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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
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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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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
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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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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?
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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
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“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)
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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
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• 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
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Operations: Social Business Performance Measurement In Place, Disconnected from Strategic Objectives
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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)
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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)
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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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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
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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?
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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
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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
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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?
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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
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When IT and Marketing do collaborate, respondents indicate that they are more effective
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IT N=96
Marketing N = 257
How, if at all, has this change in collaboration impacted your effectiveness as a professional?
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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
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THE FUTURE OF SOCIAL BUSINESS
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For many companies, social media means using
a digital megaphone.
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But, the real opportunity lies in listening to and interacting with the members
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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
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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
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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
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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
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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
www.leadernetworks.com
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