The Value of Social Computing V1 - Deloitte México4 Social Computing Social Networking Blogging & Micro Blogging Video & MusicStreaming Photo & PresentationSharing Forums & Communities

21 February 2010Version 1.0

The Value of Social ComputingUsing Social Computing to enable new ways of working

© 2011 Deloitte MCS Limited. Private and confidential

Introduction and PurposeThe rise of social computing and its importance to Deloitte and our clients

Introduction• Facebook, LinkedIn, Twitter and YouTube are all high profile Social Computing platforms which

are transforming how individuals communicate and share content• Many organisations are also beginning to explore how Social Computing can be applied to the

deliver real business benefit

PurposeThis presentation has been created for the following purpose:• To provide an overview of Social Computing and the potential business benefits• To dispel some Social Computing myths and to highlight critical success factors• To demonstrate Deloitte’s experience and expertise in Social Computing

2

“Social computing is not a fad, it will impact almost every role, at every kind of company”

“Enterprise social software will be the biggest technology success story of this decade”


IntroductionDefining the business landscape for Social Computing

Background

• Collaboration and Social Computing platforms are becoming increasingly prevalent within corporate organisations

• Customers and Employees have high expectations based on experiences outside the workplace

• Users are being swamped by the volume of email and information, making it difficult to find the correct information when and where they need it

• Increasing demands for remote / flexible working combined with a proliferation of new devices including Smart Phones and Tablets

• Increased regulation and continuing pressure to reduce costs, to improve efficiency and to innovate

• Organisations are jumping into social media without understanding how it is going to support their business strategy

• The market for social computing software is beginning to focus around tools aimed at the enterprise from established vendors alongside specialised tools from niche players

3


What is Social Computing?Tools that enable employees, partners and customers to connect and collaborate

4

SocialComputing

Social Networking

Blogging & Micro Blogging

Video & MusicStreaming Photo & PresentationSharing

Forums & Communities

Social Bookmarking

Wikis Web & Enterprise Search

Email and Instant Messagng RSS & NewSyndication

Ideas & Innovation Online Meetings & Telephony


The Potential Benefits of Social ComputingIdentifying how Social Computing can enable new ways of working

Theme Potential Benefits

Improve internalcollaboration and

increase productivity

Enhance employee engagement and create higher quality deliverables by improving accessibility to the organisation’scombined knowledge and expertise, while enabling users to manage how and when they consume content

A Financial Services organisation improving knowledge retention, enabled wider information sharing and a reduction in email volumes

Build external customer and

partner relationships

Enable partners to improve the delivery of your products / servicesand provide customers with access help beyond traditional means through peer supported community forums

A Public Sector organisation has improved the way in which they collaborate with other organisations, which is enabling stronger relationships with suppliers and sub-contractors

Foster creativityand innovation

Leverage the wisdom of the crowd to identify creative product, process and service innovations, to solve business problems and to expand personal networks

A Professional Services organisation fostered service innovation, process improvement and information capture

5


Realising the Benefits of Social ComputingHighlighting examples of where Social Computing has delivered business benefit

6

Blendtec’s “Will It Blend?” campaign

resulted in a five-fold sales increase

Salesforce.com reduced R&D costs by allowing

users to submit ideas for 50% of new functionality

A consumer goods company improved sales by over 30% and order value by over 40% by

including customer ratings and user-generated product reviews on its online store

An energy company realised over £150,000 in annual cost savings by

conducting its employee conference virtually using social media

Lego is currently selling over 6,000

products designed by its customers

Dell has reduced negative customer sentiment by 20%

though the creation of customer support forums

An investment bank streamlined their reporting through the use of a team

wiki and dashboard mash-up

A high-tech manufacturer utilised an online customer ideas forum to generate over

5,000 new product suggestions in just the first three months

Audi is starring customers in their commercials and has increased campaign

efficiency by 80%

T-Mobile’s iPhone blog successfully increased

customer satisfaction and reduced support call volumes


Solving Business ChallengesAddressing business pain points through the application of Social Computing

Challenge Application of Social Computing

Overloaded by the volume of emails

Reduce untargeted communications by creating shared communities to which users can subscribe and contribute

Inability to quickly locate expertise

Utilise social computing to build internal networks and improve the visibility / discoverability of expertise within the organisation

Stop re- inventing the wheel

Improve knowledge capture and retrieval through the effective application of tools and processes

Improve customerretention and service

Provide customers with multiple channels of communication and create community forums for product support and customer service

Support for Remote / Flexible working

Deploy tools which enable internal and external teams to work together effectivlyacross time and geographical boundaries

Improve process efficiency

Apply workflows to streamline business processes and enable employees to focus on higher value add activities

Gain competitive advantage

Use the wisdom of the crowd to foster the generation of innovative product ideas outside of traditional R&D activities

7


Urban MythsDispelling the misconceptions that surround Social Computing

Myth Reality

Its only about the soft benefits and not ROI

More engaged employees and improved staff retention are often proposed as reasons for Social Computing, however it can also deliver tangible and measurable business value

Social Computing is just for Generation Y

Younger generations who have grown up with the Internet may be more familiar with Social Computing, but if users can see the benefits they will use the tools, irrespective of age

You need the whole organisation

The larger the number of users the wider range of expertise and experience you can draw upon, however benefits can also be realised from smaller and more focused groups

Doing nothing reduces the risk

If organisations do not provide your employees with the appropriate Social Computing platform(s) they will look externally to public platforms over which you have no control

One size fits all organisations

Organisation are facing different challenges and will be looking to realise different business benefits, therefore different Social Computing platform(s) will be required

You can’t measure Social Computing

Measuring the benefits of Social Computing is not straight forward, however through a combination of quantitative and qualitative metrics this can be achieved

Social Networking means Not Working

Employees are increasingly time poor, therefore the introduction of Social Computing will be a tool to help them become more productive and not a distraction from performing their job

Its all about building the right platform

Having the correct platform(s) in place is an enabler for Social Computing, but effective change management is key to driving user adoption and embedding new ways of working

8

© 2011 Deloitte MCS Limited. Private and confidential9

Approaches to Social ComputingOrganisations are taking three main approaches to deploying Social Computing

Potential value creation opportunities

Internal

to the

organisation

External

to the

organisation

Inside-to-Insidecommunities

Inside-to-Outsidecommunities

Outside-to-Outsidecommunities

Internal communities

with similar interests,

objectives or

organisations

Continuous and

ongoing dialogues with

consumers and

external business

partners

Customers interact

with each other

without internal

organisational

involvement

• Collaborate across the whole organisation

• Uncover previously unknown connections

• Efficient capture of intellectual assets

• Attract talent through internal communities

• Increase employee retention and satisfaction

• Better understand customer needs

• Improve customer service and loyalty

• Leverage interest based marketing and advertising campaigns

• Develop new revenue streams and markets

• Extend reach within external channels

• Improve customer education and the user experience

• Leverage additional sources of customer intelligence

• Low-cost approach with high value return

• Achieve benefit from connecting relevant parties together

Note: We are also seeing clients conduct low-risk, small-scale exploration as they experiment with social media in order to understand how it can deliver business value

© 2011 Deloitte MCS Limited. Private and confidential10

Critical Success FactorsDefining the building blocks for Social Computing success

Obtain senior

sponsorship

� Agree ownership with

the business

� Identify champions

within the business

� Senior management to

lead by example

Start small to begin

with and grow

� Use rapid prototyping to

develop and trial

business solutions

� Focus on small groups of

users before a wider

enterprise rollout

Be agile and adapt

to future changes

� Regularly monitor

developments in the

consumer market

� Work with vendors to

develop innovative

business solutions

Identify the key

pain points

� Begin with quick wins

which demonstrate

business value

� Promote success stories

to build momentum

Invest in change

management

� On going support,

communication and

training to users

� Deliver regular updates

to all stakeholders

Put governance and

support in place

� Define governance and

update IT policies

� Recruit and train support

teams

� Develop a library of

quick start guides

Have a plan for when

things go wrong

� Review IT and data

protection policies

� Be aware of potential

reputational risks

� Develop a strategy for

addressing issues

Be clear about what

success looks like

� Define the benefits that

you are trying to achieve

� Regularly measure,

review & refine to

achieve success

Provide users with clear direction on why you are p utting social computing tools in place, the persona l and collective benefit of using them, and how you a re going to measure their use


Internal use of Social ComputingHow Deloitte is benefiting from the application of Social Computing

11

Social Computing Community of Practice

�Global forum for the

contribution and

exchange of

information,

knowledge, expertise

and experience in

relation to Social

Computing

D-Street

� Social networking site that allows

practitioners to create profiles

that share their professional and

personal brand so that they can

connect with other employees

D-Wiki

�Users collaborate on a

variety of work from

client engagements to

internal activities using an

online publishing tool

Innovation

� An innovation portal was

established to collect ideas

for new client offerings and for

improving the efficiency of

internal business processes


Why Deloitte?Our Track Record and Eminence in Social Computing

12

Experience and Eminence• Our practitioners are able to provide knowledge born of practice experience from software

development and delivery, coupled with an understanding of the business changes that are required to make the required behaviours ‘stick’

• Our vendor neutral position means that we can bring an understanding of the tools and technologies in the market, from the specialist niche players to the major enterprise software vendors

• Deloitte are thought leaders in the practical application of social computing and the web channel in the resolution of business challenges, and have produced a range of articles and points of view on the topic social computing


APPENDIX

13


Our ExperienceDeloitte have worked with organisations to assist them in using Social Computing

14

SABMiller

Background• Rapid expansion through acquisition, highly federated organisation with

limited enterprise shared services• Located across 6 continents, 75 countries, 200+ brands and almost

70,000 employees

Objectives• Become a “learning, sharing and self-refreshing organisation”• Retain top talent and maintain competitive edge• Promote information sharing, support post-merger integration, improve

access to best practices and knowledge leaders• Nurture collaboration between employees, partners and customers across

functions, brands and geographies

Approach• Developing a culture of collaboration and innovation, learning and sharing

for the benefit of employees and the organisation which fused on:• Locating and using knowledge already within the organisation • Identifying gaps and developing the knowledge to fill them• Creating structures to facilitate capture and shared use of data• Collaboration across functional and geographical boundaries

Example

Citi Bank

Background• Desire to transform the way their employees interact, locate expertise

and collaborate to improve productivity and support the realisation of long term strategic goals

• In early 2009 a social computing platform was created based on the Microsoft SharePoint 2007 and NewsGator technologies

Objectives• Develop a roadmap to leverage the potential benefits of social

computing and support the client in the rollout of their social computing platform

Approach• Engaging key stakeholders to identify pain points and potential

opportunities for social computing• Building upon the business requirements, a set of social computing

capabilities were developed by understanding the current state and the desired future state to identify the capability gaps

• The capabilities were then grouped and prioritised enabling the creation of a social computing capability road map, which became known as the ‘Tube Map’

Example


Our Experience cont....Deloitte have worked with organisations to assist them in using Social Computing

15

Deloitte Australia (Yammer)

Background• Deloitte Australia is world's largest user of Yammer, with over half of

4,600 employees using it, and having sent over 24,000 messages

Objectives• Deloitte Digital CEO Peter Williams posted a message on the Deloitte

Australia Yammer network for a new advertising campaign• Over the next 24 hours, hundreds of Deloitte Australia employees

submitted thousands of taglines. As a result, Deloitte Australia utilized an employee-submitted tagline in its advertising instead of hiring an advertising agency to develop the campaign

Approach• Deloitte Australia leveraged the power of its collective employee base to

gather taglines for a campaign and unlock hidden value in its organisation• Deloitte Australia saved time and money by not having to hire an outside

advertising firm, and employees felt more engaged

Example

GlaxoSmithKline

Background• The GSK Supply Chain team had undertaken an initial pilot of Social

Computing, but were looking for assistance in defining their vision and developing a roadmap for an enterprise rollout

Objectives• Perform an assessment of the current platform and work already

completed by GSK in using social computing• Define the vision for social computing with Supply Chain function• Develop a roadmap for rolling out the social computing platform across

the organisation

Approach• Facilitated workshops with key stakeholders to understand the

business objectives and potential benefits that could be realised from the use of social computing

• Draw on expertise from Deloitte SMEs from the UK and US

Example


Our Experience cont....Deloitte have worked with organisations to assist them in using Social Computing

16

Royal Opera House (Deloitte Ignite)

Background• Deloitte Ignite is an annual three day arts festival which is held at the

Royal Opera House• The Royal Opera House was keen to find out how Deloitte could assist

them improve specific aspects of the visitor experience

Objectives• A series of workshops identified a number of key pain points from

previous events including improved use of social media to promote event awareness, streamlining users registration, capturing feedback after the event and accurately monitoring the number of visitors in the venue during the event

Approach• To address the issue of tracking visitor numbers the Deloitte team

implemented a highly innovative iPhone application to count visitors in and out of multiple entrances. The devices synchronised over a standard wireless network to provide real time visibility of the number of visitors in the building

Example

BBC iPlayer

Background• The BBC were looking to develop an additional channel for the

distribution of programme content to UK consumers

Objectives• Identify and design the appropriate web 2.0 strategy and functionality• Design and deliver the business and technological transformation

required to support this new channel

Approach• Highly scalable, adaptable, complete and robust solution designed

through understanding and maximising the resources available across the BBC

• Provided specialist program management and strategic approach, governance and quality assurance expertise

• Managed the software and infrastructure integration of the multi-vendor program

Example


Our Approach and Client ServicesDelivering Social Computing services as a part of a proven and structured approach

17

Social Media Implementation (SMI) framework• The SMI identifies the various project components necessary to successfully implement social

media and provides detailed tasks and deliverables for each step

• Examples of client services include business case development, vendor selection, governance and policy development, change management and project management

Support

Project Management

Value

Change

Organisation

Governance

Technology

Security

Plan

Strategy / Vision

Operate

Design

BuildDeliver

Social Media Implementatio

n (SMI)framework

Approach to strategy and realisationof business value

Oversight and policies for the usage of social computing

Technical architectureand procedures

Process controls, applicationsecurity, and feedback measures

Definition of the organisation and process required to change ways of working

Stakeholder buy-in, communications, and training

Application managementservices and business continuity

Planning and deployment of social computing projects


Who to contact Our Social Computing thought leader

18

James EvansSocial Computing LeadEmail: [email protected]: +44 (0) 7976 160713

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, and its network of member firms,

each of which is a legally separate and independent entity. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and

its member firms.

Deloitte MCS Limited is a subsidiary of Deloitte LLP, the United Kingdom member firm of DTTL.

This publication has been written in general terms and therefore cannot be relied on to cover specific situations; application of the principles set out will

depend upon the particular circumstances involved and we recommend that you obtain professional advice before acting or refraining from acting on any of

the contents of this publication. Deloitte MCS Limited would be pleased to advise readers on how to apply the principles set out in this publication to their

specific circumstances. Deloitte MCS Limited accepts no duty of care or liability for any loss occasioned to any person acting or refraining from action as a

result of any material in this publication.

© 2011 Deloitte MCS Limited. All rights reserved.

Registered office: Hill House, 1 Little New Street, London EC4A 3TR, United Kingdom. Registered in England No 3311052.

Member of Deloitte Touche Tohmatsu Limited

Documents

The Value of Social Computing V1 - Deloitte México4 Social Computing Social Networking Blogging & Micro Blogging Video & MusicStreaming Photo & PresentationSharing Forums & Communities