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IESE HSM Barcelona Presentation by Charlene Li

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Expomanagement presentation by Charlene Li at IESE in Barcelona, Spain, November 7, 2011

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IESE HSM Barcelona Presentation by Charlene Li

  1. 1The Power Of GroundbreakingSocial TechnologiesCharlene LiAltimeter GroupTwitter: @charleneliEmail: charlene@altimetergroup.com
  2. 2© 2011 Altimeter Group
  3. OUT of CONTROL?© 2011 Altimeter Group
  4. 4© 2011 Altimeter Group
  5. 5© 2011 Altimeter Group
  6. It’s about RELATIONSHIPS© 2011 Altimeter Group
  7. 7 Agenda  Strategy  Lead  Prepare© 2011 Altimeter Group
  8. 8 Agenda  Strategy  Lead  Prepare© 2011 Altimeter Group
  9. 9 Strategy Process Stages Formulation Discovery Ideation Planning Roadmap & Alignment© 2011 Altimeter Group
  10. 10 Strategy Process Stages Formulation Discovery Ideation Planning Roadmap & Alignment Set context • Determine key objectives • Level of strategy (corporate, biz unit, brand)© 2011 Altimeter Group
  11. 11 Align social with key strategic goals Examine your 2011 goals Pick ones where social will have an impact© 2011 Altimeter Group
  12. 12 Objectives differ by level Corporate Risk management Business unit Consistency Leadership development & culture across brands Social strategist Brand & COE Community Engagement Channel focus manager & metrics education Value metrics ROI metrics© 2011 Altimeter Group
  13. 13 Use appropriate metrics at each level Corporate Business metrics: revenue, CSAT, reputation. LOB/Geo Social media analytics: Insights, Stakeholders share of voice, resonance, WOM. Social Engagement metrics: fans, Strategist/Community followers, clicks. Manager© 2011 Altimeter Group
  14. 14 Strategy Process Stages - Ideation Formulation Discovery Ideation Planning Roadmap & Alignment Collect and prioritize strategic options • Metrics-based value assessment • Prioritize against objectives© 2011 Altimeter Group
  15. 15 Evaluate each initiative Impact Readiness • How does it • Are there support an people who objective? can do this? • What metrics • Is there matter? budget? Risks Priority • What are the • Does this risks if we do initiative this? enable other • What if we work? don’t?© 2011 Altimeter Group
  16. 16 Define Your Strategy With Objectives Dialog Learn Support Innovate© 2011 Altimeter Group
  17. How does social media matter to B2B? Chief stakeholders may not be using social media. • But lieutenants will be. Social media is impacting how B2B decisions are being made. • Background research • Expertise • Search results impact© 2011 Altimeter Group
  18. 18 People in B2B use social media for work Read user ratings/reviews for 62% business products/services Visit company profiles on social 62% media sites Visit company blogs 55% Participate in online business 51% communities or forums Ask questions on Q&A sites 49% Use Twitter to find or request 29% business information Source: 2009 Business.com Business Social Media Benchmarking Study (n=2,393)© 2011 Altimeter Group
  19. 19 Agenda  Strategy • Learn • Dialog • Support • Innovate  Lead  Prepare© 2011 Altimeter Group
  20. 20 Track brand mentions with basic tools What would happen if every employee could learn from customers?© 2011 Altimeter Group
  21. 21 Integrate monitoring with workflow Other providers Alterian BrandsEye Buzzmetrics Cymfony Sysmos Visible Tech.From Radian 6, to be acquired by Salesforce.com© 2011 Altimeter Group
  22. 22 Go beyond basic monitoring to analytics Monitoring & analytics support Deep monitoring to integrated into prep & support everyday workflow campaigns Centralized monitoring but not actionable in business unites Tracks brand mentions using basic tools (Google, Twitter) No monitoring Make course corrections in place nearly real-time. Use predictive analytics to anticipate demand.© 2011 Altimeter Group
  23. 23 Your customers want to be “known” I walk into my local grocery store© 2011 Altimeter Group
  24. 24 The store knows it’s me • Social check-ins (Four Square, Yelp, Facebook Places) • Near Field Communications© 2011 Altimeter Group
  25. 25 I get coupons to use right away© 2011 Altimeter Group
  26. 26 And connect my phone to in-store GPS shopping cart© 2011 Altimeter Group
  27. 27 Community insight platforms » Communispace and Passenger offer online focus groups solutions.© 2011 Altimeter Group
  28. 28 Pros and cons of private communities  Private communities give better control • Get input from specific communities • Can target specific hard-to-reach communities  But they are hard to create – and maintain • Who needs to be included? Excluded? • Provide non-monetary incentives/rewards for participating in the community • Deserves and requires dedicated community manager • Integrate into your company’s support and innovation process© 2011 Altimeter Group
  29. 29 Go beyond traditional data to understand your customers Demographic Geographic Psychographic Behavioral Socialgraphic© 2011 Altimeter Group
  30. 30 Socialgraphics asks key questions 1. Where are your customers online? 2. What social information or people do your customers rely on? 3. What is your customers’ social influence? Who trusts them? 4. What are your customers’ social behaviors online? 5. How do your customers use social technologies in the context of your products.© 2011 Altimeter Group
  31. 31 Engagement Pyramid Curating Producing Commenting Sharing Watching© 2011 Altimeter Group
  32. 32 Engagement Pyramid - Watching Watch videos Curating Read blog posts Listen to podcasts Read tweets Producing Read discussion forum posts Commenting Sharing Watching© 2011 Altimeter Group
  33. 33 Engagement Pyramid - Sharing Curating Share a link Share photos Share videos Producing Write a status update Retweet Commenting Sharing Watching© 2011 Altimeter Group
  34. 34 Engagement Pyramid - Commenting Curating Comment on a blog Write a review Rate a product Producing Participate in a discussion forum Commenting @Reply on Twitter Sharing Watching© 2011 Altimeter Group
  35. 35 Engagement Pyramid - Producing Curating Write a blog Create videos or Producing podcasts Tweet for an audience Commenting Sharing Watching© 2011 Altimeter Group
  36. 36 Engagement Pyramid - Curating Curating Moderate a wiki or discussion forum Producing Curate a Facebook fan page Commenting Sharing Watching© 2011 Altimeter Group
  37. 37 Engagement Pyramid Data United Spain Italy UK States Curating <1% <1% <1% <1% Producing 30.3% 38.7% 52.7% 26.1% Commenting 45.1% 37.4% 54.0% 34.4% Sharing 58.6% 63.6% 79.3% 63.0% Watching 82.2% 77.3% 89.3% 78.1% Source: Global Wave Index Wave 2, Trendstream.net, January 2010© 2011 Altimeter Group
  38. 38 Putting socialgraphics to work  Conduct research to identify the social behaviors of your target customer  Also identify: • Where are they online: Surveys or brand monitoring • Who do they trust: Surveys • Who do they influence: Survey or brand monitoring • How they use these tools in context of your products: Most often surveys.  When you first understand your customers, your marketing efforts will naturally unfold.© 2011 Altimeter Group
  39. 39 Summary - Learn  Listen and learn from your customers.  Start with basic monitoring tools, but quickly evolve them.  Invest in analytics that matter. Use metrics that are relevant to your business.  Understand the socialgraphics of your customers.© 2011 Altimeter Group
  40. 40 Agenda  Strategy • Learn • Dialog • Support • Innovate  Lead  Prepare© 2011 Altimeter Group
  41. 41 The New Normal  Conversations, not messages  Human, not corporate  Continuous, not episodic© 2011 Altimeter Group
  42. 42 Boeing uses blogs to engage© 2011 Altimeter Group
  43. 43 Kohl’s engages directly with customers© 2011 Altimeter Group
  44. 44 Vodafone UK uses Twitter to proactively communicate with customers Vodafone UK humanizes their Twitter account by including pictures of their support team and identifying different respondents by an “^” and the team member’s initials.© 2011 Altimeter Group
  45. 45 Spain Tourism used multiple channels to encourage dialog/sharing© 2011 Altimeter Group
  46. 46 B2B can also use Facebook • Develop relationships with job candidates, prospects, and current employees • Insert your content into newsfeed of fans • B2B is really people to people© 2011 Altimeter Group
  47. 47 Also encourage dialog inside the company© 2011 Altimeter Group
  48. 48 Premier Farnell supports engineers with community, and employees with “OurTube”© 2011 Altimeter Group
  49. 49 Getting people to share within your company  Give out Flip cameras/smartphones • Set up an internal “OurTube” • Transcribe conversations into emails and posts  Ask people for best practices, reactions, advice, opinion in areas of passion.  Recognize key contributors.© 2011 Altimeter Group
  50. 50 Tivo joined an existing community© 2011 Altimeter Group
  51. 51 Advocacy – A five-phase approach Phase 4: Phase 1: Phase 2: Phase 3: Phase 5: Put Internal Identify Build Foster Advocates Readiness Advocates Relationships Growth First© 2011 Altimeter Group
  52. 52 Tesco engages influencer blogs Blog post series highlights & drives traffic to blogs by Influencers. Twitter feed encouages engagement too.© 2011 Altimeter Group
  53. 53 Summary - Dialog  Have an authentic conversation with your customers that they want to have.  Engage across and through social communities  Engage off of your Web site.  Recruit an army of customer advocates.  Respond to your prospects and customers in real time.© 2011 Altimeter Group
  54. It’s about RELATIONSHIPS© 2011 Altimeter Group
  55. 55 Agenda  Strategy • Learn • Dialog • Support • Innovate  Lead  Prepare© 2011 Altimeter Group
  56. 56 Vodafone Italy and Spain take disparate, effective approaches to online support© 2011 Altimeter Group
  57. 57 Ritz-Carlton managers monitor Twitter for real-time service Property manager helped unhappy honeymooners© 2011 Altimeter Group
  58. 58 DellOutlet supports sales with Twitter© 2011 Altimeter Group
  59. 59 iRobot ties discussion boards into customers support iRobot escalates unanswered questions into support centers© 2011 Altimeter Group
  60. 60 Salesforce.com Service Cloud ties social channels back to customer data© 2011 Altimeter Group
  61. 61 Solarwinds’ community is strategic© 2011 Altimeter Group
  62. 62 Summary - Support  Real-time isn’t fast enough.  Integrate “social” support into your support infrastructure.  Scaling support to meet the groundswell will require that you create your own groundswell.© 2011 Altimeter Group
  63. 63 Agenda  Strategy • Learn • Dialog • Support • Innovate  Lead  Prepare© 2011 Altimeter Group
  64. 64 How to encourage innovation  Participate in crowdsourcing to understand how it works.  Create a culture of sharing and collaboration within the company.  Encourage “intrapreneurship”. • 85% of innovations involve optimizing one parameter. • Use social media to collect and prioritize ideas.  Reduce “power distance” with open leadership and management.© 2011 Altimeter Group
  65. 65 Italian Telecom launches small business social network Wind Italy displays support, innovation towards the small business community© 2011 Altimeter Group
  66. 66 Danish bank asks for help to improve mobile banking on Facebook© 2011 Altimeter Group
  67. 67 Fiat Mio, the world’s first crowdsourced car© 2011 Altimeter Group
  68. 68 Starbucks involves 50 people around the organization in innovation Over 100 ideas have been implemented© 2011 Altimeter Group
  69. 69 P&G uses reviews to improve products© 2011 Altimeter Group
  70. 70 P&G goes outside for innovation P&G made outside-in innovation a priority© 2011 Altimeter Group
  71. 71 Summary - Innovating  Innovating can come from any customer or employee interaction.  Dedicated innovation communities require significant commitment and nurturing.  Extend your firewall to bring customers into your organization.© 2011 Altimeter Group
  72. 72 Strategy Process Stages Formulation Discovery Ideation Planning Roadmap & Alignment Strategy statement • What you will do • What you won’t do Scenarios development • Implementation roadblocks • Company and leadership implications • Risk identification • Build resilience© 2011 Altimeter Group
  73. 73 What’s the Next Big Thing?© 2011 Altimeter Group
  74. 74 How Time Flies iPhone Facebook Nexus One Facebook Debut Connect Android Debut Timeline Jan 2007 July 2008 January 2010 Sept 2011 Facebook iPhone App iPad Debut Platform Store April 2010 May 2007 July 2008 Our notions of sharing & privacy have changed as well© 2011 Altimeter Group
  75. 75 Identify and prioritizing disruptions that matter User Experience Business Model Ecosystem Value •Is it easy for •Does it tap new •Does it change people to use? revenue the flow of •Does it enable streams? value? people to •Is it done at a •Does it shift connect in new lower cost? power from one ways? player to another?© 2011 Altimeter Group
  76. 76 1) Likenomics (credit to Rohit Bhargava) “How personal relationships, individual opinions, powerful storytelling and social capital are helping brands…become more believable.” Understand the supply, demand, and thus, value of Likes as social currency See http://bit.ly/rohit-likenomics for Rohit’s take© 2011 Altimeter Group
  77. 77 Likenomics evaluation  User experience impact - moderate • People with high social currency will enjoy benefits, richer experiences, receive psychic income. • People with low social currency will find ways to get it.  Business model impact – moderate • New economics create opportunity for people who understand Likenomics to leverage gas. • The cost of accessing social currency will increase, and raise barriers to entry.  Ecosystem value impact – none© 2011 Altimeter Group
  78. 78 2) Social Search – Beyond Friends to Interests Social sharing rises as a search ranking signal, esp in the enterprise Create a social content hub to gain traction Use microformats to highlight granularity (e.g. hProduct & hReview)© 2011 Altimeter Group
  79. 79 Social Search evaluation  User experience impact - Moderate • Search becomes more useful, relevant to people.  Business model impact – Moderate • SEO takes on a different dimension, rewards companies with social currency, personalized experiences.  Ecosystem value impact – Moderate • New power brokers are social data/profile players who capture activity data and profiles. • Google has little of either.© 2011 Altimeter Group
  80. 80 3) Big Data  Social monitoring merges with Web analytics • HOT: Omniture, Coremetrics/IBM, Webtrends  Technology like Hadoop makes it easy for companies to tap “Big Data” • E.g. New York Times making its archives public • Twitter archived by Library of Congress • Facebook Cassandra, Amazon Dynamo, Google BigTable  Data visualization tools make it easy to digest  Balancing privacy and personalization© 2011 Altimeter Group
  81. 81 Big Data evaluation  User experience impact - Low • Most users won’t directly experience Big Data.  Business model impact – High • New businesses and initiatives can be started at very low cost.  Ecosystem value impact – Moderate • Owners of Big Data repositories can assert control, demand payments for access.© 2011 Altimeter Group
  82. 82 4) Game-ification© 2011 Altimeter Group
  83. 83 TurboTax used “games” to encourage sharing and support Social design can enter training, collaboration, support, hiring© 2011 Altimeter Group
  84. 84 Gamification evaluation  User experience impact – High • Experiences get richer, more engaging  Business model impact – Moderate • Work gets done faster, cheaper. • New organizational structures and cultures emerge.  Ecosystem value impact – Low • Service providers will remain focused, boutique firms.© 2011 Altimeter Group
  85. 85 5) Curation© 2011 Altimeter Group
  86. 86 Curation evaluation  User experience impact – Moderate • User authority established from better curation, better content is organized well.  Business model impact – Moderate • Easier for businesses to create their content.  Ecosystem value impact – Moderate • Individuals challenge media and brands as authorities – and publishers that siphon off ad dollars.© 2011 Altimeter Group
  87. 87 Summary of disruptions User Business Value Experience Model Networks Likenomics Moderate Moderate Low Social Search Moderate Moderate Moderate Big Data Low High Moderate Gamification High Moderate Low Curation Moderate Moderate Moderate© 2011 Altimeter Group
  88. It’s about RELATIONSHIPS© 2011 Altimeter Group
  89. 89 Agenda  Strategy • Learn • Dialog • Support • Innovate  Lead  Prepare© 2011 Altimeter Group
  90. OUT of CONTROL?© 2011 Altimeter Group
  91. 91 Photo by stanjourdan via Flickr© 2011 Altimeter Group
  92. 92 Photo by Steve Rhodes via Flickr© 2011 Altimeter Group
  93. 93 Photo by Steve Rhodes via Flickr© 2011 Altimeter Group
  94. 94 Social media helps brands listen…© 2011 Altimeter Group
  95. 95 ..and respond. But it’s not enough.© 2011 Altimeter Group
  96. 96 Open Leadership Having the confidence and humility to give up the need to be in control, while inspiring commitment from people to accomplish goals© 2011 Altimeter Group
  97. 97 10 elements of openness Information Sharing • Explaining • Updating • Conversing • Open Mic • Crowdsourcing • Platforms Decision Making • Centralized • Democratic • Consensus • Distributed© 2011 Altimeter Group
  98. 98 Explaining strategic decisions Open book management Managing leaks© 2011 Altimeter Group
  99. 99 Updating with every day stuff© 2011 Altimeter Group
  100. 100 Kohl’s has conversations on Facebook© 2011 Altimeter Group
  101. 101 Open Mic: When people contribute© 2011 Altimeter Group
  102. 102 Crowdsourcing new Walkers flavour© 2011 Altimeter Group
  103. 103 Open platforms make it easy to partner and share Open architecture Open data access© 2011 Altimeter Group
  104. 104 Decision making models Centralized Democratic Consensus Distributed© 2011 Altimeter Group
  105. 105 Social technologies make distributed decision making possible Manage complex tasks Organizing for speed  170 employees  65,000 employees  100 modules with  16 Councils, “module owners” 50 Boards make  One person makes strategic decisions the final decision in  Joint leadership of each module each group© 2011 Altimeter Group
  106. 106 Determine how open you need to be with information to meet your goals Openness audit available at http://bit.ly/opennessaudit© 2011 Altimeter Group
  107. 107 Complete the Openness Audit© 2011 Altimeter Group
  108. 108 Traits of Open Leaders Authenticity Transparency© 2011 Altimeter Group
  109. 109 Transparency as an imperative© 2011 Altimeter Group
  110. 110 How Best Buy became open and social© 2011 Altimeter Group
  111. 111 Barry’s first post© 2011 Altimeter Group
  112. 112 The Premier Black Fiasco 6.8 million emails sent instead of 1,000 test© 2011 Altimeter Group
  113. Developing Open Leaders© 2011 Altimeter Group 2010
  114. “You can imagine the Chatterati creating as much value as an SVP in the organization by sharing their institutional knowledge and expertise - and we should look at compensation structures with that in mind.” - Marc Benioff, CEO of Salesforce.com© 2011 Altimeter Group 2010
  115. 115 Agenda  Strategy • Learn • Dialog • Support • Innovate  Lead  Prepare© 2011 Altimeter Group
  116. 116 Strategy Process Stages Formulation Discovery Ideation Planning Roadmap & Alignment Roadmap • Three year plan • Six month milestones • Capabilities assessment and preparedness • Metrics in place to measure progress© 2011 Altimeter Group
  117. 117 Open Research Report: Social Business Readiness Methodology •63 Interviews and briefings with ecosystem contributors •Survey data from 144 social business programs •Analysis of 50 social media crises Read the full report, Creative Commons© 2011 Altimeter Group
  118. 118 Climb the Social Business Hierarchy of Needs Holistic, Real-time Enlightenment Predictive Empowerment, Cross-Learning, Enablement Measurement Asset Inventory, Best Practice Sharing, Formation Center of Excellence Dedicated Team, Workflow, Crises Preparedness Safety Objectives, Policies, Education, Access Foundation© 2011 Altimeter Group
  119. 119 Assess your readiness to be social  Highlight where you are strong, where you need to develop.  Don’t create strategies that you can’t execute.  Demonstrate impact of strategic work.  Categories for readiness assessment • Customer Profile • Communication • Market Analysis • Mindset • Processes • Roles • Organizational Model • Stakeholders • Education • Monitoring • Reporting© 2011 Altimeter Group
  120. 120 Benchmarking Social Readiness (Before) December 2009© 2011 Altimeter Group
  121. 121 Benchmarking Social Readiness (After) April 2010© 2011 Altimeter Group
  122. 122 #1 Create a Culture of Sharing© 2011 Altimeter Group
  123. 123 Blogs establish thought leadership CEO Richard Edelman has been blogging consistently since September 2004.© 2011 Altimeter Group
  124. 124 #2 Discipline is Needed to Succeed Take reasonable action to fix issue and let customer know action taken Positive Negative Yes Yes No Does customer Do you want Assess the Evaluate the need/deserve more to respond? message purpose info? No Yes Unhappy Yes Are the facts No Gently correct the Response Customer? correct? facts No Yes Can you No Dedicated Yes Are the facts No add value? Complainer? correct? No Yes Is the Explain what is Respond in Thank the Comedian Yes problem being done to kind & share person Want-to-Be? being fixed? correct the issue. No Adapted from US Air Force Comment Policy Yes Let post stand and monitor.© 2011 Altimeter Group
  125. 125 Five ways companies organize around social media© 2011 Altimeter Group
  126. 126 #3 Ask the Right Questions about Value “We tend to overvalue the things we can measure, and undervalue the things we cannot.” - John Hayes, CMO of American Express© 2011 Altimeter Group
  127. 127 A Framework For Social Analytics© 2011 Altimeter Group
  128. The new lifetime value calculation • Percent that refer + Value of purchases • Size of their networks -Cost of acquisition • Percent of referred + Value of new customers people who purchase from referrals • Value of purchases + Value of insights • Percent that provide + Value of support support + Value of ideas ____________________ • Frequency and value of = Customer lifetime value the support Spreadsheets for all calculations available at open-leadership.com© 2011 Altimeter Group
  129. 129 35% increase in LTV captured Year 1 Year 2 Year 3 Number of customers 10,000 5,000 3,500 Gross profit of purchases $400,000 $200,000 $140,000 Cost of acquisition $150,000 $25,000 $17,500 Net profit $250,000 $175,000 $122,500 Traditional LTV/customer $74.89 Value of referrals $30,000 $45,906 $45,287 Value of insights $10,000 $5,438 $4,080 Value of support $5,438 $8,156 $6,120 Value of ideas $2,000 $1,000 $1,000 Net profit and value $297,438 $235,500 $178,986 Revised LTV per customer $101.48© 2011 Altimeter Group
  130. 130 Make decisions with metrics Find more fans with large networks Refers Large network Doesn’t refer Fans Refers Small network Doesn’t Encourage fans refer to make more referrals© 2011 Altimeter Group
  131. 131 #4 Prepare for Failure No relationships are perfect Google’s mantra: “Fail fast, fail smart”© 2011 Altimeter Group
  132. 132© 2011 Altimeter Group
  133. 133 Structure your risk-taking and failure systems to create resilience 1. Conduct pre- and post-mortems. • E.g. Johnson & Johnson after Motrin Moms. 2. Identify the top 5-10 worst case scenarios. • Develop mitigation and contingency plans. • E.g. Ford’s “lost” Fiesta. 3. Build in responsiveness. • E.g. Best Buy’s Black reward card. 4. Prepare yourself for the personal cost of failure.© 2011 Altimeter Group
  134. 134 Action plan to prepare for failure  Audit the last few failures you and your organization experienced. • 25% - what happened. • 25% - what you learned. • 50% - what you will do next.  Keep a failure file.  Identify risk-taking training needs.  Build failure into your planning and operating processes.  Create support networks for the inevitable failures.© 2011 Altimeter Group
  135. It’s about RELATIONSHIPS© 2011 Altimeter Group
  136. © 2011 Altimeter Group

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