building blocks for the enterprise of the digital age | enterprise digital summit paris 2016 |...

7SUMMITS

Building Blocks for the Enterprise of the Digital Age

7SUMMITS

1) Digital Trends

2

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Digital Disruption is Here Now: Evidence of Urgency

‹#›

Failure to Adapt to Technology Conditions the #1 Threat

Average Corporate Lifespan Has Fallen Dramatically As a Result

‹#›

How Traditional Change is Untenable And Why New Models are Needed

Today: Slow linear tech change by doing it all centrally

Tomorrow: Fast exponential change by

enlisting broader networks (people and 3rd parties at scale) to

adopt, adapt, and transform

The Dislocation MostOrganizations AreHeading Towards

rate

of c

hang

e

increasing headwinds as legacy baggage

slows change

Ideal change rate that more closely matches market’s

change rate

by Dion HinchcliffeFrom http://zdnet.com/blog/hinchcliffe on

http://dachisgroup.com

http://zdnet.com/blog/hinchcliffe

‹#›

Today’s Digital Vision Consensus

AccessCustomer Engagement Style

EmpowermentTouchpointsEngagement

Reactive Proactive->

From To

Traditional Consumerized->

Corporate Solutions Self-Actualized->Fragmented -> IntegratedB2B, B2C B2Community->

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The Rise of Customer Experience Management (CEM) vs. CRM

Today, CEM is a Digital-First Activity

‹#›

Motivation: The Strategic Value of Investing in Digital Customer Experience

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Data Shows Loyalty Leaders Invest in Customer Experience

‹#›

Digital Marketing Priorities for 2016

Source: SmartInsights, February 2016

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State of B2C Social Engagement by Industry in 2016

Source: SmartInsights, February 2016

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Mobile is the Engagement Platform for the Future

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The Internet of Things: Everything Is About to Be Connected

Top Issues:Standards Security Data Volume

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We’ll Engage with “Smart Everything” Soon: AI and Conversational Interfaces

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Bots Will Be On the Front Line of Engagement, For Better or Worse

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A 2016 Imperative: Building and Controlling Open Digital Business Platforms

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The Current State: Social Business• The use of open sharing and participation at the

core of how we work with our stakeholders and manage our organizations

• And explicitly taking advantage of the rules (power laws) that make digital networks uniquely powerful

• Aimed at business objectives• Usually through social tools• Creates or leaves behind more value at each step

in the process• Works best with new technology• And new thinking• But leading companies are now

reaping major benefits today• Estimated to be a $23 billion industry by 2019,

growing at an impressive 26% annually. Source: Technavio

Local Social Business Strategy

social business committee/center of excellence



coordination,cross-pollination,

best practice capture,support,

governance

Social Business Strategyglobal

agile & iterative

organization

‹#›

New Data on Where Social Business Value Lies

• On average half of social business stakeholders say social tools have better enabled digital activities

• But some areas are particularly high value

• Order to cash• Demand planning• R&D

• These are not areas that most focus on with social business.

Source: How social tools can reshape the organization, McKinsey, May 2016

‹#›

What Social Business Participants Think Will Happen Next

Source: How social tools can reshape the organization, McKinsey, May 2016

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Bottom Line: Less Fixed Everything, More Dynamic Connected Change

Source: GCHQ’s Boiling Frog Report, May 2016

7SUMMITS

2) Building Blocks

21

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"Digital is not the big breakthrough. It's the change in people's behavior."- Gabriele Maltinti

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The key: Digital engagement is a single connected continuum…

Social Businessenterprise ecosystem

customers +world

business partners

workers

integrated vision

intra

net

extra

net

Inte

rnet

…with people as the fundamental building block

‹#›

Where This Pervasive Connectedness Is Taking Us: Ecosystems

‹#›

So Communities Are The Construct…

• Hierarchies, bureaucracies,other methods of control have value

• But we’ve discovered that self-organizing groups of people are the single most powerful human construct

- Open Source- Facebook, etc.- Blockchain

Tenet #1: Anyone can participate. Tenet #2: Create shared value by default.

…Because They Have Most Scale, Diversity, and Connectedness

‹#›

Key Digital Insight: More Connectedness = More Shared Value

team-based

department scale

enterprise scale

ecosystem scale

crowd scale

• Anyone can participate• Formal social capital (connectedness) is

accumulated for later leverage• Contributions are visible and shared by

everyone (network effects by default)• Collaborative scenarios are able to and

encouraged to scale• Enabling diverse participation is a core

design value• Emergent outcomes possible and much more

likely

High Connectedness, Scale, Diversity

Low Connectedness, Scale, Diversity

• Upfront assumptions on who can participate• Social capital usually not possible or

encouraged• Contributions mostly shared by initial

participants• Not optimized for scale• Diversity not a central design parameter

more social, more open, more strategic, more shared value, more emergent

#social media#community#forums#ESN#CMS/DMS/ECM#intranets#portals#messaging#uc#email

(cc) 2016 7Summits, LLC | Creative Commons. Some Rights Reserved. | @dhinchcliffe

7Summits LLC

Building Blocks: Comparing the Types of Collaboration and Engagement

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E-mail

IM/Chat/UC

Wikis

Blogs

ESN

Community

Scale

1000s

10s

10000s

100000s

100000s

1000000s

Open, Visible, Shared with All

No

Maybe

Yes

Yes

Yes

Yes

Only w/ Who IsInvited

Yes

Probably

No

No

No

No

Needs NewDigital Skills*

No

No

Maybe

Maybe

Yes

Yes

Works Best w/Community Managers

No

No

Sometimes.

Sometimes.

Yes

Yes* = Working Out Loud,

PKM, etc.

InterruptsWork

Yes

Yes

No

No

No

No

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We’ve Learned to Let The Network Do The Work....

THE CORE DIFFERENCE BETWEEN EARLIER GENERATIONS OF COLLABORATION

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Using Community At the Center of Work

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Wirearchy

Social Business

Emergent Management Theories, Methods for

Modern Leadership in the Digital Age

blogs

wikis

enterprise social networks

social CMS

unifiedcommunications

online communities

IM/Chat

e-mail groupware

collaboration suites

digital organization support tools

chronological evolution

Social Technology for Mass Collaboration and

Self-Organization

• Inspire •Enable •Empower

crowdsourcing

•Re-imagine

•Transform

•Improve

Core Institutional Business Practices

leadership

management operations governance

hiring budgeting resource allocation

project management

product development

marketing and sales

All of This Is Leading Directly to New Ways to Manage and Work

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WHAT PEOPLE DO IS WHAT DEFINES DIGITAL ENGAGEMENT

Digital Engagement Value Chain

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Also Giving Rise to The Collaboration Paradox

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“The More Tools We Have, The Less Connected We Seem”

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What the Collaboration Landscape Really Looks Like

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And Everyone Is A Collaboration Expert Now

Shado

w

Collabo

ration

For Better Or Worse

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A Larger Scale, More Nuanced Solution

point-to-point

team, department, project

enterprise-wide

all stakholders,internal and external

Hub B

Hub A

A Multilayered Collaboration Strategy

supportinglayer

AppA

AppD

AppG

AppF App

H

AppE

AppC

AppB

AppI

search

compliance

analytics

records retention

backup security

community management governance

a mass collaboration platform, such as ESN or online community that integrates well

a team-scalecollaborationplatform that

integrateswell

Customers

Partners

‹#›

Ultimately, Orgs Will End Up Connecting All These Communities

‹#›

Thus Digital Transformation Requires Enlisting the Full Organization…

…And Community is The Best Platform for Broad Change at Scale

Source: Dion Hinchcliffe, 7Summits

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Companies Must Build a Scalable Digital Metabolism for Change

‹#›

Companies That Change Nature of Supply, Demand Have Best Chance

2016

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One Key to Results: Holistically Organizing for Digital Transformation


7Summits LLC

41

Building Blocks for Workforce Engagement

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Building Blocks for Digital Business


7Summits LLC

Content and Conversation

Digital Engagement Building Blocks: A Traditional View

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People

Marketing ContentBrand Assets SEO SEM Digital Ads Social Participation Communities Advocacy Programs

Experience Channels

Web sites Microsites Ad Networks Mobile Apps Social MediaE-mail Contact Center VR

Experience Management

Policy Management Analytics

Automation

Value-Added Functions

Personalization Customer Journey Mapping

Design Thinking Creative Design

UX

PushControl &

Value

Organization

No Co-Creation Org Does All The Work


7Summits LLC

Standing It On Its Head: The Marketplace Leads Engagement & Value Creation

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Content and Conversation

Marketing ContentBrand Assets SEO SEM Digital Ads Social Participation Communities Advocacy Programs

Consumers

Experience Channels

Web sites Microsites Ad Networks Mobile Apps Social MediaE-mail Contact Center VR

Experience Management

Policy Management Analytics

Automation Personalization

Value-Added Functions

Customer Journey Mapping

Design Thinking Creative Design

UXPull

Control &Value

Organization

Architecture of ParticipationPlatforms for Co-Creation


7Summits LLC

Conclusion: Digital Change Works Best with a Platform

45


7Summits LLC

Digital Lessons: What Worked in the Past, Won’t Work in Exponential Era, So…

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Let the Market Do the Work

Decentralize Innovation, Growth, & Scale

Leverage the Power Laws (i.e. Network Effects)

Accumulate Social Capital for the Long Haul

Fast Forward Past Cultural Blockers

Seek Opportunity, But Don’t Chase Fads

• Earned/Owned Marketing• Advocacy Programs• Support + R&D Communities• Open APIs and Hackathons


7Summits LLC

Most Of All, Don’t Forget: Digital Transformation is About People

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