Two Surprising Statistics on Social Business Progress in the Enterprise

Over the summer, we conducted a short survey among the Social Business Council members to gauge where large enterprises are regarding their progress introducing social to the enterprise.  The request was made by a Council member who was looking for some hard benchmarking data he could share with his team.

We wanted to answer the question:

“How far along are the leading early adopters?”

The results were eye-opening.  So many of us who track the market are always saying how early we are, how we are just at the beginning of this transformation,  how it could take a decade or so to really start seeing the fruits of our efforts, etc.   But, we really didn’t have a lot of  hard evidence.*  Now we do.

The first eye-opener was where early adopters report they are.

Nearly two-thirds of the companies surveyed (57%) reported that that only 10-20% of their eligible workforce is active on the platform.  The flip side of this statistic is, of course, that there is a lot of room to grow, and it opens up large opportunities for consultants, vendors, and social business advocates to help companies succeed here.

The second big reveal for me was the number of companies who indicated there is no real integration between their external social initiatives (social media/customer outreach) and their internal social efforts (a.k.a. Enterprise 2.0).  It was nearly unanimous: 96% reported there was nothing today that integrated their social business initiatives, although nearly half reported this was on the planning board.

In short, the survey asked 10 simple questions, yet essentially debunked some of the hype that circulates on the social web regarding the state of the market. In essence, the social business phenomenon is real, but all stakeholders vested in the market would be well-advised to exercise some patience in expecting game-changing results.

Dion Hinchcliffe wrote a longer piece on ZDnet with some of his takeaways, and you can download the report here.

*These survey results reflect the progress of  a unique cohort: very large enterprises with more than one billion USD in annual revenue that are actively engaged in a social business initiative.  Smaller organizations may report different results.

 

 

 

Setting Sights on New Heights with 7 Summits!

Snapped a shot of the Marquette crew while walking to the office last week. Thought it was a fitting visual metaphor.

Announcing my new gig today! [Press Release]  I’ve accepted an offer to work for a gutsy startup with big plans: 7 Summits. Based out of Milwaukee and Chicago, this fast-growing team has been #killingit building award-winning Jive communities that succeed on a foundation of strategy and solid user experience to deliver clearly articulated business results.

I first heard about the firm via my friend and ex-Moxie (then, nGenera) colleague, Steve Elmore. Steve had recently taken a position there as VP, Social Business Strategy.  I’ve known Steve for a long while, and he’s definitely one of the handful of my industry friends that sees the opportunity for social business through the same lens I do.  When Steve started telling me about the culture and vision driving 7Summits, I felt like it was kind of a dream come true for both of us if we could both be part of a team that shares our core social DNA.

While I was researching career opportunities in the market, I received a couple of other great offers.  But, during my evaluations, I kept coming back to 7Summits.  I ultimately made the decision on a short list of defining criteria:

Experienced Leadership that Executes with Rigor

7 Summits is exceptionally well-managed.  There is a mature and focused approach to goal-setting and performance that permeates every facet of the business. As a result, the company is on a strong trajectory of organic growth. The founders, Paul Stillmank and RJ Reimers, held executive positions at Manpower, Whittman-Hart, and Accenture and know how to scale a services business. The core focus on business direction, achievement, and results combined with a sincere intention to build a company culture with character and integrity at its core is refreshing and highly attractive.  One of the most impressive indicators for me was the outstanding reputation the company enjoys among the clients I surveyed.  Most especially because the company has done very little to elevate its brand.  In other words, the reputation was earned the hard way with performance vs. promotion.

A Culture Based on Shared Values of Openness and Inclusion

The company is run as a social business.  Content is openly shared on the company’s internal Jive instance and daily stand ups occur to gauge how everyone in the company is doing.  Every voice matters and the company operates as a team. Culture is the single greatest asset to a services company. I learned this first hand in my experience covering the largest IT services players in the 90s.   During the interview process, I perceived a company culture based on group goals, a dedication to excellence, and a genuine concern for the customer. (Fantastic!)  My personal goal is to fit in seamlessly with the team and expose this tremendous esprit de corps to the outside world.  The company culture and story will be a magnet for customers, partners, investors, and talent for years to come.

A Platform for Social Business Advocacy

As a trusted advisor to its clients, the company matches passion about the promise of social business transformation with purpose and provides its clients a roadmap for how to achieve the promised results.  And the “soft” side of social does not get buried in the business of delivery.  In fact, “Enhancing people’s lives” is part of the company’s mission statement.  In other words, this is a company that gets it. Internal social, external social, and everything in-between.  It’s the first dedicated firm in the U.S. I’ve come across whose business is centered exclusively on delivering social business solutions to every corner of the market: Marketing, IT, or any progressive business unit that wants to introduce social capability to operate more effectively.

In short, I look forward to introducing this company and the transformational work it is doing to my regular readers, fans, and friends of social business.  We will be heading to JiveWorld next week and I will be proud to participate in the fun programs the company has in place to galvanize the believers.  (Please let me know if you’ll be there!) Additionally, the company is on a growth trajectory and is recruiting smart talent looking for a new home to exercise their passion for this work that we’ve all come to love.  I encourage you to apply for any of our open positions.  If I know you personally, make sure to drop me a note too, so I can add some texture to your application. You can reach me directly at susan.scrupski at 7summitsagency dot com.  And keep checking the job board.  New positions are going up all the time.

Onwards!

 

Social Business Summit Series 2012 – Last Event NYC

360 degree views of Manhattan from the Tribeca Rooftop.

Dachis Group will be concluding its 2012 Social Business Summit (SBS) Series with a final event scheduled for September 12 in New York City.  The series is designed to educate, inspire, and otherwise evangelize the good news about Social Business worldwide.  Sponsored by IBM, the series provides a series of leading practitioners and thought leaders who provide unique views on their experiences and insights on where the social phenomenon is today and where it is headed.  The day will feature in-depth TED-style talks that will cover how the social phenomenon is changing the landscape for commerce worldwide.  Special emphasis will be placed on the growing role big data and social analytics play in providing the measurement needed for brands to compete in an increasingly open marketplace.

The NYC event will be held at the popular trendy Three Sixty° at Tribeca Rooftop.  Speakers include longtime friend of Dachis Group, Daniel Debow, VP  Salesforce Rypple; as well as Perry Hewitt, Harvard University, Chief Digital Officer; Social Business Council member  Tiffany LaBanca, News Corporation Senior Vice President, Internal Communications; and Melva Benoit, Fox Broadcasting Company and MundoFox, Senior VP, Analytics Innovation Research and Strategy.  Of course, an  Armada of Dachis Group luminaries including Jeff Dachis, Erik Huddleston, Dave Gray, Dion Hinchcliffe, and Lee Bryant will be presenting as well, along with IBM’s Matt Collins, Vice President Marketing, Collaboration Solutions and Social Business.

If you’ve not made it to one of the prior SBS events, get your request in.  Other events have overbooked early, and we expect the Manhattan event to sell out early.  These events are a nice combination of formal presentation and informal casual conversation and mingling among social business friends and fans.  Hope to see you there.

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Social Maturity at Scale: From Evangelism to Execution

It takes a village to raise a tectonic shift in the way companies communicate and operate at scale.  No, it will take a network of connected villages.  And it will take  over a decade to get past the early adoption phase for social business transformation inside large enterprises.  A few threads and blog posts are prompting me to write a few thoughts on where we are in the evolution of social business maturity.  The one that most notably hit home for me was Luis Suarez’s Willy Loman, Death of a SocBiz/E20 Evangelist post this week: Dear Social Business Evangelist Where Art Thou?

We discussed Luis’s post internally in the  Council, and it falls on the heels of another conversation we had recently regarding the perception that internal social business transformation is failing or has failed in many companies.

This poll is very informal, and granted, we have a survey bias in that  all Council members are working hard to bring social transformation to their enterprises.  Yet, there are ZERO failures reported and even the 25% of the members who indicated they feel they’re way behind are not “giving up.”  All our members recognize this is a long haul and are putting in place the mechanisms to realize a fully-integrated social business in thought and deed.

 

Some Council member comments:

“If this is failure, I couldn’t handle success.”

“On the other side of the hype curve is a plateau, not a canyon.”

“No. Not at all. Do we have 100% adoption in the company and every single employee conducting every single work activity in a social way? No.   Have we changed the way a significant number of people in the company (let’s say somewhere between 30% and 50%) look to solve their problems, voice the opinions, raise ideas to places they could have rarely reached before?  Yep. Have we impacted employee engagement scores in a positive way?  Yep.  Is the cost vs. the benefit so prohibitive that is gives execs pause to consider the ROI more closely?  Not even remotely. They are bought in to the value. Are execs sharing openly and daily? Nope.  Some are trying though…some better than others.       Are execs supportive of the conversation taking place and willing to jump in occasionally when the attention level and criticality warrant doing so?  Yep. Can I keep up with the demand of people requesting consulting about ideas on how to leverage “social” in their business areas in ways we never even considered?  Barely.”

“+1 to [Council member] in his comment about changing “measure” to “observe”. I would ask the naysayers if they’ve ever heard about Lean. Social tools and their usage patterns are allowing us to collaborate more effectively and to make work visible so it can be improved. Activities. Connections. Flowpaths. Improvement. These are the four “rules in use”. On a factory floor, improvement comes from the ability to see how activities interconnect to get parts out the door. I would argue that a fundamental, basic problem with knowledge work as most people do it is that it went underground with desktop productivity and email. It is completely invisible. With the use of social tools and their integration into the flow of “real business transactions” (such as Chatter, etc…) – that’s how we make the work visible so we can improve it. That’s where I see value in companies like mine; It is certainly not in, ‘hey ya’ll, we have a blog, documentation wiki, and micro-sharing activity stream so now we’ll be more profitable.'”

“Without our [social software platform], there is simply no way that our corporate culture would have had the major shift it has in the last four years. And that shift has allowed [Council company] to completely transform our business from [a dying model to a thriving one].”

“+1 to [Council member’s] ten-year adoption, as I always see it as our long journey towards a high mountain range. After nearly 2 years of ground works, I consider we are just passing the first base-camp – the “awareness” camp.  We start to see some paths leading us toward the 2nd camp, but not the whole path to the end.. not yet. Yes, we haven’t reached the end and we are not able to measure where we are, but we know we are in progress – step-by-step.”

“This is no different than adoption of a new technology that changes the way we work dramatically, and how we communicate.  I bet that the history of email adoption in the past is no different, and had the same resistance.  Changing the way we communicate, which has been done for decades, and people who have lived for decades in that mode in not going to happen overnight.   When people come to work, they want to be productive, and want to understand how communicating in a different manner will achieve their end goals.  I believe this is at least a 5 year journey… I have worked at multiple companies, and when the top leadership makes a direction change, or wants to align multiple fragmented divisions together, that change takes 5 years or more since it is about changing the culture, how people work with each other, and they want to align themselves to the new strategy.  Also, people changes are made to enable faster traction.  In the social journey, if we don’t give the same importance, have top leadership backing, and put the right people in the right place, the journey will be slow, and organic.  I am a strong believer and proponent of this social journey, and I see success down the line!

In short, the era of evangelism is over and we should all be rejoicing that the suits are showing up.  One of our members said, “I’m sending the suits.”   At the core of the transformation, however, is the ideals that innovator/disrupters like Luis Suarez and many more of my e20 friends have championed from the beginning: transparency, collaboration/sharing, authenticity, and even trust.  Trust may be the most difficult challenge for the 21st century enterprise, and I sometimes wonder if all companies can succeed here.  (See this exceptional post on “Relational Trust” by Peter Stoyko that explains this elegantly.)  But, at the end of the day, the planks of humanizing the enterprise will succeed, along with the commercial interest all profit-oriented enterprises have in generating returns for their stakeholders.

The directive for all evangelists has moved from enlightenment to engagement.  The drive to deliver social engagement at scale is the next crusade.  I’m interested to see the role that gamification companies such as Badgeville and Bunchball will bring to the social business sector, as well as innovative metrics and dashboards that are being developed such as Moxie Software is creating for its clients  that measure and report on business outcomes vs. platform activity.  As the customer marketing (heretofore social media/SCRM) data begins to pour through the pipes in the firewall, the ability to measure and make sense of that social engagement will be even more profound.  The development team here at Dachis Group is building a formidable arsenal of tools and services to measure this kind of engagement at scale, as well.  (Sign up!)  We are still in the early stages of the transformation that so many of us predicted and, to some degree, made happen.  The challenge for every company is to stop trying to homogenize the market and rather celebrate the diversity of approaches that exist to succeeding with social business.  Each enterprise has its unique opportunity to succeed in this space, and it still takes the courage and creativity of the Intrapreneur to identify these opportunities, spur adoption of these new principles, and ferret out the next one.  So, the evangelist’s job has become more serious and less pious.  And that only means we are succeeding and growing, in real business terms. Everybody take a bow. And put on your suit.  This is happening.

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Pinch me. SAP is Dreaming up Social for the Enterprise.

With Patel’s new position, SAP recently moved “social” into its cloud group where it will support all SAP suites and concentrations (CRM, for example) in a new social platform that will be structured to support the business horizontally and seamlessly across on-premise and cloud offerings. The group is building what they’re calling, “Project Robus.” (Latin for resolve or purpose.)

This was my 5th year attending SAP‘s gala SAPPHIRE event.   You can see from my previous blog posts, a recurring theme in all of them is SAP’s cold shoulder toward all things social.

2008What I-know-I-don’t-know about E2.0 and SAP from Sapphire ’08

 “Enterprise 2.0 is just not a burning issue on the minds of top SAP execs… SAP execs mirror the same sentiment as our executive clients: they have serious businesses to run– not a lot of time for the giddy consumery stuff. SAP software fuels the nitty gritty of hard-core business processes for most of the largest enterprises in the world. Where blogging (for example) fits into getting a raw material through the factory floor to a finished product, booked in inventory and ready to move through a supply chain is just not obvious to me right now. So the likelihood of an Enterprise 2.0 bolt-on to SAP is just as slim as it is naive.”
“So, once again, SAP invited me to its annual SAPPHIRE and ASUG event. I find myself wondering if SAP will get return on their investment in me once again. The answer is, probably not…  The reality is SAP and its global customer base are just not ready for the socialization of the enterprise. It’s just not a topic that commands attention at this massive event (despite my valiant efforts to bring it up in every executive briefing). The majority of conversations at SAPPHIRE revolve around common themes such as decision-making, analysis, data, spreadsheets, databases, reports, statistics, and business processes. In other words, the real work that goes on in real businesses.”
“For me, SAPPHIRE presents a unique opportunity to re-calibrate and diffuse the hype chamber that self-perpetuates around the 2.0 phenomenon.   SAPPHIRE is the 2.0 Rehab that I voluntarily commit myself to every year for one week. Only at SAPPHIRE do I get an opportunity to see the world the way my Council members do– that the 2.0/social business hoopla is enjoyed and shared by a small minority of corporate professionals.  Through the eyes of SAP customers and the SAP eco-system, I gain unique insight into the tremendous task ahead which involves a host of issues, not the least of which is tying 2.0 transformation to the enterprise business processes that run the world’s most successful businesses.”

This year, in 2012, it looks like things might be taking a new turn.  At least the lip service is on message.  Readers of this blog should know SAP recently hired the #e20 community’s good friend Sameer Patel to assume the position of Social Czar at SAP.  Patel has his work cut out  for him, however.  The two social platforms that qualify as social at SAP are StreamWork and SuccessFactor’s Jam (formerly CubeTree).  Two platforms that, frankly, don’t see much social traction in large enterprise. Neither one ever comes up in a landscape conversation of social collaboration software, and turning up examples of hard core users has been pretty slim among those of us who keep an eye on this category.  CubeTree, in fact, was never a player.  With Patel’s new position, SAP recently moved “social”  into its cloud group where it will support all SAP suites and concentrations (CRM, for example) in a new social platform that will be structured to support the business horizontally and seamlessly across on-premise and cloud offerings.  The group is building what they’re calling, “Project Robus.” (Latin for resolve or purpose.)

What’s probably most significant about Project Robus is that all development is being led by SuccessFactor’s co-founder and  technical cloud guru, Aaron Au. Au  is the lead architect and will run engineering for the project.  The operating vision behind the socialization of SAP’s massive ENSW footprint hinges squarely on integrating social with business process.  As Patel describes it, “This is core infrastructure.  It’s like application servers and middleware.”  The orientation is on business activities first, and social features second.  In other words, use cases will drive how and when social interacts with a business process.  All social presentations within the SAP product suite will touch the Robus platform.  My blogger colleague Alan Lepofsky describes it as “social plumbing.”

The pressure to deliver social is on SuccessFactors CEO Lars Dalgaard who is the Board executive advocate for social. Dalgaard is breathing new life and new ideas into the software behemoth.  He appears to have much support from co-CEOs Bill McDermott and Jim Snabe, as most cloud and social questions asked at the scheduled media/analyst interview were turned over to Dalgaard.   There is evidence in the market that SAP has finally embraced the principles of a more collaborative, social business world (see Jim Snabe’s opinion piece in the Financial Times, “Social Networking and the Future of Business“).

I want to believe SAP will pull this off, but there is a small part of me that wants to scream, “You’re doing it wrong!”  It’s as if SAP is looking for a software solution to a human opportunity.  Focusing on the unstructured data and time spent between workflows is anathema to SAP’s heritage and corporate culture.  And even if the executive and management ranks see the opportunity, the rank and file are going to be puzzled.  We were sitting at dinner with a number of SAP mentors and I asked if any of them were using StreamWork.  All heads shook no.  One mentor said he wouldn’t even bother logging on.  My enterprise blogger friends roll their eyes when I talk about how social is about reinventing the way we work.  But they’re not seeing the changes I’m seeing in large organizations that are successful with social reinvention.  Luckily, I’m not the only one talking about this.  The enterprise is ready for a different way to work.

But, like Kermit, it’s the lovers, the dreamers, and me.  Those of us who are under Social Business’ spell are true believers.  I hope Lars Dalgaard and the SAP executive team can execute on the human potential of social, but I’m still a bit skeptical.

See Dalgaard’s “dream” app.  Here’s to hoping they pull it off.

Social Business by the Numbers

While the blustering goes on in the blogosphere, I thought I’d (ahem) cut to the chase and get serious about the Social Business opportunity in, well, spreadsheet terms. I popped into a little discussion  between Adam Holt at Morgan Stanley and Tony Zingale and Bryan LeBlanc  of Jive Software (JIVE).   Although specific business gains directly related to Social Business can’t always be divulged by large companies for a variety of reasons, we can take a look at the category as an investment play  and make some judgments about its viability. To that end, here are a few key points CEO Zingale and CFO LeBlanc made to the investor community:

  •  What’s different about the social business category is there are multiple entry points for a sale.  The sale could come from IT, Sales, Marketing, Customer Support, HR, Corporate Communications or more often than not a  Business Unit.  < Key learning: this is different in software investing.  Buyers abound.
  • The Social Business story has reached a tipping point. No longer are sales “missionary” sales.  There are line item budgets for social business software, and large RFPs are on the market from F1000 companies who are investing in these platforms.  Further, every software company is now incorporating social into its product suite, albeit mostly still relegated to “silo” functional software for specific departmental needs (Sales, HR, etc.).
  • Social Software is not a “replacement” category of software like  Salesforce was with Siebel or Workday is with various ERP modules.  This is not a cloud v. on premise alternative. (Jive sells both on and off premise.)
  • The deals are larger.  Jive closed three million dollar plus deals in the fourth quarter of 2011.  Large institutions in various industry segments (PwC, Thomson Reuters, and Ace Insurance) chose Jive  to introduce a new way of working to their firms.
  • Social Business software delivers real value to every knowledge worker in the enterprise. The market opportunity exceeds that of traditional enterprise software which typically serves a discrete business unit function (manufacturing, HR, finance, sales, etc.).

The JIVE call has some interesting nuggets about how JIVE is uniquely poised to compete against the other two main competitors in the enterprise space: IBM and Microsoft, but the essence of the story is about the legitimization of the social business category for the institutional buyer. More importantly, this investor story is not even about technology and tools. It’s about organizations behaving differently by connecting and engaging with constituents. The tools will come and go, but the behavioral change is a paradigm shift well worth the early entry.

Jive management took the company public on  December 13.  Since then, the stock has doubled and Jive’s market cap is $1.24B. Institutions hold 82%, so lots of pension funds are betting that social business is real. I’ll side with Wall Street on this one.