The document discusses how hyper-social organizations think differently than traditional organizations. Hyper-social organizations think in terms of tribes rather than market segments. They focus on knowledge networks rather than information channels. They also think in terms of human-centricity rather than company-centricity. Hyper-social organizations leverage social business processes by turning traditional processes into social processes to gain scale, quality, passion, and word-of-mouth. This requires embracing what people want and giving them access while protecting intellectual property. It also necessitates social graphs and social CRM to put the customer at the center.

1. The Hyper-Social Organization Book Launch – July 22nd , 2010

2. Overview 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 2

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

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

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

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

7. Let’s get a level deeper on the Human 1.0… 7

8. Why are social beings helping one another? Reciprocity = a Reflex 8

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

10. Why do people like to look like others? Because humans have mirror neurons 10

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

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

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

14. What are the important Human 1.0 Hyper-Social Traits Reciprocity – it’s a reflex that allows us to be the only super-social species without all being brothers and sisters Social framework of evaluating things vs. market framework The role of fairness in assessing situations The importance of looking cool and mimicking others Herding and self-herding (early research shows that social behavior does not change when it scales) 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. Barry Judge, CMO Best Buy http://www.cmotwo.com 14

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

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

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

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

19. What is it that they do different? Hyper-Social Organizations 19

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

21. Turning a business process into a social process IS NOT: 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. BUT IS: 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. TAPPING INTO PASSION, AND HUMAN 1.0 TRAITS 21

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23. Infrastructure & Processes Impact on IT 23

24. Don’t put a wall between company and people 24

25. Don’t put a wall between company and people 25

26. Embrace what people want …and give them access…it will increase passion & productivity! 26

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

28. Move with caution – it’s not easy! We need Social graphs We need Social CRM 28

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

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

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

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

33. Remember: We’re people.