Industry Reference: Social Business Stack for 2011

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For NVCA Wine Tasting and State of the Industry
November 4, 2010
Jeremiah Owyang
Industry Analyst, Altimeter Group
Industry Reference:The Social Business Stack for 2011

This is only a part of the overall presentation that was presented to over 100 Silicon Valley VCs on Nov 4th, 2010
I’ve removed forecast data (enterprise buyers in social business, 2011) as it will be published in upcoming Altimeter Reports.
Jeremiah Owyang, Industry Analyst
Research Note
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Social media is no longer the latest “shiny object.” 79% of corporations are undertaking social media efforts –yet while disruption is high, budgets are miniscule, although they are immediate pockets of opportunity for the right investors

Source:http://www.burson-marsteller.com/Innovation_and_insights/blogs_and_podcasts/BM_Blog/Lists/Posts/Post.aspx?ID=160

Image by Pieter Musterdused with Attribution as directed by Creative Commons http://www.flickr.com/photos/piet_musterd/1858568495
The Social Business Stack
© 2010 Altimeter Group

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The social software space has ballooned into a disparate set of technologies, data types, and over 1000 vendors confusing buyers. Despite the explosion of innovation, expect a “Social Business Suite”to appear that consolidates many of these features for enterprise buyers.

The Full Social Business Stack 7 Categories, 18 discrete Classes
Source: Altimeter Group, 2010
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The Stack: 7 Categories of Social Business Software and Service
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Brand monitoring:
Over 145 known vendors, including Radian6, Alterian, Scout Labs, Visible Technologies, Cymfony
Social Analytics/Insights:
Crimson Hexagon, Crowd Factory, SAS, Oracle, Sap, Qlikview
Monitoring and Analytics
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Social Inbox Aggregation:
Chatter, SocialText, Gist
Identity Brokers:
Gigya and Janrain
Aggregation and Curation Solutions:
Disqus, Echo
Aggregation
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Applications in Social Networks:
Over a 1 million apps in Facebook alone, while other social networks like LinkedIn and Twitter experiment with developers
Social Media Management Systems:
CoTweet, HootSuite, Sprinklr, Objective Marketer, Expion, SpredFast
Sharing Tools:
Has become a feature of other systems, also Sharethis and Addthis
Publication
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Community Platforms:
Awareness, Mzinga, Jive, Telligent, Ingage Networks, Kickapps, Pluck, Lithium, Liveworld
Collaboration Platforms:
Sharepoint, Jive, Telligent, Atlassian, SocialText, PBWorks, and recent entrant BroadVision’sClearvale
Enterprise Microblogging Platforms:
SocialCast, Yammer, Gist SocialText, Chatter
Blogging Platforms:
Wordpress, SixApart, Squarespace, Google’s Blogspot
Innovation Platforms:
Salesforce Ideas, UserVoice and open source Pligg
Social Commerce Platforms:
Bazaarvoice, Zuberance, Alvendia, ShopIgniter, Wildfire Interactive
Social Platforms
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Data Layer:
Data brokers are emerging (brand monitoring is harvesting data, SSO) and reputation identifiers (Gist,Rapportive,Klout)
Social CRM:
Many vendors claim Social CRM, yet we’ve yet to see a single vendor that spans the gaps across all the use cases
Infrastructure
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The 18 Use Cases of Social CRM
1. Social Customer Insights: The 5M’s
Marketing
Sales
Service & Support
Innovation
Collaboration
CustomerExperience
2. Social Marketing Insights
6. Social Sales Insights
9. Social Support Insights
12. Innovations Insights
14. Collaboration Insights
17. Seamless Customer Experience
3. Rapid Social Marketing Response
7. Rapid Social Sales Response
10. Rapid Social Response
13.Crowdsourced R&D
15. Enterprise Collaboration
18. VIP Experience
4. Social Campaign Tracking
8.Proactive Social Lead Generation
11. Peer-to-Peer Unpaid Armies
16. ExtendedCollaboration
5. Social Event Management
Attribution-Noncommercial-Share Alike 3.0 United States

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Agency (digital)
Agency (specialized)
Consulting: 1000s of ‘experts’
Research and Analysis
Advocacy Programs, blogger networks
Peer groups, conferences, and education
Services
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Image by Slowtronused with Attribution as directed by Creative Commons http://www.flickr.com/photos/fuckr/91530309
Enterprise Buyer Behaviors

For Internal Goals In 2011, Social Strategists will focus on Measurement of ROI
Source: Survey of Corporate Social Strategists, Altimeter Group, November 2010
We asked 140 Corporate Social Strategists: “What internal social strategy objectives will you focus most on 2011?”

Analyst Notes: 2011 Internal Goals
The previous slide is only partial data of Altimeter’s research, respondents were asked to select three top objectives.
Most companies are continuing to struggle with measuring this amorphous beast due variation on data types, distributed nature, and cultural resistance.
Struggling to make sense of how to react, companies are undergoing a cultural change and are continuing to focus on internal education and organizing the company
In summary, companies are still focus on getting internal programs in order --expect stronger go to market activities in 2012.
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Externally, will focus on integrating social onto the corporate website
Source: Survey of Corporate Social Strategists, Altimeter Group, November 2010
We asked 140 Corporate Social Strategists: “What external social strategy objectives will you focus most on 2011?”

Analyst Notes: 2011 External Goals
The previous slide is only partial data of Altimeter’s research, respondents were asked to select three top objectives.
Additionally, prepare for integration (46%) of existing social features such as surfacing the contextually relevant content from private branded communities. Expect first steps to be campaign orientated.
Prepare for aggregation of socially created content on corporate websites. Yet despite the desire –most brands—not ready to take on negative content on corporate website.
Most companies still focused on traditional marketing tactics in social channels, hence the focus on Dialog at (43%)
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Image by Slowtronused with Attribution as directed by Creative Commons http://www.flickr.com/photos/fuckr/91530309
Investment Opportunities

Brand Monitoring: 145 vendors, commodity technologies
They must quickly move beyond measuring engagement data to social analytics
Community Platforms: Stable, yet 125 vendors, commodity technology
They must move to SCRM (starting with brand monitoring), website integration or SMMS quickly.
Any standalone trilobite who doesn’t have multiple plays in the stack
They must connect across the stack –or become irrelevant as buyers will require a suite.
Saturated and Stable Markets –and what they should do about it.
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1) Companies that offer solutions to enterprises –including services.
Tip: Services can be monetized, sell as solution bundle, and know where to outsource (community management, raw analytics) and create education repeatables –not one-offs.
Vendors that automate services like WOM, community management, manual measurement, and standardized education.
Investment Opportunity #1
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2) Vendors that can measure –but beyond engagement data and can tie to social commerce
Most important metrics: Revenue increase, CSAT, Advocacy
Pre built templates that can funnel engagement metrics into business metrics
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3) Social Media Management Systems:
Companies that manage complex social networking accounts –and provide analytics
Publishing isn’t enough, seek workflow, recommendations, and then analytics
Expect this space to be ripe for M&A as community platforms and email marketing platforms must quickly become relevant in this arena.
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4) Aggregation that connects back to the corporate website
Seek vendors that offer intelligent curation beyond a river of data
Aggregation quickly will move to ‘social context’ and web pages will be assembled on the fly
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5) SCRM suites not ripe in 2011 from buyers–but invest in underlying infrastructure of companies who do matching and automated workflow
The market doesn’t know it needs scalable systems for social business --yet
But as they will struggle to scale –IT will finally come in to save the day.
The CIO becomes relevant in social business by providing underpinning infrastructure that marketers were unable to plan for.
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THANK YOU
Jeremiah Owyang
jeremiah@altimetergroup.com
web-strategist.com/blog
Twitter: jowyang
With assistance from Christine Tran, Researcher

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ABOUT US
Altimeter Group is a Silicon Valley-based research and
advisory firm that provides companies with a pragmatic
approach to disruptive technologies. We have four areas of
focus: Leadership and Management, Customer Strategy,
Enterprise Strategy, and Innovation and Design.
Visit us at http://www.altimetergroup.com or contact info@altimetergroup.com.

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Industry Reference: Social Business Stack for 2011

by Jeremiah Owyang on Nov 05, 2010

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Industry Reference: Social Business Stack for 2011 — Presentation Transcript