dion hinchcliffe

High Impact Social Business:Stories and New PerspectivesDion Hinchcliffe

Social Business Summit 2011 Sydney | High-Impact Social Business

The drivers for next-generation business

• Pervasive global connectivity

• New friction-less interaction platforms

• Next-gen mobility

• Focus on network effects

• Information superabundance

• Inherent transparency, openness, and broadcast

• The rise of social capital

(cc) 2011 Dachis Group. Creative Commons. Some Rights Reserved.


The current customer engagement landscape

Webinars

social networksP2P video

online video

direct mailmobileapps



The marketplace has reinvented itself in the last half decade

Microblogs

BusinessTradingPartners

World Wide WebCustomers + Public

Trust, Engagement, Reputation

The Social Web

Public Social NetworksInteraction and Social Business

E2.0 Workflow

E2.0 Compliance

Community Mgmt Social Web Tech & Standards

Us

B2C

B2B

CustomerCommunities

WorkerOnline

Community

1.5 billion people

Including how, where, and who we interact and do business with



Social As The New Dominant Global Trend

Source: ComScore Global & Morgan Stanley



Mobile Internet Ramping Up Faster Than Desktop Internet by 5x



Hundreds of public social networks...

8...channel fragmentation



Dozens of internal social channels• E-mail• Text messaging• Instant messaging• Meetings and conference calls• Enterprise 2.0• Social CMS• Knowledge management• Intranets• Online communities

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Channel Fragmentation Is Now The Norm

400 social networks with over 1 million users = aggregate audience of about 900 million

2 billion mobile Internet users + 100 millionnext-gen smart phone users across hundreds of device types

Have Become The De Facto Primary Channels for Customer Engagement

+



So Customers Have Moved...

• Mobile • Social• New Digital Channels

And Companies Have Fallen Behind

• Approximately 1 Billion “Digital Natives” Have Migrated In the Last 3 Years



Outdated frameworks and operational strategies often relegate discussions to incremental fixes and piecemeal approaches

Although @ComcastCares has over 10 employees responding in new customer engagement channels like Twitter, they can’t scale.

A proliferation of new social networks and mobile apps are appearing at an increased pace – organizations are falling further behind.

The result – large amounts of waste in fragmented data, customer records, touchpoints, and experiences – leaving companies unable to efficiently reach customers, prospects, and partners.

Companies Know The Problem Will Only Get Worse



Change Keeps Coming: The Rise of Social and Mobile Apps

PepsiCo Digital Chief: “The majority of social interaction will happen via mobile” - Feb 21, 2011



The worldʼs most important channels...



What do new engagement channels really provide?

• Radical reductions in cost of doing business (i.e. 30% reduced support costs)

• Dramatic improvements in customer sat scores

• Real-time response to customer needs & critical situations

• Access to deep pools of innovation

• Revenue growth (increased top-of-line sales and service numbers)

See Case Studies Section


High Impact Social Business Stories

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Origin Stories for Social Business

• Open Source Software (OSS)

•

• The Search for Steve Fossett

• Innocentive

• AOL

• CIA and A-Space

Social Talent Pool +Problem = Innovation



Whatʼs the best way to interact with someone under 30?

• Have a mobile app on their first screen.

• Those under 30 rank text messaging as their #1 form of communicating, followed by Facebook.

• These are the critical and future new channels in which to have deep marketing effectiveness.

• The primary future of marketing will be in “large scale social experiences.”

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How Customer Engagement Is Evolving

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Large Scale Social Experiences



Case Study: HBO

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Where is the social business opportunity in workforce engagement?

• Increased levels of productivity that were inaccessible until now• Enablement of tacit interactions on a previously unknown scale

(Source: McKinsey & Company)

Enterprise 2.0 has the potential to

increase productivity in complex

interactions, where previous attempts have largely failed



The 50 Foot Collaboration Rule• Workers are not likely to

collaborate very often if they are more than 50 feet apart:

• Even with traditional electronic aids such as telephone, e-mail, and remote video

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Surmounting this obstacle is now

possible with socialtechnologies

Take Away:


Significant Social Business Examples

• - 50x ROI in high value scenarios

• - 29% reduction in e-mail volume after making social their primary business channel

• and Atos Origin - Eliminating e-mail entirely while moving to social channels

• Gold Corp - $3.5 billion in value generated through



• Telecommunications giant wanted workers to be much more collaborative (driven by the CEO)

• 77,000 employees scattered across the globe previously using primarily process-focused tools like SharePoint

• Began experimenting with Yammer back in 2008, now over 9,300 workers using it

- Users began reporting benefits: “Yammer saved me three days of trying to find who I should talk to about a problem.'”

• Spent 13 months working on formal E2.0 implementation, which rolled out earlier in 2010 on Jive Software

• Users have been mobilizing and self-organizing, such as sales groups that have created social groups to share best practices and internal techniques

From Greg Lowe, Enterprise 2.0 Lead:

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Human Resource Implications for Social Business• HR is ground zero for internal and external social

media• Example: CHROs we talk to are fielding requests from

employees to create Facebook groups to collaborate

- Primary Cause: Employees are not given basic collab tools in most firms

- One CHRO at a large financial services firm has received over 50 such requests in 2010 alone

• Increasingly, HR is actually getting in the driverʼs seat- Policies

- Guidance and Support

- Professional Development

- “Air Cover”



Social Business in the Workplace



• 1700 executives from around the world across a wide range of industries

• 69 percent of respondents report that their companies have gained measurable business benefits, including:- More innovative products and

services, - More effective marketing and

customer care- Better access to knowledge- Lower cost of doing business- Higher revenues

Source: McKinsey, September 2009

Show Me The Value: Latest B2C ROI findings:



How do we best organize for Social Business?


Cross Border Example: Social CRM



How can we have meaningful conversations with a million customers?

Example:



22® 2010 Dachis Group & Intuit. Confidential and Proprietary

The Rise of Social CRM

• Definition: Better, more effective customer interaction that leverages the collective intelligence of the broader customer community to create significant business value.

• Industry leaders include Lithium, Jive, GetSatisfaction, Salesforce, and a rapidly growing host of other offerings

• Most Social CRM vendors are focusing on a broader range of interaction beyond just Q&A

• Social CRM improves customer satisfaction, drives down costs, and increases innovation and growth Industry Lesson: Most SCRM

implementors will reap a ~30% cost reduction



Intuit and Social CRM

Live Community. 7.5 million social support users per year (over 20 million of social support transactions a year.) Used extensively in multiple product lines in their SMB division.

• Long struggled to use software to compete with live human beings (H&R Block, the previous #1 tax preparer)

– Decided to collaborate with customers to help support their users during an extremely time intensive yearly process: tax season

– New process allowed anyone, either workers or customers, to answer customer support questions in real-time

– Greatly lowered abandonment of the product and make TurboTax the #1 product in the space for the first time

Live Community: Focusing Social Activity on

Customer Engagement Transactions



Mobile Customer Engagement Cases



A new risk: Mobile disintermediation

• Customers want ease, control, speed, and results

• Offerings in a silo or from on perspective are becoming less appealing

• Aggegrators are actively driving disintermediation

• Companies need to move their thinking up a level

• Or there is a good chance they will lose the primary touch point with the customer (re: Google, Apple, PageOnce)



What are the social business imperatives?

• Become digital natives: Invest profoundly in understanding new social business competencies

• Develop engaging social experiences for your workers and customers

• Create high impact social business solutions related to your lines of business

• Reconcile traditional communication, marketing, learning, and HR with social business models

• Experiment while not worrying about succeeding slowly at first

• Design your business for constant change and growing loss of control

New LG Mobile Concept Devices

Thank you

dion hinchcliffe

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