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.

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.

Our story We are dedicated to understanding social media ROI

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.

"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."

Open Business Development 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.


http://www.v3.co.uk/v3/news/2274559/ibm-social-media-analytics

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.


http://www.v3.co.uk/v3/news/2274559/ibm-social-media-analytics

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.


https://www.mckinseyquarterly.com/Strategy/Growth/The_second_economy_2853

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.


https://www.mckinseyquarterly.com/Strategy/Growth/The_second_economy_2853


Op

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Bu

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Kotler’s Marketing 3.0

Open Business Development Framework

Co-Innovation

Engagement

Research

Change

Adaptation

Insights

Stewardship

Co-creation

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

Change Co-

Innovation Research Engagement

Change how org operates to adapt to Social Media

Use Social Media to engage with external stakeholders (Marketing or PR)

Gain insights from Social Media either in a monitoring or research capability (Comms, Research or Innovation)

Social Media is the opportunity to co-create innovations with external stakeholders

Open Business Development Framework

Open Business Development Interconnectness

Open Business Development Engagement

Engagement

http://www.youtube.com/watch?v=sIFYPQj

Yhv8&feature=player_embedded#!


Engagement revolution

http://www.youtube.com/watch?v=sIFYPQjYhv8&feature=player_embedded







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

http://www.strategichorizons.com/joePine.html




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.


http://en.wikipedia.org/wiki/The_Experience_Economy

http://www.marketingfacts.nl/berichten/20111003_consistente_merkbeleving_is_marketings_grootste_uitdaging/








Two major shifts internally (McKinsey) :

• Marketing is the customer engagement engine for the other departments

• shift to a more data and science-based marketing


http://www.businessinsider.com/redefining-the-marketing-organization-would-peter-drucker-been-in-agreement-2011-8

The customer did not change, the tools only expanded

Data Engagement



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

Open Business Development Research

Research


The World Wide Well (Of Information)


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. “

http://www.businessinsider.com/redefining-the-marketing-organization-would-peter-drucker-been-in-agreement-2011-8


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. “

http://www.businessinsider.com/forbes-insights-consistent-experience-is-biggest-marketing-challenge-2011-10


Evolution of Market Research

http://www.slideshare.net/mattpluggedin/overview-of-market-research-online-communities


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. “


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.

http://en.wikipedia.org/wiki/Ethnography


Social Media Monitoring


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

http://www.businessinsider.com/social-media-intelligence-not-utilized-to-the-fullest-competitive-advantages-diminishes-2011-8

http://www.businessinsider.com/social-media-intelligence-not-utilized-to-the-fullest-competitive-advantages-diminishes-2011-8


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

Open Business Development Co-Innovation

Co-Innovation

Open Innovation

Co-creation

Crowdsourcing


Cooperate versus Collaborate


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).


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.

http://www.businessinsider.com/harvard-business-review-open-innovation-achieve-smarter-new-product-development-2011-6


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.

http://www.strategy-business.com/article/re00161?gko=30c86


Why collaborative innovation

http://nl.blog.ninety10group.com/8-reasons-for-open-innovation-exploration/


Why collaborative innovation?

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



Discovering unmet needs and introducing more innovative ideas



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



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



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



Reducing costs



Reducing time to market



Increasing the output


Philips example

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


Kotler’s three levels of product


http://www.businessinsider.com/co-creation-and-the-impact-on-the-three-levels-of-product-2011-9

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


Open Business Development Change

Change

BUSINESS MODEL


CORE COMPETENCES

OPERATIONAL MODEL Value chain Cost model

Organization

VALUE PROPOSITION Target markets

Products/services Revenue model


What customers needs?

How are competitive advantages impacted by reduction of information asymmetry?

How can core-competences be enriched?

How is organization going to take advantage of Social Media?

How can costs be minimized?

How is value chain affected?

What are the revenue models?

What is the portfolio?


Adaptation and transformation


But do the right things in the right way

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

http://www.businessinsider.com/insight-based-strategic-approach-at-the-heart-of-social-media-success-2011-9






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.

Open Business Enables Business Agility & Continual Innovation Through Social Media


http://www.businessinsider.com/open-business-enables-business-agility-and-continual-innovation-2011-7

http://www.businessinsider.com/open-business-enables-business-agility-and-continual-innovation-2011-7

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

“”

Open Business Development 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 [email protected] My thinking & opinions: Business Insider articles InnovationManagement articles AppMarket.tv articles Marketingfacts articles 90:10 Blog articles Agora Media Innovation articles

mailto:[email protected]

http://www.businessinsider.com/author/gianluigi-cuccureddu

http://www.innovationmanagement.se/author/gianluigi-cuccureddu/

http://www.appmarket.tv/opinion/1261.html?allposts=1

http://www.marketingfacts.nl/profiel/15256/

http://nl.blog.ninety10group.com/social-media-usage-leads-to-innovative-employees/

http://agoramedia.co.uk/blog/author/gianluigi/