Reinventing the Customer Edge: Social Media and Innovation in the EnterpriseCIO PerspectivesSan FranciscoSeptember 23, 2009Dr. John J. Svioklajohn.sviokla@diamondconsultants.comblog: www.sviokla.comHarvard blog: blogs.harvardbusiness.org/sviokla/twitter: jjsvioklacell: 617.510.3565Creative Commons License: Attribution needed, derivative works allowed for non-commercial activities

Saying “No” to social media is a big mistake, especially if the decision was driven by the CIO.While there are many reasons to limit what your employees post on social media sites, shutting off the spigot entirely misses out on some incredible opportunities to learn and experiment and, if you get lucky, create some real value for your organization.Two common questions frame this discussion: Community – Internal or External? CIO Focus – Personal or Organizational?1Social Networks and the CIO

Community – Internal or External?

CIO Focus – Personal or Organizational?

Social Networks and the CIOCIO Social Media FrameworkKnowledge CommunitiesInnovationTrainingCustomer RelationshipsCustomer ServiceInnovationRecruiting/AlumniOrganizationalCIO FocusOrganizational LeadershipValuesCommunicationCorporate and Personal Brand BuildingCIO Career DevelopmentNetworkingPersonalExternalInternalCommunitySource: www.ciodashboard.com, Diamond Management & Technology Consultants

Knowledge Communities

Innovation

Training

Customer Relationships

Customer Service

Innovation

Recruiting/Alumni

Organizational Leadership

Values

Communication

Corporate and Personal Brand Building

CIO Career Development

Networking

Social Networks and the CIOToday’s Focus is Reinventing the Edge Customer Impact. LearningCustomer Impact!OrganizationalCIO FocusCommunicationCareerPersonalExternalInternalCommunitySource: www.ciodashboard.com, Diamond Management & Technology Consultants

Social Networks and the CIO3-CloudsInternet… a connectivity utility – Capitalism by its nature connectsCloud 1Source: David Reed

Social Networks and the CIOThe exploding Internet

Social Networks and the CIO3-CloudsCloud computing ... a resource utility – competition brings new resourcesCloud 2Cloud 1Source: David Reed

Social Networks and the CIO“As we may think…” -- Vannevar Bush

As Director of the Office of Scientific Research and Development, Dr. Vannevar Bush has coordinated the activities of some six thousand leading American scientists in the application of science to warfare. In this significant article he holds up an incentive for scientists when the fighting has ceased. He urges that men of science should then turn to the massive task of making more accessible our bewildering store of knowledge. For years inventions have extended man's physical powers rather than the powers of his mind. Trip hammers that multiply the fists, microscopes that sharpen the eye, and engines of destruction and detection are new results, but not the end results, of modern science. Now, says Dr. Bush, instruments are at hand which, if properly developed, will give man access to and command over the inherited knowledge of the ages. The perfection of these pacific instruments should be the first objective of our scientists as they emerge from their war work. Like Emerson's famous address of 1837 on "The American Scholar," this paper by Dr. Bush calls for a new relationship between thinking man and the sum of our knowledge. Social Networks and the CIO“As we may think…” -- Vannevar BushOptional SlideSource: the Atlantic, http://www.theatlantic.com/doc/194507/bush

Social Networks and the CIO3-Clouds: Mobile, Social, Ubiquitous…The 3rd cloud –mobile, social interaction utility – Human connection is the Killer App of all Killer AppsCloud 2Cloud 1Cloud 3Source: David Reed

Social Networks and the CIODavid Reed: The power of group forming networks…

Social Networks and the CIODavid Reed: The power of group forming networks…Optional Slide

Social Networks and the CIOExpectations of the Market: Can you meet the Woodruff Standard?Coca Cola will be within arms length of desire…

Social Networks and the CIOToday’s Focus is Reinventing the Edge Customer Impact. LearningDellSouthwestAvonBroadridgeOrganizationalCIO FocusCommunicationCareerPersonalExternalInternalCommunitySource: www.ciodashboard.com, Diamond Management & Technology Consultants

Social Communities and Allstate FinancialWhat are my goals for social media in the short term, medium term and long term?Quantitative BenefitImprove Sales EfficiencyQualitative BenefitAgent Recruiting/RetentionImprove ProductivityImprove Advertising EffectivenessAmplified Range &ReachCustomer Self ServiceBenefitsCost ReductionFaster/Cheaper DocumentationRevenue IncreaseIncrease Average Order SizeWord of Mouth LeverageCustomer SatisfactionReact to Changing NeedsInnovation

Dell created a support forum (www.dellcommunity.com) to enable users to help each other to take care of hardware and software issues and documenting known problemsBy tapping on the “culture of generosity”, Dell has been able to create a strong user community and help reduce support costs. Social Communities and Allstate FinancialSave Money -- Dell – Support Forum helps reduce support costOverviewFeaturesUsers can visit and post their problems or respond to posted problems quite easilyThe question and answers threads are archived and easily searchableThe US monthly unique visitors are ~1 MillionSource: Diamond Analysis, Forrester Research.

Users can visit and post their problems or respond to posted problems quite easily

The question and answers threads are archived and easily searchable

The US monthly unique visitors are ~1 Million

Social Communities and Allstate FinancialSouthwest Airline’s communitiesMy SpaceEonsFacebookTravel CommunityOrkutYou Tube

Social Communities and Allstate FinancialSouthwest Airline’s communities (continued)

Social Communities and Allstate FinancialAvon Representatives are already using different social media tools to promote their businessfacebookMySpaceOrkutBlogsEonsYouTube

Social Networks and the CIOBroadridgeInvestory Network

Aggregation, organization, and integration of both user generated content and structured data will be the keys to unlocking the potential of financial communities.Social Communities and Allstate FinancialSocial Networking in the Marketplace Will Evolve IntegrationPersonal Information ManagementUGC - PredictionsUGC - ActivityEvolutionSocial NetworkingStructured DataTodayDifferent categories of sites exist to provide users with informationPersonal aggregate personalized, structured data*e.g. Google Finance, Yahoo FinanceSocial Networking sites offer communities for users to share user generated content (UGC)*e.g. Caps, ClearStationSocial Networking sites that combine communities with users’ actual activity*e.g. ZeccoSharesTomorrowIntegrated sites will combine the best of personalized, structured data with the best user generated content User generated content will be easily accessible, aggregated with “professional” data and structured in a personalized manner for usersInteractions make users members of a community instead of just customers*For additional examples of personal financial management and financial social networking sites, see appendix slides 24-48.

Different categories of sites exist to provide users with information

e.g. Google Finance, Yahoo Finance

e.g. Caps, ClearStation

e.g. ZeccoShares

Integrated sites will combine the best of personalized, structured data with the best user generated content

User generated content will be easily accessible, aggregated with “professional” data and structured in a personalized manner for users

Interactions make users members of a community instead of just customers

Social Communities and Allstate FinancialIt’s all about profitable growth!Quantitative BenefitImprove Sales EfficiencyQualitative BenefitAgent Recruiting/RetentionImprove ProductivityImprove Advertising EffectivenessAmplified Range &ReachCustomer Self ServiceBenefitsCost ReductionFaster/Cheaper DocumentationRevenue IncreaseIncrease Average Order SizeWord of Mouth LeverageCustomer SatisfactionReact to Changing NeedsInnovation

Social Communities and Allstate FinancialEnough about the Company – what about YOU?

Social Networks and the CIOLower costs increase yield…Profitable growthOrganizationalCIO FocusStatus & PowerEmployabilityPersonalExternalInternalCommunitySource: www.ciodashboard.com, Diamond Management & Technology Consultants

Those entitles that are more highly interconnected learn faster…Those societies that have deeper means to absorb and share risk grow faster and better…Those individuals who connect and enjoy life with friends live longer, and happier…The Three Clouds are the Natural Next Evolution of our Species