bp305 show me the money! the value in social business
DESCRIPTION
Presentation at IBM Connect 2014. Going through better ways to emasure ROI on social business. Topics involved are: Measurement principles, Better measures such as: 1-9-90 rule of engagement, Return on Contribution (RoC), Return on productivity, Value of engagement, and Business patterns/use casesTRANSCRIPT
© 2014 IBM Corporation
Sasja Beerendonk, e-office
BP305: Show Me the Money! The Value in Social Business
@sbeerendonk
About me
twitter.com/sbeerendonk
http://nl.linkedin.com/in/sbeerendonk
http://thoughtsoncollaboration.com
@sbeerendonk
Agenda
• ROI, why? and some social business ROI myths
• From social software to a social business
• Measure: usage versus effect
• Value of engagement
• Value of productivity
• Value metrics through use cases
@sbeerendonk
4
ROI, why?
@sbeerendonk
What is the ROI of a phone?
Should we measure the amount of calls?
Does use of other systems, such as email, decrease?
How does the phone help an employee do their work?
Source: Return On Contribution (ROC): A
Metric for Enterprise Social Software, Muller@sbeerendonk
Social business ROI myths
a metric = ROI
social business ROI is not measurable
measuring ‘likes’ and ‘followers’ = ROI
@sbeerendonk
7
From social software to a social business
@sbeerendonk
Social business creates value
find expertise
@sbeerendonk
Maslow’s hierarchy for enterprise 2.0
Maslow’s Hierarchy of Enterprise
2.0 ROI, Hutch Carpenter, 2010 @sbeerendonk
Measurement principles
• Define success
• Measure to inform and enhance
• Don’t fall for ‘easy measures’
• Better measures
• use cross-referencing and combining of
metrics
• Measure regularly
Source: Michael Sampson –
User Adoption Strategies 2nd ed.
Increase organizational effectiveness, across
borders, reducing duplication of effort
# communities with active participation
from employees from different offices
# blog posts with comments from
employees in other offices
% projects (activities) with employees from
different offices
@sbeerendonk
11
Measure: usage versus effect
@sbeerendonk
Distinguish between the reach of social collaboration, and the resulting use of tools and the
effect on individual work effectivity and organisation goals.
@sbeerendonk
Two ways to focus
13
Business process Collaboration process
@sbeerendonk
14
Value of engagement
@sbeerendonk
Employee engagement
I share my knowledge and expertise
I react and reply
I am well informed
be show
@sbeerendonk
1-9-90 rule on participation
90%
1%
http://en.wikipedia.org/wiki/1%25_rule_%28Internet_culture%29
9%
@sbeerendonk
Engagement tool
• define ‘lurkers’ further:
• Creator
• Contributor
• Joiner
• Spectator
• Inactives
lurkers
Download the flyer of the e-office engage-o-meter@sbeerendonk
on average 15% of employees is Creator and 20% is Contributor… in order to create value
these employees need to become more productive!
How to make sociale software a success?
engagement pyramid
@sbeerendonk
Return on Contribution
Source: Return On Contribution (ROC): A
Metric for Enterprise Social Software, Muller@sbeerendonk
An example of ROC
Source: presentation Chris Sparshott -Evaluating the Success of an IBM Collaboration and Social Networking project
@sbeerendonk
What does the number 2.59 mean?
Source: presentation Chris Sparshott -Evaluating the Success of an IBM Collaboration and Social Networking project
Bookmark originator
bookmarks a resource
2.59 consumers benefit from the work of
each bookmark originator
@sbeerendonk
22
Value of productivity
@sbeerendonk
Sequential collaboration versus co-creation
Let’s make music!
23 @sbeerendonk
Rythm guitar
24
Lead guitar
Bass Drums
@sbeerendonk
Merge together
28@sbeerendonk
True co-creation
29
http://www.youtube.com/watch?v=d9NF2edxy-M
To be succesful, employees need to …
@sbeerendonk
Collaboration: Email versus Files
Collaboration: Email versus Wiki
Productivity wins
@sbeerendonk
34
Value metrics through use cases
@sbeerendonk
Organization goals
• Work more effectively across countries and timezones
• Bring together expertise from different offices/countries
• Decrease travel time
• Bring innovations to market faster
• Deliver projects on time
• Solve problems faster
• Secure expertise from employees who leave
• Faster onboarding
• Build communities of practice to share and enhance knowledge in key areas
• Hold on to good staff longer
@sbeerendonk
How then?
• Focus on organisation goals
• ‘Translate’ goals to use cases
• Work from activity-metrics to value-metrics
@sbeerendonk
Finding expertise
• Quickly locate the right people, or published content containing, the expertise
needed to solve a problem
• Connect the best possible resources to effectively respond to customer needs
• Document and share reusable solutions to common issues
• Create highly-engaged and productive employees.
Benefits
• 30% improvement in speed of accessing experts
• 55% increase in visibility of company’s subject matter experts on its public website
IBM Whitepaper (2013)Patterns in achieving social business success by leading and pioneering organizations
USE CASE
@sbeerendonk
Gaining external customer insights
• Quickly learn customers’ opinions and preferences related to existing and potential
products and services
• Identify and connect with key customer influencers to aid marketing efforts
Benefits
• Nearly 50% reduction in customer/agent service costs
• >50% decrease in time required to develop new services and features
• 20% reduction in man hours needed to create new product release information
USE CASE
@sbeerendonk
IBM Whitepaper (2013)Patterns in achieving social business success by leading and pioneering organizations
Share knowledge
• More efficiently and effectively capture, share and access knowledge
• Increase innovation through wider reach of ideas
• Reduce excessive, unproductive time spent searching and exchanging information
Benefits
• 30% improvement in speed of accessing experts
• Productivity increases of 20-25% attributable to reduced need for status meetings
• Accelerated problem resolution due to more effective use of communication tools
• Improved employee engagement and satisfaction
USE CASE
@sbeerendonk
IBM Whitepaper (2013)Patterns in achieving social business success by leading and pioneering organizations
Recruiting and onboarding employees
• Collaboratively find and connect the right candidate to the right position
• Streamline assessment and hiring processes
• Better connect, engage and retain new hires
• Contextually recommend expertise to increase new hires’ productivity
Benefits
• 30% more candidate searches completed annually
• 25% reduction in time needed to fill open positions
• 2 day reduction in time to on-boarding new employees, 30% faster new hire time-to-value
• At least 20% increase in employee retention
USE CASE
@sbeerendonk
IBM Whitepaper (2013)Patterns in achieving social business success by leading and pioneering organizations
Use case example
support department needs to
collaborate more effective
across borders and time
Employees are able to locate colleagues with needed skills irrespective of their location
Subject matter coordinators blog regularly to share latest updates in their area
“How to” wikis are regularly updated by team members and are heavily used to find information
Activities are set up to enable small teams to work together across time zones to resolve problems
% profiles with skills updated# searches on profiles# reads of profiles
# blog entries added# blog authors# comments to blog entries# reads of blog entries
# wiki edits made# wiki authors, from different offices# comments to wiki entries# reads of wikis
# new activities started, with people from different offices# activity owners# activity members# reads of activities
Average time to close a customer request is reduced by x%
Customer satisfaction survey shows an improvement of y%
Staff satisfaction survey shows improvement in job satisfaction score of customer support staff
Staff turnover among customer support staff shows a reduction of z%
Average handling cost per customer request is reduced by x $USD
Annual customer support recruitment costs are reduced by x $USD
IBM Software Services for Lotus - White Paper, June 2010 Measuring the value of social software
Metrics of creation, consumption, membership etc
@sbeerendonk
• Access Connect Online to complete your session surveys using any:
– Web or mobile browser
– Connect Online kiosk onsite
42 @sbeerendonk
And now …
• Questions?
• Contact me
• More information ? – experience the business of
social software
• Read whitepaper– ‘Social Business’ (NL)
• Watch more webcasts and
live webinars
twitter.com/sbeerendonk
http://nl.linkedin.com/in/sbeerendonk
http://thoughtsoncollaboration.com
@sbeerendonk
44
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