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July 2012




Microsoft Dynamics

The Connected
Enterprise
Embracing social
technologies to drive
the Dynamic Business
Introduction
               Today’s businesses face dramatic change                                 The world revolves around communities. People
               concurrently on several axes, including technology                      form and join communities to communicate and
               change, generational change as Millennials enter                        collaborate – to get stuff done. Communities have
               the workforce, and a new economic reality. In terms                     existed since time began: families, tribes, cities, teams,
               of technology changes none has been as rapid and                        clubs and interest groups. Social technologies have
               pervasive as social technologies. Social technologies                   expedited and simplified how people connect and
               including blogs, forums and social networks are                         collaborate globally in real time.
               transforming the relationship between businesses and
                                                                                       Advances in communication and collaboration, such
               their communities of employees, prospects, customers
                                                                                       as radio, television, telephone, email and internet,
               and partners. Let’s first explain social in simple terms.
                                                                                       have been a constant throughout the 20th century.
               Humans are inherently social. Social as a concept                       Social networks, such as Facebook, are yet another
               is not new – no one actually invented social!                           channel of human interaction; they have been adopted
               Dictionary definitions* include: human society                          at an unprecedented rate! Radio took 38 years to
               and how it is organized; the way in which groups                        reach 50 million users – Facebook took less than
               of people behave and interact; living as part of a                      9 months to reach 100 million users! The sheer scale
               community or colony rather than alone.                                  of social networks means that millions of people are
                                                                                       now connected globally and in real time in ways not
                 *	 Social definition: Encarta® World English Dictionary
                    [North American Edition]                                           imaginable with other communication technologies.



                                                  Years to reach 50 million users:




                                                  Radio:                    Television:                Internet:                  Facebook:
                                                  38 years                  13 years                   4 years                    100 million
                                                                                                                                  <9 months
                                                  Source: socialnomics.net – Social Media Revolution Video (Refreshed), By Erik Qualman


                                                                                                                                                1
Introduction
                                                                  However, it is important to put this technology
    Microsoft is defining a connected and                         wave in perspective. Telephone has not
    forward-looking enterprise, the successful                    replaced face-to-face meetings; email has not
    enterprise of the future.                                     replaced telephone; social technologies are
                                                                  yet another means for people to connect and
What has prompted this mass adoption of social             interact. Your customers expect flexibility in the way
technologies in day-to-day life? Leading social media      they engage with you, whether that is via the web,
expert Clara Shih writes:                                  face-to-face, phone, email and now social.

    “The social Web appeals to innate human                Some would have you believe that social technologies
     desires for self-expression, human                    alone will guarantee the success that businesses seek.
     connection, and a sense of belonging...               The reality is, social for the sake of being social is just
     Social networking captures our pictures,              noise without context. Many executives view social
     feelings, and relationships, and makes                technologies as distractions rather than enablers for
     the Web feel human again.”                            this reason.

How does this apply to business? Business success          Microsoft has a powerful vision beyond just a
hinges on one or more of the following aspirations:        social enterprise – we are defining a connected
increasing revenue, driving customer loyalty and           and forward-looking enterprise, the successful
identifying new business opportunities. These days         enterprise of the future; an enterprise that
everyone is looking for the silver bullet to achieve       connects its employees, partners and customers
success. For years, we have been focusing on the           to what they need, in the right context, using the
business benefits of increasing productivity, but          device and channel they prefer. We call that the
let’s face it, your people can be communicating,           Dynamic Business.
collaborating and generally doing lots of things faster,
                                                           This paper outlines how you can get started with a
but that doesn’t guarantee they are the right things.
                                                           social strategy that enhances your sales, marketing
Social technologies are becoming increasingly              and service capabilities. We will articulate how social
prevalent in daily personal and professional               technologies fit into Microsoft’s vision and strategy
life. Social technologies provide simple                   for proactive, agile and forward-looking business
collaboration for employees and new means of               solutions that facilitate people getting the right things
understanding and interacting with customers.              done while delivering better customer experiences.



2
Business
Opportunities
with Social     Regardless of your role in an organization,
                there are constant demands to contend with.           The Dynamic Business places customers’
                Marketing professionals need to tap into the          wants and needs at the center of everything
                voice of the customer and broaden the reach           they do.
                of their marketing message. Sales professionals
                need to easily keep track of the network of people        They expect business software that enables them
                and business events that are relevant to closing deals.   to connect, communicate and collaborate as easily
                Service professionals need to identify and resolve        as they do via social networks such as Twitter
                customers’ issues through an ever-increasing array of     and Facebook.
                communication channels.
                                                                          We now have a new category of customer: the
                 The Dynamic Business places customers’ wants and         social customer. These are businesses and consumers
                needs at the center of everything they do. They rally     who use social technologies to get their questions
                their people, processes and technology around this        answered, problems solved, contribute ideas,
                objective. It starts with people. People make things      complain, praise and endorse whenever and from
                happen through the communities they participate           wherever they want. According to a recent survey by
                in. A Dynamic Business manages relationships across       IAB and Lightspeed in the U.K., over 44% of adults
                internal and external communities.                        now use the web to share grievances about products
                                                                          and services, and 1 in 5 consumers who complain to
                Millennials entering the workforce are driving new
                                                                          brands via Twitter or Facebook want a response within
                expectations of business software. Millennials have
                                                                          the hour. Businesses need to provide flexible and
                grown up with computers, software, the internet,
                                                                          convenient ways of listening to and engaging with
                intelligent devices and constant connectivity.
                                                                          these communities on their terms.
                They approach business software through a consumer
                lens; they expect simplicity and instant results.         Paul Greenberg, a respected authority on the use of
                Their networks and communities will come with             social technologies, articulates a social strategy as
                them to work, blurring the lines between personal         “the company’s response to the customer’s control of
                and professional relationships. These individuals         the conversation.” In other words, a Dynamic Business
                want to quickly and easily ask questions, find            listens and engages with customers rather than
                expertise, keep up to date on events that affect          just talking at them. External communities control
                their role and have their achievements recognized.        the perception of products, services and brands, not
                                                                         the business. Social engagement is about starting a
                                                                         dialog with your communities.

                                                                                                                               3
Business
                                                                                                                                 Opportunities
Given these realities, what are the business opportunities
with social technologies?
                                                                                                                                   with Social
    Listen                Listen, monitor and dissect social conversations to uncover trends and key influencers.


    Engage                Conduct a dialog with stakeholders to inform, respond and influence.


    Amplify               Utilize communities to broadcast your message and drive awareness.


    Solve                 Harvest and reuse community knowledge and connect customers to solve problems.


    Innovate              Identify business opportunities and ideas through crowd-sourcing communities.


    Analyze               Measure buzz, calculate stakeholder sentiment and determine impact.

Adapted from various sources, including William Band, Ray Wang, Charlene Li and Josh Bernoff


During the course of this paper we will demonstrate                    business strategy. Businesses who have successfully
how you can seize these opportunities to create your                   employed a social strategy found executive
Dynamic Business.                                                      sponsorship and employee buy-in crucial.

Knowing where to begin may seem daunting. Many                           “To win clients, we have to show that we
businesses are wrestling with this dilemma. The                           can seamlessly connect to the people and
good news is, there are many things you can start                         the data we need to get the job done. With
with today and there are a broad range of tools from                      Microsoft social networking and search tools,
Microsoft to assist you from a technology standpoint.                     it’s a done deal.”

It is also important to note a social strategy is                                    —Chris Miller, Senior Director, Accenture
contingent on culturally embracing the concepts
in conjunction with the software tools themselves.                     Let’s now delve into specifically how a social
No amount of technology can compensate for a lack                      strategy can positively impact your sales, service
of cohesive planning in how social fits into your overall              and marketing processes.


4
Social
Marketing
            Marketing strategies can benefit greatly
            from the use of social media as an additional          Public social networks provide marketing
            channel to broadcast announcements,                    organizations with a direct and immediate
            messaging and offers. You have the                     line to their customers.
            responsibility to keep the content you share
            relevant and fresh; use the same principles you apply       Marketing via social networking sites does not
            to your web site content – if you don’t keep it current     replace traditional marketing; it should reflect and
            you risk losing the attention of your social customers      complement those efforts. Lori and team should
            and with it, credibility.                                   participate in campaign planning and execution to
                                                                        know what and when to broadcast, as well as how to
            Start simply!                                               meaningfully engage via social media.
            Let’s say we have a marketing manager, Lori, who
                                                                        Public social networks provide marketing
            has a passion for social media and is an active social
                                                                        organizations with a direct and immediate line to
            customer herself. Step 1 is to empower Lori and others
                                                                        their customers, providing them with new insights
            as social community managers to start the social
                                                                        into customer perceptions of brand and the products
            conversation. Open an official YouTube channel,
                                                                        and services that you (and your competitors) offer.
            Twitter account or Facebook page and empower
                                                                        On social networks such as Twitter, people are
            people like Lori to use these networks to broadcast
                                                                        typically blunt in their feedback and opinions. All of
            announcements and content and share business
                                                                        these conversations are going on globally, 24 hours
            achievements. Lori’s objective is to drive interest and
                                                                        a day. It is important to listen and analyze how your
            social commentary on your organization. Lori and
                                                                        brand is resonating. Armed with this information, you
            team have to be active in the community – they need
                                                                        can fine tune or course-correct as needed. Microsoft
            to start a dialog.
                                                                        provides tools for this purpose, such as Analytics for
                                                                        Twitter and FUSE Labs.




                                                                                                                               5
Social
                                                                                                         Marketing
Analytics for Twitter allows Lori to query      Microsoft FUSE Labs works in partnership with
Twitter directly from Microsoft® Office Excel   our product and research teams to ideate, develop
2010. Lori can easily understand who are the    and deliver new social, real-time and media-rich
top Tweeters, what #hashtags they are using     monitoring and analysis. FUSE Labs solutions give Lori
and do they have a positive or negative tone    new ways to create, connect and collaborate with the
or sentiment.                                   people, information and ideas that matter to her.




Figure 1: Analytics for Twitter                 Figure 2: FUSE Labs Montage




                     Microsoft provides you with the tools to monitor,
                     understand and participate in customer conversations.




6
Social Sales
               The average seller spends too much time on non-                   Microsoft provides micro-blogging tools for this
               selling activities.* Salespeople are constantly looking           kind of simple collaboration in both SharePoint and
               for answers and expertise to close more deals faster.             Dynamics CRM.
               In our personal lives it’s incredibly easy to find
               people and information we need through search
               engines and social networks. It makes sense to
               introduce consumerized social experiences into
               business solutions.

               Micro-blogs allow people to send short messages
               (posts) including questions, answers and comments.
               Other people can respond enabling simple,
               streamlined collaboration. A salesperson, Terry,
               could post that he is looking for expertise to help
               on a big deal. Jill, a technician, can respond with               Figure 3: Microsoft Dynamics CRM Activity Feeds
               a simple post to let Terry know she can help out.
               This avoids multiple emails. In this way, Terry and               Ask any salesperson how they meet revenue targets
               Jill (who may not even know each other) can easily                and they’ll tell you it’s all about how they can stay on
               connect and collaborate across organizational                     top of the situation. How does Terry cut through the
               boundaries to drive a successful sales outcome.                   clutter of daily business and listen to what’s going on
                                                                                 in the context of his specific accounts, leads, contacts
                                                                                         and deals? Microsoft Dynamics CRM provides
                 It’s incredibly easy to find people and                                 Activity Feeds presenting a simple timeline
                 information we need through search                                      view of what’s going on in the business based
                                                                                         on what’s important to Terry – it is the same
                 engines and social networks.
                                                                                         concept as the Facebook Wall.


                 *	 http://blog.sellingpower.com/gg/2011/02/how-much-time-do-your-salespeople-spend-selling.html




                                                                                                                                            7
Social Sales
                                                                     into customer connections, preferences,
    Microsoft provides you with tools for your                       behaviors and sentiments, which can lead
    sales teams to bring simple social principles                    to more productive sales engagements.
    into how they communicate and collaborate.                       Microsoft provides the Outlook Social
                                                                     Connector that allows people to manage
All Terry has to do is follow the people, organizations    their social networks and stay up-to-date directly in
and events he cares about and his timeline view            Outlook. With this tool, Terry can see social profiles
reflects that. He can review this no matter where he is,   from LinkedIn and Facebook and interactions such
at his desk or out of the office on his mobile devices.    as emails and documents exchanged. He can also
                                                           see appointments attended all without ever leaving
Terry is results-oriented. He likes to have his
                                                           his Inbox.
achievements acknowledged (and broadcast).
Activity Feeds can be configured to automatically
post updates when events occur, such as closing a
deal. When Terry closes a deal the system has now
informed the world that Terry is a star. Not only does
Terry’s boss get the news, but also the VP of sales.
The system has become a promoter of Terry’s actions
– he doesn’t have to worry about sending out that
bragging email anymore.

    “Microsoft Dynamics CRM social capabilities
     make it easier for our teams to communicate
     and collaborate quickly and simply... Our
     users love the ability to follow all relevant
     activity across the accounts they own.”               Figure 4: Outlook Social Connector

            —Brian Gabriel, Senior Software Engineer,      Microsoft provides you with tools for your sales
                                           FM Global
                                                           teams to bring simple social principles into how
Salespeople constantly need to make decisions about        they communicate and collaborate, as well as
the deals and people they work with. Public social         harness external social networks for new ways to
networks such as LinkedIn provide additional insight       find, connect with and understand customers.


8
Social
Customer
Service    The service professional plays a critical role in
           driving positive customer experiences. Many            The proliferation of mobile devices allows
           times the service professional is the only             customers to air their thoughts “in the heat of
           human touch point to the customer. Their               the moment.”
           responsibility is to turn customers into
           loyal fans. In our example, Ken, the service manager,       what #hashtags they are using, and even drill into
           has this responsibility. For Ken, it’s about finding new    individual tweets to engage directly with that
           ways to engage customers and respond quickly to             individual. In real time, Ken can gauge whether there
           their concerns and comments.                                is cause for deeper research.

           The social customer will use social networks to air        When Ken identifies an escalating issue, he needs
           their opinions and lay down the gauntlet for an            to be able to work with marketing to determine an
           organization to listen and respond, quickly. The           appropriate response plan. If the issue has been
           proliferation of mobile devices allows customers           surfaced via social media, then one of the response
           to air their thoughts “in the heat of the moment.”         channels has to be social media itself. Businesses gain
           This presents both a challenge and an opportunity          kudos and credibility from their social customers by
           for Ken. The challenge is, how does Ken’s team trawl       acknowledging and responding to problems through
           thousands of conversations on social networks like         social channels. Social provides an opportunity for
           Twitter and Facebook to identify people who are            the business to proactively address issues at scale. The
           detailing problems they want fixed? The opportunity        business can quickly reverse a negative situation.
           is to respond in real time and demonstrate that they
                                                                      Kudos received by handling an issue proactively also
           were heard; you can turn a negative experience into
                                                                      has other positive effects. Social customers who have
           a positive one and win your customer’s trust.
                                                                      great service experiences will publicize them via
           Furthermore, Ken can analyze these opinions and            social networks. Most customers listen to and trust
           views providing a valuable “early warning” system          peers above anyone else. A glowing recommendation
           to identify emerging problems before they become           is incredibly powerful in sustaining customer loyalty,
           larger in severity and scale.                              building equity in your brand and strengthening
                                                                      your community. In essence, your social customers
           Microsoft provides tools that assist Ken in social
                                                                      can become an extended service community for
           listening and analysis. Ken can use the same tool
                                                                      your business.
           as Lori from marketing: Analytics for Twitter. Ken
           can analyze the top Tweeters rated by sentiment,

                                                                                                                               9
Social
                                                                                                                   Customer
Additionally, Ken can use the social tools
from Microsoft to identify advocates and            Social communities represent a constant
                                                    source of real-time feedback that previously
                                                                                                                     Service
champions and work with marketing to
incent influential customers to be brand            would have taken considerable time, effort
and service “ambassadors.”                          and expense to collect.
Another significant investment from Microsoft is a        Because Ken can identify the most talked-about
cloud service from Microsoft SQL Azure Labs. This         issues, he can feed this data back to the business
pre-release service, Microsoft Codename “Social           to improve future products and services. Social
Analytics,” allows you to easily integrate social         communities represent a constant source of real-
information into your business solutions. This service    time feedback that previously would have taken
aggregates social media content from many sources,        considerable time, effort and expense to collect.
including Twitter, Facebook, blogs and forums.
                                                            “Sharpening our organization, creating
It also provides sentiment analysis capabilities on
                                                             transparency, and improving access to our
the social content.
                                                             intellectual assets [people] could only increase
                                                             our flexibility and responsiveness.”

                                                                 —Ed Coleman, Chief Executive Officer, Unisys

                                                          When all is said and done, social networking is
                                                          another engagement channel your customer service
                                                          organization should take advantage of. However,
                                                          Ken needs to ensure his team’s efforts are embedded
                                                          in the everyday processes of the customer service
                                                          organization to ensure consistency across all channels
Figure 5: Microsoft Codename “Social Analytics”           of customer engagement.




10
How Do I
Get Started?
               Define and prioritize your                                                  Plan your approach
               social objectives
                                                                                           Nominate the communities you will serve. Determine
                                                                                           the organizational implications of social technologies.
               Is it even appropriate for you to utilize social
                                                                                           If you are looking at providing social collaboration
               technologies in your business strategy? There
                                                                                           tools internally, then define their purpose and scope.
               needs to be executive support or sponsorship and a
                                                                                           If you will be listening to and engaging with external
               cultural willingness to embrace social technologies
                                                                                           communities, then who will take ownership for
               for real business value. Social is not an individual
                                                                                           response plans and escalations when they
               departmental initiative – it takes true cross-business
                                                                                           are required?
               commitment and resourcing. Prioritize your objectives.
               For example, do you want to start by providing                              Ensure you have a governance model in place to
               simpler communication and collaboration for your                            set out how you will use social technologies – when
               teams, or is it initially more important to listen to                       are they an appropriate engagement tool versus
               external communities of customers and influencers?                          other traditional channels such as web, email and
               Whichever is your initial goal, the key to success is to                    telephone? Change management is a critical factor in
               start simple and build from there.                                          any social strategy. There needs to be clear guidance
                                                                                           to employees and customers about which business
                                                                                           processes will utilize social technologies, and under
                                         Define and prioritize                             what circumstances. Like any other technology
                                           your social objectives                          investment, if social tools are deployed to users and
                                                                                           customers with no clear guidance, then there is a




                                                                      Plan your approach
                            your plan constantly




                                                                                           strong possibility of poor adoption.
                         Review and refine




                                                   Determine
                                                   success criteria

                                                                                                                                                11
How Do I
                                                                                                                  Get Started?
Determine success criteria                                 Review and refine your
                                                           plan constantly
Determine the metrics that you will measure to
define success with your social strategy. Will it
                                                           Don’t be afraid to change course as you need to.
be based on the usage volume of internal social
                                                           Remember that this is a marathon not a sprint. The
collaboration tools? For external community
                                                           social technology landscape is constantly evolving.
engagement, will it be based on the number of
                                                           Social networks will come and go. Look at the rise
followers on the corporate Facebook page or the
                                                           and fall of MySpace and the challenges that Facebook
volume and sentiment of tweets about your products
                                                           meets to remain relevant and commercially appealing.
and services on Twitter? If you are taking a customer
                                                           New ones will arise as new concepts are discovered –
service focus, are you considering metrics such
                                                           for example, Pinterest.
as response times for issues raised, or volume of
customer issues resolved.                                  There will be times when you need to look at your
                                                           governance model and your social commitments.
Your initial objective when engaging with external
                                                           As you meet your success criteria for adoption, then
communities is to establish sincerity and credibility.
                                                           start to look at other measures such as customer
If you are seen to be engaging and listening to the
                                                           satisfaction, sales win rates and brand sentiment.
community, then the community will engage and
listen to you. Social isn’t about lip-service; you won’t
get any credit for opening a Twitter account and
                                                           Enjoy the journey.
then not engaging through it – inaction can lead
to a negative impact on your social credibility and
potentially your overall brand sentiment. Conversely,
listening and establishing an open dialog with
customers through social channels can significantly
boost credibility and sentiment.




12
Conclusion
             The surging popularity of social
             technologies is indisputable, yet many             Success will land with those businesses who
             organizations continue to struggle to harness      can integrate the wealth of data, feedback
             them for real business benefits. Microsoft         and conversations from social technologies
             technologies fuel the Dynamic Business. It’s a     into their business initiatives and processes.
             broader vision than just a social enterprise.
             We are defining a connected and forward-looking           Many business solutions available today only focus
             enterprise, the successful enterprise of the future;      on one aspect of social, such as internal social
             an enterprise that connects its employees, partners       collaboration, but neglect other equally valuable
             and customers to what they need, when they need it,       external communities. Ultimately, success will land
             using the device and channel they prefer.                 with those businesses that can integrate social
                                                                       technologies’ wealth of internal and external data,
                                                                       feedback and conversations into existing business
                                                                       initiatives and processes.

                                                                      Remember that the Dynamic Business is one that
                                                                      includes social technologies as one of several channels
                                                                      to engage with key stakeholders – it is one component
                                                                      of the way you do business but not the only way!



             The most important components of any social strategy are:
               Defining your social objectives and the communities you will engage.

               Ensuring you have executive sponsorship and cultural willingness in your business.

               Aligning your resources to support social in the fabric of the way you do business.

               Outlining a clear goal-oriented plan and constantly reviewing and refining it.

               Flexible software tools to support your plan.

                                                                                                                          13
Conclusion
At Microsoft we spend over 9 billion dollars per year on research and development.
Continuous investment in social technologies is central to our mission and business
strategy. We have multiple ongoing social investments across our business and consumer
products, including Microsoft Dynamics, SharePoint, Office, Bing, Windows Phone,
Xbox and many others. In fact, Microsoft is accelerating our investment in social
technologies for business with the announcement on June 25, 2012 of the acquisition
of Yammer, a leading provider of enterprise social networks. Microsoft will continue to
build on our proud tradition of tools that drive productivity and insight to deliver rich
integrated social experiences for your employees and customers. Just like social needs
to be woven into the fabric of your business processes, Microsoft is weaving social
capabilities into our software – both today and in the future.


Microsoft is making the Dynamic Business
vision of tomorrow a reality today.




14                                                                                          © 2012 Microsoft Corporation

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Whitepaper - The connected enterprise

  • 1. July 2012 Microsoft Dynamics The Connected Enterprise Embracing social technologies to drive the Dynamic Business
  • 2. Introduction Today’s businesses face dramatic change The world revolves around communities. People concurrently on several axes, including technology form and join communities to communicate and change, generational change as Millennials enter collaborate – to get stuff done. Communities have the workforce, and a new economic reality. In terms existed since time began: families, tribes, cities, teams, of technology changes none has been as rapid and clubs and interest groups. Social technologies have pervasive as social technologies. Social technologies expedited and simplified how people connect and including blogs, forums and social networks are collaborate globally in real time. transforming the relationship between businesses and Advances in communication and collaboration, such their communities of employees, prospects, customers as radio, television, telephone, email and internet, and partners. Let’s first explain social in simple terms. have been a constant throughout the 20th century. Humans are inherently social. Social as a concept Social networks, such as Facebook, are yet another is not new – no one actually invented social! channel of human interaction; they have been adopted Dictionary definitions* include: human society at an unprecedented rate! Radio took 38 years to and how it is organized; the way in which groups reach 50 million users – Facebook took less than of people behave and interact; living as part of a 9 months to reach 100 million users! The sheer scale community or colony rather than alone. of social networks means that millions of people are now connected globally and in real time in ways not * Social definition: Encarta® World English Dictionary [North American Edition] imaginable with other communication technologies. Years to reach 50 million users: Radio: Television: Internet: Facebook: 38 years 13 years 4 years 100 million <9 months Source: socialnomics.net – Social Media Revolution Video (Refreshed), By Erik Qualman 1
  • 3. Introduction However, it is important to put this technology Microsoft is defining a connected and wave in perspective. Telephone has not forward-looking enterprise, the successful replaced face-to-face meetings; email has not enterprise of the future. replaced telephone; social technologies are yet another means for people to connect and What has prompted this mass adoption of social interact. Your customers expect flexibility in the way technologies in day-to-day life? Leading social media they engage with you, whether that is via the web, expert Clara Shih writes: face-to-face, phone, email and now social. “The social Web appeals to innate human Some would have you believe that social technologies desires for self-expression, human alone will guarantee the success that businesses seek. connection, and a sense of belonging... The reality is, social for the sake of being social is just Social networking captures our pictures, noise without context. Many executives view social feelings, and relationships, and makes technologies as distractions rather than enablers for the Web feel human again.” this reason. How does this apply to business? Business success Microsoft has a powerful vision beyond just a hinges on one or more of the following aspirations: social enterprise – we are defining a connected increasing revenue, driving customer loyalty and and forward-looking enterprise, the successful identifying new business opportunities. These days enterprise of the future; an enterprise that everyone is looking for the silver bullet to achieve connects its employees, partners and customers success. For years, we have been focusing on the to what they need, in the right context, using the business benefits of increasing productivity, but device and channel they prefer. We call that the let’s face it, your people can be communicating, Dynamic Business. collaborating and generally doing lots of things faster, This paper outlines how you can get started with a but that doesn’t guarantee they are the right things. social strategy that enhances your sales, marketing Social technologies are becoming increasingly and service capabilities. We will articulate how social prevalent in daily personal and professional technologies fit into Microsoft’s vision and strategy life. Social technologies provide simple for proactive, agile and forward-looking business collaboration for employees and new means of solutions that facilitate people getting the right things understanding and interacting with customers. done while delivering better customer experiences. 2
  • 4. Business Opportunities with Social Regardless of your role in an organization, there are constant demands to contend with. The Dynamic Business places customers’ Marketing professionals need to tap into the wants and needs at the center of everything voice of the customer and broaden the reach they do. of their marketing message. Sales professionals need to easily keep track of the network of people They expect business software that enables them and business events that are relevant to closing deals. to connect, communicate and collaborate as easily Service professionals need to identify and resolve as they do via social networks such as Twitter customers’ issues through an ever-increasing array of and Facebook. communication channels. We now have a new category of customer: the The Dynamic Business places customers’ wants and social customer. These are businesses and consumers needs at the center of everything they do. They rally who use social technologies to get their questions their people, processes and technology around this answered, problems solved, contribute ideas, objective. It starts with people. People make things complain, praise and endorse whenever and from happen through the communities they participate wherever they want. According to a recent survey by in. A Dynamic Business manages relationships across IAB and Lightspeed in the U.K., over 44% of adults internal and external communities. now use the web to share grievances about products and services, and 1 in 5 consumers who complain to Millennials entering the workforce are driving new brands via Twitter or Facebook want a response within expectations of business software. Millennials have the hour. Businesses need to provide flexible and grown up with computers, software, the internet, convenient ways of listening to and engaging with intelligent devices and constant connectivity. these communities on their terms. They approach business software through a consumer lens; they expect simplicity and instant results. Paul Greenberg, a respected authority on the use of Their networks and communities will come with social technologies, articulates a social strategy as them to work, blurring the lines between personal “the company’s response to the customer’s control of and professional relationships. These individuals the conversation.” In other words, a Dynamic Business want to quickly and easily ask questions, find listens and engages with customers rather than expertise, keep up to date on events that affect just talking at them. External communities control their role and have their achievements recognized. the perception of products, services and brands, not the business. Social engagement is about starting a dialog with your communities. 3
  • 5. Business Opportunities Given these realities, what are the business opportunities with social technologies? with Social Listen Listen, monitor and dissect social conversations to uncover trends and key influencers. Engage Conduct a dialog with stakeholders to inform, respond and influence. Amplify Utilize communities to broadcast your message and drive awareness. Solve Harvest and reuse community knowledge and connect customers to solve problems. Innovate Identify business opportunities and ideas through crowd-sourcing communities. Analyze Measure buzz, calculate stakeholder sentiment and determine impact. Adapted from various sources, including William Band, Ray Wang, Charlene Li and Josh Bernoff During the course of this paper we will demonstrate business strategy. Businesses who have successfully how you can seize these opportunities to create your employed a social strategy found executive Dynamic Business. sponsorship and employee buy-in crucial. Knowing where to begin may seem daunting. Many “To win clients, we have to show that we businesses are wrestling with this dilemma. The can seamlessly connect to the people and good news is, there are many things you can start the data we need to get the job done. With with today and there are a broad range of tools from Microsoft social networking and search tools, Microsoft to assist you from a technology standpoint. it’s a done deal.” It is also important to note a social strategy is —Chris Miller, Senior Director, Accenture contingent on culturally embracing the concepts in conjunction with the software tools themselves. Let’s now delve into specifically how a social No amount of technology can compensate for a lack strategy can positively impact your sales, service of cohesive planning in how social fits into your overall and marketing processes. 4
  • 6. Social Marketing Marketing strategies can benefit greatly from the use of social media as an additional Public social networks provide marketing channel to broadcast announcements, organizations with a direct and immediate messaging and offers. You have the line to their customers. responsibility to keep the content you share relevant and fresh; use the same principles you apply Marketing via social networking sites does not to your web site content – if you don’t keep it current replace traditional marketing; it should reflect and you risk losing the attention of your social customers complement those efforts. Lori and team should and with it, credibility. participate in campaign planning and execution to know what and when to broadcast, as well as how to Start simply! meaningfully engage via social media. Let’s say we have a marketing manager, Lori, who Public social networks provide marketing has a passion for social media and is an active social organizations with a direct and immediate line to customer herself. Step 1 is to empower Lori and others their customers, providing them with new insights as social community managers to start the social into customer perceptions of brand and the products conversation. Open an official YouTube channel, and services that you (and your competitors) offer. Twitter account or Facebook page and empower On social networks such as Twitter, people are people like Lori to use these networks to broadcast typically blunt in their feedback and opinions. All of announcements and content and share business these conversations are going on globally, 24 hours achievements. Lori’s objective is to drive interest and a day. It is important to listen and analyze how your social commentary on your organization. Lori and brand is resonating. Armed with this information, you team have to be active in the community – they need can fine tune or course-correct as needed. Microsoft to start a dialog. provides tools for this purpose, such as Analytics for Twitter and FUSE Labs. 5
  • 7. Social Marketing Analytics for Twitter allows Lori to query Microsoft FUSE Labs works in partnership with Twitter directly from Microsoft® Office Excel our product and research teams to ideate, develop 2010. Lori can easily understand who are the and deliver new social, real-time and media-rich top Tweeters, what #hashtags they are using monitoring and analysis. FUSE Labs solutions give Lori and do they have a positive or negative tone new ways to create, connect and collaborate with the or sentiment. people, information and ideas that matter to her. Figure 1: Analytics for Twitter Figure 2: FUSE Labs Montage Microsoft provides you with the tools to monitor, understand and participate in customer conversations. 6
  • 8. Social Sales The average seller spends too much time on non- Microsoft provides micro-blogging tools for this selling activities.* Salespeople are constantly looking kind of simple collaboration in both SharePoint and for answers and expertise to close more deals faster. Dynamics CRM. In our personal lives it’s incredibly easy to find people and information we need through search engines and social networks. It makes sense to introduce consumerized social experiences into business solutions. Micro-blogs allow people to send short messages (posts) including questions, answers and comments. Other people can respond enabling simple, streamlined collaboration. A salesperson, Terry, could post that he is looking for expertise to help on a big deal. Jill, a technician, can respond with Figure 3: Microsoft Dynamics CRM Activity Feeds a simple post to let Terry know she can help out. This avoids multiple emails. In this way, Terry and Ask any salesperson how they meet revenue targets Jill (who may not even know each other) can easily and they’ll tell you it’s all about how they can stay on connect and collaborate across organizational top of the situation. How does Terry cut through the boundaries to drive a successful sales outcome. clutter of daily business and listen to what’s going on in the context of his specific accounts, leads, contacts and deals? Microsoft Dynamics CRM provides It’s incredibly easy to find people and Activity Feeds presenting a simple timeline information we need through search view of what’s going on in the business based on what’s important to Terry – it is the same engines and social networks. concept as the Facebook Wall. * http://blog.sellingpower.com/gg/2011/02/how-much-time-do-your-salespeople-spend-selling.html 7
  • 9. Social Sales into customer connections, preferences, Microsoft provides you with tools for your behaviors and sentiments, which can lead sales teams to bring simple social principles to more productive sales engagements. into how they communicate and collaborate. Microsoft provides the Outlook Social Connector that allows people to manage All Terry has to do is follow the people, organizations their social networks and stay up-to-date directly in and events he cares about and his timeline view Outlook. With this tool, Terry can see social profiles reflects that. He can review this no matter where he is, from LinkedIn and Facebook and interactions such at his desk or out of the office on his mobile devices. as emails and documents exchanged. He can also see appointments attended all without ever leaving Terry is results-oriented. He likes to have his his Inbox. achievements acknowledged (and broadcast). Activity Feeds can be configured to automatically post updates when events occur, such as closing a deal. When Terry closes a deal the system has now informed the world that Terry is a star. Not only does Terry’s boss get the news, but also the VP of sales. The system has become a promoter of Terry’s actions – he doesn’t have to worry about sending out that bragging email anymore. “Microsoft Dynamics CRM social capabilities make it easier for our teams to communicate and collaborate quickly and simply... Our users love the ability to follow all relevant activity across the accounts they own.” Figure 4: Outlook Social Connector —Brian Gabriel, Senior Software Engineer, Microsoft provides you with tools for your sales FM Global teams to bring simple social principles into how Salespeople constantly need to make decisions about they communicate and collaborate, as well as the deals and people they work with. Public social harness external social networks for new ways to networks such as LinkedIn provide additional insight find, connect with and understand customers. 8
  • 10. Social Customer Service The service professional plays a critical role in driving positive customer experiences. Many The proliferation of mobile devices allows times the service professional is the only customers to air their thoughts “in the heat of human touch point to the customer. Their the moment.” responsibility is to turn customers into loyal fans. In our example, Ken, the service manager, what #hashtags they are using, and even drill into has this responsibility. For Ken, it’s about finding new individual tweets to engage directly with that ways to engage customers and respond quickly to individual. In real time, Ken can gauge whether there their concerns and comments. is cause for deeper research. The social customer will use social networks to air When Ken identifies an escalating issue, he needs their opinions and lay down the gauntlet for an to be able to work with marketing to determine an organization to listen and respond, quickly. The appropriate response plan. If the issue has been proliferation of mobile devices allows customers surfaced via social media, then one of the response to air their thoughts “in the heat of the moment.” channels has to be social media itself. Businesses gain This presents both a challenge and an opportunity kudos and credibility from their social customers by for Ken. The challenge is, how does Ken’s team trawl acknowledging and responding to problems through thousands of conversations on social networks like social channels. Social provides an opportunity for Twitter and Facebook to identify people who are the business to proactively address issues at scale. The detailing problems they want fixed? The opportunity business can quickly reverse a negative situation. is to respond in real time and demonstrate that they Kudos received by handling an issue proactively also were heard; you can turn a negative experience into has other positive effects. Social customers who have a positive one and win your customer’s trust. great service experiences will publicize them via Furthermore, Ken can analyze these opinions and social networks. Most customers listen to and trust views providing a valuable “early warning” system peers above anyone else. A glowing recommendation to identify emerging problems before they become is incredibly powerful in sustaining customer loyalty, larger in severity and scale. building equity in your brand and strengthening your community. In essence, your social customers Microsoft provides tools that assist Ken in social can become an extended service community for listening and analysis. Ken can use the same tool your business. as Lori from marketing: Analytics for Twitter. Ken can analyze the top Tweeters rated by sentiment, 9
  • 11. Social Customer Additionally, Ken can use the social tools from Microsoft to identify advocates and Social communities represent a constant source of real-time feedback that previously Service champions and work with marketing to incent influential customers to be brand would have taken considerable time, effort and service “ambassadors.” and expense to collect. Another significant investment from Microsoft is a Because Ken can identify the most talked-about cloud service from Microsoft SQL Azure Labs. This issues, he can feed this data back to the business pre-release service, Microsoft Codename “Social to improve future products and services. Social Analytics,” allows you to easily integrate social communities represent a constant source of real- information into your business solutions. This service time feedback that previously would have taken aggregates social media content from many sources, considerable time, effort and expense to collect. including Twitter, Facebook, blogs and forums. “Sharpening our organization, creating It also provides sentiment analysis capabilities on transparency, and improving access to our the social content. intellectual assets [people] could only increase our flexibility and responsiveness.” —Ed Coleman, Chief Executive Officer, Unisys When all is said and done, social networking is another engagement channel your customer service organization should take advantage of. However, Ken needs to ensure his team’s efforts are embedded in the everyday processes of the customer service organization to ensure consistency across all channels Figure 5: Microsoft Codename “Social Analytics” of customer engagement. 10
  • 12. How Do I Get Started? Define and prioritize your Plan your approach social objectives Nominate the communities you will serve. Determine the organizational implications of social technologies. Is it even appropriate for you to utilize social If you are looking at providing social collaboration technologies in your business strategy? There tools internally, then define their purpose and scope. needs to be executive support or sponsorship and a If you will be listening to and engaging with external cultural willingness to embrace social technologies communities, then who will take ownership for for real business value. Social is not an individual response plans and escalations when they departmental initiative – it takes true cross-business are required? commitment and resourcing. Prioritize your objectives. For example, do you want to start by providing Ensure you have a governance model in place to simpler communication and collaboration for your set out how you will use social technologies – when teams, or is it initially more important to listen to are they an appropriate engagement tool versus external communities of customers and influencers? other traditional channels such as web, email and Whichever is your initial goal, the key to success is to telephone? Change management is a critical factor in start simple and build from there. any social strategy. There needs to be clear guidance to employees and customers about which business processes will utilize social technologies, and under Define and prioritize what circumstances. Like any other technology your social objectives investment, if social tools are deployed to users and customers with no clear guidance, then there is a Plan your approach your plan constantly strong possibility of poor adoption. Review and refine Determine success criteria 11
  • 13. How Do I Get Started? Determine success criteria Review and refine your plan constantly Determine the metrics that you will measure to define success with your social strategy. Will it Don’t be afraid to change course as you need to. be based on the usage volume of internal social Remember that this is a marathon not a sprint. The collaboration tools? For external community social technology landscape is constantly evolving. engagement, will it be based on the number of Social networks will come and go. Look at the rise followers on the corporate Facebook page or the and fall of MySpace and the challenges that Facebook volume and sentiment of tweets about your products meets to remain relevant and commercially appealing. and services on Twitter? If you are taking a customer New ones will arise as new concepts are discovered – service focus, are you considering metrics such for example, Pinterest. as response times for issues raised, or volume of customer issues resolved. There will be times when you need to look at your governance model and your social commitments. Your initial objective when engaging with external As you meet your success criteria for adoption, then communities is to establish sincerity and credibility. start to look at other measures such as customer If you are seen to be engaging and listening to the satisfaction, sales win rates and brand sentiment. community, then the community will engage and listen to you. Social isn’t about lip-service; you won’t get any credit for opening a Twitter account and Enjoy the journey. then not engaging through it – inaction can lead to a negative impact on your social credibility and potentially your overall brand sentiment. Conversely, listening and establishing an open dialog with customers through social channels can significantly boost credibility and sentiment. 12
  • 14. Conclusion The surging popularity of social technologies is indisputable, yet many Success will land with those businesses who organizations continue to struggle to harness can integrate the wealth of data, feedback them for real business benefits. Microsoft and conversations from social technologies technologies fuel the Dynamic Business. It’s a into their business initiatives and processes. broader vision than just a social enterprise. We are defining a connected and forward-looking Many business solutions available today only focus enterprise, the successful enterprise of the future; on one aspect of social, such as internal social an enterprise that connects its employees, partners collaboration, but neglect other equally valuable and customers to what they need, when they need it, external communities. Ultimately, success will land using the device and channel they prefer. with those businesses that can integrate social technologies’ wealth of internal and external data, feedback and conversations into existing business initiatives and processes. Remember that the Dynamic Business is one that includes social technologies as one of several channels to engage with key stakeholders – it is one component of the way you do business but not the only way! The most important components of any social strategy are: Defining your social objectives and the communities you will engage. Ensuring you have executive sponsorship and cultural willingness in your business. Aligning your resources to support social in the fabric of the way you do business. Outlining a clear goal-oriented plan and constantly reviewing and refining it. Flexible software tools to support your plan. 13
  • 15. Conclusion At Microsoft we spend over 9 billion dollars per year on research and development. Continuous investment in social technologies is central to our mission and business strategy. We have multiple ongoing social investments across our business and consumer products, including Microsoft Dynamics, SharePoint, Office, Bing, Windows Phone, Xbox and many others. In fact, Microsoft is accelerating our investment in social technologies for business with the announcement on June 25, 2012 of the acquisition of Yammer, a leading provider of enterprise social networks. Microsoft will continue to build on our proud tradition of tools that drive productivity and insight to deliver rich integrated social experiences for your employees and customers. Just like social needs to be woven into the fabric of your business processes, Microsoft is weaving social capabilities into our software – both today and in the future. Microsoft is making the Dynamic Business vision of tomorrow a reality today. 14 © 2012 Microsoft Corporation