innovation, transformation and culture
TRANSCRIPT
Culture Eats Strategy for Lunch Every Time September 13, 2012
Ayelet Baron [email protected] h<p://twi<er.com/ayeletb H<p://ayeletbaron.com
We Trust Strangers
PRE MEDIA AGE MASS MEDIA AGE SOCIAL MEDIA
AGE
Religious InsOtuOons, state, monarchy dictate the agenda
Consumers dictate
Talk face to face
Talk to shop worker
Consumer influence channels
Consult a professional
Readers le<ers
Phone in; TV / Radio
Talk to shop worker
Talk face to face
Phone call
Professional media dictate h"p://blogs.cisco.com/
Consum
er ability to pub
lish content
THE RELATIONSHIP IS NO LONGER LINEAR
http://www.flickr.com/photos/timothyschenck/
Social media: MarkeOng and PR
Social business: People and business processes
Agile
Transparent
AuthenOc
RelaOonship
What MoOvates Us?
give me the prestige of a new title
give me something I want to
do
give me $10,000
About Me
Former Chief Strategist, TransformaOon and InnovaOon
OrganizaOonal Results • From #4 to #2 Country in Cisco • A culture of firsts and innovaOon • Top 3 “Best Company to Work For” in Canada over the last 3 years
• 300 new R&D jobs in Canada facilitated by $25M grant from the Province of Ontario – just the start
• Advisor to Federal, Provincial and City Governments
Key Drivers of InnovaOon Introduced
• ExperimenOng culture • “Connected North” • VerOcal Rainmakers • Reverse Mentoring • Create a truly “social business” • Enable the “future of work”
Community
A group of people with unique shared values, behaviors, and ar?facts
The social era will reward organizaOons that understand they can create more value with communiOes than they can
on their own −Nilofer Merchant, 11 Rules for Crea?ng Value in the Social Era
… But People Don’t Change as Fast
Source: h"p://pandasthumb.org/archives/2006/09/fun-‐with-‐homini-‐1.html
Cost of Sales
Cost of InformaOon DistribuOon
Cost of Content CreaOon
h"p://www.flickr.com/photos/wisefly/2948707192/
Cost of Sales is Dropping
h"p://www.flickr.com/photos/mon_oeil/2803417816/
Margins
Cost of Market Access
Cost of Discovery
Margins Are Eroding
Time to innova5on
Time from tacit to explicit
knowledge
Capture of tacit
knowledge
InnovaOon Cycle Times Are Speeding Up
Change
Confusion
Anxiety PolarizaOon
TranslaOon to InternalizaOon
Frame of Reference
Major
Minor
Overwhelmed People Shut Down
Cost Savings § Loyalty § Forgiveness § Time § Peer support § Issue reporOng
Revenue § Preference § PaOence § Advocacy § CompeOOve lockout § AuthenOc insights
These quali?es require a different level of rela?onship than tradi?onal transac?onal rela?onships
RelaOonships as CompeOOve DifferenOator
Enc
ount
er
Awareness
Recogni5on
Awareness Resonance
Developm
ent Understanding of
compa5bility Piqued interest
Acknowledgement of rela5onship Friend
ship
Contextual trust Contextual loyalty
Contextual advocacy
Partne
rship Forgiveness
Advocacy Defense
Universal trust Universal loyalty
Social Media (Content-‐Based) Engagement
Community (RelaOonship-‐Based) Engagement
In-‐Person Engagement
Social Approaches Enable Scalable RelaOonships
1 Cost-‐EffecOve Customer Support (Autodesk, AT&T, CA Technologies, Google)
2 Engineering Ecosystems (Red Hat, SAP, Yahoo!, Oracle, eBay)
3 Cost-‐EffecOve Market Development (Ford, Pepsi, BarclaysCard, EDR, Zipcar)
4 Internal Efficiency (CSC, BASF, Nike) InnovaOon
(Boston Children’s, Dell, SAP) 5
Top 5 Community Uses
Time
Impa
ct
Phase 1 – Strong Hierarchy
Phase 2 – Emergent Community
Phase 3 –Community
Phase 4 –Networked
Behavior Change
Pull
Growth
Transform
CommuniOes Mature and Change
Process Element Type of Community Metric
Research and Discovery Market network, communi5es of prac5ce, customer communi5es, partner communi5es
Quality • Be"er inputs • Be"er alignment with markets ProducOvity • Faster 5me to answer/insight
Work Status Team networks, func5onal communi5es
ProducOvity • Reduced mee5ngs • Micro-‐mentoring • Alignment • Focus on issue resolu5on
Data Analysis Team networks, func5onal communi5es, communi5es of prac5ce, customer communi5es, partner communi5es
ProducOvity • Shared ownership of analysis • Broad buy-‐in of issues and framing • Faster awareness and buy-‐in for analysis
Content Development Team networks ProducOvity • Ongoing alignment as content is developed • Less wasted work
Stakeholder Review Team networks, communi5es of peers/prac5ces
ProducOvity • Transparent decision making process • Be"er sensing of poten5al responses
(crisis management) • Shared ownership of decision
Communica5on of Informa5on and Decisions
Func5onal communi5es, communi5es of prac5ce, customer communi5es, partner communi5es, organiza5on-‐wide networks
ProducOvity • Alignment and shared situa5onal awareness Quality • Be"er understanding of reac5ons (crisis management)
Direct Impact: Measuring Cost and Quality Gains
Process Element Type of Community Metric
Fla"en Access to Knowledge Communi5es of prac5ce, func5onal communi5es
Reduced Time to Innovate • Quickly gather exis5ng exper5se • Understand accurate state of development Improved Quality • Add to exis5ng knowledge rather than replica5ng Reduced Waste and DuplicaOon • Know what the organiza5on knows
Tacit Opportuni5es Market network, communi5es of prac5ce, customer communi5es, partner communi5es
InnovaOon Quality and Demand • Ability to understand issues before they are ar5culated InnovaOon Cycle Time • Solve problems in step with demand forma5on, not
sequen5ally Customer-‐led Crea5on and Co-‐Crea5on
Customer communi5es, partner communi5es
InnovaOon Extension • Fills roadmap gaps • Reduces investment in high-‐risk projects Demand GeneraOon • Develops customer advocates
Listening and Watching Market networks, func5onal communi5es, communi5es of prac5ce, customer communi5es, partner communi5es
Alignment and Revenue Growth • Align products and communica5ons with exis5ng
conversa5on and language which improves relevancy and adop5on
Indirect Impact: Measuring Revenue and Growth
S O C I A L I N N O VAT I O N
S O C I A L I N T E L L I G E N C E
S O C I A L C O M M E R C E
Extract intelligence from observable customer behaviors and conversaOons to equip our colleagues with insight into customer hot topics, burning issues and new opportuniOes
Use the wisdom of the crowd to drive higher quality soluOons and innovaOons that be<er meet customer needs and therefore have greater market success and impact
Leverage our reach and influence to drive speed and to dramaOcally increase leads and revenues both organically and through targeted campaigns
S O C I A L I N S I G H T
Enable customer success through the acOve sharing of knowledge, soluOons and best pracOces to drive excellence and innovaOon
SAP Social Strategy: Driving InnovaOon
• SAP Community Network – 2.5 million members – 3,000+ discussion posts per day – 9,200 acOve bloggers – 9.3 million total messages
• SAP.com – 2 million unique visitors per month – 72 countries, 40 languages
• SAP’s presence on social media – Over 1 million friends and fans
• Social media tools and governance • Events
– SAP TechEd, SAP Technology Forum
Digital, Social and CommuniOes at SAP
All Rights Reserved, The Community Roundtable, 2012
of companies describe themselves as fully socially networked
Amount of value that could be generated annually from corporate use of social technologies
Factoids
Linda Y. Cureton, CIO of NASA
Sandy Carter, SVP IBM Mark Yolton, SVP SAP
Mark Bertolini, CEO of Aetna
Sco< Monty, Head of Social Media Ford
We Want to Learn from ExecuOves
Command and control. Primary
modes of communica5on are in person, phone & email. No use of many-‐
to-‐many communica5on
tools.
TradiOonal
Tes5ng the waters. Not suppor5ve of
the use of social as a viable solu5on for
business. Silos and not
connected to the business workflow.
Piqued
Commi"ed to a few social
ac5vi5es, but most
communica5on s5ll occurs through tradi5onal
channels. Seeing quick wins.
Experimental
Engagement with key
stakeholders via new social channels.
Beginning to see correla5on
between social ac5vity and
business results.
Social Social business is integrated into the DNA of
doing business with all
cons5tuents. Opera5ons are op5mized for collabora5on and innova5on.
Networked
We Need to Understand the ExecuOve Journey
Social business cannot be fully achieved if execu?ves do not incorporate social approaches in the business – in what they
say and what they do
People not tools drive innova?on
Break down the silos 2
We compartmentalize creaOvity Try to control it, set targets, apply rules Make it the domain of parOcular job Otles Or box it into brainstorming sessions
A massive opportunity to have a different relaOonship with your customers, partners and
employees
Co-‐creaOon, crowdsourcing, crowdfunding neilperkin.typepad.com/
Contact Me: [email protected]