AFSN&OracleWhitePaper 2 Social Media at the Tipping Point -AFSN&OracleWhitePaper Contents Introduction 3 What is Social Media? 4 Leveraging Social Media: theexternalperspective 4 Leveraging Social Media: theinternalperspective 5 Where is the ROI 7 The barriers to uptake of Social Media 8 How Oracle responds to the challenge 9 Summary 9 3 Social Media at the Tipping Point -AFSN&OracleWhitePaper Introduction Accordingtoa2012McKinseysurveyof1,500C-levelsworldwide,mostsaythatthreekeytrendsindigital businessnamely,bigdataandanalytics,digitalmarketingandsocial-mediatools,andnewmobileand cloudcomputingplatforms-arestrategicprioritiesattheircompanies.Overathirdoftheseexecutives predictthatthesetechnologieswillboostoperatingprotsby10percentoverthenextthreeyears. 1 Yet whichoftheseemergingtechnologiesshouldCFOsconsiderwhenlookingtodriverealbusinessvalue? OracleandFinancialExecutivesInternational(FEI)recentlysoughttoanswerthatquestionbyasking90 NorthAmericanCFOsandseniornanceexecutivestorankthebusinessvalueofkeydigitalbusiness trendsfortheirorganization. Figure 1. CFOs rank the value of key trends in digital business Of these, which do you feel will deliver the most business value for your organization? 32 (46%) Mobiletechnologies-46% Cloudcomputing-33% 10 (14%) Socialmedia-SocialNetworking-6% 23 (33%) 4 (6%) BigData-14% Source:FEI-Oraclewebcast,August7,2012. Mobileandcloudcomputingplatformsrankedhighestintermsofbusinessvalue,earning46percent and33percentoftheranking,respectively,followedbybigdatawith14percent.CFOsonlyallocated 6percentoftheirvotestosocialmediaandsocialnetworkingtechnologies,reectingtheskepticism manyCFOsfeelaboutthevalueofsocialbusiness. MostnanceexecutivespointtothedifcultyofdevelopinganeffectiveROIstrategyforsocialbusiness initiatives,becausetraditionalnancialmetricsusedtoevaluatethepaybackonITinvestmentsarent oftenapplicabletosocialtoolsandtechnologies.Othersareconcernedwithinformationsecurity, governmentregulationsondataprivacy,andthelackofacoherentmanagementvision,strategy,and structurearoundenterprise-widesocialinitiatives. Despitetheserisks,theriskofdoingnothingwhenitcomestosocialmaybegreaterthanmanyCFOs believe.Socialnetworkingsitesnowreach82%oftheworldsonlinepopulation.Increasingly,online consumerswantasocialrelationshipwiththebrandstheyareinterestedin,notonlytolearnmore aboutacompanysproductsandservices,butalsotovoicetheiropinionsandexperiencesgood andbad. Morethan75%ofconsumershavepostedanegativecommentonasocialsiteafterapoor customerexperience,and89%haveshiftedtoanotherbrandafterabadcustomerexperience. 2 Ignore theseconsumersatyourownrisk,saysocialmediaconsultantsBarbaraGiamancoandKentGregoire, whoadvisedreadersoftheHarvardBusinessReviewthatwhilesocialmediasellinghasrisks,sitting onthesidelinesisthegreatestriskofall. 3 RecentresearchpointstothefactthatC-levelsarentsittingon thesidelines,butratherrampinguptheirsocialbusinessactivities If you were a CFO back in inpursuitofnewgrowth.A2012studybyMITSloanandDeloitte the early 1990s and I came Consultingasked3,500executivesfromcompaniesin24industries to you and said I wanted to across115countriesabouttheimpactofsocialtoolsand implement e-mail, and you technologiesontheirbusinesses.Surveyrespondentsagreedthat asked, Whats the ROI? theprimaryroleofsocialbusinesstoolsandtechnologiesisto Could you have gotten an enablecustomerserviceandhelptheircompaniesinnovatefor answer? Social media has competitiveadvantage. 4 Theyalsopredictedthattheimportanceof become table stakes. socialsoftwarewillincreaseby250percentby2015,asitbecomes integratedwithenterpriseapplications,businessprocessesand Nigel Fenwick, Forrester systemstodriveafundamentalsocialtransformationofthe Research Principal Analyst enterprise.ThisincludeschangingMarketing,Sales,Service, HR/TalentManagement,andERPbysociallyenablingthesebusinessprocesses. Justasforward-lookingcompaniesarealreadyrelyingonsocialbusinessstrategiestoinnovateinareas likecustomerserviceandcompetitiveinnovations,forward-lookingCFOsareusingsocialbusiness toolssuchascrowd-sourcingtodriveknowledgemanagement,collaboration,processimprovement, andinnovationbothwithinthenancefunctionandmorebroadlyinsidetheenterprise.Someusethe 4 Social Media at the Tipping Point -AFSN&OracleWhitePaper What is Social Business? Leveraging Social Business: TheExternalPerspective consumersentimentanalysistheytrackonFacebook,Twitter,andothersocialwebsitestovalidateor tweakproductforecasts. Thiswhitepaperexaminesthetransformationalimpactofsuccessfulsocialbusinessinitiatives, bothbeyondandwithintheenterprise.ItchallengesCFOstotakealeadershiproleinhelpingthe organizationachieverealvaluefromsocialbusinessbypartneringwithmarketing,sales,andother organizationstocreatenewwaystomeasureandmonitorinvestmentsinsocialactivities.Thiswhite paperalsoexaminestheorganizational,technological,andhumancapitalrequirementsCFOsneedto helpmakesocialbusinessprojectssuccessful,andreviewsthesolutionsOraclehasinplacetosupport socialbusinessefforts. Socialbusinessisdenedbythesocialnetworkingplatforms,socialmedia,andsocialtoolsand technologiesthatallowindividuals,companiesandotherorganizationstocollaborateandcommunicate incommunities.Facebook,Linkedin,Twitter,YouTube,andPinterestareprominentexamplesofexternal socialplatforms,butsocialbusinessalsoextendsintotheenterprisethroughsocialcollaborationtools builtintoenterpriseapplications,suchasOracleWebCenterandOracleFusionApplications. ThegrowthinthenumberofuserssharingthebestknownsocialplatformssuchasFacebookand Twitterhasbeenbreathtaking.AsofDecember2011,Facebookclaimed800millionusersworldwide, with50percentloggingoneachday.Twitterreportedanaverageof460,000accountscreatedperday lastfall,withanaverageof1billiontweetsperweek.AsofNovember2011,Linkedinhad135million membersinmorethan200countries,withtwonewusersjoiningeverysecond. 7 Usernumbersofthisscaleandsizecannotbedismissedasafad.Thesetechnologiesaredeeply embeddedinpeopleslivesandintricatelyintertwinedwitheachother.Today,consumersintheU.S., Europe,andAsiaspendmorethan2hoursdailysocializingontheirsmartphones.Celebritiesare alreadyadeptatbuildingtheirbrandutilizingsocialnetworksandcompaniesarebeginningtofollow suit.AsofDecember2011,StarbuckshadovereightmillionFacebooklikesforitsFrappuccino,and Coca-Colahadaround32millionFacebookfans. 7 ButhowdoCFOstranslatethepopularityofsocialnetworksintobottomlineimpactandtoplinegrowth? Despitetherapidriseofsocialbusinessupthecorporateboardagenda,manybusinessesareonly justbeginningtodipatoeinthewater.Whilesomeusesofsocialmediacouldbecharacterizedas experimentalandopportunistic,otherbusinesseshavenotchedupnotablesuccessesonthebackof deliberate,well-denedsocialmediastrategiesthatsupportbrandbuilding,productinnovation,and creativenewwaysofdeliveringproductsandservices. Brand building TakeforexamplethecaseofMcDonaldsandthelaunchofitsMcRib-alimited-time-offersandwich. AccordingtoRickWion,thecompanysdirectorofsocialmedia,theproductquicklyestablishedaloyal fanbaseravingabouttheproductinsocialmedia. Whathappenednextwasinspirational.McDonaldsidentiedandengagedwiththreesuperfans:one hadbuiltaFacebookpageforMcRib;anotherhadwrittenabookchapteraboutMcRib;andathirdbuilt aGooglemapofMcRiblocations,sothatotherpeoplecouldndtheproductintheirvicinity.McDonalds invitedthethreefanstoamedialaunch,connectedthemwithbloggers,andusedthemtotelltheMcRib storythroughFacebookandTwitter.ThecombinedeffortscreatedahugebuzznotonlyinMcDonalds targetaudience,butalsohadanunexpectedrippleeffect.AccordingtoWion,Peoplewereasking,what isallthisbuzzabout?IveneverhadMcRibbefore.Imgoingtotryit.Imgoingtobuyit.Thebuzzof thecorebroughtinabrandnewaudience. ThecaseofProcter&Gambleprovidesanothercompellingexampleofhowsocialmediacanbeused torevitalizeatiredbrandaswellasgeneratecompellingreturns.SalesofProcter&GamblesPepto- Bismolhadbeenatordecliningforseveralyearswhenin2010,P&Gmarketersnoticedthatsocialmedia chatteraboutthepinkindigestionrelieverwasoccurringonSaturdayandSundaymorningspresumably afterusershadoverindulgedthenightbefore.SoP&Gdecidedtotrytolurepotentialcustomersbefore
5 Social Media at the Tipping Point -AFSN&OracleWhitePaper
Leveraging Social Business: TheInternalPerspective theireatinganddrinkingbingesbytoutingtheproductonFacebookwiththeupbeatsloganCelebrate Life.Theresultwasan11percentmarket-sharegaininthe12monthsthroughfall2011. 9 Crowd-sourcing innovation DanishtoycompanyLegoGroupplannedtolaunchanewproductbasedonapopularvideogame. Butinsteadofconceptualizingtheproductinternallyviaproductdevelopment,(asitwouldhavedone traditionally),theideaforthetoycamefromanadultLegofanwhosubmittedtheideathroughLego. Cuusoo.Com,awebsitewhereLegoenthusiastssubmitandvotefornewideas.Within24hours,the newideareceived10,000votesandgotthegreenlightforproductionfromLegomanagementwithina month. 2 Delivering new products and services AmericanExpresshasstartedtoputsocialattheforefrontofeverythingthattheydofroma communicationsstandpoint.AnexampleofthattheSmallBusinessSaturdayspromotionAmerican ExpresslaunchedaftertheThanksgivingholidayin2010,tohelppromotesmallbusinessesduringthe holidayseason. Cardholdersweregiven$25giftcardstouseattheirlocalsmallbusiness,andsmall businesseswereoffered$100inFacebookadvertisingcredits.SmallBusinessSaturdayresultedin increasedsalesforthesmallbusinessesthattookpartintheschemeby27percentandgrewover1 millionfansfortheSBSFacebookPage. 5 SmallBusinessSaturdayhasnowbecomewhatmanywouldargueisthethird-largestsalesholiday afterBlackFridayandCyberMonday,intermsofreturnoninvestment.Asaresult,AmericanExpress hasseenusageofitscardnetworkgrowfrom10-25percentduringtheSmallBusinessSaturdays, helpinggeneratesubstantialadditionalrevenueforAmericanExpressandincreasedsalesforsmall businessesinlocalcommunities. ExternalusesofsocialmediatendtodominatetheheadlinesbutenlightenedCFOsarediscovering thattheinternalapplicationofsocialmediaalsoprovidesrichopportunitiesfordrivinginnovation, productivity,andprocessimprovement. Betterstillitcanactasalowrisk,lowcostentrypointintothe worldofsocial,actingasaproofofconceptbeforeapplyingsocialtoolstoexternalinteractions. BecausesocialbusinessstrategiesrankloweramongCFOsthanotherdigitalbusinesstrends,not surprisingthatreportedcasesoftheinternalapplicationofsocialtoolsinthenancefunctionare relativelyscarce.However,issuesofcommunication,collaborationandsharingbestpracticetranscend functionalboundaries.Therearemanylessonsthatcanbedrawndirectlyfromtheearlyexperiencesof pioneersinotherdisciplinesevenifthecontextisdifferent.Itmaybeinstructivetoconsiderrstwhat thecontextforsocialmediainthenancefunctionmightbe. Communication challenges in the nance function Inthetransaction-orientedworldofnance,thekeytoenhancedproductivityhasbeenthe standardizationandautomationofcorenancialprocesses;hence,theriseinpopularityofERP systems,sharedservices,andworkow.Forthelasttwodecades,theabilitytouneventfullyprocess transactionsattherstattempthassteadilybroughtdowntheaveragecostofatransactionand increasednancefunctionproductivity.Straight-through-processinghasbeenahugesuccess.But whathappenswhenatransactiondoesnotconform?Whenadisputearisesoranerroroccurs? Thecostofxingawrongtransactionisabout80percentmorethanoneprocessedcorrectlyattherst attempt.Whencracksappearinautomatedsystems,workersresorttoavarietyofcommunications methodssuchasemail,telephoneconversations,ad-hocmeetings,andwalkingthecorridorsofa buildingtogettheinformationtheyneedtoremedyaproblem.Onaverage,workersspend25percentof theirworkingdaysimplylookingforinformation. Thesamethingistrueofcoreperformancemanagementprocessessuchasnancialreporting, budgeting,planningandforecasting.Know-how,creativity,professionaljudgment,persuasion, negotiationandcommunicationarethehallmarksoftheseprocesses,butthesesofterattributesare notwellcateredtobytraditionalnancialapplications. AddingtothatproblemisthefactthatGenerationYworkers-thechildrenoftheBabyBoomersare hittingtheworkforcerightnow.Theyaresteepedintheimmediacyoftheinternet,andthespeedand 6 Social Media at the Tipping Point -AFSN&OracleWhitePaper varietyofcommunicationssuchasTwitter,Facebook,Skype,andInstantMessaging(IM).Theyhave instanteverything,choosetheinformationtheywant,andpersonalizethewaythatitisdelivered.Their leisureuseoftheinternetbearsnoresemblancetotheclunkyandinertuserexperiencewhichis commonplaceinthebusinessworld.CFOsmayndthatattractingandrecruitingtoptalentintothe nancefunctionwillbeachallengewithoutmodernsocialtools. Sowhereisthebigpay-offforCFOwhoseektodeploysocialcollaborationtoolsinthenancefunction? Althoughitisearlydays,thefollowingsixareasareonesthatholdthemostpromisebasedontheearly experiencesofrstmovers. Crowd-sourcing ideas and innovation Strategydevelopment,enhancingbusinessperformance,settingaccountingpolicies,process improvementanddeliveryofvaluetointernalcustomersintheorganizationareallareasthatrequire creativityandprofessionaljudgment.Theabilitytodrawontheskillsofthewholenancefunctionisa worthyprize.Imagineforexample,crowd-sourcingideasfortheaccelerationofthenancialreporting process,improvingmarginsinunderperformingbusinessunits,standardizingprocesses,reducing inventoryandmanagingrisk. FinancialservicesgiantCapitalOneshowedhowusingjustaprivateFacebookgroupalloweditto facilitatetwiceasmuchinteractionbetweenteammembers,aswellassharearticlesandinsightsmuch moreeffectively.AndbecauseFacebookisconnectedtoemployeessociallives,theFacebookgroup promotedconnectionthroughouttheday.ForTomPoole,managingvicepresidentofmobileandsocial mediaatCapitalOne,theFacebookinitiativesurpassedhisexpectations:Whenyouhaveanideayou shareitandyourehearingbackanhourlater.Thisislighteninginabottle. 4 Knowledge Management AccordingtoJohnHagelIII,co-chairmanofDeloittesCenterfortheEdge,successintodaysdigital economyincreasinglylieswiththosewhoknowhowtomanagetheowofknowledge.Increasingly, theabilitytosucceedhingesonparticipatinginabroaderandmorediverserangeofknowledgeows, bothinternallyandexternallytotheenterprise,notedHagelintheMITSloan/Deloittestudyonsocial business. 4 Financeprofessionalsarehighlyqualiedknowledgeworkersbuthowmuchofthatknow-howis shared?Usingsocialtools,aCFOcanencouragetheevendistributionofbestpracticeandensure thataccountingpoliciesandinterpretationofnewaccountingstandardsisrolledoutcompletelyand consistently.HewlettPackardCEOLewPlatthitthenailontheheadwhenhesaid,IfonlyHPknew whatHPknows,wedbethreetimesmoreproductive. 4 Enhanced Communication and Collaboration CFOsresponsibleformanagingdistributednancefunctionsoperatingindifferenttimezonescandraw inspirationfromtheexperienceofCraigHerkert,CEOofSUPERVALUaretailer,whousedasocialtool -Yammerinthiscase-todriveupstorerevenue. 4 Likemanydistributedorganizations,Herkertsmanagementteamstruggledtogetvisibilityofthe businessandsharebestpractice.Communicationsbetweenstoremanagersweread-hocandmeetings onlyoccurredonceayearatSUPERVALUsannualconference.UsingYammer,somestoremanagers begansharingideasandphotosofsuccessfulmerchandisedisplaysandspecials.Anexperimentrun duringtheholidayperioddemonstratedthatthatstorestakingpartintheYammerinitiativehad13 percentmorerevenuethannon-participatingstores. Anotherexampleishowsocialbusinesstoolcanstreamlinekeyprocesseslikereconciliationsorthe monthlycloseprocess.Ageneralaccountingmanagerorsupervisorlookingathowaccountbalances havechangedovertimecandrilldowntoseewhichemployeerecordedthejournalentry,thenreachout tothatemployeethroughthesocialnetworkingtoolsembeddedinOracleFusionFinancialstoverifyits accuracy.Iftheentryhappenstobeapayablesinvoice,youcouldseeandcontactthesupplierdirectfor thatinformation,savingtimeandspeedingupthereconciliationandclosingprocesses. Enterprise Search SocialtoolsembeddedinERPandothernancialsystemsraisesthepossibilityofgreatlyimproved accesstoinformationandproblemresolutionwhenthingsgowrong.Mostsocialmediaencourage userstofollowanindividualortobefollowed.Thiscanbetakenastepfurtherinanancesettingby allowingaccountingandnancepersonneltofollowapieceofmetadatasayaproductoracustomer 7 Social Media at the Tipping Point -AFSN&OracleWhitePaper Where is ROI? toretrievevitalinformationinalessstructuredway.Anance user,forexample,couldreceiveaconstantfeed(automatically) Sixty to seventy percent ofeverythingthatissaidordoneaboutthatindividualcustomer of headcount time in most orproductwithinthesystemandthenshareitwithcolleagues, functions is consumed by inthewaythatothersocialmediaallowinformationtobe handling exceptions, i.e. distributedtorelevantgroups. things that get thrown out of automated processes. Deeper Insight John Hagel III, Co-chairman, SentimentAnalysisprovidesfascinatingopportunitiesforCFOsto Deloitte Center for the Edge improvetheaccuracyofbusinessforecasts,bycombiningopinion harvestedfromsocialmediawithestablishedapproachestonancial forecasts. Itworksbysamplingexternalviewsofacompanyanditsproductsdirectlyfromsentimentsexpressed incommentspostedinsocialnetworkssuchasFacebookandTwitter.Avarietyofspecializedsearch enginesallowsimultaneoussearchingofmultiplesourcesofsocialmediacommentaryanduse sophisticatedalgorithmstoconvertnaturallanguage(Ilikethisproductorthisproductisreallynot bad)intoquantiedexpressionsofsentiment. Thiskindofanalysisofforward-lookinginformationcanshedlightonwhetheranewlylaunchedproduct isbeingwellreceivedorrejected,andcanthereforebeusedtoimprovetheaccuracyofprotforecasts. Itisthebeginningofaveryinterestingjourney.Thesearchtoolsarerelativelyprimitive,thedatabases aretrulymassive,andthealgorithmsarecomplexbutthepossibilityofcapturingandutilizingsentiment inbusinessforecastingispotentiallyveryrewarding. Stakeholder engagement Socialnetworkingcanbeusedtopromotebetterengagementwithinvestorsandotherinterestedreaders ofnancialinformation.Inthesocialmediafrenzythathaseruptedoverthelastfewyearsitisnolonger possiblefororganizationstoexertthesamelevelofinuenceovertheirbrand,forexample,toensure thatcommunicationsareaccurateandfair.Bulletinboards,investorgroupsandnewssitesoftencontain erroneousinformationpostedbyindividuals.Ratherthanstandingidlyonthesidelines,CFOsandInvestor Relationsprofessionalscanusesocialmediaasatooltoengagewithinvestorsandotherstakeholdersto clearupmisunderstandingsandprovidemoreinformationabouttheircompany,itsproducts,sustainability policies,greencredentials,communityeffortsandemployees,togiveabalancedview. CFOslookingforquantitativewaystomeasuretheirsocialinvestmentsmayneedtorethinkhowthey evaluatethepayofffromthoseinvestments,whetheritsthroughtheuseofsocialmediatolowercall centerandcustomerservicecosts,tocreatebrandawarenessforanewproduct,ortointeractwith consumersinnewways.CalculatinganROIonSocialBusinessinvestments(socialnetworksandsocial marketing)isacontentiousarea.Oneschoolofthoughtsuggeststhatitisinappropriatetoattributean ROIatsuchanearlystageofsocialmediadevelopment.Afterall,manyendeavorsareexperimental. Objectively,thereisnodoubtthatidentifyingcauseandeffectisachallenge,butthenotionthat businessesshouldabandonROIdoesnotsitwellwithCFOswhotendtoviewinvestmentsinsocial mediathroughthelensoftraditionalinvestmentappraisaltechniques.However,notallsocialmedia initiativeslendthemselvesreadilytothiskindofscrutiny. TheAmericanExpressandProctorandGambleexamplesgivenearlierillustrateclear-cutreturns,but theMcDonaldsandLegocasesareperhapsmoretypicalofthesocialmediagenre.Thereisnodenying thattheycreatedvalue,butwhatexactlywasthereturnoninvestment?Howdoesanorganization quantifythereturnoncrowd-sourcinganideaforanewproduct?AndinthecaseofMcDonaldshow muchoftherevenueattributabletosalesofMcRibwasdowntoWord-of-MouthratherthaneWord- of-Mouth?AllthissuggeststhatthewayCFOsevaluateROIneedstochangetomoreaccuratelytake accountoftheuniquecharacteristicsofsocialbusiness. OnecharacteristicthatisspecictosocialnetworksandwellillustratedbytheMcDonaldsandLego examples,isthesignicanceofcommentary,reviews,FacebooklikesandTwitterfollows.In particular,theMcDonaldsMcRibcampaignvividlyillustratestheabilityofindividualstoinuence readersviaasocialnetworkonatrulymassivescale. 8 Social Media at the Tipping Point -AFSN&OracleWhitePaper The Barriers to uptake of Social Business Indeed,20percentofonlineconsumersareconsideredHighSharers.Theyaretypicallyyounger,more activeonsocialmediasites,usemultipledevicestoaccesstheInternet,andarepronetocreateoriginal onlinecontent.HighSharersareoftenloyaltospecicbrandsandarealmostthreetimesmorelikelyto recommendproducts/servicestoothersthroughsocialmedia. 9 Industryanalystsnotethat60percentofpeoplewhousesocialmediaalsopostreviewsonproductsand services. 7 Similarly,55%ofbuyersturntosocialmediawhentheyaresearchingforinformationbefore makingapurchase. 3 Giventhosefacts,themetricsbywhichCFOsgaugethesuccessofsocialmedia initiativesneedtochange.Eventrustedmeasuresassociatedwiththeinternetage(pageimpressions, clicksanduniquevisitors)arerenderedlesspotentintheeraofsocialmediawhichfrequentlycombines thecomplexinteractionsofseveralsocialnetworksrunninginparallelwithinasinglecampaign.New measuresofsocialbusinesswillneedtorecognizecommunityengagementasacentralplankofsuccess andincludemeasuressuchasnumberandpercentageoffansorfollowers,numberandpercentageof positivecustomermentions,andnumberandpercentageofTwittermentions. Justifyingsocialmediaendeavorsinsidetheenterprisecanbejustasdifcult,althoughtherearebright spotsasillustratedbytheSUPERVALUexperimentmentionedearlierwhichledtoconcretereturns. Onehelpfulfeatureisthatsocialmediaisrelativelyinexpensive.Forexample,theCapitalOnecase illustratesthatthebenetsofsharingknowledgeandinternallycrowd-sourcingideasandinnovationis availableforaslittleasthepriceofsettingupaFacebookgroupforthenancefunction. ButCFOsneedtobeawarethattherearealsoriskstoROIonthehorizon.Althoughconsumersaround theworldseemincreasinglywillingtodivulgemorepersonaldatatocompaniesthroughsocialmedia platforms,companieswhichinvestinexpandingtheiraccesstosocialmediacouldndthemselves increasinglyatoddswithgovernments.DraftEuropeanUnionLawisexpectedtocomeintoforceby 2015whichwillincreaseconsumersrightstomovetheirdatabetweenvendorsortoselltheirpersonal datatothirdparties. 8 Forinstance,aconsumercouldsellthedetailedcontentoftheirutilitybilltoan intermediary,whocouldthenmatchtheirusagewithacompetitorslowertariff.Similarly,downloading medicaltreatmentrecordscouldencourageincentivestotransferbetweenhealthinsurers.Ina nutshell,companiescouldspendaconsiderableamountofmoneyandeffortcollectingsocialdataonly tonditsoldontoacompetitor.CalculatingROIlookssettobecomeevenmorechallengingforCFOs. Themainimpedimentstorollingoutasocialbusinessinitiative,whetherinsideoroutsidethe organization,revolvearoundmanagementdisagreement,lackofanagreedvision,competinginitiatives, andthedifcultyofdemonstratinganROI.UnliketheotherbigtechnologytrendssuchasBigDataand Analytics,Mobile,andCloudComputing,technologyinfrastructureissuesappeartobelessofaconcern. BecausesurveyspointtosignicantlydifferentlevelsofenthusiasmforsocialmediabetweenCEOs, CFOsandCIOs,itnotsurprisingthatmanyorganizationsstruggletodevelopacogentsocialbusiness strategy.TheperceivedlackofmeasurableROIisadrawback,especiallyinthefaceofcompeting Cloud,MobileandBigDataprojectswhichcanbeeasiertomeasureareturn.Itisalsoearlydaysfor socialbusiness,andunliketodaysGenerationYyouth,manybusinessleadersareunfamiliarwiththe workingsofsocialnetworksandarenotsufcientlyinformedtolenddirectsupporttonewinitiatives. Culturally,socialnetworkingcanbeviewedasathreattoorganizationsormanagersthatareless openorinsecureaboutsharinginformation.Therearealsolegalandotherrisks(libel,defamation andreputationalrisk)thatcanpotentiallystietheuseofsocialmediaininteractionswith employees,customersandsuppliers.Someorganizationshavemisguidedlybannedsocialmediain theworkplacealtogether. Butthesebarrierstoprogressareephemeral.Asexperienceofsocialmediagrowsthemeansto measureROIwillfallintoplace,seniormanagerswillbecomemorefamiliarwiththebenetsandsocial mediawillenterthemainstreamofbusinessstrategy. 9 Social Media at the Tipping Point -AFSN&OracleWhitePaper How Oracle responds to the challenge Summary Inbroadterms,socialnetworksarehostedinthepublicCloud.Consequently,responsibilityfor infrastructure,security,andservicecontinuityvestslargelywithorganizationssuchasTwitterand Facebook.Thekeychallengeisnotrawcomputingpower,asitmightbewithaBigDataproject.Rather, theoverridingneedistoeffectivelyintertwine,coordinate,andmeasureinteractionsacrossmultiple socialnetworksandchannelsofcommunication. ThisiswhereSocialRelationshipManagement(SRM)comesin.SRMisaboutbuildingpersonaland engagingrelationshipswithprospects,customers,inuencers,partners,candidatesthroughmultiple socialmediachannels.Tosucceedindoingthis,youneedtouseanintegratedSRMplatformthat enablesyouto: listen, engage, market, and analyze social interactions have a complete view of your constituents, including engagements from both traditional and social channels Be integrated with your enterprise business processes and systems OracleSRMoffersthemostcompletesocialproleforemployees,consumers,andorganizations byprovidingaggregateddatafromenterpriseappsandsocialdata,enrichedwithdatafromtrusted externaldatasources.OracleSRMprovidesintegrated,complete,andenterprise-classsolutionsto enableengagementwiththeentirebrandasasingleentityacrossallthesocialnetworksandchannels. OraclesSocialRelationshipManagement(SRM)platformwasdesignedwiththeneedsofglobal campaignsinmind.ItprovidesanintegratedplatformforSocialMarketing,SocialSellingand Commerce,aswellasSocialServiceandSocialIntelligence.SocialMarketingconsolidatespublishing activitiesbystreamliningthemanagementofcontent,communitiesandreporting.SocialSellingand Commerceallowtheenterprisetoidentifyandtargetpotentialinuencersandbuyersfromsocialdata aswellasmakepersonalizedrecommendationsanddiscountoffers.SocialServiceprovideslistening andmonitoringtoolssothattheorganizationcanrespondtocustomerrequests.Finally,Social Intelligenceprovidesuser-denedreportingandperformancemeasures. McDonaldsisoneoftheinternationalcompaniestobenetfromtheOracleSRMplatform.Itneeded tomanageagloballyfranchisedbrandandcentralizethemarketingmessagewhilemaintaining communitieslocally.UsingOracleVitrue,McDonaldswasabletohaveasinglecorporateFacebook Pagewhileallowingmarketmanagerstoengagefansintheirlocalmarkets.Eachmarketisnow abletocustomizecontentfortheirsegmentbasedonzipcode.VitrueTabsincludesover50modules, allowingMcDonaldstofullycustomizethefanexperienceontheirFacebookPage. Socialnetworkingandsocialmediaaretransformingthewaythatbusinessesgotomarket.The phenomenoncanbeharnessedtoaccelerateandbroadenbrandawarenessaswellasencourage innovationutilizingleadingedgetechniquessuchascrowd-sourcing.Earlyadoptersofthetechnology, suchasMcDonalds,AmericanExpressandProcterandGamblehaveseenresoundingsuccessfrom theirinitiativeswhichhaveincludedproductlaunchesinsocialnetworks,closerengagementwith customersandthere-vitalizationofestablishedbrands. Internally,manyorganizationshaveseenquickwinsfromleveragingsocialtoolssuchasenhanced collaboration,knowledgesharingandcrowd-sourcedinnovationoftenatlittlecost. However,despitesteadilyincreasingexamplesofthesuccessfulapplicationofsocialnetworking, CFOsaremoreskepticalthantheircolleaguesatleastintheshortterm.Longertermmostagree thatsocialnetworkingwillbecomeanessentialbusinesstool.However,atthisearlystageofmarket maturityitseemsthatCFOshavereservationsabouttheROIofsocialbusinessinitiativesandthelack ofaclearstrategyfordeployment.TraditionalmeasuresofROIarenotuptothejobofrecognizingthe complexityofsocialnetworkinginteractionsorthespecialcharacteristicssuchascommentarywhich candrasticallyaffecttheoutcomeofacampaign.Newmeasuresarerequiredwhichputcommunity engagementattheheartofperformancemeasures. Therearealsoculturalissueswhichareactingasabrakeonprogress.Unliketheyoungergeneration intheworkforce,seniormanagershavedifcultyvisualizingandworkingwiththesenewtools. 10 Social Media at the Tipping Point -AFSN&OracleWhitePaper Anotherchallengeismaintainingbrandconsistencyacrosssocialbusinessinitiativeswhichcross multiplenetworksonaglobalscale.Fortunately,newtoolssuchasOracleVitruethatcombine publishingactivities,promotesocialbusinessandprovideimportantmonitoringandreportingcapability arenowavailabletohelpmanagemultinationalcampaigns. Overallthereisconsiderableoptimismsurroundingsocialbusiness.Itisrmlyontheboardagenda ofleadingcompaniesandalthoughitisearlydays,thestoreofknowledgearoundhowtocapitalize onsocialtoolsisgrowingallofthetime.Mostcompellingly,therateofsocialnetworkgrowthisso dramaticandpervasivethatbusinesseswhichfailtogetinvolvedriskgettingleftbehindintheracefor bothprotsandtalent. 11 Social Media at the Tipping Point -AFSN&OracleWhitePaper Bibliography FSN Oracle Disclaimer of Warranty/Limit of Liability Note 1 McKinseyGlobalSurvey,Minding Your Digital Business,McKinsey&Company,2012. Note 2 RightNow2011CustomerExperienceImpactReport:GettingtotheHeartoftheConsumerandBrandRelationship. Note 3 Giamanco,BarbaraandKenGregoire,Tweet Me, Friend Me, Make Me Buy,HarvardBusinessReview,July-August2012. Note 4 MITSloan/DeloitteGlobalStudy,Social Business: What Are Companies Really Doing?2012. Note 5 Oracle/WallStreetJournalCFORoundtable,June2012. Note 6 Nagy,Jennifer,How to Increase the ROI of Social Media Marketing,HufngtonPost.com,July26,2012. Note 7 Rosenbaum,David,Whos Out There?CFO.com,February1,2012. Note 8 Shameless Self-Promotion,TheEconomist,September1,2012. Note 9 Coleman-Lochner,Social Networking Takes Center Stage at P & G,BusinessWeek.com,March29,2012. FSNPublishingLimitedisanindependentresearch,newsandpublishingorganizationcateringfor theneedsofthenancefunction.ThiswhitepaperiswrittenbyGarySimon,GroupPublisherof FSNandManagingEditorofFSNNewswire.HeisagraduateofLondonUniversity,aFellowofthe InstituteofCharteredAccountantsinEnglandandWalesandaFellowoftheBritishComputerSociety withmorethan27yearsexperienceofimplementingmanagementandnancialreportingsystems. FormerlyapartnerinDeloitteformorethan16years,hehasledsomeofthemostcomplexinformation managementassignmentsforglobalenterprisesintheprivateandpublicsector. Gary.simon@fsn.co,.uk www.fsn.co.uk OracleCorporation(NASDAQ:ORCL)istheworldslargestenterprisesoftwarecompany.With themarket-leadingHyperionenterpriseperformancemanagementsuite,worldclassnancial applications,andintegratedgovernance,riskandcompliancesolutionsOraclehelpsnance executivesmaximizepotentialanddeliverresultsfortheirorganizations.Formoreinformation aboutOraclesBigDataSolutions,visitusathttp://www.oracle.com/us/technologies/big-data/index. html?sckw=srch:big-data&SC=srch:big-data Whilsteveryattempthasbeenmadetoensurethattheinformationinthisdocumentisaccurateandcompletesometypographical errorsortechnicalinaccuraciesmayexist.Thisreportisofageneralnatureandnotintendedtobespecictoaparticularsetof circumstances.Thepublisherandauthormakenorepresentationsorwarrantieswithrespecttotheaccuracyorcompletenessofthe contentsofthiswhitepaperandspecicallydisclaimanyimpliedwarrantiesofmerchantabilityortnessforaparticularpurpose. 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