The document discusses social business and the move beyond social media and traditional enterprise 2.0. It notes that social networking is now a significant business development and is how people function today. Companies are falling behind due to new digital channels and a new generation of digital natives. Case studies show companies achieving measurable ROI through social business approaches, including reduced costs, improved customer satisfaction and innovation.

1. Social Business:
Looking Beyond Social Media and Enterprise
2.0 to Real ROI
by Dion Hinchcliffe (@dhinchcliffe)

2. Introduction
Dion Hinchcliffe
• ZDNet’s Enterprise Web 2.0
• http://blogs.zdnet.com/Hinchcliffe
• Social Computing Journal – Editor-in-Chief
• http://socialcomputingjournal.com
• ebizQ’s Next-Generation Enterprises
•http://www.ebizq.net/blogs/enterprise
• http://dachisgroup.com
• mailto:dion.hinchcliffe@dachisgroup.com
• Web 2.0 University
• http://web20university.com
• : @dhinchcliffe
2

3. Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO Roundtable
The realization has hit
“Social networking is the most significant
business development of 2010, topping the
resurgence of the U.S. automobile industry.”
- Bill George, Professor of Management Practice at Harvard Business School
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4. Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO Roundtable
Social is now how we function today
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5. Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO Roundtable
The drivers for next-generation computing
• 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

6. Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO Roundtable
In this new marketplace, the opportunities
are unlimited
• All your associates
• All your customers
• All your competitors
• All the ideas and innovation
• Only a few proven
strategies for long-term
competitive advantage
If only we can understand how to access
them
® 2010 Dachis Group. Confidential and Proprietary

7. Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO Roundtable
A key source of experience:
The 2.0 Adoption Council
• Over 250 large firms
• Practitioners of
Social Business and
Enterprise 2.0
• Only companies with
over 5,000
employees
• Our research and
insight into these
hundreds of firms
drive best practices
and lessons learned
• Participants must
share their data
• We are now
publishing reports of
council memberʼs
business benefits
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8. Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO Roundtable
Hundreds of public social networks...
® 2010 Dachis Group. Confidential and Proprietary
...channel fragmentation 8

9. Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO Roundtable
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
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10. Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO Roundtable
So the World Has Have Moved On...
And Companies Have Fallen Behind
• Mobile
• Social
• New Digital Channels
• Approximately 1 Billion “Digital Natives” Have
Migrated In the Last 3 Years
® 2010 Dachis Group. Confidential and Proprietary

11. Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO Roundtable
Show Me The Value:
Latest B2B social 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, September 2009
® 2010 Dachis Group. Confidential and Proprietary

12. Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO Roundtable
Using Traditional Means, Companies Canʼt Keep
Up
 For companies, real time is not fast enough, Example:
Motrin responded to angry moms within 24 hours – it was
too slow.
 Companies are unable to scale to meet the needs of social,
Example: Dell and ComcastCares community managers
cannot scale to meet all customer interactions
 Customers don’t care what department you’re in. They just
want their issues resolved.
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13. Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO Roundtable
Companies Know
The Problem Will
Only Get Worse
 Outdated frameworks and operational strategies relegate discussions to
incremental fixes and piecemeal approaches
 Organizations realize they are no longer in charge. They usually lack a credible
strategy that empowers employees to catch up to customers.
 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 tools 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.
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14. Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO Roundtable
What do new social business
channels really provide?
• Radical reductions in cost of
doing business (i.e. 30% reduced
support costs)
• Significant improvements in
customer sat scores
• Real-time response to
customer needs & critical
situations
• Access to deep pools of
innovation
• Revenue growth (increased
top-of-line sales and service
numbers) See Case Studies Section
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15. Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO Roundtable
Knowledge is increasingly visible in social channels
It no longer “evaporates” or is hidden
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16. Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO Roundtable
And we now realize itʼs part of a single continuum...
Social
Busine
enterp
rise ec
osyste
m
ss
net
t
ane
r
Inte
extr
customers +
world
net
business partners
a
intr
Web 2.0 integr
ated
vision
Crowdsourcing workers
Social Media Social CRM
Online Communities Enterprise 2.0
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17. Dachis Group | 2011
Social business design applied
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18. Dachis Group | 2011
Why Social Business Design?
Improved
= &
+ Emergent
Outcomes
•Adaptable business practices •Cost savings and efficiencies
•Improved collaborative processes •Informed social marketing strategies
•Customer growth, retention and sustainability •New product & service offerings/innovations
•Expansion into new markets
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19. Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO Roundtable
The Social Business Landscape in 2010

20. Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO Roundtable
The Social Business Platform Landscape

21. Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO Roundtable
Collective Intelligence
“The creation of typed signals by
listening to social ecosystems,
resulting in the ability to tap into
collective intelligence as well as
aggregate, mine, and predict
outcomes.”
Getting value from what’s observable
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22. Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO Roundtable
But is all this observable information valuable?
story
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23. Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO Roundtable
Observable work: The issues
• Knowledge workers currently spend 20% of their
time looking for the information they need to do
their jobs (1 day a week) Source: Forrester
• Approximately 42% of the economies of developed
nations is “tacit interactions”, meaning complex
collaborative problem solving carried out by
knowledge workers. Source: McKinsey
• Organizations that adopt social tools widely, after
several years, see the amount of observable work
skyrocket, becoming a management and search
concern. Source: Jive
• Between 80%-90% of the information that
organizations have spend hundreds of billions
collecting over the last 30 years in IT systems is
inaccessible by most workers. Source: Various including
Gartner, IDC, others
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24. Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO Roundtable
“Information overload is not the problem. Itʼs
filter failure.” - Clay Shirky
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25. Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO Roundtable
Our information landscape is now measured in
millions of exabytes
1 EB = 1,000,000,000,000,000,000 B = 1018 bytes = 1 billion gigabytes = 1 million terabytes
• Social ecosystems are largely responsible.
• The good news: Information is no longer
submerged.
• However, it is increasingly becoming an onslaught.
Visible
Knowledge Us
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26. Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO Roundtable
Overcoming the fact that the enterprise
is not the Web
• We want to replicate the
positive aspects of
consumer social platforms
in the enterprise
• But our infrastructure is
usually not very Web-like,
creating significant
impedance and diluted
results
• Requires augmentation and
adaptation to reproduce the
same or similar results
• Linkability, SEO of social
knowledge, federated
search, etc.

27. Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO Roundtable
Comparing analytics and search
Seeing the Finding the
shape of the needle
haystack
analytics versus search
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28. Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO Roundtable
Significant Recent Examples
• TransUnion - 50x ROI in
high value scenarios
• IBM - 29% reduction in e-
mail volume after making
social their primary
interaction channel
• Siemens - Eliminating e-
mail entirely
• Atos Origin - Pledge to be
zero e-mail in 3 years
• Alcatel-Lucent - Over
10,000 active users in just
a few month since 2010
launch

29. Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO Roundtable
Transunion
• The firm:
- Founded in 1968
- 3,000 workers in 25 countries
- Revenue: Closely held
- 50,000 corporate customers
- Top credit rating firm
• Discovered most employees used social tools today
• Objective: Improve IT performance to the business, make
sure the businessʼs work “didnʼt get too public.”
• CTO initiated a company-wide social collaboration
strategy
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30. Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO Roundtable
TransUnion and Social Collaboration
Realization
TransUnion realized it was
time to provide an internal TransUnion conducted
a survey:
social collaboration tool when
Step 1 people started asking for About 2,000 of its 2,700
permission to set up employees were already using
employee groups inside some kind of public social
Facebook networking tool.
Demand
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31. Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO Roundtable
TransUnion and Social Collaboration
Challenges
TransUnion CTO
TransUnion deals in
John Parkinson:
credit reports:
He believed it would meet a
Step 2 It wasn’t keen on need for employees, and, just as
employees gathering to importantly, “I wanted to defend
talk shop on the public against too much of this going on
Web on the Internet,” he says.
Managing Change,
Instead of Being Managed By It
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32. Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO Roundtable
TransUnion and Social Collaboration
Strategic
Collaboration
Focus on what
The CTO decided to most work is, informal.
tackle both social
Step 3 computing and
collaboration using a
Existing systems of record used
cohesive strategy to for their strengths, while
drive business goals. ad hoc collaboration is supported
and harnessed.
Focus on
how people really
work together
® 2011 Dachis Group. Confidential and Proprietary

33. Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO Roundtable
TransUnion and Social Collaboration
Solution: Social
Software
Associates can tune their settings
• They created a program to to allow all questions or allow only
give associates user
profiles, a wiki capability, those from certain groups or
and instant messaging people.
internally.
Step 4 • Perhaps most powerfully,
employees can use it to ask
TransUnion is applying usage data
to learn who’s best at solving
questions of a broad group. business problems raised in the
• Associates can tune their social network.
settings to allow all
questions or allow only Parkinson says. “Now we can see
those from certain groups
powerful patterns emerge, to see
or people.
who’s following whom, who’s the
good source of questions, who
Carefully situated offers good answers”
to support business
outcomes
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34. Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO Roundtable
TransUnion and Social Collaboration
Results
The savings come out of groups
• Associates are finding that would have historically said,
information faster ‘Buy me more hardware’ or ‘I
• Collaborating and meeting need a new software tool’ or ‘I
challenges with better need more processing capacity.’
solutions
• $2.5 million in quantifiable
Step 5 savings and fewer staff
“They figured out how to use
general purpose collaboration to
• $50K investment on
solve their problems without
software and 3x on rollout
• Current partial rollout will asking for any of those things,”
create $5 million to $8 says Parkinson.
million in savings per year
Expecting lower savings rate but
much later savings as software is
used in less performance critical
Productivity has been areas.
the biggest benefit
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35. Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO Roundtable
value
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36. Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO Roundtable
Entering a new era of information
Take Away: We donʼt need to directly see all the information, we
need to see the “shadows” it makes.
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37. Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO Roundtable
How do we get to the third wave?
• Cloud computing? SOA?
• Open APIs and supply chains?
• Decentralized IT?
• Better data warehouses?
• Improved search engines?
• Recommendation systems?
• Business re-engineering?
The Goal: Breaking down
• How about analytics? information silos and
obscured information inside
and outside of our
organizations to get to value
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38. Aspects of Digital Strategy
And Their Relation To Social and Mobility
Security Content Management
not normally
Ops App part of Intranet Strategy
overlap Store digital strategy
Business Apps Crowdsourcing
SMS Influencer Engagement Analytics Podcasting/Online Video Demand
Generation
SEM
Digital Branding E-mail Campaigns Digital Marketing Social Media
Customer Marketing Online
Digital Apps
Ads
Communities
Social CRM
Customer Care & CRM Consumer SNS Apps SEO
Customer
Microsites
Strategy Social
Sales E-Commerce Media Business Partner Support
Mobile Content
Enablement Affiliate Portal/ Social Supply
Communities Chains/Open APIs
Web Presence Innovation
Mobility Management
Platform Support
Workforce
Location Mobile/Social Delivery Touchpoint
(most social experiences will be mobile) Collaboration
Integration
Mobility Strategy Social Strategy

40. Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO Roundtable
Significant Motivation Exists
• 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
® 2010 Dachis Group. Confidential and Proprietary

41. Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO Roundtable
Determining the ROI of Social
Computing
• Project costs tend to be
lower than classical IT
efforts (Example: Transunion, $50K to reap
$2M+)
• ROI is hard to measure
because of cause and
effect chains
• But when I is low, R is
easier to reach
® 2010 Dachis Group. Confidential and Proprietary

42. Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO Roundtable
Distributed Value
® 2010 Dachis Group. Confidential and Proprietary

43. Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO Roundtable
Recap: Aspects of Social Business
® 2010 Dachis Group. Confidential and Proprietary

44. Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO Roundtable
Other key strategies of
social computing
• “One search engine to rule them all”
• Investment in collaborative literacy
• Measure your KPIs regularly before and
during deployment
• Two community managers from the outset
• Throw your old intranet away
• Federation is the key to adoption and
success
® 2010 Dachis Group. Confidential and Proprietary

45. Social Business- Looking Beyond Social Media and Enterprise 2.0 to Real ROI - CTO Roundtable
The Future of Social Business ROI
• Weʼll move beyond conflating social
listening and engagement with analytics
• The Google of social analytics will arrive
- It will be free, it will be multi-channel, and it will allow us
to see more of the shadows than ever before
• There will continue to be many niche tools but it will
ultimately look like the search industry does today
• Enterprises will be largely left out of the online world
of social analytics for internal uses
- But for companies that want to, they will finally “know
what they know.”
• Business intelligence tools will become better at
social analytics.
• We will know weʼve gotten there when social analytics
tells us why, not just what
- Taking on previously unconquerable business challenges
® 2010 Dachis Group. Confidential and Proprietary