Designing a Successful Social Business for ROI

Designing a Successful Social Business Solution for High-Impact ROI

Dion Hinchcliffe (@dhinchcliffe)Sponsored by

® 2012 Dachis Group 2

Introduction

Dion Hinchcliffe• ZDNet’s Enterprise Web 2.0

• http://blogs.zdnet.com/Hinchcliffe

• ebizQ’s Next-Generation Enterprises• http://www.ebizq.net/blogs/enterprise

• EVP of Strategy• http://dachisgroup.com

• mailto:[email protected]

• : @dhinchcliffe

Spring 2012

http://blogs.zdnet.com/Hinchcliffe

http://blogs.zdnet.com/Hinchcliffe

http://www.ebizq.net/blogs/enterprise

http://www.ebizq.net/blogs/enterprise

http://hinchcliffeandco.com/

http://hinchcliffeandco.com/

mailto:[email protected]

mailto:[email protected]

http://www.amazon.com/gp/product/1118273214/ref=as_li_ss_il?ie=UTF8&tag=dionhinchsblo-20&linkCode=as2&camp=1789&creative=390957&creativeASIN=1118273214



























(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.

Dachis Group

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.

• The most complete and business-focused statement on what social business is 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




Dachis Group

State of the Art in Social Business

• Efforts are more strategic andgrowing faster than ever before

• Virtually all data continue to show sustainedreal-world benefits (McKinsey, IBM, Frost and Sullivan, AIIM)

• Everything is becoming social: Social features are appearing in virtually all new user experiences

• There continues to be considerable confusion about who “owns” social in the organization

• The predicted social data explosion: It happened• Mining insight from social data has now become a

major industry (#bigdata, #analytics)• The blur between internal and external social

business has not progressed as far as many thought• The first serious talk about open social business

standards has begun

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Strategic BusinessCommunities


Dachis Group

5

Social Business move to mobile

more budget

social apps

social analytics and BI

better integrated social business processes

enterprise-level organizationfor social business

Other Key Social Business Trends for 2012

internal

external

blurring begins butdoes not widely occur

community managementbecomes strategic


Dachis Group


Dachis Group

Acquired Board Member

Sponsor

connect.BASFFirst Conceived by Internal Think Tank

Stand-Alone Solution Owners

Interdisciplinary Team

Involvement

Expert Communities &

Advocates

Go/No Go Decision for

Global Launch

Launch Communication

Concept Pilot Launch

2007 2008 2009 2010 2011

5K

10K

15K

20K

25K

30K

UserBase

Enterprise 2.0 Story

® 2012 Dachis Group

Looking at the data

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Dachis Group

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Types of Business Gains Possible with Enterprise Social Media

Cost Reduction

Revenue CreationIncreased Productivity

Connected Culture

Self-service content sharing

Shorter external support cycles

Increased customer

satisfaction & retention

Self-Reported Average Industry Improvements From Large Organizations

10-20% reduction in travel and

communication costs

10-15% reduction in communication costs

10% decrease in operational costs

20-30% increase in access to expertise

30% increase in speed of access to

knowledge 35% increase in collaboration20% lower communication costs

30% faster customer care processes

18% higher customer satisfaction10% higher customerloyalty

25-30% faster access to expertise

15% increase in successful innovations & ideas

10% increased revenue

Source: Synthesis of McKinsey, Dachis Group, and other social business benefits data.

More rapid new hire ramp-

up

Faster location of

experts

Overcoming distance and

time zone barriers to

collaboration

Improved connections

between departments and internal

teams

Less time spent

looking for information

Improved global sales processes

Better business decisions


Dachis Group

Fully social organizations get outsized benefits

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Source: 2011 McKinsey Web 2.0 Survey


Dachis Group

Social business 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

Enterprise 2.0

Social Marketing

Customer Communities

integrated vision

intra

net

extra

net

Inte

rnet

The Lesson:

® 2012 Dachis Group

Social isn’t happening in a vacuum• Major forces of change co-exist• Many of these significantly impact social

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Dachis Group

The good news: Technology and productivity

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Dachis Group

But is this coming from technology investments?

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Dachis Group

Who is currently leading innovation?

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Dachis Group

Yet 60% of CIOs believe they should be driving growth and productivity.

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Source: Deloitte Survey, 2011


Dachis Group

But technology change is happening faster today than ever before

• A tsunami of new mobile devices and technologies• A pervasive wave of social media• The rumbles of cloud computing and SaaS• The shift to DIY• A flood of Big Data

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Dachis Group

A perfect storm of change

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Dachis Group

Happening almost all at once

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Dachis Group

Key data point #1: Mobile

• Smart mobile devices outshipped PCs in early 2011

• Tablets are expected to on par with PCs by 2015

• Smart mobility strategies (particularly the iPad) have now become a top priority of most Fortune 500 CIOs

• Global mobile data going geometric is going to be the largest challenge to growth and use

• App stores are creating all new conduits between IT suppliers and workers

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Dachis Group

Mobile Internet Ramping Up Faster Than Desktop Internet by 5x

Source: Mary Meeker, Morgan Stanley


Dachis Group

Key data point #2

• Social is now the dominant form of Internet communication on the planet

• Enterprises are 2-4 years behind the rest of the world.

• Yet data shows that revenue of social businesses is 24% higher on average. Profitability is better too.

- Source: McKinsey and Frost & Sullivan

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The Adoption Rates of E-mail, Social Networks, and E2.0

20112006

1B

750M

500M

250M

2007 2008 2009 2010

Sources:

Glo

bal U

sers

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


Dachis Group

Social + data analytics = business intelligence


Dachis Group

What a social business ecosystem looks like

Feedback Loopand virtuous cycle

Listen &Analyze

Engage

Big Data

CommunityManagement

SocialBusiness

The World

Strategyand

Policy

• Business objectives• Social business

“rules of the road”• Social media policy• Structural and

process reforms• Transformational

roadmap

• Complete view of internal and external social media

• Analytics and visualization of vital trends and events

• Automated evaluation and prioritization of strategy & policy issues

• Operational pipeline

Gu

ide

• Manage, support, and cultivate the participative aspects of social media-based business solutions, both internal and external

• Interact with customers, business partners, and workers to help and guide them towards useful business outcomes

Social Innovation

Social Marketing

Social CRM

Social Workforce

Crowdsourcing


Dachis Group

Tenet #1: Anyone can participate.

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Examples: FoldIt, YouTube, MTurk


Dachis Group

Tenet #2: Create shared value by default.

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Examples: Open source, Intuit, SAP


Dachis Group

Tenet #3: While participation is self-organizing, the focus is on business outcomes.

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Examples: reCAPTCHA, Chevy Apprentice, MSDN


Dachis Group

Tenet #4: Enlist a large enough community to derive the desired result.

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Examples: Crash The Superbowl, HBO True

Blood Large Scale Social Experience


Dachis Group

Tenet #5: Engage the right community for the business purpose.

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Examples: MEC, Threadless, Toyota Brake

Crises


Dachis Group

Turnaround possible when correct community identified

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Dachis Group

Key Success Factors

• Everyone must be able to participate• Turn on network effects by default• Cultivate the right communities• Plan for change and the unexpected• Remove barriers to participation• Listen, analyze, and engage continuously• Integrate social into the flow of work

Thank you

May 2012