How We Gave Up Control Over The Social Web

A short but pithy piece over the weekend by Dave Winer titled “Why the Web 2.0 model is obsolete” got me thinking about where we’ve ended up with social media after nearly ten years. Blogs, wikis, and other tools of easily shared self-expression from the early days have given away in recent years to a much less diverse social media monoculture. A few large social networks now control our social identity, content, and behavior, and through their terms of service, often literally own our online existence legally and de facto.

This evolution was perhaps inevitable given the rules through which networks operate and certainly the result has its strengths. It’s far easier for consumers and businesses to adopt a hosted service than set up their own social presence, with all the complicated bits it requires to set up a fully functional social identity on your own these days. It’s also probably more secure, safe, and reliable long term. It’s certainly the shortest route to connecting with the vast captive audiences that the leading social networks now wield.

Yet in the process of making many short term decisions in the name of reach and convenience, many of us have given away our social capital, and along with it much of our online autonomy and freedom. I’ve long since stopped advising companies to drive their traffic to Facebook (disclaimer: I am a shareholder) and build their own online communities and digital ecosystems if they are intending to be strategic about things like social business and open APIs.

Network Effects, Social Media, and Centralized vs. Federated

The impressive thing is that we’ve largely achieved the original vision of Web 2.0 and it’s just how we do things now. We share by default. We use social media more than any other digital activity. Social media is now woven into so much of what we do today. Yet the majority of all of this user generated content and online community is now centralized in a few large social silos that can no longer talk to each other.

Even worse, if we go the opposite direction that might seem better long term, we’ve discovered issues with that model too. For example, we’ve learned that when we create many smaller, self-controlled, and more autonomous social environments we then create fragmentation. We can’t easily communicate or collaborate with each other across these social islands. Thus, for as many downsides as the monolithic social networks have, they do achieve one important thing: They create a very large single social universe that we can all communicate across.

So what should we collectively do? Should we cave in and trust that the corporate owners of the social world will be benevolent, even when they clearly have business models that are very often at cross purposes to our needs and desires? Or should we find a way to solve the problem of creating our own social corners on the Web and then connecting them together, all while making it very easy to do so? Personally, I’m hoping it’s the latter. Certainly I’ve explored previously how open social standards have a genuine shot at helping with this, even if it might be a bit of a long shot.

The reality is that social media silos are now holding us back, both as individuals and as businesses. We can do much better if we want. But getting there requires a little long-term discipline and plenty of widespread demand. That makes it pretty unlikely in the face of the enormously strong network effects of the largest social networks today. But perhaps there’s a third option to regaining control over our social lives. In fact, I predict the next big breakthrough in social media is likely to come from the need to resolve this tension between the unfortunate long term consequences of centralized social media and the benefits of a much more federated and user controlled model. Unfortunately, recent history has been a steady march towards the former.

So until then, we all need to mull over where our collective decisions are taking us, for as social media is perhaps the greatest communication revolution in history, its intrinsic power cuts both ways.

What Most Digital Strategy Underestimates: Scale and Interconnected Change

Over the last couple of years, I’ve been advising IT and business leaders that they need to gear up their digital/social/mobile strategies to match the advances taking place in the technology world today. On its face, this only makes sense. Technology change continues to accelerate and the growth in the cloud, social media, mobility, big data, and just about everything else is increasingly off the charts as I recently presented to a group of CIOs. As JP Rangaswami once said, we have to design our organizations now so that change is an integral function of how they operate.

Unfortunately, most organizations largely haven’t done this effectively for a variety of reasons. For one, it’s surprisingly difficult to do if your business wasn’t built around high technology from the outset. Frankly, since so many other organizations are having a hard time with it as well, the competitive implications haven’t always been severe.

However, that also doesn’t mean that some organizations aren’t failing outright through poor digital adaptation. Some clearly are, and the closer technology is to how you do business, the riskier slow digital transformation is. Just ask Blackberry, AOL, Borders, R.H. Donnelly, or a long list of companies that haven’t adapted to how digital innovation transformed their industry.

In the last few years, consumerization has emerged as a leading force in most organizations that is driving emergent, grassroots-led tech change due to increasingly pent up internal demand. The signs are all there: Bring-Your-Own-Technology (BYOD, BYOA), Facebook as the largest enterprise collaboration platform, app stores as the easiest + cheapest IT department alternative, and the list goes on. This pressure — combined with the inherent complexity in moving more swiftly towards adopting new technology — by the various stakeholders of most businesses has become increasingly untenable, even with consumerization taking some of the pressure off around the edges.

Technology Change and Proliferation: The Shortcoming of Enterprise IT Models

Yet somehow, many large organizations are currently sustaining it, despite being greatly outmatched by the growing chorus of “more” they get from their workers, customers, business partners, and the marketplace. To keep their spot on the treadmill, some organizations are now looking for new models to keep all of this sustainable. But I believe that we’re now starting to realize what one of the core obstacles is: Identifying the best way for businesses to leverage the vast existing resources they already posses, and then devising and realizing fundamentally new ways to use them to engage at scale across today’s digital channels and ecosystems.

Thus a fundamental mismatch between how our enterprise resources are connected to the digital world lies at the root of poor digital transformation. And the solution is likely a deeply engaged, muli-faceted, multi-channel digital approach sized to the scale of the challenge.

To address this mismatch, businesses have started to make significant changes in how they are organized around technology. The whole conversation about the new role(s) of the CIO, the CMO, and the new Chief Digital Officer are taking place in many industries today. Some of this discussion has started to be effective, and with so many companies struggling to successfully grapple with the torrent of digital innovation today, the window perhaps hasn’t closed.

So now I believe it’s time to tell a more nuanced story. Technology famously drives the leaders and laggards apart. For every Apple, Google, or Facebook, there are many generations of legacy enterprises trying to adapt their old businesses to the new digital landscape. A few lucky ones are protected by regulation, geography, or other happenstance, but most are exposed to the raw digital winds of change. Only a few are making it across the digital divide, while most have reached the limits of growth given the lens through which they originally built and now operate their businesses. But I believe there is a little breathing room, despite the hundreds of digital startups being launched each year to reinvent how we live our lives and conduct our business in radically improved new ways that also upend our existing business models (see the fast growing and rather exciting collaborative economy story for more examples of imminent disruption for many traditional enterprises.)

Large companies still retain very significant ecosystems, resources, and network effects if they are willing to use them. While it’s later than many companies think (just one example: a quick look at what’s most popular in the Apple or Android app stores right now shows little presence by today’s Fortune 500, despite mobile’s dominance in today’s world), there are ways to close the opportunity gap with digital. However, at this point, these must be major initiatives at the top of the organization, being led by new business units and IT both. They will have a high rate of failure (just like startups do) but by addressing the scale of the challenge head on, and applying the now many lessons learned we have at our disposal. A great new piece of research from McKinsey highlights this challenge, by asking “how [enterprises can] get beyond the small share of the prize they are capturing today in digital by looking for impact across the whole value chain.”

Most organizations need to update their digital strategies much more often than they are, revisiting their core business models, and making the resulting outcomes far more highly interconnected and organically structured. They also need to inject the solution to digital scale and velocity deeply into their operations. Those that do this well can become the digital leaders and not the legacy laggards.

Imagining the Future of the Enterprise

This afternoon at a workshop in Stuttgart, Germany at the KnowTech conference I explored our latest conception of the many transformative technology changes happening within our organizations today. The majority, if not most of these trends, are now being driven by the so-called “big shifts” — and our response to them as people, organizations, and society — that are largely being imposed from outside the walls of the enterprise. Consumerization is clearly here to stay. This is not to say that businesses aren’t innovating. Certainly they still are. But they are greatly outnumbered and frequently outclassed by the tsunami of new ideas sweeping across us from the consumer world.

The pace of advance today can seem overwhelming. It is new mobile devices, social media, cloud services, avalanches of sensor or crowd-created data, all brought to our doorstep via new digital channels and platforms such as mobile apps, app stores, open APIs, new social networks, gamification tools, to name just a few of the bigger and more disruptive technologies.

To proactively deal with all this, I currently advise most companies to develop a “strategy book” that they can readily use to identify important new advances, understand their abilities and ramifications, and then determine the impact to their business, both in terms of opportunity and challenges. Note: The aforementioned workshops typically provide the basis for such a strategy book and the processes required.

Unfortunately for most companies, there are often more challenges than opportunities, since many of these new technologies go against the grain of how traditional companies are structured and operate. Openness, decentralized processes, mass participation, network effects, and radically new distribution models for communication and work are not merely typical of today’s consumer technologies, it’s how they fundamentally work and compete against each other.

Put simply, to survive these generational shifts, organizations must figure out how to absorb new technology changes effectively and at scale. This will require potent strategies that will begin with requiring genuine rethinking of service delivery within our organizations and ultimately arrive at a profound transformation of the company. This will ultimately include its business models, motivations, and sometimes even its reasons for being. One can look at Amazon as an exemplar of this, starting out in e-commerce, and ending up a true and surprisingly pure digital platforms company, successfully wielding mobile, platforms, cloud, and big data to achieve market domination. Amazon is the most well known, but there are others and the route is repeatable, just as it is sometimes difficult.

The end point of all this is where everything is a service, as Dave Gray famously predicted. But also it’s more than that. The future of the enterprise, what I’m calling the next-generation enterprise, requires a mindset that doesn’t think in terms of fixed markets or point products or services. Instead, we must create, cultivate, and control fast-moving and highly competitive ecosystems of people, information, and value across a virtually unlimited number of channels. Those who can move first, co-create, and own the best class of information and then deliver it in forms the market wants, when it wants it, will be the winners in the short-term and long-term. Companies organized to do any less than this will falter and fade.

Over the last couple of years, I’ve been spending a lot of time thinking about and exploring how organizations can get there. There’s still a lot we need to learn, but we’re beginning to see the broad outlines. Unfortunately, there still more questions than answers, even today. Can most organizations make the transition? Does the transition to a next-generation enterprise have multiple routes, if so, what are they? How much investment is required and what is the likelihood of failure? Can we quantify and manage the risk of transforming? All of these questions and more remain difficult to answer.

Related: How Digital Business Will Evolve in 2012: 6 Big Ideas

However, we do know with a fair degree of certainty that most large organizations will need to begin changing faster — starting now — if they intend to survive. Most will need to become next-generation enterprises in a meaningful way within the next half-decade. And they need to have started several years ago.

As we enter the age of digital engagement, the untapped possibilities still largely exist. Most organizations should be utterly thrilled by the uncharted territories in front of them. Unfortunately, I see that most do not even see these as more than a threat, if they see them at all. That then is the first challenge: Changing how we regard our connection and relation to the world, for the biggest changes happening today are not only digital, but to ourselves and what makes our companies work.

Dreamforce 12: Live Blogging the Benioff Keynote

Opening keynote morning at Dreamforce 12
There is plenty of buzz and excitement here at Dreamforce 12 right now, with an estimated double the number of attendees as last year (90,000 by last count), which is saying something. Peter Coffee is doing the pre-keynote hosting and showing off various aspects of Salesforce product. ZDNet’s Larry Dignan has already covered some of the new announcements this morning. I’m sure also we’ll hear plenty of details and success stories from Marc Benioff and other customers and Salesforce execs during the keynote session today.


Slide provided to industry analysts and press by Salesforce

Liveblogging and analysis of the Dreamforce opening keynote

9:00am: Peter Coffee is doing opening introductions and safe harbor notices.

9:01am: Now introducing MC Hammer onto the stage…

9:03am: Really trying to pump up the crowd, like it needs it very much… Singing Too Legit to Quit

MC Hammer at Dreamforce 12

9:07am: OK, MC Hammer is offstage after doing a quick shout out to social business platforms.

9:09am: Montage of Salesforce and customer stories. Burberry, General Electric, Men’s Wearhouse, Perrier, and many others.

9:11am: Plenty of pounding music and video about Salesforce products, customers, and stories. Quite a bit of mention of both social and sales. No one on stage yet, it’s all video.

9:13am: Now Marc Benioff is up on stage in front of a Business Is Social banner. “I’m going to help you walk through a door. You’ve created the world’s largest technology event. Saying 90,000 people registered for the event. “The Cloud is coming…”

Mark Benniof at Dreamforce 12

9:17am: Reviewing Salesforce’s charitable efforts. Putting 1% of their equity, profit, and product into a 501(c)3 charity. Very proud of the 350,000 hours of service and $40 million in grants donated.

9:19am: Announces they’re giving away $10 million to San Francisco District 10, five grantees in all. Also grants to $4 million to JCSF Benioff Children’s Hospital.

9:20am: “We are standing on the shoulders’ of giants.” Talking about mainframes, Bill Gates, Larry Ellison, and client/server computing. Google for creating the cloud. Amazon and Jeff Bezos gets a shout-out. Mentions the “late great” Steve Jobs as a visionary, gets a big hand from the crowd.

9:21am: “The social revolution is being led by many new prophets.” Mentions Mark Zuckerberg. Moving forward in the continuum. That’s why we’re all here at this conference. “This social revolution is unlike anything we’ve ever experienced before.” A single video on YouTube can cause massive disruption around the world. (Clearly referring to the Innocence of Muslims video.)

9:22am: Asking the audience how many companies use social in their busineses today in some way. Most of the audience raises their hands. Says 70% of businesses use social in how they work. Cites McKinsey’s $1.3 trillion economic benefit stat for social business. Most of the audience raises their hands.

9:24am: Says social is now the fastest growth investment of any IT category.

Social Business is Highest Growth IT Segment

9:25am: CEO study reports that business leaders think social will be one of top 2 ways to engage with customers.

9:27am: “Our core mission is to help you connect with your customers in a whole new way.” It’s not just about how or why we’re connecting. It goes deeper. It’s getting down into the fundamental interaction between each one of us. Because we’re changing how we’re doing business. How we interact with our employees, customer, partners. It’s incredible what’s happening. It’s getting down to a fundamental change in business.”

Related: Eight Ways to Prepare to Socially Engage at Scale

9:28am: “About 5 years ago we went through a big transformation. We realized we had to change our core values. Customer success was our highest value. But we saw something else. To really be successful in this new time. We would really have to become a company customers could trust. We’d need more openness and transparency. Half transparency isn’t enough. We’d have to focus on individuals, with greater alignment, and leadership than ever before. To do this we’d have to get to a level of trust that would take our industry — and that would take us — to a whole new level.”

9:30am: “The social revolution is a trust revolution. The incredible value of trust.”

9:30am: “Are you and your company going through a social revolution? We believe that this will demarcate the companies that will be successful going forward. The future is about being connected to workers, customers, and partners.” Now talking about Jeff Immelt reaching out to Mark to talk about the future of GE. He went to talk to GE’s top executives.

9:32am: Continuing the discussion about talking with Jeff Immelt about the future of GE. Immelt said two things. First, said the future of GE is about the man/machine interface. They make CAT scanners, turbines, jet engines. Those machines are becoming more and more intelligent. The future of our profitability and revenue is about the effectiveness of their customer engagement. Talking about APIs and ‘socially’ collaborating with GE products which will get feeds, status updates, and other social trapping around their products. Side note: Social products is a hot topic.

Related: Last year’s Dreamforce 11 Keynote Live Blog

9:34am: Talking about the GE Share vision still and how GE is planning to connect with customers in a whole new way. Citing Toyota Friend from last year’s keynote. Now showing a video of how GE is using social to connect employees to customers to machines.

9:38am: Video is exploring how jet engines are being integrated into the social fabric of running GE. Social and Salesforce “helped connect the dots” and makes the business more approachable. “If you’re a business, you need to become social to get closer to the customer.”

9:40am: Mark is back and talking about how social adds value to the business. Now inviting Charlene Begley the President and CEO of Home Product Division up to talk. Saying “GE is Social.”

How General Electric is Social

9:41am: “Social is about accelerating learning, communication, and access to information.” Have 300,000 people that need to turn data into information. Social unlocks huge value.

9:42am: Mark: “How to transform the way that you sell to your customers? Market to your customers? Support your customers? How to do you transform the way that you collaborate with your customers? How to transform how you fundamentally work inside your organization.” Says Forbes has selected Salesforce has selected them twice as the most innovative company. “How do you transform how you innovate?”

9:44am: “Social Revolution: The New Social Front Office, Where Trust Lives.” Now breaking down the benefits of social business. “How do we give you the information you need to go back and transform your companies?” Going to tell six stories of six companies to illustrate how it’s done.

The Benefits of Social Business

9:46am: Marc’s social business benefits summary slide: +32% sales productivity, +29% innovation, +34% employee satisfaction, +31% employee productivity, +37% campaign effectiveness, +34% customer satisfaction. Jibes well with our meta-synthesis of benefits as well.

9:48am: The first story is up. Rossignol discusses in detail their experience with social business and sales.

9:52am: Announcing Salesforce Touch: “Sales is now social. Data is now social.”

9:53am: Talking about Salesforce Partner Communities. Doing a demo of how companies can selectively open up to partners to enable them to collaborate better. Using example of REI, Rossignol, and skis where they can plan collaboratively using social tools. Really switching from the vision down to specific product information. Crowd a little less engaged but it is useful functionality in terms of getting the full context of what’s going on in terms of complex sales environments.

9:56am: Continuing the demo, showing mobile devices and Salesforce Touch in context of a meeting in the field. “Has everything she needs in her hand, can see her Chatter feed, last minute updates. Using ‘digital sales aid’ instead of PowerPoint. Doing a presentation with video and answering all questions on the fly, all using the Salesforce experience. Has integrated experience right to the customer signature and closing the deal in a single seamless experience from presentation to closed deal. Fairly impressive. Saying “That is social selling.” Seeing the power of “social data”.

10:00am: Switching back to Mark (didn’t catch the name of the last person.) Talking about seamless integration of Salesforce and Chatter. Says he lives in the app himself. Now introducing CEO of Rossignol, Burno Cercley.

10:01am: Going to explore how social is transforming Rossignol, says “saving time is part of the DNA of Rossignol. In racing, 100th of second can make you very sad or very happy. Time is of the essence. If we lose a day, we can lose a season. We need to understand the business as quickly as possible. The only way to get the info from the sales guy to marketing, product development, etc is key. We need to understand what’s going on. [Social] is how we will do this.”

Rossignol's Social Business experience

10:03am: Now Charles Schwab’s CIO, Brad Peterson is up and talking about becoming a social business. I like what Mark is saying about trust (he should, given the industry.) “To be a social business, you have to have the DNA of your company support this.” 7,000 advisors are building on the Schwab platform, which Salesforce is providing. Advisors build the relationship with the customer, are building communities to improve this connection.

Charles Schwab as a Social Business

10:05am: Mark: “We are telling you these social business stories to help you transform yourself and your organizations.” 7,700 employees. #1 video game publisher. Rolling a video on how they’re using social. Says they believe that the “swarming aspect” of addressing an emerging problem is going to be key to success. Great Social CRM example, though would love hard numbers.

10:08am: Fergus Griffin, senior VP of marketing, is up. “We’ve just seen this fantastic social transformation of Activision.” Using Service Cloud to do this. Citing http://ideas.salesfore.com. Really pitching Service Cloud, includes federated search, internal objects as knowledge, external sources such as SharePoint. Available as pilot in 2013. Talking about new Chatter Communities for self-service. Combined best of social networking with customer self-service processes.

10:12am: Fergus is going through some detailed scenarios of how they support customers using social CRM. Examples include GameStop, Activision, and Twitter.

10:15am: “Bringing together people to support each other is a customer service dream.” Talking about how Activision has created a ‘Facebook for gamers.’ Have one for Call of Duty and shows examples of how customers support each other, including using gamers to rate the accuracy of socially co-created answers.

10:17am: Continuing very detailed scenarios about using multichannel customer support, including FaceTime and other ways to ensure customers can get the help they need.

Related: CRM investments ramp due to social media and smart mobility

10:19am: Using Service Cloud to redefine what customer service systems looks like. Inviting Robert Schmidt, global CIO of Activision up on stage. Interviewing him on his vision for the future. “Our games are very social, we have 1-2 million people play every day. What the future holds for us is that [social] is not just a technology change, it’s a cultural one.” Telling a story about how social networking in their company. How an employee was hesitant to respond to an issue because their boss hadn’t yet. Said this is the cultural change we need to enable.

10:22am: Mark: Introducing the CEO of Yelp, Jeremy Stoppelman, says he’s the “Father of Trust.” Mark: “Give us some insight on the medium of social networking.”

10:23am: “We have so many tapping into content on the go. All over the country and all over the world. Mobile is one of our key focus areas as social goes mobile.”

10:24am: Mark: “We want to start a new journey with you. We’re going to show you a brand new application today. It’s really incredible. The company that we’re going to use to illustrate this is Commonwealth Bank. Australia’s largest bank.” Rolling video.

10:25am: “You can extend this new world to any one, any time. If you look at the social integration in the business, things like Chatter allow the narrative of the organization to be captured and shared.”

10:27am: Mark: “By 2017, CMOs will spend more on IT than CIOs.” Sidebar: My take on the future of CIOs and CMOs.

10:28am: Introducing Brett Queener, EVP of Marketing Cloud. “Social represents the biggest change to marketing in the last 60 years.” We’re hearing: “We’ve been managing social with one or two people over here in the corner. That’s not going to work any more. They need to manage marketing over every one of their workers and customers.” Talking about the integration of Radian6 and BuddyMedia. “The industries first integrated marketing suite. We all have the ability to do social marketing right.” Certainly, this is a hot space. Note: We’re not doing so bad on this either, as are some others, but it is a compelling story.

10:34am: Brett continuing to show the integrated vision of Marketing Cloud, with real time connection between mobile, Facebook, Twitter, and the social Web. Showing campaign performance, dashboards, demographic breakdowns, and drill downs using Commonwealth Bank as an example. High polish, all in the inimitable Salesforce style. Mobile is a major, if not the primary, focus here, which is interesting.

10:38am: “We can employ the marketing cloud to use the voice of our customer. We can show ROI across both paid and earned media. Can clearly show the number of new customers that we’ve brought into Commonwealth Bank through the power of social. Can you really easily engage and advertise, and understand the return on social? Yes, you can.”

10:40am: Mark is back thanking how everyone collaborated together to create the Marketing Cloud, “it’s a new door for us, an incredible new capability. Bringing up Andy Lark, CMO of Commonwealth Bank. “What is your vision for marketing?”

10:41am: People don’t have PCs as much, now they have smartdevices. Marketing has had all these point solutions, unlike ERP and other IT systems, it’s been hard for companies to adopt. The implication is that Marketing Cloud is an integrated enough solution to be the face of marketing capability.

Commonwealth Bank as a Social Business

10:43am: Introducing George Zimmer, CEO of the Men’s Wearhouse, famous gravelly voice and all. “Well as you know, we built our business on baby boomers and a billion in advertising. We’re now transforming our company to address the millennial generation. Using Marketing Cloud to find out what they like and don’t like.” Nice: “You’ll like the way Salesforce works, I guarantee it.”

10:45am: Now Mark is talking about Virgina America, a $1 billion airline with 2,500 employees. “Culture is something the other airlines can’t replicate. The people are our business, it’s the one thing that makes us a lot different. We’ve been through a rapid growth phase that’s been challenging. This linear communication era that we’ve come out of is no longer happening. How can we make our customers part of the conversation? We found Chatter to be part of the solution. Chatter will let us give customers a personalized experience.” They’re showing how the airline can engage with customers right in the seat, on the screen they provide.

10:49am: Now Salesforce co-founder Parker Harris is up on stage talking about Salesforce Chatter. “Chatter brings social to collaboration.” Introducing Salesforce Chatter for Communities. Facebook for Customer, Partners, and Employees. Trusted security and sharing, pilot with Winter ’13 release.

10:51am: “I’m here today to announce Salesforce Chatterbox.” Sync files across any device. Preview/read documents. Secure File Sharing. Essentially a social Dropbox. Showing a Virgin America skinned version of Chatterbox, “because it’s a platform”, says Parker.

Parker Harris and Chatter at Dreamforce 12

10:54am: Continuing a demo of Virgin Atlantic with many specific examples and using Chatterbox. Interesting demo of sending a Chatter message to an airplane in flight. “Sees a message popup in his seat back.” Shows how Virgin America can provide information on his late flight, his next gate, etc. using Salesforce Chatter Communities. Looks like real functionality from their Red platform. Hands it back to Mark. “Isn’t that an incredible demonstration of the future, integration.”

11:00am: Inviting CEO of Virgin America, David Cush, up to talk. “Social is the best way to get a tip about an airline.” Typically airline communication is very chain of command, we’re changing that to be very egalitarian.”

11:01am: Just brought up famous motivational speaker Tony Robbins, who has a keynote on another day. Aggressive user of Chatter in his organization, they are creating communities where customers can solve their own challenges (using Chatter of course.) Talking about the notorious firewalk emergency recently, how they used Radian6 to manage the crisis. “I’d say the future is connect or die, connect and you win.”

Anthony Robbins at Dreamforce 12 and his Social Business Story

11:05am: Showing a video about how the workplace is changing. “In today’s world, how work gets done is very much social. With your peers, co-workers, and customers.”

11:07am: This is going to be a spectacular new journey. Introducing John Wookey, EVP of Work.com, and Social Applications. “The world of work is changing. Work is social, business is social.” When they see high performing companies, they see alignment. “We talk about leadership, passion, and hard work. But we don’t talk about human resources.” We have to align our team and drive our teams to give great performance over and over.”

11:09am: Announcing Work.com, and a social HR Performance Management Platform. “Completely redesigned from the ground up. We’ve created a continuing evolving vision of work.” Giving a demo of how Work.com supports the culture of the company and helps organizations come together to create success. Can help create motivation, “like a Tony Robbins avatar.” Work.com is a set of applications that will motivate, align, and create great performance. It will drive engagement and impact. Work.com is goals, it’s the foundation. Created with a manager and their team.

11:12am: “Traditional performance reviews are demotivating. They don’t work.” “Creates a single simple real-time performance review. Employees or managers can have a conversation at any time about their performance with the company.” Walking through Facebook’s recruiting process.

Work.com as a Social Busienss HR Platform at Dreamforce 12

11:14am: Have created a new iPad recruiting app. Now talking about Facebook, about how it has created a holistic talent management platform with Workday and the Work.com platform. Pretty impressive stuff and a good view of the workings inside of Facebook.

11:17am: Back to Mark. Welcoming Tim Campos, Global CIO of Facebook, to talk about their story. “Social is inherent in who we are. And it’s helped propel us to have more than 950M people on the site. At Facebook, we say the site is only 1% finished. The way we’re going to get there is through our workforce, and it’s about the people. We have incredibly intelligent individuals. But it’s not about the org chart or structure. It’s about the relationships. We need tools to help us facilitate that.”

11:19am: The new view de-emphasizes the the cost center. “Our workforce is encouraged to provide continuous and authentic feedback every day.” Talking about how they use Work.com presumably. “The next generation of workforce tools is going to create this kind of relationship between employees.”

How Facebook is Social At Dreamforce 12

11:21am: Introducing Aneel Bushri, CEO of Workday, thanking Mark and talking about their partnership. Now switching to the social business story of Coca Cola and how they’re making their beverages social. It’s clear Salesforce is trying to show how social is really happening, now.

11:25am: Continuing video of Coca-Cola, which is talking about mobile, cloud, social, networked environments, and how they are trying to embrace consumerization and mass personalization. I expect another executive introduction.

11:27am: Introducing George Hu, COO of Salesforce. “I want to bring it all back to the most important question. How do we get there? How do we get our organizations get to that level of innovation that we’ve seen [here.] How do we get there. The how is at the heart of Salesforce.com. We want to make the social transformation as easy as a post on Facebook.” Giving a hard pitch for the entire Salesforce.com platform and all its many component for cloud-enabling social.

11:29am: Talking about Touch and Identity as two major announcements. AppExhcange, 1,700 apps, 70% of Fortune 100 customers have installed apps. I think he said 1.4 million users.

George Hu talking about Salesforce Platform at Dreamforce 12

11:31am: Looks like Salesforce Identity is going to open the social graph for enterprises, very interesting. All standards-based says George. “Many of us have thousands and thousands of apps written on other platform. We want to create a seamless social identity for them.” Potentially bigger news: Introducing Force.com Canvas, Gets enterprise apps in Salesforce, just like Facebook. “Can unlock a tremendous innovation. Makes all your legacy applications social and mobile.” Wondering how OpenSocial fits in.

Related: Enterprise Social Networks Need Open Standards

11:34am: Now announcing Salesforce Touch Platform. Write Once Deploy Anywhwere. HTML 5, Native, and Hybrid. Secure as well they say.

11:40am: Very detailed demos continuing. Lots of mobile and social.

11:42am: Back to Mark. “I’m so excited about this vision. We keep seeing this same thing: We’re connected to our customers, to our companies, and products.” Introducing Ed Steinike, CIO of Coca-Cola. “Ed, you’re an amazing CIO. One of the industry leaders. Made a major investment in SAP in the back office. Now you’re making a major investment in the front office in social.”

11:44am: Ed: “We do 1.8 billion servings per day of our product. We want to connect those 1.8 billion happy customers with all layers of our company. Mobile is the way this happens.” Mark thanks Ed, that was quick. Now talking about the mobile tsunami.

Related: The “Big Five” IT trends of the next half decade: Mobile, social, cloud, consumerization, and big data

11:45am: Final vignette of the keynote: Burberry. Their CEO, Angela Ahrents, talking on video.

11:50am: Now she’s actually here up on stage. I’ve told their social business story in detail before, which is quite impressive. Talking about their mobile engagement at the Olympics in London. “This is the future [holding her mobile device.]“

Angela Ahrendts of Burberry talking about mobile and social at Dreamforce 12

11:52am: Going over their new mobile experience and putting RFID into the products and immersive virtual experiences that gives the backstory of the products your holding. Thanking Angela, who is definitely a social business and next-generation enterprise leader.

11:54am: And that’s a wrap. Marc finishes and the lights and music turn up. I’ll post analysis on ZDNet as soon as I’m able.

This Year’s Ten Digital Strategies for the Next-Generation Enterprise

It’s time for most organizations today to uplevel their technology stance: They must become profoundly proactive about external change and innovation. That’s because technology change is currently happening much faster than most organizations can readily absorb, at least how they’re doing it today. But that doesn’t mean they shouldn’t try. More importantly, they should begin putting in place the processes and structural changes required to begin adapting and co-evolving more quickly.

Technology is an enormous amplifier of human effort. However, because it also uses itself as a ladder, it changes more and more quickly as time goes by. Add in the fact that anyone, anywhere can now innovate on top of the current technology curve and distribute their efforts to the world at practically zero cost, and you have a near-perfect recipe for disruption of the traditional status quo for IT in the enterprise. So how can a central bureaucracy that is greatly outnumbered by its customers ever help bring in enough new technology to satisfy the increasingly voracious demand for apps, data, devices, and more?

In short, it’s much later than most IT departments think. Disruption is coming fast in a mobile, cloudy, social world.

Fortunately, there are indeed some ways that might work to address this headon as I’ve explored recently. But as organizations implement these strategies, they also need to bring in the fundamentals of the biggest and most important advances right now. Falling too far behind and becoming a technology laggard means significant and sustained loss of competitiveness that’s very difficult to recover from. With change happening so rapidly, and technology creating a widening gap between the top performers and the 2nd tier, it requires organizations to run a bit faster just to stand still while they make the changes needed to have a more sustainable future. What’s needed is a short list of specific high-impact changes that will also lay the groundwork for future growth and digital transformation.

In my professional opinion, the list below represents the absolute minimum that enterprises should be building skills in and piloting this year. However, most of these are really must-haves now, to have at least in the experimental phase in your organization today. I also realize, from working with hundreds of companies in the last few years, that you’ll typically have less than half of these represented in your organization today. But that’s the point of the list, to find the gaps in your next-generation IT arsenal. I’ve omitted obvious items like BYOD and Big Data platforms like Hadoop, since virtually all organizations have these on their lists already. Note that this is a more tactical viewpoint that what I usually provide. For example, I pick out key planks of new approaches, such as Social CRM and employee social networks, instead of the entire view of social business. Organizations need clarity on where to start to become a next-gen survivor, and this breakdown will help I believe.

Visualizing Next-Generation Enterprises: Social Business, Consumerization, Gamification, Employee Social Networks, Unified Communication, Open APIs, Cloud Computing, mobile CRM, Smart Mobility, Social CRM

First though, what’s a next generation enterprise? My definition is this from my recent breakdown of emerging enterprise IT for 2012:

A next-generation enterprise describes organizations that are proactively moving into the present by changing how they assimilate, architect, apply, and maintain their technology solutions in the context of updating and transforming their processes, structure, and business models to effectively align with and work natively in today’s networked and highly digital economy. While that may be a mouthful, it also accurately describes what most organizations must do to ultimately avoid disruption in the marketplace as technology increasingly defines how our businesses engage with and provide value to the world.

How do organizations start moving into today’s technology present? Below are the top ten digital strategies I believe more enterprises are behind in and need to begin addressing this year:

  1. Mobile customer self-service. This is an official company mobile app that lets your customers engage in (at least) the top ten most frequent customer service activities. The best of these won’t copy the features from your web site but enable new models of customer interaction made possible by mobile device capabilities. Example: The financial services firm USAA turned every one of their customer’s smart mobile device into a mobile bank branch, allowing customers to deposit checks by taking a picture of them inside their app and transmitting it, saving them a trip to the bank.
  2. Open supply chains/APIs. If you aren’t strategically opening up your business for the world to build break-out new products and services on top of, then you should start and start this year. Organizations like the World Bank, Best Buy, and many others are doing what the Internet giants are doing: Building ecosystems. You must too. Get a sense of where the fast moving world of the Internet is heading with this from an overview of my good friend John Musser’s talk at Glue last week.
  3. Employee social network. There are many genuinely potent ways to apply social media to significantly improve outcomes across any organization — see the detailed case studies in Social Business By Design (Wiley, 2012) for game-changing examples — but it’s now clear that every company is getting its own social network. While some will not be strategic to the business or have low levels of use, the data increasingly shows that most organizations get value from them. We already see that organizations are finding social networks proliferating with Chatter, Yammer, Socialcast, SharePoint, and many others. Enterprises much take charge, provide clear leadership, and anoint official social network(s) as appropriate. Bonus points for understanding where ROI in social business comes from and focusing on it with this effort.
  4. Gamified business processes. Perhaps the least important sounding of all of these next-gen enterprise trends, yet I’ve been surprised at how fast some Fortune 500 companies have adopted this. I spoke with the CEO of Badgeville recently and he indicated that nearly 150 of the Fortune 500 were using their gamification platforms. I recently wrote a detailed breakdown of the enterprise gamification space as well that explores some truly impressive results.
  5. Community-based customer care. Organizations like SAP, Intuit, American Express, and others have all demonstrated that customers can support other customers (in general) far better than a company can. Companies have limited resources, customer care is considered overhead, and other customers with similar backgrounds and needs already have better insight they can share. While Social CRM is the official buzzword for this approach and is the industry where you can find the most applicable technology support, you really only need some community software, a simple strategy, and some community managers. Don’t wait, start now. This is where some of the easiest and quickest returns are on this list.
  6. Unified communication. After years of languishing and with market penetration hovering around 30%, unified communication is set to explode this year to help address the channel proliferation problem today. UC is also incorporating social media and otherwise moving beyond the telephony and IM space to become much more strategic. While I’ll be exploring the intersection of UC and social business soon, the latest data from IDG shows that 90% of organizations are looking at unified communications in 2012, a huge leap from last year and one that should be on everyone’s next-gen roadmap.
  7. End-user led IT and competitive #CoIT. Users are going to help lead the technology adoption for next-generation enterprises. Collectively, they have the resources and bandwidth to explore, evaluate, and apply new forms of IT. These include SaaS, disposable apps, mobile devices, and much more to their local technology problems. IT departments will become the curators and enablers, collecting and disseminating best practices across the edges of organizations. As part of this, IT organizations will deliberating put themselves in a competitive position with outside suppliers and 3rd parties. They’re already facing stiff competition from app stores and outsourcing firms, and now they must demonstrate they can effectively compete. You can read up on the CoIT model in my explorations on the topic over the last year.
  8. Mobile IT reinvention. You must be mobile-first for most of your future IT deployment. Mobile is also going to require rethinking IT. Most organizations already know this now, so I don’t need to belabor this point, other than simple translations of legacy IT to tablets will be woefully insufficient and will drive users to 3rd party apps. Read two great cautionary stories about this from Gartner’s Andrea Di Mao.
  9. Migration to the cloud I currently see less focus on moving to the cloud these days. Part of this is because it’s just happening and being baked into many of the services we now use in the enterprise. But I also see a lack of understanding of how strategic the cloud can be. Start moving the edge of IT into the cloud to reap the benefits that go far beyond cost containment and into business agility and innovation. The cloud really does enable entirely new solutions to old problems.
  10. Digital business leadership and transformation. Start laying the groundwork to drive the business when it comes to moving to digital business models, where the future of most companies lies. CIOs and other IT leaders should be moving away from an infrastructure focus and to a business innovation focus as quickly as possible. While this is far easier to say than do, the very future of IT is at stake as CFOs increasingly focus on moving infrastructure out to the cloud. The future of IT is digital leadership, and less in technical plumbing, even though that will remain vital at a strategic level.


What’s on your list of the top digital strategies for organizations this year? Please add your thoughts in comments below.

See Also:

Connecting Digital Strategy with Social Business and Next-Gen Mobility

Reconciling the enterprise IT portfolio with social media

Social Business in Australia in 2012

While traveling around the world recently to discuss social business in Asia and Eastern Europe, I’ve been reminded by the sheer speed at which social networks are changing how we communicate. Most of the Western world has been on social networks for a while but now the rest isn’t far behind.

However it’s people like you and me, sometimes referred to as consumers by the business world, that have been leading this particular technology and societal revolution. Consequently, it’s been taking longer for those in the enterprise to sort out how the “Corporate Spring” will affect them. I’ve written about the concerns over ROI as organizations try to figure out their appropriate level of investment in social media, internally on intranets and externally for social marketing, customer care, and product development.

Australia has been interesting case in particular, and one in which I was fortunate enough to visit for the first time last year when I spoke at Social Business Summit 2011 Sydney. Australia has been listed most recently — along with other highly developed countries such as the U.S., the U.K., France, and Germany — as “social mainstream and mature” by the Boston Consulting Group. 90% of Australians use social networks, ahead of other advanced countries, such as Canada. Facebook usage exceeds 50% of those using social networks.

Aspects of a Social Business: Social Marketing, Social CRM, Enteprise 2.0, Social Intranet, Crowdsourcing

As in other countries, Australian businesses are now catching up now that their customers and workers have change their communication habits and behaviors. The same report I cite above says that 77% of organizations in Australia expect to increase investment in this social media over the next 12 months. But the fundamental question is, given the many directions that social media can take, how best to architect social media into the way a business works? How can social business best be situated in the way that organizations work to derive value that really moves the needle?

To help answer that, I’m pleased to report that I’ll be kicking off the book tour for our new book, Social Business By Design, in Australia with a series of appearances in Sydney later this month, from May 14th-18th. In addition to speaking at Intranets2012, I’ll be giving two workshops that are being exclusively sponsored by Headshift Australia. Details are below as well as here.

I genuinely hope to see you if you’re in Sydney or surroundings so that we can continue the discussion and explore of the future of how organizations will operate and create value for themselves, their customers, and shareholders.

Sydney Workshop Details – May, 2012

Social Business 101

The social media era has arrived and organisations are looking for ways to grapple with the many implications to their business. Companies are increasingly seeing the benefit and need to approach social media activities with integrated external and internal efforts. Professionals can no longer rely on point solutions and isolated activities — no brand, department, or employee is an island in the social landscape. Today, firms can learn from the lessons of early adopters and craft a solid plan for success that includes formulating a winning strategy, applying appropriate game-time tactics, and measuring for meaningful return on investment.
This session provides a cohesive and readily approachable introduction to social business that is immediately actionable by executives, line managers, and workers.

Participants at this session will learn:

  • What social business is and why it matters
  • The key tenets to social business success
  • Strategy and tactics to apply your own situation

When: 9am-12pm, Thursday 17th May, 2012
Who should attend: This workshop will be relevant to people working in different management roles, including sales & marketing, customer service, HR and operations.
Where: Headshift Asia Pacific, East Sydney.
Cost: $275 (excl. GST) per person (includes a signed copy of the book).
Tea, coffee and light refreshments will be provided.

To book this workshop, please use our online registration and payment page here. Please note, that places are strictly limited.

Consumerisation of IT

Employees have begun driving the use of consumer technology in the workplace—bringing their mobile devices, Web apps, and social networking experience with them from home—but the trend goes even deeper than that. It’s a fundamental shift away from IT creating and managing the organisation’s IT assets to accepting that employees now own significant swaths of technology and will lead the enterprise march into the future. Dion has watched organisations large and small struggle with this convergence of mobile, social, cloud and big data, and has helped them prevail in their quest to harness it for innovation to transform the way the enterprise does business.

Dion will explore the new IT landscape and share his consumerisation experiences in the field to set the stage for consumerisation in your organisation by showcasing real-world companies that represent the new generation of IT and business. Participants will be equipped with strategies that will enable them to take steps towards managing the trends and keeping ahead of current trends.

When: 2pm-5pm, Thursday 17th May, 2012
Who should attend: This workshop will be relevant to people working in different management roles, including sales & marketing, IT, customer service, HR and operations.
Where: Headshift Asia Pacifc, East Sydney
Cost: $275 (excl. GST) per person (includes a signed copy of the book).
Tea, coffee and light refreshments will be provided.

To book this workshop, please use our online registration and payment page here. Please note, that places are strictly limited.

10 Leading Books on Social Business

During the research for our forthcoming book, Social Business By Design, I ended up taking a close look at a number of other excellent titles on the subject. In the end, I came away concluding there was more than ample room in the market for another entry, but that’s a story I’ll tell when the book goes into the print in the next couple of weeks. Suffice to say I encountered some terrific thinking, quite useful framing, and plenty of fresh ideas — as well as good company in the form of many of the thought leaders that helped define the social business industry. For an industry it certainly is, with all the requisite ingredients.

In fact, the business landscape is now rife with organizations of all sizes who are attempting to grapple with the rapidly changing business conditions brought on by the global growth of social media, particularly its rising domination as a form of communication. There is also a large and vibrant ecosystem of vendors that supply products and services to help said customers, and analysts and thought leaders that observe the interplay between the two — with the rest of the world for that matter — and try to figure out where it’s all going.

The good news, since we’re near the end of the beginning of the social business journey, is that there is a lot of information that can be drawn upon now, particularly some excellent books on the subject, which I’ll list in a moment. However, one question that has come up often about books on social business is whether the format is appropriate for a way of living and working that is essentially based on open participation. In fact, that’s the core tenet of social business: Anyone can participate. While I’ll save a longer answer for my formal announcement of Social Business By Design when it hits the shelves by the end of April, let’s just say that books are still a widely used communication and learning channel, and one that has a large global ecosystem that remains well established and highly valuable. In other words, books (paper or digital) are still an effective way to reach people and quite acceptable as long as its starts a meaningful conversation amongst their audience that continues onward, which Peter Kim and I hope it will.

But if you’re reading this, you probably just want to know what the leading social business books are and I’ll get to that now. Please keep in mind that this is not a definitive list and I’m aware of several other excellent books making their way to the market. I’ll update this list if appropriate. So, in no particular order, here are the leading books on social business in my opinion…

The Leading Books on Social Business

  1. Smart Business, Social Business by Michael Brito. In his book, Michael clearly conveys why it takes more than social marketing to succeed in today’s deeply connected business world. I particularly liked how he explained what’s often the toughest part: That social business transformation requires a genuine cultural shift in how companies do business and in the way they interact with customers and prospects. Readers are given a detailed tour of the people, process, and technology shifts needed to succeed with plenty of details. The book explores social strategy, governance, tools, and metrics with a healthy dose of real-world case studies.
  2. Socialnomics by Erik Qualman. Views on this book vary widely, yet it’s clearly one of the most popular books on social business, albeit primarily of a marketing and customer engagement bent. Erik explores the impact of social media on business to uncover how businesses can take drive better outcomes in new and innovative ways. His best material is about the changes that must happen to achieve results, specifically the transformation of businesses produce, market, and sell products. Much of the focus of the book is on the different methods businesses must use to connect directly with their customers through today’s global social media platforms.
  3. Engage by Brian Solis. Brian has written a number of books on topics related to social business but this one is the most focused on the specific process of social media enablement and transformation. The book lays out how to develop an online ecosystem for the business and cultivates customers’ loyalty and trust in order to engage them for better business outcomes. Other useful details include how to establish an organizational structure that effectively delivers on social media while being poised for the next-generation just around the corner, including “detailed and specific steps required for conceptualizing, implementing, managing, and measuring a social media program.”
  4. The Mesh by Lisa Gansky. While not directly about social business per se, this book articulates a crucial endpoint for processes that are highly open and where everyone can participate (yes, social business.) In Lisa’s view — and I agree — business today is now about enabling entirely new operating models and ways of creating business value that are highly cooperative and self-organizing. Lisa’s book is vital for understanding the bigger picture for which social business is a key plank. Highly recommended for getting business leaders to think outside the box and get ready for culture and organizational change (and innovation.)
  5. Empowered by Josh Bernoff and Ted Schadler. A follow up for Bernoff of the highly influential Groundswell, Empowered is a detailed look at how employees with great ideas in an organization can be enabled to innovate and transform a business to better serve its customers. In their view, powered by pervasive social technologies, customer service (aka Social CRM) has definitively become the new source of marketing. Empowered lays out a detailed process for getting there with managers eponymously empowering employee innovators (described as HEROs in the book) and IT/business stakeholders to better serve customers directly to generate a wide variety of interesting results, from word-of-mouth marketing to better product ideas. Bernoff’s and Schadler’s analyst roots pay off with many case studies and pragmatic examples that demonstrate how social business empowerment is already happening in scale.
  6. Macrowikinomics by Don Tapscott and Anthony D. Williams. The successor to Don’s hugely successful Wikinomics, this book takes the social business conversation up to a whole new level. While some have pointed out that actionable specifics are largely not included in the book, that’s beside the point: The goal of the book is to present a compelling case for the way we’ll organize our businesses, governments, and society now and in the future. A powerful book for those that want the entire big picture of social business (here called mass collaboration) and how it can solve problems that have been intractable or merely just very hard. While not a practitioners book, I advise everyone to be familiar with the strategic conversation Macrowikinomics lays out to get a clear view of the all moving parts that everyone must support.
  7. Cognitive Surplus by Clay Shirky. Coined from a concept that Clay frequently discusses, namely that we’re just now learning how to tap into the full productive and creative capacity of our collective cultures and communities, this book lays out the whys and hows of using participation to create compelling and unique business outcomes. Subtitled “How Technology Makes Consumers into Collaborators“, this book the means, motivations, opportunities, cultural issues, and supporting examples into a coherent story about how emergent business solutions powered by social media will change business forever.
  8. The Social Organization by Bradley and McDonald. Authored by two of Gartner’s leading analysts, this book makes a very strong case for employing social technology in the enterprise to get work done better. Sharing insights from their research into the successes and failures of four hundred plus organizations that have employed social technologies for workforce and customer-facing business solutions, the authors go well beyond technology and into the human element. Discussion includes how and why to build strategic communities, designing new ways of openly collaborating, and how to guide social business efforts to achieve a purpose, and so on. Bradley and McDonald also identify the core disciplines managers should master in order to transform social collaboration into otherwise unlikely yet highly potent results.
  9. Get Bold by Sandy Carter. One of the most interesting social business stories of the decade has been IBM’s not-so-gradual conversion to being a social business. While such transformation is generally quite hard to do for large companies, the global technology giant did it in record time. This book, by one of IBM’s top social business evangelists, clearly demonstrates that they truly “get” the changes happening and know how to get there. After making the case for what social business entails, Sandy lays out the steps to reach social business maturity and includes her AGENDA framework for achieving it.
  10. The Social Customer by Adam Metz. Metz treats Social CRM comprehensively considering it from many angles and aspects, from process to tools. He explores the 23 use cases that simultaneously provide the fabric for actionable, practical and approachable methods for engaging usefully with the social customer. Metz borrows from and builds on the excellent work of Greenberg’s CRM at the Speed of Light and Kim and Mauborgne’s Blue Ocean Strategy to create a picture consistent with a larger set of thought leadership.

Honorable mentions:

Please note, that while I tended to emphasize books that were highly approachable, all of these are worth the time and effort either for your own edification about social business or to help educate your business and technical leadership teams. Finally, while there is no doubt I may have left a few good titles out of this list, I’m happy to — and will — add any titles to this list that commentors are particularly passionate about. I hope you find this helpful and a useful resource for assembling the definitive literature on social business.

Related Reading:

The Social Enterprise: A Case For Disruptive Transformation

Baselining Social Business Maturity: Why and How

Converging on the Social Enterprise

The Path to Co-Creating a Social Business: The Early Adoption Phase

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