University of Reading
By Alex Bennett
alex@bennett.uk.com
Student number: 2106734
Word Count: 18700
1
Thanks
I would like to thank my colleagues at Henley for the MBA experience, the
laughs along the way and the amazing support in testing times. I would
also like to thank my research sponsors and, of course, the continual
encouragement and support of my family.
2
Executive Summary
3
strategy and the application of SM tools. SM benefit and value is not
created from a ‘plug and play’ adoption of SM tools; SM strategy requires
developing a new set of skilled internal resources and new SM cultural
behaviors. Enterprises must recognize that although many SM tools are
cheap or even free, it is the resource operating the SM tools and the skill
in managing and interpreting the landscape that requires financing. You
cannot build a SM culture on SM tools and technologies alone. Here,
arguably, a SM strategy that considers social business behaviours
supports the natural progression of RM, enabled through SM technology,
bringing the SDL model to life through a continuous flow of knowledge,
information and value exchange.
4
By these methods, an effective SM strategy pertains to preparing your
Enterprise for a new era of online communication commerce, adapted to
new business processes, social behaviors and perspectives that can
deliver competitive advantage.
5
Thanks ..........................................................................................................2
Executive Summary ....................................................................................3
Introduction................................................................................................10
Focus of the study............................................................................................................................... 10
Background............................................................................................................................................. 15
Context...................................................................................................................................................... 18
The Importance and Relevance of the Investigation ........................................................ 20
Sponsoring Research Organizations ........................................................................................ 21
Research Parameters ....................................................................................................................... 22
Personal Objectives ........................................................................................................................... 23
Overview and Structure of Key Contents of The Report ................................................ 24
Literature Review ......................................................................................25
Introduction ............................................................................................................................................. 25
The Definition of Social Media...................................................................................................... 26
A Definition of Enterprise 2.0 – The ‘Social Business’..................................................... 27
Enterprise 2.0 and Control.............................................................................................................. 29
Enterprise 2.0 and Social Media Technology....................................................................... 30
Social Media Recognition by Enterprises ............................................................................... 31
Social Media in the Context of Marketing ............................................................................... 34
Driving Behavioral Forces behind Social Media ................................................................. 36
The Importance of Social Media Communities to Enterprises .................................... 38
Internal Culture, Internal Relationships and Social Media Strategy ......................... 39
Current Enterprise Social Media Strategy Activity ............................................................. 40
Strategic Research Models ............................................................................................................ 43
E-V-R Congruence (Analysis)....................................................................................................... 44
A Social Media Strategy Model - POST .................................................................................. 45
Social Media Strategic Performance Value to Enterprises............................................ 46
Understanding the Concept of Social Media Value........................................................... 47
Social Media and Service Dominant Logic (SDL) .............................................................. 51
Social Media Value Practices ....................................................................................................... 53
Literature Review Conclusions..................................................................................................... 55
Investigation Design .................................................................................56
Objectives of the Investigation...................................................................................................... 56
Justification of Investigation Design .......................................................................................... 58
Research Philosophy and Approach......................................................................................... 60
Research Strategy .............................................................................................................................. 61
Research Time Horizons................................................................................................................. 63
Research Methodology and Structure...................................................................................... 64
Research Techniques and Data Collection ........................................................................... 65
Investigation Findings and Analysis......................................................71
Canon UK and Ireland Case Study Background ................................................................ 71
Canon’s Market Proposition........................................................................................................... 71
Canon’s Social Media Position..................................................................................................... 72
CBS Marketing Background .......................................................................................................... 73
CBS Culture and Internal Environment.................................................................................... 74
Think Tank Session - July ‘09....................................................................................................... 76
Canon Interviews................................................................................................................................. 80
Environment...........................................................................................................................................80
6
Values .......................................................................................................................................................82
Resources...............................................................................................................................................84
Canon EVR Congruence Diagram ...........................................................................................85
Graphical Interview Interpretation............................................................................................... 87
Cisco Interviews ................................................................................................................................... 90
Environment...........................................................................................................................................90
Values........................................................................................................................................................ 91
Resources...............................................................................................................................................93
EVR Congruence Diagram ...........................................................................................................94
Graphical Interview Interpretation............................................................................................... 95
NixonMcInnes Interviews ................................................................................................................ 98
Environment...........................................................................................................................................98
Values .......................................................................................................................................................99
Resources............................................................................................................................................ 101
EVR Congruence Diagram...........................................................................................................102
Graphical Interview Interpretation.............................................................................................103
Comparing and Contrasting Graphical Interview Interpretation................................107
Conclusion ...............................................................................................111
Social Media Strategy Conclusion Model .............................................................................113
Leadership Support and Engagement ...................................................................................114
Developing Social Media Culture, People and Behaviors ...........................................115
Implementing Social Media and Enterprise 2.0 Tools....................................................116
Social Media Knowledge ...............................................................................................................117
Social Media Value, Service Co-creation & Knowledge Exchange Ethos ..........118
Recommendations ..................................................................................120
References ...............................................................................................128
Appendices ..............................................................................................134
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Table of Figures
8
Figure 49 – Alex Bennett SM Strategy Model Overlaid on Internal
Functions .......................................................................................................................120
Figure 50..................................................................................................................................122
Figure 51 – Example SM Activity Theme Objectives .......................................123
Figure 52..................................................................................................................................124
Figure 53..................................................................................................................................126
Figure 54 – SM Value Creation. Source: Schau et al., 2009 .......................127
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Introduction
The rapid increase of global Social Media2 (SM) usage has presented
Enterprises3 with a new and important strategic challenge –
understanding how and why this is important and relevant to their
business operations.
2
Social Media is a term used to describe the type of media that is based on
conversation and interaction between people online. Where media means digital words,
sounds and pictures, which are typically shared via the Internet, and the value can be
cultural, societal or even financial. (Wikipedia, 2010)
3
For this research the context of the Enterprise is an organization, a company, an
association or a government agency that conducts business in Business-to-Business
(B2B), Business-to-Consumer (B2C) environments, or both.
10
Figure 1 - Source: Pingdom, 2010
11
Figure 3 - Source: Pingdom, 2010
12
‘Web 2.0’4 (often used as an early SM term) technology for the following
reasons:
Figure 4
4
The term "Web 2.0" is commonly associated with web applications that facilitate
13
skills needs to be nurtured, perhaps changing the existing structures of
business behaviors and operations. This includes understanding the
value of SM, how to use SM and why it will benefit employees in their job
function. Furthermore, Enterprises will need to develop a greater
understanding of the potential advantages in connecting to customers
and other employees within the Enterprise.
14
Background
“Australia led in average time per person spent, with the average
Australian spending nearly seven hours on social media sites in
December.” (Nielson.com, 2010)
15
Figure 6 - Source: Neilson, 2010
SM provides a popular medium to connect to, talk to, engage with, share
and comment upon a wide variety of issues (both personal and business
related) including events, products and services. Users can also submit
content, such as text, pictures and videos, referred to as user generated
content (UGC). The incredible rise and popularity of social networks such
as Twitter, Facebook, You Tube, LinkedIn and a wide variety of blogs,
forums and online conversations, as shown below, demonstrate the level
of interest and active participation.
16
increasing 200% and 368%, respectively.” (Nielson.com, 2010) Forrester
recently produced the following interesting findings about adults using
SM.
17
Context
18
Does SM provide or facilitate a unique opportunity for Enterprise
employees to research and communicate with customers with the
ambitions of modifying and co-creating services based on this
knowledge? If so, then SM should perhaps be analyzed in the context of
Vargo and Lusch’s (2004) Service Dominant Logic (SDL) model.
19
The Importance and Relevance of the Investigation
20
Sponsoring Research Organizations
All three have provided key case study evidence and in-depth interview
analysis to support the research objectives.
21
Research Parameters
The incredible rise and mass adoption of mobile Internet and broadband
penetration certainly supports the incredible growth of SM usage. This
includes free SM applications, the relative low cost of broadband and the
advances in ‘smart’ mobile phones such as Apple’s ‘iPhone’. Here, cheap
connectivity to the Internet and continually advancing bandwidth speeds
underpins the ease of connecting into SM channels. This study does not
try to prove this correlation but recognizes its significance when
considering what has driven the need to analyze a new SM strategy and
the potential impact on modern Enterprises. This research does not try to
predict the trends of usage and growth of SM over time.
In addition, this study does not aim to define or discuss the balance
between traditional media marketing and SM or position the business
case of SM in terms of sales, correlated to Return on Investment (ROI).
22
Personal Objectives
The author’s personal objectives of the research are to prove new linkage
and thought leadership in SM strategy adoption for Enterprises, based on
live market challenges. This brings together the following criteria:
Figure 9
Researching
Personal interest
academic
and passion for
Marketing theory
Social Media
and its relationship
Strategy
to Social Media
Applying academic
and research Constructing a
findings gateway into the
investigate ‘live’ Social Media
Enterprise consulting industry
challenges
23
Overview and Structure of Key Contents of The Report
There are 5 key areas to this report. The first section is the ‘Literature
Review’, which looks to identify key SM and marketing thinking and
critiques the opinions to draw out the focus of the research question and
case study evaluation. Secondly, the research design and the style of the
research approach are given background and substantiation. The third
section covers specific case study background and presents the findings
of the investigation, interpreting the interviews into a compare and
contrast format. Following this, the conclusions of the research are
presented and are completed with recommendations. Finally, the report is
completed with a personal reflection on conducting the research.
24
Literature Review
Introduction
This section of the research analyzes the literature and academic theory
related to current thinking related to preparing the modern Enterprise for
SM Strategy. The objective of the literature review is to explore and
critique key SM concepts, opinion and themes to inform the research
investigation structure. This includes considering relevant strategic
models that could support the investigation.
Through presenting a literary critique this will justifies the relevance of the
research objectives, informing the way in which the investigation design
and analysis will look to identify theory. The output is to conclude with the
key questions and concepts that then require answering as part of the
research investigation. These elements are defined at the end of each
literature review section.
25
The Definition of Social Media
26
A Definition of Enterprise 2.0 – The ‘Social Business’
5
Collaboration denotes people working together to solve common problems, sharing
knowledge, expertise and experience in real time. (Software, 2009)
6
The definition of competitive advantage consists of the value preposition and the
unique activities required for delivering it (Collis & Rukstad 2008)
27
Figure 10
28
Enterprise 2.0 and Control
Breaking down the top down hierarchical and functional barriers and
allowing information to pass horizontally and vertically through the
Enterprise with ease should be openly encouraged (Furness, 2008). This
refreshing contemporary approach runs counter to the fabric of the
traditional Enterprise and can encroach and threaten managerial control.
Therefore, seeing past the perceived threat and understanding the value
of a new democratic Enterprise 2.0 environment is central to SM strategy
preparation. Consequently, understanding the managerial barriers,
challenges and institutional control and freedom levels needs to be
assessed in the investigation.
29
Enterprise 2.0 and Social Media Technology
30
Social Media Recognition by Enterprises
7
SM ‘word of mouth’ contextual examples - individuals posting something on their
Facebook ‘Wall’ or on ‘Twitter’ so their friends and followers can see their opinion
31
Figure 12 - Source: Owyang, 2009
32
In fact, another train of thought exists about SM. Some Enterprises and
business managers have seen SM as an Internet phenomenon - a
‘social’, ‘non-business’ activity that does not relate to commerce. This
lack of understanding and potential nervousness in using SM as part of
the business strategy has resulted in closed firewalls to restrict the usage
of SM tools or applications by IT and Security departments.
Here, what tools are available in the Enterprise and the freedom to use
them, or the understanding of how to use them becomes an important
part of the SM strategy evaluation. This includes aspects of leadership
support and internal attitudes to SM.
33
Social Media in the Context of Marketing
8
Knowledge management comprises a range of strategies and practices used in an
organization to identify, create, represent, distribute, and enable adoption of insights and
experiences. (Wikipedia, 2010)
34
is a prerequisite for effective external marketing efforts” (George, 1990).
This suggests internal SM development may be vital for any form of
longer-term strategic SM success. Therefore the ways in which
Enterprise marketing teams understand SM and develop the internal SM
environment needs investigation.
35
Driving Behavioral Forces behind Social Media
Indeed, it is the tools and technology of SM and the mass adoption of the
Internet through broadband and mobile devices, which enables large
numbers of connections to be sustained and maintained instantaneously
(Smith, et al., 2007). But it is more than just technology. “Web 2.0 is
here today, yet it’s vast and disruptive impact is just beginning. More than
just the latest technology buzzword, it’s a transformative force that’s
propelling companies across all industries toward a new way of doing
business. Those who act on the Web 2.0 opportunity stand to gain an
36
early mover advantage in their key markets” (Musser, 2006:4). This
highlights the importance of researching internal SM knowledge levels
and employee understanding of its purpose and usefulness.
37
The Importance of Social Media Communities to Enterprises
38
Internal Culture, Internal Relationships and Social Media Strategy
39
Current Enterprise Social Media Strategy Activity
Figure 14
40
Figure 15
41
Figure 16
42
Strategic Research Models
43
E-V-R Congruence (Analysis)
44
A Social Media Strategy Model - POST
Figure 19
45
Social Media Strategic Performance Value to Enterprises
46
Understanding the Concept of Social Media Value
• Market capitalisation
• Network effects
• Brand reputation
• Buzz
• Business models
• Relationships
• Ecosystems
• Goodwill
• Momentum
Perhaps all of them are valid - but more likely, long-term survival in a
changing networked economy, based on managing knowledge and
resource effectively, is the ultimate value. “Financial valuations of
companies…calculated on earnings multiples and on forecasts of market
and unit production growth are not the answer” (Shuen, 2008:21). These
are not relevant, it seems, especially when considering SM value.
47
Potentially the real value created by a SM strategy is that relationships
are formed with others (Monseau, 2009). Relationships online are about
mutual interest and mutual gain, which in turn breeds not only customer
loyalty, but also internal loyalty and trust. These become meaningful and
relevant experiences with others that create value - something of worth
that influences them, their thinking patterns or educates for individual
benefit (Litchenberg, 2009). Re-inventing relationship perspectives and
understanding value creation through online relationship is core to SM
strategy.
48
Relationship Marketing (RM) and Social Media
SM strategy supports RM to look at both the short and long term value of
information interchange in the ‘community’ without immediate fiscal
benefit. SM strategy also appears to be integral in supporting RM
lifecycles and relationship building, both with the customer and
importantly, with internal Enterprise staff. This then positions SM strategy
as being an advance in RM practices bred by contemporary technology.
“The new generation of RM responds to the additional changes of digital
media literacy and in the right hands can trigger a rebuild of the entire
49
marketing mix. RM for the Facebook generation demands both thinking
and acting differently” (Meadows-Klue 2008:245).
50
Social Media and Service Dominant Logic (SDL)
The SDL model looks at the relationship between supplier and customer,
the co-creation of value through knowledge exchange and the delivery of
services, not just products. In SM, this is ‘real-time’ marketing integration
with customers, binding mass customization with RM techniques to
create products, services and designs that match individual and changing
customer needs (Oliver et al, 1998). SM strategists must consider that
having the customer as a central part of co-created value leads
engagement with the brand, into becoming the experience (Prahalad,
2004).
Furthermore, SDL theory does not cover the cultural and behavioral
changes required internally to develop and harbor knowledge exchange
and value co creation. Nor does it cover the technology or methodology
by which this theory could come to life, hence providing an angle for
research investigation.
52
Social Media Value Practices
• Impression Management
• Social Networking
• Community Engagement
• Brand Use
53
Schau et al, comment that the practice engagement forms the interaction
and co-creation argument of Vargo and Lusch’s SDL, but that focusing on
the collective practice elements and commonality between them
produces value (Schau et al, 2009). Interestingly, they argue that, “…the
firm should foster or sponsor social networking practices to build and
sustain the community and to inspire further co-creation” (Schau et al.,
2009:41).
54
Literature Review Conclusions
55
Investigation Design
56
whether SM is the glue that potentially pulls together, activates and
extends RM and SDL thinking. This includes assessing knowledge levels
and perceptions of SM strategy and technology.
57
Justification of Investigation Design
58
assist Enterprises with assessing the impact of a future course of
strategic action.
59
Research Philosophy and Approach
60
Research Strategy
The lack of deductive elements of the case study research implies that a
grounded theory was not entirely applicable. Though the investigation
looks to create theory from regular reference to the case study data, it’s
not fully grounded and supported by quantitative data analysis. There are
aspects that suggest that grounded theory supports the investigation.
This is based upon the principle that data was collected before the
formulation of theory, especially in the context of emerging Enterprise 2.0
and Social Business concepts. This is arguably a characteristic of
grounded theory, as analysis of data to inform theory is deemed an
interpretative strategy (Suddaby, 2006). However, the boundaries remain
open to interpretation in this case.
61
through data analysis, but is essentially a flexible research design
approach.
62
Research Time Horizons
As this research forms part of the author’s MBA course structure and
dissertation it was time-bound. The study required completion within
course timelines; hence the investigative research is cross-sectional. This
implies a study whereby data is analyzed at a point in time, based upon a
set of interview questions posed at a development or implementation
stage of the Enterprise’s SM strategy. The perspectives and learning
journey of the Enterprise interviewee will of course change over time, so
this study looks to describe the findings, and create theory, which could
then be revisited in the future. This would provide further insight into the
development of Enterprise SM strategy.
63
Research Methodology and Structure
64
Research Techniques and Data Collection
A series of more than ten meetings were held at Canon UK’s office
headquarters with its Marketing teams to discuss the position on
developing a SM strategy, commercial context and key internal
challenges. The author looked to provide consultative engagement with
Canon as a trusted advisor to conclude a provisional SWOT analysis on
Canon’s SM strategy position.
65
Company Interviewee Job Title Job Function
Name
66
NixonMcInnes Will Managing Board
McInnes Director
Figure 22 - Interviewees
67
parties given the emergent and contemporary nature of these terms.
Through analysis, 12 of the 28 interview questions provided key insight
into the subject matter, as highlighted.
68
69
Figure 23 – Interview Questions
The author transcribed these video interview recordings and placed the
data into Excel for synthesis. Samples of the transcribed interview
content, in Excel, are available (Appendix 5). Following this transcription,
five more ‘themes’ of SM strategy were generated through synthesis of
the interviews. This objective was to develop three sets of data that could
be correlated and contrasted to deliver the intended output of the
investigation.
The next stage was to interpretatively rank each applicable answer and
theme on a scale of 1 to 10 (1 being low and 10 being high) in terms of
understanding, knowledge levels or SM usage, depending on the
question. The results were graphically presented in ‘Spidergram’ charts,
constructed in Excel. These provided individual Enterprise views and
through overlaying the results in single ‘Spidergrams’, a direct compare
and contrast was possible. In essence, this gave the author a basic
process for graphical comparison of interpretive qualitative information.
70
Investigation Findings and Analysis
Small or Medium sized Enterprises
9
71
Canon’s Social Media Position
72
CBS Marketing Background
10
Detailing the advantages of technology, solutions, commenting on industry challenges
or regulatory movement that impact customers
11
Search Engine Optimization
Search Engine Marketing
12
73
CBS Culture and Internal Environment
‘Kyosei’ translates as ‘living and working together for the common good’
13
74
Figure 25 - Source: Canon Web Site, 2010
75
Think Tank Session - July ‘09
The objective of the Think Tank was to create an open forum to explore
the issues and challenges of preparing for SM strategy in Enterprise
organizations. The following high-level areas for discussion were
presented:
Figure 26
76
Figure 27
77
environment. This is heightened by the complexities and the volume of
Enterprise functions that need to be aligned with the adoption of a SM
Strategy. This brought out the premise that SM strategy was not simply a
Marketing or PR activity. When the group was pushed to express the
interconnected functions that SM strategy involved, the author was able
to draw together the participant comments about stakeholder groups
together in the following diagram.
Figure 28
HR &
Recruitment
Customer Board/
Service Leadership
Key
Operations
Stakeholders
Social
Product
Media Shareholders
Strategy
Legal Marketing
Sales Finance
78
Importantly, there was indication from Canon that although SM
involvement is about communities and relationships, the goal was to drive
sales by converting community interaction into qualified leads (Poole,
2009). This was an interesting observation in Canon Marketing’s
perception of SM simply as a lead generation tactic, not part of core
strategy and Enterprise 2.0 development. This required exploration in the
interviews.
79
Canon Interviews
Environment
80
SM challenges to achieve longer-term strategic goals. This limited
external communications view implies the real sentiment behind what
Canon think SM will do for the Enterprise - generate sales leads, not
evolve business practices.
81
Values
83
Resources
The creative and marketing teams were only just beginning to cooperate
on SM and had shied away from the magnitude of the task based on the
lack of internal knowledge and resource (Hicks, 2009). Interestingly, any
diversion of attention from traditional marketing activity that provides
[classic] lead generation, and risks potentially not hitting the product sales
numbers had prevented significant movement towards a new SM strategy
(Hicks, 2009). The demands for immediate tactical economic returns on
marketing activity have challenged Canon and any longer term SM
strategy considerations.
84
Canon EVR Congruence Diagram
Here, the size of the circles represents the strength of that area.
Figure 29
85
Figure 30 – SWOT Analysis of Canon
86
Graphical Interview Interpretation
Figure 31 - A) Questions
Figure 32
Knowledge Management
SM as part of the
or Collaboration tools
Marketing Mix
used
Internal SM Skill Levels
87
of the Canon RM strategy is strong (if misunderstood) as well as the
importance of personal relationships within the internal Enterprise
environment.However, skilled SM resource and behaviours, processes as
well as access to SM technology and applications are virtually non-
existent. Furthermore, no research has been undertaken into the internal
development required to pollinate a successful SM strategy over the
longer term.
Figure 33 - B) Themes
Figure 34
The significant elements from these results are the lack of any leadership
support and any form of Enterprise 2.0 operations. Canon CBS has no
SM presence, either in monitoring (SM ‘listening’ through SM tools) the
88
SM community to measure sentiment, considering relevant issues or key
value ‘practices’. Consequently, actually engaging in SM channels and
proactively participating or creating relevant SM communities does not
exist. Canon is therefore unable to communicate with customers and
communities online or ‘crowdsource’ for opinion on its products or
services. Canon ‘thinks’, rather than ‘knows’ what MPS customers want
and value. Developing this activity requires internal skills in SM research
and interaction. This means that whilst the culture is strong, Canon
scores very low in terms of service co-creation (SDL) and being an
Enterprise 2.0 Social Business Culture, They appear unable to derive or
demonstrate SM value to the organization through SM interaction.
89
Cisco Interviews
Environment
90
Values
91
Internal cultural relationships at Cisco are extremely important in
marketing operations but the open culture and nature of 'Cisco people’
who ‘do’ and ‘deliver with passion’ is cited as key (Roffey, 2009). These
‘Cisco people’ make the difference in developing a successful SM
strategy (Sands, 2009).
92
Resources
93
EVR Congruence Diagram
Here, the size of the circles represents the strength of the area.
Figure 35
94
Graphical Interview Interpretation
Figure 36 - A) Questions
Figure 37
SM Knowledge and
Understanding
Overall Enterprise SM 9
SM and Cross
Strategy 8
Funtional Relevancy
7
Importance of Internal 6
Understands SM
Personal 5
linkage to Customer
Relationships 4
Service & Product
3
2
Understand SM Value 1
SM Relationship to
0
to the Enterprise Brand
95
SM strategic development at Cisco and the emergence of Enterprise 2.0
attitudes, culture and tools had been directly linked to employing people
with vision and the ability to drive change in the larger organisation. This
required a change in creating new job roles, hiring culturally different
marketing skill sets complete with the right attitude, proactive nature and
risk ownership capability (Roffey, 2009). Essentially, a fundamental SM
cultural and attitudinal change has occurred from within.
Figure 38 - B) Themes
Co-creates Services
Leadership Support
and Value with
for SM
Customers
The key here for Cisco is the leadership support for their SM strategy.
While the ethical, value driven culture is not as strong as Canon, Cisco is
96
breeding a developing Enterprise 2.0 environment and the basis of a
Social Business.
Cisco has "Customer journeys, not RM." (Roffey, 2009). However, Cisco
recognises customer journeys as a development of RM. They do this by
applying SM to an integrated campaign of marketing operations where
SM plays an increasingly important part in internal and external
relationship building (Roffey, 2009). Cisco score low on service co-
creation as it prides itself on being a technology leader and relying on
internal R&D to develop services. However, it does leverage its ‘Netpro’
Cisco SM community of accredited Cisco customers and engineers for
customer service benefit, where active community members solve each
other’s Cisco issues and problems (Appendix 11). This presents
incredible SM value in brand connectivity and operational customer
service and support savings.
97
NixonMcInnes Interviews
Environment
98
Values
"Being social is at the heart of what we do” (Lloyd, 2009). SM tools are
part of social evolution and SM is applying this concept to business
practice. “SM lets you be at the forefront of advancing technology and
news - be a creator of thought, or leader of innovation and creativity -
leveraging SM tools for business communications” (Lloyd, 2009). This is
strong evidence of Enterprise 2.0 operations in terms of internal values
and perspectives.
99
"Personal relationships are everything to our company. NixonMcInnes is
a professional service organisation staffed by knowledge workers”
(McInnes 2009). Such relationship focus separates the Enterprise from
being simply a collection of individuals. Here group relationships unlock
potential, as individuals combine to create value greater than the sum of
component parts (McInnes, 2009). These relationships are considered to
be the difference in winning and losing business and are facilitated
through knowledge sharing and collaboration, bred by using internal SM
tools.
100
Resources
In the context of the analysis the best tools for SM strategy, “Research is
the best tool for SM” (McInnes, 2009). “SM is looking at an observational
pool of life and thought on the Internet, which has huge potential as a
research tool; providing those ‘moments of truth’ for people and
companies” (McInnes, 2009). Furthermore, "SM is an unmitigated,
unbiased, unfiltered cauldron of opinions; a gigantic observational pool of
life. Marketers should unlock internal knowledge [through SM] to help with
those (existing and prospective customers) seeking solutions to their
problems” (McInnes, 2009).
101
EVR Congruence Diagram
Here, the size of the circles represents that strength of that area.
Figure 39
102
Graphical Interview Interpretation
Figure 40 - A) Questions
103
Figure 41
SM Knowledge and
Understanding
10
SM and Cross
Overall Enterprise SM
9
Functional Relevancy
Strategy 8
Understanding
Importance of Internal
7
Understands SM
6
linkage to Customer
Personal 5
Service & Product
Relationships 4
3
Development
2
Understand SM Value 1
SM Relationship to
0
to the Enterprise Brand
104
NixonMcInnes leverages the concept of using internal social capital as
the emergent SM strategy to create value, forming the backbone of
operations. The lack of command and control hierarchy appears to
enable and nurture this SM culture and value position. However, this is
easier to enable in a smaller company of just 20 employees, having
grown organically with this culture and experimenting with SM technology
over 10 years.
Figure 42 - B) Themes
Figure 43
Co-creates Services
Leadership Support
and Value with
for SM
Customers
105
potential our people have, all of the value of our products and services we
have and even more incredible if we could help our clients realise the
mutual benefits and consequently tell our stories for us?” (McInnes,
2009). SM strategy is about finding out what customers need, overcoming
barriers for them and giving them solutions, rather than spending money
on convincing them they need something else you have (McInnes, 2009).
In essence, this highlights the difference between product and technology
led Enterprises (such as Canon) and the SM strategy of Enterprise
service co-creators. This is the mentality of Enterprise 2.0 leadership and
is expressed with high scoring in the above themes. Interestingly,
NixonMcInnes see “SM strategy as almost synonymous with RM, where
SM uses online social tools to facilitate RM and intuitional relationships”
(Lloyd, 2009).
106
Comparing and Contrasting Graphical Interview Interpretation
SM Knowledge and
Understanding
Overall Enterprise SM 10
SM and Cross
Strategy 9
Funtional Relevancy
8
Importance of Internal 7
Understands SM
6
linkage to Customer
Personal 5
Service & Product
Relationships 4
Development
3
Canon
2
Understand SM Value 1
SM Relationship to
to the Enterprise 0
Brand Cisco
NixonMcInnes
Existing Relationship SM Tools used in
Marketing Strategy Enterprise
Knowledge
SM as part of the Management or
Marketing Mix Collaboration tools
Internal SM Skill used
Levels
107
Figure 45 - A) Question Comparison Overlay
SM Knowledge and
Understanding
10 SM and Cross
Overall Enterprise SM
9 Functional Relevancy
Strategy
8 Understanding
7 Understands SM
Importance of Internal 6 linkage to Customer
Personal Relationships 5 Service & Product
4 Development
3
2 Canon
Understand SM Value to 1 SM Relationship to
the Enterprise 0 Brand Cisco
NixonMcInnes
Knowledge
SM as part of the
Management or
Marketing Mix
Collaboration tools used
Internal SM Skill Levels
108
Figure 46 - B) Themes Comparison
Ethical, value
driven,
committed
culture
10
8
Enterprise as a 6
Can see
Enterprise 2.0/ 4
connection
Social Business between RM Canon
2
Culture and SM
0
Cisco
NixonMcInnes
Co-creates
Services and Leadership
Value with Support for SM
Customers
Ethical, value
driven,
committed
culture
10
8
Enterprise as a 6
Can see Canon
Enterprise 2.0/ 4
connection
Social Business 2
between RM Cisco
Culture and SM
0
NixonMcInnes
Co-creates
Services and Leadership
Value with Support for SM
Customers
This second overlay, presents some of the most interesting data. Canon
score highly on both value driven culture - but poorly elsewhere. This
emphasizes that Canon require a SM strategy that looks at developing
the internal Enterprise 2.0 environment and creating internal change in
attitudes and behaviors with appropriate strategy and resource, as well as
SM technology. SM leadership emerges as a key component of SM
109
strategic preparation with NixonMcInnes and Cisco almost level.
NixonMcInnes score highly in all areas, underpinning its core Social
Business and Enterprise 2.0 activity.
110
Conclusion
However, larger strategic SM projects will fail without the right internal
mentality, aptitude and attitudes to inter-personal relationship building.
This includes altering the hierarchical command and control barriers of
larger corporate institutions. Understanding the value of SM, creating the
SM vision and structuring the objectives of SM engagement underpin
preparation. However, this is a challenging task for any Enterprise and
requires time and resource, yet this is a challenge that will have to be
faced at some point. Action now may well enable your Enterprise to
evolve and outgun the competition. Therefore, a position on SM strategy
is essential to any modern Enterprise, even if it is simply investigating the
challenge and relevancy.
111
Each Enterprise needs to develop an individual, emergent and iterative
SM strategy to becoming a Social Business and Enterprise 2.0
operations. Leadership support, sponsorship and cross-functional
integration are vital components for success. However, a SM strategy is
not free. Budget is required to create SM strategy. Developing SM
success is not a short-term tactical marketing plaster to drive sales in a
recessionary climate. Enterprises must recognize that although many SM
tools are cheap or even free, it is the resource operating the SM tools and
the skill in managing and interpreting the landscape that requires spend
on headcount, training and nurturing these behaviors. A new set of skills
needs to be brought in through recruitment and leaning on SM agency
consultants.
112
Social Media Strategy Conclusion Model
113
Leadership Support and Engagement
114
Developing Social Media Culture, People and Behaviors
115
Implementing Social Media and Enterprise 2.0 Tools
SM is not about the tools and technology, it’s about the research and
engagement it can provide Enterprises when using SM tools. The
evolution of Enterprise 2.0 and SM strategy in larger Enterprises requires
selecting SM tools and applications that fit with the business objectives.
These tools become the driver of implementation once SM strategy and
behaviors have been grounded. SM technology and applications are
simply enablers of communication and although a key part of the
strategy, they form only part of the SM strategy. This echoes Forresters’
(2007) POST SM strategy, where technology is seen as the last piece.
116
Social Media Knowledge
117
Social Media Value, Service Co-creation & Knowledge Exchange
Ethos
119
Recommendations
120
Understanding how it will affect, influence or impact each area is critical.
This focuses on the deeper Enterprise 2.0 development dynamics,
highlighting the ‘people’ aspects as the driver of Social Business
behaviors and Enterprise 2.0 evolution.
A sustained SM programme over time will require resource (new staff and
agency relationships) and a sustained SM budget. Leaders need to
mandate authority and responsibility to an individual SM strategist or
Enterprise 2.0 team to work with and lead cross functional teams. The
selection of the SM strategist must be based on characteristics of longer-
term implementers and co-ordinators of business strategy, rather than
traditional tactical marketing personnel. An integrated SM strategy needs
to be structured from such a centralized area and with a common SM
Enterprise tone, defining the rules of SM research and potential
engagement, including resultant interaction policy, tools and ‘Enterprise
Voice’14. Responsibilities must also include developing and measuring a
process of SM value.
14
Enterprise Voice is the style and nature of how the Enterprise will communicate in SM.
This could be formal and conservative, or more casual and ‘cool’.
121
Figure 50
This person or team will assist with deciding on what you want to use SM
for and why. Is it for sales generation, brand awareness, improving
customer service or product development? Is its intention to improve
internal employee relationships, drive efficiency, knowledge sharing or
competitive advantage? It may well be a blend of many aspects, but be
clear on the desired intention. This provides the platform to define themes
of purpose. SM theme objectives could break down into the following
example areas:
122
Figure 51 – Example SM Activity Theme Objectives
123
different social network environments is crucial when planning s SM
strategy for an international company.
Figure 52
124
Twitter, a Leadership Blog, Ning Community Creation). However, SM
moves so quickly and technology changes so fast that an Enterprise
cannot stay on top of it all. Therefore the selection of a suite of SM tools
for the initial strategy is vital. This can be reviewed through the course of
SM engagement, but stick to the agreed tools and try and prove or
disprove their value. Tools will depend on whether you are simply
‘listening’ or ‘listening and engaging’.
125
certainly more interesting than a static pdf update. Video can tell a story
very quickly and is ultimately more attractive.
Figure 53
All of the actions lay the foundations for SM strategy and morphing your
organization to a new Social Business culture and Enterprise 2.0
operations. Using a new project (such as a new product launch) could be
the vehicle you need to start traction. Experiment and learn. Make sure
that the 12-value ‘practices’ outlines by Schau (2009) are monitored
(through web listening) but not just in the external community (as shown
below). Crucially, apply and investigate these ‘value’ practices in the
context of the internal Enterprise culture and assess ‘internal community
activity’. Jive Software could supply the vehicle to do this. Re-
measurement and re-analysis over time will demonstrate the change
126
value of Social Business behaviors and movement towards Enterprise
2.0.
127
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133
Appendices
134
2) NixonMcInnes web site
135
136
4) Social Media Technical Definitions and Terms (Furness, 2008)
Blog
Enterprise 2.0
Mash-up
Podcast
An audio file distributed online, often by RSS (see below) or another type
of data feed. It differs from a webcast in that podcasts – like blogs – tend
to be updated regularly and are available for automatic download via an
XML newsfeed.
An XML feed that notifies subscribers every time a web page has been
updated (whether a new blog post, podcast, Twitter update or wiki
contribution, for example).
Social bookmarking
137
‘Tagging’ blogs, photos, videos or articles using sites such as Digg,
Del.icio.us or StumbleUpon. Combined into a ‘tag cloud’, these tags
provide an insight into what is popular online by arranging tagged words
according to size (the larger the word, the more people are tagging
articles with that term).
Social network
138
As its name suggests, content created by consumers and uploaded to the
Web – whether a video posted to DailyMotion, a photo uploaded to
Flickr or a user uploading a book review to Amazon.
Web 2.0
Widget
Wiki
A web page that users without HTML experience or author rights can
contribute to, edit or link content to. The most famous example is
Wikipedia.
139
Below is (Faulds and Mangold 2009)
140
141
142
143
6) Canon Marketing Strategy Objectives 2009 – The Magnificent Seven
(a)
144
7) Canon Marketing Strategy Objectives 2009 – The Magnificent Seven
(b)
145
8) Canon Marketing Strategy Objectives 2009 – The Magnificent Seven
(c)
146
11) Cisco Online Netpro Community
147
148
13) Features of the internal Microblogging application, Yammer
150
151