Social Business By Design – A Personal Summary (Chapter 11)

Chapter 11 – Workforce Engagement

Creating a Connected Company Using Social Business

1. The background of this comes from Professor Andrew McAfee’s work on Enterprise 2.0 which focus primary on the collaborative, team-based activities that took place between employees internally.

2. Definition of Social and Social Business

Social Graph

“This consists of a user profile that identifies a person and optionally (but typically), a list of everyone that person is connected with. In other words, it’s who a person is and those others he or she knows. “

Activity Stream

“This list the events taking place between the social graphs of users. These are typically status updates or other messages, such as pictures or other media, that a person posts and are then visible to everyone listed as a social graph connection. In other words, it’s a list of everything that’s ever happened in terms of sharing, communicating and collaborating socially.

The key difference between social media and tradditional point-to-point is that created value is shared as widely as possible by default, it enriches the entire community instead of a few narrowly defined interlocutors, based on network effects.

Social Business

“Open, shared participation that results in high levels of shared business value (the network effort).”

3. Functions of Workforce Collaboration

3a. Social Collaboration

  • This is known as Enterprise 2.0
  • One of the most frequent starting poitns for those who are setting out to improve the performance of knowledge workers in the enterprise.
  • Eg of collaboration tools range from Sharepoint, email, and unified communication suites.
  • Social collaboration tools put the social graph and activity streams into the center of work process, becoming a dashboard for collaboration.
  • Focus of Social Collaboration solutions
    • Horizontal Collaboration : applies to any type of internal team work
    • Process Specific Collaboration : Enabling a halo of conversation to form around routine business activities.
  • Making both work necessitates design into workflow and not requiring an extra system that users have to switch between.

3b. Social Intranet

  • Intranets are typically criticized for being frequently out of date, difficult for workers to add or update information.
  • The formal process of publishing and content management that is typically imposed on users do not work well the give-and-take of freeform collaboration.
  • Wikipedia as cited as an example how informal process would be more productive in terms of publishing article over Nupedia (Origin intent of a free online encyclopedia) that followed a formal process with a team of qualified team.
  • Corporate Intranet has the potential private Internet containing the sum of an organization’s tacit knowledge, on going work and useful reference information.

3c. Social Content and Document Management

  • Content and document management is a core activity of organization and one of the most frequent tasks of today’s information-intensive knowledge workers.
  • A generation of sophisticated and complex products have been created to address the needs and requirements of content generation and management.
  • Social CMS and DMS tools have emerged but they typically obey social business tenets.
  • They typically have rules and restriction that are overdone.

3d. Enterprise Social Networking

  • A employee-only, single-company version of Facebook like social network.

3e. Social Human Capital Management

  • HR tradditional concerns itself with hiring and firing and more recently has turned to cultivating the potential of a company’s workers.
  • The open environment of social business leave behind a wealth of knowledge available on the network for all to see, discover, analyze and learn.
  • Human capital management can benefit from social business and this include capturing and preserving subject manager experts, training programs creation, identification of educational and developmental needs.

3f. Unified Communication

  • Refers to a single identity and set of tightly connected and consistent communication methods and contact points.
  • This fell apart with the rise of social media.
  • Not yet a major issue for most large organizations, reconciling unified communications with internal social business will be a growing priority for most Fortune 1000 companies.

4. Key Benefits of Social Collaboration

These Key Benefits but not limited to these are :

  • Better sharing of Information
  • Better direct information flows
  • Collaboration across fiefdoms and silos
  • Increase focus on project outcomes

With reference to Figure 11.2 of the chapter illustrates the Tracking Cause-and-Effect Chains in the determination of Social Business Value

  • Direct Cause
    • Social Networking
    • Open Knowledge Management
    • Emergent Collaboration
  • 2nd Order Cause & Effect
    • Better discovery
    • Cultivating weak ties / cross pollination
    • Collective intelligence
    • Knowledge retention
  • 3rd Order Cause & Effect
    • Improved processes
    • Worker Efficiency
    • Human ingenuity
    • Collaborative problem solving
    • Superior decisions
  • 4th Order Cause & Effect
    • New Products and Services
    • Increase profitability
    • Higher Quality work results
    • Employee retention
    • More efficient operation
  • 3rd Order Cause & Effect
    • Improved processes
    • Worker Efficiency
    • Human ingenuity
    • Collaborative problem solving
    • Superior decisions

Personal Note :

a. During my time with the library, I was some direct experience with social collaboration with me playing the role of user admin for the enterprise wiki, Confluence.

b. At the division and team level, we found it most useful in coauthoring reports, tender documents etc. The social graph and activity streams give the team the necessary visual cues on who was editing the document and when they were doing it. This was extremely useful comparing to the days of sending emails for both coauthouring as well as  advising status of documents and things that were happening on projects. 

c. However, we are not able to roll it out only to segments of the organization early adopters. This remains one of my profession regrets that I was not given the opportunity to follow through. I am still a keen advocate of the use of wikis for team collaboration and would gladly take up any opportunities for me to advocate it and to develop myself as a community manager. It was very exciting to go around various business units to seek out their requirements and to see how I can setup their wikis so that they can work more efficiently.

d. On Social Intranet / Content and Document Management, I was worked under the environment of a not social and restrictive CMS and DMS systems.  Was not particularly motivated to check in on the intranet or to file any corporate documents.

e. On Enterprise Social network, while it is great to have a FB on the enterprise, the question would be what content and conversations should be included. I recall attending a vendor presentation on Sharepoint where the presenter selling how easy it was to update your interests, hobbies etc onto your profile. He got a telling from someone in the audience where she mentioned why on earth would want to spend time to put my interests and hobbies on Sharepoint. What relevance is this to my work.

f. Would be great if I can find examples of Social Human Capital Management case study in particular in Asia/Singapore. Personally, due to my past encounters with HR departments that I used to work in, I do not have a positive opinion of them. 

g. On Unified Communication, agree with current, this may not be a major issues with companies still struggling with the appropriate use of social media in the context of their respectively environment. I figured the likes of iGoogle could be a possible solution but another regret in my professional life. I managed to kick start with a wonderful team of people but were somewhat prevent from seeing it through. 



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Social Business By Design – A Personal Summary (Chapter 10)

Chapter 10 – Social Business Ecosystem

Engaging with Business Partners

1a. Social Business Ecosystems : (Essential Examples) – American Express (Open Forum)

  • Shared Content Area
    • A shared content area where experts convey ideas and thought leadership where SMEs can comment.
    • Resources were original and exclusive, makes it unique and attractive and participant.
    • Strong Marketing Tools because of it unique resources as well as viral marketing by its members that are Amex business customers.
    • Allows customers to connect to Amex and each other
    • Allows customers to help each other  without substantial increase in customer service overheads or dramatically raising the communication required.
  • Social Network (Connectodex)
    • Social network where business not individuals to  connect as friends
    • Design especially for Entrepreneurs
  • Learning point – B2B social business enable business to cost effectively scale their partner relations while forging closer network of relationship not only for itself but also among partners that is richer, more diverse and useful for all parties.

1b. Social Business Ecosystems : (Essential Examples) -L’Oreal (Facebook)

  • Help its salons with a toolkit that overhauls their Facebook pages, a place where the salons’ customers spend most of their online time.
  • Learning point – Large business using social media to connect with business partners better by helping them improve their own business operations.

1c. Social Business Ecosystems : (Essential Examples) –Owens & Minor (Rollstream)

  • Making use of RollStream to support its Social Supply Chain Management.
  • New  and much lower-barrier workflow for new suppliers
  • Provided broader visibility across all supplier communications within the company
  • Learning point – Social media concepts can be adapted to specific types of business activities instead of the usual belief that those activities have to adapt entirely to social media.

2. Social Dashboard :

There are 3 primary types of social business activities that exist  :

  • Ad-hoc activities
    • Unplanned and informal communication
    • B2B  context maybe a simple social interaction between 2 companies or getting to know each other.
  • Process & Content
    • Ideal for deeper integration into workflow

3. B2B  Social Business Option

B2B social business tends to be a bit more structured than some other types  of social business approaches such as social media marketing. B2B relationships tend to be established for a particular purpose and there are at least 7 major applications listed in the book.

  • Innovation Communities
    • One form is that of enterprise innovation provider such InnoCentive. Using crowdsourcing to solve complex problems. Basically, companies post their problems for the experts from InnoCentive to solve
    • Uses principle from  tenet 1 and tenet 5
  • Products as Open Community Platform
    • Similar to Innovation Communities except that the organization open its internal supply chain to outsider and crowdsource directly instead of using a company like InnoCentive.
    • Examples are Goldcorp and GlaxoSmithKline
  • Partner Amplifiers
    • Well suited for large companies that have to support a large number of smaller companies under their care.
    • Example include L’Oreal but applicable to insurance agents, hotel franchises, e-commerce affiliates and any other relationship where B2B collaboration must occur for the business relationship to realize effective results such as increased sales in the channel and better customer acquisition and retention.
  • Affiliate and Partner Portals
    • Private online communities designed for B2B purpose.
    • Example include SAP Community Network and American Express OPEN Forum
    • 2 Primary participative models : Point to point and Networked
  • Social CRM
    • Based on Social Business Tenet 4,”Enlist a large enough community to derive the desired result”
    • Companies need not build their own communities but can make use of free public social media applications like twitter.
    • Companies can build their own such as what Pitney Bowes did.
  • Social Supply Chain Management
    • Social CRM when applied well can offer compelling new solutions to many Supply Chain challenges for the following reasons :
      • Tapping into and making use of social networks that have deep reach across the organization’s supply chain domain expertise
      • Real-Time social supply chain sourcing and self-service support
      • Social exception management will become standard
      • Social supply chain becomes a profit centre and a line of business in its own right. Reference
  • Open  Supply Chain
    • Open Supply Chain represent supply chain directly by self-service means. It refers to Business being about to exchange information in an open manner similar to EDI. However, it also incorporate community-based approach to engage and support participating business partners.

Personal Note :

a. With reference to L’oreal examples, believe that  Govt can adopt this methodology to help their local SMEs and NGOs. I am aware that IDA is trying to encourage and promote the use of technology among the SMEs here.  I am also aware of MSF is initiating efforts to promote the adoption of technology among the NGOs. I am aware of it before I applied to work for both this organization but not successful. I am sure their scope covers much more that what is highlighted here but I am not sure if their scope covers the adoption of using social media for business. I believe this is critical because when it is deployed correctly, it will not only help with productivity that Singapore is seeking but also for knowledge sharing .

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Social Business By Design – A Personal Summary (Chapter 9)

Chapter 9 – Social Customer Relationship Management and Customer Communities (Social Customer Care)

1. Social CRM :

  • Social CRM is the establishment of a relationship between customer and a business which is publicly visible.

  • It seeks to create a deeper and more engaging community relationship with the organization, customers and prospect.

  • It is one part online community, one part crowdsourcing and one part self-service. As a result, it can create an emergent collaborative online partnership with customers that can result in an array of improvements to business performance in the customer relationship process.

  • It entails less deterministic control and outcomes at times as the crown often has its own thoughts and feeling about how work gets done.

2. Elements of an effective Social CRM Solution

  • A social Venue
    • Customer must be able to establish social identity
    • Must be able to perceive who are the other customers and their contributions
    • Must be able to distinguish who are the staff
    • All parties must be able to interact in a social environment.
  • Customer Participation Mechanism
    • General-purpose discussion forum to facilitate discussion
    • Participation mechanisms to help guide inputs with specific requirement and direct towards productive goals
  • Shared Collective Intelligence
    • Creation of a shared repository of knowledge from combined user participation.
    • It should be cummunlative, discoverable and resuable.
    • Artifacts include customer solutions, product suggestions, sale opportunities and so on.
  • Mechanisms to deal with conversational scale
    • Customers should get some form of response if the community at large does not deliver a response.
    • Tools that bucket identical enquiries together.
    • Other scaling mechanism.

3. Issues with Social CRM

  • Who decides on the final solution from a crowdsourcing
  • Who’s idea / feedback to be selected
  • How will non-employee be compensated.

4. The Social CRM Journey

Personal Note :

For this chapter, I have more questions as compared to the rest of the chapters.

a. What are the measures for a successful social CRM?

b. From this chapter, some of the companies / products that have some success on social CRM are :

  • SAP – Community Network
  • Intuit – Forum
  • Dell’s Idea Storm – Crowdsourcing

Questions for me would be that will social CRM benefit all products / services, discounting those products/services that are of classified nature and hence would not be able to deploy social CRM.

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Social Business By Design – A personal summary (Chapter 1)

Someone wise man told me that one of the ways to remember better what you have read is to summarized on your own what you have read. At this age where information is flying around us 24 by 7, summarizing seems such a tedious task. On the other hand, if we just continue just reading the way I have been doing, the information does not stays in your head very well. Not sure if anyone out feel like I do, it is what I have been experiencing for some time now.

Hence for a change, I have decided to try and summarise what I have been reading and blog the summary. The objectives primary to kick myself into blogging which I have been wanting to do for the longest time as well as to try and summarize what I have been reading. The summaries done are based on my personal understanding and no one else. Readers are free to comment and point out to me any misinterpretation or whatever point that you like to highlight to me. I most welcome comments and feedback for it is from them that we continue to learn.

To kick start, I thought I try to summarize the book I am currently reading which is Social Business By Design by Dion Hinchliffe and Peter Kim. The reason for summarizing this book is that it is very relevant to what I used to do as a project manager working on project relating to social computing and knowledge services.  So, here I go  …

Chapter 1 – Drivers of Global Business Opportunity


Social Business in the book is defined as :

“The intentional use of social media to drive meaningful, strategic business outcomes”.

Looking at Professor Andrew Mcafee’s definition of Enterprise 2.0, there is some similarity  as shown below :

“Enterprise 2.0 is the use of emergent social software platforms within companies, or between companies and their partners or customers.”

I find the definition too broad especially with the term social media is not defined and a search on the web and give you several definitions from different authors. This is understandable as social media is still an immature and rapidly evolving based on Claude Baudion from the Cutter Blog.

For this, I will use the definition by Andrea Kaplan and Michaelf Haenlien extracted from Wikipedia which states :

“social media as “a group of Internet-based applications that build on the ideological and technological foundations of Web 2.0, and that allow the creation and exchange of user-generated content”

In addition to internet-based applications, mobile based applications should be included as well with the increasing proliferation of social media on mobile apps.

There is a distinction between the definition of Social Business and Enterprise 2.0 in that enterprise 2.0’s definition makes an explicit differentiation emergent social software within the organization from that which is external to the organization such as Youtube, Wikipedia etc. From the case study cited from the chapter 1 of the book ( Old spice ad on Youtube), we can see that the definition of Social business makes no distinction.

Playing the role of project manager managing web 2.0 and as a educator, it is important to make this distinction.  For project management, scoping is extremely crucial and if stakeholders does not understand the differences then it could lead to miscommunication of requirements and that is always disastrous. From an educational angle, the precision is required so that learners knows what are is to be developed from within the organization and what can be leveraged from existing platform be it Youtube, Linkedin, Facebook etc.

Another minor thing on definition is that another  definition of Social business which was first defined by Prof Muhammad Yunus , who define it as a “non-loss, non-dividend company designed to address a social objective within a highly regulated marketplace today. “

Key Points

1. Until recently, social media is viewed as

  • Consumer activity (which is I take it to be user generated content, aka web 2.0)
  • Marketing as the most useful activity for business to be engaged in (Most of what I have come across seems to indicate this is still the fact)
  • Collaboration with the organization (Enterprise 2.0)

2.  Social Media moving into the organization affecting every aspect of business operation and we now have to consider the 4 major and interrelated audiences combined with all types of business. The audiences being referred to are :

  • Customers
  • the Marketplace
  • Workers
  • Trading Partners

3.  Chapter 1 included 3 organization who have successful make use of social media and there are :

  • SAP – using Online forum
  • Microsoft – using Blogs and twitter
  • Procter & Gamble’s Old Spice Marketing Campaign – Using traditional media but integrated with social media such as Youtube and twitter.
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Social Business Design – A person summary (Chapter 8)

Chapter 7 – Social Product Development

1. Advocating for Social Business Design (SBD) :

  • Opening up the creative process beyond organizational boundaries achieves a far richer set of inputs.
  • Having a bureaucratic, centralized product development team is no longer an efficient or productive application of the resources at hand needed to solve customer problems
  • The developed online world has the biggest sources of talent.

2. Social development cycle

  • Begins with a collection of implicit user contribution, leveraging something Internet luminary John Battelle call the Database of Intentions.
  • Companies automate real-time feedback loops to identify customers behaviours, desires, frequent activities, and other information that can be played back for future users
  • In later iteration, it elicit explicit contributions on desired colours, features, and other usual attributes

3. Comparison between traditional product development and social product development (SDP)

  • Most improvement from SDP will be incremental
  • Risks are often lower
  • Major shifts required by the organization such as
    • encouraging unintended users
    • mass customization
    • more deliberate transformation of organization strategy and organization

Personal Note :

a. Playing the devil advocate, are they any cons to social business design for all its promises ? Can’t think of any at this point in time but will have to keep this in the back of my mind.

b. Is SBD suitable for all products and even services ? Another point to ponder on.

c. Agree that online world has the biggest sources of talent, question will be how to engage and whether the technique of engagement will vary with different countries, cultures and demographics.

d. Didn’t quite appreciate the section of social development cycle but I found the Database of Intentions interesting. Previously, I tend to see the field (as in search) in isolation from the signal. This chart showed the relationship of the various fields and signal in an easy to understand. Felt quite stupid after reading it as it should be something that I already know. But then, I figured that is the purpose of reading widely not just to gain new knowledge but also to see the various representation of it. An updated chart can be found here. Going through the comments on that post, I found additional signals such as “What I read”, “What I have”, “What I need”, “Who I am” and i would add to the list “What I know”.  

e. The last section of the chapter on the comparison of traditional product development versus social product development left me with a strange feeling after reading it.  While I was appreciate what each row (comparison), but have difficulty trying to understand the entire table as a whole. Perhaps I am too much process oriented person. The product development process that I am familiar is as follows : Idea Generation → Screening → Idea Evaluation → Development → Commercialization (Source : Marketing Creating and Delivering value, 4th Edition, Quester, Mcguiggan, perreault, mccarthy, pg 309). This would be an outstanding item for me to follow up. 

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Social Business By Design – A personal Summary (Chapter 6)

Chapter 6 – Social Media Marketing

1. Marketing departments were among the earliest adopters of social media with the blogs and social network being used in a major way in the mid-2000s.

2. One of the key component of social media marketing is Social Business Tenet #6

 Social Business Tenet #6 :

    Participation can take any direction. Be prepared for it, and take advantage of it.

The key aspects of applying this tenet successfully is as follows :

  • Managing social business efforts
  • governing results
  • dealing with risk

3. This applies particularly to social media marketing as it exposes the the organization’s public brand in a seemingly permanent way.

Social Business Tenet #7 :

        Eliminate all potential barriers to participation. Ease of use is essential.

Although the above tenet seems easy, however making user contribution is an incredibly difficult process. Twitter is an example of an application that is extremely easy to use, just 140 characters.

This principle is frequently abandoned in the enterprise, where user interfaces and experiences are overly complicated and over engineered to appear sophisticated or highly capable. Consumer Internet industry learned long ago that complexity reduces participation and leads to failure.

Strategic Approaches to Social Media Marketing

4. Social media marketing is different from tradditional marketing in that there is a substantially greater number of channels with less structure are available for media marketing. Examples of Wasuch channels but not limited to them are :

  • hundreds of social network
  • special interest online communities
  • blogs
  • Other unique forms of audience relevant social media.

4 Major strategic approaches to marketing with Social Media

Strategic Approach 1 – Local Social Media (Draw in the World)

  • Primarily choice in the early days
  • Organization created and controlled their own blogs, discussion forums and online communities
  • Allows high level of control over the experiences and content
  • Example : NutsaboutSouthwestBlog

Strategic Approach 2 – External Social Media (Go to the World)

  • Brands using both mass and niche social media outlets for maximum impact
  • Marketing
  • Branding
  • Build reach
  • Network effects

Strategic Approach 3 – Integrated Social Media (Engage with the Word)

  • Multichannel efforts target multiple aspects of user brand engagement, combining local and external social media as well as offline experiences.
  • Integrated approaches combine a variety of social venues into a consistent, up-to-date, and synchronized social media experience, priming large audiences for deeper subsequent engagement.

Strategic Approach 4 – Unified Social Media (Partner with the World)

  • Business where the boundaries between workers, customers, and partners are blurred.
  • In terms of marketing, anyone can be deeply involved. .

Note : See figure 6.2, pg 70 on the above.

Getting To ROI withSocial Media Markerting

Linking social media marketing programs to existing KPIs is the most direct method for determining if efforts benefit the organization and deliver results cost-effectively.

Useful social media marketing KPIs include :

  • Percentage of effective marketing content derived externally
  • Percentage of leads generated by customer advocacy
  • Value of sales closed primarily because of customer advocacy

The Virtuous Social Business Cycle : Listening and Engagement

One key difference between social media marketing is tradditional marketing is that socia media marketing is a 2-way communication, as such organizations may get overwhelmed by the sheer size of response and unable to respond to it.

This is dangerous as nonresponse or poor response can lead to damaged brand and reputation.

There are social media analytics that can help organization monitor, listen at scale and gain insight to the public general perception of the organization policies and statement.

Social Media engagement must be more personal and direct in nature. Language needs to be conversational and cases as in personal face-to-face communication.

The above brings us the next 2 social business tenet :

Social Business Tenet #8 :

     Listen to and engage continuously with all relevant social business conversation.

Social Business Tenet #9 :

      The tone of language of social business are most effective when they’re casual and human.

The importance of these 2 tenet is highlighted by the case study on Ford Motor Company vs a small online fan site was targeted by Ford Motor Company for infringing on trademark and IP. turns to social media for support by posting the situation on its blog even though the site was technically in violation of Ford’s legal right.

Scott Monty, Ford’s global digital and multimedia communications manager became aware of the situation via a tweet. He intervene in a way that he listen and engaged in every language  rather than hiding behind formal policies.

By avoiding legalese and being open, helpful and informative, the situation ended with both parties benefiting from the outcome.

Social Business Intelligence (SBI : Next-Generation Listening and Engagement

SBI helps organization extend listening and engagement by applying insights across business process and targeted business outcomes beyond marketing communications.

Some of the key business outcome driven by SBI are as follows :

  • Marketing Optimization
  • Capturing Idea and Unmet Needs
  • Situational Awareness
  • Customer Care Opportunities
  • Sentiment Analysis

Personal Note :

a. This is a particularly interesting chapter for me as this is the first time that I am seriously reading anything on Social Media Marketing. I have not read up on this topic seriously as it is not the area that I wanted to focus on. Knowledge Management, collaboration using web 2.0 are more interesting to me. However, having said that, it is always good to familiar topics that you are not keen at, at least a cursory level.

b. Agree with the starting comment of the chapter is that marketing departments were the early adopters and in my opinion still very much so in Singapore. I based this opinion on the fact that I have hardly read anything besides this on the web and a search for web2.0 related course, it has been all about marketing and branding. I would like to be proven wrong so if anyone has read anything about web2.0 case study pertaining to singapore beside marketing, please send me the link, would be very grateful.

c. With reference to Social Business Tenet #7 and how enterprise typically abandoned this principle, I am in agreement having been working in an enterprise environment for over 15 years. I offer the following opinions :

  • Consideration for processes, security and procedures take precedence over user experience.
  • Furthermore, we are referring to enterprise software, employee have no choice but to use the applications, user experience consideration might be further pushed down priority.
  • Having a sophisticated system may give the perception that it is a good system and easier to justify and promote the system to senior management. At times, I suspect that if one were to produce an easy to use and simple system, one may questioned by senior management on the quality of the system since they are typically exposed to more sophisticated system by the big vendors
  • There is no concern of lack of participation since employees are forced to use the system whether they like it or not.

d. Was hoping for a more comprehensive summary of the differences between social media and tradditional marketing. Anyway, found this article what give me a quick summary. Click here

e. Interesting to know how social business tenet #9 will impact organization that are tradditional very top down. This is a chapter on social media marketing and hence I can appreciate fully the extent of social business tenet #9. Would it be the same if I view it from the perspective of employees within the organization as it varies from countries to countries and cultures to cultures.

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Social Business By Design – A peronsal summary (Chapter 5)

Chapter 5 – How Business Will Make the Transition

It is far easier for small and medium-sized (SME) companies to make the transition than large organization because of the following :

  • Changes are easier to make because of its size
  • Has few constraints

Some challenges faced by shifts of control required by Social Business are :

  • How we communicate (Move from point-to-point to social)
  • How we organize (Organization of Hierarchies to communities)
  • How we create (central output to peer output)
  • Where value comes from (hierarchies to networks)

Next-Generation Business will be OPEN, SOCIAL and SELF-SERVICE

Some obstacles/barriers organisation might face transiting to social business are :

  • Organizational
  • Cultural
  • Structural
  • Legal
  • Regulatory
  • Rethinking of how business gets done

What Social Business Consists Of :


3 Unique and critical aspects

  1. Social business creates and delivers most of its value over the network, usually indirectly. (Not centralized production, but peer production)
  2. Social Business consists of a loosely coupled entity – usually a very large number of customers and suppliers who have as much control over outcomes as any other part of the business.
  3. Social Business has effective strategies to take advantage of the new balance of abundance and scarcity, along with greatly reduced dependencies on the old balance.

Figure 5.1 (modelled) : Societal and Economic Shifts Leading to Social Business

Drivers of Social Business

  1. Strategic control  over peer-produced community data drives market dominance
  2. Peer production is the most efficient and richest source of value creation
  3.  Social power structures are the means of self-organizing and governing
  4. Mass self-serving of market niches achieves the highest economic scale
  5. Cloud- and ecosystem-based open supply chains are the basis of growth and agility
  6. The ability to dynamically adapt and rapidly respond to the current needs of the cloud is vital.

Macrotrends affecting how Social Business will emerge

  1. New Resource constraints
    1. Need for organizations to find new ways of accomplishing goals using fewer resources
    2. Currency of the realm on the network
  2. Sustainable value moving from business transactions to relationships
  3. Industries in flux with new ones emerging
  4. Moving from change as the exception to change as the norm
  5. A shift of control to the edge of organization

Personal Note :

a. In general, it true that it will be easier for SME to make the transition to social business. I believe, the toughest hurdle for SMEs will be cultural, as they tend to be highly traditional and hierarchical .

b.It was noted (pg 55) that old media and software industry has already been impacted by social business

c. With reference to the 3 unique and critical  aspects of social business, having difficulty visualizing it in the head :(.

d. On drivers of social business (ref : 58), driver 1, agree with the point that up-to-date data sources is very important as information is power.

e. . On drivers of social business (ref : 58), driver 2. agree that peer production is typically most efficient as you can draw on the knowledge of people. Playing the devil’s advocate, will it apply to all sorts of production as the saying “too many cooks spoil the soup” comes to mind and not to mention about differences in stakeholders of that production. Believe other process needs to company peer production for it to be truly beneficial.

f. Reading driver 3, future organization would be flat and I can the feeling that the future of middle management is not very bright. Coincidentally, while reading the book, I also changed upon an article  from HBR article titled “TheEndofMiddleManager”. The article suggest that much of the role of traditional manager can be taken over by technology (aka social media) and Gen Y do not see any value in reporting to someone who simply keeps track of what they do.

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