Presentation on theme: "Change comes from within"— Presentation transcript:
1 Change comes from within Why social media outside the company isn’t enoughLeon Benjamin
2 What’s the story? Social media actually works Case studies and operational insightsBritish AirwaysMornflake (who?)Challenges, limitsWhy change comes from withinCommand & control no longer suitable for the ‘connected world’Social media is at its most transformative ‘inside’ the companyThe implications of an irreversible shift to network based models of organisationThe profound changes in the nature of workHow to adapt
3 “The workers should appropriate the means of production” Social Media Works14,463,346 auctions200,000,000 blogs21 Nov 2006Almost 4,000,000 articles(10 languages)>100,000,000 videos(65,000/day)“The workers should appropriate the means of production”1.5 million residents400,000,000 profilesAnd if that weren’t enough, it turned out what Marx was right after all.Once the means of production were distributed, the proletarians had stood up and created their own media realitySuddently we could blog, podcast, write, produce videes, etc.2009: "Twitter" is the world’s most popular English word
5 British Airways – Business Case Classes of Business BenefitIntangibleTangibleSource of contributionCustomer Loyalty & Brand AwarenessDirect RevenueLower Operational ExpenseCommentCustomer/Member profile√Customer intelligence & extending market reach at low costAdvocacy/pass through revenueSales channel for complimentary products/servicesGroup DiscountsSpecial offers to subscribersAffiliationViral salesMember-Member commercePackaging brand products to serve customer's own networkWeb Services, community, UGCForms deeper customer relationshipsCompetitive researchAccess to opinions using polls/surveysProduct development & feedbackLower service development costsPeer-to-peer self-helpReduces contact centre trafficMembershipFriends invitations. Member get member
6 British Airways - Metrotwin Social recommendation enginePlaces & things in London & New YorkIf you like this in London, you’ll like this in New YorkInnovative use of listsIBM’s experience of listsTwitter launches lists
7 British Airways - Metrotwin Innovative use of Google MapsImprove navigationEasy filteringWhat’s around my hotel?TwinningPlacesAreasIndexingThe Metrotwin IndexComplex algorithmGenuine popularityPrevent ‘gaming’
8 British Airways – Challenges Quality of contentHow do you guarantee quality?Recruited/vetted specialists in each city‘A’ List bloggersContent partners (Radio & web)The Metrotwin NetworkIncentives(a lot) of BA Miles (per list, per entry)Bragging rightsPage rank/linksAnyone can sign up but only MT Network can create new entriesOther users can rate, suggest twins, commentImagesFlickr, image rights and the use of Creative Commons LicensingGetting people to join (seeding/community outreach)Cannot be underestimated whatever the brandcampaignBA’s Club Card, agencies, partnersPR CampaignConventional print (consumer/trade)Mayor from each city submitting a list
9 British Airways – Challenges Legal & ModerationHosting User Generated Content (UGC) makes directors responsibleJail time – EU eCommerce DirectiveStrict terms & conditions of use covers much of the riskContracts with content partnersModerationPre-moderation? Post-moderation? Reactive?24hr coverageOutsourcedTransfers a lot of risk – insurance is expensiveNames, logos, searches – time consuming!OrganisationalMulti-agency effortCompeting agencies (MadeByMany, BBH, Agency.com, Headshift, Tempero...and others!)Increased complexity & politicsGreater effort/cost to deliver
10 British Airways - Outcomes Business CaseAchievementsUseful tool used/promoted by many customersBrand awarenessDeeper relationships5k-10k ACTIVE usersLow maintenance moderation/operational effortLow numbers of deviantsIncorporated into BA’s overall marketing mixLondon-Mumbai coming soon!Good return on investmentRecognition of the value of intangibles/relationshipsFailuresAdvertising/pass through revenue not nearly enough to cover the operational costsFacebook type volumes required
11 Mornflake – Case Study Classes of Business Benefit Intangible Tangible Source of contributionCustomer Loyalty & Brand AwarenessDirect RevenueLower Operational ExpenseCommentCustomer/Member profile√Customer intelligence & extending market reach at low costAdvocacy/pass through revenueSales channel for complimentary products/servicesGroup DiscountsSpecial offers to subscribersAffiliationViral salesMember-Member commercePackaging brand products to serve customer's own networkWeb Services, community, UGCForms deeper customer relationshipsCompetitive researchAccess to opinions using polls/surveysProduct development & feedbackLower service development costsPeer-to-peer self-helpReduces contact centre trafficMembershipFriends invitations. Member get member
12 Mornflake Video Competition Make a video about your values£15k first prize10 week campaignUvizzInnovative use of video technologyGroups, reward structure52 uVizz video submissions11,000 unique views20,000 total views30-90sec clips5 TV quality commercialsValue = £250kLegalReasonably straight forward
13 Social Media Assets – Flickr Innovative seeding strategyEngaged a network of ‘free thinkers’Open source, authentic approachCreated presence in wide variety of ‘destinations’Flickr, Youtube, Twitter, Facebook, blogsTwitterPermission marketing tool
14 Competitive Comparison Web presence indicatorJordansDorsetMornflakeCommentMain site Page Rank45Mornflake catches upGoogle Search Results47,80037,00021,000At peak. Currently 14,000.SamePoint Search Results2,7005,5001,600Reflects the shorter time/less contentNo. Twitter Followers3301884,000Surpassed competition.
15 Quantitative Outcomes Target/objectiveAchieved?DeliveredComment100,000 registrationsX3138683 video, 2455 Bag of Oats20m interactions with the brand2m interactionsBased on link plantingRich video advertising content√51, 30sec-90sec videos£250k market valueCustomer intelligenceQualitative feedback after trying productCost avoidance of focus groups? Incremental demand for productCost avoidance (Facebook advertising)£50kBased on five month ad campaign to raise awareness (home page ads)Presence all major social media platformsFlickr, Youtube, Facebook, Typepad (blog), Twitter4,000 Twitter followersImprove the selling process to big supermarketsYoung buyers at supermarkets more aware of productPenetrate new demographicsSee aboveEngaged new demographic age group 25-45
16 Why isn’t this enough? Mornflake British Airways Culture shockUnwilling to ‘take over’Receive trainingMarketers not given permission to incorporate ‘conversation’ into daily scheduleE.g. Maintain blog, TwitterBut wants to capture a new demographic?Agency executionOutsourced their personalityDanger that new advocates will feel usedBritish AirwaysDittoTo interact with networks, brands must themselves become networksAdopting social media ‘inside’Changes behaviourDigital (banner) advertising is losing its effectiveness
19 The Biggest Story of the 21st Century? The demise of command and controlMassive advances in technologyProsperity to millionsBut at what cost to humanity, equality, society and the environment?Network organisation as the model of choiceThere is a spectre haunting the world. The spectre of peer-to-peerOpen source productionCollaborative capitalism *not* managerial capitalismThe future is about lessDoing better with less
21 What do these need to survive? OrdersOrderStabilityContinuityRulesFearWithholding InformationMeasurementIncentivesCompetition
22 The Cost of Command & Control Modern Ways Open India’s Doors to DiabetesGot the cash but it comes with ‘issues’Western diet/lifestyle35m type 2 diabetics. 75m by 2030Work RageFrance Telecom’s suicide rate21 since Feb 2008One more last week despite ‘interventions’2.6m people in Britain on incapacity benefitsOver 60% there courtesy of workplace stressInequalityUSA 1950, CEO earns on average 40 X lowest paid workerIn 2009, CEO earns on average 4,000 X lowest paid workerFrequently as high as 200,000 X47m Americans without health insuranceIn the UK poverty is almost at pre-war levelsEnvironmentThe economy is a wholly owned subsidiary of the environmentThe Story of Stuff, An Inconvenient Truth, etc, etcThe West: Signs of cracking?US infant mortality, UK & US drop to 17th & 19th (out of 19) on preventable deaths30m Americans on ‘low food security’Education disparity
23 What do these need to survive? Everyone is a leaderEveryone sensing, responding,TransparencyTrustPeersAgileAdaptableSelf-organising
24 The Value of Peer-to-Peer Production Open Source SoftwareGoogle, Facebook, Yahoo, Amazon, eBay could not exist without Open Source technologyLinux & Coase’s PenguinP2P lendingGrameen bank, Kiva, Zopa...many othersProsperity without growthSteady state economiesFractional workCreative commonsCrowdsourcing is solving some of the world's intractable problemsNASA ClickworkersCrowdsourcing“The future of a country depends less on the nature of its issues, and more on its capacity to invent social structures able to solve them”. Noubel
26 We need antibodiesThat’s what we should be looking for, antibodies; some peaceful idea that binds us because we can all agree that this King of the Mountain shit has got to go; a lucky few get to spend a bit of time on top, but everybody spends most of their existence getting pissed on from a great height. So why do we continue doing it?
29 Where to start? Create antibodies & Super Connectors ‘Chief listening Officer’Sole purpose is to achieve the same levels of productivity being achieved by ‘open source’, peer-to-peer production modelsNo other way to have a continuous dialogue with the marketAdopt different tools & methodologiesProjects/programmesBioteamsRowe (Best Buy)Agile developmentThe intranet as a conversation platformis important?More private messages sent on social networks than (as of 2008)Read The Cluetrain ManifestoPublished in 2000
30 Change comes from within There are no secrets. The networked market knows more than companies do about their own products. And whether the news is good or bad, they tell everyone.Intranets naturally tend to route around boredom. The best are built bottom-up by engaged individuals cooperating to construct something far more valuable: an intranetworked corporate conversation.In both internetworked markets and among intranetworked employees, people are speaking to each other in a powerful new wayCompanies that assume online markets are the same markets that used to watch their ads on television are kidding themselvesTo speak with a human voice, companies must share the concerns of their communities.But first, they must belong to a community.We want you to take 50 million of us as seriously as you take one reporter from The Wall Street Journal
31 Room for discussion?Objects in the mirror are closer than they appear......
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