Lecture 10 - Social Business

7/31/2019 Lecture 10 - Social Business

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IS52026 Social ComputingWeek 10: social business

dan mcquillan

Cluetrain manifesto

Markets are conversations....These networked conversations are enabling powerful new forms

of social organization and knowledge exchange to emerge.There are no secrets. The networked market knows more than

companies do about their own products. And whether the newsis good or bad, they tell everyone.

What's happening to markets is also happening among employees.A metaphysical construct called "The Company" is the only thing

standing between the two.Corporations do not speak in the same voice as these newnetworked conversations. To their intended online audiences,companies sound hollow, flat, literally inhuman.

Companies that assume online markets are the same markets thatused to watch their ads on television are kidding themselves.

Companies that don't realize their markets are now networkedperson-to-person, getting smarter as a result and deeply joinedin conversation are missing their best opportunity.

SHOW http://www.cluetrain.com/book/95-theses.html


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Fundamental to 'The Cluetrain Manifesto' was the premise that theInternet provided a new and unique forum for communication that

would ultimately shift the nature of business communication andmarketing. Essentially, the change that is central to this text is one ofbreaking down corporate barriers and forming a conversationbetween those within and those outside a corporation onlinemarketing would be more about holding conversations with peoplerather than broadcasting half-truths about products and services.

Since publication, however, some state that the use of mass-mediamarketing has not fundamentally shifted from its use withinorganizations as the key means of communicating with consumers.

Advertising on the Internet has grown over the intervening years, itremains, in some cases, an online version of the same style ofmass-media marketing.

However there is an undeniable sea-change taking place withcompanies who are starting to reach out and ask to joinconversations earning the right to speak with citizens rather than

just expecting it.It is unlikely the authors of the manifesto had exact timeframes

expected for all aspects and the popularity, engagement levels and

acceptance of commercial communication will continue to be limiteduntil the principles of the manifesto are applied more.

http://en.wikipedia.org/wiki/The_Cluetrain_Manifesto

EXERCISE why didn't it happen?


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using the language of philosopher-activists Deleuze& Guattari.

a striated space marked by linear boundaries,restricted to a particular plane of

activity in the space of all possible potentialsi.For Deleuze & Guattari, like Foucault before them,

power does not simply operate as a pyramid but inmyriad multifaceted directions and relationships.

Foucault said One doesn't have a power which isonly in the hands of one person who exercises italone... it is a machine in which everyone is caught,those who exercise power as much as those over

whom it is exercised.. it becomes a machinery thatno-one ownsii.


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4

The overall effect is an institutional environment that

acts to tame energies - it is a social machine thatproduces conformity.It's the overlap in particular experience of all thedynamicsthat limit change: lack of autonomy in a hierarchicalstructure, the expectations of colleagues, the time ittakes to deliver your daily targets, the lack of

incentive, the lack of peer support, lack of sense ofentitlement to change the way things are done - all ofwhich can combine to deliver an experientialstraitjacket which is an impersonal affect, a patternacross the system and one thatstifles diffusion as effectively as individual innovation.The alternative is is a system marked by flows,connections and zones of intensity.


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Many business processes are the result of an accretion oflots of small rules, workflows or responses to prior

problems or risks that the business has faced in the past.Taken as a whole, the focus on management by repeatable

process has gradually made organisations less and lessagile, and more and more expensive to run.

there is no doubt that the existing backward state of internalIT in particular the factory model of one-size-fits-allprovision that we have talked about for years is a major

block on progress. Therefore, there are real andimmediate benefits to be achieved by giving people andgroups smarter, simpler social tools that they can use toget their job done, and this can light little fires ofemergent behaviour that are so important in stimulatingchange and showing what can be done.

http://www.dachisgroup.com/2009/10/the-archetypes-of-social-business-design


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one of the drivers for Enterprise 2.0 was theCambrian explosion of innovation and new tools inthe consumer world of Web 2.0, which inspiredpeople to take the lessons of blogs, socialnetworks, social bookmarking, RSS and other toolsinside the enterprise to rejuvenate the stagnantrock pools of corporate IT.

http://www.dachisgroup.com/2009/10/the-archetypes-

of-social-business-design/

natural selectionsee IS52026B weeks 2-8


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fastcompany.com

With almost half (45 percent) of the employeessurveyed noting that personal consumer devicesand software applications are more useful than thetools and applications provided by their ITdepartment, this research highlights thatorganizations can no longer ignore or resist thephenomenon.

surveyed over 4,000 employees in 16 countriesacross five continents, as well as over 300business and IT executives.

Employees claim that such technologies enhanceinnovation, productivity and job satisfaction, andmore than a quarter (27 percent) said that they

would even be prepared to pay for their owndevices and applications to use at work.


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Over a quarter (27 percent) of employees routinely use non-

corporate applications downloaded from the Internet in theworkplace as they search for applications that help them to workbetter

A large proportion of employees (43 percent) feel comfortable andcapable of making their own technology decisions for work,indicating a technological empowerment movement sweepingacross users worldwide

There is also an increasing trend for employee driven technologicalinnovation, as 24 percent of employees admitted to coming up

with their own consumer technology solution to help solve abusiness problem

While some have followed an authoritarian approach and simplyprohibited the use of outside technologies, others have chosento ignore the issue altogether.

http://newsroom.accenture.com/article_display.cfm?instance_code=accenturev85&article_id=5360&c=glb_accglbtwt

_10000160&n=sm_1211&sf2720728=1


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New McKinsey research shows that a payday could be arrivingfaster than expected.

A new class of company is emergingone that uses collaborativeWeb 2.0 technologies intensively to connect the internal effortsof employees and to extend the organizations reach tocustomers, partners, and suppliers. We call this new kind ofcompany the networked enterprise.

Internally networked organizations. Some companies are achievingbenefits from using Web 2.0 primarily within their own corporate

walls. The survey results indicate that companies in this group

13 percent of those using Web 2.0derive substantial benefitsfrom deploying these technologies in employee interactions.Externally networked organizations. Other companies (5 percent of

those deploying Web 2.0) achieved substantial benefits frominteractions that spread beyond corporate borders by using Web2.0 technologies to interact with customers and businesspartners, according to survey results.

Fully networked enterprises. Finally, some companies use Web 2.0in revolutionary ways. This elite group of organizations3

percent of those in our surveyderives very high levels ofbenefits from Web 2.0s widespread use, involving employees,customers, and business partners, according to the survey.


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We performed a series of statistical analyses tobetter understand the relationship between ourcategories of networked organizations and threecore self-reported performance metrics: marketshare gains, operating profits, and marketleadership.

Market share gains reported by respondents were

significantly correlated with fully networked andexternally networked organizations.

The attainment of higher operating margins (again,self-reported) than competitors correlated with adifferent set of factors: the ability to make decisionslower in the corporate hierarchy and a willingness

to allow the formation of working teams comprisingboth in-house employees and individuals outsidethe organization.


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by Marc_Smith on Flickr - Attribution 2.0 Generic (CC BY 2.0)

by Marc_Smith

All Organizations Are Social, But Few Are Social OrganizationsOrganizations work top down through social interactions structured

around the organization chart, or hierarchy. And they work end toend structured around their business processes. These twodimensions hierarchy and process shape the wayorganizations see the world, its challenges and, more importantly,the portfolio of potential solutions to those challenges.

We see this when people get things done by working in the so-called"white space" in the organizational structure, or by working acrossthe "seams" of a business process. In their ways of working andconnecting with each other, they do more than just what they are

told top-down and more than what is defined as their job. This is thesocial dimension.

Every organization has a social dimension. The challenge is that thesocial dimension is not accurately reflected in either theorganization's hierarchy or its process flow.

A social organization mobilizes its people from associates tocustomers, suppliers and others without regard to hierarchy orposition and their interests, passions, knowledge and experience.Tapping into the collective wisdom of everyone creates a new source

of competitive advantage, agility and future innovation.http://blogs.hbr.org/cs/2011/10/all_organizations_are_social_b.html


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we are often approached by clients who want to use social mediato become social brands. That is, using social technology and

tools to add value to the customer experience through two-waydialogue. At the heart of becoming a social brand lies devisingand implementing a social media marketing strategy to getpeople talking about, sharing or engaging with the brand (

But we find that becoming a social brand quickly starts to highlightthe need to become a social business. Once we beginimplementing social media marketing programs we quickly startto see the reality that striving to become a social brand goes

beyond generating positive word of mouth,becoming a social brand really brings home the reality of what theCluetrain Manifesto taught us all those years ago.

as soon as a clients starts to think about or takes steps towardsbecoming a successful social brand, then its time to startthinking about how this might start to impact on otherdepartments within their organisation.

Often, the external forces in question are social media empoweredcustomers or stakeholders that have had an unsatisfactory

product or service experience that keep pushing at the edges ofan organisation eventually forcing them to open up, listen,engage and make changes

http://wearesocial.net/blog/2011/11/social-brand-social-business


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Giffgaff differs from conventional mobile phone operators in thatthe users of the service may also participate in certain aspects of

the company's operation, e.g. sales, customer service andmarketing. In return for this activity, the user receivesremuneration through a system called 'Payback'.

Giffgaff was founded by Gav Thompson, the head of brand strategyat O2, who is reported to have come up with the idea afterstudying Web 2.0 businesses in San Francisco in 2008. Theprinciples behind the formation of the company were set out inthe Giffgaff manifesto.

The word giffgaff is Scottish Gaelic meaning mutual giving and waschosen to fit with the principles outlined in the manifesto. Thestrapline for Giffgaff was 'the mobile network run by you' toreflect the fact that some users of the service help run variousaspects of the operation.

The main method of customer service relies on members of thenetwork providing answers to questions raised by others.

In July 2010, two iPhone apps and a Nokia app were released tohelp users manage their account and access the forums. A

notable part of these announcements was that the apps wereproduced by members of the giffgaff community rather than thecompany itself.

http://en.wikipedia.org/wiki/Giffgaff - http://giffgaff.com/


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at the core you have a commons of knowledge, code and designand a community of contributors, paid or unpaid; these

commons use free licenses guaranteeing the shareability of theknowledge in the future; the infrastructure of cooperation ismanaged and made possible through a new type of for-benefitassociation, usually a non-profit foundation, such as Apache orWikipedia. This association just maintains and protects thecommons. Then there is a variety of companies andentrepreneurs operating in the market place, hiring contributorsto the commons etc. This is the entrepreneurial coalition.

Today, these are still mostly for-profit corporations. Although acommons is created and sustained, the livelihood of contributorsis still largely dependent on the classic economy, and this is

what I and other people would like to change, by introducing anew type of commons-friendly market player.

If we look not at the commons economy, where something ismutually created, but at the sharing platforms, where individualsshare their expressivity, we see corporate platforms makingbillions of dollars from free labour, but they are not returning that

revenue to the value-creating participantshttp://community.paper.li/2011/11/30/michel-bauwens-a-peer-to-

peer-economy


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An Open Challenge to Silicon Valley - Umair Haque - HarvardBusiness Review

http://blogs.hbr.org/haque/2008/04/an_open_challenge_to_silicon_v.html

2008Tim O'Reilly recently opened the Web 2.0 conference by asking

entrepreneurs to solve bigger problems.Food prices, financial system, Energyin the utterly trivial, in the strategically banal: mostly, they're cutting

deals with one another to...try and sell more ads.

It's a betrayal as deep, perhaps, as that of Wall Street. Not just ofthose across the globe who are suffering - but also, in the sterilelanguage of yesterday's economics, of their own limited partnersand shareholders. Why? Simple: given their magnitude, it's bysolving exactly these problems that the most explosive amountsof new value can be created.

that the path to radical value creation isn't cutting more deals(dude, high-five!!) - but in rebuilding a flawed, false globaleconomy

And that's why the failure to address these problems is a strategicbankruptcy as well. The self-indulgence of today's so-calledrevolutionaries in a darkening economic twilight is a recipe forstrategic suicide.


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Lecture 10 - Social Business