0
1<br />LeWeb Keynote<br />December 9, 2010<br />Jeremiah Owyang<br />Industry Analyst<br />Social Business Forecast: <br /...
2<br />What happened in 2010<br />What’s going to happen in 2011<br />What companies should do about it<br />Agenda:<br />
Image by Slowtronused with Attribution as directed by Creative Commons http://www.flickr.com/photos/fuckr/91530309<br />20...
Just 2 years in corporate social business, 2010 was the year of formation.<br />
Most Social Media programs report under Marketing or Corporate Communications<br />
Companies organize for social in 5 ways<br />
7<br />DECENTRALIZED<br /><ul><li>Organic growth
Authentic
Experimental
Not coordinated
e.g. Sun</li></li></ul><li>8<br />CENTRALIZED<br /><ul><li>One department controls all efforts
Consistent
May not be as authentic
e.g. Ford, Regulated</li></li></ul><li>9<br />HUB AND SPOKE<br /><ul><li>One hub sets rules and procedures
Business units undertake own efforts
Spreads widely around the org
Takes time
e.g. Red Cross</li></li></ul><li>10<br />MULTIPLE HUB AND SPOKE <br />OR “DANEDELION”<br /><ul><li>Similar to Coordinated ...
e.g. HP, Microsoft, Tech Giants</li></li></ul><li>11<br />HOLISTIC OR “HONEYCOMB”<br /><ul><li>Each employee is empowered
Unlike Organic, employees are organized
e.g. Twelpforce, Zappos</li></li></ul><li>Most companies organize into Hub & Spoke or Centralized<br />12<br />
Maturity drives Total Budget, Team Size, and Org Model<br />Source: Survey of Corporate Social Strategists, Altimeter Grou...
Maturity drives Total Budget, Team Size, and Org Model<br />Source: Survey of Corporate Social Strategists, Altimeter Grou...
Maturity drives Total Budget, Team Size, and Org Model<br />Source: Survey of Corporate Social Strategists, Altimeter Grou...
Maturity drives Total Budget, Team Size, and Org Model<br />Source: Survey of Corporate Social Strategists, Altimeter Grou...
Image by ronni44052 used with Attribution as directed by Creative http://www.flickr.com/photos/ronnie44052/2730239605<br /...
2011 is the Year of Integration<br />
For Internal Goals In 2011, Social Strategists will focus on Measurement of ROI<br />Source: Survey of Corporate Social St...
Social Strategists struggle with relying on engagement data <br />We asked 140 Corporate Social Strategists: What measurem...
In External ‘Go to market’ a focus will be on integrating social onto the corporate website<br />Source: Survey of Corpora...
2010-2011: Adoption of Social Business programs<br />We asked 140 Corporate Social Strategists their budget for 12 social ...
2010-2011: Spending on Social Business programs<br />We asked 140 Corporate Social Strategists their budget for 12 social ...
2011 top spending by Company Maturity<br />Source: Survey of Corporate Social Strategists, Altimeter Group, November 2010<...
2011 top spending by Maturity<br />Source: Survey of Corporate Social Strategists, Altimeter Group, November 2010<br />A s...
2011 top spending by Maturity<br />Source: Survey of Corporate Social Strategists, Altimeter Group, November 2010<br />Tea...
2011 top spending by Maturity<br />Source: Survey of Corporate Social Strategists, Altimeter Group, November 2010<br />Exp...
Image by zetsonused with Attribution as directed by Creative Commons http://www.flickr.com/photos/zetson/254608875<br />Ho...
Invest in scalable social media programs<br />29<br />
Hire correctly (Gurus/Ninjas/Samurai need not apply) and properly train for scale<br />Integrate social media on the corpo...
Gurus, Ninjas, and Samurai need not apply<br />Hire a program manager rather than a social media “hot shot.”<br />Seek can...
2) Pragmatically integrate social media on the corporate website, then aggregate and curate <br />32<br />8. Seamless inte...
3) Invest in advertising that leverages social graph<br />Advertising is the second highest social business program spend ...
Invest in Advocacy programs – they scale<br />Research indicates a 5 step process<br />Example: Microsoft has @4000 MVPs w...
Upcoming SlideShare
Loading in...5
×

Keynote: Social Business Forecast: 2011 The Year of Integration

82,005

Published on

Research reveals focus on integration, staffing, advertising, and measurement.

Published in: Business
28 Comments
339 Likes
Statistics
Notes
No Downloads
Views
Total Views
82,005
On Slideshare
0
From Embeds
0
Number of Embeds
98
Actions
Shares
0
Downloads
4,522
Comments
28
Likes
339
Embeds 0
No embeds

No notes for slide

Transcript of "Keynote: Social Business Forecast: 2011 The Year of Integration"

  1. 1. 1<br />LeWeb Keynote<br />December 9, 2010<br />Jeremiah Owyang<br />Industry Analyst<br />Social Business Forecast: <br />2011 The Year of Integration<br />Research reveals focus on integration, staffing, advertising, and measurement.<br />
  2. 2. 2<br />What happened in 2010<br />What’s going to happen in 2011<br />What companies should do about it<br />Agenda:<br />
  3. 3. Image by Slowtronused with Attribution as directed by Creative Commons http://www.flickr.com/photos/fuckr/91530309<br />2010 Overview<br />© 2010 Altimeter Group<br />
  4. 4. Just 2 years in corporate social business, 2010 was the year of formation.<br />
  5. 5. Most Social Media programs report under Marketing or Corporate Communications<br />
  6. 6. Companies organize for social in 5 ways<br />
  7. 7. 7<br />DECENTRALIZED<br /><ul><li>Organic growth
  8. 8. Authentic
  9. 9. Experimental
  10. 10. Not coordinated
  11. 11. e.g. Sun</li></li></ul><li>8<br />CENTRALIZED<br /><ul><li>One department controls all efforts
  12. 12. Consistent
  13. 13. May not be as authentic
  14. 14. e.g. Ford, Regulated</li></li></ul><li>9<br />HUB AND SPOKE<br /><ul><li>One hub sets rules and procedures
  15. 15. Business units undertake own efforts
  16. 16. Spreads widely around the org
  17. 17. Takes time
  18. 18. e.g. Red Cross</li></li></ul><li>10<br />MULTIPLE HUB AND SPOKE <br />OR “DANEDELION”<br /><ul><li>Similar to Coordinated but across multiple brands and units
  19. 19. e.g. HP, Microsoft, Tech Giants</li></li></ul><li>11<br />HOLISTIC OR “HONEYCOMB”<br /><ul><li>Each employee is empowered
  20. 20. Unlike Organic, employees are organized
  21. 21. e.g. Twelpforce, Zappos</li></li></ul><li>Most companies organize into Hub & Spoke or Centralized<br />12<br />
  22. 22. Maturity drives Total Budget, Team Size, and Org Model<br />Source: Survey of Corporate Social Strategists, Altimeter Group, November 2010<br />We asked 140 Corporate Social Strategists their total strategy budget, number of full-time equivalent staff dedicated to social media, and organizational model:<br />
  23. 23. Maturity drives Total Budget, Team Size, and Org Model<br />Source: Survey of Corporate Social Strategists, Altimeter Group, November 2010<br />Corporations who are just getting started have miniscule budget and are significantly understaffed in a centralized team –this does not scale.<br />
  24. 24. Maturity drives Total Budget, Team Size, and Org Model<br />Source: Survey of Corporate Social Strategists, Altimeter Group, November 2010<br />Corporations who have formalized their programs have a cross-functional team that lead and serve many business units with a larger budget line–they may not deploy on their behalf.<br />
  25. 25. Maturity drives Total Budget, Team Size, and Org Model<br />Source: Survey of Corporate Social Strategists, Altimeter Group, November 2010<br />Mature and Advanced corporations have only slightly large budgets but involve many more across the company and are formed in Hub and Spoke, and often “Dandelion”<br />
  26. 26. Image by ronni44052 used with Attribution as directed by Creative http://www.flickr.com/photos/ronnie44052/2730239605<br />2011 Forecast<br />© 2010 Altimeter Group<br />
  27. 27. 2011 is the Year of Integration<br />
  28. 28. For Internal Goals In 2011, Social Strategists will focus on Measurement of ROI<br />Source: Survey of Corporate Social Strategists, Altimeter Group, November 2010<br />We asked 140 Corporate Social Strategists: “What internal social strategy objectives will you focus most on 2011?”<br />
  29. 29. Social Strategists struggle with relying on engagement data <br />We asked 140 Corporate Social Strategists: What measurements are most important to evaluating the success of your program? <br />Source: Survey of Corporate Social Strategists, Altimeter Group, November 2010<br />
  30. 30. In External ‘Go to market’ a focus will be on integrating social onto the corporate website<br />Source: Survey of Corporate Social Strategists, Altimeter Group, November 2010<br />We asked 140 Corporate Social Strategists: “What external social strategy objectives will you focus most on 2011?”<br />
  31. 31. 2010-2011: Adoption of Social Business programs<br />We asked 140 Corporate Social Strategists their budget for 12 social business programs in 2010, and projected increases/decreases in 2011 to calculate adoption forecast:<br />Source: Survey of Corporate Social Strategists, Altimeter Group, November 2010<br />
  32. 32. 2010-2011: Spending on Social Business programs<br />We asked 140 Corporate Social Strategists their budget for 12 social business programs in 2010, and projected increases/decreases in 2011 to calculate adoption forecast:<br />$278,000<br />$160,000 $129,000 $120,000 $108,000 $98,000 $90,000 $47,000 $47,000 $37,000 $23,000 $22,000 <br />Source: Survey of Corporate Social Strategists, Altimeter Group, November 2010<br />
  33. 33. 2011 top spending by Company Maturity<br />Source: Survey of Corporate Social Strategists, Altimeter Group, November 2010<br />We asked 140 Corporate Social Strategists their budget for 12 social business programs in 2010, and projected increases/decreases in 2011 to calculate top spending by Company Maturity in 2011:<br />
  34. 34. 2011 top spending by Maturity<br />Source: Survey of Corporate Social Strategists, Altimeter Group, November 2010<br />A small compartment of staff will be hired, scalable branded communities, and reliance on agencies which could help with monitoring.<br />
  35. 35. 2011 top spending by Maturity<br />Source: Survey of Corporate Social Strategists, Altimeter Group, November 2010<br />Teams will continue to grow, but likely stymied by true ‘engagement’ brands may throw ad dollars and campaigns in order to scale –expect few to have maturity to truly engage. <br />
  36. 36. 2011 top spending by Maturity<br />Source: Survey of Corporate Social Strategists, Altimeter Group, November 2010<br />Expect the advanced to customize social media software and data, and then focus on engagement with social media agencies of record (SMAOR) –with less focus on advertising than the mature<br />
  37. 37. Image by zetsonused with Attribution as directed by Creative Commons http://www.flickr.com/photos/zetson/254608875<br />How You Should Invest in 2011<br />© 2010 Altimeter Group<br />
  38. 38. Invest in scalable social media programs<br />29<br />
  39. 39. Hire correctly (Gurus/Ninjas/Samurai need not apply) and properly train for scale<br />Integrate social media on the corporate website, then aggregate and curate <br />Invest in advertising that leverages social graph<br />Build an unpaid army of advocates –get your customers to do the work for you<br />Invest in scalable systems like SCRM and SMMS<br />Learn to measure using the ROI Pyramid<br />Invest in scalable social media programs<br />30<br />
  40. 40. Gurus, Ninjas, and Samurai need not apply<br />Hire a program manager rather than a social media “hot shot.”<br />Seek candidates with a track record of early technology adoption in their careers.<br />Look for a corporate entrepreneur, comfortable with “calculated risks.”<br />An internal resource to serve the entire enterprise.<br />1) Hire correctly and properly train for scale<br />31<br />
  41. 41. 2) Pragmatically integrate social media on the corporate website, then aggregate and curate <br />32<br />8. Seamless integration<br />7. Social log-in triggers sharing<br />6. Users stay on site with social log-in<br />5. Aggregate discussion on site<br />4. Brand integrated in social channels<br />3. Link away but encourage sharing<br />2. Link away with no strategy<br />1. No social integration<br />Source: http://www.web-strategist.com/blog/2010/05/19/slides-roadmap-for-integration-of-social-into-your-corporate-website/<br />
  42. 42. 3) Invest in advertising that leverages social graph<br />Advertising is the second highest social business program spend in 2010-2011 ($104,000 and $160,000)<br />48% of corporations plan to increase their spend in 2011<br />Focus on clear metrics<br />Make ads engaging and tie to social graph –not just banners<br />33<br />Twitter’s advertising is a combination of both earned and paid –that results in WOM<br />
  43. 43. Invest in Advocacy programs – they scale<br />Research indicates a 5 step process<br />Example: Microsoft has @4000 MVPs who are nominated by peers, employees and other MVPs; MVPs write books, articles, participate in user groups, host events, and answer community questions<br />4) Build an unpaid army of advocates –get your customers to do the work for you<br />34<br />
  44. 44. SCRM connects the social web to your customer data bases, in 2010 to 1011 –budgets are small $19K to $37K (SCRM) but growing<br />Most corporations don’t know they are implementing SCRM, as brand monitoring integrated with CRM applies<br />Invest in Social Media Management Systems (SMMS) to help your brands scale.<br />Forecast: $14K to $22K (SMMS) in 2011 spending<br />Vendor short list: CoTweet, HootSuite, Sprinklr, Objective Marketer, Expion, SpredFast, or Seesmic<br />5) Invest in scalable systems like SCRM and SMMS<br />35<br />
  45. 45. Learn to measure correctly<br />Serve the right metrics to the right roles<br />See: The Social Media ROI Pyramid<br />6) Learn to measure using the ROI Pyramid<br />36<br />
  46. 46. ROI Pyramid: Roles View<br />Provide the right metrics to the right audience. A novice mistake is to provide ‘engagement metrics’ to executives<br />
  47. 47. The ROI Pyramid: Metrics View<br />These metrics are formulas comprised of the tier below them. Currently, there is no industry standard. <br />
  48. 48. The ROI Pyramid: Metrics Examples (there are more)<br />A junior mistake is providing ‘engagement data’ to executives –instead focus on business metrics. <br />
  49. 49. The ROI Pyramid<br />Role: Metrics: Specific Data (examples)<br />
  50. 50. 2010 was the read of Foundational Investments.<br />In 2011, expect to see a focus on Measurement, Integration, Staffing and Advertising.<br />Invest in Scalable Programs that leverage your crowds –1:1 dialog does not scale. <br />Summary<br />41<br />
  51. 51. This research is published under the spirit of Open Research, use it, reference it, and build on it.<br />The more you share the more we can conduct, spread it widely.<br />Our papers are published under non-commercial Creative Commons – you are free to use our research, with attribution to Altimeter Group.<br />Open Research<br />42<br />
  52. 52. 43<br />Jeremiah OwyangIndustry Analyst<br />jeremiah@altimetergroup.com<br />web-strategist.com/blog<br />Twitter: @jowyang<br />Research team includes significant contributions from Christine Tran, and Charlene Li, Altimeter Group <br />
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×