Social Media in Swiss corporations

Transform to the power of digital

Social Media in Swiss Corporations

Capgemini Consulting, Guido Kamann

Zürich, 27 September 2012

Contents

2

▶ Introduction Capgemini Consulting and Digital Transformation

▶ Social Media at large corporations

– External dialog

– Internal dialog

▶ Conclusion

Copyright © 2012 Capgemini Consulting. All rights reserved.

Capgemini Consulting is the management consulting division of the Capgemini Group – the largest consulting firm with an European origin

3

Employees over 120,000 worldwide

Offices more than 300 in 40 countries

Headquarter in Paris and publicly listed as one of CAC-40 companies

Clients are two thirds of the world‘s largest companies

Revenues of 9.6bn EUR in 2011 and Top 5 consultancy worldwide

Capgemini Consulting the strategy and transformation consulting brand of the Group with over 4,000 consultants worldwide

Link to company website


http://www.capgemini-consulting.com/

http://www.capgemini-consulting.com/

With the MIT, a well recognized global research study was conducted: “Digital Transformation: A Road-Map for Billion-Dollar Organizations“

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Capgemini Consulting partnered with MIT to conduct fundamental research and develop cutting-edge solutions

157 interviews with IT and Business Executives

50 companies with billion dollar annual turnover

15 countries in Europe, North America and Asia Pacific

1) In September 2012 by Source, which is a provider of information about the management consulting market, serving consulting firms and their clients with expert analysis, research and reporting.

Study was ranked among the top 5 thought leadership publications of the last decade in consulting1

Digital transformation study on global level was started in 2011

Link to publication


http://www.capgemini-consulting.com/think/publication_detail/digital-transformation-a-roadmap-for-billiondollar-organizations/?id=33B826F0-4D5B-63A0-8371-51F9E859A788&type=document

http://www.capgemini-consulting.com/think/publication_detail/digital-transformation-a-roadmap-for-billiondollar-organizations/?id=33B826F0-4D5B-63A0-8371-51F9E859A788&type=document

The study suggests that Digital Transformation is facilitated mainly by 4 technology driver – Mobility, Cloud, Big Data, and Social Media

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Key technology driver for digital transformation

Customer understanding

Digital Globalization

New Digital BusinessesWorker enablement

Customer touch points

Digitally-modified businesses

Performance management

Top line growth

Process digitization

Digital Capabilities

Customer Experience

Operational Process

BusinessModel

Cloud Social MediaMobility Big Data / Analytics


Social Media refers to all online applications that enable creation and exchange of user-generated content

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Social Media Web 2.0 is the technical platform for Social Media applications

Social Media supports human communication and collaboration via the internet

Social Media already omnipresent in private live, is transitioning increasingly into business context

InstantMessenger

Microblogs

Polls

Feeds

Webblogs

Podcasts

Livestreams

Socialnetworks

Enterpriseportals

Wikis

Socialsearch

CompanyWiki Support

Wiki

Mind-mapping

Web-meeting

Desk shareCollabor-

ation

Externalnetwork

Internalnetwork

Webinar

Communi-cation

Companies that are using all major Social Media platforms increased from 20% in 2010 to 25% in 2011 worldwide1

1) Source: Fortune Global 100, 2011 2) Percentage of companies with a dedicated Facebook account. Source: “Vom Hype zum Handwerk“ - Bernet ZHAW Study Social Media Swiss 2012

Swiss Companies that are present on Facebookincreased from 45% in 2011 to 84% in 20122


External dialog

Social Media can be deployed for internal and external business purposes in corporations

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Internal dialog

Customer

Other stakeholder

Potential employees

Employees

Supplier /Business Partner


Contents

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– External dialog

– Internal dialog

▶ Conclusion


Social Media has an influence across the entire value chain of a company with particular impact on seven areas

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Transactions

Customer service

HR & Recruiting

Brandvalue

Social Media

Innovation

Operational efficiency

Customer intelligence

Customer service

Service quality

Service cost

Response time

Transactions

Multi-channel penetration

Conversion rate

Transaction cost

Customer intelligence

Customer knowledge

Marketing effectiveness

Customer loyalty

Operational efficiency

Communication efficiency

Collaboration intensity

Knowledge synergies

HR & Recruiting

Employer branding

Employer engagement

Recruiting efficiency

Brand value

Brand awareness

Customer engagement

Up-/cross-selling potential

Innovation

Innovation volume

Time-to-Market

Success rate


We’ve analysed actual utilisation of the main four Social Media platforms among large Swiss corporations in several industries

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Objective

Analysed industries and companies

FinancialServices

LifeScience

ConsumerProducts / Retail

Energy / Manufacturing /

Resources

Telco / Media / Entertainment

Services /Logistics

Analysis of presence and utilisation of the main Social Media application among large corporations in Switzerland

Evaluation of the ‘real, observed‘ usage intensity of social platforms

Approach

Survey was conducted with 57 major Swiss companies in Mai 2012

Structured evaluation criteria were Content quality Update frequency Degree of user involvement Market penetration and presence Degree of target achievement

Evaluated platforms

Most swiss companies are present in at least one Social Media platform, however, utilisation intensitiy seems to be relativeley low

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Presence and Utilisation

Utilisation of Social Media by platforms and corporate function

Utilisation comparison by industry

1,8%

73,7%

24,5%

low medium highnone0

1

2

3

3,53,0 4,0

SL

TME

2,50,50,0

Rat

e o

f u

tilis

atio

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EMRCP

LS FS

Presence

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0

1

2

3

Rat

e o

f u

tilis

atio

n

SalesKunden-service

Open Innovation

MarketingRecruiting

Source: Capgemini Consulting Social Media study Switzerland 2012 n = 57 leading Swiss companies from 6 different industriesFS = Financial Services, LS = Life Science, CP = Consumer Products / Retail, EMR = Energy, Manufacturing and Resources, TME = Telco / Media / Entertainment, SL = Services /Logistics

0

1

2

3

4

Ø P

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nce

Switzerland

54

54

54


In particular with the use of Facebook, companies successfully get in touch with their customer and expanding brand reach

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Number of subscriber to corporate Social Media platform accounts

Utilisation of Social Media platforms by industry

0

1

2

3

Rat

e o

f u

tilis

atio

n

Services /Logistics

Telco / Media / Entertainment

Energy /Manufacturing

ConsumerProducts

LifeScience

FinancialServices

0

100.000

200.000

300.000

400.000

500.000

SubscriberSub

scri

ber

“Follower”

Subscriber

“Likes”

Source: Capgemini Consulting Social Media study Switzerland 2012 n = 57 leading Swiss companies from 6 different industries


Overall utilization intensity is in the middle category

National Overview


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Top Social Media utilization Switzerland

0

1

2

3

4

5

Inte

nsi

ty

SLTMEEMRCPLSFS

A broad and professional Social Media appearance leads to intensified customer interaction and enhanced customer experience

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Good practice examples

General Best Practice

Recruiting Open Innovation

Customer Interaction

SalesMarketing

Smart adoption and seamless integration of key Social Media platforms

Targeted approach of job seekers via presence on specific career websites

Efficient involvement of user community by lottery/raffles and product tests

Facilitated customer online dialog including timely response to community comments

Effectively acquiring customer feedback and product ideas from online communities

Embedded Facebook shop, which is fully interlinked with company online shop and CRM solution

Source: Capgemini Consulting Social Media study Switzerland 2012


Beispiel

Best PracticeSBB

Study Exerpt: Social Media in real-time customer services

Customer Interaction: pro-active customer service


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• Aktive und schnelle Reaktion auf öffentliche Kundenanfragen und Fan-Kommentare

• Regelmässige Kundgaben von aktuellen Informationen; insbesondere transparente Kommunikation bei negativen Meldungen

• Hilfestellungen bei akuten individuellen Problemmeldungen

• Die SBB tweetet regelmässig aktuelle Meldungen zum Streckennetz und bietet Followern individuelle Ratschläge zu Alternativlösungen

• Fragen aus der Community werden durch die SBB direkt beantwortet

• Reaktion des Unternehmens auf allgemeines Feedback und Beschwerden

2

1

3

3

2

1

With the broad variety of digital and traditional channels, companies face the challenge to still accomplish a consistent customer experience

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Awareness Interest

Offlinechannels

Customerlife cycle

Channels

Purchase Service Re-purchaseUsageDesire

Onlinechannels

Print

TV / Radio

Call Center

Outlets

Events/Fairs

Family / Friends

...

Mobile apps

Website

Instant messenger

Social networks

Blogs

Feeds / Casts

...

Multi-Channel Challenges

Integration and differentiation

Organisation and implementation

Information Management

New businessmodel

Optimal balance between: (1) Integration - Harmonised customer experience (2) Differentiation - Tailored to user group and channel

Governance / “Digital Service Unit” Guidelines and procedures Employee qualification

Data gathering, matching and storage Information exchange Analytical tools

... modification ... innovation ... integration


Many corporations are currently rethinking how to organize Social Media Governance and other Digital Initiatives

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Source: Capgemini Consulting / MIT Research 2012

Creating a Digital Service Unit to coordinate & drive their digital initiatives is according our research the most promising way to create value in large corporations.

COORDINATION

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Contents

18



– External dialog

– Internal dialog

▶ Conclusion


Corporate Challenges

Large enterprises face specific internal challenges based on its characteristics and economic trends – That’s where Social Media can help

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Increasing technological complexity

Shortening innovation cycles

Improving availability of information

Growing competitive pressure

Localised offerings

Increasing amounts of information

Complex organisational structure

Long ways of communication

Working in projects

Broad process landscapes

Extensive knowledge generation

Information silos

Ageing teams Remote locations

Major economictrends

Large enterprisecharacteristics

Enable simple finding of contacts and data

Distribute information target-oriented

Simplifycommunication

Improve remotecollaboration

Increaseefficiency

Exploitknowledge synergies

Social Media


Yammer is the micro-blogging and messaging application of the Capgemini Group, enabling conversations inside and outside the enterprise

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Gathering communities of interests to exchange

knowledge on specific topics

Sharing information and create a debate

Finding relevant information and

material

Yammer started off as a local initiative by a small group of consultants in the Netherlands

Launched officially in 2009 as Group-wide communication tool

Identifying appropriate resources for specific

projects


More than 44,000 active user worldwide

“Connect” is the social network platform of Capgemini Consulting – a channel to share knowledge and contribute ideas in one network

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Internal platform connects over 4,000 consultants worldwide

Network comprises predefined global communities for certain sectors and practices

Monitoring helps to understand usage patterns and to further improve the platform

Building knowledge

collaboratively

Sharinginformation

Finding specific expertise on a

topic

Learning from others and transferring knowledge

Breaking geographical barriers in an

international organization


Contents

22



– External dialog

– Internal dialog

▶ Conclusion


With a holistic strategy and a sound implementation, the full potential of internal and external Social Media adoption can be realized

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Social Media is a board room topic!


Social Media is not an isolated single topic for the Marketing, HR or Communication department

Social Media requires a holistic strategy esp. governance strategy to exploit its full potential across the entire value chain and all functions

Social Media is one of the key driver for digital transformationof business operating models and organisational design

Swiss companies show sizable presence in Social Media, but with low utilisation – A lot of potential is untapped, yet

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Now, socialize with us offline and online…

Dr. Guido KamannVice PresidentLeutschenbachstrasse 95CH-8050 ZurichSwitzerland

Phone: +41 44 5602 400E-Mail: [email protected]


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Technology

Social Media in Swiss corporations