© 2014 IBM Corporation

Sasja Beerendonk, e-office

BP305: Show Me the Money! The Value in Social Business

@sbeerendonk

About me

sasja.beerendonk@e-office.com

twitter.com/sbeerendonk

http://nl.linkedin.com/in/sbeerendonk

http://thoughtsoncollaboration.com

@sbeerendonk

Agenda

• ROI, why? and some social business ROI myths

• From social software to a social business

• Measure: usage versus effect

• Value of engagement

• Value of productivity

• Value metrics through use cases

@sbeerendonk

4

ROI, why?

@sbeerendonk

What is the ROI of a phone?

Should we measure the amount of calls?

Does use of other systems, such as email, decrease?

How does the phone help an employee do their work?

Source: Return On Contribution (ROC): A

Metric for Enterprise Social Software, Muller@sbeerendonk

Social business ROI myths

a metric = ROI

social business ROI is not measurable

measuring ‘likes’ and ‘followers’ = ROI

@sbeerendonk

7

From social software to a social business

@sbeerendonk

Social business creates value

find expertise

@sbeerendonk

Maslow’s hierarchy for enterprise 2.0

Maslow’s Hierarchy of Enterprise

2.0 ROI, Hutch Carpenter, 2010 @sbeerendonk

Measurement principles

• Define success

• Measure to inform and enhance

• Don’t fall for ‘easy measures’

• Better measures

• use cross-referencing and combining of

metrics

• Measure regularly

Source: Michael Sampson –

User Adoption Strategies 2nd ed.

Increase organizational effectiveness, across

borders, reducing duplication of effort

# communities with active participation

from employees from different offices

# blog posts with comments from

employees in other offices

% projects (activities) with employees from

different offices

@sbeerendonk

11

Measure: usage versus effect

@sbeerendonk

Distinguish between the reach of social collaboration, and the resulting use of tools and the

effect on individual work effectivity and organisation goals.

@sbeerendonk

Two ways to focus

13

Business process Collaboration process

@sbeerendonk

14

Value of engagement

@sbeerendonk

Employee engagement

I share my knowledge and expertise

I react and reply

I am well informed

be show

@sbeerendonk

1-9-90 rule on participation

90%

1%

http://en.wikipedia.org/wiki/1%25_rule_%28Internet_culture%29

9%

@sbeerendonk

Engagement tool

• define ‘lurkers’ further:

• Creator

• Contributor

• Joiner

• Spectator

• Inactives

lurkers

Download the flyer of the e-office engage-o-meter@sbeerendonk

on average 15% of employees is Creator and 20% is Contributor… in order to create value

these employees need to become more productive!

How to make sociale software a success?

engagement pyramid

@sbeerendonk

Return on Contribution

Source: Return On Contribution (ROC): A

Metric for Enterprise Social Software, Muller@sbeerendonk

An example of ROC

Source: presentation Chris Sparshott -Evaluating the Success of an IBM Collaboration and Social Networking project

@sbeerendonk

What does the number 2.59 mean?

Source: presentation Chris Sparshott -Evaluating the Success of an IBM Collaboration and Social Networking project

Bookmark originator

bookmarks a resource

2.59 consumers benefit from the work of

each bookmark originator

@sbeerendonk

22

Value of productivity

@sbeerendonk

Sequential collaboration versus co-creation

Let’s make music!

23 @sbeerendonk

Rythm guitar

24

Lead guitar

Bass Drums

@sbeerendonk

Merge together

28@sbeerendonk

True co-creation

29

http://www.youtube.com/watch?v=d9NF2edxy-M

To be succesful, employees need to …

@sbeerendonk

Collaboration: Email versus Files

Collaboration: Email versus Wiki

Productivity wins

@sbeerendonk

34

Value metrics through use cases

@sbeerendonk

Organization goals

• Work more effectively across countries and timezones

• Bring together expertise from different offices/countries

• Decrease travel time

• Bring innovations to market faster

• Deliver projects on time

• Solve problems faster

• Secure expertise from employees who leave

• Faster onboarding

• Build communities of practice to share and enhance knowledge in key areas

• Hold on to good staff longer

@sbeerendonk

How then?

• Focus on organisation goals

• ‘Translate’ goals to use cases

• Work from activity-metrics to value-metrics

@sbeerendonk

Finding expertise

• Quickly locate the right people, or published content containing, the expertise

needed to solve a problem

• Connect the best possible resources to effectively respond to customer needs

• Document and share reusable solutions to common issues

• Create highly-engaged and productive employees.

Benefits

• 30% improvement in speed of accessing experts

• 55% increase in visibility of company’s subject matter experts on its public website

IBM Whitepaper (2013)Patterns in achieving social business success by leading and pioneering organizations

USE CASE

@sbeerendonk

Gaining external customer insights

• Quickly learn customers’ opinions and preferences related to existing and potential

products and services

• Identify and connect with key customer influencers to aid marketing efforts

Benefits

• Nearly 50% reduction in customer/agent service costs

• >50% decrease in time required to develop new services and features

• 20% reduction in man hours needed to create new product release information

USE CASE

@sbeerendonk

IBM Whitepaper (2013)Patterns in achieving social business success by leading and pioneering organizations

Share knowledge

• More efficiently and effectively capture, share and access knowledge

• Increase innovation through wider reach of ideas

• Reduce excessive, unproductive time spent searching and exchanging information

Benefits

• 30% improvement in speed of accessing experts

• Productivity increases of 20-25% attributable to reduced need for status meetings

• Accelerated problem resolution due to more effective use of communication tools

• Improved employee engagement and satisfaction

USE CASE

@sbeerendonk

IBM Whitepaper (2013)Patterns in achieving social business success by leading and pioneering organizations

Recruiting and onboarding employees

• Collaboratively find and connect the right candidate to the right position

• Streamline assessment and hiring processes

• Better connect, engage and retain new hires

• Contextually recommend expertise to increase new hires’ productivity

Benefits

• 30% more candidate searches completed annually

• 25% reduction in time needed to fill open positions

• 2 day reduction in time to on-boarding new employees, 30% faster new hire time-to-value

• At least 20% increase in employee retention

USE CASE

@sbeerendonk

IBM Whitepaper (2013)Patterns in achieving social business success by leading and pioneering organizations

Use case example

support department needs to

collaborate more effective

across borders and time

Employees are able to locate colleagues with needed skills irrespective of their location

Subject matter coordinators blog regularly to share latest updates in their area

“How to” wikis are regularly updated by team members and are heavily used to find information

Activities are set up to enable small teams to work together across time zones to resolve problems

% profiles with skills updated# searches on profiles# reads of profiles

# blog entries added# blog authors# comments to blog entries# reads of blog entries

# wiki edits made# wiki authors, from different offices# comments to wiki entries# reads of wikis

# new activities started, with people from different offices# activity owners# activity members# reads of activities

Average time to close a customer request is reduced by x%

Customer satisfaction survey shows an improvement of y%

Staff satisfaction survey shows improvement in job satisfaction score of customer support staff

Staff turnover among customer support staff shows a reduction of z%

Average handling cost per customer request is reduced by x $USD

Annual customer support recruitment costs are reduced by x $USD

IBM Software Services for Lotus - White Paper, June 2010 Measuring the value of social software

Metrics of creation, consumption, membership etc

@sbeerendonk

• Access Connect Online to complete your session surveys using any:

– Web or mobile browser

– Connect Online kiosk onsite

42 @sbeerendonk

And now …

• Questions?

• Contact me

• More information ? – experience the business of

social software

• Read whitepaper– ‘Social Business’ (NL)

• Watch more webcasts and

live webinars

sasja.beerendonk@e-office.com

twitter.com/sbeerendonk

http://nl.linkedin.com/in/sbeerendonk

http://thoughtsoncollaboration.com

@sbeerendonk

44

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