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Social Business:
Frameworks for
Next-Generation
Organizational
Structure
Introduction
Spring 2012

Dion Hinchcliffe

••
•

Chief Strategy Officer
http://dachisgroup.com
mailto:dion.hinchcliffe@dachisgroup.com

• ZDNet’s Enterprise Web 2.0
• http://blogs.zdnet.com/Hinchcliffe
• InformationWeek’s Social Business By Design
http://informationweek.com/thebrainyard

•

•

: @dhinchcliffe

2
Getter better with #socbiz
• Social business has

matured considerably in the
last 5 years
• We’ve learned a lot about
what makes it successful
• But those lessons are not
very well captured and
codified yet
• How can we better build on
the investments and wins of
those that have come before
us?

(cc) 2014 Creative Commons. Some Rights Reserved.

3
First, Where Are We Today with #SocBiz?

4
We’ve learned that extensively social
organizations get outsized benefits

Source: McKinsey Web 2.0 Survey

Only fully social organizations can tap into the
$1.3 trillion social business opportunity
(cc) 2014 Creative Commons. Some Rights Reserved.

5
But we still have many challenges
• 96% of internal and external social business efforts
are not connected
- Source:

• Yet that’s where the most ROI is, by far

(cc) 2014 Creative Commons. Some Rights Reserved.

6
The Lesson: Social engagement is...
part of a single continuum...
one unified ecosystem
Social

Social
Innovation

s

rise ec
osyste

t

m

t

business partners
Crowdsourcing

integr
ated

Social Marketing
Customer Communities

(cc) 2014 Creative Commons. Some Rights Reserved.

vision

intr
ane

customers +
world

Busine
s

extr
ane

Inte
rnet

enterp

workers

Social CRM

Social Workforce
7
We’ve also learned that social business
cannot be isolated from work

(cc) 2014. Creative Commons. Some Rights Reserved.
What breakthroughs are enabling results?

Big Data: The Moving Parts
Increasing
Age & Maturity

Hadoop

unsupervised learning

Hive
Vertica

SciPy

MapReduce

Mahout

Esper

social media analytics
sentiment analysis
predictive modeling

MATLAB

kdb

Revolution R

Greenplum
ETL
ECL

AMPL

SPSS

Netezza
Teradata

BI

network analysis
visualization
simulation

SAS

Big Analytics

Fast Data

BPO

Deep Insight

From http://blogs.zdnet.com/Hinchcliffe

the growth of data will be exponential for the foreseeable future

terabytes

petabytes

exabytes

the amount of data stored by the average company today
(cc) 2014 Creative Commons. Some Rights Reserved.

zettabytes

Business
Objectives
A difficult industry lesson:
We must create #socbiz org structures to engage at scale

(cc) 2014 Creative Commons. Some Rights Reserved.

10
But do we need blueprints to get there?
• Do they make sure we don’t
•

forget what’s most important?
To leverage everyone’s lessons
learned?
To let the network do the work
To be the conduit and co-shaper of
the outcomes
To cultivate and wield social capital
Can social business meet our
expectations if it only delivers
what is planned?

(cc) 2014 Creative Commons. Some Rights Reserved.

11
Perhaps that not even the right question
•
•
•
•

Can we apply #socbiz frameworks broadly to
Most industries?
Most geographies?
Most corporate cultures?
Will they work most of the time?
What will they provide us?
Lower risk?
Faster results?
Better results?
Is there any evidence of this?
Or do they lock us into what has only happened
before?

(cc) 2014 Creative Commons. Some Rights Reserved.

12
How Firms are Maturing Social Business Capabilities

(cc) 2013 Creative Commons. Some Rights Reserved.

13
1 -- STRATEGIC LISTENING

(cc) 2014 Creative Commons. Some Rights Reserved.

14
2 --LEARNING TO FILTER AND FIND

Business
Relevancy

(cc) 2014 Creative Commons. Some Rights Reserved.

15
3 -- ANALYZING FOR OPPORTUNITIES
Understand the Business Context & Priority
of Relevant Conversations

(cc) 2014 Creative Commons. Some Rights Reserved.

16
Data-Driven Engagement: A High-Impact Example
The Story:
The Results:

T-Mobile wanted to get out ahead of customer defections to
other carriers. They needed an accurate and scalable source of
information. They looked to social media.
The firm integrated big data across their IT systems, using near
real-time the analysis of 33M customer data records, web logs,
billing data and social media information. The result: The company
was able to cut customer defections in half in a single quarter.

Cut customer defections
in half in 90 days.
Source: Financial Times

® 2010 Confidential and Proprietary

17
4 -- MOBILIZING ADVOCATES

(cc) 2014 Creative Commons. Some Rights Reserved.

18
Advocate programs are a major new
element of org structure

(cc) 2014 Creative Commons. Some Rights Reserved.

19
5 -- TRANSFORMING FOR ENGAGEMENT

Incremental change means incremental results.
(cc) 2014 Creative Commons. Some Rights Reserved.

20
Better organization for Social Business

(cc) 2014 Creative Commons. Some Rights Reserved.

21
6 -- PROCESSES THAT ARE SCALED

(cc) 2014 Creative Commons. Some Rights Reserved.

22
Org structures for scaling “working out loud”

Make Direct
Contribution

Start

Request
Participation

and/or
Begin
Open Work

Discuss Open
Work Effort
Create Initial
Work Seed

Finish

Co-Curate Open
Work Effort

End Open
Work Effort

Community
Management

Open Work
Definitions

Legend

Co-Curation

Community Management

A social business work
process where anyone
can contribute. You
choose the boundaries
of the community.

Community-based
decisions on the best
contributions to integrate
into the ultimate open
work effort.

The process of 1) drawing in
the participants, 2) managing
their engagement, 3)
enforcing standards, and 4)
eliciting their participation.

Open Work Initiator

Community Participant

This community management, but what else?
(cc) 2014 Creative Commons. Some Rights Reserved.

23
7 -- CLOSED LOOP ENGAGEMENT PROCESSES

(cc) 2014 Creative Commons. Some Rights Reserved.

24
8 -- DISRUPTING THE COMPETITION

Usually by using #socbiz to solve longstanding business problems
(cc) 2014 Creative Commons. Some Rights Reserved.

25
Do we need frameworks to reach the next-gen org?

If so, do we have what we need?
(cc) 2014 Creative Commons. Some Rights Reserved.

26
And what is a framework, really?

points of
customizability

It’s a pre-built approach with holes
cut out for the details of your business
(cc) 2014 Creative Commons. Some Rights Reserved.

27
There have been frameworks from the start

(cc) 2014 Creative Commons. Some Rights Reserved.

28
(cc) 2014 Creative Commons. Some Rights Reserved.

29
(cc) 2014 Creative Commons. Some Rights Reserved.

30
(cc) 2014 Creative Commons. Some Rights Reserved.

31
(cc) 2014 Creative Commons. Some Rights Reserved.

32
(cc) 2014 Creative Commons. Some Rights Reserved.

33
Podularity

(cc) 2014 Creative Commons. Some Rights Reserved.

34
(cc) 2014. Creative Commons. Some Rights Reserved.
Social Business Architecture Framework

(cc) 2014. Creative Commons. Some Rights Reserved.
How about community management?

(cc) 2014 Creative Commons. Some Rights Reserved.

37
How about a technical approach?

(cc) 2014 Creative Commons. Some Rights Reserved.

38
Can we even change our DNA with a plan?

(cc) 2014 Creative Commons. Some Rights Reserved.

39
What if frameworks aren’t necessarily the best
approach?
• What if things like heuristics are?
- One of the reasons we went with the 10
tenets in #SocBiz By Design
• What if we really need updated
management theory instead?
• Can a framework ever really have
everything we need to succeed?

The Ten Tenets of Social Business

(cc) 2014 Creative Commons. Some Rights Reserved.

40
Because if we forget what
makes social business special...
• Community-led and open
•
•
•
•

business processes
Emergent and self-organizing
outcomes
More transparency, more
available knowledge
Better engagement,
everywhere
High-scale and cost effective
results

...then there is no point
(cc) 2014 Creative Commons. Some Rights Reserved.

41
There is a broad pattern in frameworks for
next-gen orgs emerging however...

• Decentralization
• User-control
• Need to cope with

constant change
• Adaptive processes
• Local autonomy
• Sustainable
transformation

(cc) 2014 Creative Commons. Some Rights Reserved.

42
Functional next-gen frameworks seem to be most effective

• Specializing in a specific
•

capability
Marketing and sales
Supply chain (especially exception
handling)
Project management
Customer care
Product innovation
Community management
Advocacy
Implication: A custom framework
of proven functional frameworks
seems to be best

(cc) 2014 Creative Commons. Some Rights Reserved.

43
In the end, what most organizations need...
• Is guidance and a way to cross check their journey
• To build on the shoulders of those that came
before
• And to make sure they haven’t forgotten anything
- Especially fundamental principles
• In other words...

(cc) 2014 Creative Commons. Some Rights Reserved.

44
So most orgs end up building their own

And mostly they are relatively informal.
(cc) 2014 Creative Commons. Some Rights Reserved.

45
But the best ones do it with their community

This is what most successful next-gen orgs are doing
(cc) 2014 Creative Commons. Some Rights Reserved.

46
The full story is in Social Business by Design
• Published May, 2012
• From John Wiley & Sons
• The definitive management
•
•

•
•

strategy guide and handbook
on social business.
Based on real-world
experience from nearly 100
high-impact examples.
The most complete and
actionable statement on
social business and why it’s
strategically vital.
Recently #1 in Amazon’s Hot
New Releases
Companion Web site at
http://socialbusinessbydesign.com

(cc) 2014 Creative Commons. Some Rights Reserved.

47

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Social Business: Frameworks for Next-Gen Organizational Structure | Enterprise 2.0 SUMMIT 2014 Keynote by Dion Hinchcliffe

  • 2. Introduction Spring 2012 Dion Hinchcliffe •• • Chief Strategy Officer http://dachisgroup.com mailto:dion.hinchcliffe@dachisgroup.com • ZDNet’s Enterprise Web 2.0 • http://blogs.zdnet.com/Hinchcliffe • InformationWeek’s Social Business By Design http://informationweek.com/thebrainyard • • : @dhinchcliffe 2
  • 3. Getter better with #socbiz • Social business has matured considerably in the last 5 years • We’ve learned a lot about what makes it successful • But those lessons are not very well captured and codified yet • How can we better build on the investments and wins of those that have come before us? (cc) 2014 Creative Commons. Some Rights Reserved. 3
  • 4. First, Where Are We Today with #SocBiz? 4
  • 5. We’ve learned that extensively social organizations get outsized benefits Source: McKinsey Web 2.0 Survey Only fully social organizations can tap into the $1.3 trillion social business opportunity (cc) 2014 Creative Commons. Some Rights Reserved. 5
  • 6. But we still have many challenges • 96% of internal and external social business efforts are not connected - Source: • Yet that’s where the most ROI is, by far (cc) 2014 Creative Commons. Some Rights Reserved. 6
  • 7. The Lesson: Social engagement is... part of a single continuum... one unified ecosystem Social Social Innovation s rise ec osyste t m t business partners Crowdsourcing integr ated Social Marketing Customer Communities (cc) 2014 Creative Commons. Some Rights Reserved. vision intr ane customers + world Busine s extr ane Inte rnet enterp workers Social CRM Social Workforce 7
  • 8. We’ve also learned that social business cannot be isolated from work (cc) 2014. Creative Commons. Some Rights Reserved.
  • 9. What breakthroughs are enabling results? Big Data: The Moving Parts Increasing Age & Maturity Hadoop unsupervised learning Hive Vertica SciPy MapReduce Mahout Esper social media analytics sentiment analysis predictive modeling MATLAB kdb Revolution R Greenplum ETL ECL AMPL SPSS Netezza Teradata BI network analysis visualization simulation SAS Big Analytics Fast Data BPO Deep Insight From http://blogs.zdnet.com/Hinchcliffe the growth of data will be exponential for the foreseeable future terabytes petabytes exabytes the amount of data stored by the average company today (cc) 2014 Creative Commons. Some Rights Reserved. zettabytes Business Objectives
  • 10. A difficult industry lesson: We must create #socbiz org structures to engage at scale (cc) 2014 Creative Commons. Some Rights Reserved. 10
  • 11. But do we need blueprints to get there? • Do they make sure we don’t • forget what’s most important? To leverage everyone’s lessons learned? To let the network do the work To be the conduit and co-shaper of the outcomes To cultivate and wield social capital Can social business meet our expectations if it only delivers what is planned? (cc) 2014 Creative Commons. Some Rights Reserved. 11
  • 12. Perhaps that not even the right question • • • • Can we apply #socbiz frameworks broadly to Most industries? Most geographies? Most corporate cultures? Will they work most of the time? What will they provide us? Lower risk? Faster results? Better results? Is there any evidence of this? Or do they lock us into what has only happened before? (cc) 2014 Creative Commons. Some Rights Reserved. 12
  • 13. How Firms are Maturing Social Business Capabilities (cc) 2013 Creative Commons. Some Rights Reserved. 13
  • 14. 1 -- STRATEGIC LISTENING (cc) 2014 Creative Commons. Some Rights Reserved. 14
  • 15. 2 --LEARNING TO FILTER AND FIND Business Relevancy (cc) 2014 Creative Commons. Some Rights Reserved. 15
  • 16. 3 -- ANALYZING FOR OPPORTUNITIES Understand the Business Context & Priority of Relevant Conversations (cc) 2014 Creative Commons. Some Rights Reserved. 16
  • 17. Data-Driven Engagement: A High-Impact Example The Story: The Results: T-Mobile wanted to get out ahead of customer defections to other carriers. They needed an accurate and scalable source of information. They looked to social media. The firm integrated big data across their IT systems, using near real-time the analysis of 33M customer data records, web logs, billing data and social media information. The result: The company was able to cut customer defections in half in a single quarter. Cut customer defections in half in 90 days. Source: Financial Times ® 2010 Confidential and Proprietary 17
  • 18. 4 -- MOBILIZING ADVOCATES (cc) 2014 Creative Commons. Some Rights Reserved. 18
  • 19. Advocate programs are a major new element of org structure (cc) 2014 Creative Commons. Some Rights Reserved. 19
  • 20. 5 -- TRANSFORMING FOR ENGAGEMENT Incremental change means incremental results. (cc) 2014 Creative Commons. Some Rights Reserved. 20
  • 21. Better organization for Social Business (cc) 2014 Creative Commons. Some Rights Reserved. 21
  • 22. 6 -- PROCESSES THAT ARE SCALED (cc) 2014 Creative Commons. Some Rights Reserved. 22
  • 23. Org structures for scaling “working out loud” Make Direct Contribution Start Request Participation and/or Begin Open Work Discuss Open Work Effort Create Initial Work Seed Finish Co-Curate Open Work Effort End Open Work Effort Community Management Open Work Definitions Legend Co-Curation Community Management A social business work process where anyone can contribute. You choose the boundaries of the community. Community-based decisions on the best contributions to integrate into the ultimate open work effort. The process of 1) drawing in the participants, 2) managing their engagement, 3) enforcing standards, and 4) eliciting their participation. Open Work Initiator Community Participant This community management, but what else? (cc) 2014 Creative Commons. Some Rights Reserved. 23
  • 24. 7 -- CLOSED LOOP ENGAGEMENT PROCESSES (cc) 2014 Creative Commons. Some Rights Reserved. 24
  • 25. 8 -- DISRUPTING THE COMPETITION Usually by using #socbiz to solve longstanding business problems (cc) 2014 Creative Commons. Some Rights Reserved. 25
  • 26. Do we need frameworks to reach the next-gen org? If so, do we have what we need? (cc) 2014 Creative Commons. Some Rights Reserved. 26
  • 27. And what is a framework, really? points of customizability It’s a pre-built approach with holes cut out for the details of your business (cc) 2014 Creative Commons. Some Rights Reserved. 27
  • 28. There have been frameworks from the start (cc) 2014 Creative Commons. Some Rights Reserved. 28
  • 29. (cc) 2014 Creative Commons. Some Rights Reserved. 29
  • 30. (cc) 2014 Creative Commons. Some Rights Reserved. 30
  • 31. (cc) 2014 Creative Commons. Some Rights Reserved. 31
  • 32. (cc) 2014 Creative Commons. Some Rights Reserved. 32
  • 33. (cc) 2014 Creative Commons. Some Rights Reserved. 33
  • 34. Podularity (cc) 2014 Creative Commons. Some Rights Reserved. 34
  • 35. (cc) 2014. Creative Commons. Some Rights Reserved.
  • 36. Social Business Architecture Framework (cc) 2014. Creative Commons. Some Rights Reserved.
  • 37. How about community management? (cc) 2014 Creative Commons. Some Rights Reserved. 37
  • 38. How about a technical approach? (cc) 2014 Creative Commons. Some Rights Reserved. 38
  • 39. Can we even change our DNA with a plan? (cc) 2014 Creative Commons. Some Rights Reserved. 39
  • 40. What if frameworks aren’t necessarily the best approach? • What if things like heuristics are? - One of the reasons we went with the 10 tenets in #SocBiz By Design • What if we really need updated management theory instead? • Can a framework ever really have everything we need to succeed? The Ten Tenets of Social Business (cc) 2014 Creative Commons. Some Rights Reserved. 40
  • 41. Because if we forget what makes social business special... • Community-led and open • • • • business processes Emergent and self-organizing outcomes More transparency, more available knowledge Better engagement, everywhere High-scale and cost effective results ...then there is no point (cc) 2014 Creative Commons. Some Rights Reserved. 41
  • 42. There is a broad pattern in frameworks for next-gen orgs emerging however... • Decentralization • User-control • Need to cope with constant change • Adaptive processes • Local autonomy • Sustainable transformation (cc) 2014 Creative Commons. Some Rights Reserved. 42
  • 43. Functional next-gen frameworks seem to be most effective • Specializing in a specific • capability Marketing and sales Supply chain (especially exception handling) Project management Customer care Product innovation Community management Advocacy Implication: A custom framework of proven functional frameworks seems to be best (cc) 2014 Creative Commons. Some Rights Reserved. 43
  • 44. In the end, what most organizations need... • Is guidance and a way to cross check their journey • To build on the shoulders of those that came before • And to make sure they haven’t forgotten anything - Especially fundamental principles • In other words... (cc) 2014 Creative Commons. Some Rights Reserved. 44
  • 45. So most orgs end up building their own And mostly they are relatively informal. (cc) 2014 Creative Commons. Some Rights Reserved. 45
  • 46. But the best ones do it with their community This is what most successful next-gen orgs are doing (cc) 2014 Creative Commons. Some Rights Reserved. 46
  • 47. The full story is in Social Business by Design • Published May, 2012 • From John Wiley & Sons • The definitive management • • • • strategy guide and handbook on social business. Based on real-world experience from nearly 100 high-impact examples. The most complete and actionable statement on social business and why it’s strategically vital. Recently #1 in Amazon’s Hot New Releases Companion Web site at http://socialbusinessbydesign.com (cc) 2014 Creative Commons. Some Rights Reserved. 47