The document discusses how hyper-social organizations leverage social media to transform their competitive advantage by focusing on human-centric business processes rather than traditional marketing methods. It emphasizes the importance of reciprocity, community engagement, and breaking down barriers between companies and consumers to increase passion and productivity. The key takeaway is that businesses should prioritize understanding human social behaviors and interactions to adapt to a hyper-social world.

1. Transforming Competitive Advantage with Social MediaPrepared for the CIO Year Ahead Summit – Palm Springs, Nov 8th, 2010@fgossieaux

2. OverviewUnderstanding the true drivers of Social MediaHow do Hyper-Social Organizations think about their business?What do Hyper-Social Organizations do Differently, and WHY?5 ways to think differently about IT

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

4. The SAP Developer Network4Stats:1.4 M users400K+ business expertsContent-richOriginal Incentive System:Point system leading to personal rewardsThe Results:Bullying behavior in the communityNew Incentive System:Point system leading to donation to good causeThe Results:No more bullying in the communityWeb 2.0 or Human 1.0?

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

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 creaturesYou do not need to understand the Web 2.0 technologies

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

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

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

10. How do we make decisions?Market FrameworkSocial Framework

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

12. 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

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!

14. We are a herding species – self herding even

15. What are the important Human 1.0 Hyper-Social TraitsReciprocity – it’s a reflex that allows us to be the only super-social species without all being brothers and sistersThe role of fairness in assessing situationsSocial framework of evaluating things vs. market frameworkThe importance of looking cool and mimicking othersHerding 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 Buyhttp://www.cmotwo.com

16. How they think differently about their businessSuccessful Hyper-Social OrganizationsInformed by Tribalization of Business Study:2008-2010 – 1,000+ companies took the survey

17. Hyper-Social companies think differentlyThink tribe – not market segmentWe need to find groups of people who have something in common based on their behavior, not their market characteristicsThink knowledge network – not information channelThe most important conversations in communities happen in networks of people, not between the company and the community.Think human-centricity – not company-centricityThe human has to be at the center of everything you do, not the companyThink emergent messiness – not hierarchical fixed processesPeople 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. What is it that they do differently?Hyper-Social Organizations

19. Hyper-Social Orgs – Leveraging Social Business ProcessesSuccessful Hyper-Social organizations turn their business processes into “social” processesWhy?ScaleIncreased qualityIncreased passionIncreased WOM

20. Turning a business process into a social processIS 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. 21

22. …In a Hyper-Social World5 ways to think differently about IT

23. 1) Bring down that wall

24. Do like IBM – get rid of the firewall while protecting IPGreen EnthusiastsCIO’sBusiness model tweakPRCustomer supportIPIPIPProduct Idea…increase knowledge flows…and competitiveness

25. 2) Don’t build new walls

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

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

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

29. …and get people commitment3) Tear down silos

30. Business objectives of communities

31. Department managing community

32. # of people managing community

33. Establish Center for ExcellenceBudgetsKPI’s

34. …or don’t let history repeat itself4) Don’t build what you built before

35. Move with caution – it’s not easy!We need Social graphsWe need Social CRM

36. 36The funnel is deadSource: McKinsey Quarterly http://www.mckinseyquarterly.com/The_consumer_decision_journey_2373

37. 37Today’s buying cycle: a social-powered continuous loop processMany more sources of informationCan still become part of consideration setTribes & NetworksBased on source: McKinsey Quarterly http://www.mckinseyquarterly.com/The_consumer_decision_journey_2373

38. CRM – the makings of a social processLeave 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 tribesWho can help her internally?Who can help her externally?Embrace a messier processAllow people to jump in and help

39. Or think out of the box5) Be counter-intuitive

40. CIO = Chief Information Officer?

41. “We find ourselves in the oddest position – which is to tell the business units that this is not a technology issue but a people and process issue.” – CIO at a major pharmaceutical companyOr….CIO = Cultural Inspiration Officer

42. The benefits of a Cultural Inspiration OfficerBetter knowledge flows = Social Knowledge Management PlatformCustomer/employee centricity = leveraging more passionLeveraging passion = increasing productivity exponentiallyMore passion = increased WOM = the creation of more customers with a higher lifetime value“The purpose of a business is to create a customer.”-- Peter Drucker

43. Any questions? Francois GossieauxPresident, Human 1.0e. francois@human1.comw. http://www.human1.comb. http://www.emergencemarketing.comc. http://www.marketingtwo.netp. http://www.cmotwo.comt. http://twitter.com/fgossieauxOur new book: The Hyper-Social Organizationhttp://www.facebook.com/hypersocialorg43