Co-creation the Engine of Enterprise Innovation

The Social Business Case

I started TribalCafe with the idea that we could help businesses change and adopt social media, not just for marketing to their customers, but to transform how they harnessed the power of their people; to create a shift in the way people worked together to innovate.We are still working towards that goal but thought we would share some of our thoughts and learning.

Despite the barriers we can learn from companies that have integrated social ways of collaborating and working such as Zappos. But there are plenty of other evidence. For more case studies and information visit the 2.0 Adoption Council, IBM (in association with MIT Center for Digital Business and the Dachis Group) who have published a series of case studies demonstrating integrated social business.

What we can take out from these case studies is:

• They inspire and provide evidence of what is possible and both in terms of capabilities and results


• Provide ideas, best practice and mistakes that can be shared and that people can reuse


• New thinking on existing similar issues that others may face


• Building blocks - knowledge and experience that others can use and add to

Inspiring insights

What we find today that whilst many businesses have taken their first steps towards using social media for external communications few have strategically aligned themselves towards a  social business. This is despite mounting evidence from reports like McKinsey's Web 2.0 in business results reported in December, 2010. McKinsey's analysis of companies found that “Market share gains reported by respondents were significantly correlated with fully networked and externally networked organisations. This, we believe, is statistically significant evidence that technology-enabled collaboration with external stakeholders helps organisations gain market share from the competition..”

Deloitte has also released a new study on using social software for improved business performance. The social business study has made clear how business leaders of today need to harness social business for the “unique capabilities to address current operating challenges and improve operating metrics”.

So now we are starting to see a picture emerge of a new way of working a new enterprise ecosystem that fosters ideas, builds and supports co-creation processes and then resources some of these to effectively innovate. It is important that organisations effectively set a clear path for taking commercial ideas to fruition; if they do not they will fail to harvest the fruits of encouraging co-creation.

The Relationship Culture

Whether it is friendship, partners or marriage; good relationships involve  reciprocation, good communication, consideration...if organisations want employees to give up ideas, foster collaboration, devote additional energy and hours when needed and advocate the benefits of the business...they need to think of developing a relationship with their people. This moves a business beyond a transactional exchange of money and benefits for goals and objectives to be achieved; it becomes a relationship culture. If knowledge and ideas are the new oil of commerce this becomes a necessity; but transformation needs to be considered, planned and developed in line with the broader organisational strategy it needs shareholder buy-in and the commitment to the long term.


“Culture is to organizations what personality is to people.” Edgar Schein.

Some of the Barriers that Enterprises Face

New Business Models

We are in a era where ideas can be transform industries, where new business models can forged through the combination of imagination and technology. The flexibility and adaptability of technology now invites people to break through traditional models, re-invent how we think of business; and for brands it is flattening the value chain - it is providing direct links to the end customer or consumer.

But many businesses as yet are not digitally literate and do not have an understanding of emerging technology and the possibilities it can offer. There is often a limited understanding of how enterprise social media can strategically benefit the business. Consequently it is hard for those unfamiliar with the tools and approaches of social business to extrapolate ideas to benefits and opportunities. The hardest part about social business is changing your thinking.

Analysis Paralysis

Some businesses are not taking action despite the level of data, market trends, case studies and other relevant supporting information. This analysis paralysis and aversion to change and risk is at a time when markets are moving faster than before - the risk therefore of not taking action is often not considered within this mix.

Meanwhile competitive businesses test, pilot and scale gaining learning, results today. They develop capability and discover how to create value through their people. It is not about prematurely launching some initiative though based on an ill formulated goal. It is about setting a course and strategy that is company wide, building resources and capabilities and incremental change based on strategic projects, shared learning and targeted parts of the business. Sharing knowledge and lessons learned on how a social business.

However,scoping projects, scoring capabilities and objectives, allocating budget and resources are vital to take the first steps

Tools and Technology Blindness

Many organisations are used to large scale deployments of software and systems. Yet the agility of todays technology involves much easier integration, adaptation and scaling. Organisations are facing competing vendor advice, internal positioning of technology needs and as a result get wrapped up in the tools not the business objectives. They get caught in the what can't be done rather than what is the idea and how can it be achieved.

It is important to establish a social business strategy that considers social business behaviours and supports the adoption of technologies that create a continuous flow of knowledge, information and value exchange. Enterprises cannot build a social business culture on tools and technologies alone.

Organisation Structure and Responsibilities

A social business has many facets and touches upon the core disciplines within the business. Executives are used to formalized structures and responsibilities, yet social business transcends this. HR, Marketing, Customer Service, Internal Communications, PR or IT are all affected. There is the obvious need to create a new position for this yet in the initial stages it needs to be carefully chaired and guided by a group to ensure consistency in the development of the process.

Co-creation the Engine of Enterprise Innovation

What does the social business look like:

Flexibility: people will have a more fluid role based on a far greater demand for project based work; where people are more identifiable as facilitators, specific experts or technicians, project managers...

Adaptable: Cost of fuel is increasingly making home working more effective, locality will increasingly become important and hours will be determined by a work life balance. Multiple projects become the basis for tuning hours vs. pay and benefits

Skills and Learning: If the pace of change is increasing then aligning skills to market needs will be enhance value both for the individual and the organisation. More businesses will attract and work with people to develop their skills - even contracted partners.

Open and transparent: Management practices will be transparent (mindful of course of peoples confidentiality). The familiar 360 process will extended to partners and customers but rather than staged annually it will be more dynamic.

Brand and Service: The brand, the culture and the people will increasing become intertwined affecting talent acquisition, customer perceptions and value proposition.

Cisco uses a social business strategy to improve brand positioning and create awareness, but the process of doing this has driven an output internal Enterprise 2.0 efficiency and a new social business culture. Co-creating value should not not only be through internal people; it is needs to be part of a broader market community where customers are included and opportunities to harness and shape new value models. The prize is available to those that start the journey.

I have only touched upon some aspects of social business and would welcome other ideas, experiences, case studies and examples.

 

 

 

Social CRM or Social CEM - What makes a Social Business?

What is Customer Relationship Management (CRM)?


Paul Greenberg who blogs on CRM at ZDNet and is author of CRM at the Speed of Light (great read) has been instrumental in sharing knowledge on the rapidly changing and evolving world of CRM. CRM is a business strategy designed to optimise profitability, revenue and customer satisfaction. As social channels have developed so too has the complexity of dealing with the associated volumes of conversations around brands and products. Consumers now have power to voice their opinions openly.

Organisations are now rapidly trying to integrate information into their CRM systems (many of which are old legacy systems such as SAP/Siebel). Kate Leggett provides some practical views on this and the need for organisations to take control. So what is the main debate about?

Many people are frustrated with the many current practices of CRM that fail to deliver a good customer experience. Many can relate to long waits on phone lines, multiple interactive voice response lines, lack of consistency with information...and the list goes on. Despite masses of investment in Siebel/SAP and Business Process Mapping organisations seem to have removed not complimented the customer experience. The drive to reduce costs not enhance the customer experience was the main driver behind many CRM initiatives and outsourcing programmes.

The main problem is that CRM platforms measure customer interactions solely upon product purchase history and preferences. These measures are product centric and historical and don't consider or take into account experience or forward looking trends & preferences.

Is CRM as simple as this sometimes (watch the video)?

Enter the Social Customer?

One of the classic cases of bad customer service and the use of social media was the management by United Airlines of Dave Carroll's guitar which was badly handled both in terms of customer service and PR. The power of the social customer to influence and amplify their voice is here. But let's not forget that companies should tread a careful line between service and rewarding those that shout loudest. While traditional is still available, many organizations are often responding to customers faster when the complaint comes in via a social media site.

As a result, are we teaching customers to use social media as their customer service escalation path? Are we instilling bad behaviours of immediacy? Whether we like it or not real time is approaching just as a generation have changed to the timeliness and expectation associated with different communication methods: from letters to faxes to emails (initially by PC and then the move to mobile) and now Twitter. We are moving to closer to real-time.

Paul Greenberg defines social CRM (SCRM) as: "the company's programmatic response to the customer's control of the conversation." Its about the company taking hold of the reins of the conversation, not the other way round.

Brian Solis: SCRM affects the whole organization and is transformational. According to Solis, 'the ability to identify active communities of relevance', tracing influential people and channels, and the dissection of all phases of the process of decision making, all in real-time, are crucial aspects of social media marketing.

Involving these ‘influencers’ and communities, and the linking of CRM to interactive marketing actions are some of the core elements of an integrated, social CRM. As Brian intimates we are moving to an experience economy.

So What is Customer Experience Management (CEM) ?

Customer experience is one of the great challenges for innovation. It is interactions between an organization and a Customer. Of course this involves the customer relationship management, however this is only one element of the service delivery. It is the blend of an organization’s performance, the thoughts and feelings that customers have. As the customer moves from through the touch-points of its association with the organisation - it is the experience.

But where is this heading?

The struggle that organisations face is not purely at the operational level of integrating systems, processes and adopting these tools. The fundamental shift is on how organisations transform their structures, cultures and values to reflect a more customer focused approach to evolve to this new focus on customer experience. This is also a necessity to adapt and be agile in rapidly changing environment. Organisations will need to focus on the perspective of their customers and empower their employees to deliver it well; they need to become a social business. Happy customers become advocates and bring along their friends.

What of the future?



Brands and organisations are having to face a point where the consumer and organisation are converging in the relative role of 'real time' experiences. Supplying goods and services will be associated with facilitating unique consumer experiences on demand and these may be off-line and on-line or augmented These experiences may be facilitated by a brand community or a new experience environment to interact with and co-create value.  Since experiences are not easily replicated or copied these will be the value and uniqueness where brands will battle for consumer attention.