Slides from my keynote this afternoon in Paris at the Enterprise 2.0 SUMMIT. Overview of where social business is, what the macro trends are, and the story about consumerization, big data, analytics, and much more.

1. Next-Generation Ecosystems
And its Key Success Factors
Dion Hinchcliffe (@dhinchcliffe)

2. Introduction Spring 2012
Dion Hinchcliffe
• ZDNet’s Enterprise Web 2.0
• http://blogs.zdnet.com/Hinchcliffe
• ebizQ’s Next-Generation Enterprises
•
http://www.ebizq.net/blogs/enterprise
•• EVP of Strategy
http://dachisgroup.com
• mailto:dion.hinchcliffe@dachisgroup.com
• : @dhinchcliffe
® 2012 Dachis Group 2

3. Dachis Group
Social Business Trends 2012
• Implementations are getting bigger and Enterprise
growing faster than ever Community
• Virtually all data continue to show sustained
real-world benefits (McKinsey, IBM, Frost and Sullivan, AIIM)
• Everything is becoming social: Social features are
appearing in virtually all types of applications
• There continues to be considerable confusion about
who “owns” social in the organization
• The predicted social data explosion: It happened
• Mining insight from social data has now become a
major industry (#bigdata, #analytics)
• The blur between internal and external social
business has not progressed as far as many thought
• The first serious talk about open social business
standards has begun
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4. Dachis Group
Other Social Business Trends for 2012
social analytics and BI
better integrated social
business processes more budget
enterprise-level organization Social Business move to mobile
for social business
internal
external
blurring begins but social apps
does not widely occur
community management
becomes strategic
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4

5. 3 Recent Examples
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6. Dachis Group
Status as of December, 2011
Source: Alcatel-Lucent
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7. Dachis Group
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8. Dachis Group
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9. Looking at the data
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10. Dachis Group
Types of Business Gains Possible with Enterprise Social Media
Self-Reported Average Industry Improvements From Large Organizations
25-30% faster access to expertise
10-20% reduction in 30% faster customer
travel and Increased Productivity Revenue Creation
care processes
communication costs
Overcoming Shorter
distance and external
time zone support
10-15% reduction in barriers to cycles
collaboration 18% higher customer
communication costs
satisfaction
10% decrease in
Self- Faster 10% higher customer
operational costs service Increased
content
location of customer loyalty
experts satisfaction
sharing
More Better & retention
rapid new business
hire ramp- decisions
up
Improved
connections
Less time between
spent departments 15% increase in
20-30% increase in looking for and internal Improved
information teams global sales successful innovations
access to expertise processes
& ideas
30% increase in 10% increased revenue
Cost Reduction Connected Culture
speed of access to
knowledge 35% increase in collaboration
20% lower communication costs
Source: Synthesis of McKinsey, Dachis Group, and other social business benefits data.
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11. Dachis Group
Fully social organizations get outsized benefits
Source: 2011 McKinsey Web 2.0 Survey
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12. Dachis Group
The Lesson: Social business is...
part of a single continuum...
one unified ecosystem
Social
Busine
enterp
rise ec s
osyste
s
m
rnet
t
ane
Inte
customers + extr
world
t
ane
business partners
intr
Social integr
ated
Innovation Crowdsourcing vision
workers
Social Marketing Social CRM
Customer Communities Enterprise 2.0
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13. Social isn’t happening in a vacuum
• Major forces of change co-exist
• Many of these significantly impact social
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14. Dachis Group
The good news: Technology and productivity
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15. Dachis Group
But is this coming from technology investments?
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16. Dachis Group
Who is currently leading innovation?
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17. Dachis Group
Yet 60% of CIOs believe they should be driving
growth and productivity.
Source: Deloitte Survey, 2011
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18. Dachis Group
But technology change is happening faster
today than ever before
• A tsunami of new mobile devices and technologies
• A pervasive wave of social media
• The rumbles of cloud computing and SaaS
• The shift to DIY
• A flood of Big Data
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19. Dachis Group
A perfect storm of change
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20. Dachis Group
Happening almost all at once
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21. Dachis Group
Key data point #1: Mobile
• Smart mobile devices
outshipped PCs in early 2011
• Tablets are expected to on par
with PCs by 2015
• Smart mobility strategies
(particularly the iPad) have now
become a top priority of most
Fortune 500 CIOs
• Global mobile data going
geometric is going to be the
largest challenge to growth and
use
• App stores are creating all new
conduits between IT suppliers
and workers
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22. Dachis Group
Mobile Internet Ramping Up Faster Than
Desktop Internet by 5x
Source: Mary Meeker, Morgan Stanley
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23. Dachis Group
Key data point #2
The Adoption Rates of E-mail, Social Networks, and E2.0
• Social is now the
dominant form of 1B
Internet 100%
communication on projected
the planet 750M 75%
Enterprises
Global Users
Percent of
• Enterprises are 2-4 imate
years behind the high est
50%
rest of the world. 500M
low estimat
e
• Yet data shows 25%
that revenue of 250M
social businesses
2006 2007 2008 2009 2010 2011
is 24% higher on
average. Consumer
Social E-mail Enterprise 2.0
Profitability is Networks
better too. Sources: comScore, Hitwise, and The Radicati Group, Forrester, APC, Intellicom, Neilsen
Norman Group, Social Business Council, NetStrategy/JMC
- Source: McKinsey
and Frost & Sullivan
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24. Dachis Group
Hundreds of public social networks...
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...channel fragmentation 24

25. Dachis Group
Dozens of internal social channels
• E-mail
• Text messaging
• Instant messaging
• Meetings and conference calls
• Enterprise 2.0
• Social CMS
• Knowledge management
• Intranets
• Online communities
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26. Dachis Group
The Cloud Is Increasingly Subversive
• It’s in our worker’s homes
• It’s on their laptops and PC at work
• It’s in our worker’s pockets
• It’s the world’s largest IT department
• It has all the data
• It has all the apps
• It has all the people
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27. Dachis Group
So Workers Have Moved...
And Companies Have Fallen Behind
• Social
• Mobile
• New Digital Channels
- Cloud
- App Stores
• Approximately 1 Billion “Digital Natives” Have
Migrated In the Last 3 Years
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28. Dachis Group
A new mindset has arrived: Consumerization
• “It’s not so hard, I can do this myself.” DIY
• “There’s an app for that.”
• “I’ll just use Facebook on my own device.”
• “What’s the URL for that?”
• “We’ll ask for forgiveness instead of permission.”
• “This app is way too hard to use. I’ll use my own.”
Simple Fast Easy
And Works
The Way
They Want It To
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29. Dachis Group
A tidal wave of data
• 80-90% of IT
information is not
accessible
• The amount of
information today is
just a trickle
compared to what it
will be in 2-3 years
• It will require all new
technologies and
skills that IT
departments don’t
have
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30. Dachis Group
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31. Dachis Group
Another Way of
Looking At All This
World
Workers
IT
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32. Dachis Group
Premise: Tech is becoming pervasive and user-driven
• In 2000, only 10% of IT was unsanctioned
or outside of central control
• Today that’s 30% and climbing quickly.
• Shadow use of social media is
particularly pronounced
CoIT
Traditional
IT
2000 2010
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33. Dachis Group
Together, all of this is unsustainable
And it impacts how we build our new ecosystems
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34. Dachis Group
We Must Become Resilient to Constant Change
There is great economic and social value
in achieving this (in pink above)
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35. Dachis Group
How do we design for loss of control?
• “Make change an integral function. Native.”
- JP Rangaswami
frequent
adaptive
course cycles of
corrections change
refinement
growth
disruption
renewal
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36. Dachis Group
CoIT: Enabling Social Business Innovation
• A consumer notion of IT
• Driven bottom-up and guided from top-down
• In other words: Cooperative IT
Consumerized IT
Cooperative IT
#CoIT
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37. Dachis Group
The Future of IT: Consumerization & Cooperation
• Broad enterprise uptake of consumer tech
• Business-led solutions with IT support • Consumerization
CoIT • Disruptive software distribution models
• IT as enabling business infrastructure of the workplace
•
• Exponential increases in apps/devices
• Decentralized governance Rise of shadow IT
pressure to
change (10% ten years
Tec Social Computing ago, nearly a 3rd
today)
h
Consumer Tech
Enterprise Evolution
nol
•
ogic
Shadow IT Adoption SaaS makes
al
narrowing
Cloud Computing/SaaS enterprise cloud
Dis
gap
apps just a URL
rup
Next-Gen Smartphones
away
tion
App Stores
• Smartphones the
The Business/IT new “IT dept in
Divide
Line control vs. progress your pocket”
of
profit center vs.
overhead
change backlog
IT
Dept.
• Tech savvy business
Business lack of alignment users leading the
unlike competencies
differing priorities charge with their
Common Ground own vision

38. Dachis Group
The 21st Century Organization
Radical Change, Social Engagement, Ecosystems, and Knowledge Flows:
Customers +
va The World
lue
inn
ov
a
tio
n
refinement
Workers growth me
tco
emergent outcome ou
disruption rge nt
renewal eme
dig
ita
ome
ld
outc
emergent
eliv
er y
cycles of int
en eme
change tion rge
nt o
al utco
ou
lifecycle of tco me
me
knowledge flows

39. In the meantime, social data continues to
accumulate
• Containing vast quantities of useful information
• But we’re just learning how to deal with it
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40. Dachis Group
Data (and knowledge) is increasingly visible in social channels
It no longer “evaporates” or is hidden
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41. Dachis Group
value
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42. Dachis Group
But is all this observable information valuable?
story
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43. Dachis Group
Observable work: The issues
• 1 day a week is spent by
workers looking for info to do
their jobs. Source: Forrester
• Half of work in developed
nations is tacit knowledge.
Source: McKinsey
• Social channels cause data
volumes to grow vastly after
several years. Source: Jive
• 80-90% of most business data is
submerged in IT systems and
not accessible. Source: Various
including Gartner, IDC, others
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44. Dachis Group
“Information overload is not the problem. It’s
filter failure.” - Clay Shirky
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45. Dachis Group
Our information landscape is now measured in
millions of exabytes
1 EB = 1,000,000,000,000,000,000 B = 1018 bytes = 1 billion gigabytes = 1 million terabytes
• Social ecosystems are largely responsible.
• The good news: Information is no longer
submerged.
• However, it is increasingly becoming an onslaught.
Visible
Knowledge Us
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46. Dachis Group
Comparing analytics with search
Seeing the Finding the
shape of the needle
haystack
analytics versus search
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47. Dachis Group
How do we get to the third wave?
• Cloud computing? SOA?
• Open APIs and supply chains?
• Decentralized IT?
• Better data warehouses?
• Improved search engines?
• Recommendation systems?
• Business re-engineering?
The Goal: Breaking down
• How about analytics? information silos and
obscured information inside
and outside of our
organizations to get to value
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48. First, it’s about listening
® 2011 Dachis Group. 48

49. Dachis Group
The new flow of business
• Maintain an understanding of
everything the marketplace knows
• Be able to connect the dots of social
• Tap widely and deeply into the activity across all channels
top social channels • Wield strategic insight that can be
• Pick up important social leveraged across the organization
signals in near real-time Listen Analyze • Initiate responses systematically
• Centralized capacity to update from policy with less duplication and
listening capabilities as the with high degrees of automation
social marketplace continues • Share and provide access to data
to rapidly evolve and insight to all stakeholders
• Enable all stakeholders to
access vital social activity
informs
New products,
Social Business services, and
Capability products
informs Social
Business
Connect with customers in their Engage Processes
channel of preference to drive high
value activities such as better
customer care, product input,
innovation, and sales
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50. Dachis Group
How will we listen?
http://apps.facebook.com/friendwheel
• Personally
In our social environments
On our devices
With our social capital
For our work
• Using strategic tools
To automate
To scale
With aggregate social capital
To guide the business
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51. Dachis Group
Strategic social media data analytics exists
• But are are just emerging from
infancy
• Focus primarily on the outside
world
• Strongly favor new social
environments over older style and
vertical communities
• Have limited analytics abilities
• Don’t connect well to existing
reporting tools and data
warehouses
• Are relatively expensive (compared
to free)
They also exist where you don’t
expect them
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52. Dachis Group
Nascent social analysis: Reputation systems
• Plug-ins or E2.0 application features that
allow user feedback of contributions
• Including posts, comments, and even tags
• Example: LiquidPub
• Allow quality and portable reputations to be
established over time in E2.0 ecosystems
• Most useful for newish or large social
business environments
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53. Dachis Group
What is social analytics used for?
• Sentiment analysis
• Expertise location
• Critical situation tracking
• Root cause analysis
• Trend extraction
• Sociology
• Knowledge mining & discovery
• Social capital management
• Social supply chain
• And much more
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54. Dachis Group
Social + data analytics = business intelligence
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55. Dachis Group
What a social business ecosystem looks like
• Complete view of internal
and external social media
• Analytics and visualization
of vital trends and events
• Automated evaluation and
prioritization of strategy &
policy issues Big
• Operational pipeline
Data Listen &
Analyze • Business objectives
• Social business
“rules of the road”
• Social media policy
Social Innovation • Structural and
process reforms
Social Marketing
Guide
Strategy • Transformational
Social CRM roadmap
and
Social Workforce Policy
Crowdsourcing
The World
Social
Business
• Manage, support, and Community
cultivate the participative
aspects of social media-
Management Engage
based business solutions,
both internal and external
• Interact with customers,
business partners, and
workers to help and guide
Feedback Loop
them towards useful and virtuous cycle
business outcomes
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56. Dachis Group
Key Success Factors
• Everyone must be able to participate
• Turn on network effects by default
• Cultivate the right communities
• Plan for change and the unexpected
• Remove barriers to participation
• Listen, analyze, and engage continuously
• Integrate social into the flow of work
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57. May 2012
Thank you