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Enterprise 2.0 & Social CRM: Together At Last



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Enterprise 2.0 & Social CRM: Together At Last Enterprise 2.0 & Social CRM: Together At Last Presentation Transcript

    E20’s & SCRM’s Twain Meet
  • The Social Customer
  • The Social Customer
    This is a SOCIAL transformation – a revolution in communications - that impacts all institutions – business included
  • The Social Customer
  • The Social Customer
  • The Social Customer
    "Companies used to focus on making new, better, or cheaper products and services....Now the game is to create wonderful and emotional experiences for consumers around whatever is being sold. Its the experience that counts, not the product."
    “People…want capabilities and options, not uniform products…business is there to provide the tools.”
    “The Knowledge Economy is giving way to the Creative Economy...” (Knowledge has become a commodity so the solution is to) "focus on innovation and design as the new corporate core competencies."
  • The Social Customer
    “NBC Universal announced sweeping cuts to its television operations yesterday, demonstrating just how far a once-unrivaled network must now go to stay competitive with YouTube, social networks, video games and other upstart media.”– Washington Post, October 21, 2006
  • The Social Customer
    Sea change in use of technology
    Gen Y first generation to spend more time on the ‘Net than watching TV
    Implications for marketing staggering
    74% of all adults on the web are engaged with a social network/community
  • The Social Customer
    • Using Social Networks
    • Nielsen Online research “Global Faces on Networked Places” (March 2009):
    • Fastest growing sector for Internet use is communities and blog sites (5.4% in a year)
    • Member communities reach more Internet users (66.8%) than email (65.1%)
  • The Social Customer
    Conversation is controlled by the customer
    Review sites
    Social networks/communities
    Service complaint oriented – Planetfeedback
    Get Satisfaction
    Facebook pages
    Social Media Properties
    Social Media Today (SMT)
    Social Customer
    Geek Brief TV
  • The Social Customer
    • The Social Customer – Now
    New definition of trusted source
    2009 Edelman Trust Barometer (58%), most trusted – “a person like me.”
    Not an industry expert or academician or financial advisor
    Consumer thinking penetrates the enterprise (Blackberry Pearl)
    Customer begin to include business as feature of life choice, not a separate factor – user generated content becomes part of business (Samsung open IP to engineers)
    Collaboration between company & customers to provide useful value for each begins
    Personal value chain subsumes enterprise value chain
    Social networks as active participants in effecting change (blogosphere, podcasting)
    Ubiquitous, easy to use technologies
    The social web becomes a primary communications medium
    The social customer is increasingly mobile
    Unified communications
  • Source: Brian Solis
    The Social Customer
  • The Social Customer
    • Three Things to consider:
    • How do you deal with customers wanting a personalized experience – whether or not you think of them as high or low value?
    • Once you figure out that, how do you deal with the millions of customers you might have?
    • How do you leverage what you have internally to help support their experience?
  • The Definition of Social CRM
  • CRM
    “CRM is a philosophy and a business strategy, supported by a system and a technology, designed to improve human interactions in a business environment.”
    The Definition of Social CRM
  • From CRM to Social CRM
    "CRM is no longer just a model for managing
    customers but one of customer engagement."
    The Definition of Social CRM
  • The Definition of Social CRM
    Five Simple Principles of Social CRM
    Value & values are given & in return, value & values are received (collaboration, co-creation, mutual value, transparency, authenticity, advocacy)
    Each of us is governed by self-interest (personalization, controlling own experiences)
    We are social creatures too (conversation, collaboration, data capture/insight)
    For ideas to be truly exciting, they have to be real (measurement, analytics, realistic objectives, success)
    Do unto others…you know the rest (customer experience, customer-company interactions)
  • Social CRM
    “Social CRM is a philosophy & a business strategy, supported by a technology platform, business rules, workflow, processes & social characteristics, designed to engage the customer in a collaborative conversation in order to provide mutually beneficial value in a trusted & transparent business environment. It’s the company’s programmatic response to the customer’sownership of the conversation.”
    The Definition of Social CRM
  • Why Convergence?
  • Why Convergence?
    The benefits of enterprise collaboration are recognized mainstream
  • Why Convergence
    But…..It’s time to engage the customers, not just the staff
  • Why Convergence?
    IBM Institute for Business Value CEO 2010 Study
    88% of all CEOs say that getting closer to customer next five years top priority
    78% of all customers say they would be willing to co-create products with company
  • Why Convergence?
    Some areas for convergence between E20 & SCRM are clear cut
    Source: E20 Study, D3 Interim Report – IDC, Headshift, Tech4i2
  • Why Convergence?
    Convergence in a simplified sense means extending an invitation for the customer to collaborate with the company when the company is already doing it internally.
  • E20
    Knowledge creation/sharing
    Many to many communication
    Improve employee morale
    Behind the firewall
    Social CRM
    Knowledge creation/sharing
    Many to many communication
    Improve customer loyalty
    From outside the firewall to behind the firewall and vice versa
    Why Convergence?
  • Cultural Advantage of E20
    Corporate environment that invites collaboration and openness
    Cultural Disadvantage of E20
    Not exactly the same culture but not distinctly different
    Why Convergence?
    Still must be willing to cede control of conversation to the customer
  • Why Convergence?
    Closest sales culture is one that involves collaboration across departments, geography, roles
    Uses historical data and employee cooperation & opinion to optimize the chances of success in closing deals or identifying opportunity
    Enterprise collaboration
  • Core concerns
    Transparency – how much of what you share with employees, do you share with customers?
    Profile information
    Internal knowledge
    Regulatory impact
    Measuring value in return
    Technical – from outside the firewall to inside the firewall
    Why Convergence?
  • USEO
    Small French consulting firm for customized workforce collaboration systems
    Built external public community combined with internal collaboration
    Public community discussion on Web 2.0 tools
    1000 members
    Internal collaboration shared projects
    USEO consultants participate in community as experts using their shared knowledge
    Results – 4 clients so far.
    Why Convergence?
    Source: E20 Study, D3 Interim Report – IDC, Headshift, Tech4i2
  • The Collaborative Value Chain
  • Great customer experience historically required seamless enterprise value chain functioning
    Supply chain
    Demand chain (customer facing)
    Back office
    The Collaborative Value Chain
  • Collaborative Value Chain
    External Agencies
    Customer intersects company’s value chain in part
    Meaning CVC consists of EVC + a portion of the customer’s personal value chain
    Has serious implications for customer experience
    Part of PVC Intersects EVC
    Other Companies
    Everything Else Going On
  • The Collaborative Value Chain
    Notwithstanding all external conversations, social customer wants to get involved with companies they care about to:
    Solve part of their personal agenda
    Create and play
    Make themselves feel good
  • The Collaborative Value Chain
    The customer that concerns us is a subset of social customers
    This is the “lead user” (Eric Von Hippel, Democratizing Innovation)
    A passionate customer who actually cares enough to want to take care of their own needs - not build a product for you
    Everyone is self-interested (Principle #2)
  • Collaborative Value Chain
    Customers as partners, not “objects of a sale”
  • X
    The Value of Convergence: Co-Creation & Business
  • CUSTOMER-MADE CO-CREATION: “The phenomenon of corporations creating goods, services and experiences in close cooperation with experienced and creative consumers, tapping into their intellectual capital, and in exchange giving them a direct say in (and rewarding them for) what actually gets produced, manufactured, developed, designed, serviced, or processed.” (Trend-Watching)
    The Value of Convergence
    Source: Davos Economic Forum 2009, World Institute of Design
  • Co-creation
    When customers interact with companies (or even products per se) in a way that supports value creation and shapes the customer’s actual experience
    The Value of Convergence
  • It could be:
    A customer driven design competition
    A comment in an ideation community that is voted up by the members
    Product input by customers leading to changes by the product team
    An innovation “jam”
    Open source
    The Value of Convergence
  • Innovation - what it isn’t
    One way feedback
    A focus group
    A customer (or company) making their own product w/o collaboration
    The Value of Convergence
  • Procter & Gamble2010
    A Case Study
  • Case Study:Procter & Gamble
    300 brands
    23 of those brands $1 billion and up (e.g., Charmin, Crest, Folgers, Downy, Pringles, Tide)
    2 billion consumers affected w/6 billion as goal
    160 countries reached
    One of 30 companies on the Dow Jones Industrial Average (DJIA)
  • Case Study:Procter & Gamble
    “We have to create a great experience every time you touch the brand, and the design is a really big part of creating the experience and the emotion. We try to make a customer’s experience better, but better in her terms.”– A.G. Lafley, CEO Proctor & Gamble
    “I think its value that rules the world. There’s an awful lot of evidence across an awful lot of categories that consumers will pay more for better design, better performance, better quality, better value and better experiences.”– A.G. Lafley, CEO, Proctor & Gamble
  • Case Study:Procter & Gamble
    Key Performance Indicators
    Out of stock rates
    Total supply chain response time – from purchase at register to purchase of raw materials to replace product
    Shelf level quality – damaged or unappealing packages on store shelves – reduction to zero
    Pricing design from the shelf back – what price is appealing to customer and then reverse engineer to see if product can be produced to make that price point
    7.6% out of stock rates rather than 16.3% from 2003 to 2004
    Earnings growth went from 15% in 2002 to 20% in 2004
    Annual savings between $50 and $100 million
    Increased sales from $40 billion in 2002 to $43.4 billion in 2003
  • Case Study:Procter & Gamble
    Focused around the collaboration between company & user communities
    Vocalpoint – 600,000 moms
    Technology entrepreneur networks
    In 2001 – 20% of ideas, products, technologies external
    In 2004 – 35% of ideas, products, technologies external
    In 2010 – 50% of ideas, products, technologies external
    Virtual design, 3D simulation
  • Case Study:Procter & Gamble
    Connect + Develop
    Constant flow of needs being put out to anyone who cares to join the Connect & Develop program
    P&G ties entrepreneurs, inventors, suppliers etc together to collaborate on R&D that they need (e.g. packaging)
    Assets available for license
    Have reqs & have open forum
  • Case Study: Procter & Gamble
    Connect + Develop
    Proposals can be:
    Sent unsolicited
    External Network (e.g. Innocentive)
    Outreach from P&G to specific groups
  • Case Study:Procter & Gamble
    Connect + Develop Success Stories
    Several hundred products created via company/customer/partner collaboration
  • Case Study:Procter & Gamble
    50% of products come externally
    R&D productivity up 60%
    R&D as percentage of sales is down from 4.8% to 3.4%
    Over 100 new products
    Connect + Develop Works
    Author: CRM at the Speed of Light (4th Edition, February 2009)
    President: The 56 Group, LLC
    Managing Partner/CCO: BPT Partners
    EVP: National CRM Assn.
    Member: CRM Magazine CRM Hall of Fame, 2010
    CRM Magazine 2008 Top Influencer
    Named #1 CRM Influencer (Non Vendor) by InsideCRM 2007
    Named #1 CRM Blogger 2005, twice in 2007 by TechTarget and InsideCRM & InsideCRM 2008, Forecasting Clouds, 2010
    PGreenblog: http://the56group.typepad.com
    Social CRM: The Conversation: http://blogs.zdnet.com/crm
    Email: paul-greenberg3@comcast.net
    Twitter: http://www.twitter.com/pgreenbe
    Facebook: http://www.facebook.com/pgreenbe
    Cell phone: 703-551-2337