social roi and value modeling

Peter H. ReiserPrincipal Architect, Oracle

Community Equity - How to build vibrant communities

McKinsey's BTO meeting

December 2011

Tuesday, December 6, 11

Oracle Safe Harbor Statement

The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions.

The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.

What is Enterprise 2. 0 ?

How to build vibrant communities

Internal Employees

External CustomerPartnersSuppliers

Web 2.0Social Media

The Enterprise 2.0 dilemma

Users View

I am too busy to sharing my content

My time is better spent generating revenue

(My knowledge is power)

What’s In It For Me (WIIFM)?

Business View

What is the business case?

How to integrate social & communities into our existing business processes ?

What is the RoI?

Communities are a “good thing” BUT...

What if we can prove to the business the

RoI of Communities(aka Enterprise 2.0)

have answers for the users on

WIIFM?

Technology

Adoption

Technology

Adoption

Enterprise Architecture

Technology

Adoption

Process / Methodology

Technology

Adoption

Business: RoI, Users: WIIFM

Objectives

Seamless integrate social & communities into all core business processes

Establish a standardized Enterprise 2.0 Framework to support social, collaboration and communities

Measure the impact of social, collaboration & communities along the business processes

Establish targeted social value models

Core Business Processes

ProductCreation

Opportunity Mngt.

BID Mngt. Delivery Product

Creation Opportunity

Mngt.BID

Mngt. Delivery Support

Business Processes and Applications

ProductCreation

Opportunity Mngt.

Mngt.BID

Social Enterprise Community Framework

ProductCreation

Opportunity Mngt.

Mngt.BID

Business/Communities Metrics

Social Enterprise Framework

ProductCreation

Opportunity Mngt.

BID Mngt.

ProductCreation Delivery BID

Mngt. Delivery Support Opportunity Mngt.

Re-Use of Content in Opportunity Management

and Project Delivery

Use Case: AIM KMS - Sun Microsystems

Re-Use of Documents

Project 1 Project 2

Project 3

Re-Use

Enterprise Community and Collaboration Framework (AIM KMS & SunSpace)

Re-Use compared to Win Rate and Margin

Opportunity Mngt.

Creation Delivery Support

Enterprise Social and Community Framework (AIM KMS & SunSpace)

Win Rate

Forecast Margin

RoI on Communities (Sun Microsystems)

Up to 14 % better win rate Up to 20% higher project margin

ROI calculation

Revenue : 11,000 Millions

80% of projects in AIM KMS: 8,800 Millions

15 % average Re-Use: 1,320 Millions

Average win rate improvement : 10 %

ROI: 132 Millions incremental revenue

Social & Business Value per Document

Social Values Downloads

Ratings

Re-Use

Business ValuesWins

Revenue

Hours saved

Measuring Social Capital

Community Equity

DocumentsWiki

BlogsPatents

Contribution

Community Equity

DocumentsWiki

BlogsPatents

Contribution

RateCommentRe-use

Participation

Community Equity

DocumentsWiki

BlogsPatents

Contribution

RateCommentRe-use

Participation

Education Skills

Reputation

Community Equity

DocumentsWiki

BlogsPatents

Contribution

RateCommentRe-use

Participation

Education Skills

Reputation

BusinessCommunities

Community Equity

DocumentsWiki

BlogsPatents

Contribution

RateCommentRe-use

Participation

Education Skills

Reputation

BusinessCommunities

Role PersonalEquity

Personal

Community Equity Mathematical Model Object Activity | Contribution - Aging | Partipation - Aging

Information Equity

Content Activities Community

Information Equity

Content Activities Community

Information Equity

Content

createmodifydownloadviewratecommenttag

Activities Community

Information Equity

Content

createmodifydownloadviewratecommenttag

Activities Community

Personal Equity

My Community Equity Activities Me

Community

Personal Equity

My Community Equity Activities Me

Community

Personal Equity

My Community EquityContributioncreatemodifytag

Activities Me

Community

Personal Equity

Activities Me

Community Participationviewratecommentreuse

Personal Equity

Activities Me

Community Participationviewratecommentreuse

Tag Equity

Info 1IQ=10

Tag Equity

Info 1IQ=10

JavaTQ=10

Tag Equity

Info 1IQ=10

Info 2IQ=20

JavaTQ=10

Tag Equity

Info 1IQ=10

Info 2IQ=20

JavaTQ=10

RubyTQ=20

JavaTQ=30

Tag Equity

Info 1IQ=10

Info 2IQ=20

JavaTQ=10

TQ(Java)=30TQ(Ruby)=20

RubyTQ=20

JavaTQ=30

Tag Equity

Info 1IQ=10

Info 2IQ=20

JavaTQ=30

RubyTQ=20

Tag Equity

Info 1IQ=10

Info 2IQ=20

JavaTQ=30

RubyTQ=20

Tag Equity

Info 1IQ=10

Info 2IQ=20

JavaTQ=30

RubyTQ=20

Info 3 IQ=30

Tag Equity

Info 1IQ=10

Info 2IQ=20

JavaTQ=30

RubyTQ=20

Info 3 IQ=30

JavaTQ=60

Tag Equity

Info 1IQ=10

Info 2IQ=20

JavaTQ=30

RubyTQ=20

Info 3 IQ=30

Info 4 IQ=40

JavaTQ=60

Tag Equity

Info 1IQ=10

Info 2IQ=20

JavaTQ=30

RubyTQ=20

Info 3 IQ=30

Info 4 IQ=40

JavaTQ=60

RubyTQ=70

Tag Equity

Info 1IQ=10

Info 2IQ=20

JavaTQ=30

RubyTQ=20

Info 3 IQ=30

Info 4 IQ=40

JavaTQ=60

RubyTQ=70

Use Case: SunSpace - Sun Microsystems

Social Enterprise Framework for Global Sales & Services

25,000+ users

150’000+ content items

12+ millions social activities

10x growth within first 6 month

Community Equity implemented since 2008

Information Ranking

Expert Discovery

Trend Discovery

Better Enterprise Search

Better search results

Personalized Recommendations

Expertise Discovery

User Profile (WIIFM)

Social Ranking

Recognition (Incentive)

Expertise and Skills discovery

What’s In It For Me (WIIFM)

Technology

Adoption

Business: RoI, Users: WIIFM

What’s In It For Me (WIIFM)

Technology

Adoption

Business: RoI, Users: WIIFMSocial Adoption model

Targeted Social Adoption Models

Sales Team Tech Team

Next Fiscal year - you can choose between:

Next Fiscal year - you can choose between: 5% more salary

or work on a cool project

Use Case: Technology Leadership - Sun

Engineer

Principal

Fellow

Senior Engineer

Engineer

Principal

Fellow

Senior Engineer HR Levels

Engineer

Principal

Fellow

Senior Engineer HR Levels HR Promotion Process

Engineer

Principal

Fellow

Peer Review

Engineer

Principal

Fellow

Peer Review

Candidate Pipeline Criteria's

Internal OutreachExternal OutreachIntellectual Properties ........Over average Community Equity

Thanks !

peter.reiser@oracle.comhttp://blogs.oracle.com/peterreiserhttp://twitter.com/peterreiser

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