Climb the Social Business Hierarchy of Needs: LeWeb Keynote, 2011

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1 LeWeb Keynote, 2011 December 8, 2011 Jeremiah Owyang Industry Analyst and Partner Climb the Social Business Hierarchy of Needs

Transcript of Climb the Social Business Hierarchy of Needs: LeWeb Keynote, 2011

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LeWeb Keynote, 2011 December 8, 2011

Jeremiah OwyangIndustry Analyst and Partner

Climb the Social Business Hierarchy of Needs

© 2011 Altimeter Group

2Image by pilotsofswiss used with Attribution as directed by Creative Commons http://www.flickr.com/photos/pilotsofswiss/5198554176

© 2011 Altimeter Group

3Image by compacflt used with Attribution as directed by Creative Commons http://www.flickr.com/photos/compacflt/5310939930

© 2011 Altimeter Group

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© 2011 Altimeter Group

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“How Advanced Companies Prepare Internally”

Based on:

• 63 interviews and briefings with corporate practitioners and technology providers

• 144 survey respondents at companies with more than 1000 employees

• Analysis of 50 Social Media case studies around crises

Open Research: Social Business Readiness

© 2011 Altimeter Group

Programs are nascent, lacking long-term direction

Data from Q4, 2010

© 2011 Altimeter Group

Companies are averaging an overwhelming number of corporate owned accounts“Approximately how many official social accounts exist across the entire company, including all business units, products, or regions? (best estimate)”

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Platform Average # accounts

Twitter 39.2

Blog 31.9

Facebook 29.9

LinkedIn 28.8

Forum/Message Board/Communities 23.4

YouTube 9.4

Foursquare 6.3

All others 5.3

Flickr 3.8

Gowalla 0.3

Sum 178Source: Survey for Social Media Program Managers, conducted by Altimeter Group (Q1-Q2 2011)

140 respondents, all over 1000 employees

© 2011 Altimeter Group

Integrating Social on Websites lack Strategy

© 2011 Altimeter Group

Social Media Crises are on the Rise9

© 2011 Altimeter Group

Creative Commons Licensed http://www.flickr.com/photos/moran/1604096255/

Companies falling into Social Sanitation10

© 2011 Altimeter Group

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Focus: climb the

Social Business Hierarchy of Needs

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Maslow paved the way12

© 2011 Altimeter Group

Climb the Social Business Hierarchy of Needs

“Social Business Readiness: How Advanced Companies Prepare Internally,” Altimeter Group, (August 31, 2011)

Available at for download at: http://www.altimetergroup.com/research/reports

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Empowerment, Cross-Learning, Measurement

Asset Inventory, Best Practice Sharing, Center of Excellence

Dedicated Team, Workflow, Crises Preparedness

Objectives, Policies, Education, Access

Holistic, Real-timePredictive

Foundation

Safety

Formation

Enablement

Enlightenment

© 2011 Altimeter Group

Climb the Social Business Hierarchy of Needs

“Social Business Readiness: How Advanced Companies Prepare Internally,” Altimeter Group (August 31, 2011)

Available at for download at: http://www.altimetergroup.com/research/reports

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Empowerment, Cross-Learning, Measurement

Asset Inventory, Best Practice Sharing, Center of Excellence

Dedicated Team, Workflow, Crises Preparedness

Objectives, Policies, Education, Access

Holistic, Real-timePredictive

Foundation

Safety

Formation

Enablement

Enlightenment

© 2011 Altimeter Group

Education is Required: at a Minimum to Distribute Policies and Ensure ConsistencyWould you agree that your company’s employees know how to represent the company in social media (what is allowed, not allowed)?

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Source: Survey for Social Media Program Managers, conducted by Altimeter Group (Q1-Q2 2011)

144 respondents, all over 1000 employees

© 2011 Altimeter Group

Dell created a Social Media and Community (SMaC) Program to Train Internal Stakeholders

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Dell hosts internal “unconferences” and created a social media

university. In 9 weeks, it trained 1500 employees face to face on

topics like governance, policy, and best practices.

© 2011 Altimeter Group

Define expectations for associates with an internal Social Media Policy

Examples of Social Media Guidelines created by Intel and Cisco’s Centers of Excellence

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© 2011 Altimeter Group

Climb the Social Business Hierarchy of Needs

“Social Business Readiness: How Advanced Companies Prepare Internally,” Altimeter Group, (August 31, 2011)

Available at for download at: http://www.altimetergroup.com/research/reports

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Empowerment, Cross-Learning, Measurement

Asset Inventory, Best Practice Sharing, Center of Excellence

Dedicated Team, Workflow, Crises Preparedness

Objectives, Policies, Education, Access

Holistic, Real-timePredictive

Foundation

Safety

Formation

Enablement

Enlightenment

© 2011 Altimeter Group

DECENTRALIZED

- Organic growth- Authentic- Experimental- Not coordinated- e.g. Sun

© 2011 Altimeter Group

- One department controls all efforts- Consistent- May not be as authentic- e.g. Ford

CENTRALIZED

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HUB AND SPOKE

- One hub sets rules and procedures- Business units undertake own efforts- Spreads widely around the org- Takes time- e.g. Red Cross

© 2011 Altimeter Group

MULTIPLE HUB AND SPOKE OR “DANDELION”

- Similar to Hub and Spoke but across multiple brands and units

- e.g. HP

© 2011 Altimeter Group

HOLISTIC OR “HONEYCOMB”

- Each employee is empowered- Unlike Organic, employees are organized- e.g. Dell, Zappos, Intel, Best Buy

© 2011 Altimeter Group

The Composition of a Social Media Team

Base: 144 global corporate social media program managers at companies with over 1000 employees

Source: “Social Business Readiness: How Advanced Companies Prepare Internally” (August 31, 2011)

Average Size of a Corporate Social Media Team: 11

© 2011 Altimeter Group

H&R Block models response and engagement

Source: David Armano, Edelman (http://www.flickr.com/photos/7855449@N02/5042953763)

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© 2011 Altimeter Group

FireBell simulates social media crises in a safe environment

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Weber Shandwick offers FireBell a private crises simulation tool enabling

brands to practice in real time in safe environment.

© 2011 Altimeter Group

Climb the Social Business Hierarchy of Needs

“Social Business Readiness: How Advanced Companies Prepare Internally,” Altimeter Group, August 31, 2011

Available at for download at: http://www.altimetergroup.com/research/reports

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Empowerment, Cross-Learning, Measurement

Asset Inventory, Best Practice Sharing, Center of Excellence

Dedicated Team, Workflow, Crises Preparedness

Objectives, Policies, Education, Access

Holistic, Real-timePredictive

Foundation

Safety

Formation

Enablement

Enlightenment

© 2011 Altimeter Group

Companies are averaging an overwhelming number of corporate owned accounts“Approximately how many official social accounts exist across the entire company, including all business units, products, or regions? (best estimate)”

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Platform Average # accounts

Twitter 39.2

Blog 31.9

Facebook 29.9

LinkedIn 28.8

Forum/Message Board/Communities 23.4

YouTube 9.4

Foursquare 6.3

All others 5.3

Flickr 3.8

Gowalla 0.3

Sum 178Source: Survey for Social Media Program Managers, conducted by Altimeter Group (Q1-Q2 2011)

140 respondents, all over 1000 employees

© 2011 Altimeter Group

Four Seasons Hotels have hundreds of individual Facebook and Twitter accounts – global and local

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© 2011 Altimeter Group

Panasonic lists official accounts worldwide – each of six region has many accounts, plus global accounts

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© 2011 Altimeter Group

2,500 employee have about 13 employees publishing

7,500 employees have about 22 employees publishing

30k employees have about 83 employees publishing

75,000 employees have about 182 employees publishing

100k plus average have about 280 employees publishing

On average, 1 out of 330 employees publishes on social media for business.

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Source: Survey for Social Media Program Managers, conducted by Altimeter Group (Q1-Q2 2011)

140 respondents, all over 1000 employees

© 2011 Altimeter Group

Climb the Social Business Hierarchy of Needs

“Social Business Readiness: How Advanced Companies Prepare Internally,” Altimeter Group, August 31, 2011

Available at for download at: http://www.altimetergroup.com/research/reports

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Empowerment, Cross-Learning, Measurement

Asset Inventory, Best Practice Sharing, Center of Excellence

Dedicated Team, Workflow, Crises Preparedness

Objectives, Policies, Education, Access

Holistic, Real-timePredictive

Foundation

Safety

Formation

Enablement

Enlightenment

© 2011 Altimeter Group

Only the Most Advanced Companies are Conducting Social Business Holistically, Beyond Individual SilosWould you agree that your social media strategy is embedded across corporate functions (e.g. Marketing, Sales, Support, Product, etc.)?

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Source: Survey for Social Media Program Managers, conducted by Altimeter Group (Q1-Q2 2011)

143 respondents, all over 1000 employees

© 2011 Altimeter Group

Cisco empowers employees with self-serve hub34

Source: Petra Neiger, “Cisco’s Social Media Organization and Case Studies,” 2010

© 2011 Altimeter Group

Salesforce rewards Chatteratti35

© 2011 Altimeter Group

Climb the Social Business Hierarchy of Needs

“Social Business Readiness: How Advanced Companies Prepare Internally,” Altimeter Group, August 31, 2011

Available at for download at: http://www.altimetergroup.com/research/reports

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Empowerment, Cross-Learning, Measurement

Asset Inventory, Best Practice Sharing, Center of Excellence

Dedicated Team, Workflow, Crises Preparedness

Objectives, Policies, Education, Access

Holistic, Real-timePredictive

Foundation

Safety

Formation

Enablement

Enlightenment

© 2011 Altimeter Group

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SoLoMo Fuels the Predictive Business

© 2011 Altimeter Group

Only the Most Advanced Companies Are Integrating Social Data into Customer DatabasesDo you have a process to record and integrate data from social interactions with customers into existing customer databases?

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Source: Survey for Social Media Program Managers, conducted by Altimeter Group (Q1-Q2 2011)

143 respondents, all over 1000 employees

© 2011 Altimeter Group

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HOLISTIC OR “HONEYCOMB”

- Each employee is empowered- Unlike Organic, employees are organized- e.g. Twelpforce, Zappos

© 2011 Altimeter Group

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Starbucks learns about loyal customers in-store

© 2011 Altimeter Group

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P&G is Making Outside-In Innovation Increasingly Public and Social

“We are interested in collaborating with innovators in areas such as packaging, design, distribution, business models, marketing models, consumer research methods, trademark licensing, technology, and new products or services” – Bruce Brown, CTO, P&G

© 2011 Altimeter Group

Modeled After it’s IdeaStorm, Dell Created EmployeeStorm for Employee Innovation

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Employee Storm has received over 4,100 ideas with 225,000 votes and 18,500 comments

© 2011 Altimeter Group

1. Foundation: First, develop a business plan and put governance in place.

2. Safety: Then, get organized by anointing a team and process to deal with crises.

3. Formation: Next, connect business units to increase coordination and reduce duplication.

4. Enablement: Grow by letting them prosper – give business units the support and flexibility to reach goals.

5. Enlightenment: Finally, weave real-time market response fueling the predictive business.

Pragmatic Next Steps43

© 2011 Altimeter Group

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Slides at: Web-Strategist.com

Research Team

Jeremiah Owyang

Christine Tran

Andrew Jones

© 2011 Altimeter Group

Climb the Social Business Hierarchy of Needs

“Social Business Readiness: How Advanced Companies Prepare Internally,” Altimeter Group, (August 31, 2011)

Available at for download at: http://www.altimetergroup.com/research/reports

45

Empowerment, Cross-Learning, Measurement

Asset Inventory, Best Practice Sharing, Center of Excellence

Dedicated Team, Workflow, Crises Preparedness

Objectives, Policies, Education, Access

Holistic, Real-timePredictive

Foundation

Safety

Formation

Enablement

Enlightenment