IT’S NOT ABOUT BEING ON SOCIALIT’S ABOUT BEING SOCIAL4th Latin American RetailConference (CLAV’11)Keynote AddressSão Paulo...
A revolution is underwayBut it’s not about the technology
It’s about aparenthesis in human history  that’s coming to an end
Not so long ago… all business was social
Consumers and merchants would engage in      candid public conversations
Others would weigh in
The entire community would sometimes  become very engaged in the matter
Then business starting scalingThen business started scaling
But social could not scaleso it disappeared from business
Corporations started to develop                    some really bad habits Targeting  people                               ...
It‘s like companies are at war         with customers
Then came Social media
And because humans are hardwired to be socialSocial re-entered business and commerce with a splash
So to understand how to do business in a                 world of social mediaYou do not need to deeply understand    You ...
People need a sense of purposeand have an innate desire to behelpful to others
People value fairness and arewilling to spend a lot of effort topunish unfair treatment                   United breaks gu...
People like to do what others do                                Iphone 4 debut, Paris        Ipad 2 debut, Beijing
Some people love status more than money
Oh, and there is one more thing
76% of people think advertisers LIE
Homo economicus is dead    Long live homo sociologicus   People want a sense of purpose  People want to help and be helped...
So, to survive and thrive in the world of social media,                    you need to…     Accept that consumers are now ...
A social process is NOT…Runningtraditionalprograms usingsocial mediaplatforms
A social process is NOT…PR usingfake blogsrun bycorporate
A social process is NOT…Generatingleads byspamminghashtags onTwitter
A social process IS… Engaging human passion, sense of purpose, reciprocity  and fairness to get others, whose “job” it is...
How to design a social process?           Find your tribes   Both inside and outside the org  And get them to help one ano...
Find your tribes Both inside and outside the orgAnd get them to help one another     Across functional areas
How to find your tribes  Identify passions, lifestyles or needs that  people form groups (tribes) around and  where your p...
The product
The tribe
The store
The tribe
The company
The tribe
Find your tribesBoth inside and outside the orgAnd get them to help one another     Across functional areas
Find your tribes Both inside and outside the orgAnd get them to help one another     Across functional areas
Provide    proper    incentivesAnd get them to help one another             Identify             genuine             needs
Incentive design framework        Design                  Design                 Design       intrinsic                sta...
Gamification and badges
The SAP Developer Network                            Original Incentive System:                            Point system le...
Find your tribes Both inside and outside the orgAnd get them to help one another    Across functional areas
Social media is notjust about marketing
Is this marketing?   Is this customer support?Is this knowledge management?      Is this recruiting?
Social media are blurring the lines across many         previously distinct functions                Marketing            ...
Your operations is your new marketing                      United breaks guitars
And yet…Source: Tribalization of business study, (Beeline Labs, Deloitte et al. 2009)
Find your tribes Both inside and outside the orgAnd get them to help one another     Across functional areas
Designing social processesrequires a leap of faith for most         organizations
SegmentCustomerChannelHierarchy
Segment     CommunityCustomer     PartnerChannel      NetworkHierarchy     Crowd
Where do you start from?
My suggested social pilot project approach Step 1: Get to know your tribes (not your segments) their passions   and their...
RememberIt’s not about being on socialIt’s about being social
Inspiration – Further Reading
It's not about being ON social, it's about BEING social
It's not about being ON social, it's about BEING social
It's not about being ON social, it's about BEING social
It's not about being ON social, it's about BEING social
It's not about being ON social, it's about BEING social
It's not about being ON social, it's about BEING social
It's not about being ON social, it's about BEING social
It's not about being ON social, it's about BEING social
It's not about being ON social, it's about BEING social
It's not about being ON social, it's about BEING social
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It's not about being ON social, it's about BEING social

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Keynote address at the 4th Latin American Retail Conference (CLAV'11), Sao Paulo, Brazil, October 27, 2011

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  • Chris,

    Your wife Kim directed me to your site and I am very glad that she did. Having just gone through your ideas that the tech is not the point the conversation is and to concentrate on who it is that you are talking to make a a huge amount of sense. If you are ever talking in New York I would love to attend.

    Thanks,


    Patrick Williams
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It's not about being ON social, it's about BEING social

  1. 1. IT’S NOT ABOUT BEING ON SOCIALIT’S ABOUT BEING SOCIAL4th Latin American RetailConference (CLAV’11)Keynote AddressSão Paulo, BrazilOctober 2011Prof. Chris DellarocasBoston Universitywww.dellarocas.com
  2. 2. A revolution is underwayBut it’s not about the technology
  3. 3. It’s about aparenthesis in human history that’s coming to an end
  4. 4. Not so long ago… all business was social
  5. 5. Consumers and merchants would engage in candid public conversations
  6. 6. Others would weigh in
  7. 7. The entire community would sometimes become very engaged in the matter
  8. 8. Then business starting scalingThen business started scaling
  9. 9. But social could not scaleso it disappeared from business
  10. 10. Corporations started to develop some really bad habits Targeting people Segmenting people“Campaigning”
  11. 11. It‘s like companies are at war with customers
  12. 12. Then came Social media
  13. 13. And because humans are hardwired to be socialSocial re-entered business and commerce with a splash
  14. 14. So to understand how to do business in a world of social mediaYou do not need to deeply understand You are better off understanding the technologies humans – not as consumers, but as social creatures
  15. 15. People need a sense of purposeand have an innate desire to behelpful to others
  16. 16. People value fairness and arewilling to spend a lot of effort topunish unfair treatment United breaks guitars
  17. 17. People like to do what others do Iphone 4 debut, Paris Ipad 2 debut, Beijing
  18. 18. Some people love status more than money
  19. 19. Oh, and there is one more thing
  20. 20. 76% of people think advertisers LIE
  21. 21. Homo economicus is dead Long live homo sociologicus People want a sense of purpose People want to help and be helped People want to be treated fairly People want to do what others doPeople crave for recognition and status
  22. 22. So, to survive and thrive in the world of social media, you need to… Accept that consumers are now (re)empowered to act as social beings So, you need to… Transform your business processes into social processes
  23. 23. A social process is NOT…Runningtraditionalprograms usingsocial mediaplatforms
  24. 24. A social process is NOT…PR usingfake blogsrun bycorporate
  25. 25. A social process is NOT…Generatingleads byspamminghashtags onTwitter
  26. 26. A social process IS… Engaging human passion, sense of purpose, reciprocity and fairness to get others, whose “job” it isn’t to do so, to help you achieve your business goals For example…
  27. 27. How to design a social process? Find your tribes Both inside and outside the org And get them to help one another Across functional areas
  28. 28. Find your tribes Both inside and outside the orgAnd get them to help one another Across functional areas
  29. 29. How to find your tribes Identify passions, lifestyles or needs that people form groups (tribes) around and where your products can play a useful role
  30. 30. The product
  31. 31. The tribe
  32. 32. The store
  33. 33. The tribe
  34. 34. The company
  35. 35. The tribe
  36. 36. Find your tribesBoth inside and outside the orgAnd get them to help one another Across functional areas
  37. 37. Find your tribes Both inside and outside the orgAnd get them to help one another Across functional areas
  38. 38. Provide proper incentivesAnd get them to help one another Identify genuine needs
  39. 39. Incentive design framework Design Design Design intrinsic status material incentives incentives incentives “Love” “Glory” “Money” Feeling of purpose Competitions Reciprocity Points and ratings Monetary rewards Fairness Membership levels Virtual currencies Relationships Honor badges Perks and privileges Sheer Fun Leaderboards and rankings Manage interactions among incentive features
  40. 40. Gamification and badges
  41. 41. The SAP Developer Network Original Incentive System: Point system leading to personal rewards Results: Bullying behavior in the community New Incentive System: Point system leading to donation to charity Results: No more bullying Source: Francois Gossieaux
  42. 42. Find your tribes Both inside and outside the orgAnd get them to help one another Across functional areas
  43. 43. Social media is notjust about marketing
  44. 44. Is this marketing? Is this customer support?Is this knowledge management? Is this recruiting?
  45. 45. Social media are blurring the lines across many previously distinct functions Marketing Public Relations Sales Customer Service Product Development Consumer Research Recruiting Knowledge Management …
  46. 46. Your operations is your new marketing United breaks guitars
  47. 47. And yet…Source: Tribalization of business study, (Beeline Labs, Deloitte et al. 2009)
  48. 48. Find your tribes Both inside and outside the orgAnd get them to help one another Across functional areas
  49. 49. Designing social processesrequires a leap of faith for most organizations
  50. 50. SegmentCustomerChannelHierarchy
  51. 51. Segment CommunityCustomer PartnerChannel NetworkHierarchy Crowd
  52. 52. Where do you start from?
  53. 53. My suggested social pilot project approach Step 1: Get to know your tribes (not your segments) their passions and their needs Step 2: Think how you can help them (not sell to them, not get them to do something you think is worthwhile, even if it’s charity) Step 3: Figure out how you can best offer this help through online communities, twitter, facebook, youtube etc. Step 4: Assign joint responsibility for this project across departments (marketing and customer support is a good start)
  54. 54. RememberIt’s not about being on socialIt’s about being social
  55. 55. Inspiration – Further Reading
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