Posts Tagged ‘cio’

Social Business Investment Should be 20% of Corporate Budgets

October 8th, 2010
What?? Are you crazy?
But when you consider social business is really about customer experience; you also realize that customer experience is really an crass-functional, organization wide responsibility. Social media has lowered the cost of communications, opened up the levels of transparency in business that we have never seen. Organizations cannot just assign it to marketing and go about their business. The impact is too large and too overwhelming.
We have seen a tremendous number of CIO and CMO’s tell us that they are struggling with the amount of information being generated in their organizations and they see it growing exponentially. VP’s of HR are seeing the way potential employees engage with organizations changing. Sales and partner organizations are trying to deal with the amount of noise and the speed of change. All of this has impact on our organizations and eventually, we believe, market valuations. Every function is trying to adapt to the speed of change and the amount of information now being readily available due to social media. Social business is not going to work if it is seen as a siloed functional initiative.
We have seen the similar evolution in other technologies; ERP and the Web where the evolution of the market, technologies, and business processes were silo-ed and eventually evolved into cohesive platforms. We are seeing the similar evolution in Social Business with the disruption being as impactful as many of the technologies disruptions that we have seen in the last few decades.
We are seeing at the project level where “social” projects are really 80% traditional and 20% social, but the sequencing, priority, and objectives look radically different.
If the customer experience is fundamentally going to change from the “over-automated” to a semi-automated, more personalized model, then your business systems and processes, even your people are going to have to adapt. 20% may be too little, but with a 3-5 year plan and systemic and consistent innovation; companies will be positioned to succeed.
The alternatives would be to look at the 62, all market leaders, of the Fortune 100 companies that got caught and replaced on the list of the Fortune’s biggest companies. They got caught flat-footed, or too invested in their business models to adapt to the web. Competitors caught them from behind and grew much faster. Many aren’t even around today.
This is why the SEC is so valuable. The exchange of ideas with other business drivers, the collaboration around why, what, and how… and a small enough pond to enable all of us to see the real “best in class” partners to help us deliver within our organizations.

“What?? Are you crazy?”  Ok, when you pick yourself off of the floor, consider the following….

How much do you spend on customer relationships? No just CRM, not just marketing, but all of the systems, processes, and people to support customers. If you are like most companies, you are spending probably 90% related to customers in some way. If the customer experience changes radically, 20% may not be enough.

But when you consider social business is really about customer experience; you also realize that customer experience is really an crass-functional, organization wide responsibility. Social media has lowered the cost of communications, opened up the levels of transparency in business that we have never seen. Organizations cannot just assign it to marketing and go about their business. The impact is too large and too overwhelming.

We have seen a tremendous number of CIO and CMO’s tell us that they are struggling with the amount of information being generated in their organizations and they see it growing exponentially. VP’s of HR are seeing the way potential employees engage with organizations changing. Sales and partner organizations are trying to deal with the amount of noise and the speed of change. All of this has impact on our organizations and eventually, we believe, market valuations. Every function is trying to adapt to the speed of change and the amount of information now being readily available due to social media. Social business is not going to work if it is seen as a siloed functional initiative.

We have seen the similar evolution in other technologies; ERP and the Web where the evolution of the market, technologies, and business processes were silo-ed and eventually evolved into cohesive platforms. We are seeing the similar evolution in Social Business with the disruption being as impactful as many of the technologies disruptions that we have seen in the last few decades.

We are even seeing it at the project level where “social” projects are really 80% traditional and 20% social, but the sequencing, priority, and objectives look radically different.

If the customer experience is fundamentally going to change from the “over-automated” to a semi-automated, more personalized model, then your business systems and processes; even your people are going to have to adapt. 20% may be too little, but with a 3-5 year plan and systemic and consistent innovation; companies will be positioned to succeed.

The alternatives would be to look at the 62 companies during 1989-99, all market leaders, of the Fortune 100 companies that got caught and replaced on the list of the Fortune’s biggest companies. They got caught flat-footed, or too invested in their business models to adapt to the web. Competitors caught them from behind and grew much faster. Many aren’t even around today.

Defining the Social CIO

April 30th, 2010

I spoke at SIM Atlanta last week on behalf of the Social Executive Council (SEC) with Dan Webber, CIO at Avery Partners and VP of the SEC. I was the stand in for Judy, who is the President of the SEC. Our discussion was on the difference between Social Media Policies and Social Governance. This was a first part in a series on the Social CIO. It has been amazing to me how receptive CIOs are to the idea of socially enabling the enterprise. As much as I speak and write to the Social CMOs, approximately 1/3 of the SEC members are CIOs. CIOs are an important part of the social enablement movement. I believe a critical one as I do not believe organizations can do this without cross-functional coordination.

For SIM Atlanta, we started the presentation last week with a strong statement about what is a Social CIO:

If you believe that the social disruption will impact the enterprise:

  • Role of CIO and IT must evolve
  • Information management will now encompass the adoption, motivation, and collaboration around the distribution of information.
  • IT Architectures will need to take into account for the fluid nature of social interactions (unstructured) and the overwhelming amount of information (contextualization and filtering) to handle the real-time needs of their organizations
  • The IT organization that can absorb this and lead the transformation will be strengthened within the organization.
  • The IT organizations that cannot keep up will be marginalized.
  • The Social CIO is architect for the social enablement of the enterprise

 

What we didn’t do last week was outline the areas that will be impacted by the Social CIO, here are the 5 areas that we believe are the starting point:

  • Social Architecture – defining the next generation of information architecture to support the fluid information needs of the socially enabled enterprise
  • Social Experience – building the platform to support the socially enabled customer lifecycle; includes CRM, contact centers, sales and marketing support
  • Social Intelligence – integrating the wealth of behavioral information that is generated within online communities and social interactions. Think the ability to differentiate between browsers and shoppers or better qualify leads.
  • Enterprise Social Search – Defining the ability to find information or expertise across the enterprise. Now add the complexity that the organization may or may not own the information, it may be in the “cloud” and it may be unstructured. How do you build a roadmap to manage the ability for your organization to find stuff in a socially enabled enterprise?
  • Social Governance – It governance is about protecting the information and intellectual property assets of the organization, about bringing a systematic approach to leverage and consuming technology resources, and planning IT initiatives in a structured way. Social governance takes that to the next level in how do you manage structure in an unstructured environment. How do you define IP when the content is user generated? Who owns a relationship when it is done under the corporate aegis, but is done through a personal Linkedin account? Where does personal end and professional begin? You can’t answer these questions till you have a Social Governance plan to map your corporate assets, understand what will be socially enabled, how you will manage the distribution process, measure and monitor it, and make sure that you can effectively communicate responsibilities to it.

Social CIOs are figuring out that they are just at the crawl stage in terms of socially enabling the organization. The good news is that they don’t have to do it alone, as a matter of fact, they aren’t alone, and they are in good company as most companies are still crawling. The real problem for Social CIOs is that many of their companies are starting to walk and run in social marketing. If they don’t get their social architectural planning established quickly, they may find the resulting unstructured chaos may become permanent.