Social Business Trends

L E A D E R NETWORKS

Copyright © 2013 Leader Networks, LLC 1

A Review of Three Social Business Studies: The state of social business today, obstacles and opportunities and the key to success

Presented to The Society for New Communications Research (SNCR)

Vanessa DiMauro

CEO and Managing Partner, Leader Networks http://www.leadernetworks.com

@vdimauro

http://www.leadernetworks.com/


Copyright © 2013 Leader Networks, LLC

About Leader Networks

• Leader Networks is a strategic research and consulting firm that helps clients develop social business strategies and create online communities that deliver tangible results.

• Fun facts about Leader Networks:

– Our founder and CEO has been working with “social technologies” since ARPANet circa 1991.

– Our clients span a wide variety of industries and we have worked with some of the largest companies in the world.

– We use a range of applied action research methods including survey and ethnography to help our clients make informed decisions.

– Social business and online community strategy, health checks and operational impact metrics are core to our practice.

– We are visible thought leaders– Forbes, Wall Street Journal, New York Times, CIO Magazine and more.

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Agenda - A Review of Three Social Business Studies

• Social business – a macro perspective from the Social Business Benchmark Study (2013):

– The state of the state of social business

– Social business models

– What’s coming next

• Obstacles and opportunities for social business from the Socially Enabled Enterprise Study (2013) and The Socially Driven Collaboration Study (2013)

– Barriers to success (metrics, operational alignment and organizational structure)

• Looking forward:

– Comments on the future

– Tips for social business success

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Copyright © 2013 Leader Networks, LLC Proprietary & Confidential 4

Let’s start by defining what social business means in the context of B2B

The ability for a sponsoring organization to engage with one or more stakeholders to help them solve problems and surface insights that offer the opportunity to compliment or enhance those business processes that deliver

value to the end-client.

Activities that use social media, social software and social networks to enable more efficient, effective and mutually useful connections between people,

information and assets. These connections can drive business decisions, actions and outcomes across the enterprise.

Source: Social Business: What Are Companies Really Doing? MIT Sloan Management Review, Research Report 2012 (in collaboration with Deloitte), by David Kiron, Doug Palmer, Anh Nguyen Phillips, Nina Kruschwitz

Source: Leader Networks, LLC

We call the companies in the fully and externally networked groups extended enterprises, since their use of social technologies in customer and partner

outreach blurs the boundaries of the organization.

Source: How social technologies are extending the organization McKinsey Quarterly, Jacques Bughin, Angela Hung Byers, and Michael Chui



SOCIAL BUSINESS – A MACRO PERSPECTIVE FROM THE SOCIAL BUSINESS BENCHMARK STUDY (2013) STUDY DOWNLOAD: HTTP://WWW.SLIDESHARE.NET/VDIMAURO/SOCIAL-BUSINESS-BENCHMARK-REPORT SLIDES: HTTP://WWW.SLIDESHARE.NET/VDIMAURO/THE-2013-SOCIAL-BUSINESS-BENCHMARK

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http://www.slideshare.net/vdimauro/social-business-benchmark-report








http://www.slideshare.net/vdimauro/the-2013-social-business-benchmark












The Purpose Of The Social Business Benchmark Project

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Study what companies are doing with their social business activities and to benchmark organizations readiness for social business & provide future guideposts

Key research questions: • Do companies differentiate social media marketing from social

business? • What is the social strategic intention, operational alignment,

staffing, policy, and governance structures norms for social?



Research Methods

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To explore these questions we did a mixed method research study with support from Society for New Communications Research (SNCR) Study composition:

75 companies participated in this preliminary findings report 25 participated in pilot qualitative interviews between Nov. 2012 – Feb. 2013 The responses came from a range of industries and company sizes but the majority were mainly larger organizations (between 1K to <50K employees) and 62% focused on Business to Business (B2B)

The study is longitudinal –so please participate http://www.surveymethods.com/EndUser.aspx?CBEF839AC98F9C90CC

http://www.sncr.org/

http://www.surveymethods.com/EndUser.aspx?CBEF839AC98F9C90CC



“Socially Present”

“Socially Familiar”

“Socially Integrated”

“Socially Enabled”

Design for marketing presence

on the social channel to

communicate information and

ideas online and drive

awareness.

Design for leveraging

information and relationships

gathered through social efforts

in support of key business

functions.

Design for learning about cause

and effect online. “If I do this,

then that will happen….”

Design for operational scale and

efficiencies using social the

centerpiece of most customer-

facing efforts.

Inte

rnally

focuse

d

Exte

rnally

focuse

d

- Organizational Complexity +

Social Business Behavioral Framework

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While social business performance measurement is in place, it is often disconnected from strategic objectives

Source: The Social Business Benchmark Study – 2013 Preliminary Findings Leader Networks, LLC (co-launched with the Society for New Communications Research - SNCR)



The Marketing Department is most likely to have participated in the development of social media marketing, while key cross-functional stakeholders are most likely to have participated in the development of social business strategy.

Strategic: New Trend – Cross-Functional Stakeholders Are Participating

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• Two thirds of respondents feel that their organization’s social strategy is being executed somewhat well.

• One in six indicate that they do not have a well-articulated strategy.

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Operations: Few Believe Their Social Strategy Is Well Executed



• Collaboration with customers and reach/awareness are the two primary drivers for social strategy, identified by seven in ten respondents.

• Lead generation is also identified as a driver by four in ten respondents.

Operations: Current Drivers Focus On Social Media Marketing

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Social

media

marketing


Copyright © 2013 Leader Networks, LLC 13

Operations: Social Business Performance Measurement In Place, Disconnected from Strategic Objectives



Tools: Current Focus Is On Broadcast Over Listening/Engagement

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• Organizations were stronger in using tools to extend the brand than to engage customers.

18%

22%

16%

29%

22%

16%

33%

40%

56%

42%

73%

76%

69%

11%

18%

18%

22%

22%

22%

27%

29%

38%

40%

49%

53%

58%

Social games

Internal collaboration tools (Yammer)

Social CR platform

Public social content sharing (Pintrest, Flickr)

Participation or sponsorship of onlinecommunity that company does not run

Private label online community platforms(Jive, Telligent)

Company sponsored video channel

Company sponsored online community

Blog platform

Mobile applications

Public selective platforms (Facebook, G+)

Public social networks (Twitter, YouTube)

Public professional social networkingplatforms (LinkedIn)

Which social platforms do your company use?

To engage withcustomers or prospects

To extend the brand



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Organizational Readiness: About Half Of Management Embrace Their Organization’s Social Strategy

Strategies to support management

• Align social strategy with strategic objectives

• Identify business process accelerators that social business could support (e.g. customer support, new product development)

• Follow the pain – look for solutions to evergreen business problems

• Develop strong business driven KPI and performance metrics

• Invest in social education for management (e.g. reverse mentoring programs)



Social Business Performance Snapshot

Source: The Social Business Benchmark Study – 2013 Preliminary Findings Leader Networks, LLC (co-launched with the Society for New Communications Research - SNCR)



OBSTACLES & OPPORTUNITIES FOR SOCIAL BUSINESS FROM THE SOCIALLY ENABLED ENTERPRISE STUDY (2013) AND THE SOCIALLY DRIVEN COLLABORATION STUDY (2013) STUDY DOWNLOAD PREREGISTRATION: HTTP://SOCIALMEDIATODAY.COM/SOCIALLY-ENABLED-ENTERPRISE-WHITEPAPER-SOCBIZRESEARCH-PT1 SLIDES: HTTP://WWW.SLIDESHARE.NET/VDIMAURO/THE-SOCIALLY-ENABLED-ENTERPRISE-RESEARCH-FINDINGS-BRIEF-26213792

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http://socialmediatoday.com/socially-enabled-enterprise-whitepaper-socbizresearch-pt1











http://www.slideshare.net/vdimauro/the-socially-enabled-enterprise-research-findings-brief-26213792


















The Socially Enabled Enterprise Study and The Socially-driven Collaboration Study

Sample composition:

• To understand the socially enabled organization, Oracle commissioned a study of 925 IT and marketing leaders from over 500 organizations around the world in the spring of 2013, gathering insights from over 20 industries and 52 countries.

• The study included firms with more than 100 employees to those with more than 50,000 employees.

• The sample was drawn from a number of sources including Social Media Today subscribers, Oracle customers, and the Society for New Communications Research (SNCR).

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1% 4%

32%

63%Very Important

Important

Neither

Unimportant

Very Unimportant

The majority of organizations strive to be a socially enabled enterprise

Question: How important do you think social enablement will be to successful companies in the future?

Question: How important is it to you that your company be a socially enabled enterprise?

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n=839

Importance of Social Enablement Importance For My Company

n=838

3%

30%

67%Very Important

Important

Neither

Unimportant

Very Unimportant



32%

2%

2%

2%

2%

2%

2%

2%

48%

17%

17%

19%

14%

17%

12%

7%

16%

63%

62%

58%

63%

57%

60%

59%

4%

18%

19%

21%

21%

24%

26%

32%

No change

Increased customer loyalty

Heightened thought leadership position among customers

Stronger connection between customer requirements & the products /services we deliver

Increased customer advocacy

Greater awareness of the customer needs

Closer relationships with existing customers

Increased visibility with prospective customers

Strongly Disagree Disagree Agree Strongly Agree

Social business increases company visibility, enables closer relationships and offers greater awareness of customer needs

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n=varies There is generally consistency among respondents who selected “strongly agree” across responses

Please indicate the degree to which you believe each of these elements

has changed due to your organization's social business initiatives?



Respondents anticipate significant growth in the use of insights gained from social platforms

Question: What does your organization typically do with the insights gathered from its social platform(s)? Select all that apply Question: How do you anticipate these insights will be used in the near future (within the next 12 months)? Select all that apply

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n=829

3%

9%

32%

46%

47%

48%

52%

2%

5%

45%

60%

62%

56%

53%

Other

Do nothing with them

Use them in product development and R&Defforts

Integrate into customer care initiatives

Use them departmentally to impact our goals

Share across departments in hopes they are used

Use them within my department to learninformally

Future Now

What does your organization typically do with the insights gathered from its social platform(s)? Select all that apply



Social business offers the opportunity to collaborate more effectively and a greater awareness of the thought leadership agenda

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n=821

How is your role evolving due to social business? Rank the top three responses



Half of Marketing and IT report that current level of collaboration with each other is “adequate.”

16%

13%

50%

21%

4%

16%

57%

23%

Non-Existent

Poor

Adequate

Excellent

Marketing IT

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How would you classify your current collaboration with Marketing?

How would you classify your current collaboration with IT?



Many who don’t collaborate internally indicate that they see the benefit, but company culture is an obstacle

Question: Why don’t you collaborate well with Marketing? Select all that apply

Question: Why don’t you collaborate well with IT? Select all that apply

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IT N=72

Marketing N=117

26%

7%

10%

29%

31%

21%

17%

5%

34%

47%

Other

I do see the benefit, but my peer(s) don’t welcome it

I don’t see the benefit

I do see the benefit, but neither teamprioritizes it

I do see the benefit, but my company culture doesn’t enable it

Reasons for lack of internal collaboration among those who reported poor or non-existent collaboration

Marketing

IT

Common fill-in responses include:

IT is outsourced, IT doesn’t support social media, IT doesn’t welcome it, No connection between IT and marketing, My

customers are internal

../../../../Documents and Settings/Peter Ward/Local Settings/Temporary Internet Files/OLK1029/Chart 2 in Microsoft Office PowerPoint.xlsx



When IT and Marketing do collaborate, respondents indicate that they are more effective

25

IT N=96

Marketing N = 257

How, if at all, has this change in collaboration impacted your effectiveness as a professional?



Marketing and IT indicate similar benefits to increased collaboration

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IT N=88

Marketing N= 237

What, if any, are the benefits of increased collaboration?

Select top three



THE FUTURE OF SOCIAL BUSINESS

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But, the real opportunity lies in listening to and interacting with the members



Process of Innovation

Research & Development

Pro

du

ct D

evelop

men

t

Product Management

Customer Service

Organic initiatives are based on deep knowledge of the product and / or

service and horizontal and / or

vertical domain expertise…

…which are supplemented by external feedback

based on a variety of interactions across

multiple touch-points with customers.

How might continuous engagement with a

one or more external stakeholders compliment

the process of innovation?

Customers

The process of product and / or service innovation knows no boundaries

Ind

ust

ry

Mar

keti

ng

Distribution Networks



How can we establish a macro perspective for return-on-investment?

ROI = N / D

Source: Competing for the Future Gary Hamel & C.K. Prahalad Harvard Business School Press, 1994

Numerator / Net Income: - Identifying where new opportunities lie - Anticipating changing customers needs - Investing preemptively in building new competencies

Denominator: - Investments - Net assets - Capital employed - People


Copyright © 2013 Leader Networks, LLC Proprietary & Confidential 32 32

1. Product Development collaborates with Community Management to:

- Discuss the current process for identifying problems / issues and new features including off-line venues (e.g. customer service, customer advisory

councils / boards)

- Establish guidelines and process for incorporating insights gathered from the online community initiative

2. Measures of success (e.g. business metrics) are established for identifying problem issues (e.g. quantity, quality) and new features

(e.g. quantity, quality)

3. Insights are gathered by Community Management, per previously agreed upon guidelines, through discussions, polls, surveys, etc.

4. These are then forwarded to Product Development for evaluation and potentially incorporated into the product roadmap

5. Product Development provides feedback to the community membership and outlines next steps

Product Development Product Roadmap Community Management

Problems / Issues

New Features

Potential scenario – continuous product enhancement

1

2

3

3

4

4

5

Cu

rren

t P

roce

ss



Current Target Outcome Delta / ROI

General Metrics

Site Metrics

Business

Metrics

Corporate Objectives

Business / Functional Unit Objectives

Online Community Initiative (Business Case / ROI)

– Financial – Customer – Process – Learning & Growth

Online community metrics should be aligned with business / functional unit and corporate objectives



5 Key Take-Aways

1. Influencers (customers, prospects, suppliers, etc.) are engaging with and about organizations online at an unprecedented level.

2. Influencers (customers, prospects, suppliers, etc.) expect companies to act upon the information shared online, to make changes and adapt accordingly.

3. In order to remain competitive, organizations must go beyond social media marketing to integrate the outcomes of the social experience into their core operations.

4. The greatest (currently overlooked) opportunities for impact are within R&D, customer loyalty, new product / service development.

5. The strongest channel for integrated social business initiatives is online community, but the strategy needs to support/align with the larger organizational strategy with clear metrics and KPIs.

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Thank you!

Questions, comments and keeping the conversation going…

Vanessa DiMauro

CEO & Managing Partner, Leader Networks

617 484 0778

@vdimauro

[email protected]

www.leadernetworks.com

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Social Business Trends

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