from social media to social business, by design

1. Social Business by Design

2. David Armano
Principal, Dachis Group
dachisgroup.com
Hello. Logic + Emotion
davidarmano.com
@armano
2

3. Social Business By Design | Date August, 2009
“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
® 2009 Dachis Group. Confidential and Proprietary 3

4. Social Business By Design | Date August, 2009
Still, teens are having sex
® 2009 Dachis Group. Confidential and Proprietary 4

5. Social Business By Design | Date August, 2009
So, whatʼs changed? Command & control.
® 2009 Dachis Group. Confidential and Proprietary 5

6. Social Business By Design | Date August, 2009
Facilitation leads to engagement
® 2009 Dachis Group. Confidential and Proprietary 6

7. Social Business By Design | Date August, 2009
Engagement leads to participation
Engagement
Techniques
Used
Broadcast
Techniques
Used
“Comments, which were absent from the broadcast
phase now represented almost 10% of the view rate.”
Source: Doug White, Social Media Today
® 2009 Dachis Group. Confidential and Proprietary 7

8. Social Business By Design | Date August, 2009
the network economy
“America’s opportunity is to lead the network
economy, not protect the industrial economy”
~John Gerzema, CIO Young & Rubicam
dachisgroup.com
® 2009 Dachis Group. Confidential and Proprietary 8

9. Social Business By Design | Date August, 2009
Facilitation
® 2009 Dachis Group. Confidential and Proprietary 9

10. Social Business By Design | Date August, 2009
Participation
® 2009 Dachis Group. Confidential and Proprietary 10

11. Social Business By Design | Date August, 2009
Facilitation
® 2009 Dachis Group. Confidential and Proprietary 11

12. Social Business By Design | Date August, 2009
Participation
® 2009 Dachis Group. Confidential and Proprietary 12

13. Social Business By Design | Date August, 2009
Reciprocation
® 2009 Dachis Group. Confidential and Proprietary 13

14. Social Business By Design | Date August, 2009
Social networks amplify
® 2009 Dachis Group. Confidential and Proprietary 14

15. Social Business By Design | Date August, 2009
Attention on the network is earned in streams
® 2009 Dachis Group. Confidential and Proprietary 15

16. Social Business By Design | Date August, 2009
Ripples in the streams
® 2009 Dachis Group. Confidential and Proprietary 16

17. Social Business By Design | Date August, 2009
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
® 2009 Dachis Group. Confidential and Proprietary 17

18. Social Business By Design | Date August, 2009
® 2009 Dachis Group. Confidential and Proprietary 18

19. Social Business By Design | Date August, 2009
® 2009 Dachis Group. Confidential and Proprietary 19

20. Social Business By Design | Date August, 2009
100 people
100 blogs, twitter accounts, facebook
pages, etc. (that’s a lot of streams)
® 2009 Dachis Group. Confidential and Proprietary 20

21. Social Business By Design | Date August, 2009
Me-conomics 101
® 2009 Dachis Group. Confidential and Proprietary 21

22. Social Business By Design | Date August, 2009
The corporate social media curve
® 2009 Dachis Group. Confidential and Proprietary 22

23. Social Business By Design | Date August, 2009
Or skipping it the curve all together...
® 2009 Dachis Group. Confidential and Proprietary 23

24. Social Business By Design | Date August, 2009
Fooled you!
® 2009 Dachis Group. Confidential and Proprietary 24

25. Social Business By Design | Date August, 2009
Two ways to look at this:
“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
VS.
“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
® 2009 Dachis Group. Confidential and Proprietary 25

26. Social Business By Design | Date August, 2009
Or is there?
“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
® 2009 Dachis Group. Confidential and Proprietary 26

27. Social Business By Design | Date August, 2009
Social business brings new challenges
® 2009 Dachis Group. Confidential and Proprietary 27

28. Social Business By Design | Date August, 2009
Social media marketing is only one part of the equation
social media marketing
(subset of entire marketing activities)
legal
supply chain
IT
corporate
distribution
business functions R&D
(which can be socialized)
product development
manufacturing
etc…
® 2009 Dachis Group. Confidential and Proprietary
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29. Social Business By Design | Date August, 2009
What about cultural shifts across the company?
® 2009 Dachis Group. Confidential and Proprietary
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30. Social Business By Design | Date August, 2009
Putting your ecosystem to work for you
® 2009 Dachis Group. Confidential and Proprietary
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31. Social Business By Design | Date August, 2009
Removing the barriers that separate
® 2009 Dachis Group. Confidential and Proprietary
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32. Social Business By Design | Date August, 2009
...and divide
hierarchy + networks
® 2009 Dachis Group. Confidential and Proprietary
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33. Social Business By Design | Date August, 2009
The network effect flattens and democratizes
The “Round World” Way
N
APPROVE?
Y
1 Inspiration strikes. 2 Presents ideas 3 Boss either approves or denies. 4 If approved, individual
to “The Boss”. If denied, confidence takes a slight hit. has “permission” to share
with others.
Sharing Ideas in Flat vs. Round Worlds
The “Flat World” Way
N
IDEA
“PUBLISH” TAKES
OFF? Y
1 Inspiration strikes. 2 “Presents” ideas 3 “Publishes” idea on social network. 4 If idea takes off,
to peers within Waits to see if idea takes off. individual has established
social network. If idea doesn’t gain traction— the credibility needed
no harm done. to share more ideas.
© David // Armano darmano.typepad.com
® 2009 Dachis Group. Confidential and Proprietary
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34. Social Business By Design | Date August, 2009
Revenge of the worker bee
® 2009 Dachis Group. Confidential and Proprietary
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35. Social Business By Design | Date August, 2009
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”
® 2009 Dachis Group. Confidential and Proprietary
11

36. Social Business By Design | Date August, 2009
The digital watercooler
® 2009 Dachis Group. Confidential and Proprietary
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37. Social Business By Design | Date August, 2009
more challenges
® 2009 Dachis Group. Confidential and Proprietary 37

38. Social Business By Design | Date August, 2009
Participation creates scalability issues
® 2009 Dachis Group. Confidential and Proprietary 38

39. Social Business By Design | Date August, 2009
Personality is a plus, but...
“I believe that people would rather have a conversation with a
person than a brand.” ~Scott Monty, Ford Motor Company
® 2009 Dachis Group. Confidential and Proprietary 39

40. Social Business By Design | Date August, 2009
...individuals donʼt scale well
® 2009 Dachis Group. Confidential and Proprietary 40

41. Social Business By Design | Date August, 2009
Some organizations are trying
imagine if your entire call center was a social business center
® 2009 Dachis Group. Confidential and Proprietary 41

42. Social Business By Design | Date August, 2009
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
® 2009 Dachis Group. Confidential and Proprietary 42

43. Social Business By Design | Date August, 2009
Social business must be integrated (but often isnʼt)
® 2009 Dachis Group. Confidential and Proprietary 43

44. Social Business By Design | Date August, 2009
the industrial machine rolls on
® 2009 Dachis Group. Confidential and Proprietary 44

45. Social Business By Design | Date August, 2009
Great PR & marketing, but is it integrated?
® 2009 Dachis Group. Confidential and Proprietary 45

46. Social Business By Design | Date August, 2009
Starbucks starts to connect the dots
® 2009 Dachis Group. Confidential and Proprietary 46

47. Social Business By Design | Date August, 2009
Starbucks starts to connect the dots
70,000 ideas in first year
Free coffee for Gold Card members on their birthday
Starbucks VIP card
Splash sticks
Buy coffee beans, get a free cup of coffee
® 2009 Dachis Group. Confidential and Proprietary 47

48. Social Business By Design | Date August, 2009
Hiring and staffing
® 2009 Dachis Group. Confidential and Proprietary 48

49. Social Business By Design | Date August, 2009
How many followers means credibility?
® 2009 Dachis Group. Confidential and Proprietary 49

50. Social Business By Design | Date August, 2009
Wanted: chief social officer?
® 2009 Dachis Group. Confidential and Proprietary 50

51. Social Business By Design | Date August, 2009
Measurement is a challenge
® 2009 Dachis Group. Confidential and Proprietary 51

52. Social Business By Design | Date August, 2009
Constructs to measure
dachisgroup.com
® 2009 Dachis Group. Confidential and Proprietary 52

53. Social Business By Design | Date August, 2009
Governance
Source: Ambidanze on Flickr
® 2009 Dachis Group. Confidential and Proprietary 53

54. Social Business By Design | Date August, 2009
What policy do you have in place?
® 2009 Dachis Group. Confidential and Proprietary 54

55. Social Business By Design | Date August, 2009
Does your workflow facilitate matters?
Source: Dell Outreach in the blogosphere, Scribd
® 2009 Dachis Group. Confidential and Proprietary 55

56. Social Business By Design | Date August, 2009
Organizational culture: open or closed?
dachisgroup.com
® 2009 Dachis Group. Confidential and Proprietary 56

57. Social Business By Design | Date August, 2009
An open culture (worth $900 million)
® 2009 Dachis Group. Confidential and Proprietary 57

58. Social Business By Design | Date August, 2009
Open cultures invite their constituents to participate
® 2009 Dachis Group. Confidential and Proprietary 58

59. Social Business By Design | Date August, 2009
A participatory ecosystem
® 2009 Dachis Group. Confidential and Proprietary 59

60. Social Business By Design | Date August, 2009
A participatory ecosystem
® 2009 Dachis Group. Confidential and Proprietary 60

61. Social Business By Design | Date August, 2009
A participatory ecosystem
® 2009 Dachis Group. Confidential and Proprietary 61

62. Social Business By Design | Date August, 2009
Being “open” is contagious
® 2009 Dachis Group. Confidential and Proprietary 62

63. Social Business By Design | Date August, 2009
Who benefits? Everyone.
® 2009 Dachis Group. Confidential and Proprietary 63

64. Social Business By Design | Date August, 2009
How does social integrate?
® 2009 Dachis Group. Confidential and Proprietary 64

65. Social Business By Design | Date August, 2009
Centralization: aka command-and-control
Key:
TM Traditional Marketing DM Digital Marketing SM Social Media PR Public Relations C Corporate Marketing/Communications
® 2009 Dachis Group. Confidential and Proprietary 65

66. Social Business By Design | Date August, 2009
Decentralization: aka free-for-all
Key:
TM Traditional Marketing DM Digital Marketing SM Social Media PR Public Relations C Corporate Marketing/Communications
® 2009 Dachis Group. Confidential and Proprietary 66

67. Social Business By Design | Date August, 2009
Shared services: a hybrid approach
Key:
TM Traditional Marketing DM Digital Marketing SM Social Media PR Public Relations C Corporate Marketing/Communications
® 2009 Dachis Group. Confidential and Proprietary 67

68. Social Business By Design | Date August, 2009
When orchestration is done right...
® 2009 Dachis Group. Confidential and Proprietary 68

69. Social Business By Design | Date August, 2009
And when done wrong...
“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: ChrisBB@prodigy.net on Flickr
® 2009 Dachis Group. Confidential and Proprietary 69

70. The experience is social
® 2009 Dachis Group. Confidential and Proprietary 70

71. Social Business By Design | Date August, 2009
The building blocks of an experience
experience
USEFUL USABLE DESIRABLE SUSTAINABLE
serves purpose intuitive enjoyable scalable
satisfies needs easy pleasurable maintainable
practical seamless delightful adaptive
functional accessible memorable pliable
helpful efficient differentiated
effective
The Basics
(often broken)
USERS
BRAND
BUSINESS
Foundation
® 2009 Dachis Group. Confidential and Proprietary
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72. Social Business By Design | Date August, 2009
Now, add “social”
social experience
USEFUL USABLE DESIRABLE SUSTAINABLE SOCIAL
serves purpose intuitive enjoyable scalable shareable
satisfies needs easy pleasurable maintainable open
practical seamless delightful adaptive distributed
functional accessible memorable pliable
dynamic
helpful efficient differentiated
collective
effective Natural
The Basics Progression
(often broken) (toward social
experiences)
EXTERNAL CUSTOMER PARTICIPATION
INTERNAL CONSTITUENT COLLABORATION
BUSINESS OPTIMIZATION
Foundation
® 2009 Dachis Group. Confidential and Proprietary 72

73. “Design is the planning
that lays the basis for
the making of every
object or system”
® 2009 Dachis Group. Confidential and Proprietary 73

74. Social Business By Design | Date August, 2009
Design
user experience
Hardware: Industrial Design Software: User Interface Design
® 2009 Dachis Group. Confidential and Proprietary 74

75. Social Business By Design | Date August, 2009
Business design
content ecosystem support services
commerce ecosystem
application ecosystem
developer ecosystem
cloud services
products supply chain ecosystem
® 2009 Dachis Group. Confidential and Proprietary 75

76. Social Business By Design | Date August, 2009
Social business design
® 2009 Dachis Group. Confidential and Proprietary
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77. Social Business Design is
the intentional creation of
dynamic and socially
calibrated systems,
process, and culture.
® 2009 Dachis Group. Confidential and Proprietary 77

78. Social Business By Design | Date August, 2009
Changes pushing business toward being more social
® 2009 Dachis Group. Confidential and Proprietary 78

79. Social Business By Design | Date August, 2009
Duct tape and bubble gum wonʼt cut it
® 2009 Dachis Group. Confidential and Proprietary 79

80. Social Business By Design | Date August, 2009
Itʼs time for social business by design
dachisgroup.com
® 2009 Dachis Group. Confidential and Proprietary 80

81. Social Business By Design | Date August, 2009
Four core archetypes
dachisgroup.com
Ecosystem Hivemind Dynamic Signal Metafilter
® 2009 Dachis Group. Confidential and Proprietary 81

82. Social Business By Design | Date August, 2009
Ecosystem (Connections)
dachisgroup.com
From Disparate Silos To Connected Nodes
® 2009 Dachis Group. Confidential and Proprietary 82

83. Social Business By Design | Date August, 2009
Hivemind (Culture)
dachisgroup.com
From Hoarding To Collaborating
® 2009 Dachis Group. Confidential and Proprietary 83

84. Social Business By Design | Date August, 2009
Dynamic Signal (Communication)
dachisgroup.com
From Static To Dynamic
® 2009 Dachis Group. Confidential and Proprietary 84

85. Social Business By Design | Date August, 2009
Metafilter (Content)
dachisgroup.com
From Filter Failure To Clear Signals
® 2009 Dachis Group. Confidential and Proprietary 85

86. Social Business By Design | Date August, 2009
Why?
Leveraged
+ = &
Emergent
Outcomes
•Cost savings and efficiencies •Improved collaborative processes
•Informed social marketing strategies •Adaptable business practices
•New product & service offerings/innovations •Customer growth, retention and sustainability
•Expansion into new markets
® 2009 Dachis Group. Confidential and Proprietary 86

87. Social Business By Design | Date August, 2009
because it’s time to
grow up
® 2009 Dachis Group. Confidential and Proprietary 87

88. Social Business By Design | Date August, 2009
“social” will be
replaced by “it’s how
we do business”
® 2009 Dachis Group. Confidential and Proprietary 88

89. David Armano
Principal, Dachis Group
Thank Logic + Emotion
davidarmano.com
You
dachisgroup.com @armano
89

90. Social Business by Design