designing a successful social business for roi
DESCRIPTION
Executive Vice President of Strategy for Dachis Group, Dion Hinchcliffe presents: Designing a Successful Social Business Solution for High-Impact ROI @dhinchcliffe For more information, please visit http://www.tibbr.com/TRANSCRIPT
Designing a Successful Social Business Solution for High-Impact ROI
Dion Hinchcliffe (@dhinchcliffe)Sponsored by
® 2012 Dachis Group 2
Introduction
Dion Hinchcliffe• ZDNet’s Enterprise Web 2.0
• http://blogs.zdnet.com/Hinchcliffe
• ebizQ’s Next-Generation Enterprises• http://www.ebizq.net/blogs/enterprise
• EVP of Strategy• http://dachisgroup.com
• mailto:[email protected]
• : @dhinchcliffe
Spring 2012
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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.
• The most complete and business-focused statement on what social business is and why it’s strategically vital.
• Recently #1 in Amazon’s Hot New Releases
• Companion Web site at
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http://socialbusinessbydesign.com
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State of the Art in Social Business
• Efforts are more strategic andgrowing faster than ever before
• Virtually all data continue to show sustainedreal-world benefits (McKinsey, IBM, Frost and Sullivan, AIIM)
• Everything is becoming social: Social features are appearing in virtually all new user experiences
• There continues to be considerable confusion about who “owns” social in the organization
• The predicted social data explosion: It happened• Mining insight from social data has now become a
major industry (#bigdata, #analytics)• The blur between internal and external social
business has not progressed as far as many thought• The first serious talk about open social business
standards has begun
4
Strategic BusinessCommunities
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5
Social Business move to mobile
more budget
social apps
social analytics and BI
better integrated social business processes
enterprise-level organizationfor social business
Other Key Social Business Trends for 2012
internal
external
blurring begins butdoes not widely occur
community managementbecomes strategic
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Acquired Board Member
Sponsor
connect.BASFFirst Conceived by Internal Think Tank
Stand-Alone Solution Owners
Interdisciplinary Team
Involvement
Expert Communities &
Advocates
Go/No Go Decision for
Global Launch
Launch Communication
Concept Pilot Launch
2007 2008 2009 2010 2011
5K
10K
15K
20K
25K
30K
UserBase
Enterprise 2.0 Story
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Looking at the data
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Types of Business Gains Possible with Enterprise Social Media
Cost Reduction
Revenue CreationIncreased Productivity
Connected Culture
Self-service content sharing
Shorter external support cycles
Increased customer
satisfaction & retention
Self-Reported Average Industry Improvements From Large Organizations
10-20% reduction in travel and
communication costs
10-15% reduction in communication costs
10% decrease in operational costs
20-30% increase in access to expertise
30% increase in speed of access to
knowledge 35% increase in collaboration20% lower communication costs
30% faster customer care processes
18% higher customer satisfaction10% higher customerloyalty
25-30% faster access to expertise
15% increase in successful innovations & ideas
10% increased revenue
Source: Synthesis of McKinsey, Dachis Group, and other social business benefits data.
More rapid new hire ramp-
up
Faster location of
experts
Overcoming distance and
time zone barriers to
collaboration
Improved connections
between departments and internal
teams
Less time spent
looking for information
Improved global sales processes
Better business decisions
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Fully social organizations get outsized benefits
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Source: 2011 McKinsey Web 2.0 Survey
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Social business is...part of a single continuum...one unified ecosystem
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Social Businessenterprise ecosystem
customers +world
business partners
workers
SocialInnovation Crowdsourcing
Social CRM
Enterprise 2.0
Social Marketing
Customer Communities
integrated vision
intra
net
extra
net
Inte
rnet
The Lesson:
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Social isn’t happening in a vacuum• Major forces of change co-exist• Many of these significantly impact social
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The good news: Technology and productivity
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But is this coming from technology investments?
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Who is currently leading innovation?
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Yet 60% of CIOs believe they should be driving growth and productivity.
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Source: Deloitte Survey, 2011
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But technology change is happening faster today than ever before
• A tsunami of new mobile devices and technologies• A pervasive wave of social media• The rumbles of cloud computing and SaaS• The shift to DIY• A flood of Big Data
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A perfect storm of change
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Happening almost all at once
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Key data point #1: Mobile
• Smart mobile devices outshipped PCs in early 2011
• Tablets are expected to on par with PCs by 2015
• Smart mobility strategies (particularly the iPad) have now become a top priority of most Fortune 500 CIOs
• Global mobile data going geometric is going to be the largest challenge to growth and use
• App stores are creating all new conduits between IT suppliers and workers
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Mobile Internet Ramping Up Faster Than Desktop Internet by 5x
Source: Mary Meeker, Morgan Stanley
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Key data point #2
• Social is now the dominant form of Internet communication on the planet
• Enterprises are 2-4 years behind the rest of the world.
• Yet data shows that revenue of social businesses is 24% higher on average. Profitability is better too.
- Source: McKinsey and Frost & Sullivan
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The Adoption Rates of E-mail, Social Networks, and E2.0
20112006
1B
750M
500M
250M
2007 2008 2009 2010
Sources:
Glo
bal U
sers
projected
ConsumerSocialNetworks
100%
75%
50%
25%
Enterprise 2.0
comScore, Hitwise, and The Radicati Group, Forrester, APC, Intellicom, Neilsen Norman Group, Social Business Council, NetStrategy/JMC
high estimate
low estimate
Per
cent
of
Ent
erpr
ises
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Social + data analytics = business intelligence
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What a social business ecosystem looks like
Feedback Loopand virtuous cycle
Listen &Analyze
Engage
Big Data
CommunityManagement
SocialBusiness
The World
Strategyand
Policy
• Business objectives• Social business
“rules of the road”• Social media policy• Structural and
process reforms• Transformational
roadmap
• Complete view of internal and external social media
• Analytics and visualization of vital trends and events
• Automated evaluation and prioritization of strategy & policy issues
• Operational pipeline
Gu
ide
• Manage, support, and cultivate the participative aspects of social media-based business solutions, both internal and external
• Interact with customers, business partners, and workers to help and guide them towards useful business outcomes
Social Innovation
Social Marketing
Social CRM
Social Workforce
Crowdsourcing
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Tenet #1: Anyone can participate.
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Examples: FoldIt, YouTube, MTurk
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Tenet #2: Create shared value by default.
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Examples: Open source, Intuit, SAP
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Tenet #3: While participation is self-organizing, the focus is on business outcomes.
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Examples: reCAPTCHA, Chevy Apprentice, MSDN
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Tenet #4: Enlist a large enough community to derive the desired result.
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Examples: Crash The Superbowl, HBO True
Blood Large Scale Social Experience
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Tenet #5: Engage the right community for the business purpose.
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Examples: MEC, Threadless, Toyota Brake
Crises
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Turnaround possible when correct community identified
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Key Success Factors
• Everyone must be able to participate• Turn on network effects by default• Cultivate the right communities• Plan for change and the unexpected• Remove barriers to participation• Listen, analyze, and engage continuously• Integrate social into the flow of work
Thank you
May 2012