social media implications to the boston sim chapter

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SIM Boston Layers: Our Social Media Future

Disruptive Trends: New Media Expansion, Emerging Customer Social Behavior and Value Opportunities

September, 2010

Dr. John J. Sviokla [email protected] Blog: www.sviokla.com twitter: jjsviokla cell: 617.510.3565

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| 2 Layers: The information future

High Performance, Layer Enabled Work Teams Enable New Value

Scale

Speed

1st Wave

2nd Wave

3rd Wave Competitors

The 3 Waves of Capitalism

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Benefits

Improve Productivity

Revenue Increase

Cost Reduction

Improve Sales Efficiency

Increase Average Order Size

Customer Satisfaction

Reduce Commute Costs

Easier Scaling of References and Training

React to Changing Needs

Utilize Timely Information

Representative is Productive Faster

Other Variables?

Increase Representative Retention

Improve Advertising Effectiveness

Quantitative Benefit

Qualitative Benefit

What are my goals for social media in the short term, medium term and long term?

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• What will layers do to overall industry profitability?

• Where will the value migrate to?

• How much time do you have to adjust?

Layers: The information future

Implications in Risk: Questions

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Layers

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Can you believe this has happened in less than 20 years!

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John Jacob Astor

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William Crapo Durant


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Chad Smith, Steve Chen & Jawed Karim


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How can I flow data better, manage data better, analyze data better?

-- Rollin Ford CIO Wal-Mart

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Technology Trends

Ubiquity

Mobility

Intelligence

Richness

Modularity

Always available

Traveling “on” the person

Situational awareness and advanced functionality

Depth of media experience – video, audio, etc.

Ability to assemble, plug and play new capabilities

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Data

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Facebook at a Glance

• More than 400 million active users as of January 2010 – 50% of active users log on to Facebook in any given day – More than 5 billion pieces of content (web links, news stories, blog posts, notes, photo albums, etc.) are shared each week

• More than 3 million active pages on Facebook

• More than 1.5 million local businesses have active pages on Facebook

• More than 70 translations available on the site – About 70% of Facebook users are outside the United States

• There are more than 100 million active users currently accessing Facebook through their mobile devices – People that use Facebook on their mobile devices are twice more active on Facebook than non-mobile users

• Facebook has over 30,000 servers – Manages over 25 terrabytes of data daily for logging

Source: facebook.com 2010 Press

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Twitter at a Glance

• In Jan 2010 Twitter hit 75M unique users worldwide

• 50M tweets sent per day – growth of 1,400% from Jan 2009 to Jan 2010

• 55% of audience is international

Source: Twitter Blog Readwriteweb.com

• 50% of twitter users read tweets through applications and not the twitter home page

• 4.7M mobile twitter users as of Jan 2010

• Twitter usage via mobile browsers was up 347% (‘09 – ’10)


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The New Service Fishbowl: Social Media

• Identity • Voice of Customer

• Voice of the Customer • Self organized • Voice of the Customer

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Anatomy of a Mobile Device

Self Organization

Identity

Persistence Voice of the Customer

Increasing Functionality

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Our devices leave breadcrumbs that allow new analysis and prediction

The Great Experiment: Making the soft sciences hard

Cellphone

Blogging/Twitter

Location

Friend Networks

Frequency of Communication

Interests

Opinions

Friend Networks

Social Networking Events likely to attend

Photos/Videos

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Where are the insurers?

Who will “own” reputation?

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Customer to Company Relationship Transformed

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The New Connected Collective

• Collaborative Financing: Indie GoGo, Kickstarter • Collaborative Consumption: AirBnB • Collaborative Lending: LendingClub, Zopa

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Who Are You Serving? Generational Definitions


Baby Boomers

Generation X

Millennials

• Cohort born in years 1943 to 1960

• Largest generation to date

• Shaped by culture of 1960s (JFK & MLK assassinations, Woodstock)

• Born in years 1961 to 1981

• Characterized as rebelling from achievement and rules of previous generation

• At the forefront of dotcom and grunge movements

• Born in years 1982 to 1995

• Also known as Echo generation, the offspring of Baby Boomers

• Shaped by the ubiquity of internet and media

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Generational Comparison

Baby Boomers (‘43-’60) Generation X (‘61-’81) Millennials (‘82-’95)

Woodstock Dot com 9/11

Protest the rules Change the rules Rewrite the rules

Workaholics Work Hard, Play Hard Killer lifestyle

Distrust institutions Skeptical of institutions Irrelevance of institutions

TV PC Internet

Invent technology Use technology Assume technology

Focused Multitask Multitask in parallel

Hierarchy Hands off Teamwork

First generation kids Latch-key kids Helicopter parents

Books Bullet points Tweets

Source: Rebecca Ryan, Live First, Work Second


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Millennials: 1st Generation of Cyberspace

Millennials bring new expectations toward both

Lifestyle and Work


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Age Pyramid and Emerging Millenials

They’re sociable, optimistic, talented, well-educated, collaborative, open-minded, influential, and achievement-oriented. They’ve always felt sought after, needed, indispensable. They are arriving in the marketplace with higher expectations than any generation before them—and they’re so well connected that, if an interaction doesn’t match those expectations, they can tell thousands of their cohorts with one click of the mouse.*

*Claire Raines, Managing Millennial, 2002


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Generational Purchasing Potential

Source: Online Insurance Sales and Marketing: What’s Happening and What’s Next, 08

• More than half of all consumers up to age 60 would be comfortable purchasing auto insurance online from a known company (i.e., from a brand that they trust).


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Baby Boomers – Then and Now

Source: PEW, Generations Online 2009


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EBITDA/Employee by No. of Employees P&C and Multiline Insurers - 2004-2008 Avgs.

Smaller Larger

Less

pro

duct

ive

M

ore

pro

duct

ive

Med

ian $

113K E

BIT

DA p

er e

mplo

yee

Median 4,100 employees

Quadrant 3 Higher labor productivity, Smaller

Quadrant 4 Higher labor productivity, Larger

Quadrant 1 Lower labor productivity, Smaller

Quadrant 2 Lower labor productivity, Larger


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Internally: High Performance Teams Cluster Around Expertise

Expert in Charge

Bitsmith (e.g. the person

who helps gather, shape

and use information)

Administrator

Sub-specialty Expert #1

Sub-specialty Expert #2…N

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Internally: High Performance Task Groups Self Organize, But With Linkage

Expert in Charge

Bitsmith

Sub-specialty Expert #1

(Often Content Based)

Sub-specialty Expert 2 to N…

Administrator

EXECUTION

PROCESSES

STANDARDS

Data

Capital

Transactions

Designs Decisions

Work Group

Free to design within work group activities & processes

Work Group must conform to input / output standards

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To be Big & Fast You Need to Have Both Hierarchies and Markets

Scale

Speed

1st Wave

2nd Wave

Companies as Markets and Hierarchies

The 3 Waves of Capitalism

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Benefits

Improve Productivity

Revenue Increase

Cost Reduction

Improve Sales Efficiency

Increase Average Order Size

Customer Satisfaction

Reduce Commute Costs

Easier Scaling of References and Training

React to Changing Needs

Utilize Timely Information

Representative is Productive Faster

Other Variables?

Increase Representative Retention

Improve Advertising Effectiveness

Quantitative Benefit

Qualitative Benefit

What are my goals for social media in the short term, medium term and long term?

social media implications to the boston sim chapter

Business

layers layers

information future

technology trendsubiquity

data layers

mobile twitter users

active users

sim boston layers

facebook users