1. Change comes from within
Why social media outside the company isn’t enough
Leon Benjamin

2. What’s the story? Social media actually works
Case studies and operational insights
British Airways
Mornflake (who?)
Challenges, limits
Why change comes from within
Command & control no longer suitable for the ‘connected world’
Social media is at its most transformative ‘inside’ the company
The implications of an irreversible shift to network based models of organisation
The profound changes in the nature of work
How to adapt

3. “The workers should appropriate the means of production”
Social Media Works
14,463,346 auctions
200,000,000 blogs
21 Nov 2006
Almost 4,000,000 articles
(10 languages)
>100,000,000 videos
(65,000/day)
“The workers should appropriate the means of production”
1.5 million residents
400,000,000 profiles
And 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 reality
Suddently we could blog, podcast, write, produce videes, etc.
2009: "Twitter" is the world’s most popular English word 

4. Social Media Works

5. British Airways – Business Case
Classes of Business Benefit
Intangible
Tangible
Source of contribution
Customer Loyalty & Brand Awareness
Direct Revenue
Lower Operational Expense
Comment
Customer/Member profile √
Customer intelligence & extending market reach at low cost
Advocacy/pass through revenue
Sales channel for complimentary products/services
Group Discounts
Special offers to subscribers
Affiliation
Viral sales
Member-Member commerce
Packaging brand products to serve customer's own network
Web Services, community, UGC
Forms deeper customer relationships
Competitive research
Access to opinions using polls/surveys
Product development & feedback
Lower service development costs
Peer-to-peer self-help
Reduces contact centre traffic
Membership
Friends invitations. Member get member

6. British Airways - Metrotwin
Social recommendation engine
Places & things in London & New York
If you like this in London, you’ll like this in New York
Innovative use of lists
IBM’s experience of lists
Twitter launches lists

7. British Airways - Metrotwin
Innovative use of Google Maps
Improve navigation
Easy filtering
What’s around my hotel?
Twinning
Places
Areas
Indexing
The Metrotwin Index
Complex algorithm
Genuine popularity
Prevent ‘gaming’

8. British Airways – Challenges
Quality of content
How do you guarantee quality?
Recruited/vetted specialists in each city
‘A’ List bloggers
Content partners (Radio & web)
The Metrotwin Network
Incentives
(a lot) of BA Miles (per list, per entry)
Bragging rights
Page rank/links
Anyone can sign up but only MT Network can create new entries
Other users can rate, suggest twins, comment
Images
Flickr, image rights and the use of Creative Commons Licensing
Getting people to join (seeding/community outreach)
Cannot be underestimated whatever the brand
campaign
BA’s Club Card, agencies, partners
PR Campaign
Conventional print (consumer/trade)
Mayor from each city submitting a list

9. British Airways – Challenges
Legal & Moderation
Hosting User Generated Content (UGC) makes directors responsible
Jail time – EU eCommerce Directive
Strict terms & conditions of use covers much of the risk
Contracts with content partners
Moderation
Pre-moderation? Post-moderation? Reactive?
24hr coverage
Outsourced
Transfers a lot of risk – insurance is expensive
Names, logos, searches – time consuming!
Organisational
Multi-agency effort
Competing agencies (MadeByMany, BBH, Agency.com, Headshift, Tempero...and others!)
Increased complexity & politics
Greater effort/cost to deliver

10. British Airways - Outcomes
Business Case
Achievements
Useful tool used/promoted by many customers
Brand awareness
Deeper relationships
5k-10k ACTIVE users
Low maintenance moderation/operational effort
Low numbers of deviants
Incorporated into BA’s overall marketing mix
London-Mumbai coming soon!
Good return on investment
Recognition of the value of intangibles/relationships
Failures
Advertising/pass through revenue not nearly enough to cover the operational costs
Facebook type volumes required

11. Mornflake – Case Study Classes of Business Benefit Intangible Tangible
Source of contribution
Customer Loyalty & Brand Awareness
Direct Revenue
Lower Operational Expense
Comment
Customer/Member profile √
Customer intelligence & extending market reach at low cost
Advocacy/pass through revenue
Sales channel for complimentary products/services
Group Discounts
Special offers to subscribers
Affiliation
Viral sales
Member-Member commerce
Packaging brand products to serve customer's own network
Web Services, community, UGC
Forms deeper customer relationships
Competitive research
Access to opinions using polls/surveys
Product development & feedback
Lower service development costs
Peer-to-peer self-help
Reduces contact centre traffic
Membership
Friends invitations. Member get member

12. Mornflake Video Competition
Make a video about your values
£15k first prize
10 week campaign
Uvizz
Innovative use of video technology
Groups, reward structure
52 uVizz video submissions
11,000 unique views
20,000 total views
30-90sec clips
5 TV quality commercials
Value = £250k
Legal
Reasonably straight forward

13. Social Media Assets – Flickr
Innovative seeding strategy
Engaged a network of ‘free thinkers’
Open source, authentic approach
Created presence in wide variety of ‘destinations’
Flickr, Youtube, Twitter, Facebook, blogs
Twitter
Permission marketing tool

14. Competitive Comparison
Web presence indicator
Jordans
Dorset
Mornflake
Comment
Main site Page Rank 4 5
Mornflake catches up
Google Search Results
47,800
37,000
21,000
At peak. Currently 14,000.
SamePoint Search Results
2,700
5,500
1,600
Reflects the shorter time/less content
No. Twitter Followers
330
188
4,000
Surpassed competition.

15. Quantitative Outcomes
Target/objective
Achieved?
Delivered
Comment
100,000 registrations X
3138
683 video, 2455 Bag of Oats
20m interactions with the brand
2m interactions
Based on link planting
Rich video advertising content √
51, 30sec-90sec videos
£250k market value
Customer intelligence
Qualitative feedback after trying product
Cost avoidance of focus groups? Incremental demand for product
Cost avoidance (Facebook advertising)
£50k
Based on five month ad campaign to raise awareness (home page ads)
Presence all major social media platforms
Flickr, Youtube, Facebook, Typepad (blog), Twitter
4,000 Twitter followers
Improve the selling process to big supermarkets
Young buyers at supermarkets more aware of product
Penetrate new demographics
See above
Engaged new demographic age group 25-45

16. Why isn’t this enough? Mornflake British Airways
Culture shock
Unwilling to ‘take over’
Receive training
Marketers not given permission to incorporate ‘conversation’ into daily schedule
E.g. Maintain blog, Twitter
But wants to capture a new demographic?
Agency execution
Outsourced their personality
Danger that new advocates will feel used
British Airways
Ditto
To interact with networks, brands must themselves become networks
Adopting social media ‘inside’
Changes behaviour
Digital (banner) advertising is losing its effectiveness

17. The Big Shift

18. What’s that coming over the hill?

19. The Biggest Story of the 21st Century?
The demise of command and control
Massive advances in technology
Prosperity to millions
But at what cost to humanity, equality, society and the environment?
Network organisation as the model of choice
There is a spectre haunting the world. The spectre of peer-to-peer
Open source production
Collaborative capitalism *not* managerial capitalism
The future is about less
Doing better with less

20. We sell openness

21. What do these need to survive?
Orders
Order
Stability
Continuity
Rules
Fear
Withholding Information
Measurement
Incentives
Competition

22. The Cost of Command & Control
Modern Ways Open India’s Doors to Diabetes
Got the cash but it comes with ‘issues’
Western diet/lifestyle
35m type 2 diabetics. 75m by 2030
Work Rage
France Telecom’s suicide rate
21 since Feb 2008
One more last week despite ‘interventions’
2.6m people in Britain on incapacity benefits
Over 60% there courtesy of workplace stress
Inequality
USA 1950, CEO earns on average 40 X lowest paid worker
In 2009, CEO earns on average 4,000 X lowest paid worker
Frequently as high as 200,000 X
47m Americans without health insurance
In the UK poverty is almost at pre-war levels
Environment
The economy is a wholly owned subsidiary of the environment
The Story of Stuff, An Inconvenient Truth, etc, etc
The West: Signs of cracking?
US infant mortality, UK & US drop to 17th & 19th (out of 19) on preventable deaths
30m Americans on ‘low food security’
Education disparity

23. What do these need to survive?
Everyone is a leader
Everyone sensing, responding,
Transparency
Trust
Peers
Agile
Adaptable
Self-organising

24. The Value of Peer-to-Peer Production
Open Source Software
Google, Facebook, Yahoo, Amazon, eBay could not exist without Open Source technology
Linux & Coase’s Penguin
P2P lending
Grameen bank, Kiva, Zopa...many others
Prosperity without growth
Steady state economies
Fractional work
Creative commons
Crowdsourcing is solving some of the world's intractable problems
NASA Clickworkers
Crowdsourcing
“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

25. A beautiful mind

26. We need antibodies
That’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?

27. The network is female

28. IBM’s Ideal Lists

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 models
No other way to have a continuous dialogue with the market
Adopt different tools & methodologies
Projects/programmes
Bioteams
Rowe (Best Buy)
Agile development
The intranet as a conversation platform
is important?
More private messages sent on social networks than (as of 2008)
Read The Cluetrain Manifesto
Published 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 way
Companies that assume online markets are the same markets that used to watch their ads on television are kidding themselves
To 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......