L E A D E R NETWORKS
Vanessa DiMauro
CEO, Leader Networks LLC
“CIO Solutions Gallery”
Fisher College of Business, Ohio State University
December 9, 2014
Copyright © 2014 Leader Networks, LLC
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Leader Networks is a strategic research and consulting firm that helps clients develop social business strategies, create online communities and lead social media marketing programs.
Social Strategy
Development for online communities and social customer care
Social Business
Research: tracking, community health check, and user validation
Social Business
Operations &
Training: ROI, integrated marketing programs, online community operations
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• What is the difference between social media and social business
• What are the key trends and performance metrics for social business
– Social business – a macro perspective from the Social Business Benchmark Study
• Study of 197 mid-large organizations about the social business performance (strategic intentions, operations, tools, governance, organizational readiness and staffing)
– Obstacles and opportunities for social business from the Socially Enabled Enterprise Study and The Socially Driven Collaboration Study
• Two-part study of almost 1,000 IT and Marketing leaders in mid-to-large organizations
• Looking forward
– What are the implications for IT leadership?
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St. Peter’s Square, Rome

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• Competition is truly global
• Customers’ problems are far more complex
• Innovative products have become table stakes
• Company missteps become known quickly via social media
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• Competing solely on price against offshore firms is a losing game
• Customers need much more help to fulfill their business mandates
• Companies need to understand customers’ changing needs much faster and better
• Lack of sophistication in social media is starting to hurt
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Source: Make B2B Marketing Thrive In The Age Of The Customer, Forrester Research, Inc. May 2013

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Social Media : The spaces where we interact with one another over the web, including public, private and semi-private spaces defined within, and by, certain contexts.
Social Marketing : The use of social media spaces for marketing.
Social Business : Using the elements above to enable more efficient, effective, and net new connections between people, information, and assets to drive business decision, action, and outcome across the enterprise.
Source: Deloitte: The Social Business Initiative
Socially Enabled Enterprise: A set of collaborative processes that have the potential to yield improved business processes that are customer-driven such as faster time to market with new products and services, more successful research and development outcomes and refined market messages that are explicitly influenced by customer needs.
Source: Leader Networks, Social Media Today & Oracle: The Socially Enabled
Enterprise
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Social is more about mindset and behavior than it is about technology or platform. It’s a reflection of how we behave online-offline and how we want people to see and know us. Social requires us to think about our customers differently.
Don Bulmer, VP strategic communications, Royal Dutch
Shell
Source: The Socially Enabled
Enterprise (2013)
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Deepen client relationships
Deliver improved financial returns
Build greater brand equity
Extend accelerate product & services delivery
Shorten product innovation cycle
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Provide better customer care
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Social Business Benchmark Study
To study what companies are doing with their social business activities and to benchmark organizations’ readiness for social business & provide future guideposts - Do companies differentiate social media
marketing from social business? What are the social, strategic intention, operational alignment, staffing, policy, and governance structures for social?
• 179 companies participated to date
• 25 participated in pilot qualitative interviews between Nov. 2012 – Feb. 2013
• The responses came from a range of industries and company sizes but the majority were larger organizations (between 1K to <50K employees) and 62% focused on Business to Business (B2B)
The Socially Enabled Enterprise Study
To understand the socially enabled organization,
Oracle commissioned a study of 925 IT and marketing leaders from over 500 organizations around the world in the spring of 2013, gathering insights from over 20 industries and 52 countries.
• The study included firms with more than 100 employees to those with more than 50,000 employees.
• The sample was drawn from a number of sources including Social Media Today subscribers, Oracle customers, and the Society for New
Communications Research (SNCR).
• Study conducted by Leader Networks, Oracle and
Social Media Today.
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Stage 1:
Familiar
Stage 2:
Present
Stage 3:
Enabled
Social business transforms the value chain
Stage 4:
Integrated
Strategic
Intentions
Operations
Staffing
Policy
Organizational readiness
Tool Use
No strategic goals
Detached projects
Reach and awareness
Marketing participates & monitors social channel
Social goals support business goals
Social business COE
Executive support
No dedicated staff Informal part of marketing role
No social media policy
Guidance is offered
Built into many job descriptions
Policy in place
Org. tolerates experiments
Marketing shares results
Impact, outcomes,
ROI are tracked
Social media pervades all lines of business
Integrated into key roles
& executive sponsorship
Policy, education & training
Cultural transparency, responsive organization
Mainly
“unofficial” social media accounts
Tool adoption grows
& proliferates
Departmental use of tools (e.g. sales uses
LinkedIn)
Tool standards established
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Source: Leader Networks: The Social Business Benchmark Study 2014
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None Limited Moderate Healthy
Strategic Intentions
Operations
Staffing
Governance
Tool Use
Organizational Readiness
Present Familiar Enabled
0% 20% 40% 60%
Source: Leader Networks, The Social Business Benchmark 2014. N-196 orgs
Integrated
80%
Robust
100%
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Daniel Lobo Flickr Creative
Commons
Social Business is everyone’s business!
While Marketing (obviously) owns social media marketing, social business is largely driven by a group of Cross Functional Stakeholders (54%).
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IT reportedly owns 27% of social programs.
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Source: The Socially Enabled Enterprise Study, Leader Networks, Oracle and Social Media Today

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Source: The Socially Enabled Enterprise Study, Leader Networks, Oracle and Social Media Today 15

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More Than 50% Of Organizations Report That They Currently Are
Or Will Be A Socially Enabled Enterprise Within The Next Year
If your company wanted to be a socially enabled enterprise, how long would it take to achieve that goal?
Common characteristics of those who already are socially enabled
• Top industries include
Education, Retail (wholesale distribution – not computer) and Financial Services
• Primarily large organizations
(50,000 employees or more) n=835
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34%
31%
24%
9%
2%
Already Are < 12 months 1 to 2 years 3 to 5 years > 5 years
Source: The Socially Enabled Enterprise Study, Leader Networks, Oracle and Social Media Today
1%
Never
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Source: The Socially Enabled Enterprise Study, Leader Networks, Oracle and Social Media Today 17

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A profile of a socially enabled enterprise (SEE) is emerging:
• Strong and collaborative leadership
• A strategy to leverage socially-derived customer or partner insights to improve business functions
• A compendium of business-focused measures
• The ability to link the strategy for becoming a socially enabled enterprise with operational plans
Source: The Socially Enabled Enterprise Study, Leader Networks, Oracle and Social Media Today
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How well is the social strategy being executed within the organization?
We Do Not Have a
Well-Articulated
Strategy
16%
Excellent
11%
Not Well
7%
Somewhat Well
66%
Excellent
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Somewhat Well Not Well We Do Not Have a Well-Articulated Strategy
Source: Leader Networks, The Social Business Benchmark 2014.

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• Today = Social Media Marketing, Tomorrow = Social Operations
– 60% of firms plan to integrate social business into core operations such as customer care programs
• Social Measurement is currently weak – only 20% of organizations report having
KPIs/ measures that relate back to organizational strategy.
– 42% of orgs report they collect the data from social outcomes, but don’t do anything with it
• Tool proliferation is rampant within many organizations still learning about social
– Most organizations are still developing governance and standards for social tools
– The majority of social projects start “underground” and wait for outcomes to become apparent. This approach can potentially proliferate random tool adoption and misaligned objectives
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Goal: To become relevant and relatable to every person on the planet, strengthen and extend market position, to maintain their right to operate through relationship-building.
– Scale and impact in reaction to big market shifts
– Manage brand and reputation on the digital channel
– Adapt to changing influence models
– Embrace a changing culture and mindset of transparency and relatability;
– Use real-time digital insights to inform the business .
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• Social Media Center of Excellence (COE)
– Governance and best practices to ensure business alignment across upstream and downstream business
– Established massive corporate presence in key platforms
• Developed a unified influencer relations program to advance select but critical business goals
• Launched strategic partner programs that leverage social within the relationship management portfolio
• Using advanced data analytics strategically to inform strategy, operations and HR
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Significantly advanced Palladium's ability to scale
• Launched a global online community with more than 50% of the membership from non-
US countries, deepening Palladium’s market reach
• Membership from over 3,600 organizations worldwide
• Drives conference attendance, consulting projects and publishing arm of Palladium
• Revenue-generating in first 6 months
(subscriptions, partner programs), Profitable in 9 months
• Over 15% of new members come from peer referrals
• Numerous private working groups (e.g. KPI library for Risk Professionals) resulted which helped advance the business services
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First pilot marketing project: “Globe Campaign” yielded 8,000 visitors, 604 leads, 43% uplift in Facebook user engagement. At the end of its life (October 2013) it had yielded 14,580 visitors , 369 leads , 494 engagements , and 9,000 clicks on collateral . Calculate the cost of generating those clicks and leads through traditional advertising, and the ROI for them was incredible.
Second Pilot HDS online community:
• Targeted to 14,000 customers and 1,200 partners
• Discussion forums and content for all HDS products and solution
• A Developer Network enables and supports developers who work with HDS software products
• An Innovation Center allows HDS to crowdsource ideas and suggestions from customers and partners, preview new innovations and obtain feedback prior to releasing them to the market
• Gamification is used to recognize credible experts within the community and to foster engagement
• Private groups in which HDS collaborates privately with key customers and partners
• Integration with HDS social marketing channels such as YouTube and Twitter
• Immediate increase in demand generation through company blog, which sparked a $20 million per annum opportunity
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• Organizations are being called upon to become more responsive to customer needs
• Social business is changing how Marketing and IT leaders work
• Social business leadership & collaboration needs to be a part of every executive’s approach
• Most organizations are just beginning their social business journey
• The future will focus on deeper operational alignment
• The social data needs to impact core functions (not just marketing)
• Standards & governance help reduce chaos during change
• Leadership and collaboration = social business success
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