KM World Session Notes: Jeremiah Owyang - Architecting a Connected Enterprise
Here is another in my notes from the 2011 KM World. I attended the opening keynote, Architecting a Connected Enterprise, by Jeremiah Owyang, Industry Analyst - Altimeter Group. Here is the session description.
“Owyang, a leading web strategist and industry analyst, discusses collaborative enterprises of the future. He provides tips for building networked enterprises that share and apply knowledge for decision-making, innovation, customer satisfaction, business success, and a stronger bottom line. Owyang illustrates with real-world examples and is sure to spark insights for you to build a high performing networked enterprise that connects employees, customers, prospects and partners.”
Jeremiah began by saying he wanted to expand our understanding of knowledge management. The proper end result is knowledge action. I like this as I never liked the management part of KM and action is a better objective. He said that while you want to have action you do not want to forget the knowledge part. He said that some companies have done this with bad results. It has resulted in bad PR. He gave the famous United Airlines breaks guitars example when the airline did not respond. Jeremy said they did some research related to this concept to see what when wrong in their social media crisis.
He found that these social media crisis are on the rise as companies have jumped into social on the Web but failed to properly prepare for it. Most of these crises could have been avoided if the company had prepared. This affected consumer good companies the most, especially those in the press. The crises have emerged on also every social media channel.
The number one issue was exposing poor customer experience. The companies that suffered lack policies for social media, training, focused staff, and inability to specify how to respond. He aid that the internal use of social media needs to coordinate with the external use
He went through five models on social media inside and outside. The first was decentralized with no sharing. The second is centralized where one group exercises top down control, often it is corporate communication. The third is hub and spoke. There is a cross-functional team with experts deploying on behave of business units. Number four is multiple hub and spoke. Different business units deploy but there is a central social media center of excellence. The last one is very rare and is called holistic. In this case the majority of the employee base is using the tools inside, as well as outside the enterprise.
He next presented a social media maturity model with the holistic approach at the top. The model is similar to Maslow’s hierarchy. You have to go through the stages starting at the bottom. The bottom line is called foundation requires clear objectives that are aligned with business goals. He gave IBM as an example of clear goals for using social media inside and outside the company. Intel has made their social media guidelines that they made public. Cisco also has clear FAQs on social media use to educate their employees. However, he found that most companies have not implemented clear guidelines for social media use within the enterprise, as well as outside.
Dell has a social media program SMaC – social media for communities. There is a social media team with 18 people that have trained over 1500 employees in person in a few weeks. They host events to train employees around the global. They train employees on social media before letting them use these tools.
Only 18% of companies had a social media certification program. Dell was one of them. The DoD has a social media hub. Companies that are successful do not block employees whose job is to connect with customers from using social media.
The second level in the maturity model is safety. This requires a dedicated team with workflow and crisis response methods. It includes a strategist, a manger for coordination across functions. people to work with customers, analysts, educators, and a liaison to work with business units to gather requirements. They should have a triage in place on how to respond to potential social media problems inside or outside the enterprise. He went over an example triage for the US Air Force that was sent to all officers to be able to respond in real time. Staples has a team of managers to respond to social media issues. Some companies have dedicated listening centers. Gatorade has one of these to listen to what people are saying about their products online.
The third level is formation. Companies at this level have asset inventory, best practices, and a center of excellence. The Four Season hotel chain has an inventory with a Twitter account for each hotel. Panasonic also has a range of accounts. Cisco also has a its inventory on its web site, as does Panasonic. Advanced companies are using this – term – Social Media Center of Excellence that has central responsibilities for tools and how they are being used. eBay has this, as does Adobe.
The fourth level is enablement. Now you can scale with empowerment, cross-learning, and measurement. Business units are now enabled to work on their own. The IBM focus is not to constrain but to empower. Cisco empowers employees on how to use social media internally with guidance and tools. NVIDA measures how all the tools are being used. Salesforce.com measures and rewards employees who are answering questions on social media. They are rewarded financially for their efforts. The SAP Community Network covers suppliers and partners and asks people to rank the efforts of members. He offered six categories of measurement: innovation, customer experience, operational efficiency, revenue generation, marketing optimization, and brand health.
The top level is holistic or enlightenment where everyone works together on social media after the foundations of the first four levels have been put in place. The goal is action in real time. They also integrate customer data with social media activity. They use this data to improve their products. A few in his model are Zappos, Dell, and Best Buy. In these companies the CEO is personally involved in customer support. Only 1.4% of companies in their survey were at the holistic level. Starbucks is involving customers to gather ideas on how to get better, Dell is doing this internally. Levis’ has integrated the Facebook Like button in its Web site. It can recommend products based on what your friends like. Proctor and Gamble is looking outside for new ideas. They are making this open and social.
Great session and here is a link to his slides.