Innovation, Transformation and Culture

1. Culture  Eats  Strategy   for  Lunch  Every  Time       September  13,  2012   Ayelet  Baron     ayelet27@gmail.com   h<p://twi<er.com/ayeletb   H<p://ayeletbaron.com      

4. We  Trust  Strangers   Consumer  ability  to  publish  content   SOCIAL  MEDIA   AGE   Consumers    dictate   MASS  MEDIA  AGE   PRE  MEDIA  AGE   Talk  face  to  face   Talk  face  to  face   Talk  to  shop  worker     Phone  call   Talk  to  shop  worker     Consult  a  professional   Readers  le<ers   Phone  in;  TV  /  Radio   Religious  InsOtuOons,  state,   monarchy  dictate  the  agenda   h"p://blogs.cisco.com/   Professional  media  dictate   Consumer  influence  channels    

5. THE RELATIONSHIP IS NO LONGER LINEAR Social  media:  MarkeOng  and  PR   Transparent   RelaOonship   Social  business:  People  and   business  processes     Agile   AuthenOc   http://www.flickr.com/photos/timothyschenck/

7. What  MoOvates  Us?     give me the give me the prestige of prestige of a new title a new title give me give me something something I want to I want to do do give me give me $10,000 $10,000

8. About Me Former  Chief  Strategist,  TransformaOon  and  InnovaOon   OrganizaOonal  Results   •  From  #4  to  #2  Country  in  Cisco   •  A  culture  of  firsts  and  innovaOon   •  Top  3  “Best  Company  to  Work  For”   in  Canada  over  the  last  3  years   •  300  new  R&D  jobs  in  Canada   facilitated  by  $25M  grant  from  the   Province  of  Ontario  –  just  the  start   •  Advisor  to  Federal,  Provincial  and   City  Governments   Key  Drivers  of  InnovaOon   Introduced     •  ExperimenOng  culture   •  “Connected  North”   •  VerOcal  Rainmakers   •  Reverse  Mentoring   •  Create  a  truly  “social  business”   •  Enable  the  “future  of  work”    

9. About Me

10. Community     A  group  of  people  with   unique  shared  values,   behaviors,  and  ar?facts     The  social  era  will  reward  organizaOons  that  understand   they  can  create  more  value  with  communiOes  than  they  can   on  their  own   −Nilofer  Merchant,  11  Rules  for  Crea?ng  Value  in  the  Social  Era    

11. Technology Keeps Getting Faster Source:  h"p://www.5me.com/5me/interac5ve/0,31813,2048601,00.html  

12. … But People Don’t Change as Fast Source:  h"p://pandasthumb.org/archives/2006/09/fun-­‐with-­‐homini-­‐1.html  

13. . . We  Are  On  A  Collision  Course   h"p://www.flickr.com/photos/alainbachellier/4327038011/  

14. People  Are  Now  The  Weakest  Link   h"p://www.flickr.com/photos/kyra__m/4681259456/  

15. What  Are  the  ImplicaOons  for  OrganizaOons?   Image  by  Dave  Gray,  The  Connected  Company  

16. Cost  of  Sales  is  Dropping         Cost  of   Content   CreaOon                         Cost  of   InformaOon   DistribuOon   Cost  of  Sales   h"p://www.flickr.com/photos/wisefly/2948707192/  

17. Margins  Are  Eroding         Cost  of   Discovery                         Cost  of   Market   Access   Margins   h"p://www.flickr.com/photos/mon_oeil/2803417816/  

18.                 Capture     of  tacit   knowledge                 Time  from   tacit  to   explicit   knowledge   Time  to   innova5on   InnovaOon  Cycle  Times  Are  Speeding  Up  

19. Overwhelmed  People  Shut  Down   Major   Change   Minor   Frame  of  Reference   TranslaOon  to   InternalizaOon   Confusion   PolarizaOon   Anxiety  

20. Play  A  Different  Game—One  Focused  On  Enduring   RelaOonships    

21. RelaOonships  as  CompeOOve  DifferenOator   Cost  Savings     §  Loyalty   §  Forgiveness   §  Time   §  Peer  support   §  Issue  reporOng   Revenue   §  Preference   §  PaOence   §  Advocacy     §  CompeOOve  lockout     §  AuthenOc  insights   These  quali?es  require  a  different  level  of  rela?onship  than  tradi?onal   transac?onal  rela?onships  

22. Social  Approaches  Enable  Scalable  RelaOonships   Encounter Friendship   Recogni5on   Development   Partnership   Awareness   Awareness   Resonance     Understanding  of   compa5bility   Piqued  interest   Acknowledgement   of  rela5onship   Contextual  trust   Contextual  loyalty   Contextual   advocacy     Forgiveness   Advocacy      Defense   Universal  trust   Universal  loyalty   Social  Media  (Content-­‐Based)  Engagement   Community  (RelaOonship-­‐Based)  Engagement   In-­‐Person  Engagement  

23. Top  5  Community  Uses   Cost-­‐EffecOve  Customer  Support    (Autodesk,  AT&T,  CA  Technologies,  Google)   1   Engineering  Ecosystems    (Red  Hat,  SAP,  Yahoo!,  Oracle,  eBay)   2   Cost-­‐EffecOve  Market  Development    (Ford,  Pepsi,  BarclaysCard,  EDR,  Zipcar)   3   Internal  Efficiency      (CSC,  BASF,  Nike)   InnovaOon    (Boston  Children’s,  Dell,  SAP)   4   5  

24. Measurable  But  Not  Immediate   Return Investment  

25. Community  Maturity  ModelTM  

26. CommuniOes  Mature  and  Change    Phase  2  –   Emergent   Community    Phase  3  – Community    Phase  4  – Networked    Phase  1  –  Strong   Hierarchy   Impact   Transform   Growth   Pull   Behavior   Change   Time  

27. Direct  Impact:     Measuring  Cost  and  Quality  Gains   Process  Element   Type  of  Community   Metric   Research  and  Discovery   Market  network,  communi5es  of   prac5ce,  customer  communi5es,   partner  communi5es   Quality   •  Be"er  inputs   •  Be"er  alignment  with  markets   ProducOvity   •   Faster  5me  to  answer/insight   ProducOvity   •  Reduced  mee5ngs   •  Micro-­‐mentoring   •  Alignment   •  Focus  on  issue  resolu5on   ProducOvity   •  Shared  ownership  of  analysis   •  Broad  buy-­‐in  of  issues  and  framing   •  Faster  awareness  and  buy-­‐in  for  analysis   ProducOvity   •  Ongoing  alignment  as  content  is  developed   •  Less  wasted  work   ProducOvity   •  Transparent  decision  making  process   •  Be"er  sensing  of  poten5al  responses     (crisis  management)   •  Shared  ownership  of  decision     ProducOvity   •  Alignment  and  shared  situa5onal  awareness   Quality   •  Be"er  understanding  of  reac5ons  (crisis  management)   Work  Status     Team  networks,  func5onal   communi5es   Data  Analysis   Team  networks,  func5onal   communi5es,  communi5es  of  prac5ce,   customer  communi5es,  partner   communi5es   Team  networks   Content  Development   Stakeholder  Review   Team  networks,  communi5es  of  peers/ prac5ces   Communica5on  of  Informa5on   and  Decisions   Func5onal  communi5es,  communi5es   of  prac5ce,  customer  communi5es,   partner  communi5es,  organiza5on-­‐ wide  networks  

28. Indirect  Impact:     Measuring  Revenue  and  Growth   Process  Element   Type  of  Community   Metric   Fla"en  Access  to  Knowledge   Communi5es  of  prac5ce,  func5onal   communi5es   Reduced  Time  to  Innovate   •  Quickly  gather  exis5ng  exper5se   •  Understand  accurate  state  of  development   Improved  Quality   •  Add  to  exis5ng  knowledge  rather  than  replica5ng   Reduced  Waste  and  DuplicaOon   •  Know  what  the  organiza5on  knows   InnovaOon  Quality  and  Demand   •  Ability  to  understand  issues  before  they  are  ar5culated   InnovaOon  Cycle  Time   •  Solve  problems  in  step  with  demand  forma5on,  not   sequen5ally     InnovaOon  Extension   •  Fills  roadmap  gaps   •  Reduces  investment  in  high-­‐risk  projects   Demand  GeneraOon   •  Develops  customer  advocates   Tacit  Opportuni5es   Market  network,  communi5es  of   prac5ce,  customer  communi5es,   partner  communi5es   Customer-­‐led  Crea5on  and  Co-­‐ Crea5on   Customer  communi5es,  partner   communi5es   Listening  and  Watching   Market  networks,  func5onal   communi5es,  communi5es  of  prac5ce,   customer  communi5es,  partner   communi5es   Alignment  and  Revenue  Growth   •  Align  products  and  communica5ons  with  exis5ng   conversa5on  and  language  which  improves  relevancy  and   adop5on    

29. SAP  Social  Strategy:  Driving  InnovaOon   S O C I A L I N S I G H T   S O C I A L I N N OVAT I O N   S O C I A L C O M M E RC E   S O C I A L I N T E L L I G E N C E   Use  the  wisdom  of  the   crowd  to  drive  higher   quality  soluOons  and   innovaOons  that  be<er   meet  customer  needs   and  therefore  have   greater  market  success   and  impact   Enable  customer   success  through  the   acOve  sharing  of   knowledge,  soluOons   and  best  pracOces  to   drive  excellence  and   innovaOon   Leverage  our  reach   and  influence  to  drive   speed  and  to     dramaOcally  increase   leads  and  revenues   both  organically  and   through  targeted   campaigns   Extract  intelligence  from   observable  customer   behaviors  and   conversaOons  to  equip   our  colleagues  with   insight  into  customer   hot  topics,  burning   issues  and  new   opportuniOes  

30. Digital,  Social  and  CommuniOes  at  SAP   •   SAP  Community  Network   –  2.5  million  members   –  3,000+  discussion  posts  per  day   –  9,200  acOve  bloggers   –  9.3  million  total  messages   •   SAP.com   –  2  million  unique  visitors  per  month   –  72  countries,  40  languages   •   SAP’s  presence  on  social  media   –   Over  1  million  friends  and  fans   •   Social  media  tools  and  governance     •   Events   –  SAP  TechEd,  SAP  Technology  Forum  

31. Factoids   of  companies   describe   themselves  as   fully  socially   networked     Amount  of  value  that  could   be  generated  annually  from   corporate  use  of  social   technologies   All  Rights  Reserved,  The  Community   Roundtable,  2012  

32. We  Want  to  Learn  from  ExecuOves   Linda  Y.  Cureton,  CIO  of  NASA     Sco<  Monty,  Head   of  Social  Media  Ford   Mark  Bertolini,  CEO  of  Aetna     Sandy  Carter,  SVP  IBM   Mark  Yolton,  SVP  SAP  

33. We  Need  to  Understand  the  ExecuOve  Journey                   TradiOonal   Piqued   Experimental   Social   Networked     Tes5ng  the   waters.  Not   suppor5ve  of   the  use  of  social   as  a  viable   solu5on  for   business.  Silos   and  not   connected  to   the  business   workflow.       Social  business  is   integrated  into   the  DNA  of   doing  business   with  all   cons5tuents.   Opera5ons  are   op5mized  for   collabora5on   and  innova5on.       Command  and   control.  Primary   modes    of   communica5on   are  in  person,   phone  &  email.   No  use  of  many-­‐ to-­‐many   communica5on   tools.         Commi"ed  to  a   few  social   ac5vi5es,  but   most   communica5on   s5ll  occurs   through   tradi5onal   channels.  Seeing   quick  wins.         Engagement   with  key   stakeholders  via   new  social   channels.   Beginning  to  see   correla5on   between  social   ac5vity  and   business  results.      

34. Social  business  cannot  be  fully   achieved  if  execu?ves  do  not   incorporate  social  approaches   in  the  business  –  in  what  they   say  and  what  they  do     People  not  tools  drive   innova?on    

35. 4 In Summary

36. Organizations that Go Up and Down Hold You Back 1

37. 2 Break down the silos We  compartmentalize  creaOvity   Try  to  control  it,  set  targets,  apply  rules   Make  it  the  domain  of  parOcular  job  Otles   Or  box  it  into  brainstorming  sessions    

38. Focus on Relationships 3

39. Community management is the bedrock capability in driving innovation 4

40. A  massive  opportunity  to  have  a  different   relaOonship  with  your  customers,  partners  and   employees   Co-­‐creaOon,  crowdsourcing,  crowdfunding   neilperkin.typepad.com/  

41. Contact  Me:  ayelet27@gmail.com