If you take this graphic and multiply it numerous times and then add some matrixed and cross functional capabilities, you likely have something approximating your business organization.Of course, this is understandable and has its basis in the 1700s when Adam Smith noted in the “wealth of nations” that Business and Technology aim to produce more efficient organization of work through specialization of labor….moving forward to theories of Business Managementabout the best process of Getting people together to accomplish desired goals & objectives using available resources efficiently and effectively.Our org structures ensure we don’t trip over each other; they help keep us aligned; make sure that customer contact points are limited to those that should be and have special skills for contacting customers or solving their problems. We can invest resources in the real and trained product developers and the list goes on….But, lets contrast the rational and organizational benefits and constraints of this with….
The shape of the online universe. This image shows the hierarchical structure of the Internet, based on the connections between individual nodes (such as service providers). Three distinct regions are apparent: an inner core of highly connected nodes, an outer periphery of isolated networks, and a mantle-like mass of peer-connected nodes. The bigger the node, the more connections it has. Those nodes that are closest to the center are connected to more well-connected nodes than are those on the periphery. The core: At the center of the Internet are about 80 core nodes through which most traffic flows. Remove the core, and 70 percent of the other nodes are still able to function through peer-to-peer connections.
http://datamining.typepad.com/gallery/blog-map-gallery.htmlThis graph is essentially the same as the above with the nodes added. The size of the nodes represents the number of inlinks to the blog. The colours represent the URL - blogs hosted at the same domain have the same colour.27/6/2006, reciprocal links, partition=1, min weight=1
August 2006Blog Outreach Expands Beyond Tech SupportEngagement with anyone who commented about the company. Business model and other issues considered.August 2006Blog Outreach Expands Beyond Tech SupportEngagement with anyone who commented about the company. Business model and other issues considered.June 2007Dell joins TwitterWhy don’t we reach out and help bloggers with tech support issues?February 2008Twitter ExpandedStart experimenting with Twitter for business– another venue to help customers, but also thanking Dell customers. Outreach leads to some Twitters asking for help on purchases.May 2008Dell Outlet Achieves $0.5M in Sales via TwitterCommunity team active on TwitterJune 2009 $2M+ Sales via TwitterDell outlet on Twitter surpasses $2 million in sales with another $1 million dollars in sales at dell.com 2009Dell TechCenterA Collaborative Community for Datacenter pros grows by 400%December 2009Huffington Post BlogDell’s VP of Social Media and Community, Manish Mehta, begins blogging at Huffington PostJune 2009Global Twitter Revenues of $6.5 M Community across the social web =3.5 million direct customer connections
But if we see this as unmanageable or hugely challenging…most of our CEOs see all of this as a tremendous way to make their business more successful.IBMs global CEO study noted that..
People and Relationships are connecting and building Powerful Networks. We are moving from “mass communications” to individual connections and personalized information – perhaps at scaleData, information that used to be private in our legacy CRM and data bases has become very public ….an individual event such as a adverse drug reaction, a flaming battery or a faulty map…once resolved quietly over the phone or with a patch…can now take off across the Web, without the help of the New York Time or Wall Street Journal.The massive scale of all this data is overwhelming, it moves 24x7 and has created an avalanche of information. That is relatively unstructured and pays no attention to your business structureAnd so when we try for Rapid Response and in real time we either face organization churn and rigidity or Agility….and beside, we really cant predict what might “go viral”….on the weekend or during business hours. However, we know that others will be informed and have their opinions made up about our business by hundreds of others online…and they all approach all of this from a human perspective…not our traditional rational and factual news releases and company talking points.
Einstein once said: “The intuitive mind is a sacred gift and the rational mind is a faithful servant. We have created a society that honors the servant and has forgotten the gift.”
More places for your story“news” blogs alagigaom, tech crucnch, business insider akin to traditional mediaIndividuual bloggers…Image thanks to:http://www.blogrunner.com/snapshot/t/reference/timestopics/subjects/n/newspapers
PRSA, Counselors Academy June 2013
Building a Social Business:Opportunities and Challenges forCommunicators
2Business andTechnology:Aims for efficientorganization ofwork throughspecialization oflabor1776, Adam Smith, Wealth of Nations2
Successful Business Has Always Been AboutDelivering Value to Customers4BusinessValueCustomerValue
Communications &MarketingMass media in allformsPushing “news” &RecognitionLoud and Everywhere5
Before the Social Web: A Business Perspective YourCustomers and the World Wide Web6YourCompany.comCustomer ForumsCommunitiesMore Disruption to Come?
But despite all theprogress through thefirst part of the 20thCentury…75 Year Differencein Business LifeExpectancy since19367Source: DeloitteReport: John Hagel
8The Internet:Unlike othertechnologies, theWeb became lesspredictable as it wasnot just in the handsof business; openedmore opportunities tochange perspectivesanywhere it reached8
9The Web morphedfrom a static tointeractive mediumLess organized andnot structurally“neat”Like business isfamiliar with9
…andfundamentally theInternet becameabout peopleconnecting witheach other…Conversations areconversations notbusiness segments10Graphic thanks to @GapingvoidShare with others how & whyyou have great products/services…………….and more
Every day we create 70x the amount ofinformation in the Library of Congress
And the Information is Not Just Text“From the dawn of civilization until 2003, humankindgenerated five exabytes of data. Now we produce fiveexabytes every two days…and the pace is accelerating.”More than 1 billion unique usersvisit YouTube each month; Secondlargest search engine; 72 hours ofvideo are uploaded to YouTubeevery minute; 70% of YouTubetraffic comes from outside theUS. Facebook too: Facebookmore than 250 million photos areuploaded every single day.12
Six year Journey of Embedding Social to be a Better BusinessAugust 2006Blog outreachexpands beyondtech SupportAugust 2006Blog outreachexpands beyondtech supportDecember 2006Ratings andreviews onDell.comJuly 2006Direct2Dell launchedToday Direct2Dell exists inEnglish, Spanish, Norwegian,Japanese and Chinese.February 2006Michael Dell AsksWhy don’t we reach out and helpbloggers with tech support issues?January 2007StudioDell launchedDell’s video and podcast site,with helpful tips and tricks.Eventually expanding this intothe YouTube channel makingsharing easier.February 2007IdeaStorm LaunchedA voting based site allowingcustomers and others to submitideas for Dell.June 2007Dell joins TwitterDell launchesEmployeeStormInternal Blogs Launchedfor Employees.October 2007Michael Dell quote in Business WeekJeff Jarvis story quote, “These conversations aregoing to occur whether you like it or not. Do youwant to be part of that or not? My argument is youabsolutely do. You can learn from them. You canimprove your reaction time. And you can be abetter company by listening and being involved inthat conversation.”November 2007DellShares launchedThe first investor relations blog bya public company.January2008Dell alignsorganizationfor successFebruary 2008Twitter expandedMarch 2008Accepted Solutionslaunched on CommunityDell France begins OnlineCommunity OutreachMay 2008Dell Outlet achieves$0.5M in sales via TwitterCommunity team active on TwitterSmall Businessblog launchedApril 2008Inside IT launchedBlog focused on businesscustomers, and CloudComputing.June 2008Channel bloglaunchedJanuary 2009Dell Organizes in to4 customer focusedbusiness unitsSpring 2009Some Members ofCommunity andConversationsdeployed within eachof the new DellBusiness unitsJune 2009$2M+ Salesvia Twitter2009Dell TechCenterJune 2009Global Twitterrevenues of $6.5 MDecember 2009Huffington Post BlogMarch 2010China Micro-Blogging2006 2007 2008 2009 2010 201114Altimeter recognizes Dell with“Open Leadership Award forInnovation and Execution”(Oct.)Dell Social Media andCommunity Universitylaunched/5,000 teammembers trained byend of year(Aug.)DelllaunchesB2B pagesFacebook(Jun.)Dell named #1 mostsocial brand inranking of 100 topbrandsSocial Media ListeningCommand Center
B2C or B2B: It’s Both and all about, Business and PeopleSpecial Thanks to BlaM4C &Marshalus & more than 4000 customers
16Listen, Learn, Engage & Act2006: 4000 posts per day2012: 25,000 post per day
17Recognizing & Aligning a Powerful EcosystemConfidentialDell.comExternal Communities Our CommunitiesTeam Members
18Back to any business’ roots:customer connected employees areyour company’s rock stars18
19Empowering Employees:Policy and TrainingPrinciplesPolicyGovernanceTraining & tools
There is ROI Business Value: It is measurable in manyforms, there is not 1 number …
Look across the entire customer lifecycle. Social Mediacan be used everywhere …• Insight: Social mediaimproves reach and shareof voiceInsight: Social Mediaprovides high Business Valueand contributes to demandgen vehicle• Insight: SM keepscustomersengaged, providessolutions and improvesloyalty.• Insight: Social mediabased supportimproves sentimentand correlates withhigher revenueInsight: Establishedcausality betweensocial media activity andpurchaseAwarenessResearch andConsiderationDemand /Lead Genand SalesSupportCLV (loyalty)
CEOs/Business Leaders See Opportunity:Outperformers DeliverSource: IBM Global CEO Study: “Leading Through Connections”23
Social Business is Less Sizzle and Show? TheHard Work of Getting it Done for BetterBusiness Business24
II The New Public Relations:Strategically Rethinking What We Do
Influence, Word of Mouth: WhoMattersThere are only 4 Business Stakeholders:1. Customers2. Employees (and suppliers)3. Investors4. “Communities”
42Finding your connections; Telling stories that matteryou have to work harder and different
43The Web is an Interactive MediumBeyond Publication and “Telling” to Sparking: sharing and connecting43
MeasurementParachutes, helicopters, bicycles,hydraulics, flight, precise timemeasurement, wind energySocial media and connecting withpeople.• Measuring relationships andconnectivity
TO:• Individualized Information• Conversation, Connections,Stories• People and Relationships toconnect and build• Rapid Response/Agility• Real Time• Facts and Feelings• Powerful Networks• Communities• Listen and Collaborate• Leadership and Bottoms Uptoo• Empowered Employees andsubject matter expertsFROM:• Mass Media• Control and Push Messaging• Institutions to distribute andconnect• Issue Management• Deadlines• Just the Facts• Powerful Media• Target Audiences• Announce/All answers• Top Down• Corporate Spokesperson45Social Organizations and Business Think Different