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High Impact Social Business:
Stories and New Perspectives

Dion Hinchcliffe (@dhinchcliffe)
Social Business Summit 2011 Singapore | High-Impact Social Business




 The drivers for next-generation business


•     Pervasive global connectivity
•     New friction-less interaction
      platforms
•     Next-gen mobility
•     Focus on network effects
•     Information superabundance
•     Inherent transparency,
      openness, and broadcast
•     The rise of social capital
Social Business Summit 2011 Singapore | High-Impact Social Business




The current engagement landscape




                                                                                                    Maturing
 Competent


                                                                                      Webinars
                                                                                     online video

                              direct mail               P2P video
                                                         social networks    mobile
                                                                             apps




                                                                       Immature
(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.
Social Business Summit 2011 Singapore | High-Impact Social Business




Social As The New Dominant Global Trend




                        Source: ComScore Global & Morgan Stanley



(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.
Social Business Summit 2011 Singapore | High-Impact Social Business




 Mobile Internet Ramping Up Faster Than
 Desktop Internet by 5x




(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.
Social Business Summit 2011 Singapore | High-Impact Social Business




Hundreds of public social networks...




(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.
                                                                      ...channel fragmentation   6
Social Business Summit 2011 Singapore | High-Impact Social Business




Dozens of internal social channels
•     E-mail
•     Text messaging
•     Instant messaging
•     Meetings and conference calls
•     Enterprise 2.0
•     Social CMS
•     Knowledge management
•     Intranets
•     Online communities
•     Communities of Practice




(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.       7
Social Business Summit 2011 Singapore | High-Impact Social Business




    Channel Fragmentation Is Now The Norm




                                                                     +
400 social networks with over 1 million users =                          2 billion mobile Internet users + 100 million
aggregate audience of about 900 million                                  next-gen smart phone users across hundreds of
                                                                         device types


                           Have Become The De Facto Primary
                           Channels for Customer Engagement
   (cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.
Social Business Summit 2011 Singapore | High-Impact Social Business




 So Customers Have Moved...
                             And Companies Have Fallen Behind




    • Mobile
    • Social
    • New Digital Channels



   • Approximately 1 Billion “Digital Natives” Have
          Migrated In the Last 3 Years

(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.
Social Business Summit 2011 Singapore | High-Impact Social Business




          Organizations Know
          The Problem Will
          Only Get Worse

 Outdated frameworks and operational strategies often relegate discussions to
  incremental fixes and piecemeal approaches
 Although @ComcastCares has over 10 employees responding in new customer
  engagement channels like Twitter, they can’t scale.
 A proliferation of new social networks and mobile apps are appearing at an
  increased pace – organizations are falling further behind.
 The result – large amounts of waste in fragmented data, customer records,
  touchpoints, and experiences – leaving companies unable to efficiently reach
  customers, prospects, and partners.


(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.
Social Business Summit 2011 Singapore | High-Impact Social Business



 Change Keeps Coming:
 The Rise of Social and Mobile Apps




     PepsiCo Digital Chief: “The majority of social interaction will happen via mobile” - Feb
     21, 2011

(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.
Social Business Summit 2011 Singapore | High-Impact Social Business




 The worldʼs most important channels...




(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.
Social Business Summit 2011 Singapore | High-Impact Social Business




(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.
Social Business Summit 2011 Singapore | High-Impact Social Business




What do these new engagement models really
provide to businesses?
 • Radical reductions in cost of
       doing business (i.e. 30% reduced
       support costs)

 • Dramatic improvements in
       customer sat scores & partner
       engagement
 • Real-time response to
       customer needs & critical
       situations
 • Access to deep pools of
       innovation
 • Revenue growth (increased
       top-of-line sales and service
       numbers)
(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.
High Impact Social Business Stories




(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.   15
Selected
   Social Business Stories
• Open Source Software (OSS)
•
• The Search for Steve Fossett
• Innocentive (B2B)
• AOL
• Atlassian Lesson                Social Talent Pool +
                                 Problem = Innovation




• SAP B2B Community
Social Business Summit 2011 Singapore | High-Impact Social Business




Whatʼs the best way to interact with someone
under 30?

• #1: Have a mobile app on their
  first screen.
• #2: Those under 30 rank text
  messaging as their primary form
  of communicating, followed by
  Facebook.
• These are the critical and future
  new channels in which to have
  deep marketing effectiveness.
• The primary future of marketing
  will be in “large scale social
  experiences.”




(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.       17
Social Business Summit 2011 Singapore | High-Impact Social Business



The Leading Edge of Customer Engagement:
                                          Large Scale Social Experiences




 (cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.           18
Social Business Summit 2011 Singapore | High-Impact Social Business




    Case Study: HBO




•    More than 750,000 additional visitors
•    Increased Facebook engagement by 115%
     (improvement in number of Likes to 3
     million.)
•    Tens of thousands in additional
     merchandise sales
•    Nearly doubled the number of 3rd season
     premier viewers to 6.4 million

(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.       19
Social Business Summit 2011 Singapore | High-Impact Social Business




Where is the social business opportunity in
workforce engagement?
            • Increased levels of productivity that were inaccessible until now
            • Enablement of tacit interactions on a previously unknown scale
              (Source: McKinsey & Company)




                                                                           Enterprise 2.0 has
                                                                            the potential to
                                                                         increase productivity
                                                                              in complex
                                                                         interactions, where
                                                                           previous attempts
                                                                           have largely failed




(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.
Social Business Summit 2011 Singapore | High-Impact Social Business




 The 50 Foot Collaboration Rule
  • Workers are not likely to
        collaborate very often if
        they are more than 50 feet
        apart:




                                                                          Take Away:
                                                                       Surmounting this
                                                                        obstacle is now
  • Even with traditional                                             possible with social
        electronic aids such as
        telephone, e-mail, and                                           technologies
        remote video

(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.                              21
Social Business Summit 2011 Singapore | High-Impact Social Business




Significant Social Business Examples
•              - 50x ROI in
  high value scenarios
•      - 29% reduction in e-
  mail volume after making
  social their primary
  business channel
•               and Atos
  Origin - Eliminating e-mail
  entirely while moving to
  social channels
• Gold Corp - $3.5 billion in
  value generated through
Social Business Summit 2011 Singapore | High-Impact Social Business




 Social CRM: How can we have conversations
 of value with millions customers?

                                          Example:




(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.
Social Business Summit 2011 Singapore | High-Impact Social Business




• Telecommunications giant wanted
     workers to be much more collaborative                                From Greg Lowe, Enterprise 2.0 Lead:
• 77,000 employees scattered across the
     globe previously using primarily process-
     focused tools like SharePoint
• Began experimenting with Yammer back
     in 2008, now over 9,300 workers using it
- Users began reporting Ibenefits: a problem.'”
  “Yammer saved me three days of trying to find who should talk to about


• Spent 13 months working on formal E2.0
     implementation, which rolled out earlier
     in 2010 on Jive Software
• Users have been mobilizing and self-
     organizing, such as sales groups that
     have created social groups to share best
     practices and internal techniques
• Now 30K+ engaged workers

(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.                                           24
Social Business Summit 2011 Singapore | High-Impact Social Business




Human Resource Implications for Social Business
• HR is ground zero for internal and external social
      media
• Example: CHROs we talk to are fielding requests from
      employees to create Facebook groups to collaborate
      - Primary Cause: Employees are not given basic
             collab tools in most firms
      - One CHRO at a large financial services firm has
    received over 50 such requests in 2010 alone
• Increasingly, HR is actually getting in the driverʼs
  seat
      -      Policies
      -      Guidance and Support
      -      Professional Development
      -      “Air Cover”
(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.
Social Business Summit 2011 Singapore | High-Impact Social Business




Show Me The Value:
Latest Social Business ROI findings:
• 1700 executives from around the
  world across a wide range of
  industries
• 69 percent of respondents report
  that their companies have gained
  measurable business benefits,
  including:
    - More innovative products and
      services,
    - More effective marketing and
      customer care
    - Better access to knowledge
    - Lower cost of doing business
    - Higher revenues

                                                                       Source: McKinsey, 2010



 (cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.
Social Business Summit 2011 Singapore | High-Impact Social Business




 How do we best organize for Social Business?

                                                                        • CMO?
                                                                        • Corporate
                                                                          Communications?
                                                                        • Human Resources?
                                                                        • IT Dept?
                                                                      • Where then?
                                                                        • Social Business
                                                                          Office
                                                                        • “Triumvirate”


(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.
Thank you

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2011 SBS Singapore | Dion Hinchcliffe, High Impact Social Business: Stories and New Perspectives

  • 1. High Impact Social Business: Stories and New Perspectives Dion Hinchcliffe (@dhinchcliffe)
  • 2. Social Business Summit 2011 Singapore | High-Impact Social Business The drivers for next-generation business • Pervasive global connectivity • New friction-less interaction platforms • Next-gen mobility • Focus on network effects • Information superabundance • Inherent transparency, openness, and broadcast • The rise of social capital
  • 3. Social Business Summit 2011 Singapore | High-Impact Social Business The current engagement landscape Maturing Competent Webinars online video direct mail P2P video social networks mobile apps Immature (cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.
  • 4. Social Business Summit 2011 Singapore | High-Impact Social Business Social As The New Dominant Global Trend Source: ComScore Global & Morgan Stanley (cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.
  • 5. Social Business Summit 2011 Singapore | High-Impact Social Business Mobile Internet Ramping Up Faster Than Desktop Internet by 5x (cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.
  • 6. Social Business Summit 2011 Singapore | High-Impact Social Business Hundreds of public social networks... (cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved. ...channel fragmentation 6
  • 7. Social Business Summit 2011 Singapore | High-Impact Social Business Dozens of internal social channels • E-mail • Text messaging • Instant messaging • Meetings and conference calls • Enterprise 2.0 • Social CMS • Knowledge management • Intranets • Online communities • Communities of Practice (cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved. 7
  • 8. Social Business Summit 2011 Singapore | High-Impact Social Business Channel Fragmentation Is Now The Norm + 400 social networks with over 1 million users = 2 billion mobile Internet users + 100 million aggregate audience of about 900 million next-gen smart phone users across hundreds of device types Have Become The De Facto Primary Channels for Customer Engagement (cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.
  • 9. Social Business Summit 2011 Singapore | High-Impact Social Business So Customers Have Moved... And Companies Have Fallen Behind • Mobile • Social • New Digital Channels • Approximately 1 Billion “Digital Natives” Have Migrated In the Last 3 Years (cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.
  • 10. Social Business Summit 2011 Singapore | High-Impact Social Business Organizations Know The Problem Will Only Get Worse  Outdated frameworks and operational strategies often relegate discussions to incremental fixes and piecemeal approaches  Although @ComcastCares has over 10 employees responding in new customer engagement channels like Twitter, they can’t scale.  A proliferation of new social networks and mobile apps are appearing at an increased pace – organizations are falling further behind.  The result – large amounts of waste in fragmented data, customer records, touchpoints, and experiences – leaving companies unable to efficiently reach customers, prospects, and partners. (cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.
  • 11. Social Business Summit 2011 Singapore | High-Impact Social Business Change Keeps Coming: The Rise of Social and Mobile Apps PepsiCo Digital Chief: “The majority of social interaction will happen via mobile” - Feb 21, 2011 (cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.
  • 12. Social Business Summit 2011 Singapore | High-Impact Social Business The worldʼs most important channels... (cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.
  • 13. Social Business Summit 2011 Singapore | High-Impact Social Business (cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.
  • 14. Social Business Summit 2011 Singapore | High-Impact Social Business What do these new engagement models really provide to businesses? • Radical reductions in cost of doing business (i.e. 30% reduced support costs) • Dramatic improvements in customer sat scores & partner engagement • Real-time response to customer needs & critical situations • Access to deep pools of innovation • Revenue growth (increased top-of-line sales and service numbers) (cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.
  • 15. High Impact Social Business Stories (cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved. 15
  • 16. Selected Social Business Stories • Open Source Software (OSS) • • The Search for Steve Fossett • Innocentive (B2B) • AOL • Atlassian Lesson Social Talent Pool + Problem = Innovation • SAP B2B Community
  • 17. Social Business Summit 2011 Singapore | High-Impact Social Business Whatʼs the best way to interact with someone under 30? • #1: Have a mobile app on their first screen. • #2: Those under 30 rank text messaging as their primary form of communicating, followed by Facebook. • These are the critical and future new channels in which to have deep marketing effectiveness. • The primary future of marketing will be in “large scale social experiences.” (cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved. 17
  • 18. Social Business Summit 2011 Singapore | High-Impact Social Business The Leading Edge of Customer Engagement: Large Scale Social Experiences (cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved. 18
  • 19. Social Business Summit 2011 Singapore | High-Impact Social Business Case Study: HBO • More than 750,000 additional visitors • Increased Facebook engagement by 115% (improvement in number of Likes to 3 million.) • Tens of thousands in additional merchandise sales • Nearly doubled the number of 3rd season premier viewers to 6.4 million (cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved. 19
  • 20. Social Business Summit 2011 Singapore | High-Impact Social Business Where is the social business opportunity in workforce engagement? • Increased levels of productivity that were inaccessible until now • Enablement of tacit interactions on a previously unknown scale (Source: McKinsey & Company) Enterprise 2.0 has the potential to increase productivity in complex interactions, where previous attempts have largely failed (cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.
  • 21. Social Business Summit 2011 Singapore | High-Impact Social Business The 50 Foot Collaboration Rule • Workers are not likely to collaborate very often if they are more than 50 feet apart: Take Away: Surmounting this obstacle is now • Even with traditional possible with social electronic aids such as telephone, e-mail, and technologies remote video (cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved. 21
  • 22. Social Business Summit 2011 Singapore | High-Impact Social Business Significant Social Business Examples • - 50x ROI in high value scenarios • - 29% reduction in e- mail volume after making social their primary business channel • and Atos Origin - Eliminating e-mail entirely while moving to social channels • Gold Corp - $3.5 billion in value generated through
  • 23. Social Business Summit 2011 Singapore | High-Impact Social Business Social CRM: How can we have conversations of value with millions customers? Example: (cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.
  • 24. Social Business Summit 2011 Singapore | High-Impact Social Business • Telecommunications giant wanted workers to be much more collaborative From Greg Lowe, Enterprise 2.0 Lead: • 77,000 employees scattered across the globe previously using primarily process- focused tools like SharePoint • Began experimenting with Yammer back in 2008, now over 9,300 workers using it - Users began reporting Ibenefits: a problem.'” “Yammer saved me three days of trying to find who should talk to about • Spent 13 months working on formal E2.0 implementation, which rolled out earlier in 2010 on Jive Software • Users have been mobilizing and self- organizing, such as sales groups that have created social groups to share best practices and internal techniques • Now 30K+ engaged workers (cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved. 24
  • 25. Social Business Summit 2011 Singapore | High-Impact Social Business Human Resource Implications for Social Business • HR is ground zero for internal and external social media • Example: CHROs we talk to are fielding requests from employees to create Facebook groups to collaborate - Primary Cause: Employees are not given basic collab tools in most firms - One CHRO at a large financial services firm has received over 50 such requests in 2010 alone • Increasingly, HR is actually getting in the driverʼs seat - Policies - Guidance and Support - Professional Development - “Air Cover” (cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.
  • 26. Social Business Summit 2011 Singapore | High-Impact Social Business Show Me The Value: Latest Social Business ROI findings: • 1700 executives from around the world across a wide range of industries • 69 percent of respondents report that their companies have gained measurable business benefits, including: - More innovative products and services, - More effective marketing and customer care - Better access to knowledge - Lower cost of doing business - Higher revenues Source: McKinsey, 2010 (cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.
  • 27. Social Business Summit 2011 Singapore | High-Impact Social Business How do we best organize for Social Business? • CMO? • Corporate Communications? • Human Resources? • IT Dept? • Where then? • Social Business Office • “Triumvirate” (cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.

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