Social Media – ITSinsider

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.

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.

They’re Real, and They’re Spectacular

The 2.0 Adoption Council is off to a rockin’ start. We’re about 7 weeks into our new venture. I launched the Council on 6/26/09 on LinkedIn. We’ve sinced move our conversations to Socialcast (7/13/09) and the Jive SBS platform (7/15/09). We currently have about 50 members. During our weekly Council conference call last week, we discussed the size and scope of the Council. I mentioned that I’d like to get the Council to 100 members. I am in the process of considering various membership models, but my intention for this first 100 inaugural members is membership will always be free or very low-cost. I’m currently reading Chris Anderson’s “Free” and have taken away a number of great ideas from it already.

Anderson talks about the “is it worth it?” flag when making a decision. With free, “that flag never goes up and the decision is much easier.” In my opinion, having tracked Enterprise 2.0 for nearly three years now, the “market” is not about transactions, but about relationships. If you have a solid understanding of what drives the SocialWeb, you should appreciate why “Free” is the best pricing model for the Council startup.

Creating value in the Council is opt-in. The more members participate and share, network effects will amplify the value each member receives individually. We have the potential in this group to do much better than Jakob Nielson’s 90-9-1, considering each member only has to commit a fraction of their work week/personal time to participating in the Council. But considering all members are socialweb savvy, I expect contributions to grow steadily as more members draw greater utility from the conversations and connections.

Take a look at the market leaders who comprise our Council. All of the members here have been personally vetted by me. Each is engaged in some facet of Enterprise 2.0, social media, or social computing. As far as I’m aware, nothing else like this exists on the planet. We got a nice endorsement from Andy McAfee this week too.

I took a quick snapshot of who the group is and what they’re currently budgeting for spend on Enterprise 2.0. About half of the members answered the survey already (in bold). The members come from all areas of the business: CIO/IT, Knowledge Management, CTO/Innovation, HR, and Marketing. In fact, it turns out that 64% of our surveyed members come from LOBs, not IT. Regarding spend, I found it extremely interesting that 36% of members are budgeted to spend $1 – $5M on their social computing strategy/execution. Another 40% are still in the planning stages, which I find to be very promising and a real boon to future spend coming from these market leaders.

I put up a simple web site this week at www.20AdoptionCouncil.com. I’ll be adding more content there over time. We are also working on an external community similar to what Jerry and Robin have done with Social Media Today. Please let me know if you’d like to be an inaugural blogger there. The invitation is extended to all regular readers of ITSinsider and, effectively, the entire Enterprise 2.0 Community. Our Council members will be blogging there as well, so you will have the opportunity to comment on their content and interact with them directly.

Very exciting times we are living in… Enterprise 2.0 is, indeed, real and spectacular.

Jive Goes Bigger (Than Ever)

Now Business Is Social from Jive Software on Vimeo

I’m not sure you can announce your leadership in a category, but that’s what Jive has done with the announcement of its Social Business Software application suite — Jive SBS 3.0. The product does bring a deliberate focus to the logical organizational interests of a social enterprise– namely, Employee Engagement, Marketing & Sales, Customer Support, and Innovation. With that segmentation, along with an overhaul of its Jive Clearspace 2.5 released last summer, the software has been reborn– perhaps in the original image of its founders, according to Sam Lawrence, Chief Marketing Officer. With this new release, Jive is stridently targeting IBM and Microsoft customers with what could prove to be a superior solution.

Lawrence is the beloved Enterprise 2.0 author of the “Go Big Always” blog. For years, he has been framing the issues facing the “category” in entertaining and educational ways. For the wholesale formulation of the category (re)definition, Lawrence solicited help from customers, industry analysts, and other influencers. Lawrence sees the market space in terms of a vast social capital marketplace where business intelligence meets interpersonal relationships. It’s powerful stuff and the software now enables levels of insight that were unavailable from one company until now. The emphasis Jive is taking toward effecting business results is also refreshing.

The key new enhancements include:

Bridging: The ability to view employee, customer, and partner communities in a centralized, customizable dashboard.
Analytics: Indicators that cull from a data warehouse and track activities in the enterprise
Insights: Detailed reporting including sentiment and engagement
Video: Secure, high quality video for conversation and training
Social Bookmarking: Capture and share content from internal and external sources
User Experience: A refreshing, simple and elegant look and feel that spurs adoption

Jive says beta versions of its new product suite are in the hands of customers today. We’ll be looking for customer feedback on how the transition is going. In the meantime, Jive has taken a tremendous leap ahead. I would have liked to have seen an enterprise micro-blogging capability, such as Socialtext recently announced with its AIR-based Signals, or more comprehensive wiki capability for deeper collaboration among work teams. With that said, however, I give Jive much credit for taking the lead on forcing a category definition and building its future on the back of that architected vision.

And the Academy Award goes to… Atlassian.

Atlassian is the Enterprise 2.0 sector’s Slumdog Millionaire. It’s an inspiring rags to riches story of two young college graduates who set out to earn at least a “graduate salary” (approximately $30K/yr USD) by creating a business, rather than taking a corporate job like their university friends did. Now, Mike and Scott were not living in a slum and neither did pure luck have anything to do with their fortune; moreover, their example is establishing a high bar for success for enterprise social software startups.

Last week, I got into a bit of a snit with Atlassian’s marketing folks on Twitter because they approached me about writing a post on Atlassian reaching $100M in all time revenue. Now, I knew the company was a growth engine, but I found it hard to believe they’d become a $100M company since the last time I had spoken to them. It turns out it was all a big misunderstanding. Mike Cannon-Brookes told me today that from the beginning, Atlassian’s backoffice systems have been tracking total cumulative revenue. On February 17th, the company had crossed the $100M threshhold. Mike actually tweeted it and Atlassian’s Laura Kahlil blogged about it on the Atlassian blog the next day. I didn’t understand the significance of the $100M cumulative number and was concerned people would mistake the number for annual sales. Listening to Mike talk about how they noticed the number and got excited about it as a milestone made it obvious to me I was wrong to give them a hard time.

I wrote about Atlassian in October of 2006. They impressed me then, and their continued success is a bright light in otherwise dismal economic news. Atlassian has pumped millions into the Australian economy and has created hundreds of jobs around the world (Atlassian has offices in 5 cities, including San Francisco). Further, their strong organic growth is a testament to the power of listening to your customers and focusing on delivering products customers love.

We can debate product features and what’s fashionable in enterprise social software for days on end. But in today’s economic climate, I celebrate success, job creation, growth, and independence.

Kudos to the Atlassian team.

(For longtime ITSinsider readers… it wasn’t lost on me that Michelle and Barack chose Etta James’ “At Last” for their ballroom dance on the night of the inauguration. )

Update: Just found out Mike was nominated by the World Economic Forum as a Young Global Leader for 2009. Smile.