Archive for the ‘fortune 100’ Tag

What We Know About the Social Enterprise for 2010

As we wind down 2009, I have had a few moments to think about where we are going with this whole enterprise social media, online communities, social marketing, etc. So, here are my “true-isms” for 2010:

1. Marketing via Social Media is becoming mainstream. Most of it is ad hoc  and mediocre, but there are some notable exceptions and that list is growing. Finding less people saying “why” and more people saying “how”.

2. Innovators are starting to change the rules. When you see a market disruption, the early indicators are the ability to gain market share at low cost by disrupting the status quo. Doesn’t mean that twitter is your end all strategy, but you are finding companies that are leveraging multiple web 2.0, social, community applications to streamline the way they do business; either gaining new customers or efficiencies in servicing the ones that they have.

3. Customer Experience is becoming transparent – if your service sux or is barely mediocre, you need to be concerned. Social media is optimized better that static websites. This means the ANGRY blogger who writes a scathing review of their poor customer experience will get ranked higher than all of the money you just spent on broadcasting to the market.

4. Social Marketing is a “downhill” spend versus some alternative marketing channels that are “uphill” – Means that you get the snowball effect from a $1 spent in social marketing because you get the target audience, influencers, and search benefits. Alternatively, if you are having to spend dollars at trade shows, etc. you have to spend to counter the social marketing of your competitors, it is to a limited audience, and it is gone once you spend it.

5. Social Marketing doesn’t work if you apply a traditional marketing approach to the social networks. You cannot just message and broadcast your advertising or PR messaging on social networks and expect people to engage. The analogy is word-of-mouth marketing in the offline world. Do you hire a street team and then have them drive up and down the block with speakers blanketing the neighborhood with a speech? You laugh at the analogy, but that is exactly what many “interactive” major brands are doing online.

6. Social Media, Marketing, etc will extend from the public networks into the enterprise. We are having conversations with partners and CIOs around business intelligence, lead generation and tracking, customer experience management, enterprise application integration into internal communities, information architecture, employee engagement, organizational productivity gains, integration of external and internal communities, contact center integration, supply chain enabled applications, business process integration, corporate governance and compliance, MBOs, cross-functional alignment, ROI, etc.

7. Social Media is following the same path into the organization that the original “website” did… in the process became web applications, processes, ecommerce, etc. The original web solved a problem for people in aggregating and distributing information. Social Media solves the opposite problem in that it helps people with context and filtering.

8. The “Social Enterprise” is growing up. The last three years have seen pockets of cottage industry level “consultants”… but, everyone claimed to be a social media consultant. Saw the same thing in mid-90’s as everyone was a web consultant, but the difference by the end of the decade was that the real consultants figured out how to map back to business strategy and tie the web to business objectives, ROI, and core business issues. The real consultants figured out that they needed standardized, repeatable methodologies that were scalable across the enterprise (and enterprises) and transferable to their clients. The applications they developed focused on “big” problems and the size required sophistication and strategic understanding. 2010 will be the breakout year for many consulting organizations as they move from tactical point applications to enterprise solutions.

9. Organizations that have embraced the new collaborative economy and all of the challenges and opportunities in 2010 will face hurdles in converting to the social enterprise, but the smart ones will understand that the risks are too high. Smaller companies, non market leaders are looking for an edge or opening to exploit and grab market share or enter new markets. In a down economy, you have to leverage what you have better. The larger companies that cannot adjust can find that market share is a trailing indicator of performance (how we did) versus social media which is a leading indicator (what people think).

10. From 1989 to 1999, 62 of the top 100 companies on the Fortune 100 list changed. 62 came off and 62 new ones entered the list. If you think about it, 62 of the top, most respected market leaders got caught from behind and eclipsed in one decade with the selective use of a new technology and widespread business process reengineering. 62 of those CEOs and other executives probably said, “web?”, not going to affect our business. I wonder how many of them retired early…. I wonder how many of the top companies and executives will still be on the list in 2020…

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Flashback to Web’s Impact on American Business

As part of the preparation for a recent presentation, I pulled together research on the Web’s impact to the Fortune 100. Our belief is that social media will be as disruptive as the web for a number of reasons; which will each have their own posts over the next several weeks;

  • Addresses some of the challenges with search engines
  • Represents a shift from intellectual driven purchase management to a more emotional model
  • Provides contextualization for  people to organize information based upon personal lenses
  • Represents the transition from static information management to a more dynamic model (only going to accelerate)
  • Evolving to enable people to address the challenges of information overload; ie. inbox, search, communications, etc. Social media will enable people to begin to sort through the morass of information. (Yes, it is contributing to the challenges today, but the tools are emerging to assist in attacking these problems in unique ways.)

So, as part of our research, we looked at the Fortune 100 lists from each decade going back 40 years. Amazing statistics… you can see the impact the personal computer had on business and then astoundingly, how much impact the web had… Over 60% of the largest companies in the US were eclipsed in one decade… some came back to the list, but I don’t think you could minimize the disruption to American business. And yes, if you had asked the business leaders of those businesses, who had just seen the PC revolution, on how the web would impact their business, most scoffed…. “fad, not useful, don’t get it, waste of time, etc…” sound familar?

Comparison of the Fortune 100 lists from 1969, 1979, 1989, 1999, and 2009

§1969 to 1979 – 15 new companies entered the Fortune 100 list
§1979 to 1989 – 29 new companies
§1989 to 1999 – 62 new companies
§1999 to 2009 – 29 new companies