Social Business Design

Attributes of a Socially Optimized Business

Once again, I had the great pleasure to work with my colleagues on an XPLANATiON with our Social Business Council members. We interviewed a core group of our members to identify the attributes that comprise the whole of the socially optimized business. I think you will agree, the results are fabulous.

Where are you on the course from Start to Social?

Attributes of a Socially Optimized Business

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Special thanks go out to members @briantullis, @jimworth, @kendomen, @kimberlymahan, @kristenritter, @seanwinter, @dpontefract, @bricejewell, @robcaldera, and Joachim Stroh.

The Sabermetrics of Social: A Weapon of Mass Disruption

Jonah Hill is not a sexy guy. He was perfectly cast, however, juxtaposed against Brad Pitt in this year’s academy award contender, Moneyball. If you’ve not read the book or seen the film, the plot premise centers on the true story of how an under-financed ball team, The Oakland As, leveraged the black art of sabermetric principles to divine a record-breaking season in professional baseball. The true star of the film was Hill’s character, Peter Brand (Paul DePodesta in real life), who brought a dweebish Ivy League blandness to the romance of American baseball by introducing, well, math. DePodesta was one of, “a new breed of front-office executives whose personnel decisions rely heavily on analysis of performance data, often at the perceived expense of more traditional methods of scouting and observation.” (source Wikipedia).

Stripping out the emotion and the soft factors that tally up player value in baseball is analogous to what’s going on today on the social web. Everyone’s got their eye on the superstar plays (say, the Old Spice guy, @comcastcares), but they’re missing the raw analysis of true performance metrics. Making sense of the nuanced patterns is the key to securing competitive advantage.

I saw the film this weekend and couldn’t help making the connection between the film’s premise and the Social Business platform we’re building at Dachis Group. We launched the Index publicly about three weeks ago. The SBI is just a lightweight view on a monster social vacuum pulling social data from literally millions of sources about the leading brands in the world. In order to unleash the power of the tool, you need to get in there, ensure your brand is pulling from all your social sources and start looking for significant patterns. The social business data platform exists to help brand managers and interested brand marketers discover how social is impacting their brand performance.

We invite you to use this data to hone your social strategy. As Forbes pointed out recently in its cover story, “Newly armed customer and employee activists can become the source of creativity, innovation and new ideas to take your company forward.” Harvesting those data sources is our job, but it’s going to take a Peter Brand (Manager) to unlock what the data is telling you. Relying on consistent, verifiable data analysis, you’ll be able to make sensible predictions that can start delivering wins in the same way the A’s racked up its record-breaking season. Big data may not be sexy, but gaming the win potential is an irresistible seduction.

There are a host of extremely interesting services coming from the SBI development team. Very soon, you’ll be able to measure business outcomes framed by a distinct set of measures and metrics that are driving those outcomes. With user-assigned metadata, you’ll be able to view a variety of dimensions on those outcomes. This is just a taste of what’s in store. Social data has the potential to become the long tail that wags the brand dog. Make sure you’re taking advantage of an early mover advantage, before your competitor does, that is.

I, For One, Welcome our New Social Data Overlords

Historically, the trouble I’ve always had with social media was the precision deficit surrounding the interpretation of its influence. It always seemed to me that if you could get, say, Chris Brogan to talk about anything, you were successful with social media. Okay, maybe that’s an exaggeration, and social media has really never been my area of expertise in the spectrum of all social business. Readers of this blog know I focus more on the internal enterprise side of social business. Because, well, it is more rational maybe? See my coverage of my first SXSW Interactive.

BUT…

Before I got back into the technology sector in the 90s, I spent a solid few years in the Advertising business. And not digital or online advertising (it didn’t exist yet). In the real Advertising (TV/Broadcast/Print) world. (With a capital A.) Think of it as Mad Men for Yuppies (late 80s). I entered the ad world as an Account Executive on the IBM account. The agency I joined, LGFE, was a boutique outfit, a part of JWT. We had 100% of the IBM business. In 1980 dollars, we had a $160M annual media budget for IBM and it comprised the lion’s share of the agency’s billings. The agency was best known for two things: 1. its launch of the IBM PC and 2. its famous Executive “breakaway” which literally made Advertising history. But those are great stories for another day. Like most LGFE employees after the breakaway, I skedaddled my way down Madison Avenue to a new position with Ogilvy & Mather where I helped teach our Creatives about the Unix operating system. Again, great stories for another day, another blog. I just wanted to establish a little Mad Street Cred before I get to the heart of this post.

When I think about the burgeoning world of social media, I compare its trends and “findings” with what we were doing 30 years ago in Advertising. Even back then, for all the hoopla, big expense accounts, private limos, and 5-star hotels, Advertising was pretty serious stuff. It was all about the numbers. (We all thanked the technology gods for Lotus 1-2-3.) Campaigns that strove to cultivate an emotional connection to a brand were paid for by executives who wanted to see stone cold returns on their investment. And, I’m going way out on a limb here, after 30 years I’m pretty sure that hasn’t changed. In fact, the pressure to deliver results from media spend is probably more fierce than ever considering the fracturing of a traditional media landscape that was fairly easy to manipulate in the old days before the Internet and mobile technology.

So fast forward to 2011. No, 2010. Erik Huddleston joined Dachis Group as CTO. When Erik first arrived, I wasn’t sure what he was going to do. Get our wifi working in the office or something. But, the next thing I knew, Erik was presenting at Defrag, whaaa? and young men in black tee shirts that said, “Hadoop” started skulking around the office. I finally got briefed on what this little dream team was working on buried away in remote locations around the world, and I was kinda blown away.

A beginning step in that effort is announced today for public consumption. Erik’s team has built a platform that crunches hundreds of millions of data points in near real time to deliver a view on how social a given company is – how they compare to their industry, their competitors – broken down as best in class by company, subsidiary, geography, department and brand. Culling from APIs, data buys, data partnerships, page scrapes, crowd-sourced data, company contributions, and our own internal data team, we now offer the Social Business Index (SBI) to anyone who wants to get a view into how your company’s brand is performing on the social web. Over 100 leading companies participated in the early access program to get the data refined and help develop useful insights for its use. The SBI offers insights for 26,000 brands from over 20,000 companies by analyzing over 100 million social accounts world wide, and hundreds of millions of other sources.

Again, the SBI is simply a lightweight lens on a massive platform that is compiling ground-breaking social data analytics and analysis. The SBI is free for the companies covered and anyone can sign up to see how your brand is doing at www.socialbusinessindex.com.

This first effort is just a taste of what is coming. Big data will yield something that has been inconveniently missing in marketing on a large scale: evidence-based marketing with business outcomes correlated to measurable metrics. Internet marketers have done a great job with what’s known as performance marketing, but with the advent of big data, marketing spend can be targeted with much greater precision and brands can engage meaningfully in near real time. In fact, interactive advertising has finally matched broadcast TV spend. Forrester recently reported that, “By 2016, advertisers will spend $77 billion on interactive marketing – as much as they do on television today.”

This post is a departure from what I typically cover regarding the Enterprise 2.0 sector, but I’m extremely excited about this work. On the road map is deep analysis into workforce/partner/supplier engagement, so the relevance for the enterprise is huge. Even having this type of brand intelligence will impact internal operations in many ways. Agile companies who can react quickly, will be competitive winners in their categories.

If Dachis Group is known only for its BSD (Big Social Data), then I am totally cool with that. Being first to market with real ROI on social is sweet, and will go far to relegate the buzzfest of social media 1.0 to the history books.

SMC Austin Chapter hosts a conversation on Social Business

Be there: Register today.

Just when you think you have all the answers, something crops up that challenges your beliefs on how Social Business works and will work in the future. Whether it’s new platforms/tools, new regulation, organizational changes, even world events — the Social Business world does not stand still and learning in this space is highly iterative. At Dachis Group and for our Social Business Council members, we face this reality day in and day out. The good news on Social Business is there are ample opportunities to increase and share your learning. To that end, I’m going to be moderating a panel discussion on Social Business at the upcoming Social Media Club Austin meeting next week. (Tuesday, 8/16 from 6pm – 8pm CT). I hope you can join us if you’re local, and if you’re not, I’m sure the tweet stream will be buzzing. The twitter hashtag for Social Media Austin events is #SMCA.

We’ll have a great panel of vendors (who just happen to have great “user” experience as well) relating their own journeys on transforming their clients, as well as their own companies, to become fully-functioning Social Businesses. There is a lot of collective wisdom represented on this panel of experts, so I hope you’ll join us in the conversation. This will be my speaking debut to our awesome local Social Media Club chapter (most active club in the world, outside of San Francisco I hear). I’m looking forward to mashing up my knowledge of the internal enterprise social space with the external expertise resident in this town, as well as meeting lots of new social enthusiasts.

On the panel we will have Jive’s Deirdre Walsh, who is somewhat of a hometown hero of mine as she led National Instruments‘ social strategy prior to joining Jive as Social Media Manager. Then, we have the amazing Kat Mandelstein who has been a terrific champion for Social Business at IBM and one smart cookie on all things social. Kat is also on the international board for the SMC and has done a great job supporting the Austin SMC chapter as Vice President. The other two panelists are Will Staney of VMware (which recently acquired Socialcast) and Jean-Claude Monney of Microsoft. I have not yet met Will or Jean-Claude, but have heard great things about them, so I look forward to hearing their insights. Will has an impressive background in introducing social media and adoption of social technology at VMWare with a solid foundation in community management and new media strategy. Jean-Claude leads Microsoft’s technical strategy in the Discrete Manufacturing industry, chairs the Microsoft High Tech Customer Advisory Board and represents Microsoft as the chair of the OAGi High Tech Council, a global B2B standards organization.

In preparation for the panel, we’re soliciting your questions ahead of time so we can get them into the session. Don’t be shy. Let us fashion the panel to suit your interests.

Send us questions you’d like to hear answered.

See you there!

Social Means Business

I just read Kate’s post on today’s announcement about Dachis Group acquiring Powered. I had to chuckle, because those of us in that “alternate universe, E20” used to think the same about the social media space. In fact, I joked to Peter Kim this year at the Enterprise 2.0 Conference in Santa Clara, “How does it feel not to be a celebrity?” I feel the same way at SXSWi. (Truth is, I didn’t even go last year.)

But, Kate is correct, the world is changing and fast. Every day one of our Council members, who’ve historically come from an E20 orientation – what we at Dachis Group refer to as “Workforce Collaboration” – is being asked to help out with the enterprise social strategy whether that means social media initiatives, connecting to suppliers, or partners. Some of our members have relocated entirely out of IT and into Marketing (who wouldda thunk?). And it’s not just IT and Marketing driving these initiatives, either. Social is touching every business unit in the organization.

I caution all our members to keep their eye on the bigger picture. The Council is expanding to embrace all facets of social business. Going forward, it will not be possible to separate where social media initiatives begin and e20 ends. And, every customer will tell you they rarely use any jargon when they’re presenting business cases to their executives. The language they use is rooted in the benefits of social collaboration, not the features. This is typically different for every company too, and becoming more and more strategic.

This next phase of the evolution of the social business market is about integration. Social Integration of people, process, and technology. Integration of Work, Society, and Technology. Integration of the past with the future. It’s all good, and it’s why I’m particularly thrilled to be a part of a company executing with precision on that vision.

A Year’s Summary of Personal Reflection IV

Every year for the past four years, after the Enterprise 2.0 conference in Boston, I have written an introspective piece about where we are on our journey bringing 2.0 to the large enterprise. These pieces tend to be idealistic, and I ask readers to bear with me. You can read their predecessors at this link.

I’ve decided to write a final piece in this series, as we are now well on the road to market acceptance.

In short, the Enterprise 2.0 journey reminds me of learning how to drive a stick shift my first car: a ’66 Ford Mustang convertible. Like every new driver, I was extremely excited about the prospects of getting behind the wheel and experiencing the life-changing freedom that comes with mobility. Each year the Enterprise 2.0 market has grown, it’s been like a new gear on my 3-on-the-floor stick shift.

1. Years 2006-07/Gear 1. We focused on just getting the clutch engaged and propelling the the damned thing forward. Those early years were the most difficult of all. I used every trick in the book to get people interested in the space, including invoking the name of Bruce Springsteen.

“I believe there is something BIG going on here– not because I’m an investor, not because I’m a CEO of a web 2.0 company, not because I’m a journalist of a SF-based publication, heck– I’m not even on the West Coast. I feel a little like Mr. Springsteen in those early days, playin’ his heart out in those NJ dives hoping someone would dance, or better– listen to the lyrics.”

A handful of us hardcore Enterprise 2.0 bloggers kept pounding away and trying to get some attention for what we all saw as something, “New under the Sun” to quote Andrew McAfee.

2. Year 2008/Gear 2. We got the thing to move by 2008 albeit in slow gear. Momentum began to pick up toward the end of 2008 with