1. The document discusses how social computing and Web 2.0 are changing marketing approaches from the traditional 4Ps model to one focused on customer relationships and interactions. 2. It notes that customers now join online communities and choose their own segmentation, rather than companies dictating it. Companies must provide value to customers within these new social environments. 3. The rise of social computing also impacts internal company operations, and companies should look to similar tools to improve collaboration, information sharing, and engagement among employees.

1. TAMING THE FUTURE-SHOCK OF SOCIAL COMPUTING Peter Carr, Managing Director, Longhaus June 2007

4. The Way Things Were 4P Marketing represents how an organisation chooses to interact with its customer base Promotional activities show little consideration for how the customer chooses to interact Provided a traditional focus on: - Product not Service - Service not Solution - Solution not Relationship Took companies away from value perceptions: - 10% off promotion leads to… - 20% off promotion leads to… - 50% off promotion leads to… - Free …. leads to…

5. The Consumer Re-Think 4Ps drives a cultural outcome of: “ We’ll take any customer as long as they pay us!” For businesses, Web 2.0 means: “ Improving service offerings to provide products and services with a means of interaction”

6. The Seeds of Evolution Web 2.0 and Social Computing has ridden a wave of Future Shock - A case of too much too soon 1. Started out as a FAD - Increased broadband access drives - Increased internet adoption drives - Fosters social network sub-cultures 2. Became a TREND - Encourages consumer backlash against 4P - Highly adopted by marketing - Produces vast information by-products 3. Moving into the MAINSTREAM - Corporations attempt to harness - IT aggregates what marketing only adopted

7. Web 2.0 and Marketing Technology Platforms Drinking from a fire-hose on two fronts: - New disruptive technologies - New styles of information RSS, Blogs, Wikis, Communities etc should not just be considered as channels They need to be harmonized from a suite of technologies into a platform - Think the CFO and SAP (Finance ERP) - Think the COO and Siebel (CRM) - Think the CIO and Service Mgmt Each of these positions has carriage and responsibility for a credible information system. It is their ticket to senior management. Who will own the Web 2.0 Platform? - The CIO? - The CMO?

8. Home Truth #1: Segmentation and Web 2.0 Organisations no longer dictate the segmentation of their customer base Customers now choose. They say: “ I don’t want to be in that segment. I want to be in that one.” … And others follow

9. Home Truth #2: Customers Join Communities Organisations no longer acquire customers Banish the word “acquire” from organizational language Instead, provide customer with the opportunity to: - Interact with you - Comment on you - Rate you - Buy from you - Belong to your community And occasionally entertain them

10. Meet the Customer It is all about this guy He is more important than your CEO In the new social computing world he is: - Climbing out of the CRM system - Flexing his persona and saying, “ I am not my order!”

11. Meet the Staff Organisations should look to harness the information power of the corporate social computing network When applying Web 2.0 to your organisation, the same rules apply for staff Staff are stepping out of the business directory and saying: “ I am not my position description, or work unit, or project outcome!” For it to be successful: - Flatten organisation structures - Social computing is organic not hierarchic Use for internal brand building, information sharing, mentoring platform, staff attraction or retention

12. Enterprise Collaboration and Web 2.0 The adoption of corporate social computing is an inevitability - staff will demand it or seek it elsewhere - your competition will adopt it - it requires ownership now Organisational alignment required between marketing and technology Identify who and where in the organisation sits: - The Collaboration Strategy - The Electronic Service Delivery Strategy Then: - Seek out and find - Build relationship and realign - Provide input and align with customer - Partner, incubate and foster community

13. Longhaus Pulse TM : Australian Social Computing Solution Landscape Company Z Company A Company T Company C Individual technologies = platform Platforms are only just emerging. CEO’s are still asking, “ What’s a blog, wiki, tagging, folksonomie. Where is Iconistan?” What’s coming? - IBM – Lotus Connections - Microsoft – Office Sharepoint Server - RightNow Technologies – CRM - Omniture – Business Optimization Platform

14. Where to next? Build a relationship with the CIO: - Do this by redefining your marketing services catalogue Build communities: - Invest in the social sciences to support the organisational change Build a relationship with the HR director: - Direct marketing funding through HR. Treat employees like valued customers. Build a relationship with the ESD and Collaboration director/s: - At least locate and read the organisational strategies Receive regular briefings on consumer habits and technology advances: - Companies no longer define these things - The customer and technology landscapes are constantly changing