1. Leadership Implications
of Digital and Social
Media in the Enterprise
Dr. Augustine Fou
http://www.linkedin.com/in/augustinefou
January 19, 2013.
January 19, 2013. 1

2. Agenda
• 50,000 ft view of how digital has changed the
business landscape
• Examples of digital marketing and social media
• Leadership implications for modern enterprises
January 19, 2013. 2

3. Some Context:
Technology Enablement
January 19, 2013. 3

4. From No Internet to Internet
Source: Mary Meeker, KPCB, December 2012
-4- Augustine Fou

5. From Desktops to Laptops
Tablets almost caught
up to Desktops
Consumer sales of PCs and tablets
Source: NPD, Morgan Stanley Research
Percent of PC Shipments – Desktop vs. Portable
Source: IDC Worldwide quarterly PC Tracker
65% Laptops
-5- Augustine Fou

6. From Landlines to Mobile
Source: Mary Meeker, KPCB, December 2012
-6- Augustine Fou

7. No Search to Searchable
Source: Mary Meeker, KPCB, December 2012
-7- Augustine Fou

8. Software to Apps
Packaged
software
100’s of titles hundreds of 1000’s of apps
-8- Augustine Fou

9. Personalization/Customization
personalized
photo products 3D printing
e-greeting cards
1990’s 2000’s 2010’s
-9- Augustine Fou

10. How Digital has
Changed the Landscape
January 19, 2013. 10

11. The Grand Digital Canyon
Traditional Digital
• TV • Search
• Print • Social
• Radio • Mobile
• Video
Metric: Metric:
Size of Actions of
Audience Users
- 11 - Augustine Fou

12. The Evolution of Media
Always on
Always informed
Always connected
banner ads search ads
One-way Media Two-way Media Many-Way Media
- 12 - Augustine Fou

13. The Evolution of Users
PUSH PULL
• Direct marketing People ignore “interruption media” and
• Email marketing only pay attention to information they are
• Online marketing seeking. (“Purple Cow” by Seth Godin)
• Sports marketing
• Word of mouth marketing
• Guerrilla marketing
• Blog marketing
• Event marketing
• Product placement
• In-game marketing
• Sponsorships
Advertisers push message out Users do their own research
- 13 - Augustine Fou

14. User Habit: “search”
2005 2009
Most modern users look
no further than page 1
Page 1
… if they can’t find you, you don’t exist
- 14 - Augustine Fou

15. User Expectation: “now”
Screen shots of how websites appear on Blackberries
GSK.com Novartis.com
… if they can’t find you right now, they’ll leave.
- 15 - Augustine Fou

16. Empowered customers…
• Research products online
• Find information via search
• Trust peers most, ads least
Source: Forrester Research Q3 2010
- 16 - Augustine Fou

17. Advertisers can no longer…
… just shout their ads at people.
- 17 - Augustine Fou

18. Pitching AND Catching
Instead of …
Traditional Digital
VS
Metric: Metric:
Size of Actions of
Audience Users
Pitching + Catching
- 18 - Augustine Fou

19. Harvesting Demand
via Search Insights
January 19, 2013. 19

20. Godiva - Demand Planning
See when users search for which products
chocolate covered strawberries (Valentine’s)
chocolate covered cherries (Christmas)
- 20 - Augustine Fou

21. Purell Sales Driven by H1N1
Purell demand and
search volume lifted
swine flu swine flu drove 1st peak
h1n1 h1n1 drove 2nd peak
21
- 21 - Augustine Fou

22. Abbott – Selecting Words
Search volume and related search provides insights to select optimal
keywords to use on websites.
- 22 - Augustine Fou

23. User Self-Segmentation
The exact words users use to search indicates who they are
Physician Nurse Patient
“orexin “dosage”
“sleep
receptor “how to drug”
agonist” administer”
- 23 - Augustine Fou

24. Focus on Social
Actions
January 19, 2013. 24

25. Venues come and go
friendster
facebook (red)
vs
myspace myspace (blue)
facebook
January 19, 2013. 25

26. Action: Create
Collaborative Encyclopedia
Wikipedia
January 19, 2013. 26

27. Action: Curate
Social News
Digg.com
January 19, 2013. 27

28. Action: Filter
Social Bookmarking
Delicious Bookmarks
January 19, 2013. 28

29. Action: Prioritize
Reviews and Ratings
January 19, 2013. 29

30. Action: Share, Discuss
Social Networks
LinkedIn.com Facebook.com
January 19, 2013. 30

31. JetBlue, BestBuy
• 1.3M Followers
• Customer Service /
Announcements
• Just-in-Time Info
January 19, 2013. 31

32. Starbucks
Leveraged the community to source and prioritize ideas.
January 19, 2013. 32

33. Netflix (b2c)
Leveraged their Facebook fan base (1.6M) to do continuous customer
research by asking questions and posting useful content.
January 19, 2013. 33

34. American Express
Helping small businesses market themselves; improve operations; learn from
others
Objective:
American Express OPEN wanted to assist their
small business merchants grow their business
and increase credit card transaction volume
Digital Strategy:
1. Give them tools to publicize their local
business – make a website
2. Give them specially negotiated discounts
(OPEN Savings)
3. Give them an online place to ask questions,
exchange ideas (LinkedIn OPEN group)
January 19, 2013. 34

35. Leadership
Implications
January 19, 2013. 35

36. Leadership Actions
• Digital and social media have re-shaped habits and
expectations of users so dramatically that its ripple effects are
now hitting the enterprise
• Speed is a competitive advantage; lack of speed in identifying
problems or opportunities is a nail in the coffin
• Greater transparency in knowledge management and transfer
is crucial, and supports innovation
• Corporate processes may help to increase efficiencies but
they also stifle innovation; make time and allocate resources
for innovation, including specific people who are good at it
January 19, 2013. 36

37. Radical Transparency
"We're all employee owners,
and we love it," Jones says.
"We wanted to have an elite
team that's going to
contribute. When you have
different people weighing in
with different decisions, you
create this team-oriented,
open environment."
Source: Business Insider , Jan 15, 2013
January 19, 2013. 37

38. Enterprise Social Media
• Create virtual “watercooler” – a place where conversations
and knowledge sharing can be done publicly
• Build up processes and habits to ask and answer questions
around this watercooler (to build up content)
• Plug in other sources of collected documents, knowledge,
questions-answers, customer databases, email lists, etc.
• Index everything and make it searchable; add social actions
(e.g. sharing); add context (how to distinguish quality)
January 19, 2013. 38

39. Dr. Augustine Fou – Chief Digital Strategist
Dr. Augustine Fou is an industry-recognized thought
leader in digital strategy, search and social media
marketing and former Group Chief Digital Officer of
Omnicom's Healthcare Consultancy Group. Dr. Fou has
over 16 years of management consulting and digital
strategy consulting experience, advising CMOs,
marketing executives, and global brands. He pioneered
the application of the Unified Marketing™ framework
to optimize marketing and advertising across traditional
and digital channels.
FORMER CHIEF DIGITAL OFFICER, HCG (OMNICOM)
MCKINSEY CONSULTANT
CLIENT SIDE / AGENCY SIDE EXPERIENCE
PROFESSOR AND COLUMNIST
ENTREPRENEUR / SMALL BUSINESS OWNER
PHD MATERIALS SCIENCE (MIT '95) AT AGE 23
Slideshares: http://www.slideshare.net/augustinefou
LinkedIn: http://www.linkedin.com/in/augustinefou
January 19, 2013. 39