The Social Business Imperative

Michael Brenner

The Social Business ImperativeWhat is the value of a social business? How do we become one? Can you create one? Or is it more about culture, motivation and the enablement of social forces already in play in today’s workforce?

These are questions that are not just being asked by marketers but by CEOs, business leaders and entrepreneurs around the world. We are rapidly moving beyond the question of why we need to become a social business to how to become a social business.  And how to maximize the value and the innovation that can result.

So stick with me while we take a brief journey. I’ll start with the market forces that are driving the realization that our businesses need to change or they will die. That we truly have a social business imperative.

We’ll talk about why this is important for CEOs and the amazing opportunity this holds for marketers who can seize the moment. Finally, we’ll talk about some simple steps to consider to achieve the goal of becoming a social business.

The Digital, Social, Mobile Revolution

CEOs get social 150x150 The Social Business ImperativeThe world has changed rapidly in just a few short years. The rise of the internet and then very quickly social connectivity and mobile accessibility have led to an amazing consumer revolution unlike anything before. And traditional organizational models have not been able to keep up. Not even close.

survey by IBM of more than 1,700 CEOs earlier this year showed that only 16% of CEOs are active on social but projected that 57% of them expect to be in the next 3-5 years. Why the huge shift?  Because CEOs are seeing the opportunity to connect their suppliers, customers and employees using social technology.

According to Mark Fidelman on Forbes, the study reveals that CEOs are working hard to create a culture of “openness, transparency and employee empowerment.”

more recent survey by social analytics firm Domo reveals that only 7% of CEOs are on Facebook, 4% on Twitter and in total, more than 70% have no social presence at all. Domo’s CEO Josh James believes that these CEOs are hurting their business results and “doing shareholders a massive disservice.

Marketing Is Dead!

As Bill Lee mentions in this widely shared Harvard Business Review article, CEOs are starting to see thattraditional marketing is dead. And he continues to report that CEOs have lost patience with marketing.

Bill cites a 2011 study of 600 CEOs that report that nearly three-quarters of CEOs feel that their CMO “lacks business credibility” (73%) and are tired of being asked for money without a forecasted business impact (72%).

And CMOs? Well they seem to agree! 71% of CMOs admitted to feeling unprepared for the challenges of today’s business environment in a separate IBM survey.

“Social Media Sanitation”

In a recent talk, Altimeter analyst Jeremiah Owyang also painted a picture that the world has changed. And that we need “open leaders” who can manage reactionary internal pressures and the increasing content demands of today’s information-saturated world.

He predicts that companies grounded in social media sanitation simply won’t scale. They will be stuck in cycles of reactionary pressures.

I agree. I also believe marketing leaders who fail to lead their companies on the path to scalable social business practices will continue to see their credibility threatened, their budgets shrink and their role devolve to one of managing a few outsourced vendor partners who coordinate events, manage the website and blast some emails.

Have I scared you enough yet to see the need to change? Well don’t take my word for it. Follow all the references included above and think long and hard about the marketing leadership gap and the role of marketing in your organization.

The Social Business Imperative

There is only once conclusion: we need to become social businesses. We need to accept the imperative to transform our organizations into an open, social and engaged community of active content producers.

Marketing has an opportunity to lead this change. We can drive social, content and employee empowerment strategies to move beyond social guidelines and governance to social activation and encouragement.  We need to help our organization build an army of brand ambassadors with strong personal brands.

The Social Business Model

I have to admit to being more than a little envious of the approach taken by our friends at IBM. Mark Fidelman gushes about them as the model of social business today as well as in the future. After reading those testimonials it’s easy to see why.

At a recent event, I heard Kevin Green talk about how he helped IBM model social business types. Then they used those segments (examples include “creators, listeners, responders“) to develop a “social eminence” program.

They now have 4,000 empowered ambassadors (who wouldn’t want that?) across the organization who are constantly seeking to make social connections with content and that can be mobilized at a moment’s notice.

They claim it is “the most powerful marketing tool they have” as those conversations are driving 3 times the conversions of more traditional marketing efforts.

What is the path to a social business?

  • I think we need a solid social strategy that empowers all employees (not just in marketing) to become strong personal brands and ambassadors for our company.
  • We need an effective content strategy to put the knowledge, passion and experience of our employees to work to answering our customers’ information needs.
  • We need new skills and people to drive social activation across all layers of the organization.
  • We need social leaders at the top and throughout our organizations that drive change from our traditional company culture to one of openness, transparency and engagement.

What do you see as the main barriers to social business in your organization? Let me know what you think in the comments below and follow the conversation on Twitter,  LinkedInFacebook or Google+.
Photo Source


About Michael Brenner

Michael Brenner is the CEO of Marketing Insider Group, Head of Strategy at NewsCred, and the former VP of Global Content Marketing at SAP. Michael is also the co-author of the upcoming book The Content Formula, a contributor to leading publications like The Economist, Inc Magazine, The Guardian, and Forbes and a frequent speaker at industry events covering topics such as marketing strategy, social business, content marketing, digital marketing, social media and personal branding.  Follow Michael on Twitter (@BrennerMichael)LinkedInFacebook and Google+ and Subscribe to the Marketing Insider.

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13 Scary Statistics On Employee Engagement [INFOGRAPHIC]

Jacob Shriar

There is a serious problem with the way we work.

Most employees are disengaged and not passionate about the work they do. This is costing companies a ton of money in lost productivity, absenteeism, and turnover. It’s also harmful to employees, because they’re more stressed out than ever.

The thing that bothers me the most about it, is that it’s all so easy to fix. I can’t figure out why managers aren’t more proactive about this. Besides the human element of caring for our employees, it’s costing them money, so they should care more about fixing it. Something as simple as saying thank you to your employees can have a huge effect on their engagement, not to mention it’s good for your level of happiness.

The infographic that we put together has some pretty shocking statistics in it, but there are a few common themes. Employees feel overworked, overwhelmed, and they don’t like what they do. Companies are noticing it, with 75% of them saying they can’t attract the right talent, and 83% of them feeling that their employer brand isn’t compelling. Companies that want to fix this need to be smart, and patient. This doesn’t happen overnight, but like I mentioned, it’s easy to do. Being patient might be the hardest thing for companies, and I understand how frustrating it can be not to see results right away, but it’s important that you invest in this, because the ROI of employee engagement is huge.

Here are 4 simple (and free) things you can do to get that passion back into employees. These are all based on research from Deloitte.

1.  Encourage side projects

Employees feel overworked and underappreciated, so as leaders, we need to stop overloading them to the point where they can’t handle the workload. Let them explore their own passions and interests, and work on side projects. Ideally, they wouldn’t have to be related to the company, but if you’re worried about them wasting time, you can set that boundary that it has to be related to the company. What this does, is give them autonomy, and let them improve on their skills (mastery), two of the biggest motivators for work.

Employees feel overworked and underappreciated, so as leaders, we need to stop overloading them to the point where they can’t handle the workload.

2.  Encourage workers to engage with customers

At Wistia, a video hosting company, they make everyone in the company do customer support during their onboarding, and they often rotate people into customer support. When I asked Chris, their CEO, why they do this, he mentioned to me that it’s so every single person in the company understands how their customers are using their product. What pains they’re having, what they like about it, it gets everyone on the same page. It keeps all employees in the loop, and can really motivate you to work when you’re talking directly with customers.

3.  Encourage workers to work cross-functionally

Both Apple and Google have created common areas in their offices, specifically and strategically located, so that different workers that don’t normally interact with each other can have a chance to chat.

This isn’t a coincidence. It’s meant for that collaborative learning, and building those relationships with your colleagues.

4.  Encourage networking in their industry

This is similar to number 2 on the list, but it’s important for employees to grow and learn more about what they do. It helps them build that passion for their industry. It’s important to go to networking events, and encourage your employees to participate in these things. Websites like Eventbrite or Meetup have lots of great resources, and most of the events on there are free.

13 Disturbing Facts About Employee Engagement [Infographic]

What do you do to increase employee engagement? Let me know your thoughts in the comments!

Did you like today’s post? If so you’ll love our frequent newsletter! Sign up here and receive The Switch and Shift Change Playbook, by Shawn Murphy, as our thanks to you!

This infographic was crafted with love by Officevibe, the employee survey tool that helps companies improve their corporate wellness, and have a better organizational culture.


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Supply Chain Fraud: The Threat from Within

Lindsey LaManna

Supply chain fraud – whether perpetrated by suppliers, subcontractors, employees, or some combination of those – can take many forms. Among the most common are:

  • Falsified labor
  • Inflated bills or expense accounts
  • Bribery and corruption
  • Phantom vendor accounts or invoices
  • Bid rigging
  • Grey markets (counterfeit or knockoff products)
  • Failure to meet specifications (resulting in substandard or dangerous goods)
  • Unauthorized disbursements

LSAP_Smart Supply Chains_graphics_briefook inside

Perhaps the most damaging sources of supply chain fraud are internal, especially collusion between an employee and a supplier. Such partnerships help fraudsters evade independent checks and other controls, enabling them to steal larger amounts. The median loss from fraud committed
by a single thief was US$80,000, according to the Association of Certified Fraud Examiners (ACFE).

Costs increase along with the number of perpetrators involved. Fraud involving two thieves had a median loss of US$200,000; fraud involving three people had a median loss of US$355,000; and fraud with four or more had a median loss of more than US$500,000, according to ACFE.

Build a culture to fight fraud

The most effective method to fight internal supply chain theft is to create a culture dedicated to fighting it. Here are a few ways to do it:

  • Make sure the board and C-level executives understand the critical nature of the supply chain and the risk of fraud throughout the procurement lifecycle.
  • Market the organization’s supply chain policies internally and among contractors.
  • Institute policies that prohibit conflicts of interest, and cross-check employee and supplier data to uncover potential conflicts.
  • Define the rules for accepting gifts from suppliers and insist that all gifts be documented.
  • Require two employees to sign off on any proposed changes to suppliers.
  • Watch for staff defections to suppliers, and pay close attention to any supplier that has recently poached an employee.

About Lindsey LaManna

Lindsey LaManna is Social and Reporting Manager for the Digitalist Magazine by SAP Global Marketing. Follow @LindseyLaManna on Twitter, on LinkedIn or Google+.


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Transform Or Die: What Will You Do In The Digital Economy?

Scott Feldman and Puneet Suppal

By now, most executives are keenly aware that the digital economy can be either an opportunity or a threat. The question is not whether they should engage their business in it. Rather, it’s how to unleash the power of digital technology while maintaining a healthy business, leveraging existing IT investments, and innovating without disrupting themselves.

Yet most of those executives are shying away Businesspeople in a Meeting --- Image by © Monalyn Gracia/Corbisfrom such a challenge. According to a recent study by MIT Sloan and Capgemini, only 15% of CEOs are executing a digital strategy, even though 90% agree that the digital economy will impact their industry. As these businesses ignore this reality, early adopters of digital transformation are achieving 9% higher revenue creation, 26% greater impact on profitability, and 12% more market valuation.

Why aren’t more leaders willing to transform their business and seize the opportunity of our hyperconnected world? The answer is as simple as human nature. Innately, humans are uncomfortable with the notion of change. We even find comfort in stability and predictability. Unfortunately, the digital economy is none of these – it’s fast and always evolving.

Digital transformation is no longer an option – it’s the imperative

At this moment, we are witnessing an explosion of connections, data, and innovations. And even though this hyperconnectivity has changed the game, customers are radically changing the rules – demanding simple, seamless, and personalized experiences at every touch point.

Billions of people are using social and digital communities to provide services, share insights, and engage in commerce. All the while, new channels for engaging with customers are created, and new ways for making better use of resources are emerging. It is these communities that allow companies to not only give customers what they want, but also align efforts across the business network to maximize value potential.

To seize the opportunities ahead, businesses must go beyond sensors, Big Data, analytics, and social media. More important, they need to reinvent themselves in a manner that is compatible with an increasingly digital world and its inhabitants (a.k.a. your consumers).

Here are a few companies that understand the importance of digital transformation – and are reaping the rewards:

  1. Under Armour:  No longer is this widely popular athletic brand just selling shoes and apparel. They are connecting 38 million people on a digital platform. By focusing on this services side of the business, Under Armour is poised to become a lifestyle advisor and health consultant, using his product side as the enabler.
  1. Port of Hamburg: Europe’s second-largest port is keeping carrier trucks and ships productive around the clock. By fusing facility, weather, and traffic conditions with vehicle availability and shipment schedules, the Port increased container handling capacity by 178% without expanding its physical space.
  1. Haier Asia: This top-ranking multinational consumer electronics and home appliances company decided to disrupt itself before someone else did. The company used a two-prong approach to digital transformation to create a service-based model to seize the potential of changing consumer behaviors and accelerate product development. 
  1. Uber: This startup darling is more than just a taxi service. It is transforming how urban logistics operates through a technology trifecta: Big Data, cloud, and mobile.
  1. American Society of Clinical Oncologists (ASCO): Even nonprofits can benefit from digital transformation. ASCO is transforming care for cancer patients worldwide by consolidating patient information with its CancerLinQ. By unlocking knowledge and value from the 97% of cancer patients who are not involved in clinical trials, healthcare providers can drive better, more data-driven decision making and outcomes.

It’s time to take action 

During the SAP Executive Technology Summit at SAP TechEd on October 19–20, an elite group of CIOs, CTOs, and corporate executives will gather to discuss the challenges of digital transformation and how they can solve them. With the freedom of open, candid, and interactive discussions led by SAP Board Members and senior technology leadership, delegates will exchange ideas on how to get on the right path while leveraging their existing technology infrastructure.

Stay tuned for exclusive insights from this invitation-only event in our next blog!
Scott Feldman is Global Head of the SAP HANA Customer Community at SAP. Connect with him on Twitter @sfeldman0.

Puneet Suppal drives Solution Strategy and Adoption (Customer Innovation & IoT) at SAP Labs. Connect with him on Twitter @puneetsuppal.



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Ambient Intelligence: What's Next for The Internet of Things?

Dan Wellers

Imagine that your home security system lets you know when your kids get home from school. As they’re grabbing an afternoon snack, your kitchen takes inventory and sends a shopping list to your local supermarket. There, robots prepare the goods and pack them for home delivery into an autonomous vehicle – or a drone. Meanwhile, your smart watch, connected to a system that senses and analyzes real-time health indicators, alerts you to a suggested dinner menu it just created based on your family’s nutritional needs and ingredients available in your pantry. If you signal your approval, it offers to warm the oven before you get home from work.

This scenario isn’t as futuristic as you might think. In fact, what Gartner calls “the device mesh” is the logical evolution of the Internet of Things. All around us and always on, it will be both ubiquitous and subtle — ambient intelligence.

We’ll do truly different things, instead of just doing things differently. Today’s processes and problems are only a small subset of the many, many scenarios possible when practically everything is instrumented, interconnected, and intelligent.

We’re also going to need to come up with new ways of interacting with the technology and the infrastructure that supports it. Instead of typing on a keyboard or swiping a touchscreen, we’ll be surrounded by various interfaces that capture input automatically, almost incidentally. It will be a fundamental paradigm shift in the way we think of “computing,” and possibly whether we think about computing at all.

The Internet of not-things

The foundation will be a digital infrastructure that responds to its surroundings and the people in it, whether that means ubiquitous communications, ubiquitous entertainment, or ubiquitous opportunities for commerce. This infrastructure will be so seamless that rather than interacting with discrete objects, people will simply interact with their environment through deliberate voice and gesture — or cues like respiration and body temperature that will trigger the environment to respond.

Once such an infrastructure is in place, the possibilities for innovation explode. The power of Moore’s Law is now amplified by Metcalfe’s Law, which says that a network’s value is equal to the square of the number of participants in it. All these Internet-connected “things” — the sensors, devices, actuators, drones, vehicles, products, etc.  — will be able to react automatically, seeing, analyzing, and combining to create value in as yet unimaginable ways.  The individual “things” themselves will meld into a background of ambient connectedness and responsiveness.

The path is clearly marked

Think of the trends we’ve seen emerge in recent years:

  • Sensors and actuators, including implantables and wearables, that let us capture more data and impressions from more objects in more places, and that affect the environment around them.
  • Ubiquitous computing and hyperconnectivity, which exponentially increase the flow of data between people and devices and among devices themselves.
  • Nanotechnology and nanomaterials, which let us build ever more complex devices at microscopic scale.
  • Artificial intelligence, in which algorithms become increasingly capable of making decisions based on past performance and desired results.
  • Vision as an interface to participate in and control augmented and virtual reality
  • Blockchain technology, which makes all kinds of digital transactions secure, verifiable, and potentially automatic.

As these emerging technologies become more powerful and sophisticated, they will increasingly overlap. For example, the distinctions between drones, autonomous vehicles, and robotics are already blurring. This convergence, which multiplies the strengths of each technology, makes ambient intelligence not just desirable but inevitable.

Early signposts on the way

We’re edging into the territory of ambient intelligence today. Increasingly complex sensors, systems architectures, and software can gather, store, manage, and analyze vastly more data in far less time with much greater sophistication.

Home automation is accelerating, allowing people to program lighting, air conditioning, audio and video, security systems, appliances, and other complex devices and then let them run more or less independently. Drones, robots, and autonomous vehicles can gather, generate, and navigate by data from locations human beings can’t or don’t access. Entire urban areas like Barcelona and Singapore are aiming to become “smart cities,” with initiatives already underway to automate the management of services like parking, trash collection, and traffic lights.

Our homes, vehicles, and communities may not be entirely self-maintaining yet, but it’s possible to set parameters within which significant systems operate more or less on their own. Eventually, these systems will become proficient enough at pattern matching that they’ll be able to learn from each other. That’s when we’ll hit the knee of the exponential growth curve.

Where are we heading?

Experts predict that, by 2022, 1 trillion networked sensors will be embedded in the world around us, with up to 45 trillion in 20 years. With this many sources of data for all manner of purposes, systems will be able to arrive at fast, accurate decisions about nearly everything. And they’ll be able to act on those things at the slightest prompting, or with little to no action on your part at all.

Ambient intelligence could transform cities through dynamic routing and signage for both drivers and pedestrians. It could manage mass transit for optimal efficiency based on real-time conditions. It could monitor environmental conditions and mitigate potential hotspots proactively, predict the need for government services and make sure those services are delivered efficiently, spot opportunities to streamline the supply chain and put them into effect automatically.

Nanotechnology in your clothing could send environmental data to your smart phone, or charge it from electricity generated as you walk. But why carry a phone when any glass surface, from your bathroom mirror to your kitchen window, could become an interactive interface for checking your calendar, answering email, watching videos, and anything else we do today on our phones and tablets? For that matter, why carry a phone when ambient connectivity will let us simply speak to each other across a distance without devices?

How to get there

In Tech Trends 2015, Deloitte Consulting outlines four capabilities required for ambient computing:

  1. Integrating information flow between varying types of devices from a wide range of global manufacturers with proprietary data and technologies
  2. Performing analytics and management of the physical objects and low-level events to detect signals and predict impact
  3. Orchestrating those signals and objects to fulfill complex events or end-to-end business processes
  4. Securing and monitoring the entire system of devices, connectivity, and information exchange

These technical challenges are daunting, but doable.

Of course, businesses and governments need to consider the ramifications of systems that can sense, reason, act, and interact for us. We need to solve the trust and security issues inherent in a future world where we’re constantly surrounded by connectivity and information. We need to consider what happens when tasks currently performed by humans can be automated into near invisibility. And we need to think about what it means to be human when ambient intelligence can satisfy our wants and needs before we express them, or before we even know that we have them.

There are incredible upsides to such a future, but there are also drawbacks. Let’s make sure we go there with our eyes wide open, and plan for the outcomes we want.

Download the Executive Brief: Enveloped by Ambient Intelligence

Ambient Intelligence thumb

To learn more about how exponential technology will affect business and life, see The Digitalist’s Digital Futures.


About Dan Wellers

Dan Wellers leads Digital Futures for SAP Marketing Strategy.

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