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The Challenges and Opportunities
of Business in the Disruptive Tech Era
Closing Keynote by Dion Hinchcliffe (@dhinchcliffe)
Introduction                             Spring 2012



        Dion Hinchcliffe
         • ZDNet’s Enterprise Web 2.0
           • http://blogs.zdnet.com/Hinchcliffe
         • ebizQ’s Next-Generation Enterprises
                      •
              http://www.ebizq.net/blogs/enterprise

               ••                     Chief Strategy Officer
                          http://dachisgroup.com
                      •   mailto:dion.hinchcliffe@dachisgroup.com
               •               : @dhinchcliffe




® 2012 Dachis Group                                                               2
To continue this discussion (and for slides):


                      Hashtag: #tech12 gh1




® 2012 Dachis Group                             3
Dachis Group




The good news: Technology is driving business productivity




 (cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.   4
Dachis Group




But is this coming from traditional IT?




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Dachis Group




Is IT even leading innovation today?




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Dachis Group




Yet 60% of CIOs believe they should be driving
growth and productivity.
                                                                  Source: Deloitte Survey, 2011




(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.                                   7
Dachis Group




But technology change is happening faster
than ever before

  •     A tsunami of new mobile devices and technologies
  •     A vast wave of social media
  •     The rumbles of cloud computing and SaaS
  •     The shift to DIY
  •     A flood of Big Data
  •     Consumerization!




(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.   8
Dachis Group




A perfect storm of technology change




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Dachis Group




Happening almost all at once




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Dachis Group




 Pervasive disruption is here...




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Dachis Group




Another Way of
Looking At All This




                                                                  World
                              Workers

  IT
(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.           12
Dachis Group




New Digital Engagement
Channels Are The Focus




                                                                  And where
                                                                  the value is...



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Dachis Group




The channel shift has been global




                                                                    1.3
               From: Social Business By Design, 2012              billon
                                                                  people
(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.            14
Dachis Group




Yet businesses are still fairly immature with digital




                                                                                                                  Maturing
Competent


                                                                                                    Webinars
                                                                                                   online video
                                                                     big data        gamification
                               direct mail               P2P video              cloud
                                                             social media              mobile
                                                                                        apps




                                                                            Immature
 (cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.
Dachis Group




Is all this change worth it?
                                                                   Pace of Technology Change
              Life Expectancy of S&P 500 Company




                      Human Population Growth

 (cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.
Dachis Group




Key data point #1: Mobile
• Smart mobile devices
      outshipped PCs in early 2011
•     Tablets are expected to on par
      with PCs by 2015
•     Smart mobility strategies
      (particularly the iPad) have now
      become a top priority of most
      Fortune 500 CIOs
•     Global mobile data going
      geometric is going to be the
      largest challenge to growth and
      use
•     App stores are creating all new
      conduits between IT suppliers
      and workers


(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.   17
Dachis Group




 Mobile Internet Ramping Up Faster Than
 Desktop Internet by 5x




               Source: Mary Meeker, Morgan Stanley



(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.
Mobile Business Strategy | June 2010




Channel Fragmentation Is Now The Norm




                                                   +
400 social networks with over 1 million users =    2 billion mobile Internet users + 100 million
aggregate audience of about 900 million            next-gen smart phone users across hundreds of
                                                   device types



           Have Become The De Facto Primary Channels for
                 Customer and Worker Engagement
® 2010 Dachis Group. Confidential and Proprietary                                                   19
Dachis Group




 The Risks of Inaction




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Dachis Group




 Opportunity - The Stories
 •     Augmented Reality
 •     Real-time Translation
 •     The “Taxi” Button
 •     Multi-point Video Conferencing
 •     The CRM “lite” app & “walking the line”
 •     Business intelligence




(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.
Dachis Group




 The Smart Mobility Lesson

                 • Mobility isn’t just about computing that can
                    move around
                 • It’s a fundamental re-invention of computing
                 • All new possibilities now exist
                 • We must reinvent our businesses around
                    what these new platforms make possible




(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.
Dachis Group




 Why Smart Mobility is qualitatively different
 •     Sensors (and lots of them)
 •     Always connected
 •     Location awareness in 3D space
 •     App stores
 •     Long battery life
 •     Always on
 •     Touch-based interfaces
 •     Voice control
 •     New operating systems




(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.
Dachis Group




 The Take-Aways for Mobile
 • Mobile first, mobile apps, on any device
       (BYOD, BYOA)
 •     Build the “button” for your business
 •     Enable customers and workers to self-
       service with apps and data
 •     Rethink business solutions
       for what mobile devices are
        uniquely capable of
 •     And do it quickly, though
       you do have a (small)
       window of opportunity
       to learn



     Do this and avoid smart mobility
(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.
Dachis Group




Key data point #2
                                                                   The Adoption Rates of E-mail, Social Networks, and E2.0
• Social is now the
  dominant form of                                                                  1B
  Internet                                                                                                                                                           100%
  communication on                                                                                                                                       projected

  the planet                                                                     750M                                                                                75%




                                                                                                                                                                             Enterprises
                                                                  Global Users




                                                                                                                                                                             Percent of
• Enterprises are 2-4                                                                                                                            imate
  years behind the                                                                                                                       high est
                                                                                                                                                                     50%
  rest of the world.                                                             500M
                                                                                                                                         low estimat
                                                                                                                                                    e


• Yet data shows                                                                                                                                                     25%
  that revenue of                                                                250M
  social businesses
                                                                                           2006        2007        2008        2009        2010           2011
  is 20+% higher on
  average.                                                                                             Consumer
                                                                                                       Social             E-mail          Enterprise 2.0
  Profitability is                                                                                      Networks
  better too.                                                                    Sources: comScore, Hitwise, and The Radicati Group, Forrester, APC, Intellicom, Neilsen
                                                                                          Norman Group, Social Business Council, NetStrategy/JMC
- Source: McKinsey
  and Frost & Sullivan

(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.                                                                                                             25
Dachis Group




Hundreds of public social networks...




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                                                                  ...channel fragmentation   26
Recent Examples of Social Media Transformation




® 2012 Dachis Group                              27
Dachis Group




                                                                  Status as of December, 2011




                              Source: Alcatel-Lucent

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Dachis Group




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Dachis Group




                                21% increase in bottom line in Q4 2011

(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.
Dachis Group


                                                                  “We have a very specific, very
 Legal Industry: Case Study                                       educated group of people who are
                                                                  going through the biggest crises of
                                                                  their lives, all with the same needs,
 • Roberts & Durkee                                               all needing the same information…
 • A Florida based law firm                                        and I needed to be able to get that
       specializing in product                                    information out in public very
       liability, construction defects &                          quickly.”
       commercial & insurance litigation
 •     Wanted to get the word out about the 2001 China
       toxic drywall situation
 •     Employed a sophisticated multi-channel social
       media outreach program
 •     Social media discussions of the issue led to high
       SEO and stream of prospects needing help
 •     Led to over hundred major new cases in a short
       time
 •     “We get about half of our new cases through our
       blog.” - David Durkee, Managing Partner

(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.
Dachis Group




                                                  Organizations that
                                                  extensively use social
                                                  media have 1.6 times
                                                  higher profit growth.

                                                  -Frost and Sullivan




(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.
Dachis Group




 Results for non-profits as well




(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.
Dachis Group




 Investments are still nascent for non-profits

• 98% have Facebook page with average
     community size of over 8k fans.
•    Average Facebook and Twitter communities
     grew by 30% and 81%, respectively.
•    Average value of a Facebook Like is $214.81
•    73% allocate 1/2 a full time employee to
     managing social networking activities.
•    43% budget $0 for their social networking
     activities.
•    The top 3 factors for success are: Strategy,
     prioritization, dedicated staff
      Blackbaud Survey, 2012




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Dachis Group




Fully social organizations get outsized benefits




                           Source: 2011 McKinsey Web 2.0 Survey




(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.   35
Dachis Group




The biggest challenge: Engaging at scale




(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.   36
Dachis Group




The Cloud Is Increasingly Subversive
•     It’s in our worker’s homes
•     It’s on their laptops and PC at work
•     It’s in our worker’s pockets
•     It’s the world’s largest IT department
•     It has all the data
•     It has all the apps
•     It has all the people




(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.   37
Dachis Group




A new mindset has arrived: Consumerization
•     “It’s not so hard, I can do this myself.”                           DIY
•     “There’s an app for that.”
•     “I’ll just install this myself.”
•     “What’s the URL for that?”
•     “We’ll ask for forgiveness instead of permission.”
•     “This app is way too hard to use. I’ll use my own.”

                    Simple                                        Fast   Easy
                                                        And Works
                                                         The Way
                                                      They Want It To
(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.                 38
Dachis Group




A tidal wave of data
• 80-90% of IT
  information is not
  accessible
• The amount of
  information today is
  just a trickle
  compared to what it
  will be in 2-3 years
• It will require all new
  technologies and
  skills that IT
  departments don’t
  have
• Google Search and
  Analytics has taught
  all of us how easy it
  should be

(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.   39
Dachis Group




Our information landscape is now measured in
millions of exabytes
                              1 EB = 1,000,000,000,000,000,000 B = 1018 bytes = 1 billion gigabytes = 1 million terabytes


• Social ecosystems are largely responsible today.
• Soon it will be sensors that are the dominant data
  source.
• The good news: Information is no longer
  submerged.
• However, it is increasingly becoming an onslaught.
                       Visible
                     Knowledge       Us




(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.                                                             40
Dachis Group




“Information overload is not the problem. It’s
filter failure.” - Clay Shirky




(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.   41
Dachis Group




(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.   42
Dachis Group




Getting value from Big Data
• Obtain simple, easy to use business
      intelligence tools anyone can use
-     Don’t forget Google is a big data app
•     Should be cross silo
•     Must integrate internal
      and external data
•     Must provide actionable business-level insights,
      not just raw stats
•     Some existing BI tools can do this
•     Then “Moneyball” your business processes
•     But brand new services will typically bring this to
      your organization



(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.   43
Industry: Finance
                  Last year, WiseWindow, a syndicated data provider, provided its

    The Story:    real-time social media sentiment measurement technology, Mobi,
                  across Bloomberg's network of 300,000 desktop terminals.
                  WiseWindow showed social media sentiment correlated with stock
                  returns, saying “Only the aggregate opinions from ALL sources
The Motivation:   are truly predictive of an industry's stock prices." Their social
                  data analysis was found to boost investment returns by over
                  30% annually.
Industry: Disaster Management
                  In 2011, when the 5.8 magnitude earthquake hit Virginia, Twitter
    The Story:    turned out to be the first and richest source of data, even over
                  the official U.S. Geologic Survey.
                  Many visualizations have been created to show how the
                  information about natural disaster (see the Wall Street Journal
The Motivation:   example below, on the Virginia earthquake) The U.S. Geologic
                  Survey is now exploring how to use social media to augment its
                  own reports, which take 2-20 minutes to issue.
Industry: Telecommunications
                          T-Mobile wanted to get out ahead of customer defections to
       The Story:         other carriers. They needed an accurate and scalable source of
                          information. They looked to social media.

                          The firm integrated big data across their IT systems, using near

    The Results:          real-time the analysis of 33M customer data records, web logs,
                          billing data and social media information. The result: The company
                          was able to cut customer defections in half in a single quarter.




Source: Financial Times
So. How Do We Get There?




® 2012 Dachis Group                   47
Dachis Group




For IT, tech change today is nearly unsustainable




(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.   48
Dachis Group




Rethinking tech adoption
• Ignoring technology change isn’t the
      answer
•     Maintaining backlogs isn’t the answer
•     Giving up isn’t the answer
•     Proceeding in the same direction isn’t the
      answer
•     Letting everyone do whatever they want
      isn’t the answer

• Should we look at new models for IT?




(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.   49
Dachis Group




Facing Reality:
IT is becoming pervasive and user-driven
• In 2000, only 10% of IT was unsanctioned
  or outside of central control
• Today that’s 30% and climbing quickly.




                                                                                   CoIT


                                                                                Traditional
                                                                                    IT

                          2000                                    2010   2013

(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.                               50
Dachis Group




We Must Become Resilient to Constant Change




                             There is great economic and social value
                                 in achieving this (in pink above)
(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.         51
Dachis Group




How do we design for loss of control?
• “Make change an integral function. Native.”
        - JP Rangaswami


                                                               frequent
                                                               adaptive
                                                                course            cycles of
                                                              corrections          change

                                                                    refinement
                                                       growth

                                                                     disruption
                                                       renewal




(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.                               52
Dachis Group




The Future of IT: Consumerization & Cooperation
                                                   • Broad enterprise uptake of consumer tech
                                                   • Business-led solutions with IT support                 •   Consumerization
                 CoIT                              • Disruptive software distribution models
                                                   • IT as enabling business infrastructure                     of the workplace
                                                                                                            •
                                                   • Exponential increases in apps/devices
                                                   • Decentralized governance                                   Rise of shadow IT
                                                               pressure to
                                                                 change                                         (10% ten years
                                                Tec                          Social Computing                   ago, nearly a 3rd
                                                                                                                today)
                                                    h
                                                                              Consumer Tech
                 Enterprise Evolution



                                                    nol


                                                                                                            •
                                                      ogic

                                                                                Shadow IT Adoption              SaaS makes
                                                          al


                                        narrowing
                                                                                  Cloud Computing/SaaS          enterprise cloud
                                                            Dis


                                           gap
                                                                                                                apps just a URL
                                                               rup



                                                                                     Next-Gen Smartphones
                                                                                                                away
                                                                   tion




                                                                                       App Stores
                                                                                                            •   Smartphones the
                                        The Business/IT                                                         new “IT dept in
                                            Divide
                 Line                       control vs. progress                                                your pocket”
                  of
                                              profit center vs.
                                                 overhead
                                            change backlog
                                                                      IT
                                                                     Dept.
                                                                                                            •   Tech savvy business
               Business                    lack of alignment                                                    users leading the
                                          unlike competencies
                                           differing priorities                                                 charge with their
                                         Common Ground                                                          own vision
Dachis Group




Getting There
• Option #1: Don’t change. New tech will
     route around you.
•    Option #2: Deliberately give up all
     non-essential control.
-    But make it secure and safe.
•    Empower workers and business partners on the edge:
     It fundamentally changes what’s possible
•    Give everyone simple, easy to understand rules of
     CoIT engagement for social, mobile, and cloud.
•    Lay the foundation for managing and governing
     10-100x more IT and data.
•    Throw out the traditional IT playbook & go “emergent.”
•    Identify CoIT skills, then cultivate or hire for them.
•    Become a change agent and an IT revolutionary. You
     probably won’t have your job in it’s current form long
     anyway.
Thank you
Dachis Group




Also See: Social Business By Design
• Published May, 2012
• From John Wiley & Sons
• The definitive management
      strategy guide and handbook
      on social business.
•     Explores major real-world
      successes and how to
      emulate them..
•     The most complete and
      business-focused statement
      on what social business is
      and why it’s strategically
      vital.
•     Recently #1 in Amazon’s Hot
      New Releases
•     Companion Web site at
      http://socialbusinessbydesign.com
(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.   56

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ASAE Tech Conference 2012 Closing Keynote on Disruptive Tech

  • 1. The Challenges and Opportunities of Business in the Disruptive Tech Era Closing Keynote by Dion Hinchcliffe (@dhinchcliffe)
  • 2. Introduction Spring 2012 Dion Hinchcliffe • ZDNet’s Enterprise Web 2.0 • http://blogs.zdnet.com/Hinchcliffe • ebizQ’s Next-Generation Enterprises • http://www.ebizq.net/blogs/enterprise •• Chief Strategy Officer http://dachisgroup.com • mailto:dion.hinchcliffe@dachisgroup.com • : @dhinchcliffe ® 2012 Dachis Group 2
  • 3. To continue this discussion (and for slides): Hashtag: #tech12 gh1 ® 2012 Dachis Group 3
  • 4. Dachis Group The good news: Technology is driving business productivity (cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved. 4
  • 5. Dachis Group But is this coming from traditional IT? (cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved. 5
  • 6. Dachis Group Is IT even leading innovation today? (cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved. 6
  • 7. Dachis Group Yet 60% of CIOs believe they should be driving growth and productivity. Source: Deloitte Survey, 2011 (cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved. 7
  • 8. Dachis Group But technology change is happening faster than ever before • A tsunami of new mobile devices and technologies • A vast wave of social media • The rumbles of cloud computing and SaaS • The shift to DIY • A flood of Big Data • Consumerization! (cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved. 8
  • 9. Dachis Group A perfect storm of technology change (cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved. 9
  • 10. Dachis Group Happening almost all at once (cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved. 10
  • 11. Dachis Group Pervasive disruption is here... (cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.
  • 12. Dachis Group Another Way of Looking At All This World Workers IT (cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved. 12
  • 13. Dachis Group New Digital Engagement Channels Are The Focus And where the value is... (cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved. 13
  • 14. Dachis Group The channel shift has been global 1.3 From: Social Business By Design, 2012 billon people (cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved. 14
  • 15. Dachis Group Yet businesses are still fairly immature with digital Maturing Competent Webinars online video big data gamification direct mail P2P video cloud social media mobile apps Immature (cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.
  • 16. Dachis Group Is all this change worth it? Pace of Technology Change Life Expectancy of S&P 500 Company Human Population Growth (cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.
  • 17. Dachis Group Key data point #1: Mobile • Smart mobile devices outshipped PCs in early 2011 • Tablets are expected to on par with PCs by 2015 • Smart mobility strategies (particularly the iPad) have now become a top priority of most Fortune 500 CIOs • Global mobile data going geometric is going to be the largest challenge to growth and use • App stores are creating all new conduits between IT suppliers and workers (cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved. 17
  • 18. Dachis Group Mobile Internet Ramping Up Faster Than Desktop Internet by 5x Source: Mary Meeker, Morgan Stanley (cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.
  • 19. Mobile Business Strategy | June 2010 Channel Fragmentation Is Now The Norm + 400 social networks with over 1 million users = 2 billion mobile Internet users + 100 million aggregate audience of about 900 million next-gen smart phone users across hundreds of device types Have Become The De Facto Primary Channels for Customer and Worker Engagement ® 2010 Dachis Group. Confidential and Proprietary 19
  • 20. Dachis Group The Risks of Inaction (cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.
  • 21. Dachis Group Opportunity - The Stories • Augmented Reality • Real-time Translation • The “Taxi” Button • Multi-point Video Conferencing • The CRM “lite” app & “walking the line” • Business intelligence (cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.
  • 22. Dachis Group The Smart Mobility Lesson • Mobility isn’t just about computing that can move around • It’s a fundamental re-invention of computing • All new possibilities now exist • We must reinvent our businesses around what these new platforms make possible (cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.
  • 23. Dachis Group Why Smart Mobility is qualitatively different • Sensors (and lots of them) • Always connected • Location awareness in 3D space • App stores • Long battery life • Always on • Touch-based interfaces • Voice control • New operating systems (cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.
  • 24. Dachis Group The Take-Aways for Mobile • Mobile first, mobile apps, on any device (BYOD, BYOA) • Build the “button” for your business • Enable customers and workers to self- service with apps and data • Rethink business solutions for what mobile devices are uniquely capable of • And do it quickly, though you do have a (small) window of opportunity to learn Do this and avoid smart mobility (cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.
  • 25. Dachis Group Key data point #2 The Adoption Rates of E-mail, Social Networks, and E2.0 • Social is now the dominant form of 1B Internet 100% communication on projected the planet 750M 75% Enterprises Global Users Percent of • Enterprises are 2-4 imate years behind the high est 50% rest of the world. 500M low estimat e • Yet data shows 25% that revenue of 250M social businesses 2006 2007 2008 2009 2010 2011 is 20+% higher on average. Consumer Social E-mail Enterprise 2.0 Profitability is Networks better too. Sources: comScore, Hitwise, and The Radicati Group, Forrester, APC, Intellicom, Neilsen Norman Group, Social Business Council, NetStrategy/JMC - Source: McKinsey and Frost & Sullivan (cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved. 25
  • 26. Dachis Group Hundreds of public social networks... (cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved. ...channel fragmentation 26
  • 27. Recent Examples of Social Media Transformation ® 2012 Dachis Group 27
  • 28. Dachis Group Status as of December, 2011 Source: Alcatel-Lucent (cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.
  • 29. Dachis Group (cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.
  • 30. Dachis Group 21% increase in bottom line in Q4 2011 (cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.
  • 31. Dachis Group “We have a very specific, very Legal Industry: Case Study educated group of people who are going through the biggest crises of their lives, all with the same needs, • Roberts & Durkee all needing the same information… • A Florida based law firm and I needed to be able to get that specializing in product information out in public very liability, construction defects & quickly.” commercial & insurance litigation • Wanted to get the word out about the 2001 China toxic drywall situation • Employed a sophisticated multi-channel social media outreach program • Social media discussions of the issue led to high SEO and stream of prospects needing help • Led to over hundred major new cases in a short time • “We get about half of our new cases through our blog.” - David Durkee, Managing Partner (cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.
  • 32. Dachis Group Organizations that extensively use social media have 1.6 times higher profit growth. -Frost and Sullivan (cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.
  • 33. Dachis Group Results for non-profits as well (cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.
  • 34. Dachis Group Investments are still nascent for non-profits • 98% have Facebook page with average community size of over 8k fans. • Average Facebook and Twitter communities grew by 30% and 81%, respectively. • Average value of a Facebook Like is $214.81 • 73% allocate 1/2 a full time employee to managing social networking activities. • 43% budget $0 for their social networking activities. • The top 3 factors for success are: Strategy, prioritization, dedicated staff Blackbaud Survey, 2012 (cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.
  • 35. Dachis Group Fully social organizations get outsized benefits Source: 2011 McKinsey Web 2.0 Survey (cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved. 35
  • 36. Dachis Group The biggest challenge: Engaging at scale (cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved. 36
  • 37. Dachis Group The Cloud Is Increasingly Subversive • It’s in our worker’s homes • It’s on their laptops and PC at work • It’s in our worker’s pockets • It’s the world’s largest IT department • It has all the data • It has all the apps • It has all the people (cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved. 37
  • 38. Dachis Group A new mindset has arrived: Consumerization • “It’s not so hard, I can do this myself.” DIY • “There’s an app for that.” • “I’ll just install this myself.” • “What’s the URL for that?” • “We’ll ask for forgiveness instead of permission.” • “This app is way too hard to use. I’ll use my own.” Simple Fast Easy And Works The Way They Want It To (cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved. 38
  • 39. Dachis Group A tidal wave of data • 80-90% of IT information is not accessible • The amount of information today is just a trickle compared to what it will be in 2-3 years • It will require all new technologies and skills that IT departments don’t have • Google Search and Analytics has taught all of us how easy it should be (cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved. 39
  • 40. Dachis Group Our information landscape is now measured in millions of exabytes 1 EB = 1,000,000,000,000,000,000 B = 1018 bytes = 1 billion gigabytes = 1 million terabytes • Social ecosystems are largely responsible today. • Soon it will be sensors that are the dominant data source. • The good news: Information is no longer submerged. • However, it is increasingly becoming an onslaught. Visible Knowledge Us (cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved. 40
  • 41. Dachis Group “Information overload is not the problem. It’s filter failure.” - Clay Shirky (cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved. 41
  • 42. Dachis Group (cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved. 42
  • 43. Dachis Group Getting value from Big Data • Obtain simple, easy to use business intelligence tools anyone can use - Don’t forget Google is a big data app • Should be cross silo • Must integrate internal and external data • Must provide actionable business-level insights, not just raw stats • Some existing BI tools can do this • Then “Moneyball” your business processes • But brand new services will typically bring this to your organization (cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved. 43
  • 44. Industry: Finance Last year, WiseWindow, a syndicated data provider, provided its The Story: real-time social media sentiment measurement technology, Mobi, across Bloomberg's network of 300,000 desktop terminals. WiseWindow showed social media sentiment correlated with stock returns, saying “Only the aggregate opinions from ALL sources The Motivation: are truly predictive of an industry's stock prices." Their social data analysis was found to boost investment returns by over 30% annually.
  • 45. Industry: Disaster Management In 2011, when the 5.8 magnitude earthquake hit Virginia, Twitter The Story: turned out to be the first and richest source of data, even over the official U.S. Geologic Survey. Many visualizations have been created to show how the information about natural disaster (see the Wall Street Journal The Motivation: example below, on the Virginia earthquake) The U.S. Geologic Survey is now exploring how to use social media to augment its own reports, which take 2-20 minutes to issue.
  • 46. Industry: Telecommunications T-Mobile wanted to get out ahead of customer defections to The Story: other carriers. They needed an accurate and scalable source of information. They looked to social media. The firm integrated big data across their IT systems, using near The Results: real-time the analysis of 33M customer data records, web logs, billing data and social media information. The result: The company was able to cut customer defections in half in a single quarter. Source: Financial Times
  • 47. So. How Do We Get There? ® 2012 Dachis Group 47
  • 48. Dachis Group For IT, tech change today is nearly unsustainable (cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved. 48
  • 49. Dachis Group Rethinking tech adoption • Ignoring technology change isn’t the answer • Maintaining backlogs isn’t the answer • Giving up isn’t the answer • Proceeding in the same direction isn’t the answer • Letting everyone do whatever they want isn’t the answer • Should we look at new models for IT? (cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved. 49
  • 50. Dachis Group Facing Reality: IT is becoming pervasive and user-driven • In 2000, only 10% of IT was unsanctioned or outside of central control • Today that’s 30% and climbing quickly. CoIT Traditional IT 2000 2010 2013 (cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved. 50
  • 51. Dachis Group We Must Become Resilient to Constant Change There is great economic and social value in achieving this (in pink above) (cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved. 51
  • 52. Dachis Group How do we design for loss of control? • “Make change an integral function. Native.” - JP Rangaswami frequent adaptive course cycles of corrections change refinement growth disruption renewal (cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved. 52
  • 53. Dachis Group The Future of IT: Consumerization & Cooperation • Broad enterprise uptake of consumer tech • Business-led solutions with IT support • Consumerization CoIT • Disruptive software distribution models • IT as enabling business infrastructure of the workplace • • Exponential increases in apps/devices • Decentralized governance Rise of shadow IT pressure to change (10% ten years Tec Social Computing ago, nearly a 3rd today) h Consumer Tech Enterprise Evolution nol • ogic Shadow IT Adoption SaaS makes al narrowing Cloud Computing/SaaS enterprise cloud Dis gap apps just a URL rup Next-Gen Smartphones away tion App Stores • Smartphones the The Business/IT new “IT dept in Divide Line control vs. progress your pocket” of profit center vs. overhead change backlog IT Dept. • Tech savvy business Business lack of alignment users leading the unlike competencies differing priorities charge with their Common Ground own vision
  • 54. Dachis Group Getting There • Option #1: Don’t change. New tech will route around you. • Option #2: Deliberately give up all non-essential control. - But make it secure and safe. • Empower workers and business partners on the edge: It fundamentally changes what’s possible • Give everyone simple, easy to understand rules of CoIT engagement for social, mobile, and cloud. • Lay the foundation for managing and governing 10-100x more IT and data. • Throw out the traditional IT playbook & go “emergent.” • Identify CoIT skills, then cultivate or hire for them. • Become a change agent and an IT revolutionary. You probably won’t have your job in it’s current form long anyway.
  • 56. Dachis Group Also See: Social Business By Design • Published May, 2012 • From John Wiley & Sons • The definitive management strategy guide and handbook on social business. • Explores major real-world successes and how to emulate them.. • The most complete and business-focused statement on what social business is and why it’s strategically vital. • Recently #1 in Amazon’s Hot New Releases • Companion Web site at http://socialbusinessbydesign.com (cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved. 56