Be a better business with a better output. Be an Open Business

Hogeschool van Amsterdam

Open Business Development

Inspiration session:
“Be a better business with a better output.
Be an Open Business”

Introduction: Who am I?

Gianluigi Cuccureddu SMP

Managing Director 90:10 Group -Netherlands

We use methods of co-creation to deliver insight,
innovation and action for organisations.

We make your products, services and communications a better fit for the intended
consumer – helping to build a better business.

Our story
We are dedicated to understanding social media ROI

We thought there has to be more to social media than just fans,
followers and Word-of-Mouth campaigns. A greater ROI than shares,
Likes and blogger coverage.

So we put together a team of people from across disciplines and
geographies to figure it out.

We have the largest team of social media experts working across EMEA
with the greatest diversity of backgrounds including; Research, SEO
Marketing, Media, Advertising, Innovation, Change Management, CRM.

Open Business
Our vision

• We think of social media as a door to the outside world
– not a simple channel to deliver through.
• It’s a door to; listen, ask, connect and create with
people outside the org - partners, customers and
experts.
• It’s a door to competitive advantage in marketing,
service and product innovation.
• It is like hosting an Open Day every day.
• Open Days deepen brand affinity, build relationships,
loyalty and understanding, ask questions and give
answers, discover new habits, trends and needs. Now
every day is an Open Day.
• Be a better business with a better output. Be an Open
Business.

Inspiration & opportunities

"Because the purpose of business is to create a customer, the
business enterprise has two--and only two--basic functions:
marketing and innovation.

Marketing and innovation produce results; all the rest are
costs. Marketing is the distinguishing, unique function of the
business."


According to the MIT Centre for Digital Business, in order to cost-effectively
solve broad business problem and co-create e.g. a new product choice, a
marketing campaign or a new service experience, enterprises need to start
taking advantage of the "wisdom of the crowds" available through social
media data, or risk missing out on huge opportunities to boost business.


According to McKinsey, digitization is creating a second economy that’s
vast, automatic, and invisible—thereby bringing the biggest change
since the Industrial Revolution.

The second economy that is silently forming- vast,
interconnected, and extraordinarily productive- is creating for us a new
economic world. How we will fare in this world, how we will adapt to it,
how we will profit from it and share its benefits, is very much op to us.


Kotler’s Marketing 3.0

Open Business

Framework

Reconfigure to take best advantage of the social web - it's ability to put the
customer at the heart of everything you do.

Adaptation

Change

Insights
Research

Engagement Stewardship

Co-
Innovation

Co-creation

Framework

Co-
Change Engagement Research Innovation

Gain insights from
Use Social Media to Social Media is the
Change how org Social Media either in a
engage with external opportunity to co-
operates to adapt to monitoring or research
stakeholders create innovations with
Social Media capability (Comms,
(Marketing or PR) external stakeholders
Research or Innovation)

Interconnectness

Engagement

Engagement

Engagement

Engagement revolution

http://www.youtube.com/watch?v=sIFYPQj
Yhv8&feature=player_embedded#!

Engagement

Kotler’s Marketing 3.0

Engagement

Engagement

Joe Pine:

Just being a part of something is part of human nature, we want to
belong.

Organizations need to provide a platform for people to belong.
Social media are very good at this.

Social media = enablers
Open Business = platform

Engagement

Pine and Gilmore argue that businesses must orchestrate
memorable events for their customers, and that memory itself
becomes the product - the "experience".

Consistent brand experience is biggest marketing challenge
Forbes: Challenge for chief and senior executives is to create a
consistent experience across all the touch points.

Engagement

Two major shifts internally (McKinsey) :

• Marketing is the customer engagement engine for the other
departments
• shift to a more data and science-based marketing

Engagement

The customer did not change, the tools only expanded

Engagement Data

Engagement

People want to participate, want to engage, attention and spend increase

Research

Research

Research

The World Wide Well (Of Information)

Research

McKinsey on insights and marketing:

“
Marketing is going to become a much more science-driven activity.

Generating rich customer insights, always central to effective marketing
efforts, is more challenging and important in today’s environment.
Companies must listen constantly to consumers across all touch points,
analyze and deduce patterns from their behavior, and respond quickly to
signs of changing needs.
“

Research

Forbes on the challenge unified data overview:

“
While nearly two thirds of respondents said they segment and target
customers based on an integrated view of customer behavior, that view is
not necessarily complete. Just 30% have a view of mobile behavior, and
just 34% look at social media behavior.
“

Research

Evolution of Market Research

Research

Forrester Research (2008):

“
Market research online communities (MROCs) will shock the qualitative market research
world. They provide
Cheaper, faster and newer types of insights that today’s traditional qualitative
modes, such as focus groups, don’t currently provide.
“

Research

Netnography is the branch of ethnography that analyses the free behaviour of
individuals on the Internet that uses online marketing research techniques to provide
useful insights.

Research

Social Media Monitoring

Research

Social Media Intelligence Not Utilized to the Fullest: Competitive Advantages Diminishes:

Just 24% of the interviewed found the Social Media monitoring tools they used were “Very Valuable”.

Translation data into actions

Research

Challenge and disruption of conventional market researchers:

The discussion about data privacy and guidelines for social media research (mainly
listening) is peaking.

ESOMAR, CASRO, MRS and other Market research associations have published their
guidelines recently.

A rising number of market research authorities reject and question these guidelines.
Main points of discussion are on two basic principles of traditional market research
1) anonymity
2) informed consent

Co-Innovation

Co-Innovation

Co-Innovation

Open Innovation

Co-creation

Crowdsourcing
Cooperate versus Collaborate

Co-Innovation

In collaborative innovation it's not only What one knows, but equally or
more importantly Who is in the network.

Identifying the right external people (Who) to bring in and understanding
the innovation process and outputs (the How and What's).

Co-Innovation

Harvard Business Review: Open Innovation Achieves Smarter New Product Development

The survey found:
* Customer suggestions are the most important source of new product ideas.

* New product development is a team sport. More than half of the companies said
marketing, operations, sales, and finance work with the R&D department.

* Fifty-five percent said partners are an important source of ideas and innovation
support.

Co-Innovation

Strategy+Business: The Continuing Payoff from Open Innovation

The research found:
* External links have been shown to stimulate creativity, provide a useful way to search
for new technologies, reduce risk, and improve the quality of the innovation.

* The most common partners were customers and suppliers.

* The researchers measured innovation output by examining the proportion of the firms’
total sales that came from products introduced or improved during the previous three
years.

Co-Innovation

Why collaborative innovation

Co-Innovation

Why collaborative innovation?

You can’t solve problems with the same thinking that created them

Co-Innovation


Discovering unmet needs and introducing more innovative ideas

Co-Innovation


There are a lot of smart people out there, but most of them don't work
for you

Co-Innovation


Driving growth by keep looking at unmet needs and transform them in viable business

Co-Innovation


Enabling businesses to be faster, smarter, more agile than the competition

Co-Innovation


Reducing costs

Co-Innovation


Reducing time to market

Co-Innovation


Increasing the output

Co-Innovation

Philips example

Co-Innovation

Organization are / transform into Platform Businesses for Value co-creation

Co-Innovation

Kotler’s three levels of product

Co-Innovation

Product Development

Core:
Value co-creation
identify and co-create (unmet) needs

Actual:
Product development process
identify and co-create wants

Augmented:
Experience, customization, open business models

Customer-centric approach
The more to the core, the more the organizational implications and
transformation needed

Change

Change

Change

BUSINESS MODEL
VALUE PROPOSITION
Target markets
Products/services
Revenue model

OPERATIONAL MODEL
Value chain
Cost model
Organization

CORE COMPETENCES

Change

How can costs be minimized? What is the portfolio?

How are competitive advantages impacted by
reduction of information asymmetry?

What customers needs?
How is value chain
affected? How can core-
competences be
enriched?

How is organization going
to take advantage of What are the revenue
Social Media? models?

Change

Adaptation and transformation

Change

But do the right things in the right way

Insight-based strategic approach at the heart of Social Media success

Change

Change

Open Business Enables Business Agility & Continual Innovation Through Social Media

Business agility:
Business’ capability to adapt rapidly and cost-efficient to that
landscape and its target audiences.

Continual innovation:
Bit by bit tweaking improvements in existing products, chips
away at costs and debugs processes — in every corner of the
company, all non-stop.

Be a better business with a better output. Be an Open Business

Contact

Gianluigi Cuccureddu SMP

Managing Director 90:10 Group Netherlands
Mobile / direct +31 (0)6 41 36 26 12
gianluigi@ninety10group.com

My thinking & opinions:
Business Insider articles
InnovationManagement articles
AppMarket.tv articles
Marketingfacts articles
90:10 Blog articles
Agora Media Innovation articles

Be a better business with a better output. Be an Open Business

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