How is the web affecting yourbusiness ?EMBA Alumni Louvain School of ManagementMarch 2nd, 2013
Agenda✤ 1. Major trends resulting from the web’s historical DNA which will affect your business✤ 2. Is Social Media something we should worry about or should we think in terms of Social Business. What are the attributes of social businesses ?✤ 3. Is it changing the way you/we create value ?✤ 4. Is it changing the way customers behave ?✤ 5. Is it changing the way you’re going to work on monday ?
1. Major trends which will affect yourbusiness✤ A brief history about the web’s DNA: read&searchweb, tradeweb, socialweb, all in one web✤ Emerging and growing trends : participation, creativity, change culture, automatisation, free, substitutes etc.✤ Key facts: local, time, links (strong & weak), participation & ownership✤ Reinventing business, democracy, capitalism...
1.2. Emerging & growing trends✤ Apple’s business model ? A platform✤ User generated innovation ampliﬁed✤ Fablabs✤ Power of participation
1.1. History✤ Son of a b...✤ Hacking in 85✤ Arpanet✤ Arab Spring✤ University of singularity✤ The post human era ?
1.3. Key Facts✤ Geography : all frontiers are blurring✤ Time : everything goes faster, but slow food, slow science, long data vs big data...✤ Strong and weak links : a world ruled by small numbers✤ New paradigms for social life: multi identities
2. Social Media or Social Business ?✤ Social Media : myths and realities, push and pull Facts✤ The fantasm of fans and communities : where are the strong and weak links✤ Net result : it affects your company Future
2. Social Media or Social Business ? The BIG DATA dream
2. Social media or Social business :the free media dream
2. Social media or Social business ?Brands and companies will become media
2. Social media or Social business ?Content is king.✤ Positioning: what do you offer to the audience that nobody else can ? Great content prevents from audience erosion: (case Douwe Egberts)✤ Passion: Drive your content with passion✤ Paid Media should always integrate with your own media✤ Perseverance : your content needs a perseverance theme. You need to
2. Social media or Social business ?How to get performant ?✤ Be the buyer✤ Be authoritative, start where what your best at intersects with what your prospect are looking for✤ Be strategic: write your content strategy. Who do you want to reach ? What do you want/need them to do ? By when ? What content will you create to encourage them to do so ? How do you get the content under their nose ? How do you measure success ?✤ Be a marathon man.✤ Be passionate
2. Social media or Social business ?Brands and companies will become media Visions of new corporate websites, with a constant ﬂow of informations to be selected by users ?
2. Social media or Social business ?Brands and companies will become media
2. Social media or Social business ?It will affect your company. Engagement, consistence, relevance, small Communications numbers Solve problem faster, no cold FAQ, immediate Customer services impact Increased collaboration within salesforce, Sales expanded salesforce (bank in canada), social CRM Product and process innovation while leveraging Product development the collective intellect of all your stakeholders Stafﬁng , recruiting preempting, employee Human Resources engagement, motivation, social e-learnings Identify robust substitutes, go faster to market Supply chain through increased collaboration in the supply chain. Look @ Zara
2. Social media or Social business ?It will affect your company. From traditional to social business Limited, slow ﬂow of Fast & ﬂuid ﬂow of information information Command & control Empowerment Power of hierachy Power of expertise Strict organisational Blurrres boundaries boundaries Financial centric Flexible, broader reward incentives programs
Some Exercices ...✤ HR: -"The guys background looked great, and he said the right things in his cover letter and resume, so your hopeful brain said Could this be my knight in shining armor? - « you get him on the phone and he conﬁrms your impressions.» - You both meet. it’s a disaster...✤ Why ? What’s Wrong ?✤ The credentials tou’re looking for ? Do you need them really ?✤ What do you need as bizz developper in software ? Integrity, contacts, sense of humour, follow through, imagination... There are 10000 people like that around and at the end it’s gut feeling.✤ How could we have done it ?
3. Value creation:End to End External Engagement R&D Operations Marketing Sales Services
3. Value creation: Exercices✤ News agency✤ Electricity transporter✤ Consumer association✤ Your business ?
The values & virtues of synergies ✤ 1.5 million people who liked this effort on Facebook. ✤ among all retailers that accepted our card on that day, sales increased 9 percent year on year ✤ Among small businesses that participated in Small Business Saturday, sales rose 28 percent.
4. The customer decision journey The Zero Moment of truth
4. The customer decision journey✤ The approach✤ The Zero Moment of truth✤ Learnings from McKinsey, Voo, Delta Lloyd✤ How can we apply it to you ?
At every moment, they will googleyou...so, think content, think media
Operate and reinvent✤ For companies in industries as diverse as consumer packaged goods and ﬁnancial services, digital technology has upended the engagement expectations of customers, who, for example, want one Web site to visit and a relationship seamlessly integrated across touch points.✤ Meeting such expectations requires extraordinary operational coordination and responsiveness in activities ranging from providing on-the-ground service delivery to generating online content to staying on top of a customer care issue blowing up on YouTube.✤ PepsiCo, for example, has sought to provide a single point of contact for its digital- marketing efforts by creating the role of chief digital ofﬁcer: an executive without line responsibility who drives the application of best practices across the beverage group’s global digital efforts. A Chief Collaboration Ofﬁcer might be even better✤ Companies also need a clear approach for monitoring touch points and renewing them as needed.(See Bain Company, the Ultimate question ?)
Reinvent Marketing✤ Distribute more activities: P&G buying division, Elia When CEOs ask for the marketing-org chart, they will see a complex web of solid- and dotted-line relationships showing the roles that marketing plays in designing, building, or operating touch points across the whole organization.✤ More councils and partnerships: One global ﬁnancial institution, for example, has created a digital-governance council with representatives from all customer-facing business units. The company’s goal was to ensure that data and analytics are shared, that customers receive the same experience regardless of channel (such as Web sites, branches, call centers, or automated teller machines), and that IT systems meet the customer’s digital-engagement needs.✤ More insights: Generating rich customer insights, always central to effective marketing efforts, is more challenging and important in today’s environment. Companies must listen constantly to consumers across all touch points, analyze and deduce patterns from their behavior, and respond quickly to signs of changing needs.✤ More data rich analysis: Reinforcing the importance of all these changes is an exponential increase in the volume of customer data and the intensity of the analysis required to process and act on it effectively.
Everything is marketing✤ «We’re going through a revolution a whole lot like the Industrial Revolution. The change is that profound. I had a conversation recently with an employee about this new age of marketing. Basically, it went like this: - “As we try to go to market with your idea,” I said, “the world is going to decide whether or not this has real value, talk about it, and then position it pretty much how they want to position it.” - The person responded, “OK, so we really have lost control?” -I said, “Yes, that’s right. I don’t get to control everything that’s said about us.” Then I said to the person, “But understand, you’re still 100 percent accountable for the outcome.”✤ The reaction to me was, “That’s not fair.” And it’s not. But it’s the world we live in.» John Hayes CMO AMEX
5. What’s in it for you✤ Where can web2.0 technology impact your value chain ﬁrst ?✤ Where can interactions with stakeholders create value or reduce cost ?✤ Give a try to Enterprise social networks but take care of its adoption✤ Deﬁne practices and guidelines internally in a participatory, ownable way✤ Build and share best practices✤ Expand to external networks while making your website social✤ Stop trying to reach, make yourself accessible