How will enterprises embrace (or not!) social networks?

Introductory presentation by Chris Carfi, Cerado

Customers have lost trust in traditional sales, marketing and service (CRM).

John Hagel has also asserted that, although the old "scare resource" was "shelf space," the new scarce resource is "attention." And that the sources we pay attention to are the ones we "trust."

"The most credible source of information about a company is now 'a person like me,' which has risen dramatically to surpass doctors and academic experts for the first time, according to the seventh annual Edelman Trust Barometer." The survey relates that in the U.S., trust in "a person like me" increased from 20% in 2003 to 68% today.

If both of the above items are true, then the foundation of trust is now in “people like me," and the foundation of differentiation is ALSO in people.

Now, there are a series of market forces at work, in the form of the various social technologies ... blogs, wikis, and social networks that make it easier than ever to connect with the trusted ones, "people like me." We've seen the changes the customer-driven / consumer generated forces have driven into the media industries, whether it be print, radio, or video. Now, these same social customer forces are coming to bear on sales, marketing and support in the enterprise.

Discussion topics:

• Are these assertions valid?
• If so, will enterprises embrace social networks in order to facilitate these connections?
• Or will enterprises resist, and attempt to deal with these realities in a different manner?
  

Discussion Leaders: Theresia Gouw-Ranzetta, Jake Kaldenbough, Keith Teare, Zoli Erdos

Notes by Tom Cole of Trinity Ventures.

3 uses for social networking in the enterprise (Mike Sigal)

1. mine relationships within the company (Spoke can be used this way)
2. uncover and use relationships outside the company
• sales lead generation (Jigsaw)
3. creating bonds across customers (e.g. JetBlue may be experimenting this)

Haystack challenges

• privacy of employees
• potential for management to pressure employees to present themselves in a particular way (e.g. "I like sports") or to expose personal details that are uncomfortable
• persona exposed to customers and partners -- is it appropriate? e.g. Zombie Woman

Haystack's best use may be internal

• Alan's example: Everex -- colleagues geographically distributed, never got to meet in person but had gotten to know each other via ad hoc sharing of family info, pictures, etc.
• Gen Y work force would embrace it

Sequence of social networking in enterprise:

1. Sales
2. Human resources (for hiring)
3. Marketing (forums enabling customers to connect, promote product, give feedback)

Powerful tool for creating customer engagement around your product/service

• modern version of the old-fashioned user group a la Apple, for example:
  
• Cannondale bikes gives a blog to every customer
• Audi online community (Anne: Audi group, learned to replace radiator via an Australian contact)
• "user-generated marketing"
• needs to be authentic (people really exposing their personalities)
• it's okay for some negative comments to exist (though if you have a quality product, hopefully there aren't too many)
• what's important is to be responsive
• don't try to exercise editorial control, or customers will rebel

See also "The Attention Economy and the Net" by Michael Goldhaber

Some other examples of Social Network tools for the Enterprise

• LeverageSoftware for managing Customer Community and Event Networks
  
• SelectMinds for managing Corporate Alumni networks
• Visible Path allows members of a firm to combine their networks
• LivePlasma is a social network of music, movies, and books, but the visualization approach could also be extended to people
• introNetworks looks to be an alternative to haystack, but more event focused.