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Social ROI and Value modeling

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Peter H. Reiser
Peter H. Reiser

Presentation @ McKinsey BTO meeting December 9th 2011 in Frankfurt.

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McKinsey's BTO meeting <Insert Picture Here> December 2011 Community Equity - How to build vibrant communities Peter H. Reiser Principal Architect, Oracle Tuesday, December 6, 11
Oracle Safe Harbor Statement The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle. Tuesday, December 6, 11
What is Enterprise 2. 0 ? How to build vibrant communities Web 2.0 Social Media Internal External Employees Customer Partners Suppliers Tuesday, December 6, 11
The Enterprise 2.0 dilemma Business View Communities are a “good thing” BUT... What is the business case? How to integrate social & communities into our existing business processes ? What is the RoI? Users View I am too busy to sharing my content My time is better spent generating revenue (My knowledge is power) What’s In It For Me (WIIFM)? Tuesday, December 6, 11
What if we can prove to the business the RoI of Communities (aka Enterprise 2.0) AND have answers for the users on WIIFM? Tuesday, December 6, 11
How ? Tuesday, December 6, 11
How to build vibrant communities Value Adoption Technology Tuesday, December 6, 11
How to build vibrant communities Value Adoption Technology Enterprise Architecture Tuesday, December 6, 11
How to build vibrant communities Value Adoption Process / Methodology Technology Enterprise Architecture Tuesday, December 6, 11
How to build vibrant communities Value Business: RoI, Users: WIIFM Adoption Process / Methodology Technology Enterprise Architecture Tuesday, December 6, 11
Objectives Seamless integrate social & communities into all core business processes Establish a standardized Enterprise 2.0 Framework to support social, collaboration and communities Measure the impact of social, collaboration & communities along the business processes Establish targeted social value models Tuesday, December 6, 11
Core Business Processes Product Product Opportunity Opportunity BID BID Delivery Delivery Support Creation Creation Mngt. Mngt. Mngt. Mngt. Tuesday, December 6, 11
Business Processes and Applications Product Product Opportunity Opportunity BID BID Delivery Delivery Support Creation Creation Mngt. Mngt. Mngt. Mngt. Tuesday, December 6, 11
Social Enterprise Community Framework Product Product Opportunity Opportunity BID BID Delivery Delivery Support Creation Creation Mngt. Mngt. Mngt. Mngt. Social Enterprise Community Framework Tuesday, December 6, 11
Business/Communities Metrics Product Product Opportunity Opportunity BID BID Delivery Delivery Support Creation Creation Mngt. Mngt. Mngt. Mngt. Social Enterprise Framework Tuesday, December 6, 11
Use Case: AIM KMS - Sun Microsystems Re-Use of Content in Opportunity Management and Project Delivery Tuesday, December 6, 11
Re-Use of Documents Enterprise Community and Collaboration Framework (AIM KMS & SunSpace) Project 3 Re-Use Project 1 Project 2 Tuesday, December 6, 11
Re-Use compared to Win Rate and Margin Product Opportunity BID Delivery Delivery Support Creation Mngt. Mngt. Forecast Win Rate Margin Enterprise Social and Community Framework (AIM KMS & SunSpace) Tuesday, December 6, 11
RoI on Communities (Sun Microsystems)  Up to 14 % better win rate  Up to 20% higher project margin Tuesday, December 6, 11
ROI calculation Revenue : 11,000 Millions 80% of projects in AIM KMS: 8,800 Millions 15 % average Re-Use: 1,320 Millions Average win rate improvement : 10 % ROI: 132 Millions incremental revenue Tuesday, December 6, 11
Social & Business Value per Document Social Values Business Values Downloads Wins Ratings Revenue Re-Use Hours saved Tuesday, December 6, 11
Measuring Social Capital Tuesday, December 6, 11
Community Equity Tuesday, December 6, 11
Community Equity Contribution Documents Wiki Blogs Patents Tuesday, December 6, 11
Community Equity Contribution Participation Documents Rate Wiki Comment Blogs Re-use Patents Tags Tuesday, December 6, 11
Community Equity Contribution Participation Documents Rate Wiki Comment Blogs Re-use Patents Tags Skill Education Skills Reputation Tuesday, December 6, 11
Community Equity Contribution Participation Documents Rate Wiki Comment Blogs Re-use Patents Tags Skill Role Education Skills Business Reputation Communities Tuesday, December 6, 11
Community Equity Contribution Participation Documents Rate Wiki Comment Blogs Re-use Patents Personal Tags Skill Personal Role Equity Education Skills Business Reputation Communities Tuesday, December 6, 11
Community Equity Mathematical Model Object Activity | Contribution - Aging | Partipation - Aging Tuesday, December 6, 11
Information Equity Content Activities Community Tuesday, December 6, 11
Information Equity Content Activities Community Tuesday, December 6, 11
Information Equity Content Activities Community create modify download view rate comment tag Tuesday, December 6, 11
Information Equity Content Activities Community create modify download view rate comment tag Tuesday, December 6, 11
Personal Equity My Community Equity Activities Me Community Tuesday, December 6, 11
Personal Equity My Community Equity Activities Me Community Tuesday, December 6, 11
Personal Equity My Community Equity Activities Me Contribution create modify tag Community Tuesday, December 6, 11
Personal Equity My Community Equity Activities Me Contribution create modify tag Community Participation view rate comment reuse Tuesday, December 6, 11
Personal Equity My Community Equity Activities Me Contribution create modify tag Community Participation view rate comment reuse Tuesday, December 6, 11
Tag Equity Tuesday, December 6, 11
Tag Equity Tuesday, December 6, 11
Tag Equity Info 1 IQ=10 Tuesday, December 6, 11
Tag Equity Info 1 IQ=10 Java TQ=10 Tuesday, December 6, 11
Tag Equity Info 1 Info 2 IQ=10 IQ=20 Java TQ=10 Tuesday, December 6, 11
Tag Equity Info 1 Info 2 IQ=10 IQ=20 Java Java Ruby TQ=30 TQ=10 TQ=20 Tuesday, December 6, 11
Tag Equity TQ(Java)=30 TQ(Ruby)=20 Info 1 Info 2 IQ=10 IQ=20 Java Java Ruby TQ=30 TQ=10 TQ=20 Tuesday, December 6, 11
Tag Equity TQ(Java)=30 TQ(Ruby)=20 Info 1 Info 2 IQ=10 IQ=20 Java Ruby TQ=30 TQ=20 Tuesday, December 6, 11
Tag Equity TQ(Java)=30 TQ(Ruby)=20 Info 1 Info 2 IQ=10 IQ=20 Java Ruby TQ=30 TQ=20 Tuesday, December 6, 11
Tag Equity TQ(Java)=30 TQ(Ruby)=20 Info 1 Info 2 Info 3 IQ=10 IQ=20 IQ=30 Java Ruby TQ=30 TQ=20 Tuesday, December 6, 11
Tag Equity TQ(Java)=30 TQ(Ruby)=20 Info 1 Info 2 Info 3 IQ=10 IQ=20 IQ=30 Java Java Ruby TQ=30 TQ=60 TQ=20 Tuesday, December 6, 11
Tag Equity TQ(Java)=30 TQ(Ruby)=20 Info 1 Info 2 Info 3 Info 4 IQ=10 IQ=20 IQ=30 IQ=40 Java Java Ruby TQ=30 TQ=60 TQ=20 Tuesday, December 6, 11
Tag Equity TQ(Java)=30 TQ(Ruby)=20 Info 1 Info 2 Info 3 Info 4 IQ=10 IQ=20 IQ=30 IQ=40 Java Java Ruby Ruby TQ=30 TQ=60 TQ=20 TQ=70 Tuesday, December 6, 11
Tag Equity TQ(Java)=30 TQ(Java)=30 TQ(Ruby)=20 TQ(Ruby)=40 Info 1 Info 2 Info 3 Info 4 IQ=10 IQ=20 IQ=30 IQ=40 Java Java Ruby Ruby TQ=30 TQ=60 TQ=20 TQ=70 Tuesday, December 6, 11
Use Case: SunSpace - Sun Microsystems Social Enterprise Framework for Global Sales & Services 25,000+ users 150’000+ content items 12+ millions social activities 10x growth within first 6 month Community Equity implemented since 2008 Tuesday, December 6, 11
Information Ranking 27 Tuesday, December 6, 11
Expert Discovery 28 Tuesday, December 6, 11
Trend Discovery Tuesday, December 6, 11
Better Enterprise Search Tuesday, December 6, 11
Better Enterprise Search Better search results Tuesday, December 6, 11
Better Enterprise Search Better search results Personalized Recommendations Tuesday, December 6, 11
Better Enterprise Search Expertise Discovery Better search results Personalized Recommendations Tuesday, December 6, 11
User Profile (WIIFM) Social Ranking Recognition (Incentive) Expertise and Skills discovery Tuesday, December 6, 11
What’s In It For Me (WIIFM) Value Business: RoI, Users: WIIFM Adoption Process / Methodology Technology Enterprise Architecture Tuesday, December 6, 11
What’s In It For Me (WIIFM) Value Business: RoI, Users: WIIFM Social Adoption model Adoption Process / Methodology Technology Enterprise Architecture Tuesday, December 6, 11
Targeted Social Adoption Models Tuesday, December 6, 11
Targeted Social Adoption Models Sales Team Tech Team Tuesday, December 6, 11
Targeted Social Adoption Models Next Fiscal year - you can choose between: Sales Team Tech Team Tuesday, December 6, 11
Targeted Social Adoption Models Next Fiscal year - you can choose between: 5% more salary Sales Team Tech Team Tuesday, December 6, 11
Targeted Social Adoption Models Next Fiscal year - you can choose between: 5% more salary or work on a cool project Sales Team Tech Team Tuesday, December 6, 11
Use Case: Technology Leadership - Sun Fellow Principal Senior Engineer Engineer Tuesday, December 6, 11
Use Case: Technology Leadership - Sun Fellow Principal HR Levels Senior Engineer Engineer Tuesday, December 6, 11
Use Case: Technology Leadership - Sun Fellow Principal HR Levels HR Promotion Process Senior Engineer Engineer Tuesday, December 6, 11
Use Case: Technology Leadership - Sun Fellow Peer Review Principal HR Levels HR Promotion Process Senior Engineer Engineer Tuesday, December 6, 11
Use Case: Technology Leadership - Sun Fellow Peer Review Principal Candidate Pipeline Criteria's Internal Outreach External Outreach HR Levels HR Promotion Process Senior Engineer Intellectual Properties .... .... Over average Community Equity Engineer Tuesday, December 6, 11
Thanks ! peter.reiser@oracle.com http://blogs.oracle.com/peterreiser http://twitter.com/peterreiser Tuesday, December 6, 11

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Social ROI and Value modeling

  • 1. McKinsey's BTO meeting <Insert Picture Here> December 2011 Community Equity - How to build vibrant communities Peter H. Reiser Principal Architect, Oracle Tuesday, December 6, 11
  • 2. Oracle Safe Harbor Statement The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle. Tuesday, December 6, 11
  • 3. What is Enterprise 2. 0 ? How to build vibrant communities Web 2.0 Social Media Internal External Employees Customer Partners Suppliers Tuesday, December 6, 11
  • 4. The Enterprise 2.0 dilemma Business View Communities are a “good thing” BUT... What is the business case? How to integrate social & communities into our existing business processes ? What is the RoI? Users View I am too busy to sharing my content My time is better spent generating revenue (My knowledge is power) What’s In It For Me (WIIFM)? Tuesday, December 6, 11
  • 5. What if we can prove to the business the RoI of Communities (aka Enterprise 2.0) AND have answers for the users on WIIFM? Tuesday, December 6, 11
  • 7. How to build vibrant communities Value Adoption Technology Tuesday, December 6, 11
  • 8. How to build vibrant communities Value Adoption Technology Enterprise Architecture Tuesday, December 6, 11
  • 9. How to build vibrant communities Value Adoption Process / Methodology Technology Enterprise Architecture Tuesday, December 6, 11
  • 10. How to build vibrant communities Value Business: RoI, Users: WIIFM Adoption Process / Methodology Technology Enterprise Architecture Tuesday, December 6, 11
  • 11. Objectives Seamless integrate social & communities into all core business processes Establish a standardized Enterprise 2.0 Framework to support social, collaboration and communities Measure the impact of social, collaboration & communities along the business processes Establish targeted social value models Tuesday, December 6, 11
  • 12. Core Business Processes Product Product Opportunity Opportunity BID BID Delivery Delivery Support Creation Creation Mngt. Mngt. Mngt. Mngt. Tuesday, December 6, 11
  • 13. Business Processes and Applications Product Product Opportunity Opportunity BID BID Delivery Delivery Support Creation Creation Mngt. Mngt. Mngt. Mngt. Tuesday, December 6, 11
  • 14. Social Enterprise Community Framework Product Product Opportunity Opportunity BID BID Delivery Delivery Support Creation Creation Mngt. Mngt. Mngt. Mngt. Social Enterprise Community Framework Tuesday, December 6, 11
  • 15. Business/Communities Metrics Product Product Opportunity Opportunity BID BID Delivery Delivery Support Creation Creation Mngt. Mngt. Mngt. Mngt. Social Enterprise Framework Tuesday, December 6, 11
  • 16. Use Case: AIM KMS - Sun Microsystems Re-Use of Content in Opportunity Management and Project Delivery Tuesday, December 6, 11
  • 17. Re-Use of Documents Enterprise Community and Collaboration Framework (AIM KMS & SunSpace) Project 3 Re-Use Project 1 Project 2 Tuesday, December 6, 11
  • 18. Re-Use compared to Win Rate and Margin Product Opportunity BID Delivery Delivery Support Creation Mngt. Mngt. Forecast Win Rate Margin Enterprise Social and Community Framework (AIM KMS & SunSpace) Tuesday, December 6, 11
  • 19. RoI on Communities (Sun Microsystems)  Up to 14 % better win rate  Up to 20% higher project margin Tuesday, December 6, 11
  • 20. ROI calculation Revenue : 11,000 Millions 80% of projects in AIM KMS: 8,800 Millions 15 % average Re-Use: 1,320 Millions Average win rate improvement : 10 % ROI: 132 Millions incremental revenue Tuesday, December 6, 11
  • 21. Social & Business Value per Document Social Values Business Values Downloads Wins Ratings Revenue Re-Use Hours saved Tuesday, December 6, 11
  • 24. Community Equity Contribution Documents Wiki Blogs Patents Tuesday, December 6, 11
  • 25. Community Equity Contribution Participation Documents Rate Wiki Comment Blogs Re-use Patents Tags Tuesday, December 6, 11
  • 26. Community Equity Contribution Participation Documents Rate Wiki Comment Blogs Re-use Patents Tags Skill Education Skills Reputation Tuesday, December 6, 11
  • 27. Community Equity Contribution Participation Documents Rate Wiki Comment Blogs Re-use Patents Tags Skill Role Education Skills Business Reputation Communities Tuesday, December 6, 11
  • 28. Community Equity Contribution Participation Documents Rate Wiki Comment Blogs Re-use Patents Personal Tags Skill Personal Role Equity Education Skills Business Reputation Communities Tuesday, December 6, 11
  • 29. Community Equity Mathematical Model Object Activity | Contribution - Aging | Partipation - Aging Tuesday, December 6, 11
  • 30. Information Equity Content Activities Community Tuesday, December 6, 11
  • 31. Information Equity Content Activities Community Tuesday, December 6, 11
  • 32. Information Equity Content Activities Community create modify download view rate comment tag Tuesday, December 6, 11
  • 33. Information Equity Content Activities Community create modify download view rate comment tag Tuesday, December 6, 11
  • 34. Personal Equity My Community Equity Activities Me Community Tuesday, December 6, 11
  • 35. Personal Equity My Community Equity Activities Me Community Tuesday, December 6, 11
  • 36. Personal Equity My Community Equity Activities Me Contribution create modify tag Community Tuesday, December 6, 11
  • 37. Personal Equity My Community Equity Activities Me Contribution create modify tag Community Participation view rate comment reuse Tuesday, December 6, 11
  • 38. Personal Equity My Community Equity Activities Me Contribution create modify tag Community Participation view rate comment reuse Tuesday, December 6, 11
  • 41. Tag Equity Info 1 IQ=10 Tuesday, December 6, 11
  • 42. Tag Equity Info 1 IQ=10 Java TQ=10 Tuesday, December 6, 11
  • 43. Tag Equity Info 1 Info 2 IQ=10 IQ=20 Java TQ=10 Tuesday, December 6, 11
  • 44. Tag Equity Info 1 Info 2 IQ=10 IQ=20 Java Java Ruby TQ=30 TQ=10 TQ=20 Tuesday, December 6, 11
  • 45. Tag Equity TQ(Java)=30 TQ(Ruby)=20 Info 1 Info 2 IQ=10 IQ=20 Java Java Ruby TQ=30 TQ=10 TQ=20 Tuesday, December 6, 11
  • 46. Tag Equity TQ(Java)=30 TQ(Ruby)=20 Info 1 Info 2 IQ=10 IQ=20 Java Ruby TQ=30 TQ=20 Tuesday, December 6, 11
  • 47. Tag Equity TQ(Java)=30 TQ(Ruby)=20 Info 1 Info 2 IQ=10 IQ=20 Java Ruby TQ=30 TQ=20 Tuesday, December 6, 11
  • 48. Tag Equity TQ(Java)=30 TQ(Ruby)=20 Info 1 Info 2 Info 3 IQ=10 IQ=20 IQ=30 Java Ruby TQ=30 TQ=20 Tuesday, December 6, 11
  • 49. Tag Equity TQ(Java)=30 TQ(Ruby)=20 Info 1 Info 2 Info 3 IQ=10 IQ=20 IQ=30 Java Java Ruby TQ=30 TQ=60 TQ=20 Tuesday, December 6, 11
  • 50. Tag Equity TQ(Java)=30 TQ(Ruby)=20 Info 1 Info 2 Info 3 Info 4 IQ=10 IQ=20 IQ=30 IQ=40 Java Java Ruby TQ=30 TQ=60 TQ=20 Tuesday, December 6, 11
  • 51. Tag Equity TQ(Java)=30 TQ(Ruby)=20 Info 1 Info 2 Info 3 Info 4 IQ=10 IQ=20 IQ=30 IQ=40 Java Java Ruby Ruby TQ=30 TQ=60 TQ=20 TQ=70 Tuesday, December 6, 11
  • 52. Tag Equity TQ(Java)=30 TQ(Java)=30 TQ(Ruby)=20 TQ(Ruby)=40 Info 1 Info 2 Info 3 Info 4 IQ=10 IQ=20 IQ=30 IQ=40 Java Java Ruby Ruby TQ=30 TQ=60 TQ=20 TQ=70 Tuesday, December 6, 11
  • 53. Use Case: SunSpace - Sun Microsystems Social Enterprise Framework for Global Sales & Services 25,000+ users 150’000+ content items 12+ millions social activities 10x growth within first 6 month Community Equity implemented since 2008 Tuesday, December 6, 11
  • 54. Information Ranking 27 Tuesday, December 6, 11
  • 55. Expert Discovery 28 Tuesday, December 6, 11
  • 58. Better Enterprise Search Better search results Tuesday, December 6, 11
  • 59. Better Enterprise Search Better search results Personalized Recommendations Tuesday, December 6, 11
  • 60. Better Enterprise Search Expertise Discovery Better search results Personalized Recommendations Tuesday, December 6, 11
  • 61. User Profile (WIIFM) Social Ranking Recognition (Incentive) Expertise and Skills discovery Tuesday, December 6, 11
  • 62. What’s In It For Me (WIIFM) Value Business: RoI, Users: WIIFM Adoption Process / Methodology Technology Enterprise Architecture Tuesday, December 6, 11
  • 63. What’s In It For Me (WIIFM) Value Business: RoI, Users: WIIFM Social Adoption model Adoption Process / Methodology Technology Enterprise Architecture Tuesday, December 6, 11
  • 64. Targeted Social Adoption Models Tuesday, December 6, 11
  • 65. Targeted Social Adoption Models Sales Team Tech Team Tuesday, December 6, 11
  • 66. Targeted Social Adoption Models Next Fiscal year - you can choose between: Sales Team Tech Team Tuesday, December 6, 11
  • 67. Targeted Social Adoption Models Next Fiscal year - you can choose between: 5% more salary Sales Team Tech Team Tuesday, December 6, 11
  • 68. Targeted Social Adoption Models Next Fiscal year - you can choose between: 5% more salary or work on a cool project Sales Team Tech Team Tuesday, December 6, 11
  • 69. Use Case: Technology Leadership - Sun Fellow Principal Senior Engineer Engineer Tuesday, December 6, 11
  • 70. Use Case: Technology Leadership - Sun Fellow Principal HR Levels Senior Engineer Engineer Tuesday, December 6, 11
  • 71. Use Case: Technology Leadership - Sun Fellow Principal HR Levels HR Promotion Process Senior Engineer Engineer Tuesday, December 6, 11
  • 72. Use Case: Technology Leadership - Sun Fellow Peer Review Principal HR Levels HR Promotion Process Senior Engineer Engineer Tuesday, December 6, 11
  • 73. Use Case: Technology Leadership - Sun Fellow Peer Review Principal Candidate Pipeline Criteria's Internal Outreach External Outreach HR Levels HR Promotion Process Senior Engineer Intellectual Properties .... .... Over average Community Equity Engineer Tuesday, December 6, 11
  • 74. Thanks ! peter.reiser@oracle.com http://blogs.oracle.com/peterreiser http://twitter.com/peterreiser Tuesday, December 6, 11