2008 T
2008 TRIBALIZATION OF BUSINESS STUDY

  How to Achieve Transformational Change 
 through Communities and Social Net...
A S
A STUDY PRODUCED BY:


Deloitte (www.deloitte.com) 
Beeline Labs (www.beelinelabs.com)
Society for New Communications ...
THE FINDINGS IN THIS PRESENTATION ARE BASED ON SURVEYS OF OVER 140 COMPANY OFFICIALS
                           WHO ACTIVE...
OVERVIEW:


                        WHAT’S THIS TRIBAL THING ALL ABOUT?

                 WHAT ARE THE MOTIVATIONS ALLOWIN...
WHAT’S THIS TRIBAL THING ALL ABOUT?




 Tribalism is the very first social system that human beings ever 
  lived in, and...
THE MOTIVATIONS ALLOWING THIS TO WORK…



                 People want to connect with people
                 People want...
TOP USAGE SCENARIOS:



                                            Customer service
  Idea generation
  Id         ti    ...
TOP BUSINESS OBJECTIVES:




       Reduce market research costs
       Reduce market research costs

              Bring ...
WHY ARE COMPANIES SETTING UP COMMUNITIES?




       Speed of innovation – extending the edges of the organization

      ...
WHO’S IN CHARGE?




          Sales
          Employee communications
                                         Product de...
ORGANIZATIONAL TRANSFORMATION…




You can start communities without changing the way you work, but successful 
          ...
THE CHANGING CMO ROLE…




          Is the role of the CMO about to dramatically change?


    Chief Community Officer – ...
Measuring progress and success – web analytics
70%
60%
50%
40%
30%
20%
10%
0%




                                   DISCO...
Measuring progress and success ‐ business measures
60%

50%

40%

30%

20%

10%

0%
MEASURING PROGRESS AND SUCCESS – QUALITATIVE




                Tonality                             Software downloads

...
MEASURING PROGRESS AND SUCCESS…



The importance to measure the impact on business processes the same way as those 
     ...
Community features contributing the most to effectiveness
60%

50%

40%

30%

20%

10%

0%
The biggest obstacles to making communities work
60%

50%

40%

30%

20%

10%

0%




       Could lead to premature
     ...
OOPS – IT WORKS…




                 Reach of Word of Mouth for free
  Advertising Revenue
            g               Kn...
WHAT’S GOING ON HERE?


         The more CONTENT you have the more MEMBERS you will get.

          h             S     h...
AND OF COURSE…



      The Technology Infrastructure of the community is important
      The Technology Infrastructure of...
POTENTIAL COMMUNITY INHIBITORS… 



                              Incentives

                          Corporate culture
...
COMMUNITY BEST AND WORST PRACTICES… 



              BEST                                WORST

      Clear goals + purpo...
CAN YOU BUILD COMMUNITIES WITH PREDICTABLE SUCCESS?



    Is the focus hitting a pain, interest that people need help, wa...
OTHER INTERESTING FINDINGS…



 Integration of the community with existing public communities – Facebook, twitter
     g  ...
SOME EARLY PREDICTIONS…



          Communities will have a huge impact on organizational change
                        ...
CONCLUSION…



              Communities can be build with predictable success
                                           ...
QUESTIONS?



                             Contact
                    francois@beelinelabs.com
                      emor...
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2008 Tribalization Of Business Study

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Updated presentation as presented at the Community 2.0 Conference in Las Vegas in May 08.

Email me to get access to the latest study results @ francois [at] beelinelabs.com

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2008 Tribalization Of Business Study

  1. 1. 2008 T 2008 TRIBALIZATION OF BUSINESS STUDY How to Achieve Transformational Change  through Communities and Social Networks
  2. 2. A S A STUDY PRODUCED BY: Deloitte (www.deloitte.com)  Beeline Labs (www.beelinelabs.com) Society for New Communications Research (www.sncr.org)  Society for New Communications Research (www.sncr.org)
  3. 3. THE FINDINGS IN THIS PRESENTATION ARE BASED ON SURVEYS OF OVER 140 COMPANY OFFICIALS WHO ACTIVELY USE COMMUNITIES THE RESULTS ARE PRELIMINARY AND MAY CHANGE AS THE STUDY PROGRESSES
  4. 4. OVERVIEW: WHAT’S THIS TRIBAL THING ALL ABOUT? WHAT ARE THE MOTIVATIONS ALLOWING THIS TO WORK? WHAT ARE COMPANIES USING THEM FOR? WHO’S IN CHARGE – WHAT ARE THE ORGANIZATIONAL IMPLICATIONS? HOW ARE COMPANIES MEASURING SUCCESS? WHAT MAKES THEM SUCCESSFUL? WHAT ARE THE INHIBITORS + BEST AND WORST PRACTICES? CAN YOU BUILD COMMUNITIES WITH ANY DEGREE OF PREDICTABILITY?
  5. 5. WHAT’S THIS TRIBAL THING ALL ABOUT? Tribalism is the very first social system that human beings ever  lived in, and it has lasted much longer than any other kind of  lived in and it has lasted much longer than any other kind of society to date.  (Wikipedia)
  6. 6. THE MOTIVATIONS ALLOWING THIS TO WORK… People want to connect with people People want to connect with people People want to help and be helped People operate either in a SOCIAL framework  or a MARKET framework
  7. 7. TOP USAGE SCENARIOS: Customer service Idea generation Id ti Co‐innovation Amplifying Word of Mouth New Product Development Reputation management Product testing CANARY IN THE COALMINE Market research Developer relations Public relations LONG TAIL SALES Employee communications General Marketing
  8. 8. TOP BUSINESS OBJECTIVES: Reduce market research costs Reduce market research costs Bring outside ideas into the organization faster Generate word of mouth Improve PR effectiveness Increase customer loyalty Reduce customer support cost Decrease customer acquisition cost Decrease customer acquisition cost Increase brand awareness Increase new product success ratios
  9. 9. WHY ARE COMPANIES SETTING UP COMMUNITIES? Speed of innovation – extending the edges of the organization Learning organization Reducing cost Building trusted relations  Transformational power and game‐changing nature of communities Transformational power and game changing nature of communities
  10. 10. WHO’S IN CHARGE? Sales Employee communications Product development MARKETING IT Public Relations R&D Finance Customer service
  11. 11. ORGANIZATIONAL TRANSFORMATION… You can start communities without changing the way you work, but successful  communities will invariably transform your organizations… New roles New career paths New career paths New business processes ‐ NEW ENERGY ‐
  12. 12. THE CHANGING CMO ROLE… Is the role of the CMO about to dramatically change? Chief Community Officer – Representing the Voice of the Customer or Doomed to Irrelevancy?
  13. 13. Measuring progress and success – web analytics 70% 60% 50% 40% 30% 20% 10% 0% DISCONNECT: Not in support of any goal…
  14. 14. Measuring progress and success ‐ business measures 60% 50% 40% 30% 20% 10% 0%
  15. 15. MEASURING PROGRESS AND SUCCESS – QUALITATIVE Tonality Software downloads Sustainability engagement Sentiment Activity levels Participation rate Impact on sales Impact on cost Growth Amount of learning Anecdotal stories 
  16. 16. MEASURING PROGRESS AND SUCCESS… The importance to measure the impact on business processes the same way as those  p p p y business processes are being measured today The importance of metrics on behavior Beware of rear‐view mirror effects The importance of stories
  17. 17. Community features contributing the most to effectiveness 60% 50% 40% 30% 20% 10% 0%
  18. 18. The biggest obstacles to making communities work 60% 50% 40% 30% 20% 10% 0% Could lead to premature shutdown of community
  19. 19. OOPS – IT WORKS… Reach of Word of Mouth for free Advertising Revenue g Knowledge about customers Knowledge about customers Lots of active users Greater visibility Ideas generated by communities Id t db iti That our market really will tell us what they want ‐‐ if we just ask How happy customers are with the outreach
  20. 20. WHAT’S GOING ON HERE? The more CONTENT you have the more MEMBERS you will get. h S h The more MEMBERS you have the more CONTENT you will get. h CO ill The better you match CONTENT and MEMBERS to MEMBER PROFILES the more  MEMBERS and CONTENT you will get. y g The easier it is to do TRANSACTIONS the more MEMBERS you will attract. THOSE PILLARS CREATE THE DYNAMICS OF INCREASING RETURNS WHICH HELP COMMUNITIES DELIVER GAME CHANGING RESULTS
  21. 21. AND OF COURSE… The Technology Infrastructure of the community is important The Technology Infrastructure of the community is important The Social Infrastructure of the community is MORE important BUT THEY ARE NOT AFFECTING THE ECONOMICS OF INCREASING RETURNS THAT DELIVER GAME CHANGING RESULTS
  22. 22. POTENTIAL COMMUNITY INHIBITORS…  Incentives Corporate culture Lack of physical component Lack of physical component Community moderator profiles Community social infrastructure
  23. 23. COMMUNITY BEST AND WORST PRACTICES…  BEST WORST Clear goals + purpose Start with technology Right talent Right talent Marketing  campaign Marketing “campaign” Commitment + time Mixing business/consumer motives  Topic engenders passion No facilitation Social + communal Metrics vs. business measures
  24. 24. CAN YOU BUILD COMMUNITIES WITH PREDICTABLE SUCCESS? Is the focus hitting a pain, interest that people need help, want to give help? g p , p p p, g p Understand the importance of the size of your addressable community If you do not have critical mass – invest in professionally developed content If you do not have critical mass invest in professionally developed content If your community would not succeed in a discussion group – it will not work YOU MIGHT GIVE UP SOME OF THE EFFECTS OF THE DYNAMICS OF INCREASING RETURNS BUT STILL GAIN MORE THAN BY USING INTERRUPT TECHNIQUES
  25. 25. OTHER INTERESTING FINDINGS… Integration of the community with existing public communities – Facebook, twitter g y gp , The importance  of time‐based events – innovation jams, events, etc. There are differences in community behavior – mobs, swarms, hives, tourists, fans There are differences in community behavior mobs swarms hives tourists fans
  26. 26. SOME EARLY PREDICTIONS… Communities will have a huge impact on organizational change g p g g Communities will transform the marketing organization and change the CMO role A disconnect between metrics and goals and between community goals and business  A disconnect between metrics and goals and between community goals and business goals will lead to many failures
  27. 27. CONCLUSION… Communities can be build with predictable success p Communities are transformational If done properly, the benefits are not level‐setting – If done properly the benefits are not level setting they are GAME‐CHANGING
  28. 28. QUESTIONS? Contact francois@beelinelabs.com emoran@deloitte.com Project web site Project web site http://www.communityeffectiveness.com Blog http://www.emergencemarketing.com
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