Did you get a chance to see the presentation by Dion Hinchcliffe at this month's San Antonio AMA luncheon. Take a look at the changing DNA of social interaction and what it mean's for businss

1. #amasalunch
The Big Change:
Building Big Data
and Social DNA
#amasalunch

2. ® 2012 Dachis Group 2
Introduction
Dion Hinchcliffe
• Chief Strategy Officer
• http://dachisgroup.com
• mailto:dion.hinchcliffe@dachisgroup.com
• ZDNet’s Enterprise Web 2.0
• http://blogs.zdnet.com/Hinchcliffe
• InformationWeek’s Social Business By Design
• http://informationweek.com/thebrainyard
• : @dhinchcliffe
Spring 2012

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Social has been around
for a while now

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Telephone
1890

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Internet Email & Websites
1993

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Life Expectancy of S&P 500 Company
Pace of Technology Change
Change is speeding up...

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Blogs
Web 2.0
Social Media
Enterprise 2.0
Social Business
#CX
2003
2004
2005
2006
2008
2012

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All to create better and
more meaningful
connections with each
other.

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What do these changes
have in common?

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transactions engagement

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CORPORATIONS ARE ONLY SLOWLY
ADAPTING TO THE ERA OF ENGAGEMENT
STATISTICS ON ADOPTION
The Adoption Rates of E-mail, Social Networks, and #SocBiz
20112006
1B
750M
500M
250M
2007 2008 2009 2010
Sources:
projected
Consumer
Social
Networks
E-mail
100%
75%
50%
25%
Enterprise 2.0
comScore, Hitwise, andThe Radicati Group, Forrester,APC, Intellicom, Neilsen
Norman Group, Social Business Council, NetStrategy/JMC
high estimate
low estimate
Percentof
Enterprises

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The channel shift has been global & swift
13
From: Social Business By Design, 2012
1.3
billon
people
5 years

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Dachis Group
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The Backdrop:
Priorities of Business
Leaders for 2013
14

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What breakthrough is taking us there?
Fast Data Big Analytics Deep Insight
Increasing
Age & Maturity
Big Data: The Moving Parts
terabytes petabytes exabytes zettabytes
the amount of data stored by the average company today
the growth of data will be exponential for the foreseeable future
MapReduce
Hadoop
kdb
Vertica
Netezza
Esper
Greenplum
ECL Teradata
Hive
MATLAB
SciPy
SAS
Mahout
Revolution R
SPSS AMPL
network analysis
predictive modeling
simulation
visualization
unsupervised learning
social media analytics
sentiment analysis
BPO BI
Business
Objectives
From http://blogs.zdnet.com/Hinchcliffe
ETL

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But many companies
are still just doing what
used to work.

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600BA Year
Investing in Engagement
We spend a LOT to try to achieve it...
$

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Social Is the Ideal Platform to
Engage@Scale
Premise:

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What happens when we don’t?

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Dachis Group
What Happens When You Do....
Live Community. 7.5 million social
support users per year (over 20 million of
social support transactions a year.) Used
extensively in multiple product lines in their
SMB division.
• Long struggled to use software to compete with live
human beings (H&R Block, the previous #1 tax
preparer)
– Decided to collaborate with customers to help support their
users during an extremely time intensive yearly process: tax
season
– New process allowed anyone, either workers or customers, to
answer customer support questions in real-time
– Greatly lowered abandonment of the product and make
TurboTax the #1 product in the space for the first time
Became #1 in their industry in 12 months

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Can be used to drive
business outcomes in scale:
Sales
Customer Retention
Customer Care
Product Development
Crisis Resolution

22. Awareness Passion Mindshare Advocacy
Scale, Data, and an Interactive Medium
Creates opportunity for insight and engagement business value
THE ENGAGEMENT PROGRESSION

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Current Approach
#FAIL

24. Bigger staffs #FAIL
You can’t staff into capitalizing on engagement @ scale
A staff of 11

25. ©2012 DACHIS GROUP
ANOTHER WAY
OF LOOKING
AT THIS
25
YOUR
COMPANY
World
Your
Social Media
Effort

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So is there
another approach?

27. To engage @ scale, we can mobilize our constituents
Extending your reach
® 2011 Dachis Group. Confidential and Proprietary

28. Organize our employees
® 2011 Dachis Group. Confidential and Proprietary
Employees
Organize your
employees to
engage with
the market...

29. Coordinate our partners
® 2011 Dachis Group. Confidential and Proprietary
... then
coordinate
your partners
to engage with
the market...
Partners

30. Activate our advocates
® 2011 Dachis Group. Confidential and Proprietary
Advocates
...then activate
your advocates
to engage with
the market

31. Engagement @ Scale
® 2011 Dachis Group. Confidential and Proprietary
All coordinated and
working together to
understand their own
goals and their
contribution to
performance

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Because existing advocates don’t cut it...

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...and your advocates are
actually better at
engagement than you

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Sample of Leading Employee Advocate Programs Today

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Dachis Group
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Fully social organizations get outsized benefits
35
Source: 2011 McKinsey Web 2.0 Survey
Only fully social organizations can tap into the
$1.3 trillion social business opportunity

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The problem?
• 96% of internal and external social business efforts
are not connected
- Source: , August, 2012
• Yet that’s where the most ROI is, by far
36

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Social engagement is...
part of a single continuum...
one unified ecosystem
37
Social Businessenterprise ecosystem
customers +
world
business partners
workers
Social
Innovation Crowdsourcing
Social CRM
Social Workforce
Social Marketing
Customer Communities
integrated vision
intranet
extranet
Internet
The Lesson:

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We must create operations to engage at scale
38

39. ® 2010 Dachis Group. Confidential and Proprietary
Dachis Group
T-Mobile wanted to get out ahead of customer defections to
other carriers. They needed an accurate and scalable source of
information. They looked to social media.
The Story:
The Results:
The firm integrated big data across their IT systems, using near
real-time the analysis of 33M customer data records, web logs,
billing data and social media information. The result: The company
was able to cut customer defections in half in a single quarter.
Source: Financial Times
39
Cut customer defections
in half in 90 days.
Data-Driven Engagement: A High-Impact Example

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Dachis Group
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How many firms are now organizing for social today
40

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Dachis Group
H&R Block learned in the weeks prior to April 15th, every
question that is not answered immediately was a lost sale.
The Story:
The Results:
Harnessed 1,000 tax professionals for Q&A in the “Get It Right”
social media campaign. The effort secured 1,500,000 unique
visitors and answered 1,000,000 questions. Created an
operational hub to dispatch the advocates by listening and
filtering continuously on Twitter and Facebook.
Source: AdWeek
41
Increased overall sales
that season by 15%.
Created a scaled brand
connection with millions.
Engagement at Scale: A High-Impact Example
See the Intuit Example in #Socbiz By Design

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What All This Means
42
• The digitally disruptive CMO
will have data supremacy.
• Corollary: Investment in data-
driven operations must be a
first-class citizen
• Brand marketing will look more
and more like other business
functions
• The brand experience is
becoming centered around
extended multi-channel
conversations, instead of media
buys
• Companies must be ready at
each touchpoint to engage
using advocates
- Have advocate capital?
- Have #bigdata-powered ops?
- Have performance managed
engagement?
• You need all three to succeed.

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The full story is in Social Business by Design
• Published May, 2012
• From John Wiley & Sons
• The definitive management
strategy guide and handbook
on social business.
• Based on real-world
experience from nearly 100
high-impact examples.
• The most complete and
actionable statement on
social business and why it’s
strategically vital.
• Recently #1 in Amazon’s Hot
New Releases
• Companion Web site at
43
http://socialbusinessbydesign.com

44. Thank You