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Minnesota Ad Federation
Social Business 9/22/10
Dachis Group | Minnesota AdFed 2010




® 2010 Dachis Group. All Rights Reserved   2
Puppy.




® 2010 Dachis Group. Confidential and Proprietary   3
Dachis Group | Minnesota AdFed 2010




 15 Years ago we thought we were about to embark
 on a revolution to pioneer a new way of doing
 business.




® 2010 Dachis Group. All Rights Reserved           4
Dachis Group | Minnesota AdFed 2010




 We Passionately Believed that we could
 fundamentally change the world of commerce,
 communications, and culture.




® 2010 Dachis Group. All Rights Reserved       5
Dachis Group | Minnesota AdFed 2010




Everything that could be digital...would be.
Because it would be faster, better and cheaper.




® 2010 Dachis Group. All Rights Reserved          6
Dachis Group | Minnesota AdFed 2010




“In the digital world, User Experience is the
key definer of value”




® 2010 Dachis Group. All Rights Reserved        7
Dachis Group | Minnesota AdFed 2010




® 2010 Dachis Group. All Rights Reserved   8
Dachis Group | Minnesota AdFed 2010




® 2010 Dachis Group. All Rights Reserved   9
Dachis Group | Minnesota AdFed 2010




® 2010 Dachis Group. All Rights Reserved   10
Dachis Group | Minnesota AdFed 2010




Exciting times




® 2010 Dachis Group. All Rights Reserved   11
Dachis Group | Minnesota AdFed 2010



   We created a methodology, a lexicon, and an entire
   industry around making valuable digital user
   experiences.




® 2010 Dachis Group. All Rights Reserved                12
Dachis Group | Minnesota AdFed 2010




Interesting times




® 2010 Dachis Group. All Rights Reserved   13
Dachis Group | Minnesota AdFed 2010




Change




® 2010 Dachis Group. All Rights Reserved   14
Inescapable Trends




® 2010 Dachis Group. Confidential and Proprietary   15
Dachis Group | Minnesota AdFed 2010




® 2010 Dachis Group. All Rights Reserved
Dachis Group | Minnesota AdFed 2010




Our world is truly getting wired




                                           Source: Nielsen

® 2010 Dachis Group. All Rights Reserved
Dachis Group | Minnesota AdFed 2010




The wires are getting faster




      Source: Pew Internet & American Life Project, July 2008

® 2010 Dachis Group. All Rights Reserved
Dachis Group | Minnesota AdFed 2010




IT consumerization is upon us




® 2010 Dachis Group. All Rights Reserved
Dachis Group | Minnesota AdFed 2010




Consumer web apps proliferate




® 2010 Dachis Group. All Rights Reserved   20
Dachis Group | Minnesota AdFed 2010




      We buy supercomputers at the mall




Source: Apple

     ® 2010 Dachis Group. All Rights Reserved
Dachis Group | Minnesota AdFed 2010




And provide access to everyone...




                                           Source: One Laptop Per Child

® 2010 Dachis Group. All Rights Reserved
Dachis Group | Minnesota AdFed 2010




      We share opinions on everything




Source: antigone78 on Flickr

      ® 2010 Dachis Group. All Rights Reserved
Dachis Group | Minnesota AdFed 2010




        OMG



® 2010 Dachis Group. All Rights Reserved
Dachis Group | Minnesota AdFed 2010




Cloud computing is a reality




® 2010 Dachis Group. All Rights Reserved
Dachis Group | Minnesota AdFed 2010




Work demands an “always on” mentality




® 2010 Dachis Group. All Rights Reserved
Dachis Group | Minnesota AdFed 2010




Social technologies keep us informed




Source: McKinsey & Company


® 2010 Dachis Group. All Rights Reserved
But not so fast...




® 2010 Dachis Group. Confidential and Proprietary
Dachis Group | Minnesota AdFed 2010




Work still happens in silos




® 2010 Dachis Group. All Rights Reserved
Dachis Group | Minnesota AdFed 2010




We have endless point solutions not platforms




® 2010 Dachis Group. All Rights Reserved
Dachis Group | Minnesota AdFed 2010




Businesses are overloaded with data




® 2010 Dachis Group. All Rights Reserved
Dachis Group | Minnesota AdFed 2010




      Consumers are increasingly skeptical




Source: Edelman

     ® 2010 Dachis Group. All Rights Reserved
Dachis Group | Minnesota AdFed 2010




Participation isnʼt scalable...




® 2010 Dachis Group. All Rights Reserved   33
Dachis Group | Minnesota AdFed 2010




...because individuals donʼt scale




® 2010 Dachis Group. All Rights Reserved   34
Dachis Group | Minnesota AdFed 2010




People are people




     Source: CarbonNYC on Flickr


® 2010 Dachis Group. All Rights Reserved   35
Dachis Group | Minnesota AdFed 2010




Communication remains largely unidirectional




® 2010 Dachis Group. All Rights Reserved
Dachis Group | Minnesota AdFed 2010




      How will you govern?




Source: Ambidanze on Flickr
      ® 2010 Dachis Group. All Rights Reserved
Dachis Group | Minnesota AdFed 2010




What policies do you have in place?




® 2010 Dachis Group. All Rights Reserved
Dachis Group | Minnesota AdFed 2010




While the shape of the business world has changed...




® 2010 Dachis Group. All Rights Reserved           39
Dachis Group | Minnesota AdFed 2010




Most Business Technology Systems, Business
Process, and Business Cultures have not yet
adapted...




® 2010 Dachis Group. All Rights Reserved
                                              40
Dachis Group | Minnesota AdFed 2010




We have all been there.




® 2010 Dachis Group. All Rights Reserved   41
Dachis Group | Minnesota AdFed 2010




Weʼre moving beyond the industrial economyʼs limits.
We live in a networked economy. We need a network
centric organizational model to realize its potential.




                                           dachisgroup.com




® 2010 Dachis Group. All Rights Reserved                     42
Dachis Group | Minnesota AdFed 2010




A shift towards social business




          New distributed, collaborative, and agile organizations are able to surpass
                    current barriers to growth in order to create new value

® 2010 Dachis Group. All Rights Reserved
Dachis Group | Minnesota AdFed 2010




Social Business
Huge Opportunities, Enormous Challenges
  • Inescapable trends in society, the workplace and
       technology
  • Inherent tension between the past and future
  • Shift is happening across all facets of business.
     This is not about media or marketing
  • Fundamental change required in systems, process
      and culture
  • Every single company will undergo some form of
      transformation to accommodate
  • Companies that donʼt embrace change and adapt
      are at a severe competitive disadvantage
  • New distributed, collaborative, and agile
     organizations will be able to surpass current
     barriers to growth in order to create new value
® 2010 Dachis Group. All Rights Reserved                44
Social Business Design
A Conceptual Framework and Set of Lenses
for a Network Centric Organizational Model




® 2010 Dachis Group. Confidential and Proprietary   45
Social Business Summit 2010 LONDON | Social Business Design | March 18, 2010




The definition of Social Business Design




                  • Social Business Design is the
                         intentional creation of socially
                         calibrated and dynamic business
                         systems, process and culture.




® 2009 Dachis Group. Confidential and Proprietary                               46
Social Business Summit 2010 LONDON | Social Business Design | March 18, 2010




The definition of Social Business Design




                  • The Goal: Enhanced value
                        exchange among constituents
                        delivering improved and
                        emergent business outcomes




® 2009 Dachis Group. Confidential and Proprietary                               47
Social Business Summit 2010 LONDON | Social Business Design | March 18, 2010




Business is made of Technology, People, and Process



                                                                                     support
                       content ecosystem
                                                                                     services
                                                   commerce ecosystem




                            developer                                               application
                            ecosystem                                               ecosystem

                                                       cloud services




                              products
                                                                               supply chain ecosystem

® 2009 Dachis Group. Confidential and Proprietary                                                        48
Dachis Group | Minnesota AdFed 2010




The shape of the business has fundamentally changed.
Businesses need to address value exchange with all
constituents wherever they are.




® 2010 Dachis Group. All Rights Reserved
                                                 49
Dachis Group | Minnesota AdFed 2010




Four Archetypes for Social Business Design.
Building blocks and vocabulary.




® 2010 Dachis Group. All Rights Reserved
Dachis Group | Minnesota AdFed 2010




Ecosystem (connection systems)
- An expanded constituent
       base including core and
       extended
- A robust, integrated network
       of nodes and connections
- A holistic technology
       architecture                                                        dachisgroup.com




- Strong and weak ties
- Active and ambient
       awareness
                                 From Disparate Silos To Connected Nodes
® 2010 Dachis Group. All Rights Reserved
Dachis Group | Minnesota AdFed 2010




Ecosystem
                                           Extended


    Core




® 2010 Dachis Group. All Rights Reserved              52
Dachis Group | Minnesota AdFed 2010




    A network of nodes and connections




Source: ethorson on Flickr

   ® 2010 Dachis Group. All Rights Reserved
Dachis Group | Minnesota AdFed 2010




Hivemind (culture)

- A primary social calibration
- Active Participation
- Active Engagment
- Active Involvement
                                           dachisgroup.com




® 2010 Dachis Group. All Rights Reserved
Dachis Group | Minnesota AdFed 2010




A primary social calibration




Source: Larry Tomlinson on Flickr

® 2010 Dachis Group. All Rights Reserved
Dachis Group | Minnesota AdFed 2010




Dynamic signal (communication process)


     - Dynamic real time signals
           of all nodes in the             dachisgroup.com

           ecosystem
     - A change in the mode of
           authorship
     - Updates on location
     - Creates efficiencies


® 2010 Dachis Group. All Rights Reserved
Dachis Group | Minnesota AdFed 2010




Metafilter (filter, measure)


   - Filter, tag sort                                                             dachisgroup.com


   - Define constructs for
         measurement
   - Measure patterns not
         counts
   - Depth over surface
   - Trends versus snapshots
   - Analyzing for meaning
                                           From Filter Failure To Clear Signals
                                           “Finding meaning in all the noise”
® 2010 Dachis Group. All Rights Reserved
Dachis Group | Minnesota AdFed 2010




Social business design applied




® 2010 Dachis Group. All Rights Reserved   58
Dachis Group | Minnesota AdFed 2010




 Why Social Business Design?


                                                                        Improved
                                                                 =          &
                                            +                           Emergent
                                                                        Outcomes



•Adaptable business practices                    •Cost savings and efficiencies

•Improved collaborative processes                •Informed social marketing strategies

•Customer growth, retention and sustainability   •New product & service offerings/innovations

•Expansion into new markets


 ® 2010 Dachis Group. All Rights Reserved                                                59
Dachis Group | Minnesota AdFed 2010




® 2010 Dachis Group. All Rights Reserved   60
Dachis Group | Minnesota AdFed 2010




Social Business

               All of the web is becoming social
               All business is done on the web
               All business will be Social Business

               Beyond influence and media, the real
               opportunities lie in creating a more
               connected, collaborative, dynamic and
               participatory business.
               Social Business
® 2010 Dachis Group. All Rights Reserved               61
Dachis Group | Minnesota AdFed 2010




All of the web is becoming social-
The media communications landscape has shifted
                      Connect, Share, Participate and Engage   Social Graph




                                              Data             Connections
                                                               User Profiles
                                                               Photos
                                                               Video
                                                               Blogging
                                                               Location
                                                               Status




                                           Individuals




® 2010 Dachis Group. All Rights Reserved                                      62
Dachis Group | Minnesota AdFed 2010




All business is increasingly done on the web-
The business landscape is shifting too
               Connect, Collaborate, Engage and Transact                  Business Graph




                                                                          Ecommerce
                                                                          Collaboration
                                Data                   Data
                                                                          Marketplaces
                                                                          Advertising
                                                                          EDI
       Suppliers                           Employees          Customers   Transactions
                                                                          ERP
                                                                          Knowledge Mgmt.
                                                                          Human Resources
                                                                          Travel
                                                                          Shipping
                                                                          Logistics




® 2010 Dachis Group. All Rights Reserved                                                   63
Dachis Group | Minnesota AdFed 2010




All business is Social Business
                                                           Social Graph         +          Business Graph




                                            Individuals                      Individuals                    Individuals




     Connect,                                                                                                             Connect,
       Share,                                                                                                             Collaborate,
   Participate                                                                                                            Engage and
  and Engage                                                                                                              Transact
                                           Suppliers                       Employees                    Customers

                                                          SSC       E2.0                   SCRM      SMM


                                                                 Social Business Graph


® 2010 Dachis Group. All Rights Reserved                                                                                             64
Dachis Group | Minnesota AdFed 2010



The Social Business
Where are opportunities?




                                                      Corporate Leadership,
             Customers                                                                Partners &
                                                        Management and
                                                                                       Suppliers
                                                          Workforce

        SMM                          SCRM                         E 2.0                     SSC
     Social Media
                                  Social CRM                   Enterprise 2.0         Social Supply Chain
      Marketing
•   Twitter Campaign                                                              •   Community Mgmt
•   Affinity Communities •          Listening               •   Collaboration
                                                                                  •   On-boarding
•   Facebook Fan-page •            Customer Support        •   Micro-blogging
                                                                                  •   Compliance
•   Blogger Outreach •             Communities             •   Knowledge Mgmt
                                                                                  •   Collaborative SCEM
•   Social Coupon       •          Network CSR             •   BPM
                                                                                  •   SC Social Networking
•   Ratings and Reviews                                    •   Expert Discovery
                                                                                  •   Marketplaces
® 2010 Dachis Group. All Rights Reserved                                                                     21
Dachis Group | Minnesota AdFed 2010




Modes of Social Business
                         Adoption          Operationalize         Strategic
                         Enable            Aggregate              Synthesize
                         Interrupt         Integrate              Analyze
                         Connect
                         Listen
                         Engage                                    Strategic
                         Participate
                         Influence                                                 +
                         Collaborate
                                            Operationalize       Operationalize


                                                             +                    +
                              Adoption        Adoption             Adoption




® 2010 Dachis Group. All Rights Reserved                                              66
Dachis Group | Minnesota AdFed 2010




Dachis Group- Representative Clients




® 2010 Dachis Group. All Rights Reserved   67
Dachis Group | Minnesota AdFed 2010




Financial Services
Social Business Strategy
       Situation:
       Today's pre-eminent financial services company with 350,000 employees who manage
       200 million customer accounts across six continents in more than 100 countries.
       “Social” initiatives at have been executed mostly under the radar and mostly lacking
       centralized coordination.
       Project:
       Develop an actionable social business strategy to help coordinate resources and
       leapfrog its competition.
       Approach: Focus on three areas to formulate a social business strategy:
       Social Media Landscape: Used customer survey data and brand monitoring outputs to
       create segmented perspectives on customer participation.
       Competitive and Best Practices Assessment: Analyzed competition across social
       platforms and best practices within and external to industry.
       Organization Design: Interviewed over 50 employees and surveyed large and complex
       organizations to determine ideal structure including social processes, staffing, and
       decision rights.
       Results:
       Created a vision statement for the bank along with a 24-month roadmap to outline how
       social initiatives should be rolled out to achieve competitive success.

® 2010 Dachis Group. All Rights Reserved                                                      68
Dachis Group | Minnesota AdFed 2010




Client example: Social Business Strategy
                                      Citibank Interim Deliverable | February 2010




                                       Assessment of todayʼs social media approach
                                                                                         Early days
                                                                                         Manual
                                                                                         processes


                                   Expectations to get social
                                   media right the first time
                                   with little tolerance for error
                                   Perception that risks in                                                   Twitter Servicing is
                                   social media are greater                                                   only launched initiative
                                   than rewards                                                               with process and
                                                                                                              guidelines for
                                                                                                              evaluating response
                                                                                                              and responding directly
                                                                                                              to customer complaints



                                    Lack methods for capturing
                                    social analytics and integrating                                  No procedures for proactive
                                    into Web analytics for                                            engagement
                                    complete customer profile                                          Limited engagement for blogs,
                                    Lack of understanding for                                         forums and social campaigns
                                    social media value and how to
                                    measure social activities


                                      ® 2010 Dachis Group. Confidential and Proprietary                                              239




® 2010 Dachis Group. All Rights Reserved                                                                                                  69
Dachis Group | Minnesota AdFed 2010



                                                                                                                                                                                          Citibank Interim Deliverable | February 2010




 Social Business Strategy                                                                                                                                                                 Decision rights framework
                                                                                                                                                                                          • CMO Social Media Team:
                                Citibank Interim Deliverable | February 2010                                                                                                              -    Provides guidance and support for business partner social initiatives (strategy, training, resources,
                                                                                                                                                                                               governance)
                                                                                                                                                                                          -
                               Suggested Social Reporting Network                                                                                                                              Accountable for business partner adherence to corporate Digital Guidelines

                                                                                                                                                                                          • Global Communications Social Media Panel:
                                                                                                                                                                                          - Consulted on naming conventions, branding and external communications
                                                                                                                                                                                          • Compliance & Legal, Risk, IT, HR:
                                                                                                                                                                                          -    Consulted on social media initiatives based on specific expertise (technology requirements,
Citibank Interim Deliverable | February 2010                                                                                                                                                   regulations)

                                                                                                                                                                                          • Business owners:
How should Citi organize for social?                                                                                                                                                      -    Accountable for business unitʼs social media budget, resources, and execution of initiatives
                                                                                                                                              Community
                                                                                                                                               Manager                                    • Brand marketers:
• CMO Social Media team should
                                                                                                                                                                                          -    Responsible for adhering to corporate social media guidelines, budget and resources
      provide central governance and                                            Centralized Support                                       PR, Media, Investor
                                                                                                                                       Citibank Interim Deliverable | February 2010
                                                                                                                                              Relations
      support to businesses and be                                                                                                                                                        -    Responsible for managing people, processes, and technologies applied in social media efforts to
      responsible for coordinating efforts                                     Shared Responsibilities                                                                                         achieve business objectives
                                                                                                                                       Future state Citi All participants are trained and informed
                                                                                                                                         Social Servicing
                                                                                                                                           Strategist     • social governance model
• Responsibilities for social initiative
      execution should be shared in each                                                                     Listening
                                                                                          Social
      business unit                                                                      Business            Strategist                                                     Cards
                                                                                                                                                                                          ® 2010 Dachis Group. Confidential and Proprietary
                                                                                                                                                                                                                                                          Retail
                                                                                                                                                                                                                                                                                                       244

                                                                                        Strategist
• Business owners should be
      accountable for social media                                                                                                                                                  R                                                                 R
                                                                                                                                                                                          A                Global Comm Social Media Panel,        A
      activities within their line of business                                                 CMO Social                                                                                                     Compliance and Legal, Risk
                                                                                               Media Team                                                                                                               C S
                                                                                                 Community    Community   Community
• Business owners should be                                                                       Manager      Manager     Manager
      measured on social media success in
                  ® 2010 Dachis Group. Confidential and Proprietary                                 Cards        Retail      Wealth
                                                                                                                                                                246                                                       CMO Social
                                                                                                                          Management
      order to commit to executing social                                                                                                                                                                                Strategist and
      media initiatives                                                                                                                                                                                                      Team
                                                                                                                                                                                                                                 RS
• Corporate functions (IT, Compliance
      and Legal, Risk) should be more                                                            Key:                                                                                                                     IT, BISO, HR
      supportive of business partner social                                       TM Traditional Marketing DM Digital
                                                                                                                                                                                          A                                    C S                A
                                                                                 Marketing SM Social Media PR Public
      engagement initiatives                                                       Relations C Corporate Marketing/                                                                 R                                                                 R
                                                                                            Communications
® 2010 Dachis Group. Confidential and Proprietary                                                                              242
                                                                                                                                                                            Mortgage                                                         Wealth Management



                                                                                                                                                                                                                                  I
                                                                                                                                    Legend: R = Responsible, A= Accountable, S=Supportive, C= Consulted, I = Informed
                                                                                                                                       ® 2010 Dachis Group. Confidential and Proprietary                                                                                    243




® 2010 Dachis Group. All Rights Reserved                                                                                                                                                                                                                                                                     70
Dachis Group | Minnesota AdFed 2010




Higher Education
Social Business Strategy
       Situation:
       The parent of eight higher learning institutions in North America. Through these
       organizations, the company endeavors to provide applications-oriented undergraduate
       education that includes a well-designed general education component to broaden
       student learning and strengthen long-term personal and career potential. Various
       brands have experimented with social media on an ad-hoc basis; as a holding
       company, they needed a strategy to coordinate efforts toward success.
       Project:
       Design strategy through which the company could support its constituent
       organizations in operationalizing social business strategies, tools and programs.
       Approach:
       Developed a comprehensive strategy to organize for social effectiveness; create
       governance to manage social engagement and risk; identify future social media
       interaction opportunities; and, support student learning through innovation.
       Results:
       Formulated a strategy applicable across brands, outlining a realistic approach to
       organization for social business and the corresponding, programs, and processes.




® 2010 Dachis Group. All Rights Reserved                                                     71
Dachis Group | Minnesota AdFed 2010




Social Business Strategy




® 2010 Dachis Group. All Rights Reserved
Dachis Group | Minnesota AdFed 2010




Social Business Strategy




® 2010 Dachis Group. All Rights Reserved
Dachis Group | Minnesota AdFed 2010




Software
Social Servicing
       Situation:
       The nation’s leading tax preparation software, with over 20 million customers.
       Professionals were active in social media on an individual basis, but the company
       needed assistance to construct a coordinated approach to social servicing,
       specifically utilizing Twitter.
       Project:
       Assist in establishing a multi-tenanted customer service initiative for social media.
       The initiative would enable registered company representatives to participate in
       discussions aggregated under an official company account.
       Approach:
       Interview key stakeholders to define requirements and create cross-functional buy-in.
       In addition, Conduct extensive research of brands with mature Twitter presences to
       inform creation of program design.
       Results:
       After creating the program, firm was asked to help implement as well. By the end of
       the first tax season where the program was operating, employee participation
       increased from six to 40 personnel. Based on customer feedback, the company also
       achieved a 71% likelihood of customers to recommend, pointing to bottom-line
       impact.



® 2010 Dachis Group. All Rights Reserved                                                       74
Dachis Group | Minnesota AdFed 2010




Social Servicing




® 2010 Dachis Group. All Rights Reserved
Dachis Group | Minnesota AdFed 2010




Multi Brand International Cosmetics
Social Business Advisory
       Situation:
       The company are leaders in making the world a more beautiful place via its 29 brands
       offering luxury skin care, makeup, fragrance, and haircare products. The company
       embarked on a corporate marketing reorganization and required guidance on where to
       integrate social constructs.
       Project:
       Audit and augment social business strategy, leveraging our industry expertise and
       knowledge of best practices and organizational challenges of companies facing similar
       issues.
       Approach:
       Working closely with company’s digital task force, created an overarching cultural change
       framework for social initiatives. Within this framework, multiple deliverables provided
       guidance on how to structure and operationalize social business initiatives.
       Results:
       The company’s digital task force delivered a robust recommendation set to its executive
       sponsor, including guidance on community management, cultural change, collaboration
       tools, education and training, listening and crisis response, social media policy, and global
       social network usage.




® 2010 Dachis Group. All Rights Reserved                                                               76
Dachis Group | Minnesota AdFed 2010




Social Business Advisory




® 2010 Dachis Group. All Rights Reserved
Dachis Group | Minnesota AdFed 2010




Large Beverage Company
Social Business Education
       Situation:
       The world’s largest beverage company and one of the world’s most loved brands and as a
       marketing innovator, the company recognized that social media marketing has become a
       critical component to communicating with today’s consumer and has already been utilizing
       social media channels in local markets around the world. However, the social media space
       shifts rapidly and the company needed assistance to prepare its personnel for the changes
       in the operating environment.
       Project:
       Produce a Social Media Marketing (SMM) training course that highlights what is going on in
       the social space, how consumers and brands are connecting, how brands are having
       success through SMM, how companies should be measuring SMM, and more.
       Approach:
       Drew on its personal and professional expertise in social media to develop a training course
       with seven modules that could be customized for local markets and updated as the market
       evolves.
       Results:
       Produced materials for both in-person and eLearning delivery to address the client’s need
       for course scalability. Presented the materials at company headquarters to train internal
       trainers who would be able to redeliver the course to 40 regions worldwide.



® 2010 Dachis Group. All Rights Reserved                                                              78
Dachis Group | Minnesota AdFed 2010




                 I still passionately believe that we can have a
                 profound effect on the world of commerce,
                 communications, and culture.




® 2010 Dachis Group. All Rights Reserved                           79
Dachis Group | Minnesota AdFed 2010




                 Today we continue to define a new way of
                 doing business




® 2010 Dachis Group. All Rights Reserved                   80
:)


® 2010 Dachis Group. Confidential and Proprietary        81
Thanks.

@jeffdachis




® 2010 Dachis Group. Confidential and Proprietary   82
Dachis Group
Minnesota Ad Federation 2010
Dachis Group
515 Congress Avenue, Suite 2420
Austin, Texas 78701
512-275-7825

Jeff@dachisgroup.com
@jeffdachis

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Back to the Future >> Social Business Design

  • 2. Dachis Group | Minnesota AdFed 2010 ® 2010 Dachis Group. All Rights Reserved 2
  • 3. Puppy. ® 2010 Dachis Group. Confidential and Proprietary 3
  • 4. Dachis Group | Minnesota AdFed 2010 15 Years ago we thought we were about to embark on a revolution to pioneer a new way of doing business. ® 2010 Dachis Group. All Rights Reserved 4
  • 5. Dachis Group | Minnesota AdFed 2010 We Passionately Believed that we could fundamentally change the world of commerce, communications, and culture. ® 2010 Dachis Group. All Rights Reserved 5
  • 6. Dachis Group | Minnesota AdFed 2010 Everything that could be digital...would be. Because it would be faster, better and cheaper. ® 2010 Dachis Group. All Rights Reserved 6
  • 7. Dachis Group | Minnesota AdFed 2010 “In the digital world, User Experience is the key definer of value” ® 2010 Dachis Group. All Rights Reserved 7
  • 8. Dachis Group | Minnesota AdFed 2010 ® 2010 Dachis Group. All Rights Reserved 8
  • 9. Dachis Group | Minnesota AdFed 2010 ® 2010 Dachis Group. All Rights Reserved 9
  • 10. Dachis Group | Minnesota AdFed 2010 ® 2010 Dachis Group. All Rights Reserved 10
  • 11. Dachis Group | Minnesota AdFed 2010 Exciting times ® 2010 Dachis Group. All Rights Reserved 11
  • 12. Dachis Group | Minnesota AdFed 2010 We created a methodology, a lexicon, and an entire industry around making valuable digital user experiences. ® 2010 Dachis Group. All Rights Reserved 12
  • 13. Dachis Group | Minnesota AdFed 2010 Interesting times ® 2010 Dachis Group. All Rights Reserved 13
  • 14. Dachis Group | Minnesota AdFed 2010 Change ® 2010 Dachis Group. All Rights Reserved 14
  • 15. Inescapable Trends ® 2010 Dachis Group. Confidential and Proprietary 15
  • 16. Dachis Group | Minnesota AdFed 2010 ® 2010 Dachis Group. All Rights Reserved
  • 17. Dachis Group | Minnesota AdFed 2010 Our world is truly getting wired Source: Nielsen ® 2010 Dachis Group. All Rights Reserved
  • 18. Dachis Group | Minnesota AdFed 2010 The wires are getting faster Source: Pew Internet & American Life Project, July 2008 ® 2010 Dachis Group. All Rights Reserved
  • 19. Dachis Group | Minnesota AdFed 2010 IT consumerization is upon us ® 2010 Dachis Group. All Rights Reserved
  • 20. Dachis Group | Minnesota AdFed 2010 Consumer web apps proliferate ® 2010 Dachis Group. All Rights Reserved 20
  • 21. Dachis Group | Minnesota AdFed 2010 We buy supercomputers at the mall Source: Apple ® 2010 Dachis Group. All Rights Reserved
  • 22. Dachis Group | Minnesota AdFed 2010 And provide access to everyone... Source: One Laptop Per Child ® 2010 Dachis Group. All Rights Reserved
  • 23. Dachis Group | Minnesota AdFed 2010 We share opinions on everything Source: antigone78 on Flickr ® 2010 Dachis Group. All Rights Reserved
  • 24. Dachis Group | Minnesota AdFed 2010 OMG ® 2010 Dachis Group. All Rights Reserved
  • 25. Dachis Group | Minnesota AdFed 2010 Cloud computing is a reality ® 2010 Dachis Group. All Rights Reserved
  • 26. Dachis Group | Minnesota AdFed 2010 Work demands an “always on” mentality ® 2010 Dachis Group. All Rights Reserved
  • 27. Dachis Group | Minnesota AdFed 2010 Social technologies keep us informed Source: McKinsey & Company ® 2010 Dachis Group. All Rights Reserved
  • 28. But not so fast... ® 2010 Dachis Group. Confidential and Proprietary
  • 29. Dachis Group | Minnesota AdFed 2010 Work still happens in silos ® 2010 Dachis Group. All Rights Reserved
  • 30. Dachis Group | Minnesota AdFed 2010 We have endless point solutions not platforms ® 2010 Dachis Group. All Rights Reserved
  • 31. Dachis Group | Minnesota AdFed 2010 Businesses are overloaded with data ® 2010 Dachis Group. All Rights Reserved
  • 32. Dachis Group | Minnesota AdFed 2010 Consumers are increasingly skeptical Source: Edelman ® 2010 Dachis Group. All Rights Reserved
  • 33. Dachis Group | Minnesota AdFed 2010 Participation isnʼt scalable... ® 2010 Dachis Group. All Rights Reserved 33
  • 34. Dachis Group | Minnesota AdFed 2010 ...because individuals donʼt scale ® 2010 Dachis Group. All Rights Reserved 34
  • 35. Dachis Group | Minnesota AdFed 2010 People are people Source: CarbonNYC on Flickr ® 2010 Dachis Group. All Rights Reserved 35
  • 36. Dachis Group | Minnesota AdFed 2010 Communication remains largely unidirectional ® 2010 Dachis Group. All Rights Reserved
  • 37. Dachis Group | Minnesota AdFed 2010 How will you govern? Source: Ambidanze on Flickr ® 2010 Dachis Group. All Rights Reserved
  • 38. Dachis Group | Minnesota AdFed 2010 What policies do you have in place? ® 2010 Dachis Group. All Rights Reserved
  • 39. Dachis Group | Minnesota AdFed 2010 While the shape of the business world has changed... ® 2010 Dachis Group. All Rights Reserved 39
  • 40. Dachis Group | Minnesota AdFed 2010 Most Business Technology Systems, Business Process, and Business Cultures have not yet adapted... ® 2010 Dachis Group. All Rights Reserved 40
  • 41. Dachis Group | Minnesota AdFed 2010 We have all been there. ® 2010 Dachis Group. All Rights Reserved 41
  • 42. Dachis Group | Minnesota AdFed 2010 Weʼre moving beyond the industrial economyʼs limits. We live in a networked economy. We need a network centric organizational model to realize its potential. dachisgroup.com ® 2010 Dachis Group. All Rights Reserved 42
  • 43. Dachis Group | Minnesota AdFed 2010 A shift towards social business New distributed, collaborative, and agile organizations are able to surpass current barriers to growth in order to create new value ® 2010 Dachis Group. All Rights Reserved
  • 44. Dachis Group | Minnesota AdFed 2010 Social Business Huge Opportunities, Enormous Challenges • Inescapable trends in society, the workplace and technology • Inherent tension between the past and future • Shift is happening across all facets of business. This is not about media or marketing • Fundamental change required in systems, process and culture • Every single company will undergo some form of transformation to accommodate • Companies that donʼt embrace change and adapt are at a severe competitive disadvantage • New distributed, collaborative, and agile organizations will be able to surpass current barriers to growth in order to create new value ® 2010 Dachis Group. All Rights Reserved 44
  • 45. Social Business Design A Conceptual Framework and Set of Lenses for a Network Centric Organizational Model ® 2010 Dachis Group. Confidential and Proprietary 45
  • 46. Social Business Summit 2010 LONDON | Social Business Design | March 18, 2010 The definition of Social Business Design • Social Business Design is the intentional creation of socially calibrated and dynamic business systems, process and culture. ® 2009 Dachis Group. Confidential and Proprietary 46
  • 47. Social Business Summit 2010 LONDON | Social Business Design | March 18, 2010 The definition of Social Business Design • The Goal: Enhanced value exchange among constituents delivering improved and emergent business outcomes ® 2009 Dachis Group. Confidential and Proprietary 47
  • 48. Social Business Summit 2010 LONDON | Social Business Design | March 18, 2010 Business is made of Technology, People, and Process support content ecosystem services commerce ecosystem developer application ecosystem ecosystem cloud services products supply chain ecosystem ® 2009 Dachis Group. Confidential and Proprietary 48
  • 49. Dachis Group | Minnesota AdFed 2010 The shape of the business has fundamentally changed. Businesses need to address value exchange with all constituents wherever they are. ® 2010 Dachis Group. All Rights Reserved 49
  • 50. Dachis Group | Minnesota AdFed 2010 Four Archetypes for Social Business Design. Building blocks and vocabulary. ® 2010 Dachis Group. All Rights Reserved
  • 51. Dachis Group | Minnesota AdFed 2010 Ecosystem (connection systems) - An expanded constituent base including core and extended - A robust, integrated network of nodes and connections - A holistic technology architecture dachisgroup.com - Strong and weak ties - Active and ambient awareness From Disparate Silos To Connected Nodes ® 2010 Dachis Group. All Rights Reserved
  • 52. Dachis Group | Minnesota AdFed 2010 Ecosystem Extended Core ® 2010 Dachis Group. All Rights Reserved 52
  • 53. Dachis Group | Minnesota AdFed 2010 A network of nodes and connections Source: ethorson on Flickr ® 2010 Dachis Group. All Rights Reserved
  • 54. Dachis Group | Minnesota AdFed 2010 Hivemind (culture) - A primary social calibration - Active Participation - Active Engagment - Active Involvement dachisgroup.com ® 2010 Dachis Group. All Rights Reserved
  • 55. Dachis Group | Minnesota AdFed 2010 A primary social calibration Source: Larry Tomlinson on Flickr ® 2010 Dachis Group. All Rights Reserved
  • 56. Dachis Group | Minnesota AdFed 2010 Dynamic signal (communication process) - Dynamic real time signals of all nodes in the dachisgroup.com ecosystem - A change in the mode of authorship - Updates on location - Creates efficiencies ® 2010 Dachis Group. All Rights Reserved
  • 57. Dachis Group | Minnesota AdFed 2010 Metafilter (filter, measure) - Filter, tag sort dachisgroup.com - Define constructs for measurement - Measure patterns not counts - Depth over surface - Trends versus snapshots - Analyzing for meaning From Filter Failure To Clear Signals “Finding meaning in all the noise” ® 2010 Dachis Group. All Rights Reserved
  • 58. Dachis Group | Minnesota AdFed 2010 Social business design applied ® 2010 Dachis Group. All Rights Reserved 58
  • 59. Dachis Group | Minnesota AdFed 2010 Why Social Business Design? Improved = & + Emergent Outcomes •Adaptable business practices •Cost savings and efficiencies •Improved collaborative processes •Informed social marketing strategies •Customer growth, retention and sustainability •New product & service offerings/innovations •Expansion into new markets ® 2010 Dachis Group. All Rights Reserved 59
  • 60. Dachis Group | Minnesota AdFed 2010 ® 2010 Dachis Group. All Rights Reserved 60
  • 61. Dachis Group | Minnesota AdFed 2010 Social Business All of the web is becoming social All business is done on the web All business will be Social Business Beyond influence and media, the real opportunities lie in creating a more connected, collaborative, dynamic and participatory business. Social Business ® 2010 Dachis Group. All Rights Reserved 61
  • 62. Dachis Group | Minnesota AdFed 2010 All of the web is becoming social- The media communications landscape has shifted Connect, Share, Participate and Engage Social Graph Data Connections User Profiles Photos Video Blogging Location Status Individuals ® 2010 Dachis Group. All Rights Reserved 62
  • 63. Dachis Group | Minnesota AdFed 2010 All business is increasingly done on the web- The business landscape is shifting too Connect, Collaborate, Engage and Transact Business Graph Ecommerce Collaboration Data Data Marketplaces Advertising EDI Suppliers Employees Customers Transactions ERP Knowledge Mgmt. Human Resources Travel Shipping Logistics ® 2010 Dachis Group. All Rights Reserved 63
  • 64. Dachis Group | Minnesota AdFed 2010 All business is Social Business Social Graph + Business Graph Individuals Individuals Individuals Connect, Connect, Share, Collaborate, Participate Engage and and Engage Transact Suppliers Employees Customers SSC E2.0 SCRM SMM Social Business Graph ® 2010 Dachis Group. All Rights Reserved 64
  • 65. Dachis Group | Minnesota AdFed 2010 The Social Business Where are opportunities? Corporate Leadership, Customers Partners & Management and Suppliers Workforce SMM SCRM E 2.0 SSC Social Media Social CRM Enterprise 2.0 Social Supply Chain Marketing • Twitter Campaign • Community Mgmt • Affinity Communities • Listening • Collaboration • On-boarding • Facebook Fan-page • Customer Support • Micro-blogging • Compliance • Blogger Outreach • Communities • Knowledge Mgmt • Collaborative SCEM • Social Coupon • Network CSR • BPM • SC Social Networking • Ratings and Reviews • Expert Discovery • Marketplaces ® 2010 Dachis Group. All Rights Reserved 21
  • 66. Dachis Group | Minnesota AdFed 2010 Modes of Social Business Adoption Operationalize Strategic Enable Aggregate Synthesize Interrupt Integrate Analyze Connect Listen Engage Strategic Participate Influence + Collaborate Operationalize Operationalize + + Adoption Adoption Adoption ® 2010 Dachis Group. All Rights Reserved 66
  • 67. Dachis Group | Minnesota AdFed 2010 Dachis Group- Representative Clients ® 2010 Dachis Group. All Rights Reserved 67
  • 68. Dachis Group | Minnesota AdFed 2010 Financial Services Social Business Strategy Situation: Today's pre-eminent financial services company with 350,000 employees who manage 200 million customer accounts across six continents in more than 100 countries. “Social” initiatives at have been executed mostly under the radar and mostly lacking centralized coordination. Project: Develop an actionable social business strategy to help coordinate resources and leapfrog its competition. Approach: Focus on three areas to formulate a social business strategy: Social Media Landscape: Used customer survey data and brand monitoring outputs to create segmented perspectives on customer participation. Competitive and Best Practices Assessment: Analyzed competition across social platforms and best practices within and external to industry. Organization Design: Interviewed over 50 employees and surveyed large and complex organizations to determine ideal structure including social processes, staffing, and decision rights. Results: Created a vision statement for the bank along with a 24-month roadmap to outline how social initiatives should be rolled out to achieve competitive success. ® 2010 Dachis Group. All Rights Reserved 68
  • 69. Dachis Group | Minnesota AdFed 2010 Client example: Social Business Strategy Citibank Interim Deliverable | February 2010 Assessment of todayʼs social media approach Early days Manual processes Expectations to get social media right the first time with little tolerance for error Perception that risks in Twitter Servicing is social media are greater only launched initiative than rewards with process and guidelines for evaluating response and responding directly to customer complaints Lack methods for capturing social analytics and integrating No procedures for proactive into Web analytics for engagement complete customer profile Limited engagement for blogs, Lack of understanding for forums and social campaigns social media value and how to measure social activities ® 2010 Dachis Group. Confidential and Proprietary 239 ® 2010 Dachis Group. All Rights Reserved 69
  • 70. Dachis Group | Minnesota AdFed 2010 Citibank Interim Deliverable | February 2010 Social Business Strategy Decision rights framework • CMO Social Media Team: Citibank Interim Deliverable | February 2010 - Provides guidance and support for business partner social initiatives (strategy, training, resources, governance) - Suggested Social Reporting Network Accountable for business partner adherence to corporate Digital Guidelines • Global Communications Social Media Panel: - Consulted on naming conventions, branding and external communications • Compliance & Legal, Risk, IT, HR: - Consulted on social media initiatives based on specific expertise (technology requirements, Citibank Interim Deliverable | February 2010 regulations) • Business owners: How should Citi organize for social? - Accountable for business unitʼs social media budget, resources, and execution of initiatives Community Manager • Brand marketers: • CMO Social Media team should - Responsible for adhering to corporate social media guidelines, budget and resources provide central governance and Centralized Support PR, Media, Investor Citibank Interim Deliverable | February 2010 Relations support to businesses and be - Responsible for managing people, processes, and technologies applied in social media efforts to responsible for coordinating efforts Shared Responsibilities achieve business objectives Future state Citi All participants are trained and informed Social Servicing Strategist • social governance model • Responsibilities for social initiative execution should be shared in each Listening Social business unit Business Strategist Cards ® 2010 Dachis Group. Confidential and Proprietary Retail 244 Strategist • Business owners should be accountable for social media R R A Global Comm Social Media Panel, A activities within their line of business CMO Social Compliance and Legal, Risk Media Team C S Community Community Community • Business owners should be Manager Manager Manager measured on social media success in ® 2010 Dachis Group. Confidential and Proprietary Cards Retail Wealth 246 CMO Social Management order to commit to executing social Strategist and media initiatives Team RS • Corporate functions (IT, Compliance and Legal, Risk) should be more Key: IT, BISO, HR supportive of business partner social TM Traditional Marketing DM Digital A C S A Marketing SM Social Media PR Public engagement initiatives Relations C Corporate Marketing/ R R Communications ® 2010 Dachis Group. Confidential and Proprietary 242 Mortgage Wealth Management I Legend: R = Responsible, A= Accountable, S=Supportive, C= Consulted, I = Informed ® 2010 Dachis Group. Confidential and Proprietary 243 ® 2010 Dachis Group. All Rights Reserved 70
  • 71. Dachis Group | Minnesota AdFed 2010 Higher Education Social Business Strategy Situation: The parent of eight higher learning institutions in North America. Through these organizations, the company endeavors to provide applications-oriented undergraduate education that includes a well-designed general education component to broaden student learning and strengthen long-term personal and career potential. Various brands have experimented with social media on an ad-hoc basis; as a holding company, they needed a strategy to coordinate efforts toward success. Project: Design strategy through which the company could support its constituent organizations in operationalizing social business strategies, tools and programs. Approach: Developed a comprehensive strategy to organize for social effectiveness; create governance to manage social engagement and risk; identify future social media interaction opportunities; and, support student learning through innovation. Results: Formulated a strategy applicable across brands, outlining a realistic approach to organization for social business and the corresponding, programs, and processes. ® 2010 Dachis Group. All Rights Reserved 71
  • 72. Dachis Group | Minnesota AdFed 2010 Social Business Strategy ® 2010 Dachis Group. All Rights Reserved
  • 73. Dachis Group | Minnesota AdFed 2010 Social Business Strategy ® 2010 Dachis Group. All Rights Reserved
  • 74. Dachis Group | Minnesota AdFed 2010 Software Social Servicing Situation: The nation’s leading tax preparation software, with over 20 million customers. Professionals were active in social media on an individual basis, but the company needed assistance to construct a coordinated approach to social servicing, specifically utilizing Twitter. Project: Assist in establishing a multi-tenanted customer service initiative for social media. The initiative would enable registered company representatives to participate in discussions aggregated under an official company account. Approach: Interview key stakeholders to define requirements and create cross-functional buy-in. In addition, Conduct extensive research of brands with mature Twitter presences to inform creation of program design. Results: After creating the program, firm was asked to help implement as well. By the end of the first tax season where the program was operating, employee participation increased from six to 40 personnel. Based on customer feedback, the company also achieved a 71% likelihood of customers to recommend, pointing to bottom-line impact. ® 2010 Dachis Group. All Rights Reserved 74
  • 75. Dachis Group | Minnesota AdFed 2010 Social Servicing ® 2010 Dachis Group. All Rights Reserved
  • 76. Dachis Group | Minnesota AdFed 2010 Multi Brand International Cosmetics Social Business Advisory Situation: The company are leaders in making the world a more beautiful place via its 29 brands offering luxury skin care, makeup, fragrance, and haircare products. The company embarked on a corporate marketing reorganization and required guidance on where to integrate social constructs. Project: Audit and augment social business strategy, leveraging our industry expertise and knowledge of best practices and organizational challenges of companies facing similar issues. Approach: Working closely with company’s digital task force, created an overarching cultural change framework for social initiatives. Within this framework, multiple deliverables provided guidance on how to structure and operationalize social business initiatives. Results: The company’s digital task force delivered a robust recommendation set to its executive sponsor, including guidance on community management, cultural change, collaboration tools, education and training, listening and crisis response, social media policy, and global social network usage. ® 2010 Dachis Group. All Rights Reserved 76
  • 77. Dachis Group | Minnesota AdFed 2010 Social Business Advisory ® 2010 Dachis Group. All Rights Reserved
  • 78. Dachis Group | Minnesota AdFed 2010 Large Beverage Company Social Business Education Situation: The world’s largest beverage company and one of the world’s most loved brands and as a marketing innovator, the company recognized that social media marketing has become a critical component to communicating with today’s consumer and has already been utilizing social media channels in local markets around the world. However, the social media space shifts rapidly and the company needed assistance to prepare its personnel for the changes in the operating environment. Project: Produce a Social Media Marketing (SMM) training course that highlights what is going on in the social space, how consumers and brands are connecting, how brands are having success through SMM, how companies should be measuring SMM, and more. Approach: Drew on its personal and professional expertise in social media to develop a training course with seven modules that could be customized for local markets and updated as the market evolves. Results: Produced materials for both in-person and eLearning delivery to address the client’s need for course scalability. Presented the materials at company headquarters to train internal trainers who would be able to redeliver the course to 40 regions worldwide. ® 2010 Dachis Group. All Rights Reserved 78
  • 79. Dachis Group | Minnesota AdFed 2010 I still passionately believe that we can have a profound effect on the world of commerce, communications, and culture. ® 2010 Dachis Group. All Rights Reserved 79
  • 80. Dachis Group | Minnesota AdFed 2010 Today we continue to define a new way of doing business ® 2010 Dachis Group. All Rights Reserved 80
  • 81. :) ® 2010 Dachis Group. Confidential and Proprietary 81
  • 82. Thanks. @jeffdachis ® 2010 Dachis Group. Confidential and Proprietary 82
  • 83. Dachis Group Minnesota Ad Federation 2010 Dachis Group 515 Congress Avenue, Suite 2420 Austin, Texas 78701 512-275-7825 Jeff@dachisgroup.com @jeffdachis