Introducing The Open Business Program

Introducing Open Business90:10 Group: Your Open Business Partner

Open Business ProgramOur framework for change• We adapt organisations to the needs of a rapidly changing world; one which demands ever greater connectedness, openness and meaningful relationships with customers.• Too often the seismic shift we are experiencing is being dealt with on an issue-by-issue basis. Reactive piece-meal tactics create a permanent state of panic-ridden catch-up. Learnings are lost in silos, failures are swept under carpets.• We believe there is an holistic strategic solution which provides a framework for change, leap-frogging the tick-box exercise of simple implementation of social technologies. It makes organisations future-ready like never before.• That solution is our Open Business Program.01/08/2012 2

Contents1. Introducing the Open Economy (Slides 4-15)2. Defining Open Business and its Principles: (Slides 16-28)3. How does your organisation measure up? (Slides 29-32)4. Starting your journey : (Slides 33-42)5. Why partner with us: (Slides 43-47)01/08/2012 3

IntroductionThe Open Economy & Open Business• Social media has shown people are willing to engage with brands; share, discuss, create and offer ideas• It has given birth to new platforms dedicated to opening innovation to the crowd• Most believe this can deliver value across the whole organisation from marketing to product and service innovation• But few know how to move beyond experimentation to scale into business transformation• As big firms struggle to overcome their legacy issues market forces become more open, connected, and social• This means big disruptions and challenges to them and their agencies• We call this environment The Open Economy and our framework for response to it is Open Business.01/08/2012

The Open Data MovementWe now expect data to be shared and open Companies such as Facebook are valued on the data of its users – who trade it in return for utility API: The idea of organisations making their data easily accessible to outsource and derisk innovation or offer for public good Hacktivism at its roots is about exposing hidden truths; be that how poorly companies protect your data or the secret dealings of super powers and shady corporations.01/08/2012

Open CapitalThe democratisation of capital means increased competition • There are more than 450 crowd-funding platforms around the world • With 5 white-label crowd-funding platforms introduced this year • To date $1.5 billion dollars has funded more than 1 million projects • 55% in Europe, 44% in the US and 1% in other regions • The average crowd-funding project takes 10 weeks from beginning-to-end01/08/2012

Open Innovation ScaledCo-creation is being applied across all business innovation gatesOpen Innovation has existed since the 1960s, a termpromoted by Henry Chesbrough, but with the recentadvent of affordable and widely used collaborativetechnologies, it can be applied at scale.There are now hundreds of co-creation and ideacrowd-sourcing platforms and case-studies acrossalmost every sector from FMCG to Automotive. Withbrands like Proctor & Gamble driving 60% of allinnovation from partnerships outside theirorganisation.

Networked Human CapitalAn increasingly virtual workforce crowd-sources solutions01/08/2012

The Open EconomyThe new market reality The Open Economy Open Open Data Open Innovation Open Capital Organisation Movement Scaled (Crowdfunding) (Crowdsourcing) Powered by: Social Media + Internet Culture of Openness x People01/08/2012

Untangling the buzzwordsOpen Business is the structured application of the strands of Open Economics Crowd-sourcing Open Data Crowd-funding Co-Creation Netnography Open Business01/08/2012

Market Forces are now; Connected, Open & LeanBecoming an Open Business is not optional just a matter of time Tomorrow’s Customers Activists Competition Barrier to entry Almost every Organisations like for competition purchase cycle Greanpeace see has never been now involves a themselves as a lower. Crowd- Google Search or platform for their funding and Community advocates to lead white-label API Reach-out in both change. Activist tech dominate. B2B and B2C attacks have increased YOY.01/08/2012

Open BusinessFor communication, product & service innovation• We think of social media as a door to the outside world.• A door to; listen, ask, connect and create with people outside both partners, customers and experts.• All for the purpose of competitive advantage in marketing, service and product innovation.• Over the last 3 years we have developed a frame-work to deliver open business at an Enterprise level for blue-chip companies

Closed businesses can’t competeOpen equals a better fit with the networked world• Many of the success stories of the 21st Century are built on multiple Open Business Principles. Google, Apple and Amazon are among the more famous.• According to IBM’s CEO survey in May 2012, companies that outperform their sector are 30% more likely to identify ‘Openness’ as a key factor in their success with particular benefits for collaboration and innovation.• Businesses starting today build on the Principles of Open Business from the word go. They do so because the principles are self- evident to those growing up in a networked world.• They know they are simply the most effective way of taking greatest advantage of the world as it exists today.• This places them at significant competitive advantage over those who are not seeking to apply the principles for legacy or other reasons.01/08/2012

Challenges of the Open Economy Issues for today’s corporations to address to survive Corporate Declining & Exponential Data Glocal Needs Citizenship Migrating Trust SetsThe combination of It is no longer acceptable to Trust in large media More and more data isGlobalisation in an internet just make a donation to companies and brands is in available for companies toage requires multinationals charity or speak of good decline. It is migrating to mine - and make sense of.to be consistent globally but intentions through your CSR peers but in a complex and From big data, to real-timereflect local cultural department. Our ever shifting way. The days and behavioural data fromnuances in a real-time way. connectedness means you of control advertising or mobile, social and otherThis challenges traditional can’t just say, you have to clever PR are over. new sources. The desire toorganisational structures do. If you want to be part of simplify the complexity isand requires a breaking the online community you increasingly difficult todown of silos and market are expected to actively resist. But this reductionismdivisions. participate in the world risks destroying the true around you as a good citizen value. CommunityPeople / System Influence Insight Culture 01/08/2012 14

Minimum demanded in an Open EconomyNew entrants are emerging with these attributes as their default1. Transparency2. Openness3. Connectedness4. Purpose01/08/2012 15

Open Business Definition:Making partners of customers• An Open Business is one which uses its available resources to; -Discover people who share its Purpose -Brings them together to realise that Purpose.• It is designed from the outset to scale through participation.• It makes partners of customers.

10 PrinciplesOf Open Business1. Purpose2. Open Capital3. Networked Organisation4. Sharability5. Connectedness6. Open Innovation7. Open Data8. Transparency9. Member-Led10. Trust01/08/2012 17

Applying the Principles in general offers...• Better market and customer knowledge• Better fit with customer need,• Accelerated more successful innovation,• Evidence-based decision making• New access to capital,• More effective knowledge management• Improved internal and external collaboration and idea generation• Lower (distributed) risk through networks of partners,• A greater sense of doing business that benefits the society in which you operate• A greater sense of customer and employee ‘ownership’ through the democratisation of business• Raised levels of trust – and customer and employee loyalty and satisfaction which derives from this• More attraction and retention for the right talent and customers. Applying them in particular delivers >>>01/08/2012 18

1. PurposeThe market for something to believe in is infinite – Hugh MacLeod Purpose is the why, it is the belief which all your stakeholders share and to which all your organisations actions are aligned without compromise. Your products / services are proof of that shared purpose.• Organisations driven by purpose outperform the general market 15:1 and comparison companies 6:1.• They deliver greater retention of staff and customers• They achieve greater advocacy and therefore rely less on interruptive marketing• They become as important to people’s lives as a cause-based organisation. Relationships go beyond the transactional• More resilient in an economic down-turn• They have greater ability to enter new markets as they are not defined by their products but by their beliefs

2. Open CapitalLowering the risk of testing new markets Using crowd-funding platforms or principles to raise capital through micro- investments• Lowers cost of innovation and marketing• De-risks innovation; delivers proof of concept and pre-qualifies markets• Generates pre-sales and order book• Primes advocate platform pre-launch• Opens the innovation process early• Democratises innovation• Enables the scaling of niche innovation

3. Networked OrganisationDistributing the risk of doing business The organisation functions as a platform connecting internal networks to the external for a common purpose• Links people and teams across conventional boundaries (e.g. departments and geographies)• Enables pragmatic scaling with a more flexible workforce• Allows greater capacity efficiently• Closer to market and customer• Maximises the knowledge potential and flow of an enterprise;• Minimises threat of disruption; a network has greater resilience, responsiveness and adaptiveness.

4. SharabilitySharing the value of what you know Packaging knowledge for easy and open sharing both internally and externally• Taps into peer-to-peer distribution networks reducing cost to market and of targeting• Raises thought-leadership profile• Breaks down internal silos and external / internal barriers• Encourages the repurposing of information• Delivers lateral thinking and new perspectives• Value exchange reinforces connections and relationships• Allows cost and time efficiencies, reduces duplication• Ensures an organisation learns collectively and more quickly• Improves the spread of internal best practice

5. ConnectednessLeveraging the power of your people Connecting all employees internally to one another and externally through open social media• Demonstrates openness and accountability improving customer satisfaction• Increases the opportunity for serendipity and innovation• Humanises your company making business personal• Allows employees to; grow, build and manage relationships with customers and partners more easily - improving retention• Connects organisations to their employees’ networks scaling their collective reach• Enables for two-way flow of information and intelligence improving market knowledge

6. Open InnovationMaking better fits, more efficiently, to market needs Innovating with partners by sharing risk and reward in the development of products, services and marketing• Distributes the risk of innovating• Reduces the risk that the innovation’s won’t fit the needs of its intended market• Develops customer ownership of the innovation pre-launch• Allows for external ideas to be surfaced early on in the process• Scales idea generation and development with greater efficiencies

7. Open DataEnsuring your data is available for reapplication by outside the organisation Making your data freely available to those outside your organisation who can make best use of it• Externalises and scales R&D while reducing cost to innovate and market• Allows for crowd-sourced innovation and the repurposing of your data to deliver value in unimagined ways• Gives birth to new economies and innovations• Distributes the management of the exponential growth in data-sets• Distributes the risk and reward of data innovations

8. TransparencyBuilding trust and affinity Decisions, and the criteria on which they are based, are shared openly• Ensures the organisation makes decisions consistent with its purpose and in line with its declared beliefs• Incrementally improves the performance of the business through crowd checks and balances• Attracts the right employees, partners and customers• Softens unpopular decisions by being honest and open about the rationale• The act of open decision making builds affinity and trust• Corrects imbalances creating a fairer workplace

9. Member LedBeing a better fit with the networked world Your organisation is structured around the formal cooperation of employees, customers and partners for their mutual social, economic, and cultural benefit• A more cooperative model is a better fit with the networked world based upon community values• Creates a shared sense of ownership and responsibility – of belonging• Views customers as equal stakeholders• As loyalty to brands and large organisations decline, member-led companies offer a reason to continue relationships• Provides a feeling of being able to influence to feel valued• Removes the tension between employee and employer (unions and shareholders)

10. TrustTrust is essential for Open Business Mutually assured reliance on the character, ability, strength, or truth of the partnership• Partnership, the paradigm of open business, requires it• More resilient relationships with stakeholders• Trust in corporations and advertising is decreasing year-on-year (Endleman Trust Survey) so to excel in it offers a distinct advantage• Increases brand equity. A significant element of shareholder value• Inspires the default selection of your offering in competitive environments• Builds an emotional connection with a customer, partner and employee lowering the cost of acquisition and retention

How do you measure up?Benchmark your organisation• We believe the 10 principles of Open Business are a benchmark against which the performance of any organisation could and should be judged.• For each we offer ‘Goal State’ as the ideal outcome (a perfect outcome) of our strategy consulting work with clients.• In the following slides we also describe the ‘Worst Case’ position – to enable you to quickly benchmark your organisation’s progress towards each of the Goal States so far, and against which we can measure your progress in the future.01/08/2012 29

Score out of 5• 1. Purpose: ‘big capital’ – VCs, institutional shareholders –• Goal State (Scores 5/5): You have a clear ‘Why’ of concentrating power over the organisation and its the organisation – why it exists (what is it about aims in those institutions. the world you are trying to put right/fix etc). Everyone who knows of you knows of your 3. Networked organisation purpose. • Goal state (Scores 5/5): No more than 1 in 10 in 100% of your actions are aligned with and express your organisation’s ecosystem are employees – the that purpose. rest partner with you from outside the• Worst Case: (Scores 1/5) The number one reason organisation. Your staff act as an enabling platform your business exists is to make money. Mission for participation from outside the org. statements simply enshrine the requirement to • Worst Case (Score 1/5) You employ staff to fulfil deliver shareholder value. every function of the enterprise.• 2. Open capital: Goal State (Scores 5/5): The organisation is 100% crowd-funded• Worst Case (Scores 1/5): All funding comes from01/08/2012 30

Score out of 5 4. Sharability: • Worst Case (Scores 1/5) Social media is actively• Goal State (Score 5/5) Knowledge/thought discouraged during working hours. Internal comms leadership in all formats is created in such a way are one-way broadcasts from the centre and kept that it can be easily and readily published strictly internal. openly, and shared. Share functions are built into each document/asset. Creative commons is the • 6. Open Innovation: default. • Goal State (Scores 5/5) 100% of developments in• Worst Case (Scores 1/5) Knowledge created in the service, product or comms design are made in organisation stays within the organisation. collaboration with people outside the org in an Anything published outside is done so with organisationally-appropriate co-creation process. extensive copyright protections in place. • Worst Case (Score 1/5) All developments are made in secret and internally. 5. Connectedness:• Goal State (Scores 5/5) All employees are using open social media daily for external connection and applying it to make best use of the synchronous/asynchrynous opportunities of the global web. Internal/external comms are rarely distinguished.01/08/2012 31

Score out of 57. Open data: 9. Member led:• Goal State (Scores 5/5) Any data generated or • Goal State (Scores 5/5) 100% of all key decisions collected by the organisation is made publicly (within legal constraints) are made by and with available where there is a possibility that sharing those charged with implementing them in this data can create additional public good. Eg collaboration with partner-customers (members) apis. All data is searchable internally and and/or wider supporters of the organisation. externally. • Worst Case (Score 1/5) All key decisions are made• Worst Case (Score 1/5) Data is jealously guarded at board level and imposed downwards on those and kept secret. Competitive advantage is believed charged with implementing them. Stakeholders to reside in ownership rather than collaboration. and customers are considered only in the context of what can be gained from them. 8. Transparency:• Goal State: (Scores 5/5) Decision making is done • 10. Trust: openly, with the process exposed to all • Goal State (Scores 5/5). Stakeholders, partner- employees, stakeholders and anyone wishing to customers (members), employees have 100% trust hold the org to account. Board meetings (within in your organisation’s mission and motives as legal constraints) are open to all and offered as a measured in 360-degree surveys. 90% of new webcast/webinar. business is generated by peer recommendation.• Worst Case (Scores 1/5) Decisions are made • Worst Case (Scores 1/5). Trust levels are measured behind closed doors without explanation. Records at sub 10%. 90% of new business is generated are shared only as required by law. through marketing spend 32

What next? You are invitedWe are looking for pioneers to partner with on a journey of strategic change• We have been working directly with blue-chip brands for the last 3 years.• Now we are looking for pioneering teams to partner with us to realise Open Business through the unique frame-work of projects and work-streams we have developed.01/08/2012 33

Open Business Packages Pragmatic approach to change Initial Learning/Program preparation Change ProgramExploratory Open Business Mentoring Customer Masterclass (Total 11 days per person, over Open Day (With up to 10 seats) 3mth program) Program Committed We help you prepare your teams, identify sectors/divisions most at risk of disruption, and engages them in a clearly defined yet flexible Open Business program. Open Business Council Program (Annual fee per Client)

Open BizOpen Business Masterclass MasterclassWhat’s changed and understanding the impact on your businessWhatAn exploratory internal masterclass led by one of the Co-founders of 90:10 Group –an Open Business consultancy with 3+ years of focused experience. Up to 10 clientstaff can join us to explore the practical application of Open Business including:-Open Business principles and practices-Key trends explained: co-creation, netnography, crowd-sourcing-Market segmentation and consultancy process-The Open Business customer road map-Products and services to move your client along the journey from entry level toexcellence-People/Skills required to deliver Open Business-Case studies to bring the day to life1 day on-site senior consultancy in advance, to tailor requirements based on level ofknowledge of participants and intended goal state.Collateral developed based on this tailoring – bespoke slide decks, take-awaymaterials for circulation.Why?• Engage your staff with the new business reality and its impact on clients• Learn how to contextualise and internally pitch Open Business trends• Untangle buzzwords and understand their application at an Enterprise / systemic level• Empower digital leads / change agents• Hear real world cases of from actual practitioners• Begin your Open Business journey

Open Biz Open Business Masterclass Timeline Masterclass What’s changed and understanding the impact on your business Inputs: Outputs: Open Business Principles to apply today OB Skill s Roadmap built from & Gap initial gap analysis Analysis Gaps in Skills & OB Change Roadmap Competencies Documentation Creation Market identified Understanding Day documented Needs OB Trends &Consultation and draw up in Principles highly sharable social format Preparation Workshop Session Post-Support ( 1 Day) (1 Day) Available 01/08/2012 36

Open BizOpen Business Mentoring MentoringManaging and supporting change leadershipWhatChange needs leaders to drive the agenda and inspireothers. But leading change is a lonely job and especiallychallenging in a new and evolving space. We aim toprovide your Open Business change agents with theone-to-one support ofcommunicating, learning, championing and deliveringthe new reality including understanding the practicaland cultural barriers to adoption. This is with a 90:10Group founder and is billed at a retained daily rate.Why?• Engage your staff with the new business reality• Learn how to contextualise and communicate trends• Untangle buzzwords and understand their application at an Enterprise / systemic level• Empower digital leads / change agents• Hear real world cases of from actual practioners

Open Biz £8kpm Open Business Mentoring Mentoring What’s changed and understanding the impact to clients Inputs: Outputs: Dept position on Open Business Opportunity / Project Integration into Threat Planning company culture Identification Partner , New Hire Selection & Develop processes Skills Gap and delivery Engagement Research Primers Analysis capability MarketNeeds Gap Understanding Begin a change Analysis program Orientation 1-1 Mentoring Post-Support ( 1 Day) (3 Month) Available 01/08/2012 38

CustomerOpen Day: Events without walls Open DayA social media powered open dayWhat• Invite up to 5 of your employees to ask the crowd their most pressing questions and have them answered in a rich and fun way.• Each external party comes connected to a network of a minimum of 1,000 people giving a combined network reach of 10,000 people• At select points we let them use their preferred social media channel to open up the day to their followers and fans• We can use this as an opportunity to scale debate and opinion, quantify and sense-check conclusionsWhy?• Learn why being open is inspiring• Deepen brand affinity• Build & strengthen relationships with key people• Develop loyalty and understanding• Ask questions and give answers• Discover new habits, trends and needs.01/08/2012

Customer Open Days Timeline Open Day A social media powered open day Inputs: Outputs: 3. Influencer Check: Surfaces & colours -Google Chat with key issues 2. Network influencers to gauge their Reach-Out: feed-back & opinions -Refine and co-create Co-created possible -Open doors for conclusions to their Recruitment of solutions ideation, sense-check opinion invitees 1. Group Storming; and colouring -Prioritisation crowd- Instant Crowd Invitee -Why I care? sourced feedback & shared Discovery -Client filters (openly) -The problem with X is.. -How can X be better? Needs Socially sharableConsultation concepts (internal & external) - ezine Preparation Session (4 Day) (1 Day) 01/08/2012 40

Open BizOpen Business Council ProgramWorking in partnership to realise transformation & changeWhat• We partner with you to install a virtual Open Business Council charged with putting in place; the people, process, connections and ecosystem to become an Open Business benchmarking against the 10 Principles.• We audit you across 8 work-streams at each step 90:10 provide mentoring, support and leadershipWhy?• Lead business transformation• Future proof against digital disruptions• Allow your dept to become more innovative, efficient and open• Extend your reach into communities of external stakeholders building trust and loyalty• Broaden connectivity across depts• Build a system to workflow external data real-time for business planning• Build crowd-sourcing, co-creation, open data, open innovation and netnography into the daily DNA of your businessWorkstreams:

Open Biz Open Business Council Program Program 8 Principles Mapped Outputs: Greater levels of trust , Relationships satisfaction & retention Realise Open BusinessInputs: transformationOpen Business Technology Better market andImmersion Session customer knowledgeOpen Day (Cultural Better fit withOn-boarding) customer need Transparency 1. Organisation InformationOpen Business Accelerated andAudit (Internal & 2. Strategy successful innovationExternal) 3. Culture Evidence basedGap Analysis + decision makingWork-streamPrioritisation More effective knowledgeCouncil Elected & managementStream Ownership ProcessDelegated A greater sense of doing business of benefit to society 01/08/2012 42

Not Gurus but practitionersWhile the rest of the world has been creating Facebook pages.. £3.5 million in consulting fees over 3 years Over 20 projects for 15 blue-chip brands (References available on request)01/08/2012

Helping you90:10 Group’s co-founder: David Cushman David Cushman Co-Founder of Open Business Consultancy 90:10 Group. Former Director of Social Media at Brando Social Former Digital Development Director at Bauer Media. Founding member of the Open Business Council. 25 years in business, 13 years in digital business, 5 Years in Social Media, 3 years in Open Business. Global thought-leader: Keynote at CeBit, Hannover, 2012, permanent member of the Financial Times Judgment Call panel, author The Power of the Network. Practical experience in delivering Open Business with Tesco, Bupa, First Capital Connect, Honda Europe, Rolex, The Co-operative etc.

Helping you90:10 Group’s co-founder: Jamie Burke Jamie Burke Co-Founder of Open Business Consultancy 90:10 Group. Led product and market development across EMEA recruiting and developing teams to deliver revenues of £3.5m in less than three years. Founding member of the Open Business Council. 12 years in business, 10 years in digital business, 5 Years in Social Media, 3 years in Open Business. Global thought-leader: Respected blogger and regular speaker at events across Europe. Practical experience in delivering Open Business with Hermes, Citrix, Durex, Carlson Wagonlit Travel, Mastercard, Microsoft Advertising, Honda Europe, Tesco etc

2010-2012, Pioneering Open Business SCALES PAN- EURO 2010 LAUNCH 2012 THROUGH PARTNERSHIP Contracted to help Contracted to help We have been Honda Europe open CWT design and roll engaged by a comms and workflow out Social Enterprise number of Coops to consumer engagement model globally across realise a truly and social media data key depts. member-led flow. networked organisation. Q2 Q3 Q2 Contracted to co-create Contracted to help We have been engaged a consumer vertical Hermes operationalise by Mastercard Europe to community to inform; customer service and realise their becoming store-buying, drive new PR in social media an Open / Social sales and retention business by 2016 Q3 Q2 Q3 Netnography project for Contracted to help Bupa brand realignment and agencies Co-Launch; based upon community develop and market a new needs and perceptions service offering based on community profiling EXPANDS 2011 TO MENA

Introducing The Open Business Program

by ninety10group on Aug 01, 2012

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Introducing The Open Business Program Presentation Transcript