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Introducing Open Business 90:10 Group: Your Open Business Partner

Introducing the Open Business Program

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We adapt organisations to the needs of a rapidly changing world; one which demands ever greater connectedness, openness and meaningful relationships with customers.  Too often the seismic shift we are experiencing is being dealt with on an issue-by-issue basis. Reactive piece-meal tactics create a permanent state of panic-ridden catch-up. Learnings are lost in silos, failures are swept under carpets.  We believe there is an holistic strategic solution which provides a framework for change, leap-frogging the tick-box exercise of simple implementation of social technologies. It makes organisations future-ready like never before. That solution is our Open Business Program.

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Page 1: Introducing the Open Business Program

Introducing Open Business90:10 Group: Your Open Business Partner

Page 2: Introducing the Open Business Program

Open Business ProgramOur framework for change

• We adapt organisations to the needs of a rapidly changing world; one which demands ever greater connectedness, openness and meaningful relationships with customers.

• Too often the seismic shift we are experiencing is being dealt with on an issue-by-issue basis. Reactive piece-meal tactics create a permanent state of panic-ridden catch-up. Learnings are lost in silos, failures are swept under carpets.

• We believe there is an holistic strategic solution which provides a framework for change, leap-frogging the tick-box exercise of simple implementation of social technologies. It makes organisations future-ready like never before.

• That solution is our Open Business Program.

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Contents

1. Introducing the Open Economy (Slides 4-15)2. Defining Open Business and its Principles: (Slides 16-28)3. How does your organisation measure up? (Slides 29-32)4. Starting your journey : (Slides 33-42)5. Why partner with us: (Slides 43-47)

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IntroductionThe Open Economy & Open Business

• Social media has shown people are willing to engage with brands; share, discuss, create and offer ideas

• It has given birth to new platforms dedicated to opening innovation to the crowd

• Most believe this can deliver value across the whole organisation from marketing to product and service innovation

• But few know how to move beyond experimentation to scale into business transformation

• As big firms struggle to overcome their legacy issues market forces become more open, connected, and social

• This means big disruptions and challenges to them and their agencies • We call this environment The Open Economy and our framework for

response to it is Open Business.

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The Open Data MovementWe now expect data to be shared and open

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API: The idea of organisations making their data easily accessible to outsource and derisk innovation or offer for public good

Companies such as Facebook are valued on the data of its users – who trade it in return for utility

Hacktivism at its roots is about exposing hidden truths; be that how poorly companies protect your data or the secret dealings of super powers and shady corporations.

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Open CapitalThe democratisation of capital means increased competition

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• There are more than 450 crowd-funding platforms around the world• With 5 white-label crowd-funding platforms introduced this year• To date $1.5 billion dollars has funded more than 1 million projects• 55% in Europe, 44% in the US and 1% in other regions• The average crowd-funding project takes 10 weeks from beginning-to-end

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Open Innovation ScaledCo-creation is being applied across all business innovation gates

Open Innovation has existed since the 1960s, a term promoted by Henry Chesbrough, but with the recent advent of affordable and widely used collaborative technologies, it can be applied at scale.

There are now hundreds of co-creation and idea crowd-sourcing platforms and case-studies across almost every sector from FMCG to Automotive. With brands like Proctor & Gamble driving 60% of all innovation from partnerships outside their organisation.

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Networked Human CapitalAn increasingly virtual workforce crowd-sources solutions

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The Open EconomyThe new market reality

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Open Data Movement

Powered by: Social Media + Internet Culture of Openness x People

Open Innovation Scaled

Open Capital(Crowdfunding)

Open Organisation

(Crowdsourcing)

The Open Economy

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Open Business

Crowd-sourcing Crowd-funding Co-CreationOpen Data

Untangling the buzzwordsOpen Business is the structured application of the strands of Open Economics

Netnography

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Market Forces are now; Connected, Open & LeanBecoming an Open Business is not optional just a matter of time

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Tomorrow’sCompetition

Customers Activists

Barrier to entry for competition has never been lower. Crowd-funding and white-label API tech dominate.

Almost every purchase cycle now involves a Google Search or Community Reach-out in both B2B and B2C

Organisations like Greanpeace see themselves as a platform for their advocates to lead change. Activist attacks have increased YOY.

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Open BusinessFor communication, product & service innovation

• We think of social media as a door to the outside world.

• A door to; listen, ask, connect and create with people outside both partners, customers and experts.

• All for the purpose of competitive advantage in marketing, service and product innovation.

• Over the last 3 years we have developed a frame-work to deliver open business at an Enterprise level for blue-chip companies

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Closed businesses can’t competeOpen equals a better fit with the networked world

• Many of the success stories of the 21st Century are built on multiple Open Business Principles. Google, Apple and Amazon are among the more famous.

• According to IBM’s CEO survey in May 2012, companies that outperform their sector are 30% more likely to identify ‘Openness’ as a key factor in their success with particular benefits for collaboration and innovation.

• Businesses starting today build on the Principles of Open Business from the word go. They do so because the principles are self-evident to those growing up in a networked world.

• They know they are simply the most effective way of taking greatest advantage of the world as it exists today.

• This places them at significant competitive advantage over those who are not seeking to apply the principles for legacy or other reasons.

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Challenges of the Open EconomyIssues for today’s corporations to address to survive

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Glocal Needs Corporate Citizenship

Declining & Migrating Trust

Exponential Data Sets

The combination of Globalisation in an internet age requires multinationals to be consistent globally but reflect local cultural nuances in a real-time way. This challenges traditional organisational structures and requires a breaking down of silos and market divisions.

It is no longer acceptable to just make a donation to charity or speak of good intentions through your CSR department. Our connectedness means you can’t just say, you have to do. If you want to be part of the online community you are expected to actively participate in the world around you as a good citizen

Trust in large media companies and brands is in decline. It is migrating to peers but in a complex and ever shifting way. The days of control advertising or clever PR are over.

More and more data is available for companies to mine - and make sense of. From big data, to real-time and behavioural data from mobile, social and other new sources. The desire to simplify the complexity is increasingly difficult to resist. But this reductionism risks destroying the true value.

People / System Community Culture Influence Insight

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Minimum demanded in an Open EconomyNew entrants are emerging with these attributes as their default

1. Transparency2. Openness3. Connectedness4. Purpose

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Open Business Definition:Making partners of customers

• An Open Business is one which uses its available resources to;-Discover people who share its Purpose-Brings them together to realise that Purpose.

• It is designed from the outset to scale through participation.

• It makes partners of customers.

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10 PrinciplesOf Open Business

1. Purpose 2. Open Capital3. Networked Organisation4. Sharability 5. Connectedness6. Open Innovation7. Open Data8. Transparency9. Member-Led10. Trust10/04/2023 17

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Applying the Principles in general offers...

• Better market and customer knowledge• Better fit with customer need,• Accelerated more successful innovation, • Evidence-based decision making• New access to capital,• More effective knowledge management• Improved internal and external collaboration and idea generation• Lower (distributed) risk through networks of partners, • A greater sense of doing business that benefits the society in which you operate• A greater sense of customer and employee ‘ownership’ through the

democratisation of business• Raised levels of trust – and customer and employee loyalty and satisfaction

which derives from this• More attraction and retention for the right talent and customers.

10/04/2023 18Applying them in particular delivers >>>

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1. PurposeThe market for something to believe in is infinite – Hugh MacLeod

Purpose is the why, it is the belief which all your stakeholders share and to which all your organisations actions are aligned without compromise. Your products / services are proof of that shared purpose.

• Organisations driven by purpose outperform the general market 15:1 and comparison companies 6:1.

• They deliver greater retention of staff and customers• They achieve greater advocacy and therefore rely

less on interruptive marketing• They become as important to people’s lives as a

cause-based organisation. Relationships go beyond the transactional

• More resilient in an economic down-turn• They have greater ability to enter new markets as

they are not defined by their products but by their beliefs

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2. Open CapitalLowering the risk of testing new markets

Using crowd-funding platforms or principles to raise capital through micro-investments

• Lowers cost of innovation and marketing • De-risks innovation; delivers proof of concept

and pre-qualifies markets• Generates pre-sales and order book• Primes advocate platform pre-launch• Opens the innovation process early• Democratises innovation• Enables the scaling of niche innovation

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3. Networked OrganisationDistributing the risk of doing business

• Links people and teams across conventional boundaries (e.g. departments and geographies)

• Enables pragmatic scaling with a more flexible workforce

• Allows greater capacity efficiently• Closer to market and customer• Maximises the knowledge potential and flow

of an enterprise; • Minimises threat of disruption; a network has

greater resilience, responsiveness and adaptiveness.

The organisation functions as a platform connecting internal networks to the external for a common purpose

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4. SharabilitySharing the value of what you know

Packaging knowledge for easy and open sharing both internally and externally

• Taps into peer-to-peer distribution networks reducing cost to market and of targeting

• Raises thought-leadership profile• Breaks down internal silos and external /

internal barriers• Encourages the repurposing of information • Delivers lateral thinking and new perspectives • Value exchange reinforces connections and

relationships• Allows cost and time efficiencies, reduces

duplication• Ensures an organisation learns collectively and

more quickly• Improves the spread of internal best practice

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5. ConnectednessLeveraging the power of your people

Connecting all employees internally to one another and externally through open social media

• Demonstrates openness and accountability improving customer satisfaction

• Increases the opportunity for serendipity and innovation

• Humanises your company making business personal

• Allows employees to; grow, build and manage relationships with customers and partners more easily - improving retention

• Connects organisations to their employees’ networks scaling their collective reach

• Enables for two-way flow of information and intelligence improving market knowledge

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6. Open InnovationMaking better fits, more efficiently, to market needs

Innovating with partners by sharing risk and reward in the development of products, services and marketing

• Distributes the risk of innovating • Reduces the risk that the innovation’s

won’t fit the needs of its intended market• Develops customer ownership of the

innovation pre-launch• Allows for external ideas to be surfaced

early on in the process• Scales idea generation and development

with greater efficiencies

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7. Open DataEnsuring your data is available for reapplication by outside the organisation

Making your data freely available to those outside your organisation who can make best use of it

• Externalises and scales R&D while reducing cost to innovate and market

• Allows for crowd-sourced innovation and the repurposing of your data to deliver value in unimagined ways

• Gives birth to new economies and innovations

• Distributes the management of the exponential growth in data-sets

• Distributes the risk and reward of data innovations

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8. TransparencyBuilding trust and affinity

Decisions, and the criteria on which they are based, are shared openly

• Ensures the organisation makes decisions consistent with its purpose and in line with its declared beliefs

• Incrementally improves the performance of the business through crowd checks and balances

• Attracts the right employees, partners and customers

• Softens unpopular decisions by being honest and open about the rationale

• The act of open decision making builds affinity and trust

• Corrects imbalances creating a fairer workplace

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9. Member LedBeing a better fit with the networked world

Your organisation is structured around the formal cooperation of employees, customers and partners for their mutual social, economic, and cultural benefit

• A more cooperative model is a better fit with the networked world based upon community values

• Creates a shared sense of ownership and responsibility – of belonging

• Views customers as equal stakeholders • As loyalty to brands and large organisations

decline, member-led companies offer a reason to continue relationships

• Provides a feeling of being able to influence to feel valued

• Removes the tension between employee and employer (unions and shareholders)

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10. TrustTrust is essential for Open Business

Mutually assured reliance on the character, ability, strength, or truth of the partnership

• Partnership, the paradigm of open business, requires it

• More resilient relationships with stakeholders

• Trust in corporations and advertising is decreasing year-on-year (Endleman Trust Survey) so to excel in it offers a distinct advantage

• Increases brand equity. A significant element of shareholder value

• Inspires the default selection of your offering in competitive environments

• Builds an emotional connection with a customer, partner and employee lowering the cost of acquisition and retention

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How do you measure up?Benchmark your organisation

• We believe the 10 principles of Open Business are a benchmark against which the performance of any organisation could and should be judged.

• For each we offer ‘Goal State’ as the ideal outcome (a perfect outcome) of our strategy consulting work with clients.

• In the following slides we also describe the ‘Worst Case’ position – to enable you to quickly benchmark your organisation’s progress towards each of the Goal States so far, and against which we can measure your progress in the future.

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Score out of 5

• 1. Purpose: • Goal State (Scores 5/5): You have a clear ‘Why’ of

the organisation – why it exists (what is it about the world you are trying to put right/fix etc). Everyone who knows of you knows of your purpose.100% of your actions are aligned with and express that purpose.

• Worst Case: (Scores 1/5) The number one reason your business exists is to make money. Mission statements simply enshrine the requirement to deliver shareholder value.

• 2. Open capital:Goal State (Scores 5/5): The organisation is 100% crowd-funded

• Worst Case (Scores 1/5): All funding comes from ‘big capital’ – VCs, institutional shareholders –

concentrating power over the organisation and its aims in those institutions.

3. Networked organisation• Goal state (Scores 5/5): No more than 1 in 10 in

your organisation’s ecosystem are employees – the rest partner with you from outside the organisation. Your staff act as an enabling platform for participation from outside the org.

• Worst Case (Score 1/5) You employ staff to fulfil every function of the enterprise.

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Score out of 5

4. Sharability: • Goal State (Score 5/5) Knowledge/thought

leadership in all formats is created in such a way that it can be easily and readily published openly, and shared. Share functions are built into each document/asset. Creative commons is the default.

• Worst Case (Scores 1/5) Knowledge created in the organisation stays within the organisation. Anything published outside is done so with extensive copyright protections in place.

5. Connectedness:• Goal State (Scores 5/5) All employees are using

open social media daily for external connection and applying it to make best use of the synchronous/asynchrynous opportunities of the global web. Internal/external comms are rarely distinguished.

• Worst Case (Scores 1/5) Social media is actively discouraged during working hours. Internal comms

are one-way broadcasts from the centre and kept strictly internal.

• 6. Open Innovation: • Goal State (Scores 5/5) 100% of developments in

service, product or comms design are made in collaboration with people outside the org in an organisationally-appropriate co-creation process.

• Worst Case (Score 1/5) All developments are made in secret and internally.

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Score out of 5

7. Open data: • Goal State (Scores 5/5) Any data generated or

collected by the organisation is made publicly available where there is a possibility that sharing this data can create additional public good. Eg apis. All data is searchable internally and externally.

• Worst Case (Score 1/5) Data is jealously guarded and kept secret. Competitive advantage is believed to reside in ownership rather than collaboration.

8. Transparency: • Goal State: (Scores 5/5) Decision making is done

openly, with the process exposed to all employees, stakeholders and anyone wishing to hold the org to account. Board meetings (within legal constraints) are open to all and offered as a webcast/webinar.

• Worst Case (Scores 1/5) Decisions are made behind closed doors without explanation. Records are shared only as required by law.

9. Member led: • Goal State (Scores 5/5) 100% of all key decisions

(within legal constraints) are made by and with those charged with implementing them in collaboration with partner-customers (members) and/or wider supporters of the organisation.

• Worst Case (Score 1/5) All key decisions are made at board level and imposed downwards on those charged with implementing them. Stakeholders and customers are considered only in the context of what can be gained from them.

• 10. Trust:• Goal State (Scores 5/5). Stakeholders, partner-

customers (members), employees have 100% trust in your organisation’s mission and motives as measured in 360-degree surveys. 90% of new business is generated by peer recommendation.

• Worst Case (Scores 1/5). Trust levels are measured at sub 10%. 90% of new business is generated through marketing spend

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What next? You are invitedWe are looking for pioneers to partner with on a journey of strategic change

• We have been working directly with blue-chip brands for the last 3 years.

• Now we are looking for pioneering teams to partner with us to realise Open Business through the unique frame-work of projects and work-streams we have developed.

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Open Business PackagesPragmatic approach to change

Open Business Council Program(Annual fee per Client)

Mentoring(Total 11 days per person, over

3mth program)

Open Business Masterclass

(With up to 10 seats)

Customer Open Day

Pro

gram

Com

mitt

ed

Exp

lora

tory

Change ProgramInitial Learning/Program preparation

We help you prepare your teams, identify sectors/divisions most at risk of disruption, and engages them in a clearly defined yet flexible Open Business program.

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Open Business MasterclassWhat’s changed and understanding the impact on your business

What

An exploratory internal masterclass led by one of the Co-founders of 90:10 Group – an Open Business consultancy with 3+ years of focused experience. Up to 10 client staff can join us to explore the practical application of Open Business including:

-Open Business principles and practices-Key trends explained: co-creation, netnography, crowd-sourcing-Market segmentation and consultancy process-The Open Business customer road map-Products and services to move your client along the journey from entry level to

excellence-People/Skills required to deliver Open Business-Case studies to bring the day to life

1 day on-site senior consultancy in advance, to tailor requirements based on level of knowledge of participants and intended goal state.

Collateral developed based on this tailoring – bespoke slide decks, take-away materials for circulation.

Why?• Engage your staff with the new business reality and its impact on clients• Learn how to contextualise and internally pitch Open Business trends • Untangle buzzwords and understand their application at an Enterprise / systemic

level• Empower digital leads / change agents • Hear real world cases of from actual practitioners• Begin your Open Business journey

Open BizMasterclass

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Open Business Masterclass TimelineWhat’s changed and understanding the impact on your business

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Preparation Workshop Session

Needs Consultation

Open Business Principles to apply today

Roadmap built from initial gap analysis

Gaps in Skills & Competencies identified

OB Trends & Principles

Documentation Creation

Inputs: Outputs:

Day documented and draw up in highly sharable social format

( 1 Day) (1 Day)

OB Change RoadmapMarket Understanding

OB Skill s & Gap AnalysisCase-studies shared throughout

Post-Support Available

Open BizMasterclass

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Open Business MentoringManaging and supporting change leadership

What

Change needs leaders to drive the agenda and inspire others. But leading change is a lonely job and especially challenging in a new and evolving space. We aim to provide your Open Business change agents with the one-to-one support of communicating, learning, championing and delivering the new reality including understanding the practical and cultural barriers to adoption. This is with a 90:10 Group founder and is billed at a retained daily rate.

Why?• Engage your staff with the new business reality• Learn how to contextualise and communicate trends • Untangle buzzwords and understand their application at

an Enterprise / systemic level• Empower digital leads / change agents • Hear real world cases of from actual practioners

Open BizMentoring

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Open Business MentoringWhat’s changed and understanding the impact to clients

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Orientation 1-1 Mentoring

Needs Gap Analysis

Dept position on Open Business

Integration into company culture

Begin a change program

Market Understanding

Research Primers

Inputs: Outputs:

Develop processes and delivery capability

( 1 Day) (3 Month)

Partner , New Hire Selection & EngagementSkills Gap

Analysis

Project Planning

Comprised: f2f, email and telephone

Post-Support Available

Opportunity / Threat Identification

Open BizMentoring

£8kpm

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Open Day: Events without wallsA social media powered open day

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What• Invite up to 5 of your employees to ask the crowd their most

pressing questions and have them answered in a rich and fun way.• Each external party comes connected to a network of a minimum

of 1,000 people giving a combined network reach of 10,000 people

• At select points we let them use their preferred social media channel to open up the day to their followers and fans

• We can use this as an opportunity to scale debate and opinion, quantify and sense-check conclusions

Why?• Learn why being open is inspiring• Deepen brand affinity• Build & strengthen relationships with key people• Develop loyalty and understanding• Ask questions and give answers• Discover new habits, trends and needs.

Customer Open Day

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Open Days TimelineA social media powered open day

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Preparation Session

Needs Consultation

Recruitment of invitees

Surfaces & colours key issues

Co-created possible solutions

Instant Crowd feedback & shared

1. Group Storming;

-Why I care?-The problem with X is..-How can X be better?

2. Network Reach-Out:

-Open doors for ideation, sense-check and colouring -Prioritisation crowd-sourced-Client filters (openly)

3. Influencer Check:

-Google Chat with influencers to gauge their feed-back & opinions-Refine and co-create conclusions to their opinion

Invitee Discovery

Inputs: Outputs:

Socially sharable concepts (internal & external) - ezine

(4 Day) (1 Day)

Customer Open Day

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Open Business CouncilWorking in partnership to realise transformation & change

What• We partner with you to install a virtual Open Business Council

charged with putting in place; the people, process, connections and ecosystem to become an Open Business benchmarking against the 10 Principles.

• We audit you across 8 work-streams at each step 90:10 provide mentoring, support and leadership

Why?• Lead business transformation• Future proof against digital disruptions• Allow your dept to become more innovative, efficient and open• Extend your reach into communities of external stakeholders

building trust and loyalty• Broaden connectivity across depts• Build a system to workflow external data real-time for business

planning• Build crowd-sourcing, co-creation, open data, open innovation and

netnography into the daily DNA of your business

Open BizProgram

Workstreams:

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1. Organisation2. Strategy3. Culture

Technology

Process

Relationships

Transparency Information

Open Business CouncilProgram 8 Principles Mapped

Realise Open Business transformation

Better market and customer knowledge

Accelerated and successful innovation

Outputs:

Better fit with customer need

Inputs:

Open Business Immersion Session

Open Day (Cultural On-boarding)

Gap Analysis + Work-stream Prioritisation

Open Business Audit (Internal & External)

Council Elected & Stream Ownership Delegated

Open BizProgram

Evidence based decision making

More effective knowledge management

A greater sense of doing business of benefit to society

Greater levels of trust , satisfaction & retention

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Not Gurus but practitionersWhile the rest of the world has been creating Facebook pages..

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£3.5 million in consulting fees over 3 yearsOver 20 projects for 15 blue-chip brands (References available on request)

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David CushmanCo-Founder of Open Business Consultancy 90:10 Group.Former Director of Social Media at Brando SocialFormer Digital Development Director at Bauer Media. Founding member of the Open Business Council.

25 years in business, 13 years in digital business, 5 Years in Social Media, 3 years in Open Business.

Global thought-leader: Keynote at CeBit, Hannover, 2012, permanent member of the Financial Times Judgment Call panel, author The Power of the Network.Practical experience in delivering Open Business with Tesco, Bupa, First Capital Connect, Honda Europe, Rolex, The Co-operative etc.

Helping you90:10 Group’s co-founder: David Cushman

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Helping you90:10 Group’s co-founder: Jamie Burke

Jamie BurkeCo-Founder of Open Business Consultancy 90:10 Group.Led product and market development across EMEA recruiting and developing teams to deliver revenues of £3.5m in less than three years. Founding member of the Open Business Council.

12 years in business, 10 years in digital business, 5 Years in Social Media, 3 years in Open Business.

Global thought-leader: Respected blogger and regular speaker at events across Europe.Practical experience in delivering Open Business with Hermes, Citrix, Durex, Carlson Wagonlit Travel, Mastercard, Microsoft Advertising, Honda Europe, Tesco etc

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2010

2011

Contracted to help Honda Europe open comms and workflow consumer engagement and social media data flow.

Contracted to co-create a consumer vertical community to inform; store-buying, drive new sales and retention

Netnography project for brand realignment based upon community needs and perceptions

Contracted to help Bupa and agencies Co-Launch; develop and market a new service offering based on community profiling

Contracted to help Hermes operationalise customer service and PR in social media

Contracted to help CWT design and roll out Social Enterprise model globally across key depts.

We have been engaged by a number of Coops to realise a truly member-led networked organisation.

We have been engaged by Mastercard Europe to realise their becoming an Open / Social business by 2016

PAN- EURO LAUNCH

Q2

2012

EXPANDS TO MENA

Q3 Q2

Q3

SCALES THROUGH PARTNERSHIP

Q2

Q3

2010-2012, Pioneering Open Business

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For next steps:

David CushmanCo-Founder & Managing Director 90:10 GroupLondonE. [email protected] | M. +44 (0)7736 353590 | W. 9010Group.com | August 2012

Skype: david.cushman | My Blog | My Tweets | LinkedIn | My book: The Power of The Network

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