This document discusses the evolution of social media and strategies for businesses. It explores how social media has changed through major platforms and innovations over time. It also examines how businesses can develop open leadership, build relationships with customers through social media, and prepare for potential disruptions by asking the right questions about creating value for customers. The document provides examples of companies that have successfully adapted their strategies, including Dell, Starbucks, Best Buy, and Salesforce.com. It analyzes emerging trends like gamification, curation, big data, and how "likes" function as a new type of social currency.

1. Social Media Revolution And Evolution Charlene Li Altimeter Group April 27, 2011 Twitter: @charleneli Email: charlene@altimetergroup.com 1

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4. May 2007

5. Facebook Connect

6. July 2008

7. Iphone App Store

8. July 2008

9. Nexus One Android

11. 5 © 2011 Altimeter Group

12. 6 © 2011 Altimeter Group

13. It’s about RELATIONSHIPS © 2011 Altimeter Group

14. 8 Four goals define your SocialStrategy

15. Allow all employees to Learn 9 What would happen if every employee could learn from customers?

16. How DellOutlet drives sales with Dialog 10

17. Support can be strategic 11

18. 12 Starbucks involved 50 People to drive Innovation © 2011 Altimeter Group

19. Actio: Create a Culture of Sharing 13

20. Present: Rethinking Leadership © 2010 Altimeter Group

21. How to give up CONTROL But still be in COMMAND © 2011 Altimeter Group

22. Open Leadership 16 Having the confidence and humility to give up the need to be in control, while inspiring commitment from people to accomplish goals © 2011 Altimeter Group

23. Traits of Open Leaders 17 Authenticity Transparency

24. Transparency as an imperative 18

25. How Best Buy created Open Leaders 19 © 2011 Altimeter Group

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28. Salesforce.com redefines leaders Designated the top 25 users as “Chatterati” and invited to leadership offsite © 2010 Altimeter Group

29. “You can imagine the Chatterati creating as much value as an SVP in the organization by sharing their institutional knowledge and expertise - and we should look at compensation structures with that in mind.” - Marc Benioff, CEO of Salesforce.com © 2010 Altimeter Group

30. No relationships are perfect Google’s mantra:“Fail fast, fail smart” Action: Prepare for Failure 24 © 2011 Altimeter Group

31. 25 Create Sandbox Covenants © 2011 Altimeter Group

32. Future: Building Resilience © 2010 Altimeter Group

37. Likenomics evaluation 29 User experience impact - moderate People with high social currency will enjoy benefits, richer experiences, receive psychic income. People with low social currency will find ways to get it. Business model impact – moderate New economics create opportunity for people who understand Likenomics to leverage gas. The cost of accessing social currency will increase, and raise barriers to entry. Ecosystem value impact – none

38. 30 2) Social Search – Beyond Friends to Interests Social sharing rises as a search ranking signal, esp in the enterprise Create a social content hub to gain traction Use microformats to highlight granularity (e.g. hProduct & hReview)

39. Social Search evaluation 31 User experience impact - Moderate Search becomes more useful, relevant to people. Business model impact – Moderate SEO takes on a different dimension, rewards companies with social currency, personalized experiences. Ecosystem value impact – Moderate New power brokers are social data/profile players who capture activity data and profiles. Google has little of either.

40. Social monitoring merges with Web analytics HOT: Omniture, Coremetrics/IBM, Webtrends Technology like Hadoop makes it easy for companies to tap “Big Data” E.g. New York Times making its archives public Twitter archived by Library of Congress Facebook Cassandra, Amazon Dynamo, Google BigTable Data visualization tools make it easy to digest Balancing privacy and personalization 3) Big Data 32

41. Big Data evaluation 33 User experience impact - Low Most users won’t directly experience Big Data. Business model impact – High New businesses and initiatives can be started at very low cost. Ecosystem value impact – Moderate Owners of Big Data repositories can assert control, demand payments for access.

42. 34 4) Game-ification

43. TurboTax used “games” to encourage sharing and support 35 Social design can enter training, collaboration, support, hiring

44. Gamification evaluation 36 User experience impact – High Experiences get richer, more engaging Business model impact – Moderate Work gets done faster, cheaper. New organizational structures and cultures emerge. Ecosystem value impact – Low Service providers will remain focused, boutique firms.

45. 37 5) Curation

46. Curation evaluation 38 User experience impact – Moderate User authority established from better curation, better content is organized well. Business model impact – Moderate Easier for businesses to create their content. Ecosystem value impact – Moderate Individuals challenge media and brands as authorities – and publishers that siphon off ad dollars.

47. Summary of disruptions 39

48. Action: Ask the Right Questionsabout Value 40 “We tend to overvalue the things we can measure, and undervalue the things we cannot.” - John Hayes, CMO of American Express © 2011 Altimeter Group

49. Charlene Li charlene@altimetergroup.com charleneli.com/blog Twitter: charleneli For slides, send an email to slides@altimetergroup.com For more information & to buy the book visit open-leadership.com © 2011 Altimeter Group