The Hyper-Social Organization<br />Book Launch
– July 22nd , 2010<br />

Overview<br />What is actually happening
out there?Understanding the true drivers of Social MediaHow do Hyper-Social Organizations think about their business?What do Hyper-Social Organizations do Differently, and WHY?A closer look at the IT implicationsQ&A<br />2<br />

Let’s start off with a
little example Human 1.0 vs. Web 2.0<br />The SAP Developer Community<br />3<br />

The SAP Developer Network<br />4<br
/>Stats:<br />1.4 M users<br />400K+ business experts<br />Content-rich<br />Original Incentive System:<br />Point system leading to personal rewards<br />The Results:<br />Bullying behavior in the community<br />New Incentive System:<br />Point system leading to donation to good cause<br />The Results:<br />No more bullying in the community<br />Web 2.0 or Human 1.0?<br />

A look at some NIH
+ Duke Research<br />Experiment #1:<br />People play Atari-style video game which allows them to earn or lose money for themselves<br />MRI scans shows that the pleasure side of the brain lights up – that same part that gets addicted to drugs<br />Experiment #2:<br />People play Atari-style video game which allows them to earn or lose money for a charity<br />MRI scans shows that the altruism side of the brain lights up – that same part that is responsible for social interactions<br />5<br />

So to understand how to
do business in a 2.0 world…<br />You are better off understanding Human 1.0 – not as individuals, but as hyper-social creatures<br />You do not need to understand the Web 2.0 technologies<br />6<br />

Let’s get a level deeper
on the Human 1.0…<br />7<br />

Why are social beings helping
one another?<br />Reciprocity = a Reflex<br />8<br />

Why are people going out
of their way to punish others?<br />Humans have an innate sense of fairness = keeps reciprocal society working<br />9<br />

Why do people like to
look like others?<br />Because humans have mirror neurons<br />10<br />

Why do we lie to
market researchers?<br />Because we lie to ourselves and others, and we tell people what we think they want to hear<br />11<br />

Why there is no real
(big) business in the long tail<br />Because we are a herding species, and a self-herding one to boot<br />12<br />

Why is status so important
(and why do we hoard it)?<br />Because it used to get us a better mate – proceed with caution: status works both ways!<br />13<br />

What are the important Human
1.0 Hyper-Social Traits<br />Reciprocity – it’s a reflex that allows us to be the only super-social species without all being brothers and sisters<br />Social framework of evaluating things vs. market framework<br />The role of fairness in assessing situations<br />The importance of looking cool and mimicking others<br />Herding and self-herding<br />(early research shows that social behavior does not change when it scales)<br />So to the extent that we can basically be human with what we know, and share it as freely as we possibly can, I think we’ll go a long way towards gaining a higher or stronger level of trust with the consumers.<br />Barry Judge, CMO Best Buy<br />http://www.cmotwo.com<br />14<br />

They think differently about their
business<br />Successful Hyper-Social Organizations<br />Informed by Tribalization of Business Study:<br />2009 – 430 Companies took the survey (52% external communities, 32 hybrid, and 12 internal)<br />15<br />

In the old days<br />Customer
<br />Support<br />PR<br />Marketing<br />Hierarchies within organizations<br />Old: legal employee contracts<br />Mostly 1-1 customer relationships<br />Old: legal customer contracts<br />16<br />

The new world order<br />Green
Enthusiasts<br />CIO’s<br />Business model tweak<br />PR<br />Customer support<br />Product Idea<br />Hierarchies within organizations<br />Old: legal employee contracts<br />New: cross-functional social contracts<br />Mostly 1-1 customer relationships<br />Old: legal customer contracts<br />New: social contracts<br />17<br />

Hyper-Social companies think differently: a
recap<br />Think tribe – not market segment<br />We need to find groups of people who have something in common based on their behavior, not their market characteristics<br />Think knowledge network – not information channel<br />The most important conversations in communities happen in networks of people, not between the company and the community.<br />Think human-centricity – not company-centricity<br />The human has to be at the center of everything you do, not the company<br />Think emergent messiness – not hierarchical fixed processes<br />People will want to see responses to their suggestions, even if it does not fit your community goals – FAST<br />“…affinity groups will quickly become the dominant social force in the emerging world economy, changing how we think about markets, fads, social movements, and, ultimately, power” <br />- Tom Hayes, Jump Point: How Network Culture is Revolutionizing Business – 2008<br />18<br />

What is it that they
do different?<br />Hyper-Social Organizations<br />19<br />

Hyper-Social Orgs – Leveraging Social
Business Processes<br />Successful Hyper-Social organizations turn their business processes into “social” processes<br />Why?<br />Scale<br />Increased quality<br />Increased passion<br />Increased WOM<br />20<br />

Turning a business process into
a social process<br />IS NOT:<br />Running traditional programs using social media platforms – PR by blogging press releases, lead gen by spamming community members, recruiting through spray and pray over Twitter, etc.<br />BUT IS:<br />Running programs based on human reciprocity and social contracts to get others, whose job it isn’t to do so, to help you do your job – customer support with the help of all employees and customers, product innovation with customers and detractors, etc.<br />TAPPING INTO PASSION, AND HUMAN 1.0 TRAITS<br />21<br />

22<br />

Infrastructure & Processes<br />Impact on
IT<br />23<br />

Don’t put a wall between
company and people<br />24<br />

Don’t put a wall between
company and people<br />25<br />

Embrace what people want<br />…and
give them access…it will increase passion & productivity!<br />26<br />

Do like IBM – get
rid of the firewall while protecting IP<br />Green Enthusiasts<br />CIO’s<br />Business model tweak<br />PR<br />Customer support<br />IP<br />IP<br />IP<br />Product Idea<br />…increase knowledge flows…and competitiveness<br />27<br />

Move with caution – it’s
not easy!<br />We need Social graphs<br />We need Social CRM<br />28<br />

29<br />The funnel is dead<br
/>Source: McKinsey Quarterly <br />http://www.mckinseyquarterly.com/The_consumer_decision_journey_2373 <br />

30<br />Today’s buying cycle: a
social-powered continuous loop process<br />Many more sources of information<br />Can still become part of consideration set<br />Tribes & Networks<br />Based on source: McKinsey Quarterly <br />http://www.mckinseyquarterly.com/The_consumer_decision_journey_2373 <br />

CRM – the makings of
a social process<br />Leave company centricity behind:<br />Prospects, lead nurturing, sales funnel, etc.<br />Put the customer at the center:<br />What does she need?<br />Will it work for her?<br />Increase knowledge flows, and think tribes<br />Who can help her internally?<br />Who can help her externally?<br />Embrace a messier process<br />Allow people to jump in and help<br />31<br />

Any questions? <br />Francois Gossieaux<br
/>Partner, Human 1.0 (formerly Beeline Labs)<br />e. francois@human1.com<br />w. http://www.human1.com<br />b. http://www.emergencemarketing.com<br />c. http://www.marketingtwo.net<br />p. http://www.cmotwo.com<br />t. http://twitter.com/fgossieaux<br />Ed Moran<br />Director of New Product Innovation, Deloitte<br />e. emoran@deloitte.com<br />w. http://www.deloitte.com<br />Jen McClure<br />President, Society for New Communications Research<br />e. jmcclure@sncr.org<br />w. http://www.sncr.org<br />Our new book: The Hyper-Social Organization<br />http://www.hypersocialorg.com<br />32<br />

Remember: We’re people.<br />