Social Business By Design

Social Business by Design

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Hello.David ArmanoPrincipal, Dachis Groupdachisgroup.com

Logic + Emotiondavidarmano.com

@armano

® 2009 Dachis Group. Confidential and Proprietary

Social Business By Design | Date August, 2009

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“Social Media is like teen sex. Everyone wants to do it, nobody knows

how. When it’s finally done, there is surprise it’s not better. ”

Avinash Kaushick, Analytics Evangelist, Google



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Still, teens are having sex



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So, whatʼs changed? Command & control.



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Facilitation leads to engagement



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Engagement leads to participation

“Comments, which were absent from the broadcast phase now represented almost 10% of the view rate.”

Source: Doug White, Social Media Today

Broadcast Techniques

Used

EngagementTechniques

Used



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the network economy“America’s opportunity is to lead the network economy, not protect the industrial economy”

~John Gerzema, CIO Young & Rubicam

dachisgroup.com



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Facilitation



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Participation



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Facilitation



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Participation



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Reciprocation



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Social networks amplify



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Attention on the network is earned in streams



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Ripples in the streams



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Twitterʼs monetization?

“Twitter is allowed to use, copy, reproduce, process, adapt, modify, publish, transmit,

display and distribute your tweets because that's what we do.”~Biz Stone



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100 people100 blogs, twitter accounts, facebook

pages, etc. (that’s a lot of streams)

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Me-conomics 101

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The corporate social media curve

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Or skipping it the curve all together...

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Fooled you!

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Two ways to look at this:

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“It is the most successful viral advertising ever. We have cut through the media clutter. It has cost us the same as a 30 second commercial, aired a few times on TV’’ ~Peter Helstrup, Gray Advertising

“I think there is an audience for virals. I think there is value in "cutting through." but pretending you are a hot, slutty mommy when you are in fact a paid actress is telling a lie and it will reflect back on your brand.’’ ~Blog commenter

VS.



Or is there?

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“We deeply apologise that the film has offended a lot of people — that certainly wasn't the idea. The idea was to create a positive view of Denmark. In order not to continue offending people, we have removed the film from YouTube...’’~VisitDenmark CEO Dorte Kiilerich



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Social business brings new challenges



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Social media marketing is only one part of the equation

legalsupply chain

ITcorporate

distributionR&D

product developmentmanufacturing

etc…

social media marketing(subset of entire marketing activities)

business functions(which can be socialized)



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What about cultural shifts across the company?



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Putting your ecosystem to work for you



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Removing the barriers that separate



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...and dividehierarchy + networks



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The network effect flattens and democratizes

APPROVE?

N

Y

“PUBLISH”

N

Y

IDEA

TAKES

OFF?

1 Inspiration strikes. 2 Presents ideas

to “The Boss”.3 Boss either approves or denies.

If denied, confidence takes a slight hit.

4 If approved, individual

has “permission” to share

with others.

1 Inspiration strikes. 2 “Presents” ideas

to peers within

social network.

3 “Publishes” idea on social network.

Waits to see if idea takes off.

If idea doesn’t gain traction—

no harm done.

4 If idea takes off,

individual has established

the credibility needed

to share more ideas.

The “Round World” Way

The “Flat World” Way

Sharing Ideas in Flat vs. Round Worlds

© David // Armano darmano.typepad.com



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Revenge of the worker bee



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Better employees = better business

Listening: “with employees, listening can turn rapidly into problem solving.”talking: “post policy changes where everyone can read them and see how they’re playing in Peoria”

Energizing: “amplifies (an enthusiastic employee’s) voice across the entire Best Buy employee bases. She spreads her positive thinking and advice, which has an impact on stores everywhere.”

Supporting: “employees can find the support they need from around the company”

Embracing: “community turned out to be a way to surface both ideas and great talent”



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The digital watercooler



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more challenges



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Participation creates scalability issues



Personality is a plus, but...

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“I believe that people would rather have a conversation with a person than a brand.” ~Scott Monty, Ford Motor Company



...individuals donʼt scale well

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Some organizations are trying

imagine if your entire call center was a social business center



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Signs of ROI

Dell Outlet has booked more than $3 million in revenue attributable to its Twitter posts. In addition, the division has done research showing that awareness of the outlet has grown, too.Source: Twitter 101



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Social business must be integrated (but often isnʼt)



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the industrial machine rolls on



Great PR & marketing, but is it integrated?

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Starbucks starts to connect the dots



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70,000 ideas in first yearFree coffee for Gold Card members on their birthday

Starbucks VIP card

Splash sticks

Buy coffee beans, get a free cup of coffee

Starbucks starts to connect the dots



Hiring and staffing

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How many followers means credibility?

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Wanted: chief social officer?

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Measurement is a challenge



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Constructs to measure

dachisgroup.com



Governance

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Source: Ambidanze on Flickr



What policy do you have in place?

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Does your workflow facilitate matters?

55Source: Dell Outreach in the blogosphere, Scribd



Organizational culture: open or closed?

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dachisgroup.com



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An open culture (worth $900 million)



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Open cultures invite their constituents to participate



A participatory ecosystem

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Being “open” is contagious

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Who benefits? Everyone.

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How does social integrate?

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Centralization: aka command-and-control

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Key:TM Traditional Marketing DM Digital Marketing SM Social Media PR Public Relations C Corporate Marketing/Communications



Decentralization: aka free-for-all

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Shared services: a hybrid approach

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When orchestration is done right...

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And when done wrong...

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“if a company does not begin its social media initiative with a strong composition for all to follow; the orchestra would sound like a high school band room during warm up and prior to the

conductor tapping his baton. Pandemonium!”~Laureen Earnest, Source: [email protected] on Flickr

® 2009 Dachis Group. Confidential and Proprietary 70

The experience is social



Foundation

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The building blocks of an experience

USEFUL

serves purpose

satisfies needs

practical

functional

helpful

effective

USABLE

intuitive

easy

seamless

accessible

efficient

DESIRABLE

enjoyable

pleasurable

delightful

memorable

differentiated

SUSTAINABLE

scalable

maintainable

adaptive

pliable

BUSINESS

BRAND

The Basics(often broken)

experience

USERS



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Now, add “social”

Foundation

USEFUL

serves purpose

satisfies needs

practical

functional

helpful

effective

USABLE

intuitive

easy

seamless

accessible

efficient

DESIRABLE

enjoyable

pleasurable

delightful

memorable

differentiated

SUSTAINABLE

scalable

maintainable

adaptive

pliable

BUSINESS OPTIMIZATIONINTERNAL CONSTITUENT COLLABORATION

EXTERNAL CUSTOMER PARTICIPATION

The Basics(often broken)

SOCIAL

shareable

open

distributed

dynamic

collective

Natural Progression

(toward socialexperiences)

social experience


“Design is the planning that lays the basis for the making of every object or system”



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Design

Software: User Interface DesignHardware: Industrial Design

user experience



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Business design

content ecosystem

cloud services

developer ecosystemapplication ecosystem

commerce ecosystem

products

support services

supply chain ecosystem



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Social business design


Social Business Design is the intentional creation of

dynamic and socially calibrated systems,

process, and culture.



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Changes pushing business toward being more social



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Duct tape and bubble gum wonʼt cut it



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Itʼs time for social business by design

dachisgroup.com



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Four core archetypes

Ecosystem Hivemind Dynamic Signal Metafilter

dachisgroup.com



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Ecosystem (Connections)

From Disparate Silos To Connected Nodes

dachisgroup.com



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Hivemind (Culture)

From Hoarding To Collaborating

dachisgroup.com



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Dynamic Signal (Communication)

From Static To Dynamic

dachisgroup.com



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Metafilter (Content)

From Filter Failure To Clear Signals

dachisgroup.com



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Why?

+ =Leveraged

&EmergentOutcomes

•Cost savings and efficiencies

•Informed social marketing strategies

•New product & service offerings/innovations

•Improved collaborative processes

•Adaptable business practices

•Customer growth, retention and sustainability

•Expansion into new markets



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because it’s time to grow up



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“social” will be replaced by “it’s how

we do business”

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ThankYou

David ArmanoPrincipal, Dachis Groupdachisgroup.com

Logic + Emotiondavidarmano.com

@armano

Social Business by Design

Social Business By Design

Business

social business

design date

dachis group

social networks

corporate social media

media clutter

lot of streams

lot of people