Utilizing Social Media:

Harnessing the Power of Online

Communities for Loyalty and Advocacy

SAP Communities of Innovation

Web Experience Excellence Conference – Frost & SullivanDecember 2009

Mark Yolton, SVP, SAP Community Network

Salim Ali, VP, Enterprise Solution & Community Marketing

1. SAP Communities Overview

2. Leveraging Communities for Enterprise: Case Studies

3. Key Principles

4. Q&A

Agenda

© SAP 2009 / Page 2

Extreme Market Forces Demand Constant

Enterprise Evolution

Collaboration

Speed of Change

Globalization

Business Networks

Consumerization

Reinvention

as a Constant

© SAP 2009 / Page 3

Old ecosystem approach

A few companies dominate

the landscape

One-to-many connections managed

as distinct relationships

Mechanical and linear

New ecosystem approach

Many companies participating in an

extended value chain

Ecosystem of customers, partners,

suppliers, influencers, and others

Organic and interconnected

Dynamic system or business network

Dynamic Ecosystems Enable Adaptability in

an Era of Fundamental Change

© SAP 2009 / Page 4

The SAP Ecosystem – Online

A Vibrant Global Network of Customer-Facing & Partner-Enabling Assets

Customers

SDN

SCN

BPX

BOC

EcoHub

UAC

© SAP 2009 / Page 5

Community Portfolio

Business v. Technical and Companies v. Individuals

Online community-powered

marketplace to discover, evaluate,

and buy partner and SAP

solutions

Common business and

technology standards for

lower-cost integration

Customer-driven SOA

specs for development

and deployment in ESR

IT pros, developers, and enterprise architects

configure, install, run, optimize, innovate on the

SAP NetWeaver platform

Insights on business

intelligence and information

management

Business analysts and

consultants share best

practice business processes

Students and professors

learn, connect,

collaborate

Companies Individuals

Bu

sin

ess

Te

ch

nic

al

University

Alliance

Community

BusinessObjects

Community

Business Process Expert

Community

SAP Developer Network

Standards

and Open Source

SAP EcoHub

Enterprise

Services Community

© SAP 2009 / Page 6

Downloads and ToolsCollaboration Skills DevelopmentContent

SAP’s Online Ecosystem

Connect, Collaborate, Co-innovate

Marketplace

© SAP 2009 / Page 7

The SAP Community Network

A High-Profile SAP Success Story for Innovation & Leadership

Business and IT

Professionals

who work for

Customers, ISVs,

Systems

Integrators,

Consulting Firms,

and SAP

~ 2 million members

> 200 countries and territories

~ 30,000 new members / month

SDN + BPX + BOC + UAC + EcoHub Members

~ 1 million unique visitors / month

> 2 million visits / month

~ 20 million pages viewed / month

Traffic

> 200,000 have contributed

> 70,000 last year alone

> 8,000 highly active – lifetime

> 4,800 bloggersContributors

~ 6,000 posts / day in 200+ forums

> 1.5 million topic threads

> 6 million total messages

> 400,000 bi-weekly newsletter subscribers Momentum

© SAP 2009 / Page 8

3,000

4,000

5,000

6,000

7,000

8,000

9,000

40 46 52 5 11 17 23 29 35 41 47 1 7 13 19 25 31 37 43

Actual

2009

2007-2009 Community Network Statistics

Strong, Consistent, Sustained Growth

Lifetime contributors

20072008

© SAP 2009 / Page 9

Forum and Forum Thread Growth

0

200

400

600

800

1000

1200

1400

1600

0

1

2

3

4

5

6

7

8

41 45 49 53 5 9 15 19 23 27 32 39 44 52 6 10 14 18 22 26 32 36 40

Th

read

s

Messag

es

Messages Threads

Total Community Members

900

1,100

1,300

1,500

1,700

1,900

40 46 52 5 11 17 23 29 35 41 47 1 7 13 19 25 31 37 43

Th

ou

san

ds

Actual

200920072008 2007

2008

2009

400

500

600

700

800

900

1000

40 46 52 5 11 17 23 29 35 41 47 1 7 13 19 25 31 37 43

Th

ou

sa

nd

s

Actual

20072008 2009

Unique Monthly Visitors

~70

SAP Mentors<1/100th of 1%

~8,000

Highly Active

Contributors

~½ of 1%

>70,000

in 2008

Contributors~5%

>200,000

Lifetime

Contributors~10%

~2,000,000

Total

Community

Members

Core Contributors Power the Communities

Recognition, Reputation, Collaboration

© SAP 2009 / Page 10

SAP Mentors Value Community Engagement

Share, Learn, Succeed

– Jon Reed, JonERP.com

I’m more proud of my affiliation with SAP Mentors than just about anything I can

think of. “

“

You build a reputation based on the quality of your content, your expertise, and

by showing that you are active in the communities.”

– Richard Hirsch, Senior Portal and SAP NetWeaver Technology

Platform Consultant, Siemens IT Solutions and Services

“ “

SDN became part of [our] day-to-day activity…[it was] the learning center, the

place to go to…Eventually we all come to realize that with learning, sharing is

also an essential part.

– Shabarish Vijayakumar, Wipro Technologies

“ “

It is a great honor ... to be able to contribute ideas and participate in discussions

with folks from SAP and other mentors via the mentor program. Thanks for the

program and all the support you give to it!

– Julius Bussche, Turnkey Consulting

“ “

© SAP 2009 / Page 11

The SAP Ecosystem and SAP Communities

Are Headline-Grabbing Industry Best Practices

SAP has set the standard — certainly within the tech industry — and offers a good example of the

potential. SAP is one of the leaders in the scale, diversity, and integration of its vast ecosystem.‖

John Hagel and John Seely Brown

How SAP Seeds Innovation

Business Week, July 2008

“

“SAP ranks in the top ten of "the world's most valuable brands based on how they leverage social

media to interact with customers.‖

Charlene Li

The World’s Most Valuable Brands. Who’s Most Engaged? Altimeter, August 2009

Many businesses can create stickiness by building user communities. Every year, … SAP hosts

conferences where customers can meet with IT experts, software developers, and, most important,

each other. These aren’t sales events per se, but you can be sure that attendees leave with a feeling

of partnership with SAP.‖

Jack and Suzy Welch, The Welch Way

Business Week, September 2008

“THE

WELCH WAY

SAP has elevated its community development into an entire practice…it allows the most

dedicated members of its community direct access to senior management to provide feedback on

products, services, and strategy. This is the best way to stay customer-focused and relevant in a

rapidly changing competitive environment.‖

Chris Andrews

Four Components of Successful Innovation, Forrester, April 2009

“

© SAP 2009 / Page 12

SAP TechEd and TechTour 2009

>28,000 attendees in more than 45 worldwide events

APJ:

China

India (2)

Japan

Korea

Taiwan

Tech Tour attendees

APJ ≥ 3,000

EMEA:

Austria

Bahrain

Baltics

Belgium

Bulgaria

Croatia

Czech Republic

France

Greece

Hungary

Israel

Italy

Tech Tour attendees EMEA ≥ 8,000

Netherlands

Poland

Romania

Russia

Slovakia

South Africa (2)

Spain

Switzerland (2)

Turkey

West Baltics

United Arab Emirates

United Kingdom

N. America:(ASUG Chapter Meeting)

Atlanta

Chicago

Minneapolis

TBD

TBD

South America:

Argentina

Brazil

Chile

Columbia (2)

Dominican Republic

Ecuador

Peru

Venezuela

Tech Tour attendees

Americas ≥4 ,000

8,000

12,000

8,000

Bangalore

Shanghai

Vienna

Phoenix

TechEd Events www.sapteched.com

Tech Tour Events www.sapteched.com/techtour

© SAP 2009 / Page 13

SAP Community Network:

Building a Culture of Community

© SAP 2009 / Page 14

CASE STUDIES

Leveraging Communities & Marketplace for Enterprise

© SAP 2009 / Page 15

Harness the Power of Diverse Communities

Across The Business Value Chain

© SAP 2009 / Page 16

MARKET

Heighten

awareness

Leverage

customer

advocacy via

communities

ENGAGE

Solicit user

feedback on

―offerings‖

Test features &

gather product

insight

LISTEN

Gather insights -

on solutions,

policies etc.

Harness

predictive

intelligence

Market & Customer

Insight

Product Definition &

Build

SolutionLaunch &

Awareness

Lead Generation & Acceleration

ACCELERATE

Enhanced lead

generation –

volume & quality

Accelerate deal

velocity

Deploy

Support&

© SAP 2009 / Page 17

Participants

■ New reality:

broader

spectrum in play

full-control to

participate

Approach

■ Leverage viral dimension

harnessing ―viral

connectors”

Potential

■ Gather insights

along build,

market, sell &

support value

chain

■ Leverage SM to

engage

influencers /

buyers / users

Learning

■ New ways to

manage

message

discipline

Framework for Purposeful & Repeatable Orchestration

Community & Marketplace Social Media (CMSM) Marketing Model

■ Impact on

business value

chain – including

marketing

SAPImperative

■ Target audience

segmentation

is preamble;

conversation is

new dimension

■ “User created”

networks with

unfiltered

perspective

Before releasing its new Terms of Use (TOU), SAP Community Network (SCN) undertook an extensive 8 month process of getting input and feedback from a group of top community leaders and experts, the SAP Mentors.

―Before releasing the final version, the SCN team reached out to a group of people called the SAP Mentors, to get their feedback and input on the new Terms of Service. The final version was pushed out to the users on May 27th and it almost went by unnoticed… I didn't hear anyone complain."

Anne Petteroe,

SAP Mentor

SCN gained insight into community concerns: attribution, licensing, and commercialization of the submitted content.

Over 32 weeks, details of the TOU were fine tuned until a consensus was built. The fully vetted SCN TOU was released in May 2009

Implementation of Terms of Use has become a contributing factor to the ongoing growth of SAP Community Network

Market & Customer

Insight

Product Definition &

Build

SolutionLaunch &

Awareness

Lead Generation & Acceleration

SAP Community Network

Terms of Use (TOU) Revision

© SAP 2009 / Page 18

Dan McWeeney

Software Developer

Adobe Systems Inc.

―We talked to a number of SAP

mentors and created a roundtable

about Genesis because it’s really

targeted at enterprise knowledge

workers and we wanted to get their

input early on.‖

Adobe Systems Inc. actively engaged in the SAP® Developer

Network (SDN) and Business Process Expert communities for

early input from its target market on a proof of concept for

Project Genesis, a desktop application for enterprise knowledge

workers built on Adobe AIR.

Adobe created a wiki on SDN to gather

specific feedback from community

members and to answer questions on

the project’s direction

Adobe will now launch a product pre-

tested with the community, increasing

sales potential and end-customer

satisfaction

Armed with feedback on product usage

in various verticals, Adobe developers

can now resolve key integration issues

in advance

Adobe Leverages

Communities in Product

Development

Market & Customer

Insight

Product Definition &

Build

SolutionLaunch &

Awareness

Lead Generation & Acceleration

© SAP 2009 / Page 19

1 Pre Launch: Build BS7 area on BPX

Launch: Twitter and Facebook

- #BS7 hashtag Top Ten Topic on

2/4/09; 30K Followers

- Mentors at live event in NYC

tweeting; Blogs feed Twitter,

Twitter feeds Facebook

Launch: Third Party Blogs

- Cap Gemini CIO, ZDNet, D.Howlett

2 Launch: Promote to 1.8M SCN

members - features, blogs, wikis,

forums, articles, NL AND sap.com

- SCN home page feature

- 44 Blogs (15 from partners; and 34

comments)

- BPX Newsletter (Feb) with 300,000

subscribers

3

4

5 Nurturing: Long Term Conversations

- Q2 ’09 SCN metrics: # views of blogs

tagged with BS7; # BS7 items; # home

page views; # wiki items; # forum items

BS7

Launch

4

2

1

5

3

3

© SAP 2009 / Page 20

Market & Customer

Insight

Product Definition &

Build

SolutionLaunch &

Awareness

Lead Generation & Acceleration

Enhancing SAP Business

Suite 7 Launch

IFRS

2 Create buzz; community adds

contributions (blogs, articles, etc.)

1 Initiate & seed creation of IFRS

content on SDN & BPX sites

3-part webinar series generated thousands

of registrations and attendees (record

breaking)

Leveraged user-generated content and

expertise

―Always-on‖ and Continuous nurturing via

rich interaction on SAP Communities

Promote on social networks

(LinkedIn , Facebook, etc.)

& external community hubs

(SAP Insider)

4

2

31

4

© SAP 2009 / Page 21

5 Follow up IFRS Webinar series

with Deloitte

5

Market & Customer

Insight

Product Definition &

Build

SolutionLaunch &

Awareness

Lead Generation & Acceleration

3 Craft IFRS Webinar Series hosted

with Landing & Registration

Pages on SAP EcoHub

6 Sustain momentum via

continuous nurturing of topic

forums

6

4

Lead Generation for ERP

Financials and Enterprise Perf

Mgmt with SAP & Deloitte

© SAP 2009 / Page 22

Community & “Social Media Aware” Marketing

Program & Campaign Design

“Traditional” Marketing Program / Campaign Model

Marketing Objective &

KPITarget Message & Offer Execute & Measure

SAPImperative

Marketing

Objective &

KPI

Target

Message &

Offer

Execute &

Measure

Expand audience coverage to include appropriate SAP

Communities and external Social Media extensions

Enhance segmentation beyond Audience to relevant

―conversation heat maps‖ (with mixed audience)

New Dimensions

Craft message to accommodate multiple profiles i.e.

Technical in SDN, mixed in Facebook group etc

Enhance Offers than can leverage viral nature of

Communities and Social Media Extensions

Decide on impact of continuous engagement / nurturing

as an implicit KPI given Communities and Social media

“Community & Social Media Aware” Marketing Program / Campaign Model

Architect ―sequenced execution‖ starting from center

(communities) and expanding outward (to SM etc)

Monitor viral pathways to asses viral connectors i.e.

who is retweeting, tagging as ―like‖ or sharing on FB

Map & Measure ―viral pathway‖ impact on awareness,

activities, leads or any other KPI

e.g. Think beyond classic audience segmentation …

Think “conversation segmentation”

How far & deep do we want the impact?

e.g. Harness power of communities & social media …

Leverage “viral connectors”

Product Management, Marketing, GTM, Sales …

Potential to “significantly evolve”

© SAP 2009 / Page 23

Mark Yolton

Senior Vice President

SAP Community Network

T 650-687-4656

E mark.yolton@sap.com

Thank You!

http://scn.sap.com

© SAP 2009 / Page 24

Salim Ali

Vice President

SAP Community Marketing

T 650-320-3240

E salim.ali@sap.com

31 © SAP 2008 – SAP CPS Overview

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