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Creating Value through Social Media_Teigland


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A presentation for Sweden's Public Relations Association on social media and social networks

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Creating Value through Social Media_Teigland

  2. 2. History tends to repeat itself…. Innovation, financial crisis, industrial revolution, … Steam engine Internal combustion engine Microelectronics Late 18 th C Late 19 th C Late 20 th C Schön 2008 Third industrial revolution?
  3. 3. Competitive advantage is increasingly based on an organization’s ability to change <ul><ul><ul><li>Of original Forbes 100 in 1917 </li></ul></ul></ul><ul><ul><ul><ul><li>61 companies ceased to exist by 1987 </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Of remaining 39, only 18 stayed in top 100 and their return was 20% less than overall market (1917 & 1987) </li></ul></ul></ul></ul><ul><ul><ul><li>Of companies in original S&P 500 in 1957 </li></ul></ul></ul><ul><ul><ul><ul><li>Only 74 remained in 1997 </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Of these only 12 outperformed S&P 500 in 1957-1998 period </li></ul></ul></ul></ul>Beer 2002
  4. 4. <ul><li>Did You Know: Shift Happens </li></ul><ul><li> </li></ul><ul><li>How are these trends affecting you and your organization? </li></ul>
  5. 5. How can we keep up? Cohen & Levinthal 1989 Growth Time Information and knowledge Human absorptive capacity
  6. 6. <ul><li>” No one knows everything, </li></ul><ul><li>everyone knows something, </li></ul><ul><li>all knowledge resides in humanity.” </li></ul>networks Adapted from Lévy 1997
  7. 7. Crowdsourcing: Capturing the wisdom of crowds <ul><li>What is it? </li></ul><ul><ul><li>Customer participation in business and business development </li></ul></ul><ul><li>Why the interest? </li></ul><ul><ul><li>Experience </li></ul></ul><ul><ul><li>Ownership </li></ul></ul><ul><ul><li>Engagement </li></ul></ul><ul><ul><li>Loyalty </li></ul></ul>Brayrie 2007
  8. 8. Creating new knowledge sources… Closed Expensive Complex Accurate Open Inexpensive Simple Close enough Hinton 2007
  9. 9. Shifting sources of value <ul><li>Open business model </li></ul><ul><ul><li>Competitive advantage through leveraging external resources (Chesborough 2003) </li></ul></ul><ul><ul><li>Permeable organizational boundaries </li></ul></ul><ul><ul><li>Redefinition of acceptable sources of value and knowledge </li></ul></ul><ul><li>Potential sources of value </li></ul><ul><ul><li>Users as organizational resource (von Hippel 1988 2005) </li></ul></ul><ul><ul><li>User interactions with organizations creates value through user-generated content (Di Gangi & Wasko forthcoming) </li></ul></ul>Di Gangi 2008
  10. 10. Leveraging external resources to find solutions and solve unsolved problems
  11. 11. eZ Systems and the eZ ecosystem: An open source business model eZ Partners Community Customers <ul><li>#1 open source content management software </li></ul><ul><li>Enterprise open source – “Grow the cake” </li></ul><ul><li>60 Employees in 8 countries (Europe & Asia) </li></ul><ul><li>230+ Partners </li></ul><ul><li>5000+ Customers </li></ul><ul><li>30,000+ Community members </li></ul> Skien, Norway
  12. 12. Traditional marketing vs social media marketing
  13. 13. A new workforce is appearing… Mahaley 2008, Merrill Lynch 1999, Beck and Wade, Prensky “ Digital Immigrants” “ Digital Natives” Company loyalty Work ≠ Personal Learning=Behind the desk Professional loyalty Work = Personal Learning=Fun and games
  14. 14. Using the internet to build relationships, find information and knowledge, solve problems, and learn Boyd et al. 2008, Rey 2008 Communication Personal Media Self-expression Collective Intelligence Content Production
  15. 15. Building skills in virtual environments <ul><li>My CV </li></ul><ul><li>Leading a virtual team of 30 individuals from across the globe </li></ul><ul><li>Creating and successfully executing strategies under pressure </li></ul><ul><li>Managing cross-cultural conflict without face-to-face communication </li></ul>
  16. 16. Social media <ul><li> It's all that college graduates know now, and if companies want to be successful, they'd better make use of social media for recruitment purposes…….These people are our future educators, leaders, healthcare professionals, entertainers, you name it...snagging the cream of the crop is best done via social media. </li></ul>-US Recuiting consultant
  17. 17. Increasing pressure for the right knowledge at the right place at the right time Formal organization/ Hierarchy Social organization / Heterarchy Teigland et al. 2005
  18. 18. Social media help overcome these challenges <ul><li>Finding and connecting with people internally and externally </li></ul><ul><li>Building communities </li></ul><ul><li>Sharing information & knowledge </li></ul><ul><li>Solving problems & finding solutions </li></ul><ul><li>Learning informally </li></ul><ul><li>Creating shared understanding </li></ul><ul><li>Creating shared language and norms </li></ul><ul><li>Attracting and retaining talent </li></ul>Communication Personal Media Self-expression Collective Intelligence Content Production
  19. 19. Hinton 2007 Social media enable communities
  20. 20. Role of communities of practice in organizations <ul><li>Create: Own & develop knowledge </li></ul><ul><ul><li>Develop & manage good practice </li></ul></ul><ul><ul><li>Build organizational competence </li></ul></ul><ul><li>Organize: Develop & manage materials </li></ul><ul><ul><li>Develop tools, guidelines, templates </li></ul></ul><ul><ul><li>Manage databases </li></ul></ul><ul><li>Disseminate: Connect people across boundaries </li></ul><ul><ul><li>Who knows what </li></ul></ul><ul><ul><li>Home in changing organization & an uprooted society </li></ul></ul><ul><li>Embed: Share ideas & insights </li></ul><ul><ul><li>Share tacit, complex ideas & insights </li></ul></ul><ul><ul><li>Help each other solve problems & find innovations </li></ul></ul>
  21. 21. Why do people participate in a community? Wasko & Faraj 2000 <ul><ul><li>Useful information </li></ul></ul><ul><ul><li>Specific answer </li></ul></ul><ul><ul><li>Personal gain </li></ul></ul><ul><ul><li>Enjoyment </li></ul></ul><ul><ul><li>Learning </li></ul></ul><ul><ul><li>Reputation </li></ul></ul><ul><li>Pro-social behavior </li></ul><ul><ul><li>Reciprocity </li></ul></ul><ul><ul><li>Advancing the community </li></ul></ul>Tangible returns 26% Intangible returns 24% Community interest 50%
  22. 22. eZ Wire enables global conversations
  23. 23. Serena Software: Strengthening internal and external relationships through Facebook <ul><li>#1 Applications Lifecycle Management (ALM) & business mashup </li></ul><ul><li>96 of Fortune 100 as customers </li></ul><ul><li>800 employees in 18 countries across globe </li></ul><ul><li>Facebook Fridays: One hour every Friday on Facebook to find fun and connect with co-workers, customers, family, and friends </li></ul><ul><li>Average employee age: 46 </li></ul><ul><li>27 year old Silicon Valley company </li></ul><ul><li>>90% of employees on FB </li></ul>Teigland & Hustad 2009
  24. 24. IBM’s Atlas shows the social network of a topic and how to get to someone Poole 2008
  25. 25. Improving recruiting efforts Job Fairs Accenture recruits in Second Life since 2006 – this recruiting has since paid for itself A manager at a high-tech multinational recruits senior level employees through Orkut, resulting in reduced turnover and headhunter fees 2008, Hustad & Teigland 2008
  26. 26. From organization-generated content (OGC) to user-generated content (UGC) Content created by a user to be used by a user Content created by an organization to sell to a user Di Gangi 2008
  27. 27. Atlas Copco on Facebook
  28. 28. GE Healthcare on Twitter
  29. 29. Examples at Dell DiGangi 2008, Brayrie 2007 Self-support Product development
  30. 30. Motorola Q – Creating content
  31. 31. Scania Social Media Newsroom “ One of the best B2B newsrooms I have seen.” -Bodnar, May 10, 2009
  32. 32. Scania Social Media Newsroom – Blog comments <ul><li>Content is clearly something that Scania has made a priority….aggregate, categorized, and tagged. </li></ul><ul><li>But only written content is traditional product releases. …no white papers, case studies, or other written documents that could add additional value for a site visitor </li></ul>
  33. 33. Engaging readers in content creation
  34. 34. Suggestions for Erica, Internet Communications Manager <ul><li>Include sales materials for sales team to download and allow comments to help generate feedback from customers. </li></ul><ul><li>Showcase more customer experiences: written case studies, testimonials, videos with customers, etc. </li></ul><ul><li>Focus on search add content that is focused on your key search terms as a way to build awareness with a new audience. </li></ul><ul><li>Add a live chat function to answer customer questions or media questions in real-time. </li></ul>
  35. 35. Companies are turning to virtual worlds to facilitate creativity and innovation <ul><li>Public and completely private virtual business worlds (immernets) to recruit, train, collaborate, and innovate </li></ul><ul><li>Accenture, Cisco, IBM, Intel, Johnson & Johnson, Motorola, Novartis, Philips, Sun, Unilever, ….. </li></ul>
  36. 36. No financial crisis in VWs? <ul><li>Increasing members </li></ul><ul><li>Increasing companies </li></ul><ul><li>Increasing turnover </li></ul>Wonderland
  37. 37. Towards 3-D Internet Level of Interaction Time Hamilton 2008 Individual - Web 1.0 Thinking Mosaic, Prodigy, Compuserve, AOL, Netscape Connected Web 2.0 Thinking Facebook, Friendster, Yahoo, Blogger, Wikipedia, eBay, Typepad, LinkedIn. Amazon, MySpace, Textamerica, Delicious, HubPages SENSORY 3D Internet Thinking SecondLife, Active Worlds, There, SimsOnline, Club Penguin, World of Warcraft, 3D planets, ToonTown, Habbo, VSlide, Protosphere
  38. 38. Improving virtual teaming and cross-cultural skills Task: To build a bridge in your virtual team Designed by Duke CE and Stockholm School of Economics
  39. 39. Improving internal effectiveness Bringing together global brand managers
  40. 40. Co-creating solutions for today… Philips Design Group Lead-user innovation workshops
  41. 41. HSB: creating tomorrow’s solution while attracting employees and customers today Building the house of the future in a competition with architecture students HSB: One of Sweden’s largest real estate management companies
  42. 42. China is making big efforts in Virtual Worlds! <ul><li>A “virtual economy district – a world where millions will work, communicate, and be in love” </li></ul><ul><li>Reaching out to the 150 mln overseas Chinese </li></ul><ul><li>7 million inworld at same time </li></ul><ul><li>Five virtual banking licenses </li></ul><ul><li>auctioned for $404,000 </li></ul>, “ The real China is only a piece of land. We believe that there must be a China in the virtual world and the real world.” Robert Lai, Chief Scientist, CRD
  43. 43. 3D internet Before the first sheet of aluminum is even bent for production, the passengers will have flown, the crew will have serviced, and the pilots will have flown the plane. CEO of Boeing supplier
  44. 44. “ I think there’s a world market for maybe five computers.” Thomas Watson, Chairman of IBM, 1943 “ There is no reason anyone would want a computer in their home.” Ken Olson, President, Chairman and Founder of Digital Equipment Corporation, 1977 “ Heavier-than-air flying machines are impossible.” Lord Kelvin, President, Royal Society, 1895
  45. 45. Sessions introducing VWs NY HRPS March 11, 2009 Do you want to learn more?
  46. 46. Match the tool to the purpose Tool Purpose Example Blogs/Microblogs Conversation Relationship building Information sharing Getting customer and employee feedback Sun Microsystems Ericsson GE Healthcare Discussion forums Self-support Solution finding Customer engagement Dell Wikis Collaboration Mutual problem solving Engagement Motorola Swedbank Social networking sites Community development Relationship building Building loyalty Solution finding Serena Software Victoria’s Secret Jeep Virtual worlds Collaboration Innovation Engagement Knowledge accidents Nokia Philips IBM
  47. 47. Are there any b enefits from social media, or is it all hype? Poole 2008: IBM Global Technical Services Knowledge Community of Practice Business Impact Survey 2007, completed by approximately 2,300 respondents
  48. 48. Are there any numbers to back this? <ul><li>Among the clients surveyed by Select Minds, corporate social networking resulted in: </li></ul><ul><li>Productivity Contributions: Increase in productivity by an average of 10% </li></ul><ul><li>Retention Contributions: Increase in retention by an average of 9% </li></ul><ul><li>Increases in New Business: Increase new business by an average of 12% </li></ul><ul><li>Rehiring Former Employees: On average, rehires made through their Corporate Social Networking program…. </li></ul><ul><ul><li>become fully productive 49% faster than all experienced hires </li></ul></ul><ul><ul><li>became Star Performers (66%), versus 26% of experienced hires </li></ul></ul>Select Minds 2008: &quot;Corporate Social Networking: Increasing the Density of Workplace Connections to Power Business Performance&quot;
  49. 49. Social media at your company? <ul><li>How are social media used internally and externally at your company? </li></ul><ul><li>Are there any benefits? </li></ul><ul><li>What could you do to better leverage social media? </li></ul><ul><li>Some search words for search engines </li></ul><ul><ul><li>Social media, Social networking, Web 2.0, Enterprise 2.0 </li></ul></ul><ul><li>Some sites </li></ul><ul><ul><li>Company homepage blogs </li></ul></ul><ul><ul><li> </li></ul></ul><ul><ul><li> </li></ul></ul><ul><ul><li> </li></ul></ul><ul><ul><li> </li></ul></ul>
  50. 50. Users create their own meanings Wesch 2008
  51. 51. There is nowhere to hide Fortune, Rey 2008 Monitor social media sites and react in a timely fashion
  52. 52. There are implementation challenges…. <ul><li>Difficulty to measure and validate value of web 2.0 </li></ul><ul><li>Knowledge trading and leakage outside of firm </li></ul><ul><li>Social overload and role conflict </li></ul><ul><li>Poor organizational stewardship </li></ul><ul><li>Resistance from top management </li></ul>Web 2.0 and social networking are typically of a more grassroots nature – their implementation in more traditional hierarchical organizations may result in tension between employees and management Hustad & Teigland 2008
  53. 53. Empower employees to make the right decisions <ul><li>Trust your employees and don’t ban social media </li></ul><ul><li>Use wikis to enable employees to create the company guidelines, eg IBM </li></ul><ul><li>Provide examples of good use and poor use </li></ul><ul><li>Yahoo’s best practice guidelines for blogging ( </li></ul><ul><ul><li>Be respectful of your colleagues </li></ul></ul><ul><ul><li>Get your facts straight </li></ul></ul><ul><ul><li>Provide context to your argument </li></ul></ul><ul><ul><li>Engage in private feedback </li></ul></ul>When trusted, employees feel empowered to do the right thing!
  54. 54. Management cannot mandate social relationships My company has blocked my computer from accessing most of the social media sites. But I feel so cut off from my network. So, now I just connect through my phone.
  55. 55. Individuals make choices about how they use their knowledge… <ul><li>Knowledge resides in the minds of individuals </li></ul><ul><li>Individuals make own choices about knowledge </li></ul><ul><ul><li>Share openly for the benefit of the organization </li></ul></ul><ul><ul><li>Protect and use only in work practice </li></ul></ul><ul><ul><ul><li>Perception that an individual’s value is diminished if share knowledge </li></ul></ul></ul><ul><ul><ul><li>Knowledge is power </li></ul></ul></ul><ul><ul><li>Protect and use only in external relationships for own benefit </li></ul></ul><ul><ul><ul><li>Knowledge leakage </li></ul></ul></ul><ul><ul><li>Leave the firm and take knowledge with them </li></ul></ul>
  56. 56. IBM’s blogging policy & guidance, created by the employees Policies based on IBM’s Business Conduct Guidelines Apply internally and externally Available on “ blogging guidelines” Adapted from Poole 2008
  57. 57. Enable usage of public & private space Private Space Public Space McDermott 2001
  58. 58. Communicate the competitive landscape What is our strategy? 1. Who are our customers ? 2. What products do we sell? 3. How do we create value?
  59. 59. <ul><li>“ Leading by values is very different …..It is empowering .. Rather than burden our people with excessive controls, we are trusting them to make decisions and to act based on values... </li></ul><ul><li>In today's world, where everyone is so interconnected and interdependent …. If we're going to solve the biggest, thorniest and most widespread problems in business and society, we have to innovate in ways that truly matter. And we have to do all this by taking personal responsibility for all of our relationships - with clients, colleagues, partners, investors and the public at large. </li></ul><ul><li>This is IBM's mission as an enterprise, and a goal toward which we hope to work with many others, in our industry and beyond. </li></ul>Samuel Palmisano, IBM Chairman, President, and CEO
  60. 60. Treat like any change project Kotter 1996 2. Form a powerful guiding coalition 1. Establish a sense of urgency 3. Create a vision 8. Anchor new approaches 4. Communicate the vision 5. Empower others to act on the vision 6. Plan for and create short-term wins 7. Consolidate improvements and produce more change
  61. 61. Plan for and create short-term wins 1. Create obtainable targets 2. Encourage & convince people that targets can be reached 3. Recognize and reward “winners” Communicate the wins Adapted from Kotter 1996
  62. 62. Watch out! Forces converging…. <ul><li>People </li></ul><ul><li>Net generation </li></ul><ul><li>Neuroplasticity </li></ul><ul><li>New demands </li></ul><ul><li>Technology </li></ul><ul><li>Social software (Web 2.0) </li></ul><ul><li>Broadband access </li></ul><ul><li>Mobile hardware </li></ul><ul><li>Business Environment </li></ul><ul><li>Globalization </li></ul><ul><li>Pace and change </li></ul><ul><li>Information load </li></ul>Mahaley 2008
  63. 63. So, what does all this mean? <ul><li>Organizations have to develop their networks globally - both inside and out </li></ul><ul><li>Organizations have to leverage social media </li></ul><ul><ul><li>To win the war for talent </li></ul></ul><ul><ul><li>To innovate for competitive advantage </li></ul></ul><ul><li>Organizations have to develop their employees’ network leadership skills </li></ul><ul><li>Organizations have to cultivate an open, knowledge sharing culture </li></ul>I f you love knowledge, set it free …
  64. 64. Network dynamics impact creativity and innovation B A Teigland 2003 Poor creativity and innovative performance High creativity and innovative performance
  65. 65. All the things right, but not the right thing!
  66. 66. &quot;...when the rate of change outside an organization is greater than the change inside, the end is near....&quot; Jack Welch…
  67. 67. Changing the mindset A new opportunity???
  68. 68. Thanks and see you in world! Karinda Rhode aka Robin Teigland [email_address] Photo by H. Lindholm, Metro
  69. 69. Sources and acknowledgements <ul><li>Books </li></ul><ul><ul><li>Barabási, Linked: The New Science of Networks . Perseus, 2002 </li></ul></ul><ul><ul><li>Burt, Structural Holes, 1992 </li></ul></ul><ul><ul><li>Castells, The Rise of the Network Society . Blackwell, 2000 </li></ul></ul><ul><ul><li>Cross & Parker, The Hidden Power of Social Networks . Harvard Business School, 2004 </li></ul></ul><ul><ul><li>Gladwell, The Tipping Point . Abacus, 2001 </li></ul></ul><ul><ul><li>Scott, Social Network Analysis . Sage, 2000 </li></ul></ul><ul><ul><li>Teigland, Knowledge Networking , SSE, 2003 </li></ul></ul><ul><ul><li>Teten & Allen, The Virtual Handshake . American Management Assoc., 2007 </li></ul></ul><ul><li>Homepages </li></ul><ul><ul><li>Wayne Baker, </li></ul></ul><ul><ul><li>Stephen Bird, </li></ul></ul><ul><ul><li>Steve Borgatti, </li></ul></ul><ul><ul><li>Rob Cross, </li></ul></ul><ul><ul><li>International Network for Social Network Analysis </li></ul></ul><ul><ul><li>David Krackhardt, </li></ul></ul><ul><ul><li>Valdis Krebs, </li></ul></ul><ul><ul><li>Fredrik Liljeros, </li></ul></ul><ul><ul><li>Steve Mahaley, </li></ul></ul><ul><ul><li>James Moody, </li></ul></ul><ul><ul><li>Giancarlo Oriani, (In Italian) </li></ul></ul><ul><ul><li>Barry Wellman, </li></ul></ul>
  70. 70. Sources and acknowledgements (cont’d) <ul><li>Articles and Research Papers </li></ul><ul><ul><li>Cross, Baker, & Parker, “What creates energy in organizations?”, Sloan Management Review , Summer 2003. </li></ul></ul><ul><ul><li>Cross, Parise, & Weiss, “Driving Strategic Change with a Network Perspective”, Network Roundtable working paper, 2006. </li></ul></ul><ul><ul><li>Kleinbaum, Stuart, Tushman, Communication (and Coordination?) in a Modern, Complex Organization, HBS working paper, </li></ul></ul><ul><ul><li>Ibarra & Hunter, “How Leaders Create and Use Networks”, HBR, 2007. </li></ul></ul><ul><ul><li>Coleman, D. Virtual Team Spaces, 2006. </li></ul></ul><ul><ul><li>Connaughton, SL & Daly, JA, “Leading from Afar: Strategies for Effectively Leading Virtual Teams” in Virtual Collaborative Teams: Process, Technologies, & Practice (S. H. Godar & S. P. Ferris, Eds.). </li></ul></ul><ul><ul><li>Lipnack, J. & Stamps, Virtual Teams: Reaching Across Space, Time, and Organizations with Technology . John Wiley & Sons, Inc.: New York, 1997. </li></ul></ul><ul><ul><li>Maznevski, M. High performance from global virtual teams, 2001. </li></ul></ul><ul><ul><li>Ruuska, I. & Teigland, R. 2009 (Forthcoming). “Ensuring Project Success through Collective Competence and Conflict Management in Public-private Partnerships: A Case Study of a Swedish Triple Helix e-government Initiative”. International Journal of Project Management . </li></ul></ul><ul><ul><li>Schermerhorn, Jr., J., Management , 2004. </li></ul></ul>
  71. 71. Sources and acknowledgements (cont’d) <ul><li>Presentations </li></ul><ul><ul><li>Gurteen, Online Information 2007: KM goes Social, </li></ul></ul><ul><ul><li>Poole, IBM: Web 2.0 goes to work,’ </li></ul></ul>