Back to the Future >> Social Business Design

Minnesota Ad Federation
Social Business 9/22/10

Dachis Group | Minnesota AdFed 2010

® 2010 Dachis Group. All Rights Reserved 2

Puppy.

® 2010 Dachis Group. Conﬁdential and Proprietary 3


15 Years ago we thought we were about to embark
on a revolution to pioneer a new way of doing
business.



We Passionately Believed that we could
fundamentally change the world of commerce,
communications, and culture.



Everything that could be digital...would be.
Because it would be faster, better and cheaper.



“In the digital world, User Experience is the
key deﬁner of value”



Exciting times



We created a methodology, a lexicon, and an entire
industry around making valuable digital user
experiences.



Interesting times



Change


Inescapable Trends



Our world is truly getting wired

Source: Nielsen



The wires are getting faster

Source: Pew Internet & American Life Project, July 2008



IT consumerization is upon us



Consumer web apps proliferate



We buy supercomputers at the mall

Source: Apple



And provide access to everyone...

Source: One Laptop Per Child



We share opinions on everything

Source: antigone78 on Flickr



OMG



Cloud computing is a reality



Work demands an “always on” mentality



Social technologies keep us informed

Source: McKinsey & Company


But not so fast...

® 2010 Dachis Group. Conﬁdential and Proprietary


Work still happens in silos



We have endless point solutions not platforms



Businesses are overloaded with data



Consumers are increasingly skeptical

Source: Edelman



Participation isnʼt scalable...



...because individuals donʼt scale



People are people

Source: CarbonNYC on Flickr



Communication remains largely unidirectional



How will you govern?

Source: Ambidanze on Flickr


What policies do you have in place?



While the shape of the business world has changed...



Most Business Technology Systems, Business
Process, and Business Cultures have not yet
adapted...

40


We have all been there.



Weʼre moving beyond the industrial economyʼs limits.
We live in a networked economy. We need a network
centric organizational model to realize its potential.

dachisgroup.com



A shift towards social business

New distributed, collaborative, and agile organizations are able to surpass
current barriers to growth in order to create new value



Social Business
Huge Opportunities, Enormous Challenges
• Inescapable trends in society, the workplace and
technology
• Inherent tension between the past and future
• Shift is happening across all facets of business.
This is not about media or marketing
• Fundamental change required in systems, process
and culture
• Every single company will undergo some form of
transformation to accommodate
• Companies that donʼt embrace change and adapt
are at a severe competitive disadvantage
• New distributed, collaborative, and agile
organizations will be able to surpass current
barriers to growth in order to create new value

Social Business Design
A Conceptual Framework and Set of Lenses
for a Network Centric Organizational Model


Social Business Summit 2010 LONDON | Social Business Design | March 18, 2010

The deﬁnition of Social Business Design

• Social Business Design is the
intentional creation of socially
calibrated and dynamic business
systems, process and culture.



The deﬁnition of Social Business Design

• The Goal: Enhanced value
exchange among constituents
delivering improved and
emergent business outcomes



Business is made of Technology, People, and Process

support
content ecosystem
services
commerce ecosystem

developer application
ecosystem ecosystem

cloud services

products
supply chain ecosystem



The shape of the business has fundamentally changed.
Businesses need to address value exchange with all
constituents wherever they are.

49


Four Archetypes for Social Business Design.
Building blocks and vocabulary.



Ecosystem (connection systems)
- An expanded constituent
base including core and
extended
- A robust, integrated network
of nodes and connections
- A holistic technology
architecture dachisgroup.com

- Strong and weak ties
- Active and ambient
awareness
From Disparate Silos To Connected Nodes


Ecosystem
Extended

Core



A network of nodes and connections

Source: ethorson on Flickr



Hivemind (culture)

- A primary social calibration
- Active Participation
- Active Engagment
- Active Involvement
dachisgroup.com



A primary social calibration

Source: Larry Tomlinson on Flickr



Dynamic signal (communication process)

- Dynamic real time signals
of all nodes in the dachisgroup.com

ecosystem
- A change in the mode of
authorship
- Updates on location
- Creates efﬁciencies



Metafilter (filter, measure)

- Filter, tag sort dachisgroup.com

- Define constructs for
measurement
- Measure patterns not
counts
- Depth over surface
- Trends versus snapshots
- Analyzing for meaning
From Filter Failure To Clear Signals
“Finding meaning in all the noise”


Social business design applied



Why Social Business Design?

Improved
= &
+ Emergent
Outcomes

•Adaptable business practices •Cost savings and efﬁciencies

•Improved collaborative processes •Informed social marketing strategies

•Customer growth, retention and sustainability •New product & service offerings/innovations

•Expansion into new markets



Social Business

All of the web is becoming social
All business is done on the web
All business will be Social Business

Beyond inﬂuence and media, the real
opportunities lie in creating a more
connected, collaborative, dynamic and
participatory business.
Social Business


All of the web is becoming social-
The media communications landscape has shifted
Connect, Share, Participate and Engage Social Graph

Data Connections
User Proﬁles
Photos
Video
Blogging
Location
Status

Individuals



All business is increasingly done on the web-
The business landscape is shifting too
Connect, Collaborate, Engage and Transact Business Graph

Ecommerce
Collaboration
Data Data
Marketplaces
Advertising
EDI
Suppliers Employees Customers Transactions
ERP
Knowledge Mgmt.
Human Resources
Travel
Shipping
Logistics



All business is Social Business
Social Graph + Business Graph

Individuals Individuals Individuals

Connect, Connect,
Share, Collaborate,
Participate Engage and
and Engage Transact
Suppliers Employees Customers

SSC E2.0 SCRM SMM

Social Business Graph



The Social Business
Where are opportunities?

Corporate Leadership,
Customers Partners &
Management and
Suppliers
Workforce

SMM SCRM E 2.0 SSC
Social Media
Social CRM Enterprise 2.0 Social Supply Chain
Marketing
• Twitter Campaign • Community Mgmt
• Afﬁnity Communities • Listening • Collaboration
• On-boarding
• Facebook Fan-page • Customer Support • Micro-blogging
• Compliance
• Blogger Outreach • Communities • Knowledge Mgmt
• Collaborative SCEM
• Social Coupon • Network CSR • BPM
• SC Social Networking
• Ratings and Reviews • Expert Discovery
• Marketplaces


Modes of Social Business
Adoption Operationalize Strategic
Enable Aggregate Synthesize
Interrupt Integrate Analyze
Connect
Listen
Engage Strategic
Participate
Inﬂuence +
Collaborate
Operationalize Operationalize

+ +
Adoption Adoption Adoption



Dachis Group- Representative Clients



Financial Services
Social Business Strategy
Situation:
Today's pre-eminent ﬁnancial services company with 350,000 employees who manage
200 million customer accounts across six continents in more than 100 countries.
“Social” initiatives at have been executed mostly under the radar and mostly lacking
centralized coordination.
Project:
Develop an actionable social business strategy to help coordinate resources and
leapfrog its competition.
Approach: Focus on three areas to formulate a social business strategy:
Social Media Landscape: Used customer survey data and brand monitoring outputs to
create segmented perspectives on customer participation.
Competitive and Best Practices Assessment: Analyzed competition across social
platforms and best practices within and external to industry.
Organization Design: Interviewed over 50 employees and surveyed large and complex
organizations to determine ideal structure including social processes, stafﬁng, and
decision rights.
Results:
Created a vision statement for the bank along with a 24-month roadmap to outline how
social initiatives should be rolled out to achieve competitive success.



Client example: Social Business Strategy
Citibank Interim Deliverable | February 2010

Assessment of todayʼs social media approach
Early days
Manual
processes

Expectations to get social
media right the ﬁrst time
with little tolerance for error
Perception that risks in Twitter Servicing is
social media are greater only launched initiative
than rewards with process and
guidelines for
evaluating response
and responding directly
to customer complaints

Lack methods for capturing
social analytics and integrating No procedures for proactive
into Web analytics for engagement
complete customer proﬁle Limited engagement for blogs,
Lack of understanding for forums and social campaigns
social media value and how to
measure social activities





Social Business Strategy Decision rights framework
• CMO Social Media Team:
Citibank Interim Deliverable | February 2010 - Provides guidance and support for business partner social initiatives (strategy, training, resources,
governance)
-
Suggested Social Reporting Network Accountable for business partner adherence to corporate Digital Guidelines

• Global Communications Social Media Panel:
- Consulted on naming conventions, branding and external communications
• Compliance & Legal, Risk, IT, HR:
- Consulted on social media initiatives based on specific expertise (technology requirements,
Citibank Interim Deliverable | February 2010 regulations)

• Business owners:
How should Citi organize for social? - Accountable for business unitʼs social media budget, resources, and execution of initiatives
Community
Manager • Brand marketers:
• CMO Social Media team should
- Responsible for adhering to corporate social media guidelines, budget and resources
provide central governance and Centralized Support PR, Media, Investor
Relations
support to businesses and be - Responsible for managing people, processes, and technologies applied in social media efforts to
responsible for coordinating efforts Shared Responsibilities achieve business objectives
Future state Citi All participants are trained and informed
Social Servicing
Strategist • social governance model
• Responsibilities for social initiative
execution should be shared in each Listening
Social
business unit Business Strategist Cards
® 2010 Dachis Group. Confidential and Proprietary
Retail
244

Strategist
• Business owners should be
accountable for social media R R
A Global Comm Social Media Panel, A
activities within their line of business CMO Social Compliance and Legal, Risk
Media Team C S
Community Community Community
• Business owners should be Manager Manager Manager
measured on social media success in
® 2010 Dachis Group. Confidential and Proprietary Cards Retail Wealth
246 CMO Social
Management
order to commit to executing social Strategist and
media initiatives Team
RS
• Corporate functions (IT, Compliance
and Legal, Risk) should be more Key: IT, BISO, HR
supportive of business partner social TM Traditional Marketing DM Digital
A C S A
Marketing SM Social Media PR Public
engagement initiatives Relations C Corporate Marketing/ R R
Communications
Mortgage Wealth Management

I
Legend: R = Responsible, A= Accountable, S=Supportive, C= Consulted, I = Informed



Higher Education
Situation:
The parent of eight higher learning institutions in North America. Through these
organizations, the company endeavors to provide applications-oriented undergraduate
education that includes a well-designed general education component to broaden
student learning and strengthen long-term personal and career potential. Various
brands have experimented with social media on an ad-hoc basis; as a holding
company, they needed a strategy to coordinate efforts toward success.
Project:
Design strategy through which the company could support its constituent
organizations in operationalizing social business strategies, tools and programs.
Approach:
Developed a comprehensive strategy to organize for social effectiveness; create
governance to manage social engagement and risk; identify future social media
interaction opportunities; and, support student learning through innovation.
Results:
Formulated a strategy applicable across brands, outlining a realistic approach to
organization for social business and the corresponding, programs, and processes.



Software
Social Servicing
Situation:
The nation’s leading tax preparation software, with over 20 million customers.
Professionals were active in social media on an individual basis, but the company
needed assistance to construct a coordinated approach to social servicing,
specifically utilizing Twitter.
Project:
Assist in establishing a multi-tenanted customer service initiative for social media.
The initiative would enable registered company representatives to participate in
discussions aggregated under an official company account.
Approach:
Interview key stakeholders to define requirements and create cross-functional buy-in.
In addition, Conduct extensive research of brands with mature Twitter presences to
inform creation of program design.
Results:
After creating the program, firm was asked to help implement as well. By the end of
the first tax season where the program was operating, employee participation
increased from six to 40 personnel. Based on customer feedback, the company also
achieved a 71% likelihood of customers to recommend, pointing to bottom-line
impact.



Social Servicing



Multi Brand International Cosmetics
Social Business Advisory
Situation:
The company are leaders in making the world a more beautiful place via its 29 brands
offering luxury skin care, makeup, fragrance, and haircare products. The company
embarked on a corporate marketing reorganization and required guidance on where to
integrate social constructs.
Project:
Audit and augment social business strategy, leveraging our industry expertise and
knowledge of best practices and organizational challenges of companies facing similar
issues.
Approach:
Working closely with company’s digital task force, created an overarching cultural change
framework for social initiatives. Within this framework, multiple deliverables provided
guidance on how to structure and operationalize social business initiatives.
Results:
The company’s digital task force delivered a robust recommendation set to its executive
sponsor, including guidance on community management, cultural change, collaboration
tools, education and training, listening and crisis response, social media policy, and global
social network usage.



Social Business Advisory



Large Beverage Company
Social Business Education
Situation:
The world’s largest beverage company and one of the world’s most loved brands and as a
marketing innovator, the company recognized that social media marketing has become a
critical component to communicating with today’s consumer and has already been utilizing
social media channels in local markets around the world. However, the social media space
shifts rapidly and the company needed assistance to prepare its personnel for the changes
in the operating environment.
Project:
Produce a Social Media Marketing (SMM) training course that highlights what is going on in
the social space, how consumers and brands are connecting, how brands are having
success through SMM, how companies should be measuring SMM, and more.
Approach:
Drew on its personal and professional expertise in social media to develop a training course
with seven modules that could be customized for local markets and updated as the market
evolves.
Results:
Produced materials for both in-person and eLearning delivery to address the client’s need
for course scalability. Presented the materials at company headquarters to train internal
trainers who would be able to redeliver the course to 40 regions worldwide.



I still passionately believe that we can have a
profound effect on the world of commerce,
communications, and culture.



Today we continue to deﬁne a new way of
doing business


:)


Thanks.

@jeffdachis


Dachis Group
Minnesota Ad Federation 2010
Dachis Group
515 Congress Avenue, Suite 2420
Austin, Texas 78701
512-275-7825

Jeff@dachisgroup.com
@jeffdachis

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