Social Business
Social networks and business outcomes: The search for value
The social trend Social business is blooming Business model view
contents
The Social Trend ...................................................................................4 Social Business is Blooming..................................................17 Business Model View ...................................................................24 Global Snapshots ............................................................................. 34 BBVA & Social Business............................................................ 42 Innovation Forecast ...................................................................... 45 In Depth.......................................................................................................50 Sections ........................................................................................................52 Trending Issues.............................................................................52 Technology Trends .................................................................59 Social Business & Banking event .................................. 63 BBVA Invest in innovation .....................................................64 Credits ...........................................................................................................66
social trend
04
The
Some say that we, humans, have always been social. The rise of social technologies enables people to finally fulfill their innate desire to become more connected to one another. The possibility of managing the positive effects of social networks is upon us. The first wave of social technologies has firmly been planted in everyday experiences in both developed and developing economies. The world is rapidly becoming social and businesses need to be prepared.
The
Improved communication and collaboration through social technologies could raise productivity of knowledge workers by 20 to 25 percent
70% of companies
28 hours
writing emails, searching for information, and collaborating
Each week,
$6.6 trillion
per year.
$256-423 billion
annually.
90%
Source: McKinsey Global Institute | The Social Economy: Unlocking value and productivity through social technologies, July 2012.
06
The
The
INTEREST OVER TIME The number 100 represents the peak search volume Search terms
Social Analytics Social Software Social Commerce Social Network Analysis Mobile Collaboration Client Gamification Cloud Collaboration Services Enterprise Internet Reputation Manegement Content Analytics Enterprise File Sharing Social Media Metrics Activity Streams Social Content Social Expertise Location and Management Cloud Synchronization Content Social Learning Platform Social Media Distribution Simultaneous Co-Editing Tools Social TV Social BPM Social Profiles Customer-Centric Web Strategies External Community Platforms Mass Collaboration
bank facebook x
100 80
bank youtube x
bank twitter x
bank pinterest x
Expectations
Security Applications Embedded in Social Media Automatic Content Recognitiont No -Email Initiatives MDM and Social Data Persona Management
60 40 20
Technology Trigger
Slope of Enlightenment
Plateau of Productivity
January 2009
January 2010
January 2011
January 2012
Average
2-5 years
5-10 years
Source: Gartner | Hype Cycle for Social Software 2012, July 2012.
08
The
users
Smartphone Users
Smart Phone Users On your cell phone, do you regulary...
Facebook Twitter Google+ Weibo RenRen Linkedin Baboo Instagram Yelp Tumblr Flickr Orkut MySpace Foursquare Pintrest SoundCloud XING Friendster Path Get Glue
Ranking the Key Players From established players to red-hot phenoms, here is a look at how leading social media sites shake out in terms of userbase.
Based on those who own a cell phone and regulary use the internet on their phone. Pakistan not shown due to sample size. Source: PEW RESEARCH CENTER Q81e-h.
Social Networking
Social Networking: Sharing Views on Music and Movies Most Popular Do you ever use social networking sites to sharew your views about...? Music and Community movies issues Sports Politics Religion
Based on those who use social networking sites. Median % across 20 countries. Pakistan not included in calculation of median due to sample size.
10
The
*Respondents who do not use the internet. Based on total sample. Dont know/Refused not shown. Source: PEW RESEARCH CENTER Q77&Q79.
12
The
10 09 08 07 06 05 04 03 02 01
7. Social commerce
1. Co-create products
Source: McKinsey Global Institute |The social economy: Unlocking value and productivity through social technologies, July 2012.
14
The
See video
Social Business,
the next social
Make room for social business! According to Forrester, social business software will explode into a $6.4 billion business by 2016, growing from $600 million in 2010.
100 80 60 40 20 0
Social Business,
trending higher
Social business is currently a top of mind issue. It is forecasted that this trend will hit its historical high in the latter part of 2013. We should continue to expect social business to be actively discussed for the short term future, making further inroads in the c-suite.
Average
INTEREST OVER TIME The number 100 represents the peak search volume
social media social business social listening social intelligence
INTEREST OVER TIME The number 100 represents the peak search volume
Sources: Forrester | Social Enterprise Apps Redefine Collaboration, November 2011. Google Trends | December 2012.
18
Social Business,
towards a definition
According to industry pundits, successful social business initiatives need to be holistic, as they are much more than just technology issues. Getting serious about social business requires a re-think about business outcomes and the social nature of people, melding together technology, culture, and values. Here are two definitions of social business from leading companies. to-customer engagement, employee-to-employee collaboration, or supply chain optimization. Making social business work requires focus on a companys culture, connections, content exchanges, and measurement and analytics.
28%
29%
IBM
We define social business as embedding social tools, media, and practices into the ongoing activities of the organization. Social business enables individuals to connect and share information and insights more effectively with others, both inside and outside the organization. Social business tools facilitate engagement in extensive discussions with employees, customers, business partners and other stakeholders and allow sharing of resources, skills and knowledge to drive business outcomes.
14%
15%
17%
DACHIS
Social business draws on trends in technology (e.g., powerful mobile devices, widespread availability of high-speed Internet access, low cost of data storage), work (e.g., always-on culture, globalization), and society (e.g., propensity to share). Companies should care about social business because they can improve business outcomes ... The core principles touch on all areas of a business, whether for business-
bY INDUSTRY
Entertainment, Media and Publishing IT and Technology Telecommunications / Communications Education Professional Services Consumer Goods
19% 17% 14% 14% 14% 10% 9% 7% 23% 23% 29% 37%
63% 40%
18%
Healthcare Services
Today
Source: MIT Sloan Management Review & Deloitte | Social Business: What Are Companies Really Doing? 2012.
20
Sources: Dachis Group. IBM Institute for Business Value | Business of Social Business: What works and how its done, November 2012.
March 2013 | SOCIAL BUSINESS 21
Engage and listen. Build the community. Shift toward sales and service.
Generate sales leads and revenue
46% 69%
* Based on responses from individuals having personal experience with customerrelated social business activities Global (n=599).
Accelerate innovation
35% 61%
Capture new ideas from anyone. Use internal communities to innovate. Enable structured innovation efforts.
57% 78%
Monitor customer comments for new ideas
58% 78%
Obtain feedback from customers
46% 73%
Enable customers to submit plans/solutions
39% 63%
Enable vendor/partner interaction
40% 68%
* Based on responses from individuals having personal experience with social innovation activities (n=446).
28% 58%
Leverage external talent (e.g., crowdsourcing)
38% 72%
24% 54%
22
business
model view
Looking at social business from a business model point of view may help further understand the benefits and challenges associated with this trend. In this section, we conceptually explore the opportunities and risks of social business.
24
Key Partnerships
Key Activities
Value Propositions
Customer Relationships
Customer Segments
Facilitate cross boundary collaboration. Identify expertise. Develop employee skills. Harness distibuted knowledge. Increase employee engagement. Improve leadership effectiveness. Preserve institutional memory
Innovation.
Marketing, branding & reputation management. Customer service & audience management.
Shift towards sales & service. Capture new ideas from anyone.
Channels
Cost Structure
Revenue Streams
26
TO WHAT EXTENT DO EACH OF THE FOLLOWING FUNCTIONAL AREAS DRIVE THE USE OF SOCIAL SOFTWARE WITHIN YOUR ORGANIZATION?
MARKETING
47 % 26 % 29 % 28 % 32 % 27 % 31 % 29 % 25 % 18 % 19 % 14 % 9% 12 % 11 % 27 % 9% 24 % 25 % 9% 8% 9% 25 % 9% 10 % 8% 18 % 20 % 24 % 14 % 15 %
9%
8% 18 % 18 %
10 %
SALES
30 %
CUSTOMER SERVICE
29 %
INFORMATION TECHNOLOGY
28 % 16 % 24 % 24 % 23 % 29 % 39 % 39 % 44 % 16 %
PRODUCT DEVELOPMENT
21 %
HUMAN RESOURCES
18 %
GENERAL MANAGEMENT
16 %
OPERATIONS
13 % 8% 7%
Increased Productivity Shorter customer support cycles (30% faster support processes) Better investment decisions (20% increase in successful decisions)
Reduction Self-service support cycles (20% decrease in communication costs and 15% decrease in operational costs) Overcoming distance and time zone barriers to collaboration (20% reduction in travel and communication costs)
Cost
Source: Dion Hinchcliffe and Peter Kim | Social Business by Design, 2012.
28
Key Partnerships
Key Activities
Value Propositions
Customer Relationships
Customer Segments
Worker productivity. Data security and privacy. Unintended disclosure of company information
Brand reputation.
Key Resources
Channels
Sources: McKinsey Global Institute | The Social Economy: Unlocking value and productivity through social technologies, July 2012. Alex Osterwalder and Yves Pigneur | Business Model Generation, 2010.
Cost Structure
Revenue Streams
30
Barriers: external
External barriers impeding social software adoption:
Composite Score *
For more detailed information related to social business and its impact on business and business models, please see the following reports:
Deloitte
(MIT Sloan Management Review) | Social Business: What are they really doing?, 2012. Institute for Business Value | The Business of Social Business: What works and how its done, November 2012. Global Institute | The Social Economy: Unlocking value and productivity through social technologies, July 2012.
Recessionary economy
IBM
Barriers: internal
Internal barriers impeding social software adoption:
Composite Score *
McKinsey
Lack of management understanding No strong business case or proven value proposition Too many competing priorities
Lack of a knowledge sharing culture Lack of a robust strategy fear of challenging established norms and practices Lack of implementation skills Employee mistrust or resistance Lack of policies or governance processes Lack of incentives
Source: MIT Sloan Management Review & Deloitte | Social Business: What Are Companies Really Doing? 2012.
32
ALCATEL-LUCENT
The Jive platform was rolled out April 6. Lowe initially sent an e-mail about the service to just 125 people in the company, giving them each a log-in and inviting them to join. Membership spread from there, and Alcatel-Lucent now (July 15th, 2010) has nearly 20,000 registered Jive users. According to Lowe, about 200 to 400 people join every day. On any given day, about 1,000 people use the system in one way or another.
Source: ZDNet | Enterprise 2.0 Success: Alcatel-Lucent, January 2012.
with everyone that touches your brand. If you dont do that, I dont know what your business model is in five years.
Source: ZDNet | Social Business Success: Burberry, February 2012.
Global
Social business is currently a hot topic. In this section, well take a quick look at some early adopters of social business, followed by fly-by of some of the hottest social technology companies in the work media and social media space.
34
NEWS CORPORATION
[We saw] these trends coming together at a very macro level around what workplaces were going to be like in 2020, where internal communication was moving and the rapid rise of social networking. Through putting those three themes together, there was a really big aha! moment, in that social technology is changing the world and it will begin to challenge the way business gets done. Around the same time, we were also hearing requests from our employees they were asking to connect with people in other parts of our businesses with similar jobs to theirs so they could learn from each other and innovate faster.
Source: ZDNet | Enterprise 2.0 Success: News Corp., February 2012.
BASF
BASF has enumerated the benefits they believe they have received from their internal social business initiative. These include faster and easier access to experts, increases in the value of existing knowledge, higher worker efficiency, better collaboration, reduction in e-mail overhead, and better alignment with younger workers.
Source: ZDNet | Enterprise 2.0 Success: BASF, February 2012..
snapshots
BURBERRY
The experience would be that a customer would have total access to Burberry, across any device, anywhere. And they would get exactly the same feeling of the brand, feeling of the culture, regardless of when, where, how they were accessing the brand. Everyone now can come into Burberry World the journey and mission that Burberry is on. And for any CEO that is skeptical at all: You have to create a social enterprise today. You have to be totally connected
YUM BRANDS
While Yum! Brands itself isnt necessarily a household name, its three top brands -- Taco Bell, KFC, and Pizza Hut -- are instantly recognizable around the world. The international fast food giant is truly global with over 330,000 workers in 110 countries with a combined annual revenue in excess of $11 billion. Starting several years ago, the company realized it had significant challenges in being highly geographically distributed. Such dispersion created silos of knowledge and know-how, something that is potentially disastrous in the highly competitive industry of food service.
Source: ZDNet | Enterprise 2.0 Success: Yum! Brands., February 2012.
WORK MEDIA
YAMMER
IBM
Leading in todays business world means knowing how to work as a social business. It starts with integrating social technology into your most critical business processes. Social business technologies can help you activate your workforce to improve productivity and delight your customers to create advocates and increase revenue.
Source: IBM | Social Business, December 2012.
CEMEX
Designed to innovate and help make the company more efficient and agile by letting employees or groups of employees with similar objectives share opinions, thoughts, information, experience, knowledge and best practices.
Source: ZDNet | Social Business Success: Cemex, February 2012.
See video
The following work media platforms were analyzed in five different parameters by GigaOm: short-term work relationships, microtools, networks>processes, consumerized IT, and social communications. The benchmarked companies are presented in the order, from the highest to the lowest scores. Detailed results of the benchmark can be found at GigaOm Pro, Sector RoadMap: work media tools in 2012, published in September 2012.
Source: GigaOm Pro | Sector RoadMap: work media tools in 2012, September 2012.
Yammer is an Enterprise Social Network that brings together employees, content, conversations, and business data in a single location. Built for the enterprise and loved by users, Yammer empowers employees to be more productive by enabling them to collaborate in real-time across departments, geographies, and business applications. Employees can create groups to collaborate on projects and share and edit documents. It is a new way of working that fosters team collaboration, employee engagement, and business transformation. With a Freemium model, Yammer enables employees to voluntarily adopt the service. A premium version is available to paying customers and includes additional administrative and security controls, integration with other applications, priority customer service, and a dedicated customer success manager. More than 5 million users, including employees from 85 percent of the Fortune 500, have adopted Yammers Software-as-a-Service solution.
Source: CrunchBase | Yammer, December 2012. Yammer | December, 2012.
PODIO (CITRIX)
Combining hundreds of specialized and flexible work apps with messaging, tasks, reporting, workflow and contact management, Podio lets you build and shape the online workplace most fitting to your role. It eliminates scattered, unorganized work routines, and replaces multiple products from different companies with a single environment and a single login. Currently based in Copenhagen, Podio is building a multinational team of German, French, British, and Danish employees. Thomas Madsen-Mygdal is chair of the board of directors. Tommy Ahlers, formerly of Zyb, is CEO and investor.
Source: CrunchBase | Podio, December 2012.Podio | December, 2012.
SOCIALCAST (VMWARE)
Socialcast is a leading provider of Enterprise collaboration software to facilitate real-time employee communication while analyzing the social graph for measures of productivity. Socialcast is deployed either on-premise or on-demand using activity streams to effectively accelerate information awareness amongst employees.
Source: CrunchBase | Socialcast, December 2012. Socialcast | December 2012.
SAP
Delivering on its social strategy, SAP introduced two new offerings: the SAP Jam social software platform and the SAP Social OnDemand solution. SAP Jam enables todays workers to drive rapid business results by integrating social capabilities into their applications and daily business processes, eliminating social silos. SAP Social OnDemand transforms soMarch 2013 | SOCIAL BUSINESS 37
36
cial media conversations into rich business insights. The solution helps marketing and customer service organizations better engage with customers to increase brand loyalty, manage reputational risks and capitalize on opportunities.
Source: SAP | Press Release (31 October 2012), October 2012.
HUDDLE
Established in 2006, Huddle creates cloud-based collaboration and content management software for the enterprise. Its patent-pending intelligent technology locates and recommends valuable information to users, with no need for search. Huddle is used by more than 100,000 business and government organizations worldwide, including the central US and UK government, AKQA, HTC and Kia Motors, to securely store, share and collaborate on content with people inside and outside of their organization. Huddle can be accessed online, on desktops and on the move with BlackBerry, iPhone and iPad apps. The company is privately held and backed by venture capital firms DAG Ventures, Eden Ventures, Matrix Partners and Jafco Ventures.
Source: CrunchBase | Huddle, December 2012. Huddle | December 2012.
JIVE
Jive is the largest and fastest growing independent vendor in the Social Business Software market. Jive allows companies to engage employees, customers, and the social web. Just as social technologies have changed our personal lives, Social Business is changing how enterprises get work done. The company was founded in 2001, with its headquarters in Palo Alto, CA and offices in Portland, OR; Boulder, CO; Brentford, United Kingdom; and Frankfurt, Germany. Jive combines the power of community software, collaboration software, social networking software, and social media monitoring offerings into an integrated platform. The company is focused on solutions to increase team and work productivity. Jive makes it easy for groups to brainstorm, share ideas and see what everyone is working on. The product includes team member blogs, wiki-docs for group editing and discussion tools. Recent versions include video, analytics, and social media monitoring. Jive is backed by Sequoia Capital and KPCB.
Source: CrunchBase | Jive, December 2012. Jive | December 2012.
CHATTER
Chatter is a social platform that integrates with Salesforces infrastructure and development platforms. Chatter is a social network for the company. It give users access to real-time information about whats going on in the company.
Source: CrunchBase | Chatter, December 2012. Salesforce Chatter | December 2012.
ORACLE
Businesses are becoming more social every day. Its not a matter of when to become a social business, but how to become a social business. To accomplish this, CIOs need to help create engaging user experiences that integrate yesterdays enterprise applications with todays social technologies. Architected correctly, companies can solve business problems more quickly, resulting in increased innovation and greater sales.
Source: Oracle | Social Business, September 2012.
CISCO
The new business collaboration workspace is a platform of communications and collaboration capabilities that can be delivered to every user, regardless of their location or device. What is new is that this new business collaboration workspace is inherently:
Mobile:
Users access the tools and information when and where they need them Social: Enterprise social software and collaborative platforms connect users Visual: The addition of video enhances communications Virtual: Deliver applications and data securely and reliably from clouds
Source: Cisco | Collaboration, December 2012.
38 March 2013 | SOCIAL BUSINESS 39
Social media companies are continuing to evolve. There are seven major business categories for social media: platform, publishing, sharing, playing, networking, buying, and localization. for each category, we list some of the leading brands. Along with devices (PCs, SmartTVs, Smartphones, tablets, etc.), connectivity, and interactions, these categories make up the social media ecosystem.
Source: Fred Cavazza | Social Media Landscape 2012, February 2012.
SOCIAL MEDIA
SOCIAL LISTENING
Radian6
COLLABORATION
Google Skype Box.net Huddle Zoho
SOCIALIZING ERP
Oracle LotusLive
PLATFORMS
Facebook Twitter Google+
PLAYING
Electronic Zynga Playdom Playfish
BUYING
Arts
Hunch TripAdvisor PowerReviews BazaarVoice Polyvore Blippy Baasket
PUBLISHING
WordPress Wikipedia Blogger TypePad Tumblr Quora Posterous Wikia
(Salesforce) (Oracle)
Connections
Internet (Oracle)
(Oracle)
Cognos Kosmix
Insight (IBM)
(purchased by Walmart)
Quad StreamWork
SHARING
Pinterest Spotify YouTube Instagram Dailymotion Vimeo Slideshare Scribd Flickr Digg Delicious
Kobojo Digital
CROWD LABOR
Clickworker CloudFactory CrowdComputing CrowdFlower CrowdSource Houdini Humanoid
LOCALIZATION NETWORKING
Viadeo LinkedIn myYearbook NetLog Classmates Tagged Badoo MySpace DisMoiOu SCVNGR Foursquare Plancast Yelp Path
Systems
(acquired by CloudFactory)
(formerly CloudCrowd)
40
Social networks are much more than Facebook, Twitter, Google+ or LinkedIn.
In essence, they are communities of people gathered around common interests. Overall, BBVAs communities in social networks exceed four million users, grouped around themes in which the bank can add value to the conversation. Thus, the objectives of notoriety and affiliation with the brand on the Internet improve - but we cant just stop there. The next step is to ensure users of our communities benefit directly from their participation in them, in a way that is genuinely useful to the business of our clients. If they grow, we also grow. Under this premise we have developed Yo soy empleo (I am employment), a community that allows its members to combine efforts with a clear objective: to generate jobs in Spain.
Not only can Social technologies be applied to customer-facing applications (social media), they may be used for employeefacing and third-party facing applications. In 2012, BBVA made headlines by adopting Google Apps for its 110,000 employees; transforming the way work is done in the enterprise, and now, BBVA is launching Yo Soy Empleo, using social technologies to collaborate with thirdparties to create value for the community.
42
he community aims to match demand with supply, to link those companies that in spite of the crisis continue to grow with those individuals who are seeking for a job in these complicated times. BBVAs contribution to the community is not just limited to the creation of a social platform connecting both parts - it includes an incentive scheme for new hires, with direct financial support for each job created, a business advisory service and a training plan participated by the countrys leading business schools. In other words, the aim is to bring together several existing communities that share a same interest - the creation of jobs -, and try to find common solutions which may benefit all their members. Therefore, we use typical social web tools to obtain a greater benefit for the community, with a system that allows to join efforts in order to obtain a common asset. Social platforms are nothing but a meeting point. In this case we believe that gathering in a same virtual place all the parties involved in the generation of jobs and providing differentiated support to help achieve the ultimate goal can be beneficial for everyone. This is not something BBVA is managing alone, since the proper performance of a community depends on all its users. That is why, from the beginning of the project, I am employment counts with the implication of companies that demand workforce; of Infoempleo, as facilitator in the recruitment processes; of leading business schools, for the training plans; of BBVA Empresas, for the advisory service, etc. Once launched, anybody willing to contribute to meet the objective of generating jobs will have the door of the community open in Yosoyempleo.es.
The social trend is part of something bigger ... much bigger: the coming convergence of social, mobile, cloud, and big data. Many industry analysts are envisioning major disruptions caused by the coming together of these four major trends, which will change the way we live, work, and play. Whether it is known as the Nexus (Gartner) or the 3rd Platform (IDC) or by any other name, the ultimate mashup is set to shine in the era of the customer-centricity. When peeking into the convergent future with a social focus, keep the following in mind:
March 2013 | SOCIAL BUSINESS 45
44
New mindsets
Leaders must lead the change from industrial-based models of productivity (product-centric) towards knowledge-based models of productivity (customer-centric).
FROM
TO
Years Typical thing
UNDERSTANDING OF BUSINESS
Patterns of interactions, user models, how work really gets done, community formation Communities of work, social networks, intra-/extracompany, customers
1960-1975
Mainframe
A batch transaction
IBM
Microfilm
FOCUS OF IMPACT
Systems of Record
1975-1992
Mini
POLICY APPROACH
A departamental process
Digital Equipment
Image Management
TECHNOLOGY DEPLOYMENT
1992-2001
PC
A document
Microsoft
Document Management
Systems of Engagement
DECISION MAKING
2001-2009
Internet
A web page
Content Management
ECONOMICS OF IMPACT
source: McKinsey Global Institute | The Social Economy: Unlocking value and productivity through social technologies, July 2012.
2010-2015
A conversation
source: Geoffrey Moore, TCG Advisors & AIIM | Systems of Engagement and the Future of Enterprise IT: A Sea of Change in Enterprise IT, 2011.
46 March 2013 | SOCIAL BUSINESS 47
The conversation itself is the way the work gets done in the enterprise.
15% of all people searches on LinkedIn are for their own colleagues.
Participation can take any direction. be prepared for it, and take advantage of it.
The number one reason people leave their organization is because they dont feel connected.
At work, we dont want to cc: everyone on a email, because its rude. but we should. Its not a secret.
Users are people. No matter where they are, theyre just people.
Listen to and engage continuously with all relevant social business conversations.
The tone and language of social business are most effective when theyre casual and human.
10
The most effective social business activities are deeply integrated in the flow of work.
is a transitional technology. Its just a matter of what transition youre in middle of.
Every technology
As the power of the individual increases, company culture is going to be the single most important factor to success.
Your company should have a six- to 12-month plan and a 10-year plan. Nothing else matters.
source: Dion Hinchcliffe and Peter Kim | Social Business by Design, 2012.
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In depth
A list of links to other useful tools and resources that you may find useful as a supplement to the information offered on the Social Business report.
On the Web
Badoo badoo.com Bank Systems & Technology | Social Business: 4 Ways Socia Media is Transforming Banking, October 2011. banktech.com Blogger blogger.com Bloomberg | Dell Presidents Advice to CEOs: Get Social, November 2012. go.bloomberg.com Fred Cavazza.net | Social Media Landscape 2012. fredcavazza.net Cisco Collaboration cisco.com CMS | The Pursuit of Social Business Excellence Is Not About Technology, November 2012. cisco.com Dachis Group dachisgroup.com Dachis Group | Social Business Index socialbusinessindex.com Daily Motion dailymotion.com Delicious delicious.com Digg digg.com Facebook facebook.com Financial Brand | Google Trends Reveal Banking Insights, Social Media Zeitgeist, October 2012. thefinancialbrand.com Financial Post | Social Business Changes the Dynamics of Collaboration, November 2012. business.financialpost.com Flickr flickr.com Forbes | Executives: Get Social or Get Out, November 2012. forbes.com Forbes | How to Jump to a Social Business Model, December 2012. forbes.com Forbes | Rethinking the Customer Journey in a Social World, November 2012. forbes.com Forbes | Social Business Enlightenment, November 2012. forbes.com Forbes | The Move from Systems of Record to Systems of Engagement, August 2012. forbes.com Forbes | The Rise of Social Enterprise, July 2012. forbes.com Foursquare foursquare.com GigaOm | Pinterest paves the way for new business platform with brand options, November 2012. gigaom.com Google Trends google.es Google+ plus.google.com The Guardian | How Social Business is Changing the Way We Work, December 2012. guardian.co.uk Harvard Business Revew Blog | How to Find New Competitive Knowledge in Social Media, December 2012. blogs.hbr.org Harvard Business Revew Blog | Innovation Isnt Tied to Size, but to Operating Rules, October 2012. blogs.hbr.org Harvard Business Revew Blog | Social Media Will Play a Crucial Role in the Reinvention of Business, November 2012. blogs.hbr.org Huddle huddle.com IBM Social Business -01.ibm.com InformationWeek | 10 Signs Youre Not a Social Business, December 2012. huffingtonpost.com Instagram instagram.com Jive jivesoftware.com LinkedIn LinkedIn.com Oracle Social Business oracle.com Path path.com Pinterest pinterest.com Podio company.podio.com Posterous posterous.com Quora quora.com Salesforce Chatter salesforce.com SAP Social Business blogs.sap.com SAP | SAP Community Network, December 2012. facebook.com/sapcommunitynetwork Scribd scribd.com Slideshare slideshare.net Socialcast socialcast.com Spotify spotify.com TechCrunch | Another Social Media Inbox? Source Metrics Says This Ones All About Actionable Mentions ..., November 2012. techcrunch.com TripAdvisor tripadvisor.es Twitter twitter.com Tumblr tumblr.com TypePad typepad.es Vimeo vimeo.com Wikia wikia.com Wikipedia wikipedia.org WordPress wordpress.com Yammer yammer.com Yelp yelp.es YouTube youtube.com ZDNet | Enterprise 2.0 Success: Alcatel-Lucent, January 2012. zdnet.com ZDNet | Enterprise 2.0 Success: BASF, February 2012. zdnet.com ZDNet | Enterprise 2.0 Success: News Corp., February 2012. zdnet.com ZDNet | Enterprise 2.0 Success: Yum! Brands., February 2012. zdnet.com ZDNet | Social Business Success: Burberry, February 2012. zdnet.com ZDNet | Social Business Success: Cemex, February 2012. zdnet.com ZDNet | The Social Enterprise: nine insights, November 2012. zdnet.com
50
Trending issues
In this section, readers will find summaries of the most relevant news of selected topics that have been published over the course of the month based on its relevance to the Banking industry. The summaries were prepared by the editorial board. Further information is made available for each given topic.
Mobile Banking
New Formats
vendors Combine Marketing Platforms Make Desktop Multi-Device Compatible Fully Mobilize Desktop Features Re-think Desktop Banking Design Unify the Visitor Experience
Source: thefinancialbrand.com
52
Trending issues
Mobile Payments Brands & Branding
(Starbucks): in November, Square announced was handling $10 billion in annual transactions. PayPal (eBay): PayPal CEO expects to see over $20 billion in annual sales volume in 2013.
Customer-Centricity
Crowd Finance
97% of senior executives believe that Customer Experience (CX) is critical to success
A recent survey comissioned by Oracle, Global Insights on Succeeding in the Customer Experience Era, revealed that although 93% of senior executives stated that CX is a top 3 priority in the next two years. However, only 37% of firms have CX initiative in progress and 20% opine that their program is advanced. Brian Curran, Oracles VP of Customer Experience offers his top 5 tips on how to get started:
Span Get
silos for a consistent, cross-channel experience serious about mobile Personalize interactions Get social Empower customers & employees
Source: informationweek.com
54
Trending issues
App Ecosystem New Banking Experience
Gadgetology
Big Data
56
Trending issues
Future of Work
Technology trends
The following section outlines the upcoming technologies that will change everything, with predictions on what may come of them in financial industry.
Source: fastcoexist.com
DIY
Dashlane is going further than V.me being more than just a seamless digital wallet. Considered one if the Innovation of the Year Dashlane launched a tool for doing checkout almost instantaneously, filling automatically all the fields required, all the passwords needed, the payment information of credit cards, managing multiple identities, addresses, and payment information in a extremely secure way, using any device sync with the app.
58
Technology trends
ts main feature is storing safely all our account information of all the web services in which we are already signed up. We can access to these accounts instantaneously since Dashlane will log in without press any button. All the information and passwords saved in Dashlane are protected by a master password, that is only saved and encrypted locally, not by dashlane (and it can never be recovered if its forgotten!!), by using AES-256 encryption method,used by military, financial and government institutions. Dashlane also creates new encrypted accounts credentials and generate secure passwords for services not used before, and learns a users habits for frequently visited sites, filling in password, payment
information, and shipping specs with nearly twice the accuracy of its competitors. All these features make the checkout process much more easier than any other tool, and it can be completed in almost one click, also storing the purchase information and the bill in the app for you to track your expenses.
Watch the video in youtube to see how it works:
Beyond Passwords
We are going towards a world in which we will connect to our laptops, tablets and smartphones with our biometric features. James Bonds technology is no longer science-fiction. Our patterns are data. IBM Research predicted back in December 2011 that in five years passwords would be replaced by biometric recognition processes such as digital fingerprints, retina and iris readers, voice and the geometry and veins of the hands.
This start-up, with HQ in Paris and NY, was launched in 2009, and received $5Million funding (serie A), will be demoing at Finovate Europe next month presenting this express checkout process. We will be tuned, it sounds interesting (and it works!).
ut Intel has already created a tablet with a new software including a sensor able to recognize the palm vein pattern of a person just from a simple wave of the hand.
See video
Source: Sydney Morning Herald
Sridhar Iyengar, director of Security Investigation in Intel Labs, showed this technology at the Intel Developer Forum 2012. When the device recognizes the person, all services are enabled, granting access with no need of passwords. The mechanism has accelerometers which detect if the user has moved away from the device and automatically block the session and cut the access.
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transactions done through smartphones, in continuous growth.
Sources:
IBM Research | IBM 5 in 5: Biometric data will be the key to personal security. David Nahamoo. 19/12/2011. Bloomberg | Intel seeks to eliminate computer passwords with wave of hand. Ian King. 13/09/2012. ebanking | Intel, la palma de tu mano, ser tu nueva contrasea. 16/09/2012. RSA Online Fraud Reports. September 2012. Deutsche Bank | Homo biometricus. Biometric recognition systems and mobile internet services. AThomas F. Dapp.
Social Business
Along with other key trends, social business is beggining to offer some interesting and valuable proposals. The first social wave is now consolidating and enterprises have to be ready. Make sure you dont miss it!
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Some of the corporations that have begun to develop social business policy, such as IBM or LinkedIn, will share their experiences along with BBVAs.
On March 20th, at the BBVA Innovation Center we will analyze this increasingly popular trend.
From 9:30 to 14:00 h. Plaza de Santa Brbara, 2. 28004. Madrid
Follow the conference via streaming through BBVA Innovation Center website. If youre not able to make it, search our archive for the best potos and videos on the subject, all taken during the event. www.centrodeinnovacionbbva.com
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BBVA invests in
A new strategic initiative by BBVA, by the name of BBVA Ventures, will invest $100 million in start-up companies that prove crucial for the development of the financial services industry. Entrepreneurs and venture capital investors alike are teaming up with BBVA Ventures to look for innovation and emerging trends on financial services, as well as exchanging knowledge for the industrys sake.
innovation
nvesting in start-up companies committed to new business models enables BBVA to learn and anticipate the new environments that the sector will face in the future, said Jay Reinemann, co-founding executive director for BBVA Ventures. Moreover, entrepreneurs and co-investors can use BBVAs extensive experience, brand and global distribution network to accelerate their growth. By making strategic investments in venture backed start-ups, BBVAs aim is to stimulate the research on developments in technology and emerging business models, both of which already are of capital importance for the bank. Mobility, data analytics and e-commerce, among others, are some of the key areas to be covered by the companies in portfolio, which in exchange will get soundness and the possibility to implement innovations in an experienced group with a strong international presence. We believe that the partnership model of BBVA Ventures provides the most efficient and effective access to emerging trends and disruptive innovation which ultimately maximizes shareholder value, stated Carlos Torres, head of Strategic and Corporate Development division at the BBVA Group. And it does. In early 2012, BBVA Ventures completed its first investment in Silicon Valley, through The 500 Start-ups Fund, set up by Dave McClure, former marketing executive at PayPal and a highly respected engineer and entrepreneur. Up to 300 companies have taken advantage of this investments, and its already turning up results. Simple, inDinero, PeerTransfer or WePay, are only some examples of the fruition of the programme. The BBVA Group has been investing in innovation and technology for many years now, in order to anticipate the deep transformation the financial industry is eventually undergoing. Actually, this transformation is already taking place with the development of new
digital channels and means of payment that are generating new customer relationship models. Against this backdrop, BBVAs firm commitment to new technologies through functions such as BBVA Ventures makes it one of the few banks that are ready to tackle the changes and compete in the market.
www.centrodeinnovacionbbva.com
Follow us:
www.facebook.com/centrodeinnovacionbbva twitter.com/cibbva www.youtube.com/user/centroinnovacionbbva www.slideshare.net/CIBBVA
KNOWSQUARE
Know Square is an independent managers network, both online and face-to-face, that focuses on sharing analysis, opinions, knowledge and experience appliable to managing enterprises. Date: April, 9th. 6:00 p.m. at BBVA Innovation Center
March 2013 | SOCIAL BUSINESS 65
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BBVA Innovation Edge is the first corporate magazine focused on innovation. Innovation Edge aims to explore new trends and technologies that may impact the financial industry, especially retail banking.
BBVA Innovation Edge is the result of a collaborative work done by all the people who are involved in innovation at BBVA Group.
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CONTRIBUTORS TO THIS ISSUE: Alfonso Bey Reyes Bolumar Vanesa Casadas Antonio Garca Luz Martn Carlos Mndez Alvaro Morn Manolo Moure Alicia Snchez Javier Sebastin Jose Manuel Valenzuela Mara Teresa Vzquez Ignacio Villoch Gustavo Vinacua Shang Gu Phil Yim
BBVA2012
No part of this publication can be reproduced or communicate in any form or by any platform electronic o mechanic, including photocopying, recording o any other system of storage and retrieval, without permission of the publisher, BBVA. DL: M-38720-2012
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