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Social Business
The Amaté platform
Social Networks
May 21th 2014
- Preliminary Draft -
I. Conflict
II. Social Networks
III. Complexity
IV. Case Studies
Social
Business
CasesExperience
Economy
Conflict
A social network is a map of the
relationships between individuals,
indicating the ways in which they are
connected.
• The world is composed of networks
rather than tightly-bounded groups
• Networks provide flexible means of
social organization and of thinking
about social organization
• Networks have emergent properties
of structure and composition
©2013 L. SCHLENKER
Partners
Stockholders
Clients
Employees
How can the social business
enhance organizational productivity?
Social Business strategies help us understand the motivations, experience
and objectives of the internal and external clients of the organization
Experience
Economy
CasesSocial
Business
Conflict
©2013 L. SCHLENKER
Focus Improve Knowledge Leverage Measure
CRM Processes Explicit Transactions Efficiency
Social CRM Relationships Implicit Message Effectiveness
SNA Informal
networks
Emerging Interactions Innovation
Transformation Places Layered Ideas Agility
Experience
Economy
CasesSocial
Business
Conflict
Social
Business
CasesExperience
Economy
Conflict
• The assumption of order
• The assumption of rational
choice
• The assumption of intentional
capacity
• The assumption of identity
Social
Business
CasesExperience
Economy
Conflict
©2013LHSTsarl
Telecommunications
Textiles
Medicine
Leisure
Automobile
Household
appliances…
Separation, alignment, cohesion
Social
Business
CasesExperience
Economy
Conflict
©2013LHSTsarl
Organizational rigidity Organic growth
Clearly defined functions Connectivity is the key
Organizational
boundaries
Boundaries are thin and
permeable
Corporate strategy Strategy is in the network
Product development
cycle
Solution selling
Social
Business
CasesExperience
Economy
Conflict
Blind trust "Seeing is believing"
Trustworthiness Personal or product based
reputation
Contextual trust What works in a special
context
Referred trust Relying on the opinions of
those we admire
Vanessa Hall - The Truth About Trust in Business
Content CasesMethodsIntroduction
• Profitability: Profitability measures the added value of an organization in
comparing the cost of its resources with that of the products and/or services.
• Utilization: Utilization focuses on the extent to which company resources
are employed at any given time.
• Quality: Quality has been defined variously as „conformance to standards”
as well as „client satisfaction‟
• Innovation: Innovation can be understood in the context of an
organization‟s ability to react to real or perceived changes in the market or in
the economy.
• Passion: Passion represents the affective response of people to their work
environment.
• Effectiveness: Effectiveness can be viewed as an output-input ratio that
addresses the question of “doing the right things” to meet customer needs
and objectives.
Social
Business
CasesExperience
Economy
Conflict
Patti Anklam The Social-Network Toolkit
Social
Business
CasesExperience
Economy
Conflict
Social
Business
CasesExperience
Economy
Conflict
Social
Business
CasesExperience
Economy
Conflict
What’s wrong with CRM?
• The assumption of order
• The assumption of rational
choice
• The assumption of intentional
capacity
• The assumption of identity
The need for what Morgan called « the management
of meaning »
Introduction Networks ApplicationChallenges Value
What does KM mean?
Patti Anklam The Social-Network Toolkit
Introduction Networks ApplicationChallenges Value
Knowledge
• Knowledge is not only history: it is a
dynamic/changeable process
• KM is facilitated by technology, but it is
primarily about people, working together and
about communication
• We need to connect, to put in context, to
globalize our information and our knowledge,
thus to look for a complex knowledge.
• Knowledge management originates from a
strategy that is informative, instructional, and
cognitive.
Introduction Networks ApplicationChallenges Value
Culture
• Form of individual or collective
representation
• Culture isn’t a thing but a process
• Cultural change is a change in
representations
• By applying the concepts and
principles of complexity thinking we
can gain a new understanding of
business culture
Introduction Networks ApplicationChallenges Value
Networks
• Common objectives – shared
meaning
• Actors and actants
• Innovation closely tied to
organisation
• Possibilities tied to societal
environment
Introduction Networks ApplicationChallenges Value
Markets – what do we really see?
• Ordered domain: Known causes
and effects.
• Ordered domain: Knowable
causes and effects.
• Un-ordered domain: Complex
relationships.
• Un-ordered domain: Chaos
Introduction Networks ApplicationChallenges Value
Complexity
Introduction Networks ApplicationChallenges Value
Long version Short version
What can I learn from chaos?
Introduction Networks ApplicationChallenges Value
Chaos
A chaordic system is a complex and dynamical
arrangement of connections between
elements forming a unified whole.
• Determinism;
• Nonlinearity;
• Sensitive Dependence on Initial Conditions;
and
• Periodicity
Introduction Networks ApplicationChallenges Value
Power Laws
• In physics, a power law relationship between
two scalar quantities x and y is any such that the
relationship can be written as
– <math>y = ax^k,!<math>
• where a (the constant of proportionality) and k
(the exponent of the power law) are constants.
• in its simplest terms roughly eighty percent of
the work is done by twenty percent of the
network
Introduction Networks ApplicationChallenges Value
It’s a small world
• In reality, the market is nothing but a directed network
• No manager or firm can succeed or fail alone, customers,
managers and teams are inherently linked together in social
networks.
• The notion of interdependence : managers constitute hubs
and nodes of the network, organization learning will filter
down and out through the network as a whole.
• six degrees of separation : everyone in the world can be
reached through a short chain of acquaintances.
• Change is marked by "phase transitions" from states of
disorder to order: "cascading failure“ and “emergent” threats .
Introduction Networks ApplicationChallenges Value
The coming of fat tails
Introduction Networks ApplicationChallenges Value
How does work really get done?
Introduction Networks ApplicationChallenges Value
How does the brain comunicate?
Introduction Networks ApplicationChallenges Value
Five characteristics
• User based
• Interactive
• Community driven
• Structured by relationships
• Emotional content
http://socialnetworking.lovetoknow.com
/Characteristics_of_Social_Networks
Introduction Networks ApplicationChallenges Value
Principles of Social Network
Analysis
• Actors and their actions are viewed as interdependent rather than
independent, autonomous units
• Relational ties (linkages) between actors are channels for transfer or
“flow” of resources (either material or nonmaterial)
• Network models focusing on individuals view the network structure
environment as providing opportunities for or constraints on
individual action
• Network models conceptualize structure (social, economic, political,
and so forth) as lasting patterns of relations among actors
(Wasserman/Faust 2008:4)
Dr. Denis Gruber
Introduction Networks ApplicationChallenges Value
Fundamental Concepts in
Network Analysis
• actor
• relational tie
• dyad
• triad
• subgroup
• group
• relation
• social network
networks
network
culture
Terranova
(cultural
studies)
sociometry
Moreno
(psychother
apy) ‘strength of
weak ties’
Granovetter
(new ec
sociology)
graph theory
White
(mathematical
sociology)
social
capital
Bourdieu
(social
theory)
social
exclusion
Phillipson
(social
policy)
network
society
Castells
(social
theory) Dr. Denis Gruber
Introduction Networks ApplicationChallenges Value
Social Network Characteristics
Characteristic Value
Degree Centrality Number of links
Betweeness
Centrality
Role of brokerage
Closeness
Centrality
Vector of visibility
Network
Centralization
Centralized vs
Decentralized
Network Reach Importance of first 3
levels
Boundary
Spanners
Linked to Innovation
Peripheral Players Potential Gateways
Introduction Networks ApplicationChallenges Value
Six core layers of knowledge
1. The Work Network With whom do you exchange information as part
of your daily work routines?
2. The Social Network With whom do you “check in,” inside and outside
the office, to find out what is going on?
3. The Innovation Network With whom do you collaborate or kick around
new ideas?
4. The Expert Knowledge Network To whom do you turn for expertise or advice?
5. The Career Guidance or Strategic
Network.
Whom do you go to for advice about the future?
6. The Learning Network. Whom do you work with to improve existing
processes or methods?
Karen Stephenson
Introduction Networks ApplicationChallenges Value
The work network
Introduction Networks ApplicationChallenges Value
Zopa
• Peer to peer banking
• Zopa categorizes borrower credit grades;
lenders then make offers, borrowers agree to
aggegrate rate..
• Zopa distributes the money, completies the
legal paperwork, performing identity/credit
checks, and enforces collections.
• Zopa mitigates risk for lenders, optimizes
market offer for borrowers
• Zopa’s repayment rate is currently 99.35 per
cent
Introduction Networks ApplicationChallenges Value
The social network
Introduction Networks ApplicationChallenges Value
Linked-in
Introduction Networks ApplicationChallenges Value
Organizational Network
Applications
Introduction Networks ApplicationChallenges Value
What’s behind a relationship?
Introduction Networks ApplicationChallenges Value
The career network
Introduction Networks ApplicationChallenges Value
Map Orientation- Euromap
Introduction Networks ApplicationChallenges Value

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Social networks

  • 1. Social Business The Amaté platform Social Networks May 21th 2014 - Preliminary Draft -
  • 2. I. Conflict II. Social Networks III. Complexity IV. Case Studies Social Business CasesExperience Economy Conflict A social network is a map of the relationships between individuals, indicating the ways in which they are connected. • The world is composed of networks rather than tightly-bounded groups • Networks provide flexible means of social organization and of thinking about social organization • Networks have emergent properties of structure and composition
  • 3. ©2013 L. SCHLENKER Partners Stockholders Clients Employees How can the social business enhance organizational productivity? Social Business strategies help us understand the motivations, experience and objectives of the internal and external clients of the organization Experience Economy CasesSocial Business Conflict
  • 4. ©2013 L. SCHLENKER Focus Improve Knowledge Leverage Measure CRM Processes Explicit Transactions Efficiency Social CRM Relationships Implicit Message Effectiveness SNA Informal networks Emerging Interactions Innovation Transformation Places Layered Ideas Agility Experience Economy CasesSocial Business Conflict
  • 6. • The assumption of order • The assumption of rational choice • The assumption of intentional capacity • The assumption of identity Social Business CasesExperience Economy Conflict
  • 8. ©2013LHSTsarl Organizational rigidity Organic growth Clearly defined functions Connectivity is the key Organizational boundaries Boundaries are thin and permeable Corporate strategy Strategy is in the network Product development cycle Solution selling Social Business CasesExperience Economy Conflict
  • 9. Blind trust "Seeing is believing" Trustworthiness Personal or product based reputation Contextual trust What works in a special context Referred trust Relying on the opinions of those we admire Vanessa Hall - The Truth About Trust in Business Content CasesMethodsIntroduction
  • 10. • Profitability: Profitability measures the added value of an organization in comparing the cost of its resources with that of the products and/or services. • Utilization: Utilization focuses on the extent to which company resources are employed at any given time. • Quality: Quality has been defined variously as „conformance to standards” as well as „client satisfaction‟ • Innovation: Innovation can be understood in the context of an organization‟s ability to react to real or perceived changes in the market or in the economy. • Passion: Passion represents the affective response of people to their work environment. • Effectiveness: Effectiveness can be viewed as an output-input ratio that addresses the question of “doing the right things” to meet customer needs and objectives. Social Business CasesExperience Economy Conflict
  • 11. Patti Anklam The Social-Network Toolkit Social Business CasesExperience Economy Conflict
  • 14. What’s wrong with CRM? • The assumption of order • The assumption of rational choice • The assumption of intentional capacity • The assumption of identity The need for what Morgan called « the management of meaning » Introduction Networks ApplicationChallenges Value
  • 15. What does KM mean? Patti Anklam The Social-Network Toolkit Introduction Networks ApplicationChallenges Value
  • 16. Knowledge • Knowledge is not only history: it is a dynamic/changeable process • KM is facilitated by technology, but it is primarily about people, working together and about communication • We need to connect, to put in context, to globalize our information and our knowledge, thus to look for a complex knowledge. • Knowledge management originates from a strategy that is informative, instructional, and cognitive. Introduction Networks ApplicationChallenges Value
  • 17. Culture • Form of individual or collective representation • Culture isn’t a thing but a process • Cultural change is a change in representations • By applying the concepts and principles of complexity thinking we can gain a new understanding of business culture Introduction Networks ApplicationChallenges Value
  • 18. Networks • Common objectives – shared meaning • Actors and actants • Innovation closely tied to organisation • Possibilities tied to societal environment Introduction Networks ApplicationChallenges Value
  • 19. Markets – what do we really see? • Ordered domain: Known causes and effects. • Ordered domain: Knowable causes and effects. • Un-ordered domain: Complex relationships. • Un-ordered domain: Chaos Introduction Networks ApplicationChallenges Value
  • 20. Complexity Introduction Networks ApplicationChallenges Value Long version Short version
  • 21. What can I learn from chaos? Introduction Networks ApplicationChallenges Value
  • 22. Chaos A chaordic system is a complex and dynamical arrangement of connections between elements forming a unified whole. • Determinism; • Nonlinearity; • Sensitive Dependence on Initial Conditions; and • Periodicity Introduction Networks ApplicationChallenges Value
  • 23. Power Laws • In physics, a power law relationship between two scalar quantities x and y is any such that the relationship can be written as – <math>y = ax^k,!<math> • where a (the constant of proportionality) and k (the exponent of the power law) are constants. • in its simplest terms roughly eighty percent of the work is done by twenty percent of the network Introduction Networks ApplicationChallenges Value
  • 24. It’s a small world • In reality, the market is nothing but a directed network • No manager or firm can succeed or fail alone, customers, managers and teams are inherently linked together in social networks. • The notion of interdependence : managers constitute hubs and nodes of the network, organization learning will filter down and out through the network as a whole. • six degrees of separation : everyone in the world can be reached through a short chain of acquaintances. • Change is marked by "phase transitions" from states of disorder to order: "cascading failure“ and “emergent” threats . Introduction Networks ApplicationChallenges Value
  • 25. The coming of fat tails Introduction Networks ApplicationChallenges Value
  • 26. How does work really get done? Introduction Networks ApplicationChallenges Value
  • 27. How does the brain comunicate? Introduction Networks ApplicationChallenges Value
  • 28. Five characteristics • User based • Interactive • Community driven • Structured by relationships • Emotional content http://socialnetworking.lovetoknow.com /Characteristics_of_Social_Networks Introduction Networks ApplicationChallenges Value
  • 29. Principles of Social Network Analysis • Actors and their actions are viewed as interdependent rather than independent, autonomous units • Relational ties (linkages) between actors are channels for transfer or “flow” of resources (either material or nonmaterial) • Network models focusing on individuals view the network structure environment as providing opportunities for or constraints on individual action • Network models conceptualize structure (social, economic, political, and so forth) as lasting patterns of relations among actors (Wasserman/Faust 2008:4) Dr. Denis Gruber Introduction Networks ApplicationChallenges Value
  • 30. Fundamental Concepts in Network Analysis • actor • relational tie • dyad • triad • subgroup • group • relation • social network networks network culture Terranova (cultural studies) sociometry Moreno (psychother apy) ‘strength of weak ties’ Granovetter (new ec sociology) graph theory White (mathematical sociology) social capital Bourdieu (social theory) social exclusion Phillipson (social policy) network society Castells (social theory) Dr. Denis Gruber Introduction Networks ApplicationChallenges Value
  • 31. Social Network Characteristics Characteristic Value Degree Centrality Number of links Betweeness Centrality Role of brokerage Closeness Centrality Vector of visibility Network Centralization Centralized vs Decentralized Network Reach Importance of first 3 levels Boundary Spanners Linked to Innovation Peripheral Players Potential Gateways Introduction Networks ApplicationChallenges Value
  • 32. Six core layers of knowledge 1. The Work Network With whom do you exchange information as part of your daily work routines? 2. The Social Network With whom do you “check in,” inside and outside the office, to find out what is going on? 3. The Innovation Network With whom do you collaborate or kick around new ideas? 4. The Expert Knowledge Network To whom do you turn for expertise or advice? 5. The Career Guidance or Strategic Network. Whom do you go to for advice about the future? 6. The Learning Network. Whom do you work with to improve existing processes or methods? Karen Stephenson Introduction Networks ApplicationChallenges Value
  • 33. The work network Introduction Networks ApplicationChallenges Value
  • 34. Zopa • Peer to peer banking • Zopa categorizes borrower credit grades; lenders then make offers, borrowers agree to aggegrate rate.. • Zopa distributes the money, completies the legal paperwork, performing identity/credit checks, and enforces collections. • Zopa mitigates risk for lenders, optimizes market offer for borrowers • Zopa’s repayment rate is currently 99.35 per cent Introduction Networks ApplicationChallenges Value
  • 35. The social network Introduction Networks ApplicationChallenges Value
  • 38. What’s behind a relationship? Introduction Networks ApplicationChallenges Value
  • 39. The career network Introduction Networks ApplicationChallenges Value
  • 40. Map Orientation- Euromap Introduction Networks ApplicationChallenges Value