This was the presentation used for the 2010 Keynote presentation at the CIO Year Ahead Summit in Palm Springs

1. Transforming Competitive Advantage with Social Media Prepared for the CIO Year Ahead Summit – Palm Springs, Nov 8th, 2010 @fgossieaux

2. Overview Understanding the true drivers of Social MediaHow do Hyper-Social Organizations think about their business?What do Hyper-Social Organizations do Differently, and WHY?5 ways to think differently about IT

3. Let’s start off with a little example Human 1.0 vs. Web 2.0 The SAP Developer Community

4. The SAP Developer Network 4 Stats: 1.4 M users 400K+ business experts Content-rich Original Incentive System: Point system leading to personal rewards The Results: Bullying behavior in the community New Incentive System: Point system leading to donation to good cause The Results: No more bullying in the community Web 2.0 or Human 1.0?

5. A look at some NIH + Duke Research Experiment #1: People play Atari-style video game which allows them to earn or lose money for themselves MRI scans shows that the pleasure side of the brain lights up – that same part that gets addicted to drugs Experiment #2: People play Atari-style video game which allows them to earn or lose money for a charity MRI scans shows that the altruism side of the brain lights up – that same part that is responsible for social interactions

6. So to understand how to do business in a 2.0 world… You are better off understanding Human 1.0 – not as individuals, but as hyper-social creatures You do not need to understand the Web 2.0 technologies

7. Let’s get a level deeper on the Human 1.0…

8. Why are social beings helping one another? Reciprocity = a Reflex

9. Why are people going out of their way to punish others? Humans have an innate sense of fairness = keeps reciprocal society working

10. How do we make decisions? Market Framework Social Framework

11. Why do people like to look like others? Because humans have mirror neurons

12. Why do we lie to market researchers? Because we lie to ourselves and others, and we tell people what we think they want to hear

13. Why is status so important (and why do we hoard it)? Because it used to get us a better mate – proceed with caution: status works both ways!

14. We are a herding species – self herding even

15. What are the important Human 1.0 Hyper-Social Traits Reciprocity – it’s a reflex that allows us to be the only super-social species without all being brothers and sisters The role of fairness in assessing situations Social framework of evaluating things vs. market framework The importance of looking cool and mimicking others Herding and self-herding (early research shows that social behavior does not change when it scales) So to the extent that we can basically be human with what we know, and share it as freely as we possibly can, I think we’ll go a long way towards gaining a higher or stronger level of trust with the consumers. Barry Judge, CMO Best Buy http://www.cmotwo.com

16. How they think differently about their business Successful Hyper-Social Organizations Informed by Tribalization of Business Study: 2008-2010 – 1,000+ companies took the survey

17. Hyper-Social companies think differently Think tribe – not market segment We need to find groups of people who have something in common based on their behavior, not their market characteristics Think knowledge network – not information channel The most important conversations in communities happen in networks of people, not between the company and the community. Think human-centricity – not company-centricity The human has to be at the center of everything you do, not the company Think emergent messiness – not hierarchical fixed processes People will want to see responses to their suggestions, even if it does not fit your community goals – FAST “…affinity groups will quickly become the dominant social force in the emerging world economy, changing how we think about markets, fads, social movements, and, ultimately, power” - Tom Hayes, Jump Point: How Network Culture is Revolutionizing Business – 2008

18. What is it that they do differently? Hyper-Social Organizations

19. Hyper-Social Orgs – Leveraging Social Business Processes Successful Hyper-Social organizations turn their business processes into “social” processes Why? Scale Increased quality Increased passion Increased WOM

20. Turning a business process into a social process IS NOT: Running traditional programs using social media platforms – PR by blogging press releases, lead gen by spamming community members, recruiting through spray and pray over Twitter, etc. BUT IS: Running programs based on human reciprocity and social contracts to get others, whose job it isn’t to do so, to help you do your job – customer support with the help of all employees and customers, product innovation with customers and detractors, etc. TAPPING INTO PASSION, AND HUMAN 1.0 TRAITS

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22. …In a Hyper-Social World 5 ways to think differently about IT

23. 1) Bring down that wall

24. Do like IBM – get rid of the firewall while protecting IP Green Enthusiasts CIO’s Business model tweak PR Customer support IP IP IP Product Idea …increase knowledge flows…and competitiveness

25. 2) Don’t build new walls

26. Don’t put a wall between company and people

27. Don’t put a wall between company and people

28. Embrace what people want …and give them access…it will increase passion & productivity!

29. …and get people commitment 3) Tear down silos

30. Business objectives of communities

31. Department managing community

32. # of people managing community

33. Establish Center for Excellence Budgets KPI’s

34. …or don’t let history repeat itself 4) Don’t build what you built before

35. Move with caution – it’s not easy! We need Social graphs We need Social CRM

36. 36 The funnel is dead Source: McKinsey Quarterly http://www.mckinseyquarterly.com/The_consumer_decision_journey_2373

37. 37 Today’s buying cycle: a social-powered continuous loop process Many more sources of information Can still become part of consideration set Tribes & Networks Based on source: McKinsey Quarterly http://www.mckinseyquarterly.com/The_consumer_decision_journey_2373

38. CRM – the makings of a social process Leave company centricity behind: Prospects, lead nurturing, sales funnel, etc. Put the customer at the center: What does she need? Will it work for her? Increase knowledge flows, and think tribes Who can help her internally? Who can help her externally? Embrace a messier process Allow people to jump in and help

39. Or think out of the box 5) Be counter-intuitive

40. CIO = Chief Information Officer?

41. “We find ourselves in the oddest position – which is to tell the business units that this is not a technology issue but a people and process issue.” – CIO at a major pharmaceutical company Or…. CIO = Cultural Inspiration Officer

42. The benefits of a Cultural Inspiration Officer Better knowledge flows = Social Knowledge Management Platform Customer/employee centricity = leveraging more passion Leveraging passion = increasing productivity exponentially More passion = increased WOM = the creation of more customers with a higher lifetime value “The purpose of a business is to create a customer.” -- Peter Drucker

43. Any questions? Francois Gossieaux President, Human 1.0 e. francois@human1.com w. http://www.human1.com b. http://www.emergencemarketing.com c. http://www.marketingtwo.net p. http://www.cmotwo.com t. http://twitter.com/fgossieaux Our new book: The Hyper-Social Organization http://www.facebook.com/hypersocialorg 43