’s best at solving questions of a broad group. business problems raised in the • Associates can tune their social network. settings to allow all questions or allow only Parkinson says. “Now we can see those from certain groups powerful patterns emerge, to see or people. who’s following whom, who’s the good source of questions, who Carefully situated offers good answers” to support business outcomes® 2011 Dachis Group. Confidential and Proprietary

Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO RoundtableTransUnion and Social Collaboration Results The savings come out of groups • Associates are finding that would have historically said, information faster ‘Buy me more hardware’ or ‘I • Collaborating and meeting need a new software tool’ or ‘I challenges with better need more processing capacity.’ solutions • $2.5 million in quantifiable Step 5 savings and fewer staff “They figured out how to use general purpose collaboration to • $50K investment on solve their problems without software and 3x on rollout • Current partial rollout will asking for any of those things,” create $5 million to $8 says Parkinson. million in savings per year Expecting lower savings rate but much later savings as software is used in less performance critical Productivity has been areas. the biggest benefit® 2011 Dachis Group. Confidential and Proprietary

Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO Roundtable value® 2010 Dachis Group. Confidential and Proprietary 35

Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO RoundtableEntering a new era of information Take Away: We donʼt need to directly see all the information, we need to see the “shadows” it makes.® 2010 Dachis Group. Confidential and Proprietary 36

Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO RoundtableHow do we get to the third wave?• Cloud computing? SOA?• Open APIs and supply chains?• Decentralized IT?• Better data warehouses?• Improved search engines?• Recommendation systems?• Business re-engineering? The Goal: Breaking down• How about analytics? information silos and obscured information inside and outside of our organizations to get to value® 2010 Dachis Group. Confidential and Proprietary 37

Aspects of Digital StrategyAnd Their Relation To Social and Mobility Security Content Management not normally Ops App part of Intranet Strategy overlap Store digital strategy Business Apps Crowdsourcing SMS Inﬂuencer Engagement Analytics Podcasting/Online Video Demand Generation SEM Digital Branding E-mail Campaigns Digital Marketing Social Media Customer Marketing Online Digital Apps Ads Communities Social CRM Customer Care & CRM Consumer SNS Apps SEO Customer Microsites Strategy Social Sales E-Commerce Media Business Partner Support Mobile Content Enablement Afﬁliate Portal/ Social Supply Communities Chains/Open APIs Web Presence Innovation Mobility Management Platform Support Workforce Location Mobile/Social Delivery Touchpoint (most social experiences will be mobile) Collaboration Integration Mobility Strategy Social Strategy

Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO Roundtable Significant Motivation Exists • 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® 2010 Dachis Group. Confidential and Proprietary

Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO RoundtableDetermining the ROI of SocialComputing • Project costs tend to be lower than classical IT efforts (Example: Transunion, $50K to reap $2M+) • ROI is hard to measure because of cause and effect chains • But when I is low, R is easier to reach® 2010 Dachis Group. Confidential and Proprietary

Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO RoundtableDistributed Value® 2010 Dachis Group. Confidential and Proprietary

Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO RoundtableRecap: Aspects of Social Business® 2010 Dachis Group. Confidential and Proprietary

Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO Roundtable Other key strategies of social computing • “One search engine to rule them all” • Investment in collaborative literacy • Measure your KPIs regularly before and during deployment • Two community managers from the outset • Throw your old intranet away • Federation is the key to adoption and success® 2010 Dachis Group. Confidential and Proprietary

Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO RoundtableThe Future of Social Business ROI • Weʼll move beyond conﬂating social listening and engagement with analytics • The Google of social analytics will arrive - It will be free, it will be multi-channel, and it will allow us to see more of the shadows than ever before • There will continue to be many niche tools but it will ultimately look like the search industry does today • Enterprises will be largely left out of the online world of social analytics for internal uses - But for companies that want to, they will finally “know what they know.” • Business intelligence tools will become better at social analytics. • We will know weʼve gotten there when social analytics tells us why, not just what - Taking on previously unconquerable business challenges® 2010 Dachis Group. Confidential and Proprietary

Social business - Looking beyond Social Media and Enterprise 2.0 to real ROI

by Dion Hinchcliffe on Feb 24, 2011

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Social business - Looking beyond Social Media and Enterprise 2.0 to real ROI — Presentation Transcript

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