1. U NDERSTANDING THE TRUE DRIVERS OF S OCIAL M EDIA P REPARED FOR S OCIAL M EDIA S TRATEGIES – S ANTA C LARA, M AY 18-19 @ FGOSSIEAUX

2. W HAT IS ACTUALLY HAPPENING OUT THERE ? U NDERSTANDING THE TRUE DRIVERS OF S OCIAL M EDIA W HAT IS H YPER -S OCIALITY, AND WHY NOW ? H OW DOES H YPER -S OCIALITY S CALE ? H OW DO H YPER -S OCIAL O RGANIZATIONS THINK ABOUT THEIR BUSINESS ? W HAT DO H YPER -S OCIAL O RGANIZATIONS DO D IFFERENTLY, AND WHY? H OW DO H YPER -S OCIAL O RGANIZATIONS GET S TARTED AND S UCCEED ? E XERCISE – AND WHERE DOES THIS ALL LEAD ? O VERVIEW

3. T HE SAP D EVELOPER C OMMUNITY L ET ’ S START OFF WITH A LITTLE EXAMPLE H UMAN 1.0 VS. W EB 2.0

4. The SAP Developer Network 4 Stats: 1.4 M users 400K+ business experts Content-rich Original Incentive System: Point system leading to personal rewards The Results: Bullying behavior in the community New Incentive System: Point system leading to donation to good cause The Results: No more bullying in the community Web 2.0 or Human 1.0?

5. A look at some NIH + Duke Research Experiment #1: People play Atari-style video game which allows them to earn or lose money for themselves MRI scans shows that the pleasure side of the brain lights up – that same part that gets addicted to drugs Experiment #2: People play Atari-style video game which allows them to earn or lose money for a charity MRI scans shows that the altruism side of the brain lights up – that same part that is responsible for social interactions

6. So to understand how to do business in a 2.0 world… You do not need to understand the Web 2.0 technologies You are better off understanding Human 1.0 – not as individuals, but as hyper-social creatures

7. L ET ’ S GET A LEVEL DEEPER ON THE H UMAN 1.0…

8. Why are social beings helping one another? Reciprocity = a Reflex

9. Why are people going out of their way to punish others? Humans have an innate sense of fairness = keeps reciprocal society working

10. Why do people like to look like others? Because humans have mirror neurons

11. Why do we lie to market researchers? Because we lie to ourselves and others, and we tell people what we think they want to hear

12. Why there is no real (big) business in the long tail Because we are a herding species, and a self- herding one to boot

13. Why is status so important (and why do we hoard it)? Because it used to get us a better mate – proceed with caution: status works both ways!

14. What are the important Human 1.0 Hyper-Social Traits Reciprocity – it’s a reflex that allows us to be the only super-social species without all being brothers and sisters Social framework of evaluating things vs. market framework The role of fairness in assessing situations The importance of looking cool and mimicking others Herding and self-herding (early research shows that social behavior does not change when it scales) So to the extent that we can basically be human with what we know, and share it as freely as we possibly can, I think we’ll go a long way towards gaining a higher or stronger level of trust with the consumers. Barry Judge, CMO Best Buy http://www.cmotwo.com

15. A ND HOW IS IT IMPACTING BUSINESS ? W HAT IS H YPER -S OCIALITY AND H OW DID IT SCALE ?

16. What is Hyper-Sociality, Why Now, and Why is it important to Organizations? Technology, connectivity, Moore’s Law allow our innate Hyper-Sociality to scale Mass media is no longer the only show in town Organizations (and their functions like marketing, product development, sales, customer support, knowledge management, HR) were structured in a Hyper-Social vacuum. The companies that can mirror their constituents’ Hyper-Sociality will be best positioned to succeed

17. Symbols, signs, rules, and culture let reciprocity scale Reciprocity scales beyond Dunbar’s 150 people because of signs, symbols, rules, and culture

18. T HEY THINK DIFFERENTLY ABOUT THEIR BUSINESS S UCCESSFUL H YPER -S OCIAL O RGANIZATIONS Informed by Tribalization of Business Study: 2009 – 430 Companies took the survey (52% external communities, 32 hybrid, and 12 internal)

19. In the old days Hierarchies within organizations Old: legal employee contracts Mostly 1-1 customer relationships Old: legal customer contracts Marketing PR Customer Support

20. The new world order Hierarchies within organizations Old: legal employee contracts New: cross-functional social contracts Mostly 1-1 customer relationships Old: legal customer contracts New: social contracts CIO’s Green Enthusiasts Product Idea Business model tweak PR Customer support

21. Hyper-Social companies think differently: a recap Think tribe – not market segment – We need to find groups of people who have something in common based on their behavior, not their market characteristics Think knowledge network – not information channel – The most important conversations in communities happen in networks of people, not between the company and the community. Think human-centricity – not company-centricity – The human has to be at the center of everything you do, not the company Think emergent messiness – not hierarchical fixed processes – People will want to see responses to their suggestions, even if it does not fit your community goals – FAST “…affinity groups will quickly become the dominant social force in the emerging world economy, changing how we think about markets, fads, social movements, and, ultimately, power” - Tom Hayes, Jump Point: How Network Culture is Revolutionizing Business – 2008

22. W HAT IS IT THAT THEY DO DIFFERENT ? H YPER -S OCIAL O RGANIZATIONS

23. Hyper-Social Orgs – Leveraging Social Business Processes Successful Hyper-Social organizations turn their business processes into “social” processes – Why? Scale Increased quality Increased passion Increased WOM

24. Turning a business process into a social process IS NOT: – Running traditional programs using social media platforms – PR by blogging press releases, lead gen by spamming community members, recruiting through spray and pray over Twitter, etc. BUT IS: – Running programs based on human reciprocity and social contracts to get others, whose job it isn’t to do so, to help you do your job – customer support with the help of all employees and customers, product innovation with customers and detractors, etc. – TAPPING INTO PASSION, AND HUMAN 1.0 TRAITS

25. 25 ProcessBeforeAfterBenefitsCase Studies SalesOne-to-oneMany-to-manySales is social networking Tibco, Zappos Product InnovationConstraint to a department Includes all employees, customers, prospects and detractors Reduce product failure rates (now at 80%) Cisco, Netflix Lead generationInterrupt-drivenBecome findable, be generally helpful in public conversation Leads that actually want to buy something EMC, Dell Customer ServiceConducted by employees Conducted by employees and other customers Customers service as a revenue source instead of cost center SAP, Zappos Knowledge Management Top down processFederated and user- driven process KM that works, changes in work habits IBM Customer Communications Mostly between companies and customers Primarily among customers, detractors and prospects Reduced cost and increased effectiveness Best Buy, Dassault Systemes, Fiskars Talent Acquisition and Development Board, interrupt- driven and based on weak ties WOM Endorsed by the tribes people belong to Social context provides better matches Monster.com Employee Communications Mostly within silosCross enterpriseIncreased serendipity, increased support IBM, FedEx, Cisco Market researchBased on small groups and financial incentives Based on tribes and social contract Much more accurate market data and increased success Eli Lilly, Pfizer, IBM, Fiskars PR & Thought leadership Rolodex based and focused on traditional media Community/tribe based and focused on social media Much more amplification of the messages Microsoft, Intuit

26. Any questions? Francois Gossieaux Partner, Beeline Labs e. francois@beelinelabs.comfrancois@beelinelabs.com w. http://www.beelinelabs.comhttp://www.beelinelabs.com b. http://www.emergencemarketing.comhttp://www.emergencemarketing.com c. http://www.marketingtwo.nethttp://www.marketingtwo.net p. http://www.cmotwo.comhttp://www.cmotwo.com Our new book: The Hyper-Social Organization http://www.hypersocialorg.com 26

27. Brainstorm – a getting started exercise How will you get started? – What process do you pick? – Why? – How will you kickstart it? – How do you measure success? How do you scale it? What are the biggest obstacles you are expecting? – How will you overcome them

28. E XTRAS

29. H OW DO THEY GET GOING ? H YPER -S OCIAL O RGANIZATIONS

30. Many paths to success (and many paths to failure too) Assess Hyper-Social readiness (plan is to get benchmarking info on this from 2010 Tribalization of Business Study) Find the tribes and their leaders – internally and externally: – Who are they, what makes them tick, what is their language, what is their shared symbolism, where do they hang out, etc. Start pilots that matter - and measure them the same way you would measure the impact of any other program Set up infrastructure to: – Measure cross-functional impact of programs – Scale the program to where it makes a difference in business Compared to other CMO’s I consider myself lucky. Dell Hell put our brand under pressure and so to engage in social media was actually a question of survival….you cannot get into social media by just putting a toe in the water - you are either all in and it becomes part of your culture, or you’re not. Erin Nelson, CMO Dell (cmotwo.com)

31. Further down the line Look at new measurements – e.g., customer equity measurements to better reflect impact of WOM Monitoring and understanding the behavior of active lurkers – the largest active member group of any community (32% of companies are starting to measure) Think of expanding your employee pool by encouraging more people to participate Recruit for a Hyper-Social future – Different talent – Different leadership

32. Smaller questions to ask yourself Are your marketing/employee programs reciprocal? Would you send collateral to a friend of yours? Do you know what 20% of your collateral gets used? Are you recruiting for skill or behavior? Are you ensuring diversity in the recruiting process? Are you tapping in the social realm to recruit? Is your KM extending to your customers? Is your CRM customer-centric or account-centric? Is it focused on transactions or relationships? Is it focused on the past/present or the present/future?

33. Legal Considerations What’s legal good for anyway? Key Hyper-Social legal issues: – Hiring (unlawful background checks, lawful off-duty conduct) – Disclosure of trade secrets and/or proprietary information – Privacy (employers may run afoul of SCA; waiters) – Harassment – Wrongful termination – Defamation (of company by employees?) – Disclosure of nonpublic material information triggering securities law issues – Negligent referral based on social network references – Unauthorized use of company logos, trademarks and copyrighted – Material (employees posting other people’s content to corporate site) – Labor laws Derived from Morgan Lewis analysis at http://www.pli.edu/product_files/EN00000000081353/49749.pdf