Demystifying the Challenge of Enterprise Social Media

By Oz Sultan, Social2B Digital Media Evangelist

Jeff Pulver (@Jeffpulver) recently mentioned that this year was his fifth anniversary of being in Social Media. This got me thinking, as five years is the typical run for any major technological boom over the past few decades.

In the 80’s we saw the PC rise to change the way we engaged with computing devices and managed our lives. In the 90s, the Dot Com boom gave rise to a vast number of internet technologies that have since been incorporated into products and offerings of major technology brands.  Oracle became more than a database and a few financial service offerings growing to encompass corporate portals, analytics and recently even Hardware. Microsoft’s applications are available in the cloud. E-commerce, once a multi-million dollar endeavor for corporations, has been democratized by Open source technologies.

All of these things happened in five-year spans.

Today, we’ve seen Facebook become a platform that rivals the Google Empire.  Twitter and Yammer are allowing for communication and information sharing in ways that couldn’t have been envisioned a decade ago. Brands have prospered and startups have become household names. However, there is one market segment that has yet to benefit from this change – the Enterprise.

So what is the Enterprise?

The enterprise refers to Fortune 1000 companies that comprise the majority of large employers globally. Enterprise companies operate a myriad of g systems that are comprised of technology that spans a fifty-year lifecycle. Companies that operate multi-million and often billion and trillion dollar operations on technology where new technology often becomes siloed before it’s value can be leveraged in a more comprehensive way.

Enterprise Companies have also made large investments in content, operations management and commerce systems that don’t easily integrate with social media technologies.  Lastly, the concept of user profiles is very similar to Marshall Sponder’s allusion to “ultraviolet data”. In the Enterprise, there’s unseen or “ultraviolet data” as well as multiple user profiles in multiple repositories across different corporate divisions (think CRM, CSR, Marketing, Corporate Communications and Operations).

It’s all about data.

In a world of Social data, Ultraviolet data and complex corporate repositories, we have to think differently.

Enterprises refer to the management of multiple repositories as MDM or Master Data Management. Social data covers to behavioral, influencer, sentiment and keywords. Ultraviolet data is the data “you could be catching, but aren’t” in both MDM and Social.

The chart above depicts the use of social and MDM data across departments within the Enterprise.

Combined this data could be better used to solve complex business problems; better market companies; eliminate gross inefficiency while driving innovation.

So what to do?

Complex business and data problems need what’s culturally acceptable for a large corporation while highlighting the value-add that Social Media presents. This can be done by employing an MDM + Social roadmap.

The Roadmap Basics

• Educate the Executive: Corporate executives have seen their internal data for years. The value of Social Media data is a bit more nebulous.  Explanation and clarification of it’s utility to improve projects or enhance marketing efforts should be focused on.
• Identify Executive Champions: Without support from the C-level, most projects are destined for budget cuts or failure. Nip this one in the bud.
• Develop a Data Champion: It’s not all about Social Media data. Understanding MDM data will help highlight Ultraviolet data and allow for clearer mapping and use of Social Data
• Commission a Social Readiness Audit: Your company may have survived the Dot Com age, but what systems need upgrading? What needs done to map data from AS/400 and Database repositories to Omniture, Social and behavioral data? For banks and retailers – do you have systems that contain profiles that should be included? Are you looking at the customer (B2B or B2C) holistically?
• Develop Data Policies and Guidelines: Know how you’re going to use the data and where it may cause kinks along the way.
• Following the Audit, Evaluate and Plan: Social Media data and Social Media applications shouldn’t be an afterthought. Evaluate critical business projects for areas where Social and Social data could be huge value-adds.
• Manage Expectations and repeat the process quarterly: Change isn’t an overnight process. Inculcating Social and leveraging Social data could be a multi-year process. Just know that if these guidelines are followed, you’ll be in a good position to enhance the business in a way that adds to the bottom line.

By Ytzik Aranov, Managing Partner, Social2B

For those of you who’ve been through business school lectures on Michael Porter’s Value Chain Analysis this doesn’t come as news to you.  But when asked to implement social media practices, policies, platforms, tools, etc., in today’s corporation or enterprise, we throw out all of what we learned that makes the enterprise tick and elect to “surf” it through!

Attention – and I quote:

“Social Media (in the Enterprise) is a Business Process, not a channel, department, or vertical silo”.

End quote.

You heard it here!  Think about it.  Social media touches upon every department, every business process, every channel, every prospect / customer interaction, every investor, every supplier, in short, it touches the entire organization.

In today’s marketplace, social media and an enterprise’s’ online brand architecture and social media footprint is arguably, the most important business process affecting the entire Enterprise Value Chain.  Poor implementation of a solid online & social media platform strategy & tactics directly impacts a company’s ability to market, sell and extend its brand reach, globally.  Failure to effectively implement an integrated social media strategy & tactics across the entire Value Chain could potentially lead to lower revenues (read, shareholder value), slippage in market share, increased financial exposure, risk, and more

One of the most effective measurement techniques to measure enterprise social media effectiveness, both pre- and post-implementation, is to diagnose the “Social Media Maturity Index” (see graphic), which establishes a recognizable industry-specific metric with which to assess the social media value, influence, depth, and footprint of an enterprise’s value chain components – combining both departments and business processes.  Moreover, the social media maturity Index in its very essence is a barometer of how the value chain is capable of moving at the speed of (digital & social) business today.

So, when looking for added revenue stream, cost savings, internal value, constraints, and external interfaces with the world, then social media maturity acutely identifies the lack of, or plethora, of business excellence in sync with today’s pace of commerce.

OK, skeptics, How do we drill down into the Enterprise Value Chain and establish Social Value Chain Maturity & Scalability? Let’s break it apart into pieces.  Look at the following chart that defines touch points throughout selected departments throughout the enterprise, and their social media impacts.

The same goes for every other vertical silo, and, every business processes.  Each and every business process running across – horizontally – the enterprise has multiple social media touch points.

Social media maturity, coupled with an integrated online, SEO, SEM and Social Community Marketing strategy replaces one-way communication with dialogue. Participation by customers, suppliers, employees, the industry, the market, etc., and feedback from them all (!), must be listened to because it has the power to make or break your enterprise or enterprise function.  Social media tools allow us to observe the conversations, measure, monitor, track and quantify the online & social media reach and influence. It allows us to assess and re-assess the correct strategy & tactics from the bottom up to increase revenues, open new markets, capture greater market share, lower costs and in general, improve the bottom-line ROI.

So, what about ROI?

If done right — and you’ll have to come back for a later post on this subject — the Social Media Maturity Index is then mapped by those of you honored to be the “Keeper of the Social Keys” in the enterprise, to any existing enterprise Balanced Scorecard KPIs (Key Performance Indicators) in use by the Executive suite (read CFO), in order to assess true ROI, Economic Value & shareholder value. And, by the way, to justify shifting dollars from traditional advertising / marketing into your online / social media marketing budget.

In Summary:

The value in executing a Social Media Maturity Index exercise, as the very first step prior to embarking on that “Journey to the Edge of the Social World”, includes, but by no means is limited to:

• Creating a more aligned and more cohesive internal organization (whether vertical silo or horizontal business process) involved with social media and its offshoots;
• Developing a cross-enterprise social media policy – let me guess, you’re thinking about it, while hundreds of employees across the value chain are uncontrollably blogging & Tweeting about the company without any filters – to manage the social media impact;
• Channeling the endless volume of Content across the enterprise that is not “curated”, re-purposed or managed effectively throughout the enterprise, thereby losing SEO and ranking power;
• Implementing a solid, instantaneous, Reputation Management process – what’s that? – more on that in another post …;
• Hiring – training – more targeted and experienced human resources to effectively channel the enterprise’s social media assets and better utilization of current ones;
• Mapping out a better-defined path to enterprise success by assessing the maturity of the organization and its readiness to embrace a new channel (SM) affecting the entire value chain – from customer service to distributor relations to marketing;
• Establishing a quantifiable and actionable ROI – well, we know what that means (Return-On-Ignoring, Return-on-I (me!), etc. – in short, how we justify the extra capital needed to implement targeted social media campaigns to accelerate products or services sales.

The Social Media Maturity Index provides an immediate snapshot of where every Value Chain component of the organization is today is with respect to social media & market acceleration and what can be expected in terms of performance based on the overall social media maturity of the enterprise. It also maps out where each Value Chain component is lacking and what can be done to accelerate it and better sync it to the other Value Chain components thereby creating a powerhouse enterprise that socially rocks!

By Alex Romanovich October 13th, 2009 Alex Romanovich is the Founder and CMO of Social2B ===== According to ENGAGEMENTdb’s recent “Ranking the Top 100 Global Brands” report on how deeply global brands are engaged in Social Marketing, big financial companies are not as much socially engaged as media, retail or technology companies of the same ranking. However, it does not mean that a financial brand cannot “socialize” itself. On the contrary, it shows that the financial services industry, often too closed, hindered by government regulations and by somewhat “conservative culture”, is getting more and more open to “socialization”. According to the same ENGAGEMENTdb’s report, even such giant conglomerates as Visa, ING, American Express, UBS, JP Morgan are, if not very active, are still quite responsive to the today’s demand of being social. Being most commonly engaged in six or fewer social channels, and having below-average engagement scores (as estimated by ENGAGEMENTdb), they have already started integrating social media into their marketing and customer communication strategy. Today many financial organizations (big and small) are launching B2B and B2C based social media initiatives depending on whether they want to attract interest and business from other financial institutions, or simply generate demand with consumers. In both cases social marketing can be extremely successful, provided the right approach has been chosen. With the help of Social Marketing B2C brands can solve such problems as:

• establishing newly found trust amongst a skeptical consumers base;
• making the right loan choices;
• allowing consumers to understand the perspective of the institutions;
• instilling fiscal responsibility and smarter spending habits;
• making stronger investment decisions;
• empowering consumers with tools for managing their assets;
• building community around common interests & brand affinities;
• understanding the broader context of financial culture and global market parity

For B2B brands this is a good opportunity to engage potential prospects, generate demand and leads by augmenting their marketing strategies with more interactive and conversational elements, allowing other businesses to listen, observe, engage, and participate. All in all, the art of being “social to the point” has in its basis deep understanding of the industry of the brand that should be promoted. Of course, a variety of means and solutions can be used within a Social Marketing campaign. But the challenge is to adjust those solutions to a particular brand. Trying to estimate opportunities of any social engagement in the particular industry requires  a necessity of a solid industry analysis. With correctly chosen and applied Social Marketing solutions, the financial services industry can engage in a powerful and proven way on both B2B and B2C levels. This becomes evident if we take a look at the recent success stories from Wells Fargo, H&R Block, Ernst & Young, Capital One, SmartyPig, American Express, Credit Mutuel, PENSCO, Equity Trust, Sterling Trust and some other financial brands, which have used social marketing incredibly well to not only create engagement but activate purchase intent. Wells Fargo Wells Fargo & Company, a diversified financial services company with operations around the world, providing retail, commercial and corporate banking services, sustains a high level of deep social engagement across multiple social media channels (including Facebook, Twitter, LinkedIn etc). However, the greatest case study to date is of what Wells Fargo has done with their blogs. They have 5 (!) different blogs, each designed for a certain category of readers – potential customers and businesses, existing clients, and just people. But the crown jewel of Well Fargo’s blogging activities is perhaps a virtual world called “Stagescoach Island Community”, a kind of a branded community which lets members learn and experience money management in the way of an interactive game. The blogs stand out for their live conversation and there are always people from inside and from outside to react to the conversation. H&R Block H&R Block, an American tax preparation company with over 22 million customers worldwide, has done quite a bit with blogs, virtual worlds, Facebook, and Social Media programs. However, they did most of ‘Twittering’ during tax time, when they quite successfully engaged in an online dialog by first monitoring keywords, and directly responding to members. Twitter during tax time was their most successfully implemented social media solution, because it was just to the point. It helped increase the company’s popularity, attract more customers as well as sustain trust. Ernst & Young Ernst & Young, one of the largest global providers of accounting services and one of the Big Four auditors, among marketing goals, also had definite objectives targeted at human resources. They engaged in social media to seek out new hires fresh out of college. For this purpose, they created a sponsored Facebook group where they have online dialogs with graduating students and even start the interview process online. This is a pretty smart solution, because Facebook is the right source to reach graduates and find appropriate candidates. So, in their case, Social Marketing is a good way to boost the company’s reputation as employer and find work force. SmartyPig SmartyPig is another story of big success, though different from the mentioned above examples. SmartyPig does not promote services; it promotes a product – free online banking application which helps users save money for particular goals. It seems that an online application cannot be more social than SmartyPig.  Users can invite friends and family to be a part of their saving process. Built on a Web 2.0 platform, SmartyPig impressively utilizes Facebook, widgets, social networking applications (including videos), Twitter and a specially designed community-powered support site.  Launched in 2008, Smarty Pig already has users in all 50 US states, over 4000 followers on Twitter and over 1900 fans in Facebook. Exactly for the reason that SmartyPig is so interactive, so informal and so engaging, it is such a big success. Each financial company, either big or small, which wants to go social, needs a social marketing campaign tailored to their particular brand. Whether you need to create a well branded community, or launch a series of blogs, or be actively engaged in social networking and present your brand in discussion forums – all efforts are distinct and individual. There is no way for a standard approach – however, there is always a necessity for a solid Social Marketing analysis and accurately selected marketing solutions.