Social DNA, by Dion Hinchcliffe

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The Big Change:Building Big Dataand Social DNA

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® 2012 Dachis Group 2

IntroductionDion Hinchcliffe

• Chief Strategy Officer• http://dachisgroup.com

• mailto:[email protected]

• ZDNet’s Enterprise Web 2.0• http://blogs.zdnet.com/Hinchcliffe

• InformationWeek’s Social Business By Design• http://informationweek.com/thebrainyard

• : @dhinchcliffe

Spring 2012

http://hinchcliffeandco.com/

http://hinchcliffeandco.com/

mailto:[email protected]

mailto:[email protected]

http://blogs.zdnet.com/Hinchcliffe


http://informationweek.com/thebrainyard

http://informationweek.com/thebrainyard

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Social has been aroundfor a while now

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Telephone

1890

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Internet Email & Websites

1993

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Life Expectancy of S&P 500 CompanyPace of Technology Change

Change is speeding up...

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BlogsWeb 2.0

Social MediaEnterprise 2.0

Social Business#CX

200320042005200620082012

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All to create better and more meaningful

connections with each other.

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What do these changes have in common?

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transactions engagement

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CORPORATIONS ARE ONLY SLOWLY ADAPTING TO THE ERA OF ENGAGEMENTSTATISTICS ON ADOPTION

The Adoption Rates of E-mail, Social Networks, and #SocBiz

20112006

1B

750M

500M

250M

2007 2008 2009 2010

Sources:

projected

ConsumerSocialNetworks

E-mail

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

(cc) 2013 Dachis Group. Creative Commons. Some Rights Reserved.

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The channel shift has been global & swift

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From: Social Business By Design, 2012 1.3 billon

people5 years


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The Backdrop:Priorities of Business Leaders for 2013

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Dachis Group

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What breakthrough is taking us there?

Fast Data Big Analytics Deep Insight

IncreasingAge & Maturity

Big Data: The Moving Parts

terabytes petabytes exabytes zettabytes

the amount of data stored by the average company today

the growth of data will be exponential for the foreseeable future

MapReduce

Hadoop

kdb

Vertica

Netezza

Esper

Greenplum

ECL Teradata

Hive

MATLAB

SciPy

SAS

Mahout

Revolution R

SPSS AMPL

network analysis

predictive modeling

simulation

visualization

unsupervised learning

social media analytics

sentiment analysis

BPO BI

Business Objectives

From http://blogs.zdnet.com/Hinchcliffe

ETL





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But many companies are still just doing what

used to work.

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600BA Year

Investing in EngagementWe spend a LOT to try to achieve it...

$

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Social Is the Ideal Platform to Engage@Scale

Premise:

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What happens when we don’t?


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What Happens When You Do....

Live Community. 7.5 million social support users per year (over 20 million of social support transactions a year.) Used extensively in multiple product lines in their SMB division.

• Long struggled to use software to compete with live human beings (H&R Block, the previous #1 tax preparer)

– Decided to collaborate with customers to help support their users during an extremely time intensive yearly process: tax season

– New process allowed anyone, either workers or customers, to answer customer support questions in real-time

– Greatly lowered abandonment of the product and make TurboTax the #1 product in the space for the first time

Became #1 in their industry in 12 months

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Can be used to drive business outcomes in scale:

SalesCustomer Retention

Customer CareProduct Development

Crisis Resolution

Awareness Passion Mindshare Advocacy

Scale, Data, and an Interactive MediumCreates opportunity for insight and engagement business value

THE ENGAGEMENT PROGRESSION

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Current Approach

#FAIL

Bigger staffs #FAIL You can’t staff into capitalizing on engagement @ scale

A staff of 11

©2012 DACHIS GROUP

ANOTHER WAYOF LOOKINGAT THIS

25

YOURCOMPANY

World

YourSocial Media

Effort

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So is there another approach?

To engage @ scale, we can mobilize our constituentsExtending your reach

® 2011 Dachis Group. Confidential and Proprietary

Organize our employees


Employees

Organize your employees to engage with the market...

Coordinate our partners


... then coordinate your partners to engage with the market...

Partners

Activate our advocates


Advocates

...then activate your advocates to engage with the market

Engagement @ Scale


All coordinated and working together to understand their own goals and their contribution to performance

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Because existing advocates don’t cut it...

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...and your advocates are actually better at

engagement than you

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Sample of Leading Employee Advocate Programs Today


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Fully social organizations get outsized benefits

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Source: 2011 McKinsey Web 2.0 Survey

Only fully social organizations can tap into the $1.3 trillion social business opportunity


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The problem?

• 96% of internal and external social business efforts are not connected

- Source: , August, 2012

• Yet that’s where the most ROI is, by far

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Social engagement 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

Social Workforce

Social MarketingCustomer Communities

integrated vision

intra

net

extra

net

Inte

rnet

The Lesson:


Dachis Group

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We must create operations to engage at scale

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Dachis Group

T-Mobile wanted to get out ahead of customer defections to other carriers. They needed an accurate and scalable source of information. They looked to social media.The Story:

The Results:The firm integrated big data across their IT systems, using near real-time the analysis of 33M customer data records, web logs, billing data and social media information. The result: The company was able to cut customer defections in half in a single quarter.

Source: Financial Times

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Cut customer defections in half in 90 days.

Data-Driven Engagement: A High-Impact Example


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How many firms are now organizing for social today

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H&R Block learned in the weeks prior to April 15th, every question that is not answered immediately was a lost sale.The Story:

The Results:Harnessed 1,000 tax professionals for Q&A in the “Get It Right” social media campaign. The effort secured 1,500,000 unique visitors and answered 1,000,000 questions. Created an operational hub to dispatch the advocates by listening and filtering continuously on Twitter and Facebook.

Source: AdWeek

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Increased overall sales that season by 15%.

Created a scaled brand connection with millions.

Engagement at Scale: A High-Impact Example

See the Intuit Example in #Socbiz By Design


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What All This Means

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• The digitally disruptive CMO will have data supremacy.

• Corollary: Investment in data-driven operations must be a first-class citizen

• Brand marketing will look more and more like other business functions

• The brand experience is becoming centered around extended multi-channel conversations, instead of media buys

• Companies must be ready at each touchpoint to engage using advocates

- Have advocate capital?- Have #bigdata-powered ops?- Have performance managed

engagement?• You need all three to succeed.


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The full story is in 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 from nearly 100 high-impact examples.

• The most complete and actionable statement on social business 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



Thank You