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8/14/2019 Executive Insights Into
1/14
8/14/2019 Executive Insights Into
2/14EXECUTIVE INSIGHTS INTO EntErprisE social nEt work stratEgy
ENTERpRISE SOCIAL NETwORk STRATEGy AND CREATING BUSINESS VALUE
Social networks are a reality, a signicant element o todays social andbusiness environment. Employees are already using online social networks in
their personal lives, and increasingly or work. Organisations can ignore thisphenomenon, or they can choose to be proactive in exploiting the potentialvalue and managing the risks. Possible business benets include increasedeciency, greater collaboration, harnessing collective insights, productand strategy innovation, improved talent management, and protable newbusiness models.
The Enterrise Social Netor Strateg Executive Roundtable, hosted b Future
Exloration Netor and IBM, brought together senior executives rom some o Australias
largest organisations. Over lunch the insights and exerience o the articiants ere
brought to bear on e issues and critical questions surrounding this toic.
This reort summarises the conversations at the Executive Roundtable, illustrated ith
quotes rom the articiants.
pARTICIpANTS
Moderator: r D, Chairman, Future Exloration Netor
International Guest:Hed V, program Director, Social Comuting, IBM
Christine Burns CIO Blake Dawson
Stephen Cameron Grou Manager, Business Services Downer EDI
Martin Cassidy Director IT Services NSW Lotteries
Robert Cirbs Global IT Services Manager Aristocrat
Merle ConyerGrou Manager -
knoledge & Inormation ManagementAustrade
Mike Deggs Lotus Sotare, Financial Services IBM
Derek Goh Executive GM - IT Challenger Financial Services
Chris Holmes CIO Allens Arthur Robinson
Chris Kennett Head o IT Mirvac Group
Annalie Killian Catalst or Magic AMP
Sue Klose Director o Cororate Develoment News Digital Media
Chris Lampard Business Technolog Consultant Corporate Express Australia
Shane Martin CIO StocklandJonathan Stern Lotus Regional Executive, Australia/NZ IBM
Barry Simpson CIO Coca-Cola Amatil
Matt Tredinnick Lotus Sotare, Mareting Manager IBM
8/14/2019 Executive Insights Into
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Online social networks were rstbroadly recognised as a signicant
business phenomenon when NewsCorporation bought MySpace in July2005 or US$580 million. MySpace,the dating social network Friendsterand Googles social networkOrkut had already attracted many
millions o users, however primarilywithin a technology-savvy youthprole. The extraordinary growtho Facebook ater it broadened itspurview beyond college students,
together with the sustained riseo LinkedIn, have brought manyproessionals into the world osocial networking over the last two
years. Today hundreds o millionso people globally, includingmany proessionals and businessexecutives, use online socialnetworks.
At the same time, the last 5-10 ears
have seen the groth o a variet
o management tools such as
Organisational Netor Analsis that
stud ho ersonal netors suort
organisational erormance. Research has
clearl shon that the efectiveness and
cometitiveness o large organisations
is strongl correlated to ho ell the
ersonal netors ithin the comansuort collaboration, noledge
sharing, and roect execution.
The idesread ersonal use o social
netors toda is orcing organisations
to consider and sometimes set olicies
on ho the can be used b staf. At the
same time, comanies are recognising
that there is an oortunit to use
internal social netors to attract and
retain talented staf, ta the most
relevant exertise, enhance collaboration,
and ultimatel imrove organisational
erormance and business outcomes.
Toda, senior executives around the
orld are considering and imlementing
strategies to create business value rom
the use o social netoring tools.
Lessons rom the ENTERpRISE SOCIAL NETwORk STRATEGy EXECUTIVE ROUNDTABLE | pe 3
SOCIAL NETwORkS AND THE ENTERpRISE
8/14/2019 Executive Insights Into
4/14EXECUTIVE INSIGHTS INTO EntErprisE social nEt work stratEgy
It is clear that every largeorganisation is at some stage
o considering and grappling withthe issues raised by online socialnetworking. Some companiesare ocused on whether to blockexternal social networks, whereasothers are proactively exploring
using these tools or applicationsincluding project collaboration,recruitment, learning anddevelopment, and otherbusiness applications.
Ours is a very customer ocused
company, working in close to 50
locations across the country. Were
currently undertaking a businesstransormation we have grown
through many acquisitions and now
have decentralised processes inherited
rom these companies. We need to
provide conduits or technology and
social networking activity not only
internally but also with our customers
and suppliers.
We needed to put management
at ease. We prepared a white paper
demonstrating the value o making
inormation more reely available
regarding new employees, new
suppliers, new partners. In business
you want to know as much as you
possibly can.
The CEO has expressed a
desire to help grow an external ocus
in an organisation that or most
o its lie has been more internally
ocused. Within the culture there
are still very deep roots o not being
entrepreneurial. The new CEO has
stressed that he is specically and
explicitly looking or a much greaterexternal ocus. When you start
participating actively in networks
beyond your organisation that is when
a true external ocus starts, building a
more entrepreneurial culture.
Weve augmented our intranet
site so that now we have social
bookmarking on the side o the screen.
It takes into account not only the topic
youre searching or but the people
associated with the inormation.
Its done with tagging. The power o
tagging is really important because
when you search or inormation
you nd and learn about the expert
and youll ollow that person. Youll
be surprised at the amount o
quality content that is shared in that
environment.
Our trial o social networks is
going exceptionally well there is very
positive eedback rom employees.
They see it as a personal touch that
improves their enjoyment o the work
environment.
In our line o business we
live in Wiki and Blogland. From the
technology side, we love all this stu.
But Im yet to put my business hat onand see how this provides value back
into the organisation.
wHAT ARE yOU DOING NOw?
1
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One o the rst and possiblymost important responses o
organisations to social networks isto implement or clariy policies ontheir use. These policies seek toaddress issues such as potentialloss o productivity and security riskwhile recognising that sta expect
to have some leeway in how theyspend their time, and that therecan be valid business reasonsto use social networks.
We are trialling a policy o
access or 30 mins a day, using
content ltering to control it which
enables it or personal use during
business hours but limits people romusing it all day. The trial has been
overwhelmingly positive.
Weve pretty much taken the
view that most people come to work
to do a good job. Were not going to be
police. Our code o conduct species
a reasonable amount o personal
use. Lawyers are yet to test what is a
reasonable amount.
We announced that we were
looking at who was doing what
even though we werent and the
usage started coming down. Now we
actually do monitor usage person by
person. We dont have a hard and ast
rule senior managers can make their
own call.
SOCIAL NETwORkING pOLICIES
Weve no problem with our
employees being on Facebook. We
need them to think about whats out
there and understand what it can do;
we want them to be out there.
When we were looking at
opening up sites there was discussionabout how we should do it - during
lunchtime, should we do it during
working hours, or or 30 minutes?
Whats lunch to me is not lunch to
someone else.
There seems to be a concern
about control. Our organisation is still
airly conservative and yet on this we
seem to be pretty liberal. We dont try to
control what people do or where theydo it we have a couple o lters or
pornography and games sites. But we
dont get reports on whos doing what.
We dont want to be too
dogmatic about how we use this.
What i I have one o my best
perormers spending an hour a day
on Facebook - do I really want to stop
them? I they are hitting their metrics
is it really that bad? We have wireless
everywhere. Most o our employees
have some sort o mobile device to
access the internet. I we say they cant
use their PC they can just nd an easy
alternative.
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8/14/2019 Executive Insights Into
6/14EXECUTIVE INSIGHTS INTO EntErprisE social nEt work stratEgy
Social networking may be thedomain o Generation Y but it is
quickly inltrating boardroomsstill heavily populated by BabyBoomers or Gen-Xers. There is anovert lack o understanding romsenior executives about why socialnetworks are compelling to younger
people. The social and culturaldivide is impossible to miss yetorganisations need to bridge thegap i they want to tap the valuerom a better connected rm.
They just dont understand
what is behind social networking;
management asks, Why does
someone want to record their entirelie and publicise it? They just dont
get it.
Our business objective is to
capture the 18-35 market. We want to
look at social networking as a possible
way o doing that. Yet most o our
IT people are in their late 40s.
We dont have a singleemployee that is not highly computer
literate. Everyone is on Facebook. Most
o those who have been late to get on
were rom our management team
very revealing. Were now on.
For Gen Y, social networking
is much more open than traditional
computing. Look at gaming. They
have a collective mindset achieving
common goals is more important to
them. They either win together or they
dont win.
In World o Warcrat people
create guilds and syndicates to build
their battle strategies. They recruit
people they have never met to execute
that, they operate in an environment
o trust, and together they execute
collab orative tasks. We think this may
be a uture business model or the
enterprise. We want to learn rom how
these people are operating, because
these may be the leadership skills we
need to develop or the uture.
One o the biggest initial
challenges I dealt with was with the
person in HR. He was a much older
person who didnt really get what the
availability o what these tools could
provide, even or the HR unction.
One o the reasons why people
dont give this a lot o thought is that
typically management sits in the Gen
X group, a bit older, just a bit beyond
the brie, and they dont understand
why people have iPhones, why people
are doing this. They ask Whats all this
Web 2.0 stu, how does it all work?
A NEw GENERATION
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8/14/2019 Executive Insights Into
7/14Lessons rom the ENTERpRISE SOCIAL NETwORk STRATEGy EXECUTIVE ROUNDTABLE | pe 7
SpEAkING THE SAME LANGUAGE
The value o collaboration withinan organisation seems clear but
language and cultural dierencesmay present obstacles to beovercome i social networks areto fourish.
Everyone seems to strugglewith there being so many sets o users
within an organisation. A one-size-
ts-all approach is not going to work.
We operate one o Australias
most global networks and
collaboration is the nature o what
we do. We have a very culturally
challenging environment, dealing
with technology dierences, language
dierences and cultural dierences.
We have seen cultural issues
with people in some parts o the world.
In Asia, people dont eel comortable
to openly disagree, so i someone puts
up a comment they are less likely to
disagree with that comment. We have
language issues in South America;
collaboration between languages is
an ongoing challenge. Its not solvedas yet were open to new ideas.
We have a large number o
non-computer users and also a lack
o technology at a lot o sites. There
are lots o non-technicians in the
organisation as well.
We have been using Wikis but
people use them dierently, andsometimes not at all. For example
we have ound that lawyers will
readily comment on something that
someone else has posted but seem
unwilling to make the rst post. There
is subtlety required in knowing how
to make these tools work within an
organisation.
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8/14/2019 Executive Insights Into
8/14EXECUTIVE INSIGHTS INTO EntErprisE social nEt work stratEgy
There is a spectrum o values
within an organisation there are a
whole bunch o people who are very
transactional but others who can see
that this is an interesting vehicle or
learning. People have always been
social creatures the technology is
just making it easier. Allowing people
to play in the spaces is contributingto the organisations learning agenda
because were getting an insight into
new trends as they emerge. These
trends will shape our business in times
to come.
Weve implemented extranet
technologies to help with some o
our transactions but weve also been
looking at how we can get external
people together. Were getting peopletogether or peer review in a small
pilot, weve probably saved about 15
business class ares to Perth a air
hunk o cash. We use collaboration
tools, whiteboarding, and similar tools.
Trends such as social
networking will eventually lead to new
business models and new product
and service delivery. Over the next veyears the way products and services
are sold in our industry will be vastly
dierent to how it is done today.
Anything the organisationdoes must support its objectives.
Sometimes the link betweenprotability and the use o socialnetworks is not evident, eventhough executives may intuitivelyeel that there is one. In the longerterm there is the expectation that
the rise o social networks andsimilar tools will have a signicantimpact on the way business isconducted, including onbusiness models.
We want to use tools to
make money. What is the payback?
Capturing knowledge and ocusing
on engaging people. We are seriousabout nding ways to engage people.
We have to compete or talent.
The power o social networking is
real. One characteristic is collaboration.
The second characteristic that
enterprises can take advantage o is
user-generated content. I we dont
capitalise on that we are missing out
on something important.
BUSINESS OBjECTIVES AND BENEFITS
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9/14Lessons rom the ENTERpRISE SOCIAL NETwORk STRATEGy EXECUTIVE ROUNDTABLE | pe 9
IMpLEMENTATION
6Creating business value requirestaking action. Most o the
organisations that are activelyengaged in initiatives in the socialnetworking space indicated that theirattitude is one o experimentation,with the intention o reocusing orshutting down trials that are not
working, and building on successes.
One o the things that has
been really good has been the ability
o these tools to capture hearts and
minds in asking people to contribute
knowledge and take time or the good
o the enterprise rather than or their
own personal objectives and social
networks. The easier you can make that
process the easier it is or people to seethe benets and to get on board.
IBMs Blue Pages which gives
access to sta proles is the most
used application in the organisation.
It builds proles o expertise and what
people have worked on, what they
know, what they have done. This helps
you connect with the person who can
help you with your particular issue it breaks down geographical and
departmental boundaries.
I you want to use it as a tool
or talent management or social
collaboration thats great. But I look at
the cultural aspects o the organisation
rst to make sure we have all the
elements in place. These tools can
enhance the culture, but without the
basics then all the tools will just allaway.
We have an evolving strategy.
Fail ast and cheap. Were nding
thats the best strategy. Lets put a wiki
around this and see it i works. I no
one wants to clean it up then we kill it.
We now have a journalist
writing a blog or us its our
innovation exchange she gets
inormation rom inside and outside
the organisation and posts it so that
we understand whats going on.
One o the big challenges I have
aced is working out which aspects
o consumer Web 2.0 will work in our
organisation. There is a quite a big
dierence in the economies o scale
and the applications o those tools which aspects o Web 2.0 translate to
working within the enterprise.
I people want to have their own
Facebook page terric. I they want
to develop their own product or tool to
enable collaboration terric. I they
are chatting thats interesting but
lets capture knowledge and engage
talented people in worthwhile tasks.
One o the positives is that it is
reasonably cheap and easy to get a
pilot up and running to evaluate how
successul a new technology will be.
Fail ast, ail cheap. Set things up as
pilots and pick up the lessons.
8/14/2019 Executive Insights Into
10/14EXECUTIVE INSIGHTS INTO EntErprisE social nEt work stratEgy
CHANGING ORGANISATIONAL STRUCTURE
Shits in communication patternsimpact organisations structure,
not least by enabling greatercommunication across establishedhierarchies. Companies areincreasingly looking at proactivelyadapting their organisationalstructures as social attitudes and
business processes change.
A transormation has
occurred between people working
in hierarchical worlds to one in
which people are gaining credibility
and social rewards through social
networking, publishing, producing
content, becoming experts. It is easier
to nd people within the organisation,
breaking down the traditionalhierarchy. There is a now a at
management model it has shrunk
the organisation to ocus attention
and eorts to solve particular
problems rather than on teams or
departments or job titles.
With Gen Y there will be more
turnover in people. The idea o managing
PCs internally its just like what we didwith company cars 20 years ago. What
do we do now with company cars? Well
we package a lease and the guy drives
wherever he wants. Thats how Gen Y is
using social networking It leads to a
view that we need to treat people more
like contractors to the organisation.
Rather than trying to control how people
use these technologies we need to
architect how we connect the existing
tools to the enterprise.
The whole organisation is
about collaboration. So the area o
social networks is really critical or us,
particularly i we want to provide a
seamless service delivery to the client.
We have a multitide o high-
prole brands. Our business is aboutdealing with lots o people in lots o
places our customers range rom being
very small to major grocery entities and
we have a ar-ung service and sales
team so we are always looking or new
ways to communicate with our people
and with our customers.
The credit crunch has been a
good thing. In good times it takes
organisations a long time to look atnew things but in times o difcult
business we are more ready to see that
we need to consider change. The way
we market our products is going to be
dierent.
Where are we going to end up?
People will change jobs increasingly
rapidly. We are shiting to a ar more
exible stafng model in which I can
engage people as and when I need
those particular skill sets. Take the
contracting model, which is oten
more collaborative than work inside
the organisation.
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11/14Lessons rom the ENTERpRISE SOCIAL NETwORk STRATEGy EXECUTIVE ROUNDTABLE | pe 11
COLLABORATION TECHNOLOGIES
Everyone acknowledges thevalue o collaboration and many
o the organisations representedare already using collaborativetechnologies. Social networkingapplications are seen to be anatural extension o existing toolsand perhaps the next step in key
unctions such as expertise locationand managing talent, change andknowledge.
Collaboration and
communication is a huge issue or
a company o our size which is as
distributed as we are, and Im sure it is
or a lot o other companies.
Its a new way o working and
a new thought process to take the
models o industry and building a
network o people you want to keep
contact with. You need to maintain
the relationships you have with people
because thats potentially how youre
going to get another job or another
employee. You can mentor each
other etc to capture this inside the
organisation.
What are the tools that
will make this easy? Wiki, cloud
computing, create tagging, drive
content and search or data. Get an
entry point to create an open avenue
where people can start to contribute
content and then use things like
tagging and searching to benet an
organisation.
We are using wikis or ormal
work instructions. Wikis allow people
to see changes over time, with more
up-to-date inormation leading to
better work outcomes.
Look at tenders, responses
to inormation, there is going to be
much more o a requirement orcollaboration in the uture, to have
that interactivity, to have people
working on the same inormation in
the same context. As I see it you want
to know as much as you possibly can.
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8/14/2019 Executive Insights Into
12/14EXECUTIVE INSIGHTS INTO EntErprisE social nEt work stratEgy
LIFE / wORk BALANCE
Throughout the discussionsthere was a recurring theme
o the need to value the people,and recognise that changing workpractices have seen the blurringo the division between publicand private, between personaland corporate worlds. People
receive and transmit personalinormation using corporate assets.At the same time employees alsooten use their personal tools,networks and time to contribute
knowledge and ideas tothe enterprise.
Social networks open us all
up to a dierent degree o exposure.What is the boundary o personal
and proessional?
We are aware o the ethical
consideration the boundary between
public and private. I get alarmed when
I hear about organisations trying to
exploit personal networks or nancial
gain. The essential nature o Facebook
is about social connection and thethings that dene who people are
in the world as a human being. The
leveraging o that or the enterprise
online raises some substantial issues
around ethics and exploitation.
We have a lot o people using
Facebook to track alumni and so
on, and as a source o connection.
Every now and again we close it down
because it swamps our network.
Typically its when someone in the
organisation gets married and they
are uploading their videos
We now have mixed personal
lives and work lives. Individuals dont
make a strong distinction between 9-5
and employers dont have to ocus on
a resource being used just within those
hours. The rules o contributing are
much looser now.
Some o our people use
Facebook or the work they do, such asnding developers in their network to
make new applications or come in and
help create our site.
Organisations will succeed i
they help their employees succeed.
Individuals success and their
contribution to their organisations is
highly correlated to the strength and
diversity o their personal networks.
Supporting individuals in developing
their personal networks will help them
contribute to the company.
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web 2.0 ge w
Dve v d h hweb 2.0 ehe
Organisations want to take advantage o open,
fexible Web 2.0 technologies. They want to usesocial sotware and mash-ups to add a newdimension o imagination and innovation. IBMsWeb 2.0 Goes to Work initiative is already helpingbusinesses apply Web 2.0 technologies across
the globe to gain a competitive advantage.
www.ibm.com/web20
ce ee f deh d he
Future Exploration Network assists major
organisations worldwide to build eectivestrategies or the long-term uture and to createnew business opportunities. Services includestrategy development, scenario planning,research, custom events and creating thoughtleadership content.
www.futureexploration.net
8/14/2019 Executive Insights Into
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